<PAGE>


                                    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, 1997
                                       --------------

                                          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.)

950 PAGE MILL ROAD, P.O. BOX 10950, PALO ALTO, CALIFORNIA         94303-0802
---------------------------------------------------------         ----------
    (Address of principal executive offices)                      (Zip Code)


Registrant's telephone number, including area code (415) 494-5000
                                                   -------------

    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, 1997:

Common Stock, $.01 par value - 84,956,839 shares


                                         -1-

<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1.        FINANCIAL STATEMENTS


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


                                             Three Months Ended
                                                 March 31,
                                           1997           1996
                                          --------       --------

Revenues:
  Royalties, fees and other                  $44.2          $37.5
  Research and development                    33.8           30.3
  Net sales                                   27.5           20.7
                                          --------       --------
     Total revenues                          105.5           88.5

Expenses:
  Research and development                    35.0           31.3
  Costs of products shipped                   19.7           16.0
  Selling, general and administrative         11.6           10.2
                                          --------       --------
     Total expenses                           66.3           57.5
                                          --------       --------

Operating income                              39.2           31.0

  Interest income                             16.9            8.3
  Interest expense                            13.7            6.4
                                          --------       --------
     Net interest income                       3.2            1.9
                                          --------       --------

Income before income taxes                    42.4           32.9

Provision for income taxes                    16.1           12.5
                                          --------       --------

Net income                                   $26.3          $20.4
                                          --------       --------
                                          --------       --------

Net income per common and
  common equivalent share*                   $0.30          $0.24
                                          --------       --------
                                          --------       --------

Weighted average common and
  common equivalent shares                    97.8           84.6
                                          --------       --------
                                          --------       --------

See accompanying notes.

*    The net income per common and common equivalent share calculation uses
     adjusted net income of $29.5 for the quarter ended March 31, 1997.

                                         -2-

<PAGE>

                                   ALZA CORPORATION
                   Condensed Consolidated Balance Sheet (unaudited)
                                    (In millions)

                                                       March 31,  December 31,
                                                        1997          1996
                                                      ---------    ---------
ASSETS

Current assets:
   Cash and cash equivalents                          $   240.3    $   187.7
   Short-term investments                                 133.8        199.3
   Receivables, net                                       114.3        116.6
   Inventories, at cost:
     Raw materials                                         17.3         17.7
     Work in process                                       16.7         18.0
     Finished goods                                         4.6          3.5
                                                      ---------    ---------
          Total inventories                                38.6         39.2
   Prepaid expenses and other current assets               30.4         19.2
                                                      ---------    ---------
          Total current assets                            557.4        562.0

Property, plant and equipment                             412.4        408.1
Less accumulated depreciation and amortization           (105.7)      (100.3)
                                                      ---------    ---------
   Net property, plant and equipment                      306.7        307.8
Investments in long-term securities(1)                    641.1        612.8
Other assets                                              134.2        131.1
                                                      ---------    ---------

          Total assets                                $ 1,639.4    $ 1,613.7
                                                      ---------    ---------
                                                      ---------    ---------

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                                   $    14.3    $    28.7
   Accrued income taxes                                    22.3          7.3
   Accrued compensation                                     8.1         15.4
   Accrued interest                                        11.5          7.7
   Other current liabilities                                8.9          8.1
                                                      ---------    ---------
          Total current liabilities                        65.1         67.2

5% convertible subordinated debentures                    500.0        500.0
5 1/4% zero coupon convertible subordinated debentures    387.3        382.3
Other long-term liabilities                                73.7         67.5

Stockholders' equity:
   Common stock and additional paid-in capital            368.3        363.0
   Net unrealized losses on available-for-sale
     securities, net of tax effect                        (15.1)        (0.1)
   Retained earnings                                      260.1        233.8
                                                      ---------    ---------
          Total stockholders' equity                      613.3        596.7
                                                      ---------    ---------

          Total liabilities and stockholders' equity  $ 1,639.4    $ 1,613.7
                                                      ---------    ---------
                                                      ---------    ---------

See accompanying notes.


     (1)  The balance at December 31, 1996 was previously 
          included in short-term investments and has been reclassified 
          to conform with current year presentation (See Note 1).

