United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                    Form 10-K
         (Mark One)
         [X] Annual Report Under Section 13 or 15(d) of the Securities
        Exchange Act of 1934 For the fiscal year ended December 31, 2001

                                       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: 000-21994

                              Glyko Biomedical Ltd.
        (Exact name of small business issuer as specified in its charter)

              Canada                                    98-0195569
  (State of other jurisdiction of           (I.R.S. Employer Identification No.)
    incorporation or organization)

    199 Bay Street, Suite 2800, Toronto, Ontario, Canada                M5L 1A9
          (Address of principal executive offices)                    (Zip Code)

                  Registrant's telephone number: (415) 884-6700


        Securities registered pursuant to Section 12(b) of the Act: None
              Securities registered under Section 12(g) of the Act:
                           Common Stock, no par value
                                (Title of Class)

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 past 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
    -----     ----

Indicate by check mark if disclosure  of  delinquent  filers in response to Item
405 of Regulation  S-K is not contained in this form, and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part  III to the  Form  10-K or any
amendment to this Form 10-K.

The  aggregate  market value of the voting stock held by  non-affiliates  of the
Registrant  as of March  15,  2002 was  US$80,002,999.  The  number of shares of
common stock, no par value, outstanding on March 15, 2002 was 34,352,823.

<PAGE>

                              GLYKO BIOMEDICAL LTD.

                                     PART I

This Form 10-K contains "forward-looking statements" as defined under securities
laws. Many of these  statements can be identified by the use of terminology such
as "believes,"  "expects,"  "anticipates,"  "plans," "may," "will,"  "projects,"
"continues,"   "estimates,"   "potential,"   "opportunity"   and  so  on.  These
forward-looking  statements may be found in the " Factors That May Affect Future
Results," "Description of Business," and other sections of this Annual Report on
Form 10-K. Our actual results or experience could differ  significantly from the
forward-looking  statements.  Factors  that could cause or  contribute  to these
differences include those discussed in "Factors That May Affect Future Results,"
as well as those  discussed  elsewhere in this Form 10-K.  You should  carefully
consider that information before you make an investment decision.

You should not place undue reliance on these statements,  which speak only as of
the date that they were made. These cautionary  statements  should be considered
in connection with any written or oral forward-looking  statements that we might
issue in the future.  We do not undertake any obligation to release publicly any
revisions to these forward-looking  statements after completion of the filing of
this Form 10-K to  reflect  later  events or  circumstances  or to  reflect  the
occurrence of unanticipated events.

Item 1.   Description of Business

We filed our Certificate and Articles of Incorporation  under the laws of Canada
on June 26, 1992. Our registered  office is Box 25, Commerce Court West, 199 Bay
Street, Toronto,  Ontario, Canada M5L 1A9. Our principal executive office is 371
Bel  Marin  Keys  Blvd.,   #210,   Novato,  CA  94949.  On  December  21,  1992,
simultaneously  with the initial public offering of our common stock and listing
on The Toronto Stock  Exchange,  we acquired 100% of the  outstanding  shares of
Glyko, Inc., a company  incorporated under the laws of Delaware.  At the time of
acquisition, Glyko, Inc. was involved with original scientific research aimed at
developing novel analytic and research instrumentation for carbohydrate research
and for human medical  diagnosis.  We were  incorporated for the sole purpose of
acquiring Glyko, Inc.

On October 25, 1996, we formed  BioMarin  Pharmaceutical  Inc.  ("BioMarin"),  a
corporation   incorporated   under  the  laws  of   Delaware,   to  develop  our
pharmaceutical  products.  BioMarin is currently a developer of enzyme therapies
for debilitating,  life-threatening, chronic genetic diseases and other diseases
and conditions. It is currently focusing its research and development efforts on
four potential products, AldurazymeTM, NeutralaseTM, AryplaseTM and VibrilaseTM.
On October 7, 1998, we sold Glyko, Inc to BioMarin.  Glyko, Inc. continues to be
a wholly-owned  subsidiary of BioMarin.  As a result of our sale of Glyko, Inc.,
we have no operating activities or operational  employees.  Our only significant
asset, other than cash and cash equivalents, which are less than 7% of our total
assets, is our investment in BioMarin.

On February 25, 2002,  BioMarin  decided to close the analytics  product catalog
business of Glyko,  Inc.  The  majority  of the Glyko,  Inc.  employees  will be
incorporated  into  BioMarin's  pharmaceutical  business and such employees will
continue to provide  necessary  analytic and  diagnostic  support to  BioMarin's
therapeutic products.

The  registered  and  principal  office of BioMarin is 371 Bel Marin Keys Blvd.,
#210, Novato,  California 94949. BioMarin's common stock is listed on the Nasdaq
National  Market and the SWX Swiss New Market under the symbol  "BMRN".  It is a
reporting company under the Securities  Exchange Act of 1934 and regularly files
reports on Form 10-K and 10-Q. Most recently,  on March 29, 2002, BioMarin filed
its annual report on Form 10-K for the year ended December 31, 2001.

Beginning in October 1997, BioMarin commenced raising capital from third parties
and engaging in other  transactions  which  resulted in BioMarin  issuing common
stock to entities other than us. As a result, our percentage  ownership interest
in BioMarin has  continued to decrease.  As of December 31, 2000,  our ownership
percentage  had  decreased to 30.8%,  and by December 31,  2001,  our  ownership
percentage has further decreased to 21.7%.

As of December 31, 1997, we began  recording  our share of  BioMarin's  net loss
utilizing the equity method of accounting.  BioMarin has an accumulated  deficit
of $148 million at December 31, 2001 and is expected to incur significant losses
through 2003.  However,  based on the financings that BioMarin completed and its
market  capitalization,  we do not believe that there has been any impairment of
our investment in BioMarin.

On February 7, 2002,  we announced  that we had reached a  definitive  agreement
with  BioMarin  under  which all of our  outstanding  shares will be acquired by
BioMarin in exchange for up to  11,367,617  freely  tradable  shares of BioMarin
common stock.  If the proposed  purchase by BioMarin is approved by stockholders
of BioMarin and our shareholders and relevant  regulatory  authorities,  we will
become a  wholly-owned  indirect  subsidiary  of BioMarin and will  concurrently
repatriate to British Columbia as a private company with no operations.
<PAGE>

Since our inception,  we have incurred a cumulative deficit of $55.8 million and
we expect to continue to incur  losses due to our share of  BioMarin's  net loss
resulting from the ongoing research and development of BioMarin's pharmaceutical
product  candidates  through the second  quarter of 2002 (up until the  proposed
purchase of us by BioMarin discussed above).

