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| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                        |                                     | 94-3171943             |
|---------------------------------|------------------------------------------|------------------------|
| (State or other jurisdiction of |                                     | (I.R.S. Employer       |
| incorporation or organization)  |                                     | Identification Number) |
|                            | 2600 Kelly Road, Suite 100               |                   |
|                            | Warrington, Pennsylvania 18976-3622      |                   |
|                            | (Address of principal executive offices) |                   |

| Title of each class             |   | Name of each exchange on which registered |
|---------------------------------|--------|-------------------------------------------|
|                            |   |                                      |
| Common Stock, $0.001 par value  |   | The Nasdaq Capital Market                 |
| Preferred Stock Purchase Rights |   |                                      |

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| Large accelerated filer | o      | Accelerated filer         | o      |
|-------------------------|--------|---------------------------|--------|
|                    |   |                      |   |
| Non-accelerated filer   | o      | Smaller reporting company | x      |

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DISCOVERY LABORATORIES

| PART III   |                                                                                           |   |
|------------|------------------------------------------------------------------------------------------------|--------|
|       |                                                                                           |   |
| ITEM 10.   | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                         | 1      |
|       |                                                                                           |   |
| ITEM 11.   | EXECUTIVE COMPENSATION                                                                         | 6      |
|       |                                                                                           |   |
| ITEM 12.   | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 13     |
|       |                                                                                           |   |
| ITEM 13.   | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                      | 15     |
|       |                                                                                           |   |
| ITEM 14.   | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                         | 15     |
|       |                                                                                           |   |
| ITEM 15.   | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                     | 16     |
|       |                                                                                           |   |
| SIGNATURES | 17                                                                                             |

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| ITEM 10.  | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------------|--------------------------------------------------------|

| Name                        | Age    | Position with the Company                                                |
|-----------------------------|--------|--------------------------------------------------------------------------|
| W. Thomas Amick             | 68     | Director, Chairman of the Board of Directors and Chief Executive Officer |
|                        |   |                                                                     |
| Antonio Esteve, Ph.D.       | 53     | Director                                                                 |
|                        |   |                                                                     |
| Max E. Link, Ph.D.          | 70     | Director                                                                 |
|                        |   |                                                                     |
| Herbert H. McDade, Jr.      | 84     | Director                                                                 |
|                        |   |                                                                     |
| Bruce A. Peacock            | 59     | Director                                                                 |
|                        |   |                                                                     |
| Marvin E. Rosenthale, Ph.D. | 77     | Director                                                                 |

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| Name                         | Age    | Position with the Company                                                         |
|------------------------------|--------|-----------------------------------------------------------------------------------|
|                         |   |                                                                              |
| Kathryn A. Cole              | 45     | Senior Vice President, Human Resources                                            |
|                         |   |                                                                              |
| John G. Cooper               | 52     | President, Chief Financial Officer and Treasurer                                  |
|                         |   |                                                                              |
| Thomas C. Hoy                | 49     | Vice President, Manufacturing Operations                                          |
|                         |   |                                                                              |
| David L. Lopez, Esq., CPA    | 53     | Executive Vice President, General Counsel, Chief Compliance Officer and Secretary |
|                         |   |                                                                              |
| Thomas F. Miller, Ph.D., MBA | 40     | Senior Vice President and Chief Operating Officer                                 |
|                         |   |                                                                              |
| Robert Segal, M.D., F.A.C.P. | 54     | Senior Vice President, Medical and Scientific Affairs                             |
|                         |   |                                                                              |
| John A. Tattory              | 45     | Vice President, Finance, Controller and Principal Accounting Officer              |
|                         |   |                                                                              |
| Mary B. Templeton, Esq.      | 64     | Senior Vice President, Deputy General Counsel                                     |

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|   | · | overseeing our financial statements, system of internal controls, auditing, accounting and financial reporting processes; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | providing an independent, direct communication between the Board of Directors and internal auditors; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | appointing, compensating, evaluating and, when appropriate, replacing independent auditors; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | overseeing our tax compliance; |
|--------|--------|--------------------------------|

|   | · | reviewing with management and our independent auditors the annual audit plan; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | reviewing the Audit Committee Charter; |
|--------|--------|----------------------------------------|

|   | · | reviewing and pre-approving audit and permissible non-audit services; and |
|--------|--------|---------------------------------------------------------------------------|

|   | · | reviewing and approving all related-party transactions. |
|--------|--------|---------------------------------------------------------|