                                         -3-

<PAGE>

                                   ALZA CORPORATION
              Condensed Consolidated Statement of Cash Flows (unaudited)
                                     (In millions)
<TABLE>
<CAPTION>
 
                                                          Three Months Ended March 31,
                                                             1997             1996
                                                             ---------       --------
<S>                                                          <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                 $    26.3       $   20.4
  Non-cash adjustments to reconcile net income
    to net cash provided by operating activities:
       Depreciation and amortization                               6.7            4.0
       Interest on 5 1/4% zero coupon convertible
          subordinated debentures                                  5.0            4.8
       (Increase) decrease in assets:
          Receivables                                              2.2           (0.8)
          Inventories                                              0.7           (3.0)
          Prepaid expenses and other current assets               (0.8)          (6.1)
       Increase (decrease) in liabilities:
          Accounts payable                                       (14.5)           0.1
          Accrued income taxes                                    15.0            6.6
          Accrued compensation                                    (7.3)          (1.9)
          Accrued interest                                         3.7           (2.2)
          Other current and long-term liabilities                  1.7           (2.7)
                                                             ---------       --------
           Total adjustments                                      12.4           (1.2)
                                                             ---------       --------
       Net cash provided by operating activities                  38.7           19.2

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of available-for-sale securities                    (189.3)         (90.4)
  Sales of available-for-sale securities                         201.2           54.6
  Maturities of available-for-sale securities                      -             20.1
  Capital expenditures                                            (4.4)          (7.3)
  Increase in other assets                                        (4.4)         (10.9)
                                                             ---------       --------
       Net cash provided by (used in) investing activities         3.1          (33.9)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Issuance of long-term debt                                       6.6            -
  Principal payments on long-term debt                            (1.1)           -
  Issuances of common stock                                        5.3           40.2
                                                             ---------       --------
       Net cash provided by financing activities                  10.8           40.2
                                                             ---------       --------

Net increase in cash and cash
  equivalents                                                     52.6           25.5
Cash and cash equivalents at beginning
  of period                                                      187.7           88.0
                                                             ---------       --------
Cash and cash equivalents at end
  of period                                                  $   240.3       $  113.5
                                                             ---------       --------
                                                             ---------       --------

 
</TABLE>
See accompanying notes.


                                         -4-

<PAGE>

                                                                ALZA CORPORATION
                                                                  March 31, 1997

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.  BASIS OF PRESENTATION

    The information at March 31, 1997 and for the three months ended
March 31, 1997 and 1996 is unaudited, but 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.  Interim results are not necessarily indicative of results for the
full year.  The condensed consolidated financial statements should be read in
conjunction with the audited consolidated financial statements and accompanying
notes for the year ended December 31, 1996 included in ALZA's 1996 Annual Report
to Stockholders.

    Beginning with the quarter ended March 31, 1997, ALZA changed the
presentation of its consolidated statement of income and consolidated balance
sheet.  In the consolidated statement of income, royalties, fees and other
revenue now include items related to operations that were previously reflected
in interest and other income.  Interest income and expense are now shown
separately after operating income.  On the consolidated balance sheet, ALZA has
reclassified securities which have maturities of one year or more as investments
in long-term securities; these securities were previously treated as current
assets.  Prior year amounts have been changed to conform with the current year
presentation.

2.  LITIGATION

See Part II, Item 1 of this Quarterly Report on Form 10-Q.


                                         -5-

<PAGE>

                                                                ALZA CORPORATION
                                                                  March 31, 1997

3.  RECENTLY ISSUED ACCOUNTING STANDARD


     In February 1997, the Financial Accounting Standards Board issued 
Statement No. 128, "EARNINGS PER SHARE" ("SFAS 128"), which is required to be 
adopted on December 31, 1997. At that time, ALZA will be required to change 
the method currently used to compute earnings per share and to restate all 
prior periods. Under the new requirements for calculating basic earnings per 
share, which replaces primary earnings per share, the dilutive effect of 
stock options and other common stock equivalents will be excluded. Basic 
earnings per share is expected to be $0.01 higher than the reported primary 
earnings per share for the quarter ended March 31, 1997 and no change is 
expected for the quarter ended March 31, 1996. The impact of SFAS 128 on the 
calculation of fully diluted earnings per share for these quarters is not 
expected to be material.