Since October 8, 1998, we have agreed to pay BioMarin a monthly  management  fee
for its services to us primarily relating to management, accounting, finance and
government reporting. BioMarin had accrued receivables from us relating to these
services of zero and $9,000 at December 31, 2001 and 2000, respectively.

For a more complete description of BioMarin's business,  we advise you to review
the reports  filed by BioMarin  with the  Securities  and  Exchange  Commission,
including its annual report on Form 10-K for the year ended December 31, 2001.


                     FACTORS THAT MAY AFFECT FUTURE RESULTS

Consummation of the Transaction

The proposed  acquisition of all of our outstanding stock by BioMarin is subject
to, among other conditions,  the obtaining of regulatory,  court and shareholder
approvals.  The proposed acquisition of all of our outstanding stock by BioMarin
is subject to United  States and  Canadian  regulatory  approvals  and  filings,
including:  (i) approval of the Director under the Canada Business  Corporations
Act; (ii) listing on Nasdaq of shares of BioMarin  common stock  issuable in the
transaction;  and (iii)  qualification of the distribution of shares of BioMarin
common  stock  in  the  relevant  Canadian   jurisdictions.   In  addition,  the
acquisition  requires approval by the Superior Court of Justice  (Ontario).  The
acquisition  is also  subject  to  obtaining  the  appropriate  approval  of the
shareholders of Glyko and BioMarin.  If these approvals and other conditions are
not obtained or satisfied,  the  acquisition  will not be consummated  and Glyko
will continue to operate as it currently does.

Dependence on Investment in BioMarin

As of  December  31,  2001,  our  principal  asset  was our 21.7%  ownership  of
BioMarin's outstanding capital stock. Our success is dependent on the successful
operations  of BioMarin  including,  but not limited to,  BioMarin's  ability to
receive FDA approval of existing and future  pharmaceutical  product candidates,
BioMarin's  ability to retain key personnel,  BioMarin's  ability to manufacture
and market products effectively and successfully and BioMarin's ability to raise
additional  cash to fund  future  operations.  BioMarin is a  development  stage
company,  with its only revenues  currently being earned from cost reimbursement
revenues  for  services  performed  from its  joint  venture  with  Genzyme  for
development and  commercialization  of Aldurazyme and from an SBIR grant. If the
proposed  acquisition of us by BioMarin closes,  our current  shareholders  will
become direct stockholders of BioMarin and will no longer own our common shares.

Lack Of Diversification

Our investment assets are not diversified and therefore the market price for our
common stock is directly  dependent on the market price for shares of BioMarin's
common  stock.  Shares of  BioMarin's  Common  Stock have been highly  volatile.
During the year 2001, the high and low closing prices of BioMarin's common stock
on Nasdaq  were  $14.16  and $7.31,  respectively.  Issues  relating  to lack of
diversification  will no longer be relevant if the acquisition of us by BioMarin
is completed.

History of Operating Losses - Uncertainty of Future Profitability

Since our inception,  we have incurred a cumulative deficit of $55.8 million and
we expect to continue to incur  losses due to our share of  BioMarin's  net loss
resulting from the ongoing research and development of BioMarin's pharmaceutical
product  candidates  through the second  quarter of 2002 (up until the  proposed
purchase of us by BioMarin  discussed  above). As a result of our sale of Glyko,
Inc.  on  October  7,  1998,  we have no  operating  activities  or  operational
employees and currently our principal  asset is our  investment in BioMarin.  If
the  acquisition of us by BioMarin  closes,  shareholders  will receive a direct
investment in BioMarin common stock and will be subject to the  uncertainties of
future profitability of BioMarin.

Please also see Factors  That May Affect  Future  Results and other  appropriate
parts of reports filed by BioMarin with the Securities and Exchange  Commission,
including its annual  report filed on Form 10-K for the year ended  December 31,
2001.

Item 2.  Description of Property    None.
         -----------------------

Item 3.  Legal Proceedings          None.
        ------------------

                                       2
<PAGE>

    Item 4. Submission of Matters to a Vote of Security-Holders None.PART II
            ---------------------------------------------------

Item 5.  Market For Common Equity and Related Stockholder Matters

As of November  1993,  our common  shares  have been listed on the OTC  Bulletin
Board  under the symbol  "GLYK".  The  trading  of our  common  stock on the OTC
Bulletin Board has been limited and sporadic. Our common shares have been listed
and traded on The Toronto  Stock  Exchange  (TSE) since  December 1992 under the
symbol  "GBL." The  following  table sets forth the sales  prices for our common
shares for the periods  noted,  as  reported by the TSE.  Prices are the closing
price on the TSE during the periods indicated.

                                                                        Prices
                                                                   (In Canadian
                                                                      Dollars)*
   Year                        Period                     High             Low

   2000          First Quarter                           $13.55           $5.30
   2000          Second Quarter                           $9.75           $6.80
   2000          Third Quarter                            $9.00           $7.00
   2000          Fourth Quarter                           $7.90           $3.75
   2001          First Quarter                            $5.70           $3.80
   2001          Second Quarter                           $6.45           $3.85
   2001          Third Quarter                            $7.00           $3.75
   2001          Fourth Quarter                           $7.00           $3.75

*As of December 31, 2001, the Canadian dollar to U.S. dollar exchange rate was
 $0.6287.

Holders

As of  February  28,  2002,  there  were 110  holders  of record  of  34,352,823
outstanding common shares.

Dividend Policy

We have not paid any dividends on our common shares in the last two years. We do
not anticipate the payment of dividends in the foreseeable  future.  The payment
of dividends in the future will depend upon, among other factors,  our earnings,
capital requirements and operating and financial condition.


                                       3
<PAGE>

Item 6.  Selected consolidated financial data

The selected  consolidated  balance  sheet data of Glyko  Biomedical  Ltd. as of
December 31, 2001, 2000, 1999, 1998 and 1997 and the consolidated  statements of
operations data for the years ended December 31, 2001, 2000, 1999, 1998 and 1997
are presented  below based on U.S.  Generally  Accepted  Accounting  Principles,
consistently  applied.  This  information is derived from  financial  statements
audited by Arthur Andersen LLP, independent public accountants.