| ITEM 11. | EXECUTIVE COMPENSATION |
|---------------|------------------------|

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| Name and Principal Position                             | Year   |   | Salary($) |       |   | Bonus($) |   |      | Stock Award($)(1) |   |   | Option Award($) (2) |   |   | All OtherComp.($) |    |   | Total($) |   |
|---------------------------------------------------------|--------|--------|-----------|------------|--------|----------|--------|-----------|-------------------|--------|--------|---------------------|--------|--------|-------------------|---------|--------|----------|--------|
|                                                    |   |   |      |       |   |     |   |      |              |   |   |                |   |   |              |    |   |     |   |
| W. Thomas Amick                                         | 2010   |   | $         | 330,333(3) |   |     | $      | –   |              |   | $      | 92,000              |   |   | $                 | 4,257   |   |     | $      | 44,961(4) |   |   | $ | 471,551 |   |
| Chairman of the Board and                               | 2009   |   |      | 131,090(3) |   |     |   | –   |              |   |   |                |   |   |              | 19,926  |   |     |   | 50,000(4) |   |   |   | 201,016 |   |
| Chief Executive Officer                                 |   |   |      |       |   |     |   |      |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
|                                                    |   |   |      |       |   |     |   |      |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
| John G. Cooper                                          | 2010   |   |      | 313,375    |   |     |   | 50,000(5) |              |   |   | 66,000              |   |   |              | – |   |     |   | 8,250 |   |   |   | 437,625 |   |
| President, Chief Financial                              | 2009   |   |      | 307,000    |   |     |   | –   |              |   |   |                |   |   |              | – |   |     |   | 8,250 |   |   |   | 315,250 |   |
| Officer and Treasurer                                   |   |   |      |       |   |     |   |      |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
|                                                    |   |   |      |       |   |     |   |      |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
| David L. Lopez, Esq., CPA                               | 2010   |   |      | 307,000    |   |     |   | –   |              |   |   | 49,500              |   |   |              | – |   |     |   | 8,063 |   |   |   | 364,563 |   |
| Executive Vice President,                               | 2009   |   |      | 307,000    |   |     |   | –   |              |   |   |                |   |   |              | – |   |     |   | 7,500 |   |   |   | 314,500 |   |
| General Counsel, Chief Compliance Officer and Secretary |   |   |      |       |   |     |   |      |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |

| (1) | Represents the fair value of the stock awards as of the date of grant, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (ASC Topic 718), “Stock Compensation.”  The assumptions that we utilized are described in Note 11, “Stock Options and Stock-based Employee Compensation,” to our consolidated financial statements for the year ended December 31, 2010, in the Form 10-K.  The amounts reported in the table have not been paid to, nor realized by, the Named Executive Officer.  The date of the grant to Messrs. Cooper and Lopez was September 27, 2010.  The date of the grant to Mr. Amick was October 18, 2010.  The Stock Awards will vest upon the earliest to occur of the following events: (i) the second anniversary of the date of grant; (ii) the date of issuance by the U. S. Food and Drug Administration (FDA) of a marketing approval with respect to our New Drug Application (NDA) for Surfaxin for the prevention of RDS in premature infants; or (iii) the effective date of a strategic alliance, collaboration agreement or other similar arrangement between ourselves and one or more third parties providing for support for the development and/or commercialization of one or more of our lead research and development programs – Surfaxin, Surfaxin LSTM or Aerosurf® (whether a transaction meets this requirement shall be determined by our Board of Directors in its sole discretion); provided, that the awardee shall be actively providing services to us on the vesting date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents the grant date fair value of the stock options computed in accordance with ASC Topic 718.  The assumptions that we utilized are described in Note 11, “Stock Options and Stock-based Employee Compensation,” to our consolidated financial statements for the year ended December 31, 2010, in the Form 10-K.  The amounts reported in the table have not been paid to, nor realized by, the Named Executive Officer.  The Compensation Committee approved a grant in 2010 to Mr. Amick of an option to purchase 2,000 shares, and, in 2009, an option to purchase 4,000 shares, the fair value of which is reported in the column titled “Option Award.”  The option granted in 2010 has an exercise price of $2.70, which is the closing price of our common stock on Nasdaq on the date of grant, and a term of 10 years and will vest as to all shares on the first anniversary of the date of grant, July 7, 2011.  The option granted in 2009 has an exercise price of $7.35, a term of 10 years and vested as to all shares on the first anniversary of the date of grant, September 3, 2010.  The exercise price in each case is the closing price of our common stock on Nasdaq or on The Nasdaq Global Market, as applicable, on the date of grant. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents $247,000 paid in 2010 under the Interim CEO Agreement and an additional $83,333 in salary paid to Mr. Amick in 2010 under his Employment Agreement.  In 2009, we paid Mr. Amick $131,090 under the Interim CEO Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Represents director compensation paid to Mr. Amick in each of 2010 and 2009, respectively, as follows:  Fees Earned or Paid in Cash (reported in the column titled “All Other”) - $31,500 and $50,000.  For 2010, the amount reported also includes tax gross-up payments of $4,640.  See also, “Director Compensation.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Represents special bonus awarded at the time that Mr. Cooper was elected President to acknowledge his executive management responsibility and efforts during the transition from the departure of our former President and Chief Executive Officer through Mr. Amick’s tenure as Interim Chief Executive Officer. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Upon termination by us without Cause or by the executive for Good Reason, as defined in the Executive Agreements, the executive is entitled to: a lump sum payment that is equal to one and one half times the sum of his base salary then in effect and the largest annual cash bonus received by the executive with respect to the three fiscal years immediately preceding the date of termination; continuation of health benefits (or their equivalent) for the executive and the members of the executive’s family who were participating in our health and welfare plans at the time of termination for a period of one and one-half years following the date of termination, reduced to the extent that a subsequent employer provides the executive with substantially similar coverage (on a benefit-by-benefit basis). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Upon termination in connection with a “change in control” as that term is defined in the Executive Agreements (“Change in Control”), the executive is entitled to: a lump sum payment that is equal to two and one half times the sum of his base salary then in effect and the largest annual cash bonus received by the executive in the three fiscal years immediately preceding the Change in Control; continuation of health benefits (or their equivalent) for the executive and the members of the executive’s family who were participating in our health and welfare plans at the time of termination for a period of two and one-half years following the date of termination, reduced to the extent that a subsequent employer provides the executive with substantially similar coverage (on a benefit-by-benefit basis). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Upon termination by us without Cause or by the executive for Good Reason, or in the event of Change in Control, in each case as defined in the Executive Agreements, the executive is entitled to: a pro rata bonus payable in a lump sum payment that is equal to the largest annual cash bonus received by the executive with respect to the three fiscal years immediately preceding the Change in Control or termination, multiplied by a fraction the numerator of which is the number of days the executive was employed by us in the current fiscal year and the denominator of which is 365; outplacement counseling assistance in the form of reimbursement for reasonable expenses incurred by the executive within 12 months following the date of termination, up to a maximum amount of $40,000; to the extent that the executive is subject to certain excise taxes under Section 4999 of the Internal Revenue Code, reimbursement of those excise taxes; and any additional federal, state, local and excise tax resulting from such gross-up payments and accelerated vesting of unvested stock options and restricted stock and other awards, if any, under our Equity and Long-Term Incentive Plans. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Upon a Change in Control and assuming the executive remains employed with the acquirer, the executive’s annual bonus in each of the two fiscal years immediately following the Change in Control must be at least equal to the largest annual cash bonus received by the executive in the three fiscal years immediately preceding the Change in Control.  In addition, a termination is considered “termination in connection with a change of control” if the executive’s employment is terminated other than for cause or by the executive for Good Reason during the 24 months following the change of control. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | Option Awards                                                       |     | Stock Awards (RSAs)                                                    |   |
|-----------------------|--------|---------------------------------------------------------------------|----------|------------------------------------------------------------------------|--------|
| NamedExecutiveOfficer |   | No. of Securities Underlying Unexercised Options –Exercisable |     | No. of Securities Underlying Unexercised Options – Unexercisable |   |   | OptionExercisePrice |   | OptionExpirationDate |   | Equity Incentive Plan Awards: No. of Unearned Shares, Units or Other Rights That Have Not Vested |   | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |   |
|                  |   |                                                                |     |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| W. Thomas Amick       |   |                                                                | 1,667(1) |                                                                   |   |   |   |   | $ | 156.45 |   | 3/23/14 |   |   |   |   | $ | – |   |
|                  |   |                                                                | 2,000(1) |                                                                   |   |   |   |   |   | 130.95 |   | 9/14/14 |   |   |   |   |   |   |   |
|                  |   |                                                                | 1,667(1) |                                                                   |   |   |   |   |   | 94.20 |   | 5/13/15 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000(1) |                                                                   |   |   |   |   |   | 23.85 |   | 6/8/16 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,667(1) |                                                                   |   |   |   |   |   | 49.05 |   | 6/21/17 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000(1) |                                                                   |   |   |   |   |   | 30.45 |   | 6/11/18 |   |   |   |   |   |   |   |
|                  |   |                                                                | 4,000(1) |                                                                   |   |   |   |   |   | 7.35 |   | 9/3/19 |   |   |   |   |   |   |   |
|                  |   |                                                                |     |                                                                   |   |  2,000(1) |   |   |   | 2.70 |   | 7/7/20 |   |   |   |   |   |   |   |
|                  |   |                                                                |     |                                                                   |   |   |   |   |   |   |   |   |   |     26,667 | (8) |   |   | 88,801 |   |

