UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            FORM 10-Q

 (X) Quarterly Report Pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934 for the quarterly period
     ended March 31, 2000

                               or

 ( ) Transition Report Pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934 for the transition period
     from __________ to __________

                  Commission File Number 1-6247


                                ALZA CORPORATION
     (Exact name of registrant as specified in its charter)


Delaware                                               77-0142070
(State or other jurisdiction of                  (I.R.S. Employer
incorporation or organization)                Identification No.)

                      1900 Charleston Road
                          P.O. Box 7210
              Mountain View, California 94039-7210
            (Address of principal executive offices)

Registrant's telephone number, including area code (650) 564-5000


     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes (X)  No ( )



Number of shares outstanding of each of the registrant's classes
of common stock as of April 30, 2000:

Common Stock, $.01 par value - 102,633,027 shares


                        ALZA CORPORATION
                 FORM 10-Q for the Quarter Ended
                         March 31, 2000

                              INDEX


Part I. Financial Information


Item 1. Financial Statements

     Condensed Consolidated Statement of Income                 3
     Condensed Consolidated Balance Sheet                       4
     Condensed Consolidated Statement of Cash Flows             5
     Notes to Condensed Consolidated Financial Statements    6-11


Item 2. Management's Discussion and Analysis of
       Financial Condition and Results of Operations        12-24


Item 3. Quantitative and Qualitative Disclosures about
       Market Risk                                             25


Part II. Other Information


Item 1. Legal Proceedings                                      25


Item 6. Exhibits and Reports on Form 8-K                       25


Signatures                                                     26


Exhibits



PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements

                        ALZA CORPORATION
   Condensed Consolidated Statement of Operations (unaudited)
             (In millions, except per share amounts)

                                           Quarter Ended
                                             March 31,
                                      2000                1999
                                    ____________________________

Revenues
  Net sales                         $  108.8           $   96.2
  Royalties, fees and other             67.1               58.9
  Research and development              25.4               30.4
                                    ____________________________
     Total revenues                    201.3              185.5

Costs and expenses
  Costs of products shipped             34.7               34.3
  Research and development              44.8               44.1
  Selling, general and administrative   72.0               55.2
  Merger-related expenses                -                 32.6
                                    ____________________________
     Total costs and expenses          151.5              166.2
                                    ____________________________
     Operating income                   49.8               19.3

Interest expense                        15.4               14.9
Interest and other income               (5.4)              (5.0)
                                    ____________________________
     Net interest and other expense     10.0                9.9
                                    ____________________________
Income before income taxes              39.8                9.4

Provision for income taxes              12.3                5.7
                                    ____________________________
Net income                          $   27.5           $    3.7
                                    ============================
Earnings per share
  Basic                             $   0.27           $   0.04
                                    ============================
  Diluted                           $   0.27           $   0.04
                                    ============================
Shares used in per share computation
  Basic                                102.1              100.4
                                    ============================
  Diluted                              103.7              103.2
                                    ============================

                     See accompanying notes.


                        ALZA Corporation
        Condensed Consolidated Balance Sheet (unaudited)
                          (In millions)
                                        March 31,   December 31,
                                           2000         1999
                                       _________________________
ASSETS
Current assets:
  Cash and cash equivalents              $  102.6      $  149.4
  Short-term investments                     63.9          68.0
  Receivables, net                          151.1         125.7
  Inventories at cost:
   Raw materials                             24.8          26.0
   Work in process                           16.9          10.4
   Finished goods                            28.2          32.6
                                        ________________________
     Total inventories                       69.9          69.0
  Prepaid expenses and other
   current assets                            24.2          20.6
                                        ________________________
     Total current assets                   411.7         432.7

Property, plant and equipment               573.4         563.5
Less accumulated depreciation
 and amortization                          (154.9)       (145.7)
                                        ________________________
     Net property, plant and equipment      418.5         417.8

Long-term investments                       380.3         371.7
Deferred product acquisition costs          278.3         283.4
Cash surrender value of life insurance      173.0         148.4
Other assets                                191.1         198.5
                                        ________________________
TOTAL ASSETS                             $1,852.9      $1,852.5
                                        ========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                       $   34.5      $   75.9
  Accrued liabilities                        57.8          51.5
  Current portion of long-term debt           7.5           7.5
                                        ________________________
     Total current liabilities               99.8         134.9

5% convertible subordinated debentures      495.5         495.5
5-1/4% zero coupon convertible
 subordinated debentures                    449.5         443.7
Other long-term liabilities                  81.8          86.6

Stockholders' equity:
  Common stock and additional
   paid-in capital                          714.7         706.6
  Accumulated other comprehensive loss       (3.9)         (2.8)
  Retained earnings (accumulated deficit)    15.5         (12.0)
                                        ________________________
     Total stockholders' equity             726.3         691.8
                                        ________________________
TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                   $1,852.9      $1,852.5
                                        ========================

                     See accompanying notes.


                        ALZA CORPORATION
   Condensed Consolidated Statement of Cash Flows (unaudited)
                          (In millions)
                                                       Quarter
                                                       March 31,
                                                    2000       1999
                                                _____________________

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                       $  27.5     $  3.7
Non-cash adjustments to reconcile net income
 to netcash used in operating activities:
  Depreciation and amortization                     13.2        9.6
  Amortization of product acquisition payments       6.1        6.3
  Interest on 5-1/4% zero coupon convertible
   subordinated debentures                           5.8        5.6
  Undistributed income from real estate
   joint venture                                    (1.2)       -
  Changes in current assets:
   Receivables                                     (25.4)     (17.9)
   Inventories                                      (0.9)      (0.8)
   Prepaid expenses and other current assets        (3.0)       -
   Prepaid premiums and increase in cash
     surrender value of life insurance             (24.5)     (23.5)
   Changes in liabilities:
   Accounts payable                                (41.4)     (12.3)
   Accrued liabilities                               6.8       11.8
   Other long-term liabilities                       1.8       (3.4)
   Asset write-down                                  1.9        9.5
                                                _____________________
     Total adjustments                             (60.8)     (15.1)
                                                _____________________
Net cash used in operating activities              (33.3)     (11.4)

CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures                              (11.9)     (15.8)
 Product acquisition payments                       (1.0)     (20.0)
 Purchases of available-for-sale securities         (6.6)     (64.8)
 Sales and maturities of available-for-sale
  securities                                        10.3       66.0
 Other investing activities                         (4.7)      (1.5)
                                                _____________________
Net cash used in investing activities              (13.9)     (36.1)

CASH FLOWS FROM FINANCING ACTIVITIES:
 Issuances of common stock                           6.9       12.3
 Principal repayments of long-term debt, net        (6.5)      (6.5)
Net cash provided by financing activities            0.4        5.8
                                                _____________________
Net decrease in cash and cash equivalents          (46.8)     (41.7)

Cash and cash equivalents at
 beginning of period                               149.4      110.1
                                                _____________________
Cash and cash equivalents at end of period       $ 102.6    $  68.4
                                                =====================

                     See accompanying notes.