                                         -6-

<PAGE>

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 but not limited to ALZA's product development activities and
plans, plans concerning the commercialization 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 the future occurrence of
many events, some or all of which are not predictable or within ALZA's control;
therefore, actual results may differ materially from those anticipated in any
forward-looking statements.  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, including risks associated with technology and product
development, risks relating to clinical development, regulatory clearance to
market products and medical acceptance of products, changes in the health care
marketplace, patent and intellectual property matters, regulatory and
manufacturing issues, and risks associated with competition from other
companies.




                                         -7-

<PAGE>


FIRST QUARTER EVENTS

    In February, ALZA announced it had exercised its option to license from 
Therapeutic Discovery Corporation ("TDC") an OROS -Registered Trademark- 
hydromorphone product and entered into an agreement with Knoll Pharmaceutical 
Company (together with its affiliates, "Knoll") for the development and 
worldwide commercialization of this product. The OROS -Registered Trademark- 
hydromorphone product, which utilizes ALZA's advanced oral osmotic 
technology, is designed for the 24-hour management of chronic pain. Under the 
agreement, Knoll will fund ongoing development costs for the product and will 
make milestone payments to ALZA related to key development objectives. ALZA 
will manufacture and sell the product to Knoll. ALZA also has the right to 
co-promote the product in the United States and an option to co-promote the 
product outside the United States after a specified period.

    Two royalty-bearing products developed by ALZA were launched by ALZA's 
clients during the first quarter of 1997.  Novartis Pharmaceuticals 
Corporation ("Novartis") launched DynaCirc CR-Registered Trademark- 
(isradipine) in the United States. DynaCirc CR-Registered Trademark- is a 
once-daily calcium channel blocker incorporating ALZA's OROS-Registered 
Trademark- technology.  Merck & Co., Inc. ("Merck") introduced the IVOMEC 
SR-Registered Trademark- Bolus (ivermectin) in the United States.  IVOMEC 
SR-Registered Trademark- is a product combining the antiparasitic agent 
ivermectin with ALZA's ruminal bolus technology for control of internal and 
external parasites in cattle.  The product is marketed by Merck in a number 
of countries outside of the United States.

    During the first quarter of 1997, ALZA filed an Investigational New
Drug application with the U.S. Food and Drug Administration ("FDA") for a
DUROS-TM- leuprolide


                                         -8-

<PAGE>

human implant product designed for the palliative treatment of prostate 
cancer for up to 12 months, with discontinuation of treatment possible at any 
time. Phase I/II clinical trials of the product, which is under development 
with TDC, began during the first quarter of 1997.  Also during the first 
quarter of 1997, a New Drug Application for a second generation transdermal 
testosterone product to follow Testoderm-Registered Trademark- and 
Testoderm-Registered Trademark- with Adhesive was filed with the FDA 
following its submission in December 1996.  This product, under 
development with TDC, is a single patch that can be worn on the arm or the 
torso and is designed to provide convenient physiologic testosterone 
replacement therapy.

    During the quarter, ALZA purchased two million shares of common stock 
(9.7% of total outstanding shares) of Alkermes Inc. ("Alkermes"), a drug 
delivery company.  Separately, ALZA and Alkermes agreed in principle to 
collaborate on a program for the development and commercialization of a 
product utilizing Alkermes' Prolease-Registered Trademark- or 
Medisorb-Registered Trademark- drug delivery technology.  ALZA also purchased 
1,178,882 shares of common stock (4.9% of total outstanding shares) of U.S. 
Bioscience, Inc. during the quarter.

RESULTS OF OPERATIONS


    ALZA's net income was $26.3 million or $0.30 per share for the quarter
ended March 31, 1997, compared to net income of $20.4 million or $0.24 per share
for the quarter ended March 31, 1996.


    ALZA's net income currently results primarily from royalties and fees from
client companies.  Royalties and fees, which are generally derived from sales by
client companies of products developed jointly with ALZA, vary from quarter to
quarter as a result of changing levels of product sales by client companies and,
occasionally, the receipt by ALZA of certain one-time fees.  Because ALZA's
clients generally take responsibility for obtaining necessary regulatory
approvals and make all marketing and commercialization decisions regarding such
products, most of the variables that affect ALZA's royalties and fees are not

                                         -9-

<PAGE>

directly within ALZA's control.  


     The introduction of competitive products can also have an adverse 
effect on royalties and fees.  In addition, with increasing pressures for 
cost containment in the U.S. health care system, it can be expected that 
pharmaceutical product prices, including those of products developed by ALZA, 
will not increase as quickly as they have in the past, and could decrease.  