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|                  |   |  Option Awards                                                 |   | Stock Awards (RSAs) |                                                                   |
|-----------------------|--------|---------------------------------------------------------------------|--------|---------------------|------------------------------------------------------------------------|
| NamedExecutiveOfficer |   | No. of Securities Underlying Unexercised Options –Exercisable |   |                | No. of Securities Underlying Unexercised Options – Unexercisable |   |   | OptionExercisePrice |   | OptionExpirationDate |   | Equity Incentive Plan Awards: No. of Unearned Shares, Units or Other Rights That Have Not Vested |   |   |   Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| John G. Cooper        |   | 5,334                                                               | (2)    |                |                                                                   |   |   |   | 44.55 |   | 12/10/11 |   |   |   |   |   |   |   |
|                  |   | 7,000                                                               | (2)    |                |                                                                   |   |   |   |   | 25.80 |   | 6/27/12 |   |   |   |   |   |   |   |
|                  |   | 2,000                                                               | (2)    |                |                                                                   |   |   |   |   | 28.35 |   | 11/5/12 |   |   |   |   |   |   |   |
|                  |   | 5,333                                                               | (4)    |                |                                                                   |   |   |   |   | 41.25 |   | 12/13/12 |   |   |   |   |   |   |   |
|                  |   | 5,333                                                               | (3)    |                |                                                                   |   |   |   |   | 121.19 |   | 9/12/13 |   |   |   |   |   |   |   |
|                  |   | 13,333                                                              | (5)    |                |                                                                   |   |   |   |   | 137.55 |   | 12/15/13 |   |   |   |   |   |   |   |
|                  |   | 5,000                                                               | (6)    |                |                                                                   |   |   |   |   | 97.05 |   | 8/12/14 |   |   |   |   |   |   |   |
|                  |   | 5,000                                                               | (5)    |                |                                                                   |   |   |   |   | 135.30 |   | 12/17/14 |   |   |   |   |   |   |   |
|                  |   | 3,333                                                               | (2)    |                |                                                                   |   |   |   |   | 105.15 |   | 1/3/16 |   |   |   |   |   |   |   |
|                  |   | 16,666                                                              | (2)    |                |                                                                   |   |   |   |   | 33.78 |   | 5/17/16 |   |   |   |   |   |   |   |
|                  |   | 13,333                                                              | (2)    |                |                                                                   |   |   |   |   | 36.90 |   | 12/15/16 |   |   |   |   |   |   |   |
|                  |   | 10,667                                                              | (2)    |                |                                                                   |   |   |   |   | 49.05 |   | 6/21/17 |   |   |   |   |   |   |   |
|                  |   | 10,000                                                              | (2)    |                |                                                                   |   |   |   |   | 39.15 |   | 12/11/17 |   |   |   |   |   |   |   |
|                  |   | 5,926                                                               | (7)    |                |                                                                   | 2,963(7) |   |   | 18.15 |   | 12/12/18 |   |   |   |   |   |   |   |
|                  |   | 11,852                                                              | (7)    |                |                                                                   | 5,926(7) |   |   | 28.95 |   | 12/12/18 |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   | 20,000(8) |   |   | $ 66,600 |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David L. Lopez        |   | 1,000                                                               | (2)    |                |                                                                   |   |   |   |   | 61.35 |   | 5/10/11 |   |   |   |   |   |   |   |
|                  |   | 3,000                                                               | (2)    |                |                                                                   |   |   |   |   | 31.50 |   | 9/21/11 |   |   |   |   |   |   |   |
|                  |   | 1,667                                                               | (2)    |                |                                                                   |   |   |   |   | 25.80 |   | 6/27/12 |   |   |   |   |   |   |   |
|                  |   | 2,000                                                               | (2)    |                |                                                                   |   |   |   |   | 28.35 |   | 11/5/12 |   |   |   |   |   |   |   |
|                  |   | 4,666                                                               | (4)    |                |                                                                   |   |   |   |   | 41.25 |   | 12/13/12 |   |   |   |   |   |   |   |
|                  |   | 6,667                                                               | (3)    |                |                                                                   |   |   |   |   | 121.19 |   | 9/12/13 |   |   |   |   |   |   |   |
|                  |   | 10,000                                                              | (5)    |                |                                                                   |   |   |   |   | 137.55 |   | 12/15/13 |   |   |   |   |   |   |   |
|                  |   | 3,334                                                               | (6)    |                |                                                                   |   |   |   |   | 97.05 |   | 8/12/14 |   |   |   |   |   |   |   |
|                  |   | 4,667                                                               | (5)    |                |                                                                   |   |   |   |   | 135.30 |   | 12/17/14 |   |   |   |   |   |   |   |
|                  |   | 3,334                                                               | (2)    |                |                                                                   |   |   |   |   | 105.15 |   | 1/3/16 |   |   |   |   |   |   |   |
|                  |   | 16,667                                                              | (2)    |                |                                                                   |   |   |   |   | 33.75 |   | 5/17/16 |   |   |   |   |   |   |   |
|                  |   | 14,667                                                              | (2)    |                |                                                                   |   |   |   |   | 36.90 |   | 12/15/16 |   |   |   |   |   |   |   |
|                  |   | 10,667                                                              | (2)    |                |                                                                   |   |   |   |   | 49.05 |   | 6/21/17 |   |   |   |   |   |   |   |
|                  |   | 10,000                                                              | (2)    |                |                                                                   |   |   |   |   | 39.15 |   | 12/11/17 |   |   |   |   |   |   |   |
|                  |   | 3,705                                                               | (7)    |                |                                                                   | 1,851(7) |   |   | 18.15 |   | 12/12/18 |   |   |   |   |   |   |   |
|                  |   | 7,407                                                               | (7)    |                |                                                                   | 3,704(7) |   |   | 28.95 |   | 12/12/18 |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   | 15,000(8) |   |   | 49,950 |   |