ALZA CORPORATION
Notes to Condensed Consolidated Financial Statements (unaudited)

NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

     The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information.
The information as of March 31, 2000 and for the quarters ended
March 31, 2000 and 1999 includes all adjustments (consisting only
of normal recurring adjustments) that the management of ALZA
Corporation ("ALZA") believes necessary for fair presentation of
the results for the periods presented.

     Results for any interim period are not necessarily
indicative of results for any future interim period or for the
entire year.  The accompanying financial statements should be
read in conjunction with the financial statements and notes
thereto included in ALZA's Annual Report on Form 10-K for the
year ended December 31, 1999.

Comprehensive Income

     Total comprehensive income includes net income plus other
comprehensive income, which for ALZA primarily comprises net
unrealized gains or losses on available-for-sale securities.
Total comprehensive income was $26.4 million and $11.6 million
for the quarters ended March 31, 2000 and 1999, respectively.
Other comprehensive (loss) income was $(1.1) million and $7.9
million for the quarters ended March 31, 2000 and 1999,
respectively.

Supplemental Disclosures of Cash Flow Information

Noncash Investing and Financing    Quarter Ended March 31,
  Activities (In millions)            2000        1999
___________________________________________________________

Tax benefit for stock option
  and stock purchase plan            $ 0.7         $ 2.2

Reclassification

     Certain amounts in the prior year's financial statements
have been reclassified to conform to the 2000 presentation.

New Accounting Standards

     In July 1999, the Financial Accounting Standards Board
("FASB") announced the delay of the effective date of Statement
of Financial Accounting Standards 133, "Accounting for Derivative
Instruments and Hedging Activities," ("SFAS 133") for one year,
to the first quarter of 2001.  SFAS 133 establishes accounting
and reporting standards for derivative instruments, including
certain derivative instruments embedded in other contracts, and
for hedging activities.  It requires companies to recognize all
derivatives as either assets or liabilities on the balance sheet
and measure those instruments at fair value. Gains or losses
resulting from changes in the values of those derivatives would
be accounted for depending on the use of the derivative and
whether it qualifies for hedge accounting under SFAS 133.  The
impact of SFAS 133 on ALZA's financial position and results of
operations is not expected to be material.

     In December 1999, the Securities and Exchange Commission
("SEC") issued Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements" ("SAB 101").  SAB 101
summarizes the SEC's views in applying generally accepted
accounting principles to revenue recognition in financial
statements.  ALZA is continuing to evaluate SAB 101's potential
future impact on ALZA's financial position and results of
operations with respect to upfront fees and milestone payments
earned by ALZA under distribution agreements,  agreements with
client companies and certain other agreements.   It is possible
that under SAB 101, certain of these fees would be required to be
deferred and recognized as revenue over future periods rather
than immediately on a one-time basis.


NOTE 2. EARNINGS PER SHARE INFORMATION

     Basic earnings per share is calculated by dividing net
income by the weighted average common shares outstanding for the
period.  Diluted earnings per share is calculated by dividing net
income, as adjusted, by the weighted average common shares
outstanding for the period plus the dilutive effect of stock
options, warrants and convertible securities.

     The following table sets forth the computation of ALZA's
basic and diluted earnings per share:

                                         Quarter Ended March 31,
(In millions, except per share amounts)    2000          1999
_________________________________________________________________
NUMERATOR:
Basic
  Net income                            $  27.5        $  3.7
=================================================================
Diluted
  Net income                            $  27.5        $  3.7
=================================================================
DENOMINATOR:
Basic
  Weighted average shares                 102.1         100.4
=================================================================
Diluted
  Weighted average shares                 102.4         100.7
  Effect of dilutive securities:
   Employee stock options                   1.3           2.5
   Warrants                                 -             -
_________________________________________________________________
  Weighted average shares and
    assumed conversions                   103.7         103.2
=================================================================

Basic earnings per share                $  0.27       $  0.04
=================================================================

Diluted earnings per share              $  0.27       $  0.04
=================================================================

     Options to purchase 5.3 million shares of common stock and
options and warrants to purchase 1.1 million shares of common stock
were excluded from the diluted earnings per share calculation for
the quarters ended March 31, 2000 and 1999, respectively, because
the exercise price of the options (and warrants in 1999) was
greater than the average market price of the common shares during
the periods, and therefore the effect of including those options
and warrants would have been anti-dilutive.  Assumed conversions of
ALZA's outstanding 5% convertible subordinated debentures due 2006
("5% Debentures") and 5-1/4% zero coupon convertible subordinated
debentures due 2014 ("5-1/4% Debentures") were not included in the
diluted earnings per share calculation for the quarters ended March
31, 2000 and 1999 as their inclusion would have been anti-dilutive.


NOTE 3. CRESCENDO PHARMACEUTICALS CORPORATION (RELATED PARTY)

     Under the Development Agreement between ALZA and Crescendo
Pharmaceuticals Corporation ("Crescendo"), ALZA recorded product
development revenues from Crescendo of $20.1 million for the
quarter ended March 31, 2000, compared with $23.2 million for the
quarter ended March 31, 1999.  ALZA expects that Crescendo will
have expended all of its available funds during the second half
of 2000.

     Under the Technology License Agreement between ALZA and
Crescendo, ALZA recorded technology fee revenues from Crescendo
of $1.0 million for the quarter ended March 31, 2000, compared
with $2.0 million for the quarter ended March 31, 1999, all in
accordance with the terms of the agreement.