     During the next several years, ALZA intends to become less dependent on 
royalties and fees by continuing to expand ALZA's sales and marketing 
activities and by directly marketing more products (including products 
developed with TDC); however, there can be no assurance that these expanded 
activities will be successful, due to factors such as the risks of product 
development and clinical activities, the length of the regulatory approval 
process, uncertainties surrounding the acceptance of products by the intended 
markets, the marketing of competitive products, and the current health care 
cost containment environment.  ALZA expects that, in the near term, net 
income will continue to result primarily from royalties on sales of currently 
marketed products.

    Royalties, fees and other revenue for the quarter ended March 31, 1997 
increased to $44.2 million, compared to $37.5 million for the same period in 
1996.  Royalties, fees and other revenue for the quarter ended March 31, 1997 
include an upfront payment from Knoll in connection with an agreement for the 
continued development and worldwide commercialization of the OROS-Registered 
Trademark- hydromorphone product.  The increase in royalties, fees and other 
revenue also resulted from increased

                                         -10-

<PAGE>

sales of NicoDerm-Registered Trademark- CQ-TM- (nicotine), the 
over-the-counter version of Nicoderm-Registered Trademark-, by SmithKline 
Beecham ("SB"), Duragesic-Registered Trademark- by Janssen Pharmaceutica, 
Inc. ("Janssen") and Glucotrol XL-Registered Trademark- by Pfizer Inc. 
("Pfizer").  The increase in royalties was offset in part by decreased 
royalties on sales of Transderm-Nitro-Registered Trademark- by Novartis and 
Procardia XL-Registered Trademark- by Pfizer.  Sales of Procardia 
XL-Registered Trademark-, as reported by Pfizer, decreased 22% during the 
three months ended March 31, 1997 compared to the same period in 1996.  
Royalties from Procardia XL-Registered Trademark- accounted for approximately 
35% of ALZA's royalties and fees for the quarter ended March 31, 1997.

    Research and development revenue of $33.8 million for the quarter ended 
March 31, 1997 represents an increase of 12% over the same period in 1996, 
due to product development activities conducted under agreements with client 
companies other than TDC.  Research and development revenue from TDC was 
$23.4 million and $22.9 million for the quarters ended March 31, 1997 and 
March 31, 1996, respectively.  Research and development expenses for the 
quarter ended March 31, 1997 increased 12% to $35.0 million as compared with 
the corresponding quarter in 1996, reflecting the increased activities 
described above.

    If expenditures on product development by TDC continue at approximately 
current levels, it is expected that all TDC funds available for product 
development will be exhausted during the third quarter of 1997, and product 
development funding by TDC will then cease.  Several factors could impact the 
timing of TDC exhausting its funds, including the acceleration or 
deceleration of product development and/or clinical activities, product 
development or clinical study results, the licensing of TDC products by ALZA, 
the issuance of patents to third parties, changes in the competitive 
commercial environment or other matters.

                                         -11-

<PAGE>

    Once TDC has expended all of its funds available for product development, 
ALZA will be required to determine whether or not to exercise its option, 
exercisable at ALZA's sole discretion, to purchase, in accordance with a 
predetermined formula set forth in TDC's Restated Certificate of 
Incorporation, all (but not less than all) of the outstanding shares of TDC 
Class A common stock (the "Purchase Option"). The Purchase Option will 
expire, if not exercised, on the 60th day after TDC files a Form 10-K or Form 
10-Q with the Securities and Exchange Commission containing a balance sheet 
showing less than an aggregate of $5 million in cash and cash equivalents, 
short-term and long-term investments. Under the formula, the Purchase Option 
exercise price is expected to be $100 million.  The purchase price may be 
paid in cash, in ALZA common stock, or in any combination of the two, at the 
option of ALZA. If ALZA were to exercise the Purchase Option, ALZA would 
incur a one-time charge due to the acquisition of in-process technology and 
might realize certain tax benefits.  In addition,  ALZA would need to fund 
the continued development expenses for the TDC products.  If ALZA were to 
decide not to exercise the Purchase Option, ALZA would have the right, for an 
additional 90 days, to license any or all TDC products, on a 
product-by-product and country-by-country basis.  ALZA would make payments to 
TDC, with respect to any licensed products, for countries as to which the 
license option is exercised, equal to a specified percentage of net sales of 
the licensed products by ALZA in those countries and a specified portion of 
any up-front fees and sublicensing revenues received by ALZA from third 
parties marketing the licensed products in those countries under arrangements 
with ALZA.