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| (1) | These options vested and became exercisable (or will vest and become exercisable) on the first anniversary of the date of grant, and expire as listed above, which is the tenth anniversary of the date of grant. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These options vested and became exercisable (or will vest and become exercisable) in four equal installments on the date of grant and on the first, second and third anniversary of the date of grant, and expire as listed above, which is the tenth anniversary of the date of grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These options vested and became exercisable as follows: one fourth on the date of grant and thereafter in twenty-four equal installments at the close of each of the following twenty-four months.  The options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | These options vested and became exercisable on December 13, 2006.  The options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5) | As granted, these options vested and became exercisable as follows: one fourth on the date of grant and thereafter in thirty-six equal installments at the close of each of the following thirty-six months.  In December 2005, the Compensation Committee accelerated the vesting of all stock options that at the time had an exercise price of $135.30 or greater, subject to a written “lock-up” agreement which has since expired. The options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | These options vested and became exercisable as follows: one fourth on the date of grant and thereafter in thirty-six equal installments at the close of each of the following thirty-six months.  The options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | These options vest and become exercisable in three equal installments on the first, second and third anniversary of the date of grant, and expire as listed above, which is the tenth anniversary of the date of grant. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | These RSAs will vest upon the earliest to occur of the following events: (i) the second anniversary of the date of grant; (ii) the date of issuance by the FDA of a marketing approval with respect to our NDA for Surfaxin for the prevention of RDS in premature infants; or (iii) the effective date of a strategic alliance, collaboration agreement or other similar arrangement between ourselves and one or more third parties providing for support for the development and/or commercialization of one or more of our lead research and development programs – Surfaxin, Surfaxin LS or Aerosurf  (whether a transaction meets this requirement shall be determined by our Board of Directors in its sole discretion); provided, that the awardee shall be actively providing services to us on the vesting date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                        |   | Fees Earned or Paid in Cash |   |   | Option Awards (1) |   |   | Total  |   |
|-----------------------------|--------|-----------------------------|--------|--------|-------------------|--------|--------|--------|--------|
|                        |   |                        |   |   |              |   |   |   |   |
| Antonio Esteve, Ph.D.       |   | $                           | 18,000 |   |              | $      | 4,788  |   |   | $ | 22,788 |   |
| Max E. Link, Ph.D.          |   |                        | 24,000 |   |              |   | 4,788  |   |   |   | 28,788 |   |
| Herbert H. McDade, Jr.      |   |                        | 22,000 |   |              |   | 4,788  |   |   |   | 26,788 |   |
| Bruce A. Peacock            |   |                        | 5,571  |   |              |   | 7,568  |   |   |   | 13,139 |   |
| Marvin E. Rosenthale, Ph.D. |   |                        | 24,000 |   |              |   | 4,788  |   |   |   | 28,788 |   |