     ALZA has an option to acquire an exclusive, royalty-bearing
license to each product developed by Crescendo under the
Development Agreement.  The option is exercisable on a product-by
product, country-by-country, basis.  In December 1998, ALZA
exercised its option to obtain a worldwide license to OROS
oxybutynin (marketed in the United States as Ditropan-registered
trademark- XL).  In consideration of the grant of the license,
ALZA paid Crescendo 2.5% of net sales of the product in 1999 and
will pay 3% for 2000 and 2001.  Thereafter, until 15 years after
the date of the first commercial sale of the product, the
percentage owed to Crescendo will be based upon development costs
paid by Crescendo; based upon current information this rate is
expected to be between 5.5% and 6.5%.

     On March 3, 2000, the United States Food and Drug
Administration ("FDA") approved DUROS-registered trademark-
leuprolide (which ALZA has named Viadur-trademark-) for marketing
in the United States.  The product is the first FDA-approved
product to incorporate ALZA's DUROS-registered trademark- implant
technology.  Also on March 3, 2000, ALZA exercised its option to
obtain a worldwide license to DUROS leuprolide from Crescendo.
Under the terms of the license agreement between Crescendo and
ALZA, Crescendo will receive payments from ALZA based on
worldwide net sales of the product.   For the first three years
after launch the rates will be 2.5%, 3.0% and 3.0% of net sales,
respectively; thereafter the rate is expected to be between 8.5%
and 9.0%.


NOTE 4.  MERGER-RELATED AND OTHER CHARGES

     On March 16, 1999, ALZA completed a merger with SEQUUS
Pharmaceuticals, Inc. ("SEQUUS") by acquiring all of SEQUUS'
outstanding stock in a tax-free, stock-for-stock transaction.  As
a result of the SEQUUS acquisition, ALZA incurred merger-related
costs that consisted of merger transaction costs, exit costs and
employee severance costs.  Merger transaction costs consisted
primarily of fees for investment bankers, attorneys and
accountants, filing fees, financial printing costs and other
related charges.  Exit costs include costs such as cancellation
of lease agreements and the write-down of SEQUUS assets that will
not be used in continuing operations.
The following table shows the details of the accrual for merger-
related costs for the quarter ended March 31, 2000:

                               Merger-             Balance
                               related Utilized/ at March 31,
(In millions)                   costs   Adjusted     2000
_____________________________________________________________
Merger transaction costs      $  13.2   $ 13.1    $   0.1
Exit costs                       14.3     13.1        1.2
Employee severance                5.1      5.1        -
                              _______________________________
Total                         $  32.6   $ 31.3    $   1.3
                              ===============================

     As a result of the activities related to the termination of
a merger agreement with Abbott Laboratories, Inc. ("Abbott")
during 1999, ALZA incurred $13.4 million in merger-related costs.
These costs included merger transaction costs, which consisted
primarily of fees for investment bankers, attorneys and
accountants, filing fees, financial printing costs, and other
merger-related costs.  The following table shows the details of
the accrual for costs related to the terminated merger through
the quarter ended March 31, 2000:

                               Merger-             Balance
                               related            at March 31,
(In millions)                   costs   Utilized     2000
______________________________________________________________
Transaction costs             $   9.8   $  9.4    $   0.4
Other merger-related costs        3.6      3.6        -
                              ________________________________
Total                         $  13.4   $ 13.0    $   0.4
                              ================================

NOTE 5.  SEGMENT REPORTING

     ALZA has two operating segments: ALZA Pharmaceuticals, which
includes sales of products directly to the pharmaceutical
marketplace, research and development for products marketed by,
and potential products to be marketed by, ALZA (including
revenues and expenses relating to products under development with
Crescendo) and certain co-promotion revenues for products co-
promoted by ALZA; and ALZA Technologies, which includes research,
development and manufacturing for client companies and ALZA
Pharmaceuticals, and royalties and fees resulting from sales by
ALZA's client companies of products developed under joint
development and commercialization agreements.  The "Other"
category primarily comprises corporate general and administrative
expenses, including finance, legal, human resources, commercial
development, executive and other functions not directly
attributable (or allocated) to the activities of the operating
segments, as well as rental and service fee revenues.

     ALZA evaluates performance and allocates resources based on
operating income or loss from operations (before allocation of
certain general and administrative expenses, net interest
expense, investment gains and losses and income taxes).  ALZA
does not assess segment performance or allocate resources based
on a segment's total assets, and therefore ALZA's assets are not
reported by segment.  ALZA allocates certain long-lived assets to
operating segments for purposes of allocating depreciation and
amortization expense.  The accounting policies of the reportable
segments are the same as those described in the summary of
significant accounting policies.  ALZA accounts for intersegment
sales and development revenues based upon negotiated prices.

     ALZA's reportable segments are strategic units that
distribute products to different types of customers and provide
different types of services.  They are managed differently
because ALZA Pharmaceuticals' sales and marketing efforts are
extensive and disparate from the revenue generation process
resulting from arrangements with client companies in ALZA
Technologies.  Additionally, ALZA Pharmaceuticals develops
products for commercialization by ALZA, while ALZA Technologies
develops products for commercialization by other companies and
ALZA Pharmaceuticals.

     For the current year segment presentation certain research
and development expenses, previously recorded in the ALZA
Technologies segment and charged to ALZA Pharmaceuticals, were
moved to the ALZA Pharmaceuticals segment as they were incurred
directly by ALZA Pharmaceuticals departments.  Under the prior
period's segment presentation, intersegment revenues for ALZA
Technologies for the quarter ended March 31, 2000 would have been
$20.1 million instead of $11.5 million under the current segment
presentation.  Certain prior year amounts have been reclassified
to conform to the current segment presentation.  These amounts
relate to the cost of sales of in-licensed products marketed by
ALZA Pharmaceuticals, which under the current presentation are
recorded in ALZA Technologies and sold to ALZA Pharmaceuticals at
an intersegment transfer price.