The  selected  financial  data set forth below  contain  only a portion of Glyko
Biomedical's  financial statement  information and should be read in conjunction
with the  Financial  Statements of Glyko  Biomedical  Ltd. and related Notes and
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations" included elsewhere herein.

<TABLE>
        <S>                                                <C>                <C>                  <C>


                                                                              Year Ended December 31,
                                                           -----------------------------------------------------------
        GBL's Consolidated Statements of
        Operations (in U.S. $):                                  2001               2000                 1999
                                                           ------------------ -------------------- -------------------

           Revenues                                        $      -              $    -              $      -
           Operating costs and expenses:
            General and administrative                           462,022             388,373              199,302
                                                           ------------------ -------------------- -------------------
             Total costs and expenses                            462,022             388,373              199,302
                                                           ------------------ -------------------- -------------------

           Loss from operations                                 (462,022)           (388,373)            (199,302)


           Equity in loss of BioMarin Pharmaceutical Inc.    (14,678,250)        (11,312,285)          (9,999,581)

           Interest income                                        45,421              65,317              159,352

                                                           ------------------ -------------------- -------------------
           Net loss                                        $ (15,094,851)       $(11,635,341)      $  (10,039,531)
                                                           ================== ==================== ===================

           Net loss per common share, basic
             and diluted                                   $       (0.44)       $      (0.34)      $        (0.32)
                                                           ================== ==================== ===================
           Weighted average common
             shares outstanding                               34,352,823          33,915,043           31,065,575
                                                           ================== ==================== ===================

</TABLE>

                                       4
<PAGE>



                                                          December 31,
GBL's Consolidated Statements of Operations
(in U.S.$):                                         1998               1997

 Revenues                                     $  1,159,916      $    2,036,634
   Operating costs and expenses:
    Cost of products and services                  284,860             482,770
    Research and development                       679,783             605,803
    Selling, general and administrative            690,950             562,888
    Other                                         (165,880)
    Total costs and expenses                     1,489,713           1,651,461

 Income (loss) from operations                    (329,797)            385,173

 Equity in loss of BioMarin Pharmaceutical Inc. (3,803,058)         (2,452,422)
 Interest income                                    42,822              12,610
 Other income (loss)                                   -                (1,219)


 Net loss                                      $(4,090,033)     $   (2,055,858)

 Net loss per common share, basic
  and diluted                                  $     (0.17)     $        (0.10)

 Weighted average common
  shares outstanding                            23,873,798          20,536,058


<TABLE>
<S>                                         <C>           <C>            <C>              <C>            <C>



                                                                        As of December 31,
                                            ---------------------------------------------------------------------------
GBL's Consolidated Balance Sheet Data
(in U.S.$):                                       2001          2000           1999            1998           1997

                                            -------------- --------------- -------------- ------------- ----------------
Cash, cash equivalents
  and short-term investments                 $ 2,444,424   $ 1,805,350     $   574,648    $ 2,567,824    $   528,280
Total current assets                           2,444,424     1,835,226         574,648      2,677,534        780,412
Total assets                                  37,301,955    20,855,731      29,483,095     11,064,524      3,927,518
Total shareholders' equity                    36,840,628    20,540,293      29,117,526     10,653,415      3,129,314


</TABLE>



                                       5
<PAGE>

Item 7.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

The following  discussion  of the financial  condition and results of operations
should be read in  conjunction  with our  financial  statements  and their notes
appearing elsewhere in this document.

Overview

As a result of our sale of Glyko,  Inc. to BioMarin,  as of October 7, 1998,  we
have no  operating  activities  and our  principal  asset is our  investment  in
BioMarin. At this time, we have no plans to commence any operating activities or
to diversify our assets.  We are a Canadian holding company that at December 31,
2001 owned approximately  21.7% of the capital stock of BioMarin  Pharmaceutical
Inc.  We record  BioMarin's  results of  operations  using the equity  method of
accounting.  Numerical references in the following discussion are rounded to the
nearest thousand.

On February 7, 2002,  we announced  that we had reached a  definitive  agreement
with  BioMarin  under  which all of our  outstanding  shares will be acquired by
BioMarin in exchange for up to  11,367,617  freely  tradable  shares of BioMarin
common stock.  If the proposed  purchase by BioMarin is approved by stockholders
of BioMarin and our shareholders and relevant  regulatory  authorities,  we will
become a  wholly-owned  indirect  subsidiary  of BioMarin and will  concurrently
repatriate to British Columbia as a private company with no operations.

Our net loss for the years  ended  December  31,  2001,  2000 and 1999 was $15.1
million, $11.6 million and $10.0 million, respectively. The primary component of
this  loss was our  share of the net loss of  BioMarin  accounted  for under the
equity  method of  accounting.  We expect to continue to incur losses due to our
share of BioMarin's net loss resulting from the ongoing research and development
of BioMarin's  pharmaceutical  product  candidates through the second quarter of
2002 (up until the proposed  purchase of us by BioMarin  discussed  above).  The
BioMarin  losses  do not have an impact on our cash  position.  BioMarin  has an
accumulated  deficit of $148  million at  December  31,  2001 and is expected to
incur  significant  losses through 2003.  However,  based on the financings that
BioMarin completed and its market  capitalization,  we do not believe that there
has been any impairment of our investment in BioMarin.

Results of Operations

Years Ended December 31, 2001 and 2000

Our general and  administrative  expenses were $462,000 for 2001, an increase of
$74,000  from the general and  administrative  expenses of $388,000  incurred in
2000. The increase was primarily due to the additional legal expenses associated
with the proposed acquisition of US by BioMarin,  Canadian taxes on interest due
on the note receivable from shareholder,  a new directors and officers liability
insurance policy, and web site development and implementation  expenses incurred
in 2001,  offset somewhat by reduced Board travel expenses in 2001.  General and
administrative  expenses  for  the  years  ended  December  31,  2001  and  2000
represented  legal fees,  management  fees billed by  BioMarin  for  management,
accounting, finance and government reporting, Board travel, Canadian tax on note
receivable  interest  and  other  expenses  including  press  releases,  website
expenses, insurance, transfer agent, printing, audit and tax, and postage.