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| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|---------------|------------------------------------------------------------------------------------------------|

| Plan Category                                          |   | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights(a) |   |   | Weighted-average Exercise Price of Outstanding Options, Warrants and Rights(b) |   |   | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) |   |
|--------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security holders |   |                                                                                           |   |   |                                                                           |   |   |                                                                                                                                        |   |
|                                                   |   |                                                                                           |   |   |                                                                           |   |   |                                                                                                                                        |   |
| 2007 Long-Term Incentive Plan                          |   | 409,529(1)                                                                                     |   |   | $                                                                              | 32.31  |   |                                                                                                                                        | 2,805  |   |
|                                                   |   |                                                                                           |   |   |                                                                           |   |   |                                                                                                                                        |   |   |   |   |
| Amended and Restated 1998 Stock Incentive Plan (2)     |   | 533,426                                                                                        |   |   | $                                                                              | 74.28  |   |                                                                                                                                        |   |   |   |
|                                                   |   |                                                                                           |   |   |                                                                           |   |   |                                                                                                                                        |   |   |   |   |
| Total                                                  |   | 942,955                                                                                        |   |   | $                                                                              | 56.06  |   |                                                                                                                                        | 2,805  |   |

|   | (1) | Does not include 154,333 shares of common stock under Restricted Stock Awards granted to employees in 2010.  These awards were not vested, and the shares remained subject to forfeiture, as of December 31, 2010. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The 1998 Plan expired on the effective date of the 2007 Plan.  All awards granted under the 1998 Plan continue to be governed by the terms of the 1998 Plan and the award agreements. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Name and Addressof Beneficial Owner (1)                                      |   | CommonStock |   |   | Common StockEquivalents (2) |   |   | Total BeneficialOwnership |   |   | Percentage of ClassBeneficially Owned (1) |   |
|------------------------------------------------------------------------------|--------|-------------|--------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|-------------------------------------------|--------|
| Non-Executive Directors                                                      |   |        |   |   |                        |   |   |                      |   |   |                                      |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Antonio Esteve, Ph.D. (3)                                                    |   | 213,779     |   |   | 13,666                      |   |   | 227,445                   |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Max E. Link, Ph.D.                                                           |   | 11,121      |   |   | 12,333                      |   |   | 23,454                    |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Herbert H. McDade, Jr.                                                       |   | –     |   |   | 14,333                      |   |   | 14,333                    |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Bruce A. Peacock                                                             |   | –     |   |   | –                     |   |   | –                   |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Marvin E. Rosenthale, Ph.D.(4)                                               |   | 23,333      |   |   | 12,333                      |   |   | 35,666                    |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Named Executive Officers                                                     |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| W. Thomas Amick                                                              |   | 2,666       |   |   | 16,001                      |   |   | 18,667                    |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| John G. Cooper                                                               |   | 8,808       |   |   | 120,110                     |   |   | 128,918                   |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| David L. Lopez, Esq., CPA                                                    |   | 8,516       |   |   | 103,448                     |   |   | 111,964                   |   |   | *                                         |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Executive Officers and Directors as a group (14 persons)                     |   | 300,853     |   |   | 444,557                     |   |   | 745,410                   |   |   | 3.04%                                     |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| 5% Security Holders                                                          |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
|                                                                         |   |        |   |   |                        |   |   |                      |   |   |                                      |   |   |   |   |   |
| Great Point Partners, LLC (5) 165 Mason Street, 3d Floor, Greenwich CT 16830 |   | 2,200,000   |   |   | 233,000                     |   |   | 2,433,000(6)              |   |   | 9.99%                                     |   |