     The following tables contain information about segment
operating income (loss) for the quarter ended March 31, 2000 and
1999.
                                       Quarter Ended March 31,
(In millions)                           2000              1999
________________________________________________________________
Revenues from external customers
Net sales
 ALZA Pharmaceuticals                $  79.8            $  67.9
 ALZA Technologies                      29.0               28.3
Royalties, fees and other
 ALZA Pharmaceuticals                    2.4                3.1
 ALZA Technologies                      63.3               55.4
 Other                                   1.4                0.4
Research and development
 ALZA Pharmaceuticals                   20.1               23.2
 ALZA Technologies                       5.3                7.2
                                     ___________________________
 Total                               $ 201.3            $ 185.5
                                     ===========================
Intersegment revenues
Net sales
 ALZA Pharmaceuticals                $   -              $   -
 ALZA Technologies                       9.9                6.8
Research & development
 ALZA Pharmaceuticals                    0.6                -
 ALZA Technologies                      11.5               23.2
                                     ___________________________
 Total                               $  22.0            $  30.0
                                     ===========================

Segment operating income (loss)
 ALZA Pharmaceuticals                $   5.4            $   3.9
 ALZA Technologies                      55.4               54.1
 Other                                 (10.9)             (38.7)
                              						 ___________________________
 Total                               $  49.8            $  19.3
                                     ===========================

 The following table contains a reconciliation of ALZA's income
before taxes to that reported by segment in the tables above:

                                       Quarter Ended March 31,
(In millions)                           2000              1999
________________________________________________________________
Income before taxes
Total operating income for
 reportable segments                 $  49.8            $  19.3
Unallocated amounts:
 Interest income                         5.4                5.0
 Interest expense                      (15.4)             (14.9)
                                     ___________________________
Income before income taxes           $  39.8            $   9.4
                                     ===========================


NOTE 6.  SUBSEQUENT EVENTS

     In April 2000, ALZA entered into a commercialization
agreement with Bayer Corporation ("Bayer") for Viadur.  Under the
terms of the agreement, Bayer will have the commercial rights to
Viadur in the United States through 2015.  ALZA has received an
upfront payment, and will receive certain milestone payments.
ALZA is also receiving quarterly manufacturing, patent and
trademark payments through the third quarter of 2001.  Following
the launch of Viadur, ALZA will receive royalty payments based on
net sales of the product, as well as milestone payments when the
product achieves specified sales levels. ALZA will manufacture
Viadur for Bayer, for which ALZA will receive a negotiated supply
price.  ALZA retains the right to buy back the United States
commercialization rights at the end of 2008, 2010 or 2012, in
exchange for specified payments.

     In April 2000, ALZA sold the ALZET-registered trademark-
product line to Durect Therapeutics Corporation ("Durect") in a
cash sale.  Also in April 2000, ALZA and Durect amended their
development and commercialization agreement covering certain
specified applications of ALZA's DUROS technology.  Under the
amended agreement ALZA granted certain ex-U.S. commercialization
rights to Durect and made certain other modifications to the
development and commercialization agreement in exchange for
Durect common stock and warrants.


Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations

Notice Concerning Forward-Looking Statements

     Some of the statements made in this Form 10-Q are forward-
looking in nature, including, without limitation, plans
concerning the commercialization of products, statements
concerning potential product sales, future costs of products
shipped (and gross margins), associated sales and marketing
expenses, plans concerning development of products and other
statements that are not historical facts.  The occurrence of the
events described, and the achievement of the intended results,
are subject to various risk factors that could cause ALZA's
actual results to be materially different than those presented,
some or all of which risks are not predictable or within ALZA's
control.  Many risks and uncertainties are inherent in the
pharmaceutical industry; others are more specific to ALZA's
business. Many of the significant risks related to ALZA's
business are described in ALZA's Annual Report on Form 10-K for
the year ended December 31, 1999.


RESULTS OF OPERATIONS


SUMMARY                                  Quarter Ended March 31,
(In millions, except per share amounts)   2000               1999
_________________________________________________________________

Revenues                               $ 201.3            $ 185.5
_________________________________________________________________
Operating income                          49.8               19.3
_________________________________________________________________
Net income                                27.5                3.7
_________________________________________________________________
Diluted earnings per share                0.27               0.04
_________________________________________________________________

     ALZA's net income for the quarter ended March 31, 2000 was
$27.5 million or $0.27 per diluted share compared with net income
of $3.7 million or $0.04 per diluted share for the quarter ended
March 31, 1999.  Net income for the quarter ended March 31, 2000
included charges of $3.3 million (net of tax effect of $1.5
million), or $0.03 per diluted share, associated with the
consolidation of certain research and development facilities.
Net income for the quarter ended March 31, 1999 included charges
related to the SEQUUS merger of $24.8 million (net of tax effect
of $7.8 million), or $0.24 per share.  Excluding these charges,
net income for the quarters ended March 31, 2000 and 1999 were
$30.8 million or $0.30 per diluted share and $28.5 million or
$0.28 per diluted share, respectively. The increase in net income
for the quarter ended March 31, 2000 compared to the same period
in 1999 resulted primarily from the following:

     - Net sales increased 13% to $108.8 million for the quarter
       ended March 31, 2000 from $96.2 million for the quarter ended
       March 31, 1999. The increase in net sales resulted primarily from
       a 17% increase in ALZA-marketed products to $79.8 million for the
       quarter ended March 31, 2000 from $67.9 million for the quarter
       ended March 31, 1999.  Contract manufacturing sales remained
       relatively constant for the quarter ended March 31, 2000 compared
       to the quarter ended March 31, 1999.

     - Gross margin increased to 68% for the quarter ended March
       31, 2000, from 64% for the quarter ended March 31, 1999.

     - Royalties, fees and other revenues increased 14% to $67.1
       million for the quarter ended March 31, 2000, from $58.9 million
       for the quarter ended March 31, 1999.

     Substantially offsetting these contributions to net income
in for the quarter ended March 31, 2000 were the following:

     - Research and development revenues decreased 16% to $25.4
       million for the quarter ended March 31, 2000 from $30.4 million
       for the quarter ended March 31, 1999.

     - Selling, general and administrative expenses increased 22%
       to $67.2 million for the quarter ended March 31, 2000, excluding
       the charges described above, from $55.2 million for the quarter
       ended March 31, 1999, excluding the charges described above.


OPERATING SEGMENTS

     ALZA has two operating segments: ALZA Pharmaceuticals and
ALZA Technologies.

     ALZA Pharmaceuticals markets and sells products developed by
ALZA Technologies or others directly to the pharmaceutical
marketplace in the United States and Canada and to distributors
who sell such products outside the United States and Canada.
ALZA Pharmaceuticals also conducts product development, co-
promotes products with third parties, and engages ALZA
Technologies and others to conduct product development and
manufacture products for ALZA Pharmaceuticals.

     ALZA Technologies conducts research on ALZA's drug delivery
technologies and products for ALZA Pharmaceuticals, Crescendo and
other pharmaceutical company clients, and manufactures products
for sale by ALZA Pharmaceuticals and client companies.