Our equity in loss of  BioMarin  for 2001 was $14.7  million  compared  to $11.3
million for 2000, an increase of $3.4 million.  The increase is due primarily to
our percentage of the research and development  expenses incurred by BioMarin in
2001, in support of BioMarin's  Aldurazyme,  Aryplase,  Vibrilase and Neutralase
product  development  programs,  offset by portion of the $4.4 million charge in
the first  quarter of 2000  associated  with the  closure  of one of  BioMarin's
facilities.

Our  interest   income   earned  in  2001  and  2000  of  $45,000  and  $65,000,
respectively,  resulted from  earnings on cash  invested in short-term  interest
bearing  accounts.  The decrease in interest  income in 2001 was due to the fact
that we did not invest in any short-term investments in the second half of 2001.

Years Ended December 31, 2000 and 1999

Our general and  administrative  expenses were $388,000 for 2000, an increase of
$189,000 from the general and  administrative  expenses of $199,000  incurred in
1999. The increase was primarily due to the additional legal expenses associated
with the annual  shareholder  meeting and  additional  Board travel  expenses in
connection  with the  election  of a new slate of Board  members  in June  2000.
General  and  administrative   expense  includes  legal  fees,  Board  expenses,
management  fees  billed by BioMarin  for  management,  accounting,  finance and
government reporting, and other outside administrative support expenses.

                                       6
<PAGE>

Our equity in loss of  BioMarin  for 2000 was $11.3  million  compared  to $10.0
million for 1999,  an  increase of $1.3  million.  The  increase  was due to the
increased net loss of BioMarin  resulting from BioMarin's  increased spending on
its product candidates including Aldurazyme, Aryplase and Vibriolysin.

Our  interest   income  earned  in  2000  and  1999  of  $65,000  and  $159,000,
respectively,  resulted  from  earnings on cash  invested in short term interest
bearing accounts and, in 1999,  includes interest earned on our convertible note
from  BioMarin  until  its  conversion  on  July  23,  1999,  and  a  note  from
stockholder.  The decrease in interest  income in 2000  resulted from lower cash
balances available for investment due to an additional investment in BioMarin of
$4.4 million in April 1999.

Liquidity and Capital Resources

Our combined cash and short-term  investments  position increased by $639,000 in
2001 to $2.4  million  due to the  repayment  of a note  receivable  and accrued
interest  from a  former  officer  of  $880,000,  offset  by the use of cash for
operating activities during the year ended December 31, 2001 of $241,000.

Since our inception,  we have incurred a cumulative deficit of $55.8 million and
we expect to continue to incur  losses due to our share of  BioMarin's  net loss
resulting from the ongoing research and development of BioMarin's pharmaceutical
product  candidates  through the second  quarter of 2002 (up until the  proposed
purchase of us by BioMarin discussed above).

As a result of our sale of Glyko,  Inc. on October 7, 1998, we have no operating
activities or  operational  employees.  Since October 8, 1998, we have agreed to
pay BioMarin a monthly  management fee for its services to us primarily relating
to  management,  accounting,  finance and  government  reporting.  BioMarin  had
accrued  receivables  relating to these  services of zero and $9,000 at December
31, 2001 and 2000,  respectively.  Accordingly,  without  further  investment in
other  companies or  technologies,  we believe that we have  sufficient  cash to
sustain planned operations for the foreseeable future.

New Accounting Pronouncements


SFAS 141 and 142:

On June 29, 2001, the Financial  Accounting  Standards Board (FASB) approved for
issuance  Statement of Financial  Accounting  Standards (SFAS) No. 141, Business
Combinations, and SFAS No. 142, Goodwill and Intangible Assets. Major provisions
of these Statements are as follows:  all business  combinations  initiated after
June 30,  2001  must use the  purchase  method of  accounting;  the  pooling  of
interests method of accounting is prohibited  except for transactions  initiated
before July 1, 2001;  intangible assets acquired in a business  combination must
be recorded  separately  from goodwill if they arise from  contractual  or other
legal  rights  or are  separable  from  the  acquired  entity  and can be  sold,
transferred,  licensed, rented or exchanged, either individually or as part of a
related contract,  asset or liability; all acquired goodwill must be assigned to
reporting  units for  purposes of  impairment  testing  and  segment  reporting;
effective January 1, 2002,  goodwill and intangible assets with indefinite lives
will not be amortized but will be tested for  impairment  annually  using a fair
value  approach,  except in  certain  circumstances,  and  whenever  there is an
impairment  indicator;  other  intangible  assets will continue to be valued and
amortized  over their  estimated  lives;  in-process  research  and  development
acquired in business  combinations  will continue to be written off immediately;
goodwill arising between June 29, 2001 and December 31, 2001 will not be subject
to  amortization.  Management  is  currently  assessing  the  impact  of the new
standards. The adoption of SFAS No. 142 in January 2002 will not have a material
impact on the Company's financial statements.

SFAS 143:

In June 2001, the FASB approved for issuance SFAS No. 143, "Accounting for Asset
Retirement  Obligations."  SFAS  No.  143  requires  that  the  fair  value of a
liability  for an asset  retirement  obligation  be  recognized in the period in
which  it is  incurred  and  that  the  associated  asset  retirement  costs  be
capitalized as part of the carrying value of the related  long-lived asset. SFAS
No. 143 will be effective  January 1, 2002 for GBL.  Management  does not expect
this standard to have a material impact on GBL's  financial  position or results
of operations.

SFAS 144:

In August 2001, the FASB approved for issuance SFAS No. 144, "Accounting for the
Impairment  or  Disposal  of  Long-Lived  Assets."  SFAS No.  144  broadens  the
presentation  of  discontinued  operations  to  include  more  transactions  and
eliminates the need to accrue for future operating  losses.  Additionally,  SFAS
No. 144 prohibits the retroactive  classification of assets as held for sale and
requires  revisions  to  the  depreciable  lives  of  long-lived  assets  to  be
abandoned.  SFAS No. 144 will be effective  January 1, 2002 for GBL.  Management
does not  expect  this  standard  to have a material  impact on GBL's  financial
position or results of operations.  During the year ended December 31, 1999, the
Company adopted SFAS No. 131,  "Disclosures  about Segments of an Enterprise and
Related  Information".  The  Company  concluded  that it has only one  operating
segment.