|   | (1)   Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act and includes voting and investment power with respect to shares of common stock.  Shares of common stock, and shares of common stock subject to options or warrants currently exercisable or exercisable within 60 days after March 31, 2010 held by each person or group named above, are deemed outstanding for computing the percentage ownership of the person or group holding such options or warrants, but are not deemed outstanding for purposes of computing the percentage ownership of any other person or group. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)   Common Stock Equivalents include shares of common stock subject to options or warrants currently exercisable or exercisable within 60 days after March 31, 2011 held by each person or group named above. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)   Beneficial ownership of common stock includes 192,294 shares owned by Laboratorios Esteve, 21,144 shares owned by Laboratorios P.E.N., S.A., an affiliate of Laboratorios Esteve, and 341 shares owned directly by Dr. Esteve.  Common Stock Equivalents includes 13,666 shares of common stock issuable upon the exercise of outstanding options held by Dr. Esteve.  As a consequence of Dr. Esteve’s relationship with Laboratorios Esteve, including, serving as President of Laboratorios Esteve, he may be deemed to have beneficial ownership of the shares owned by Laboratorios Esteve and Laboratorios P.E.N. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)   Total beneficial ownership shown in the table includes 8,333 shares as to which Dr. Rosenthale disclaims beneficial ownership of shares held by his spouse. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5)  This information is based on a Schedule 13G filed with the SEC on March 10, 2011 by Great Point Partners, LLC (“Great Point”) with respect to shares held by a “group,” as that term is used in section 13(d)(3) of the Exchange Act, as of February 22, 2011, as follows: 813,626 shares owned by Biomedical Value Fund, LP (“BVF”), 648,000 owned by shares Biomedical Offshore Value Fund, Ltd. (“BOVF”), 281,282 shares owned by Biomedical Institutional Value Fund, LP (“BIVF”), 204,668 shares owned by Lyrical Multi-Manager Fund, LP (“Lyrical”), 204,668 shares owned by Class D Series of GEF-PS, LP (“GEF-PS”), 6,822 shares owned by David J. Morrison (“Morrison”), and 40,934 shares owned by WS Investments III, LLC (“WS”).  Certain members of Great Point have voting and investment power with respect to the group’s securities.  Does not include Series I and Series II warrants to purchase 813,626 shares, 648,000 shares, 281,282 shares, 204,668 shares, 204,668 shares, 6,822 shares and 40,934 shares held by each of BVF, BOVF, BIVF, Lyrical GEF-PS, Morrison and WS, respectively.  The provisions of such warrants restrict the exercise of such warrants to the extent that, after giving effect to such exercise, the holder of the warrants and its affiliates and any other person or entities with which such holder would constitute a group would beneficially own in excess of 9.99% of the number of shares of our common stock outstanding immediately after giving effect to such exercise (the “Ownership Cap”).  Therefore, the reporting persons could be deemed to beneficially own such number of shares underlying such warrants as would result in total beneficial ownership by such reporting persons up to the Ownership Cap. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6)  The securities reported under “Common Stock Equivalents” for Great Point represents that number of shares that, when taken together with the shares reported under “Common Stock”, could be issued pursuant to the exercise of its Series I and Series II warrants under the Ownership Cap restriction.  See, Note 5 to this table, above. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|---------------|---------------------------------------------------------------------------|

| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|---------------|----------------------------------------|

| Fee Category:      |   | Fiscal 2010 |    |   | % of Total |   |   | Fiscal 2009(1) |   |    | % of Total |   |
|--------------------|--------|-------------|---------|--------|------------|--------|--------|----------------|--------|---------|------------|--------|
|               |   |        |    |   |       |   |   |           |   |    |       |   |
| Audit Fees         |   | $           | 230,000 |   |       | 57%    |   |           | $      | 270,000 |       |   | 83% |   |
| Audit-Related Fees |   |        | 130,000 |   |       | 32%    |   |           |   | 24,000  |       |   | 7% |   |
|               |   |        |    |   |       |   |   |           |   |    |       |   |   |   |   |   |
| Tax Fees           |   |        | 26,000  |   |       | 7%     |   |           |   | 29,000  |       |   | 9% |   |
|               |   |        |    |   |       |   |   |           |   |    |       |   |   |   |   |   |
| All Other Fees     |   |        | 15,000  |   |       | 4%     |   |           |   | 3,000   |       |   | 1% |   |
| Total Fees         |   | $           | 401,000 |   |       | 100%   |   |           | $      | 326,000 |       |   | 100% |   |

|   | (1) | Certain Fiscal 2009  amounts have been reclassified to conform to Fiscal 2010 classifications. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

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Table of Contents

| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
|---------------|--------------------------------------------|

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Table of Contents

SIGNATURES

|                 |   | DISCOVERY LABORATORIES, INC. |
|----------------------|--------|------------------------------|
|                 |   |                         |   |
|                 |   |                         |   |
| Date: April 29, 2011 |   | By:                          | /s/ W. Thomas Amick |
|                 |   |                         | W. Thomas Amick |
|                 |   |                         | Chairman of the Board and |
|                 |   |                         | Chief Executive Officer |

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Table of Contents

| Exhibit No. | Description                                                                                                                                          |   | Method of Filing                                                                                                                                                               |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 3.1         | Amended and Restated Certificate of Incorporation of Discovery Laboratories, Inc. (Discovery), as amended as of December 28, 2010                    |   | Incorporated by reference to Exhibit 3.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 3.2         | Certificate of Designations, Preferences and Rights of Series A Junior Participating Cumulative Preferred Stock of Discovery, dated February 6, 2004 |   | Incorporated by reference to Exhibit 2.2 to Discovery’s Form 8-A, as filed with the SEC on February 6, 2004.                                                             |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 3.3         | Amended and Restated By-Laws of Discovery, as amended effective September 3, 2009                                                                    |   | Incorporated by reference to Exhibit 3.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on September 4, 2009.                                          |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.1         | Shareholder Rights Agreement, dated as of February 6, 2004, by and between Discovery and Continental Stock Transfer & Trust Company              |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 6, 2004.                                          |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.2         | Class C Investor Warrant, dated April 17, 2006, issued to Kingsbridge Capital Limited                                                                |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 21, 2006.                                             |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.3         | Warrant Agreement, dated November 22, 2006                                                                                                           |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on November 22, 2006.                                          |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.4         | Warrant Agreement dated May 22, 2008 by and between Kingsbridge Capital Limited and Discovery                                                        |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K as filed with the SEC on May 28, 2008.                                                |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.5         | Warrant Agreement dated December 12, 2008 by and between Kingsbridge Capital Limited and Discovery                                                   |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 15, 2008.                                          |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.6         | Form of Stock Purchase Warrant issued in May 2009                                                                                                    |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Current Report on Form 8-K, as filed with the SEC on May 8, 2009.                                               |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.7         | Form of Stock Purchase Warrant issued in February 2010                                                                                               |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 18, 2010.                                          |
|        |                                                                                                                                                 |   |                                                                                                                                                                           |
| 4.8         | Warrant Agreement, dated as of April 30, 2010, by and between Discovery and PharmaBio                                                                |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                             |