     The "Other" category primarily comprises corporate general
and administrative activities and the associated costs related to
finance, legal, human resources, commercial development,
executive and other functions not directly attributable (or
allocated) to the activities of the operating segments, as well
as rental and service fee revenues.


OPERATING SEGMENT SUMMARY             Quarter Ended March 31,
(In millions)                          2000              1999
_________________________________________________________________

Revenues
ALZA PHARMACEUTICALS                $ 102.9            $  94.2
ALZA TECHNOLOGIES                     119.0              121.0
OTHER                                   1.4                0.4
_________________________________________________________________
Total segment revenues                223.3              215.6
Intersegment elimination              (22.0)             (30.1)
_________________________________________________________________

     Total revenues                 $ 201.3            $ 185.5
_________________________________________________________________

Operating income (loss)
ALZA PHARMACEUTICALS                $   5.3            $   3.9
ALZA TECHNOLOGIES                      55.4               54.1
OTHER                                 (10.9)(1)          (38.7)(2)
_________________________________________________________________

     Total operating income         $  49.8            $  19.3
_________________________________________________________________
1 For the quarter ended March 31, 2000, the operating loss for
  Other includes $4.8 million of charges associated with the
  consolidation of certain research and development facilities.
  Excluding these charges, operating loss for Other would have
  been $6.1 million for the quarter ended March 31, 2000.
2 For the quarter ended March 31, 1999, the operating loss for
  Other includes merger-related expenses of $32.6 million relating
  to the acquisition of SEQUUS. Excluding these charges, operating
  loss for Other would have been $6.1 million for the quarter ended
  March 31, 1999.


ALZA PHARMACEUTICALS

     Operating income increased slightly for the quarter ended
March 31, 2000 compared to the quarter ended March 31, 1999,
primarily due to a 9% increase in revenues and a 23% decrease in
research and development expenses for the quarter ended March 31,
2000 compared to the same period for 1999, respectively.  The
increase in revenues was primarily due to a 17% increase in net
sales of ALZA-marketed products for the quarter ended March 31,
2000 as compared to the same period for 1999, partially offset by
a 13% decrease in research and development revenues for the
quarter ended March 31, 2000 compared to the same period in 1999.
Also offsetting the increase in revenues and decrease in research
and development expenses was a 24% increase in sales and
marketing expenses for the quarter ended March 31, 2000 compared
to the same period for 1999.

ALZA TECHNOLOGIES

     Operating income for the quarter ended March 31, 2000
remained relatively constant compared with operating income for
the same period in 1999, primarily due to an increase in revenues
from royalties, fees and other being offset by a decline in
research and development revenues for the quarter ended March 31,
2000 compared to the same period in 1999.

OTHER

     Operating loss for the quarter ended March 31, 2000 remained
constant compared to the same period for 1999, in each period
excluding certain charges described above.


                            NET SALES


Net Sales                          	   Quarter Ended March 31,
(Dollars in millions)                   2000            1999
_________________________________________________________________
ALZA PHARMACEUTICALS
  Ditropan-registered trademark- XL  $  32.8         $  22.0
  Ethyol-registered trademark-          13.8             8.6
  Doxil-registered trademark-
    /Caelyx-registered trademark-       13.0            14.3
  Elmiron-registered trademark-          5.0             4.9
  Testoderm-registered trademark-
    TTS line                             4.5             4.5
  Mycelex-registered trademark-
    Troche                               3.6             5.0
  Other                                  7.1             8.6
_________________________________________________________________
  Total                                 79.8            67.9
_________________________________________________________________
ALZA TECHNOLOGIES
Contract manufacturing                  29.0            28.3
Intersegment                             9.9             6.8
___________________________________________________________________

  Total                                 38.9            35.1
___________________________________________________________________
Intersegment eliminations               (9.9)           (6.8)
___________________________________________________________________

Total net sales                      $ 108.8         $  96.2
___________________________________________________________________
Total net sales as a percentage
 of total revenues                      54%             52%
___________________________________________________________________

ALZA PHARMACEUTICALS

     Included in net sales of ALZA Pharmaceuticals are sales of the
products marketed directly by ALZA in the United States and Canada,
and sales of those products in other countries through distributors
(and to a limited extent, direct sales by ALZA of Amphocil-
registered trademark- (lipid-based amphotericin B) in the United
Kingdom).  Net sales of ALZA-marketed products increased 17% for
the quarter ended March 31, 2000 compared to the same period in
1999.  This increase in ALZA Pharmaceuticals net sales can be
primarily attributed to a 49% and 60% increase in sales of Ditropan
XL and Ethyol-registered trademark- (amifostine), respectively, for
the quarter ended March 31, 2000, compared to the same period in
1999.

     Net sales of ALZA-marketed products can be expected to vary
significantly from year to year, particularly in the first years
after launch of a new product.  Ditropan XL was launched in the
first quarter of 1999, and Doxil-registered trademark-
(doxorubicin HCl liposome injection), Ethyol, Elmiron-registered
trademark- (pentosan polysulfate sodium) and Testoderm-registered
trademark- TTS (testosterone) were cleared for marketing during
the past few years. In June 1999, the FDA approved new
indications for Ethyol and Doxil. Wholesaler stocking patterns,
managed care and formulary acceptance, the introduction of
competitive products, and acceptance by patients and physicians
will also affect future sales of ALZA's products.

ALZA TECHNOLOGIES

     Net sales from contract manufacturing include sales
generated from contract manufacturing activities for ALZA's
client companies and for ALZA Pharmaceuticals.  Net sales from
contract manufacturing for the quarter ended March 31, 2000
remained relatively constant compared to the same period for
1999, as ALZA experienced increases in shipments of Nicoderm-
registered trademark- and NicoDerm-registered trademark- CQ-
registered trademark- (nicotine transdermal system) to Aventis
S.A. ("Aventis") and SmithKline Beecham p.l.c.("SB") and
Duragesic-registered trademark- (fentanyl) to Janssen
Pharmaceutica, Inc. (together with its affiliates, "Janssen"),
which were offset by a decline in shipments of Covera-HS-
registered trademark- (verapamil hydrochloride) to G.D. Searle &
Co and Catapres-TTS-registered trademark- (clonidine) to
Boehringer Ingelheim Pharmaceuticals, Inc.

     The timing and quantities of orders for products marketed by
client companies are not within ALZA's control.  Net sales by ALZA
to client companies can be expected to fluctuate from period to
period, sometimes significantly, depending on the volume, mix and
timing of orders of products shipped to client companies, and in
some quarters, due to the shipment of launch quantities of products
to clients.