                                       7
<PAGE>

Summary of Significant Accounting Policies


Sale of Glyko, Inc. and Investment in BioMarin Pharmaceutical Inc.:

BioMarin  acquired  Glyko,  Inc. from GBL through the exchange of BioMarin stock
for Glyko,  Inc.  stock and  accounted for the  acquisition  based upon the fair
market  value of the  BioMarin  stock  issued.  In  consolidating  Glyko,  Inc.,
BioMarin recorded intangible assets,  including goodwill, to the extent that the
fair market  value of the stock  issued  exceeded  the fair market  value of the
tangible  assets  of  Glyko,  Inc.  acquired.  However,  as  GBL  exchanged  one
investment  for  another,  it  recorded  the stock of  BioMarin  received at the
historical  cost  basis  of its  investment  in  Glyko.  GBL  accounts  for  its
investment in BioMarin using the equity method of accounting.  However, GBL does
not  record  its  share  of the  losses  recorded  by  BioMarin  related  to the
amortization of intangible assets recorded in connection with the acquisition of
Glyko.  For the years  ended  December  31, 2000 and 2001,  BioMarin  recorded a
charge to  operations  for the  amortization  of goodwill  and other  intangible
assets  of $1.6  million  and $1.2  million,  respectively.  In  February  2002,
BioMarin decided to close the carbohydrate analytical business portion of Glyko,
Inc.,  which  provided  all of Glyko,  Inc.'s  revenues.  Accordingly,  BioMarin
recorded a Glyko,  Inc. closure expense of $7.9 million in its 2001 consolidated
statements  of  operations.  This charge  consisted  primarily of an  impairment
reserve against the unamortized  balance of goodwill and other intangible assets
related to the acquisition of Glyko, Inc.

In  addition,  to the extent  that the  issuance  of stock by  BioMarin to third
parties  results  in a change in the  Company's  ownership  interest  in the net
assets of BioMarin,  the Company reflects this change in its paid-in capital and
its investment in BioMarin.  The Company  recorded an increase to its additional
paid-in capital of  approximately  $30.5 million and $1.4 million as a result of
its share in  BioMarin  funds  raised  from third  parties  for the years  ended
December 31, 2001 and 2000, respectively.

Income Taxes

In connection with the sale of Glyko,  Inc., the U.S.  federal and state net tax
operating  loss   carryforwards  and  the  related  valuation   allowances  were
consolidated into the financial statements of BioMarin.

At December 31,  2001,  we had net  operating  loss  carryforwards  for Canadian
income tax purposes of approximately $1.7 million, which began to expire in2000.
A valuation allowance is placed on the net deferred tax assets to reduce them to
an assumed net realizable value of zero.

Foreign Exchange:

As  substantially  all of the  Company's  operations  are  located in the United
States, the Company has adopted the U.S. dollar as its functional  currency.  In
accordance  with  Statement of Financial  Accounting  Standard No. 52,  "Foreign
Currency  Translation",  any  assets  and  liabilities  denominated  in  foreign
currency  are  translated  into U.S.  dollars at the  current  rate of  exchange
existing at year end and revenues and  expenses  are  translated  at the average
monthly exchange rates.  Transaction gains and losses included in the statements
of operations are not material.

Item 7A.  Quantitative and Qualitative Disclosure about Market Risk.

As of December 31, 2001 we held  11,367,617  shares of  BioMarin's  common stock
representing  21.7% of BioMarin's  outstanding  common stock.  These  securities
represent  substantially our only asset. These securities have been acquired for
investment  purposes rather than for trading  purposes.  The value of our common
stock may be substantially  influenced by the value of BioMarin's  common stock.
Following  BioMarin's  initial public  offering  (IPO) in July 1999,  BioMarin's
common stock is traded on the Nasdaq National Market and the Swiss Exchange (SWX
New  Market).  There  are  many  risks  associated  with  the  listing  of these
securities on two markets and with BioMarin's  business itself.  If the proposed
acquisition  of us by  BioMarin  closes,  our current  shareholders  will become
direct stockholders of BioMarin.

Also as of December 31, 2001,  we held $2.4 million in cash. We believe there is
no market  exposure  risk to the cash as it is currently  in a liquid  operating
account.

Item 8. Financial Statements.

                                       8
<PAGE>

The information required to be filed in this item appears on pages F1 to F30 and
is incorporated herein by reference.

Item 9. Changes in and Disagreements With Accountants on Accounting and
        Financial Disclosure.

None.







                                       9


<PAGE>

                                    PART III

Item 10.  Directors, Executive Officers, Promoters and Control Persons.

Directors and Executive Officers
The following table sets forth information with respect to the directors and
executive officers of Glyko:

<TABLE>
<S>                                           <C>         <C>                                        <C>

Name                                          Age         Position                                   Year Joined
                                                                                                       Company
Joerg Gruber                                  40          Chairman and Director                          2000
John A. Kolada(1)                             37          Secretary and Director                         2000
Jeffrey C. Trossman(1)                        41          Director                                       2000
Johannes M. Glaus(1)                          48          Director                                       2000
Urs Specker                                   47          Director                                       2000
David G. P. Allan                             60          Director                                       2001
Erich Sager                                   44          President and Chief Executive Officer          2000

</TABLE>

(1)      Member of Audit Committee

All directors hold office until the next annual meeting of stockholders or until
their successors are elected and qualified.  Officers are appointed by the Board
of  Directors  and serve at the  discretion  of the  Board.  There are no family
relationships among the officers and directors of the Corporation.

Joerg Gruber has served as our Chairman and one of our directors since June 2000
and is Chairman of Clubb Capital Limited and Clubb BioCapital  Limited,  London,
England. He was co-founder of Clubb Capital in 1995 and founded Clubb BioCapital
in  1999  which   specializes  in  raising   financing  for   biotechnology  and
pharmaceutical  companies.  Clubb Capital has acted as agent to the  Corporation
and to BioMarin in raising  substantial  amounts of equity  capital on a private
placement  basis.  Before joining Clubb  Capital,  Mr. Gruber was an independent
venture  consultant  for five years.  Prior to that, he had  responsibility  for
fixed income sales, first with Goldman Sachs and later with Shearson Lehman. Mr.
Gruber started his career with Union Bank of Switzerland where, over a nine-year
period,  he moved from its  management-training  program to  responsibility  for
Swiss  equity  sales to a number of  European  countries.  Mr.  Gruber is also a
director of Galenica Pharmaceuticals, Inc.