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Table of Contents

| Exhibit No. | Description                                                                                                                                           |   | Method of Filing                                                                                                                                                                |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.9         | Warrant Agreement dated June 11, 2010 by and between Kingsbridge Capital Limited and Discovery                                                        |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 14, 2010.                                               |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.10        | Form of Five-Year Warrant issued on June 22, 2010                                                                                                     |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 17, 2010.                                               |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.11        | Form of Short-Term Warrant issued on June 22, 2010                                                                                                    |   | Incorporated by reference to Exhibit 4.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 17, 2010.                                               |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.12        | Warrant Agreement, dated as of October 12, 2010, by and between Discovery and PharmaBio                                                               |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 13, 2010.                                            |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.13.       | Form of Voting Agreement between RSA Holders and Discovery dated November 12, 2010                                                                    |   | Incorporated by reference to Exhibit 4.13 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.14        | Form of Five-Year Warrant issued on February 22, 2011                                                                                                 |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 16, 2011.                                           |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 4.15        | Form of Short Term Warrant issued on February 22, 2011                                                                                                |   | Incorporated by reference to Exhibit 4.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 16, 2011.                                           |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 10.1+  | Sublicense Agreement, dated as of October 28, 1996, between Johnson & Johnson, Ortho Pharmaceutical Corporation and Acute Therapeutics, Inc.      |   | Incorporated by reference to Exhibit 10.6 to Discovery’s Registration Statement on Form SB-2/A, as filed with the SEC on April 18, 1997 (File No. 333-19375).             |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 10.2        | Registration Rights Agreement, dated June 16, 1998, among Discovery, Johnson & Johnson Development Corporation and The Scripps Research Institute |   | Incorporated by reference to Exhibit 10.28 to Discovery’s Annual Report on Form 10-KSB for the year ended December 31, 1998, as filed with the SEC on April 9, 1999.      |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 10.3 +      | Amended and Restate License Agreement by and between Discovery and Philip Morris USA Inc., d/b/a/ Chrysalis Technologies, dated March 28, 2008        |   | Incorporated by reference to Exhibit 10.4 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, as filed with the SEC on May 9, 2008.        |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 10.4 +      | License Agreement by and between and Philip Morris Products S.A., dated March 28, 2008                                                                |   | Incorporated by reference to Exhibit 10.5 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, as filed with the SEC on May 9, 2008.        |
|        |                                                                                                                                                  |   |                                                                                                                                                                            |
| 10.5*  | Amended and Restated 1998 Stock Incentive Plan of Discovery (amended as of May 13, 2005)                                                         |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Registration Statement on Form S-8, as filed with the SEC on August 23, 2005 (File No. 333-116268).               |

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Table of Contents

| Exhibit No.  | Description                                                                                                                                 |   | Method of Filing                                                                                                                                                                     |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.6*        | Form of Notice of Grant of Stock Option under the 1998 Stock Incentive Plan                                                                 |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Quarterly Report on Form 10-QSB for the quarter ended September 30, 1999, as filed with the SEC on November 17, 1999. |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.7*        | Discovery’s 2007 Long Term Incentive Plan                                                                                             |   | Incorporated by reference to Exhibit 1.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 28, 2007.                                                    |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.8*        | Form of 2007 Long-Term Incentive Plan Stock Option Agreement                                                                                |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, as filed with the SEC on August 9, 2007.           |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.9*        | Form of Stock Issuance Agreement, dated as of October 30, 2007, between Discovery and the Grantees                                          |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on November 5, 2007.                                                |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.10*       | Form of Restricted Stock Award (RSA) Agreement dated September 27, 2010                                                                     |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 1, 2010.                                                 |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.11*  | Separation of Employment Agreement and General Release, dated as of August 13, 2009, by and between Discovery and Robert J. Capetola        |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on September 4, 2009.                                               |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.12*       | Agreement, dated as of August 13, 2009, by and between Discovery and W. Thomas Amick Regarding Service as CEO on a Part-Time, Interim Basis |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on September 4,2009.                                                |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.13*       | Renewal of Interim CEO Agreement dated July 2, 2010 between W. Thomas Amick and Discovery                                                   |   | Incorporated by reference to Exhibit 10.8 to Discovery’s Quarterly Report on Form 10-Q dated June 30, 2010, as filed with the SEC on August 9, 2010.                           |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.14*       | Employment Agreement dated as of October 18, 2010 by and between W. Thomas Amick and Discovery                                              |   | Incorporated by reference to Exhibit 10.5 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, as filed with the SEC on November 15, 2010.   |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.15*       | Amended and Restated Employment Agreement, dated as of May 4, 2006, by and between Discovery and John G. Cooper                             |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, as filed with the SEC on May 10, 2006.            |
|         |                                                                                                                                        |   |                                                                                                                                                                                 |
| 10.16*       | Amendment to the Amended and Restated Employment Agreement dated as of May 4, 2006 between John G. Cooper and Discovery                     |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Current Report on Form 8-K, as filed with the SEC on January 3, 2008.                                                 |