                          GROSS MARGIN

                                    Quarter Ended March 31,
Gross Margin                           2000           1999
_________________________________________________________________
ALZA PHARMACEUTICALS(1)                  82%            82%
ALZA TECHNOLOGIES(1)                     30%            22%
_________________________________________________________________
Gross margin(2)                          68%            64%
_________________________________________________________________
(1)  Includes intersegment revenues or expenses.
(2)  After intersegment eliminations.

     The increase in total gross margin for the quarter ended
March 31, 2000 compared to the same periods for 1999 was due to a
relative increase in shipments of higher-margin products by ALZA
Technologies to client companies, as well as an increase in ALZA
Pharmaceuticals sales as a percentage of total sales.

     ALZA expects its gross margin on net sales to increase from
historical rates over the longer term, although quarter-to-
quarter fluctuations, even significant ones, can be expected to
continue to occur.  A trend of higher gross margins may be
achieved through a proportionate increase in direct sales by ALZA
Pharmaceuticals in relation to sales from contract manufacturing
and, to a lesser extent, increased utilization of capacity and
greater operating efficiencies by ALZA Technologies.

     ALZA Technologies' gross margin on its contract
manufacturing sales is considerably lower than ALZA
Pharmaceuticals' gross margin on its sales of ALZA-marketed
products. ALZA's client-funded product development agreements
generally provide for a supply price that is intended to cover
ALZA's costs to manufacture the product plus a small margin.
ALZA also generally receives royalties on the clients' sales of
the products, which are included in royalties, fees and other
revenues.  Sales to ALZA Pharmaceuticals are based upon
negotiated prices.


               ROYALTIES, FEES AND OTHER REVENUES

     Royalties, fees and other revenues consist largely of
royalties paid by client companies on products developed under
joint development and commercialization agreements with ALZA and
marketed by the companies. Fee revenues consist of upfront,
milestone and other one-time, special or infrequent payments made
under these joint development agreements, or by distributors who
acquire rights to market ALZA products outside the United States
and Canada, and co-promotion fees.

Royalties, Fees and Other Revenues    Quarter Ended March 31,
(In millions)                          2000              1999
_________________________________________________________________

ALZA PHARMACEUTICALS                $   2.4            $   3.1
ALZA TECHNOLOGIES                      63.3               55.4
OTHER                                   1.4                0.4
_________________________________________________________________

  Total royalties, fees and
  other revenues                   $  67.1            $  58.9
_________________________________________________________________
Percentage of total revenues          33%                32%
_________________________________________________________________

ALZA PHARMACEUTICALS

     For the quarter ended March 31, 2000, fee revenues for ALZA
Pharmaceuticals included technology fees from Crescendo of $1.0
million compared to $2.0 million for the same period in 1999, as
provided in the agreements between ALZA and Crescendo.  Fee
revenues from Crescendo are expected to end in the second half of
2000.  In addition, ALZA Pharmaceuticals' royalties, fees and
other revenue included co-promotion fee revenues of $1.3 million
and $1.2 million for the quarters ended March 31, 2000 and 1999,
respectively.

ALZA TECHNOLOGIES

     Royalties, fees and other revenues increased 14% for the
quarter ended March 31, 2000 compared to the same period in 1999
primarily due to a milestone fee payment received from Knoll
Pharmaceuticals Company ("Knoll") in connection with the
acceptance by the FDA of Knoll's New Drug Application ("NDA") for
an OROS hydromorphone product developed by ALZA.

     Sales of Procardia XL-registered trademark- (nifedipine), as
reported by Pfizer, decreased 22% for the quarter ended March 31,
2000 compared to the same period in 1999. Several companies have
filed Abbreviated New Drug Applications ("ANDAs") with the FDA
requesting clearance to market generic sustained release
nifedipine products which are asserted to be bioequivalent to
Procardia XL, and one company has received FDA approval of its
ANDA.  Pfizer has filed suit against the ANDA applicants for
infringement of patent rights relating to the nifedipine active
drug substance in Procardia XL.  Pfizer also has filed suit
against the FDA, challenging the procedural basis for the FDA's
approval of the generic products, which utilize a different
mechanism of extended release than the OROS technology used in
Procardia XL.  In March 2000, Pfizer entered into a settlement
agreement with Mylan Laboratories Inc. ("Mylan"), the first
applicant for a generic version of Procardia XL.  The settlement
resolved the litigation pending between the parties, and Mylan
announced that it would commercialize a generic version of
Procardia XL to be supplied by Pfizer and incorporating ALZA's
OROS technology.  Under its agreement with Pfizer, ALZA will
receive royalties on such products. It is not possible to predict
the timing and amount of the negative impact on sales of
Procardia XL that will result from competition from generic
sustained-release nifedipine products.


               RESEARCH AND DEVELOPMENT


     ALZA's research and development revenues generally represent
reimbursement of costs, including a portion of general and
administrative expenses, by clients (including Crescendo) for the
development of products.  Therefore, product development
activities do not contribute significantly to operating results.

Research and Development Revenues       Quarter Ended March 31,
(In millions)                            2000             1999
_________________________________________________________________
ALZA PHARMACEUTICALS
 Crescendo                            $  20.1          $  23.2
 Intersegment                             0.6              -
_________________________________________________________________
 Total                                   20.7             23.2
_________________________________________________________________
ALZA TECHNOLOGIES
 Other clients                            5.3              7.2
 Intersegment                            11.5             23.2
_________________________________________________________________
 Total                                   16.8             30.4
_________________________________________________________________
Intersegment elimination                (12.1)           (23.2)
_________________________________________________________________
Total research and
 development revenues             		  $  25.4          $  30.4
_________________________________________________________________
Percentage of total revenues             13%              16%
_________________________________________________________________


ALZA PHARMACEUTICALS

     ALZA Pharmaceuticals derives research and development
revenues from Crescendo.  Revenues from Crescendo are offset by
intersegment charges from ALZA Technologies for research and
development expenses incurred on behalf of ALZA Pharmaceuticals
related to products under development for marketing by ALZA
Pharmaceuticals.  ALZA expects that Crescendo will expend all its
funds available for product development during 2000.