John A. Kolada has served as our Secretary  and one of our directors  since June
2000.  Mr. Kolada has been a partner in Blake,  Cassels & Graydon LLP since 1996
and a  solicitor  with  that  firm  since  1992,  specializing  in the  areas of
corporate  finance,  mergers and acquisitions and other corporate and commercial
matters  with  extensive  experience  in  advising  on  transactions   involving
participants in the biotechnology and pharmaceutical industries. He was based in
the  London,  England  office of Blake,  Cassels & Graydon LLP from 1996 to July
2000, at which time he returned to the firm's Toronto office.

Jeffrey C.  Trossman  has served as one of our  directors  since June 2000.  Mr.
Trossman  has been a partner  in Blake,  Cassels & Graydon  LLP since 1997 and a
solicitor  with that firm since 1991 whose  practice  focuses on all  aspects of
income tax planning,  including corporate re-organizations,  corporate financing
transactions,  international taxation and the taxation of mutual funds and other
investment  vehicles.  He has acted for a wide  variety  of public  and  private
companies and is based in the firm's head office in Toronto.

Johannes  M.  Glaus has served as one of our  directors  since June 2000 and has
been a partner in the Zurich law firm Wyler  Lustenberger  Glaus since 1999. Mr.
Glaus was a partner in the Zurich law firm Rinderknecht Glaus & Stadelhofer from
1988 to 1998 and prior to that time he was a solicitor  with the Zurich law firm
Pestalozzi  Gmuer & Patry and the U.S. law firm O'Melveny & Myers,  based in New
York.  Mr. Glaus has been  admitted to the Bars of Zurich and New York.  He also
serves on the board of a number of companies  based in Switzerland and elsewhere
including SMS Securities, a licensed Swiss securities dealer.

                                       10
<PAGE>

Urs Specker has served as one of our directors since June 2000 and has served as
Chief Executive Officer of Ansbacher (Switzerland) Limited since 1991. Ansbacher
(Switzerland)   Limited   is  a  member  of  the  Henry   Ansbacher   Group,   a
well-established  private  specialist  banking  organization.  Prior  to that he
worked with a Paribas Group company where he became  Managing  Director in 1989.
From October 1982 to December 1986,  Mr. Specker was with BBC AG Brow,  Boveri &
Cie (now ABB),  undertaking  assignments both in sales of large turnkey projects
and as a  management  consultant.  Prior to that he worked  with  another  Swiss
industrial group with assignments in Geneva and Birmingham, England. Mr. Specker
serves on the board of several other companies.

David G.P. Allan has served as one of our directors since September 2001 and has
been Chief Executive  Officer of YM BioSciences  Inc. since April 1998. Prior to
April 1998, Mr. Allan was Executive Director, Yorkton Securities Inc. In 1992 he
founded the  Knowledge-Based  Industries Group of a Canadian  investment banking
firm,  organized  as the first  Canada  involved  in  financing,  analyzing  and
creating  strategic  alliances  for life  sciences  and  information  technology
companies.  He has been in the investment banking industry in Canada since 1961.
He has been a governor of The Toronto  Stock  Exchange,  a member of the Toronto
Society of Financial Analysts and the Canadian Healthcare Licensing Association.

Erich Sager has served as our President and Chief  Executive  Officer since June
2000. Since September 1996, Mr. Sager has served as the Chairman of LaMont Asset
Management SA, a private  investment  management firm. From April 1994 to August
1996,  Mr. Sager served as Senior Vice  President,  Head of Private  Banking for
Dresdner Bank  (Switzerland)  Ltd. From  September 1991 to March 1994, Mr. Sager
served as Vice  President,  Private  Banking-Head  German Desk for Deutsche Bank
(Switzerland)  Ltd.  From 1981 to 1989,  Mr. Sager held  various  positions at a
number of banks in  Switzerland.  Mr.  Sager  serves as a director  of  BioMarin
Pharmaceutical  Inc.,  BioNebraska,  Inc., Comptec Industries Ltd.,  Dentalview,
Inc., LaMont Asset Management,  SA, and Sermont Asset Management,  SA. Mr. Sager
received  a  Business   Degree  from  the  School  of  Economics   and  Business
Administration in Zurich, Switzerland. Mr. Sager has been a director of BioMarin
Pharmaceutical Inc. since November of 1997.


      INFORMATION ABOUT THE BOARD OF DIRECTORS AND COMMITTEES OF THE BOARD

Meetings Of The Board And Its Committees

The Board of  Directors  manages the  business of the  company.  It  establishes
overall  policies and standards for the company and reviews the  performance  of
management.  In addition,  the Board has  established an Audit  Committee  whose
functions  are  briefly  described  below.  The  Board  has  not  established  a
Nominating   Committee.   In  June  2000,   the  Board  decided  to  assume  the
responsibilities  of  the  Compensation   Committee  for  making  determinations
regarding  salaries,  bonuses and other  compensation  and making decisions with
respect to awards,  including  but not  limited  to stock  option  grants to our
directors  and officers.  The  directors are kept informed of our  operations at
meetings of the Board and its committees  through reports and analyses from, and
discussions with, management.

During the fiscal year ended December 31, 2001, the Board of Directors met on 13
occasions and took action by Unanimous Written Consent on one occasion.

Audit Committee

The Audit Committee provides oversight of (a) our financial reporting processes,
system of internal controls and audit process and (b) our independent  auditors.
The Audit Committee also recommends to the Board of Directors the appointment of
the  independent  certified  public  accountants.  As of December 31, 2001,  the
members of the Audit  Committee are Mr. Kolada,  Mr.  Trossman and Mr. Glaus. In
2001, the Audit Committee met once.