    If ALZA were to exercise the Purchase Option, or to license some or all 
of the TDC products for commercialization in some or all countries, ALZA 
would need to fund any additional product development necessary to complete 
the development of each of the products. In addition, ALZA has agreed to fund 
certain TDC product development activities, already underway, which will not 
be completed before TDC's funds are exhausted. Such funding by ALZA would 
begin, on a product-by-product basis, when TDC no longer has funds available 
to pay for such activities. Such funding obligation will continue only until 
the exercise or the expiration of the Purchase Option and ALZA's option to 
license each TDC product, on a product-by-product and country-by-country 
basis. However, this funding by ALZA is subject to ALZA's determination of 
the continued technical and commercial feasibility of the product and the 
compatibility of the product with ALZA's product portfolio and business 
objectives.

    If ALZA were to use its own funds to cover the continued development of 
the TDC products, these product development activities would result in 
research and development expenses without the corresponding research and 
development revenues previously provided by TDC.  ALZA could also choose to 
fund the expenses by partnering with third parties for the continued 
development and

                                         -12-

<PAGE>

commercialization of some or all of the products, either on a worldwide basis 
or in specified markets.  Alternatively, ALZA could determine to continue 
product development through other financing arrangements.

    Net sales of $27.5 million for the quarter ended March 31, 1997 increased 
33% compared to the corresponding period in 1996, primarily due to increased 
contract manufacturing of NicoDerm-Registered Trademark- CQ-TM-.  Net sales 
of Ethyol-Registered Trademark- (amifostine) for the first quarter of 1997 
were $3.5 million compared to $2.5 million for the first quarter of 1996; 
Ethyol-Registered Trademark- sales in the first quarter of 1996 reflected 
shipments of launch quantities prior to introduction of the product in April 
1996.  The timing and quantities of orders for products marketed by client 
companies are not within ALZA's control.  Net sales, therefore, can be 
expected to fluctuate from period to period, sometimes very 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 prior to their introduction.

    ALZA's gross margin (net sales less costs of products shipped) as a 
percent of net sales increased to 28% for the quarter ended March 31, 1997 
compared to 23% for the quarter ended March 31, 1996.  The increase was 
largely due to proportionately greater shipments of higher margin products.  
In addition, because many of ALZA's manufacturing costs are substantially 
fixed, increased shipments in any quarter can generally be expected to result 
in a higher gross margin for the quarter.  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 for the reasons discussed above.  A trend of higher than 
historical gross margins may ultimately be achieved through increased 
utilization of capacity, greater operating efficiencies and a proportionate 
increase in the sales of ALZA-marketed products.

                                         -13-

<PAGE>

    Selling, general and administrative expenses of $11.6 million for the 
quarter ended March 31, 1997 increased 13% compared to the corresponding 
period in 1996.  The increase was due to higher sales expenses by ALZA 
Pharmaceuticals, primarily as a result of the expansion of ALZA's sales force 
in support of Ethyol-Registered Trademark-, and increased overall general and 
administrative expenses in support of corporate activities.

    Interest income increased for the quarter ended March 31, 1997 to $16.9 
million, compared to $8.3 million during the same period in 1996, primarily 
due to higher average invested cash balances following ALZA's sale of $500 
million of 5% convertible subordinated debentures due 2006 (the "5% 
Debentures") in April 1996, and also due to gains realized on sales of 
securities.

    Interest expense increased to $13.7 million for the quarter ended March 
31, 1997, compared to $6.4 million during the same period in 1996, reflecting 
the interest expense associated with ALZA's 5% Debentures and the higher 
outstanding balance on ALZA's 5 1/4% zero coupon convertible subordinated 
debentures due 2014 (the "5 1/4% Debentures").

    ALZA's effective combined federal and state income tax rate for the year 
ended 1996 and for the quarter ended March 31, 1997 was 38%.