     ALZA has an option to acquire an exclusive, royalty-bearing
license to each product developed by Crescendo under the
Development Agreement.  The option is exercisable on a product-by-
product, country-by-country, basis.  In December 1998, ALZA
exercised its option to obtain a worldwide license to OROS
oxybutynin (marketed in the United States as Ditropan XL).  Under
the terms of the license agreement, ALZA makes payments to
Crescendo based upon worldwide sales of the product. In
consideration of the grant of the license, ALZA paid Crescendo
2.5% of net sales of the product in 1999 and will pay 3% for 2000
and 2001.  Thereafter, until 15 years after the date of the first
commercial sale of the product, the percentage of net sales owed
to Crescendo will be based upon development costs of the product
paid by Crescendo; based upon current information, this rate is
expected to be between 5.5% and 6.5%.

     On March 3, 2000, the FDA approved DUROS leuprolide (which
ALZA has named Viadur) for marketing in the United States.  The
product is the first FDA-approved product to incorporate ALZA's
DUROS implant technology.  Also on March 3, 2000, ALZA exercised
its option to obtain a worldwide license to DUROS leuprolide from
Crescendo.  Under the terms of the license agreement between
Crescendo and ALZA, Crescendo will receive payments from ALZA
based on worldwide net sales of the product.   For the first
three years after launch the rates will be 2.5%, 3.0% and 3.0% of
net sales, respectively; thereafter the rate is expected to be
between 8.5% and 9.0%.

     In April 2000, ALZA entered into a commercialization
agreement with Bayer for Viadur.  Under the terms of the
agreement, Bayer will have the commercial rights to Viadur in the
United States through 2015.  ALZA has received an upfront
payment, and will receive certain milestone payments.  ALZA is
also receiving quarterly manufacturing, patent and trademark
payments through the third quarter of 2001.  Following the launch
of Viadur, ALZA will receive royalty payments based on net sales
of the product, as well as milestone payments when the product
achieves specified sales levels. ALZA will manufacture Viadur for
Bayer, for which ALZA will receive a negotiated supply price.
ALZA retains the right to buy back the United States
commercialization rights at the end of 2008, 2010 or 2012, in
exchange for specified payments.

ALZA TECHNOLOGIES

     Research and development revenues from other clients
decreased 26% for the quarter ended March 31, 2000 compared to
the same period in 1999 reflecting a lower level of product
development activities under agreements with client companies.
Several new technology agreements were signed since the beginning
of 2000, which may increase the level of product development
activities in some areas.  Revenues from product development
activities vary from quarter to quarter depending upon the mix of
projects underway and the phase of development of each project.
The decrease in the intersegment revenues is due to a decline in
research and development activities related to Crescendo products
as well as the change in the current period's segment
presentation for research and development expenses. In the
current year segment presentation certain research and
development expenses, previously recorded in the ALZA
Technologies segment and charged to ALZA Pharmaceuticals, were
moved to the ALZA Pharmaceuticals segment as they were incurred
directly by ALZA Pharmaceuticals departments.  Under the prior
period's segment presentation, intersegment revenues for ALZA
Technologies for the quarter ended March 31, 2000 would have been
$20.1 million instead of $11.5 million under the current segment
presentation.


Research and Development Expenses       Quarter Ended March 31,
(In millions)                            2000             1999
_________________________________________________________________
ALZA PHARMACEUTICALS
 Intersegment                       $   11.5           $ 23.2
 Product development expense            13.1              8.7
_________________________________________________________________
     Total ALZA Pharmaceuticals         24.6             31.9
_________________________________________________________________
ALZA TECHNOLOGIES
 Intersegment                            0.6              -
 Product development expense            31.7             35.4
_________________________________________________________________
     Total ALZA Technologies            32.3             35.4
_________________________________________________________________
Intersegment elimination               (12.1)           (23.2)
_________________________________________________________________
Total research and development
 expenses                           $   44.8           $ 44.1
_________________________________________________________________
As a percentage of total revenues       22%              24%
_________________________________________________________________

ALZA PHARMACEUTICALS

     ALZA Pharmaceuticals engages ALZA Technologies to provide
research and development services, which are charged under the
same formula ALZA charges client companies. Research and
development expenses decreased 23% due to a decline in research
and development activities related to Crescendo products as well
the change in the current period's segment presentation for
research and development expenses. In the current year segment
presentation certain research and development expenses,
previously recorded in the ALZA Technologies segment and charged
to ALZA Pharmaceuticals, were moved to the ALZA Pharmaceuticals
segment as they were incurred directly by ALZA Pharmaceuticals
departments.  Under the prior period's segment presentation,
intersegment expenses and product development expense for the
quarter ended March 31, 2000 would have been $20.1 million and
$9.2 million, respectively.

ALZA TECHNOLOGIES

     Research and development expenses decreased 9% for the
quarter ended March 31, 2000 compared to same period in 1999,
reflecting a decrease in product development activities for ALZA
Pharmaceuticals (and Crescendo) and under agreements with client
companies. In the current year segment presentation certain
research and development expenses, previously recorded in the
ALZA Technologies segment and charged to ALZA Pharmaceuticals,
were moved to the ALZA Pharmaceuticals segment as they were
incurred directly by ALZA Pharmaceuticals departments.  Under the
prior period's segment presentation, product development expense
for the quarter ended March 31, 2000 would have been $35.6
million.


          SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses
                                        Quarter Ended March 31,
 (In millions)                                 2000      1999
_________________________________________________________________
ALZA PHARMACEUTICALS
 Sales and marketing expenses                $ 53.6   $  42.4
_________________________________________________________________
ALZA PHARMACEUTICALS
 Amortization of product
   acquisition payments                         3.8       4.0
ALZA TECHNOLOGIES
Amortization of product
   acquisition payments                         2.3       2.3
_________________________________________________________________
   Total                                        6.1       6.3
_________________________________________________________________
OTHER
 General and administrative expenses           12.3(1)    6.5
_________________________________________________________________
Total selling, general and
   administrative expenses                   $ 72.0   $  55.2
_________________________________________________________________
Total selling, general and administrative
   expenses as a percentage of total revenues   36%       30%
_________________________________________________________________
1 For the quarter ended March 31, 2000, general and
  administrative expenses for Other includes $4.8 million of
  charges associated with the consolidation of certain research and
  development facilities. Excluding these charges, general and
  administrative expenses for Other would have been $7.5 million
  for the quarter ended March 31, 2000.