Compensation of Directors

On January 15, 2002, each director and officer of the company as of December 31,
2001, was granted an option to purchase 5,000 common shares at an exercise price
of Cdn $6.75 in lieu of monetary  compensation  for  services  rendered in their
capacity as directors/officers for 2002.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires our officers and  directors,  as well
as  persons  who own ten  percent  or more of a  registered  class of our equity
securities,  to file with the SEC initial  reports of  ownership  and reports of
changes in ownership of our common shares.  Officers,  directors and ten percent
or more  shareholders  are required by SEC regulations to furnish us with copies
of all Section 16(a) forms they file.

                                       11
<PAGE>

Except as noted below, to our knowledge, based solely on review of the copies of
such reports  furnished to us or written  representations  that no other reports
were  required,  during the fiscal year ended  December 31, 2001,  all officers,
directors,  and ten percent shareholders  complied with all Section 16(a) filing
requirements.  All Forms 3 and Forms 5 for the all officers and directors  since
June 2000 have not yet been filed.

Item 11.  Executive Compensation.

Executive Compensation

We are  required by the SEC to disclose  compensation  paid by the us during the
last three fiscal years to (a) our Chief  Executive  Officer;  (b) our four most
highly compensated  executive officers,  other than the Chief Executive Officer,
who were serving as executive  officers at the end of Fiscal 2001; and (c) up to
two additional  individuals  for whom such  disclosure  would have been provided
under  clause  (a) and (b) above but for the fact  that the  individual  was not
serving as an executive  officer at the end of Fiscal 2001;  provided,  however,
that no disclosure  need be provided for any executive  officer,  other than the
CEO, whose total annual salary and bonus does not exceed $100,000.

Our officers receive no cash  compensation.  No executive officer received total
compensation,  including  salary,  bonus,  or other  compensation,  in excess of
$100,000  during the year ended  December 31, 2001.  Accordingly,  the following
table  discloses  compensation  paid by us during the last three fiscal years to
(a) Mr. Erich Sager, our Chief Executive Officer beginning in June 2000; and (b)
Dr. John C. Klock,  our Chief Executive  Officer until June 2000.  There were no
other  executive  officers for the years ended  December  31, 2000 and 2001.  We
refer to all of these officers as the "Named Executive Officers."

<TABLE>
<S>                            <C>       <C>        <C>          <C>             <C>                     <C>


                                                  Summary Compensation Table

                                                                                        Long-Term
                                            Annual Compensation                       Compensation


                                                                                       Number of
                                                                                 Shares of Underlying
                                                                   Other Annual         Options             All Other
Name and Principal Position       Year    Salary($)   Bonus($)    Compensation($)   Granted (#) (1)       Compensation

Erich Sager (2)                   2001         -          -              -                5,000                  -
   President, Chief Executive    2000(3)       -          -              -                2,500                  -
   Officer and Chief              1999         -          -              -                  -                    -
   Financial Officer

(1)      All dollar values are stated in Canadian dollars.  As of December 31, 2001, the Canadian dollar to U.S. dollar exchange
         rate was $0.6287.

(2)      Mr. Sager was appointed President and Chief Executive Officer in June 2000 following the election of directors at the
         annual meeting of shareholders.

(3)      2,500 options granted in January 2001 to Mr. Sager were earned in 2000 for his services as our Chief Executive
         Officer since June 2000.

</TABLE>

                                       12

<PAGE>


                                  STOCK OPTIONS

Stock Option Plan

We have a stock option plan (the "Plan")  under which our Board of Directors may
grant options to purchase Common Shares to our directors,  officers, consultants
and key employees.  The Plan is administered by the Board of Directors.  Options
granted  under the Plan will have an exercise  price which will not be less than
the closing price of our Common Shares on The Toronto Stock Exchange (the "TSE")
on the trading day immediately  prior to the date of grant or the average of the
bid and ask prices if no sales were  reported  on the TSE on such  trading  day.
Options will be exercisable  over a number of years specified at the time of the
grant,  which cannot  exceed ten years.  The  aggregate  number of common shares
subject to options  granted under the Plan cannot  exceed three  million  common
shares  without  shareholder  approval  and no one  optionee is entitled to hold
options  exceeding  five  percent of the common  stock  outstanding.  Also,  the
maximum  number of shares that may be reserved for  issuance  under the Plan may
not  exceed 10  percent of the common  shares  outstanding  without  shareholder
approval.

In general, stock options granted under the Plan terminate within 90 days of the
termination  of an  optionee's  employment.  Options also  terminate  within six
months of the death or total and permanent  disability of the optionee.  Options
granted  under  the Plan are not  transferable.  As of March  15,  2002,  81,397
options (net of exercised options) had been approved by the Board of Directors.

Options  will  only  be  granted  in  compliance  with   applicable   securities
legislation,  and the Plan will be operated in conformity with the  requirements
of the TSE.

Fiscal 2001 Option Grants

The following table shows stock option grants to the Named Executive Officers
during Fiscal 2001.

<TABLE>
<S>                           <C>           <C>            <C>          <C>             <C>


                                                    OPTION / SAR GRANTS IN LAST FISCAL YEAR



                               Number of     Percent of
                               Securities    Total Options   Exercise      Option         Potential Realizable Value at
                               Underlying    Granted to     Price Per       Term          Assumed Annual Rates of Stock
                                Options       Employees       Share      Expiration       Price Appreciation for Option
                                Granted       in 2001 (1)     ($) (2)        Date                 Term ($) (3)
                                --------     -----------     -------         ----        ------------------------------
                                                                                              5%           10%
                                                                                            ------       -------
Name
----
Erich Sager                       5,000           17%          4.50         1/28/05         6,216        13,736


(1)  We had no employees in 2001; however, the percentage reported reflects
     the percentage granted to Mr. Sager out of the total options granted
     and earned in 2001.

(2)  All dollar values are stated in Canadian dollars. As of December 31, 2001,
     the Canadian dollar to U.S. dollar exchange rate was $0.6287.

(3)  We are required by the SEC to use 5% and 10% assumed rate of appreciation
     over the option term. This does not represent our estimate or projection of
     the future common stock price. If the common stock does not appreciate, the
     Named Executive Officers will receive no benefit from the options.

</TABLE>


                                       13

<PAGE>


Option Exercises/Fiscal Year End Value. The following table shows stock option
exercises and the value of unexercised stock options held by the Named Executive
Officers during Fiscal 2001.