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Table of Contents

| Exhibit No.  | Description                                                                                                                                                                                                                             |   | Method of Filing                                                                                                                                                          |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.17*       | Amended and Restated Employment Agreement, dated as of May 4, 2006, by and between Discovery and  David L. Lopez, Esq., CPA                                                                                                   |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, as filed with the SEC on May 10, 2006. |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.18*       | Amendment to the Amended and Restated Employment Agreement dated as of May 4, 2006 between David L. Lopez and Discovery                                                                                                                 |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on January 3, 2008.                                      |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.19+  | Amended and Restated Sublicense and Collaboration Agreement made as of December 3, 2004, between Discovery and Laboratorios del Dr. Esteve, S.A.                                                                                        |   | Incorporated by reference to Exhibit 10.28 to Discovery’s Annual Report on Form 10-K for the year ended December 31, 2004, as filed with the SEC on March 16, 2005. |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.20+       | Amended and Restated Supply Agreement, dated as of December 3, 2004, by and between Discovery and Laboratorios del Dr. Esteve, S.A.                                                                                                     |   | Incorporated by reference to Exhibit 10.29 to Discovery’s Annual Report on Form 10-K for the year ended December 31, 2004, as filed with the SEC on March 16, 2005. |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.21   | Assignment of Lease and Termination and Option Agreement, dated as of December 30, 2005, between Laureate Pharma, Inc. and Discovery                                                                                                    |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Annual Report on Form 10-K for the year ended December 31, 2005, as filed with the SEC on March 16, 2006.  |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.22        | Lease Agreement dated May 26, 2004, and First Amendment to Lease Agreement, dated April 2, 2007, by and between TR Stone Manor Corp. and Discovery                                                                                      |   | Incorporated by reference to Exhibits 10.1 and 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 6, 2007.                              |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.23   | Second Amended and Restated Loan Agreement, dated as of December 10, 2001, amended and restated as of October 25, 2006, by and between Discovery and PharmaBio                                                                          |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 26, 2006.                                |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.24   | Payment Agreement and Loan Amendment (amending the Second Amended and Restated Loan Agreement, dated as of December 10, 2001, amended and restated as of October 25, 2006) dated April 27, 2010, by and between Discovery and PharmaBio |   | Incorporated by reference to Exhibit 1.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                        |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.25   | Third Amended Promissory Note dated April 27, 2010 (amending and restating the Second Amended Promissory Note dated as of October 25, 2006), payable to PharmaBio                                                                       |   | Incorporated by reference to Exhibit 1.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                        |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.26        | Securities Purchase Agreement dated April 27, 2010, by and between Discovery and PharmaBio                                                                                                                                              |   | Incorporated by reference to Exhibit 1.3 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                        |
|         |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.27        | Securities Purchase Agreement dated October 12, 2010 by and between PharmaBio and Discovery                                                                                                                                             |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 13, 2010.                                     |

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Table of Contents

| Exhibit No. | Description                                                                                                                                                                                                             |   | Method of Filing                                                                                                                                                                |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.28  | Credit and Security Agreement, dated as of May 21, 2007, by and between Discovery and Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services, Inc.                                              |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on May 24, 2007.                                               |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.29       | First Amendment to Credit and Security Agreement (the “Amendment”) dated May 30, 2008, between Discovery and GE Business Financial Services Inc. (formerly Merrill Lynch Business Financial Services, Inc.) |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 2, 2008.                                               |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.30  | Common Stock Purchase Agreement, dated as of May 22, 2008, by and between Kingsbridge Capital and Discovery                                                                                                             |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on May 27, 2008.                                               |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.31       | Registration Rights Agreement, dated as of May 22, 2008, by and between Kingsbridge Capital and Discovery                                                                                                               |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on May 27, 2008.                                               |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.32       | Common Stock Purchase Agreement, dated December 12, 2008, by and between Discovery and Kingsbridge Capital Limited                                                                                                      |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 15, 2008.                                          |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.33       | Registration Rights Agreement, dated as of December 12, 2008, by and between Kingsbridge Capital and Discovery                                                                                                          |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 15, 2008.                                          |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.34       | Common Stock Purchase Agreement dated as of June 11, 2010, by and between Kingsbridge Capital Limited and Discovery.                                                                                                    |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 14, 2010.                                              |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 10.35+      | Supply Agreement dated as of December 22, 2010 between by and between Corden Pharma (formerly Genzyme Pharmaceuticals LLC) and Discovery                                                                                |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 29, 2010.                                          |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 21.1        | Subsidiaries of Discovery                                                                                                                                                                                               |   | Incorporated by reference to Exhibit 21.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 23.1        | Consent of Ernst & Young LLP, independent registered public accounting firm                                                                                                                                         |   | Incorporated by reference to Exhibit 23.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |
|        |                                                                                                                                                                                                                    |   |                                                                                                                                                                            |
| 31.1        | Certification of Chief Executive Officer and Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act                                                                                            |   | Incorporated by reference to Exhibit 31.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |

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Table of Contents

| Exhibit No. | Description                                                                                                                                                                          |   | Method of Filing                                                                                                                                                                |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                 |   |                                                                                                                                                                            |
| 31.2        | Certification of Chief Financial Officer and Principal Accounting Officer pursuant to Rule 13a-14(a) of the Exchange Act                                                             |   | Incorporated by reference to Exhibit 31.2 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |
|        |                                                                                                                                                                                 |   |                                                                                                                                                                            |
| 31.3        | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act.                                                                                             |   |  Filed herewith.                                                                                                                                                           |
|        |                                                                                                                                                                                 |   |                                                                                                                                                                            |
| 31.4        | Certification of Chief Financial Officer and Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.                                                             |   | Filed herewith.                                                                                                                                                                 |
|        |                                                                                                                                                                                 |   |                                                                                                                                                                            |
| 32.1        | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002   |   | Incorporated by reference to Exhibit 32.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 31, 2011. |
|        |                                                                                                                                                                                 |   |                                                                                                                                                                            |
| 32.2        | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |   | Filed herewith.                                                                                                                                                                 |

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