ALZA PHARMACEUTICALS

     Sales and marketing expenses increased 24% for the quarter
ended March 31, 2000 compared to the same period in 1999 as a
result of the significant increase in sales and marketing
expenses for ALZA's expanded product portfolio and commercial
organization, as well as the increase in expenses associated with
the promotion of Ditropan XL.  During the quarter ended March 31,
2000, ALZA increased the size of its urology, primary care and
oncology sales forces, and accelerated certain spending in
preparation for the anticipated launch of the OROS
methylphenidate product under development with Crescendo, which
ALZA has named Concerta-registered trademark-.

OTHER

     General and administrative expenses remained relatively
constant for the quarter ended March 31, 2000, excluding charges
described above, compared to the same period in 1999.


                          NET INTEREST

Net Interest                           Quarter Ended March 31,
(In millions)                          2000               1999
_________________________________________________________________
Interest and other income           $  (5.4)           $  (5.0)
Interest expense                       15.4               14.9
_________________________________________________________________
 Net interest and other expense     $  10.0            $   9.9
_________________________________________________________________

     Interest expense was slightly higher for the three months
ended March 31, 2000 compared to the same period for 1999,
primarily due to accreted interest on ALZA's outstanding 5-1/4%
Debentures.


Effective Tax Rate

     For the quarter ended March 31, 2000, ALZA's effective
income tax rate was 31% compared to 32% for same period in 1999,
excluding the tax effect of $7.8 million resulting from merger-
related costs of $32.6 million.  ALZA currently expects its
combined federal and state effective income tax rate in 2000 and
2001 to be approximately 31%.  The actual effective income tax
rate will depend upon the actual level of earnings, changes in
the tax laws, and the amount of investment and research credits
available and ALZA's ability to utilize such credits.


                 LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES      March 31,        December 31,
(In millions)                           2000               1999
_________________________________________________________________
Working capital                    $   311.9         $    297.8
Cash and investments                   546.8              589.1
Total assets                         1,852.9            1,852.5
Long-term debt                         978.3              979.0
_________________________________________________________________

                                     Three Months ended March 31,
                                        2000               1999
Net cash used in operating
 activities                         $   33.3           $   11.4
Capital expenditures                    11.9               15.8
Product acquisition payments             1.0               20.0
_________________________________________________________________

     Cash flows used in operating activities for the quarter
ended March 31, 2000 was $33.3 million compared to $11.4 million
for the same period in 1999.  The increase in cash flows used in
operating activities resulted from a decrease in accounts payable
of $41.4 million for the quarter ended March 31, 2000 compared to
$12.3 million for the quarter ended March 31, 1999.

     ALZA's capital spending for the quarter ended March 31, 2000
was $11.9 million for additions to facilities and equipment to
support its expanding research, development and manufacturing
activities, compared to capital spending of $15.8 million for the
same period in 1999. Capital expenditures for the remainder of
2000 are expected to decrease compared to 1999 levels as a result
of the completion of the development of the Mountain View campus
into which ALZA moved during 1999.

      ALZA believes that its existing cash and investment
balances are adequate to fund its cash needs for 2000 and beyond.
In addition, should the need arise, ALZA believes it would be
able to borrow additional funds (although no such borrowing
arrangements are in place) or otherwise raise additional capital.
ALZA may use its capital to acquire or license technology or
products and/or to make strategic investments.

Year 2000

    As a result of ALZA's Year 2000 planning and implementation
efforts, ALZA experienced no significant disruptions in mission
critical information technology and non-information technology
systems and believes those systems successfully responded to the
Year 2000 date change.  ALZA is not aware of any material
problems resulting from Year 2000 issues, either with its
products, its internal systems, or the products and services of
third parties.  ALZA will continue to monitor its mission
critical computer applications and those of its suppliers and
vendors throughout the year 2000 to ensure that any latent Year
2000 matters that may arise are addressed promptly.

Item 3. Quantitative and Qualitative Disclosures about Market
        Risk

     Financial market risks related to changes in interest rates
and foreign currency exchange rates are described in Part II,
Item 7A, Quantitative and Qualitative Disclosure About Market
Risk, in ALZA's Annual Report on Form 10-K for the year ended
December 31, 1999.

     ALZA is exposed to equity price risks on the marketable
portion of equity securities included in its portfolio of
investments entered into to further its business and strategic
objectives.  These investments are generally in small
capitalization stocks in the pharmaceutical and biotechnology
industry sector, in companies with which ALZA has research and
development or product agreements.  ALZA typically does not
attempt to reduce or eliminate its market exposure on these
securities.  A 20% adverse change in equity prices would result
in an approximate $3 million decrease in ALZA'S available-for-
sale securities, based upon a sensitivity analysis performed on
ALZA's financial position at March 31, 2000.  However, actual
results may differ materially.


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

     Product liability suits have been filed against ALZA from
time to time on its products, and a number of suits have been
filed against Janssen and ALZA relating to the Duragesic product.
Janssen is managing the defense of the Duragesic product suits in
consultation with ALZA under an agreement between the parties.

     In October 1999, purported class action lawsuits were filed
against ALZA, Abbott and certain directors of each company and
such suits were consolidated as In re Abbott/ALZA Merger
Litigation in the federal court in the Northern District of
Illinois (99C6584).  The suits alleged that ALZA and Abbott had
wrongfully failed to disclose certain regulatory issues regarding
Abbott's diagnostic business to ALZA stockholders prior to an
ALZA stockholders meeting in September 1999. The suits were
dismissed in December 1999.  Attorneys representing the
plaintiffs in this litigation have petitioned the court for
attorneys' fees in connection with their services in this case;
ALZA and Abbott have opposed this petition.

     Historically, the cost of resolution of liability claims
against ALZA (including product liability claims) has not been
significant, and ALZA is not aware of any asserted or unasserted
claims pending against it, including the suits mentioned above,
the resolution of which would have a material adverse impact on
the operations or financial position of ALZA.

Item 6. Exhibits and Reports on Form 8-K

   (a) Exhibits:

        27   Financial Data Schedule

   (b) No reports on Form 8-K were filed during the quarter

                           SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.


                                   ALZA CORPORATION



Date: May 11, 2000            By:            /s/ E. Mario
                                           Dr. Ernest Mario
                                          Chairman and Chief
                                          Executive Officer



Date: May 11, 2000            By:         /s/ Matthew K. Fust
                                           Matthew K. Fust
                                        Senior Vice President and
                                        Chief Financial Officer


                          EXHIBIT INDEX




Exhibit

27     Financial Data Schedule