    The number of weighted average common and common equivalent shares for 
the quarter ended March 31, 1997 includes 12.3 million shares issuable upon 
conversion of the 5 1/4% Debentures.  The 5 1/4% Debentures are considered 
common stock equivalents, but were excluded from the earnings per share 
calculation for the quarter ended March 31, 1996 as their inclusion would 
have had an antidilutive effect.  Earnings per share for the quarter ended 
March 31, 1997 are calculated by adding to net income the after-tax interest 
incurred on the 5 1/4% Debentures for the period ($3.2 million) and dividing 
by the number of weighted average common and common equivalent shares.

                                         -14-

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES


    ALZA invested $4.4 million during the first three months of 1997 in
additions to property, plant and equipment to support its expanding research,
development and manufacturing activities.  While ALZA believes its current
facilities and equipment are sufficient to meet its current operating
requirements, ALZA is expanding its facilities and equipment to support its
medium-term and long-term requirements.


    ALZA believes that its existing cash and investment balances are adequate
to fund its cash needs for 1997 and beyond.  In addition, should the need arise,
ALZA believes it would be able to borrow additional funds or otherwise raise
additional capital.  ALZA may consider using its capital to make strategic
investments or to acquire or license technology or products.  ALZA may also
enter into strategic alliances with third parties which could provide additional
funding for research and product development and support for product marketing
and sales.


                                         -15-

<PAGE>

PART II. OTHER INFORMATION


Item 1.  LEGAL PROCEEDINGS


    Product liability suits have been filed against Janssen and ALZA from time
to time relating to the Duragesic-Registered Trademark- product which is
manufactured by ALZA and marketed by Janssen.  Janssen is managing the defense
of these suits in consultation with ALZA under an agreement between the parties.


    Historically, the cost of resolution of liability (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:


         10.11     Agreement and Amendment No. 1 to License Agreement dated
                   February 10, 1997 between ALZA Corporation and Therapeutic
                   Discovery Corporation

         11        Statement Regarding Computation of Per Share Earnings

         27.1      Financial Data Schedule for the three months ended 
                   March 31, 1997

         27.2      Restated Financial Data Schedule for the year ended
                   December 31, 1996

         27.3      Restated Financial Data Schedule for the nine months ended
                   September 30, 1996

         27.4      Restated Financial Data Schedule for the six months ended
                   June 30, 1996

         27.5      Restated Financial Data Schedule for the three months ended
                   March 31, 1996


                                         -16-

<PAGE>

         27.6      Restated Financial Data Schedule for the year ended
                   December 31, 1995

         27.7      Restated Financial Data Schedule for the nine months ended
                   September 30, 1995

         27.8      Restated Financial Data Schedule for the six months ended
                   June 30, 1995

         27.9      Restated Financial Data Schedule for the three months ended
                   March 31, 1995

         27.10     Restated Financial Data Schedule for the year ended
                   December 31, 1994

         27.11     Restated Financial Data Schedule for the nine months ended
                   September 30, 1994


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


                                         -17-

<PAGE>

                                      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 15, 1997           By:       /s/ E. Mario
                                  -----------------------------
                                       Dr. Ernest Mario
                                  Chief Executive Officer



Date: May 15, 1997           By:       /s/ Bruce C. Cozadd
                                  ------------------------------
                                          Bruce C. Cozadd
                                       Senior Vice President and
                                         Chief Financial Officer


                                         -18-

<PAGE>

                                    EXHIBIT INDEX




EXHIBIT

10.11    Agreement and Amendment No. 1 to License Agreement dated February 10,
         1997 between ALZA Corporation and Therapeutic Discovery Corporation


11       Statement Regarding Computation of Per Share Earnings

27.1     Financial Data Schedule for the three months ended March 31, 1997

27.2     Restated Financial Data Schedule for the year ended December 31, 1996

27.3     Restated Financial Data Schedule for the nine months ended September
         30, 1996

27.4     Restated Financial Data Schedule for the six months ended June 30,
         1996

27.5     Restated Financial Data Schedule for the three months ended 
         March 31, 1996

27.6     Restated Financial Data Schedule for the year ended December 31, 1995

27.7     Restated Financial Data Schedule for the nine months ended September
         30, 1995

27.8     Restated Financial Data Schedule for the six months ended June 30,
         1995

27.9     Restated Financial Data Schedule for the three months ended 
         March 31, 1995

27.10    Restated Financial Data Schedule for the year ended December 31, 1994

27.11    Restated Financial Data Schedule for the nine months ended September
         30, 1994


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