                 AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL
                        YEAR AND FY-END OPTION/SAR VALUES
<TABLE>
<S>                       <C>             <C>             <C>              <C>              <C>               <C>

========================= =============== =============== ================================= ====================================
                                                                Number of Securities
                                                                     Underlying                    Value of Unexercised
                                                               Unexercised Options at             in-the-money Options at
                                                                 December 31, 2001               December 31, 2001 (1)(2)
                          --------------- --------------- --------------------------------- ------------------------------------
                              Shares           Value
                             Acquired        Realized
          Name              on Exercise       (Cdn.$)       Exercisable    Unexercis-able     Exercisable       Unexercisable
                                                                                                  ($)                ($)
------------------------- --------------- --------------- ---------------- ---------------- ----------------- ------------------
Erich Sager                      -               -              7,500             -             $18,750               -
========================= =============== =============== ================ ================ ================= ==================

</TABLE>

(1) Represents the positive difference between the closing price of our common
    shares on December 31, 2001 of Cdn$7.00 per share and the exercise price of
    the options.

(2) All dollar values are stated in Canadian dollars. As of December 31, 2001,
    the Canadian dollar to U.S. dollar exchange rate was $0.6287.

Board of Director Interlocks and Insider Participation

Compensation  matters are determined by our full Board of Directors.  Except for
Mr. Sager,  who is our Chief  Executive  Officer and who is on the  compensation
committee of BioMarin  Pharmaceutical  Inc.,  during the past year,  none of our
executive officers served as:

- a member of the  compensation  committee  (or other  committee of the Board of
Directors  performing  equivalent  functions  or in  the  absence  of  any  such
committee,  the  entire  Board of  Directors)  of another  entity,  one of whose
executive officers served on our Board of Directors; or

- director of another  entity,  one of whose  executive  officers  served on our
Board of Directors.

Employment Contracts and Termination of Employment and Change of Control
Arrangements

None of the Named Executive Officers are a party to an employment agreement with
us.

                                PERFORMANCE GRAPH

The following  graph compares the  cumulative  total  shareholder  return on our
common shares for the last five fiscal years with the cumulative total return on
(a)  the  Toronto  Stock  Exchange  300  Composite  Index  and  (b)  the  Nasdaq
Pharmaceutical Index.


                                       14
<PAGE>

                               [ OBJECT OMITTED ]


                    COMPARISON OF CUMALATIVE TOTAL RETURN (1)

The graph assumes that the value of the investment in the common shares and in
each index was $100 at December 31, 1996. Does not give effect to fluctuations
in the currency exchange rate between the U.S. and Canadian dollar.

The comparisons in this table are required by the SEC and, therefore, are not
intended to forecast or be indicative of possible future performance of our
common shares.

                                       15
<PAGE>

Item 12.  Security Ownership of Certain Beneficial Owners and Management

The following table lists certain information  regarding beneficial ownership of
our common  shares as of March 15, 2002,  by (i) those persons who own more than
5% of our common shares,  (ii) our Chief  Executive  Officer,  (iii) each of our
directors,  and (iv) the total amount of common  shares held by our officers and
directors as a group.



                               Number of Glyko               Percentage of Glyko
Name & Address of Shareholder   Common Shares                 Common Shares

EquityFourLife (Bahamas) Ltd.     3,000,000                              8.7%
P.O. Box N-7168
Ambassador House, Bank Lane
Nassau, Bahamas

LaMont Asset Management SA        2,863,000(1)                           8.3%
Baarerstrasse 57
P.O. Box 4639
6304 Zug, Switzerland

Gwynn R. Williams                 2,848,488                              8.3%
c/o Life Science Research Ltd.
3rd Floor Salisbury House
15 Victoria Street
Douglas, Isle of Man
British Isles, UK

Erich Sager                       2,873,000(2)                           8.4%
c/o LaMont Asset Management
Baarerstrasse 57
P.O. Box 4639
6304 Zug, Switzerland

Joerg Gruber                        148,451(3)                            *
c/o Clubb Capital Ltd.
17 Waterloo Place, 4th Floor
London, SW1Y 4AR
UK

Johannes M. Glaus                   102,451(4)                            *
c/o Wyler Lustenberger Glaus
Sempacherstrasse 15
CH-8032
Zurich, Switzerland

Urs Specker                          20,000(4)                            *
c/o Ansbacher (Switzerland), Limited
PO Box 2071, Muhlebachstasse 54
CH-8032
Zurich, Switzerland


John A. Kolada                       10,000(4)                            *
c/o Blake, Cassels & Graydon LLP
Box 25, Commerce Court West
199 Bay Street
Toronto, Ontario
Canada M5L 1A9


                                       16
<PAGE>

Jeffrey C. Trossman                  10,000(4)                            *
c/o Blake, Cassels & Graydon LLP
Box 25, Commerce Court West
199 Bay Street
Toronto, Ontario
Canada M5L 1A9

David G.P. Allan                      3,897(5)

All Officers and Directors        3,167,799(6)                           9.1%
* Less than 1%.

(1)      Includes 300,500 common shares held beneficially by LaMont Asset
         Management.

(2)      Includes 2,863,000 common shares held by LaMont Asset Management, of
         which Mr. Sager is an affiliate. Mr. Sager disclaims beneficial
         ownership of the shares held by LaMont except to the extent of his
         pecuniary interest. Includes 10,000 common shares issuable upon
         exercise of options within 60 days of March 15, 2002. In the event that
         the transaction is completed, an additional 2,500 common shares will be
         issuable upon further options that will accelerate.

(3)      Includes 100,441 common shares held by Clubb Capital Ltd., and 38,000
         held by Clubb BioCapital Ltd., of which Mr. Gruber is an affiliate. Mr.
         Gruber disclaims beneficial ownership of the shares held by Clubb
         except to the extent of his pecuniary interest. Includes 10,000 common
         shares issuable upon exercise of options within 60 days March 15, 2002.
         In the event that the transaction is completed, an additional 2,500
         common shares will be issuable upon further options that will
         accelerate.

(4)      Includes 10,000 common shares issuable upon exercise of options within
         60 days of March 15, 2002. In the event that the transaction is
         completed, an additional 2,500 common shares will be issuable upon
         further options that will accelerate.

(5)      Includes 3,897 common shares issuable upon exercise of options within
         60 days of March 15, 2002. In the event that the transaction is
         completed, an additional 2,500 common shares will be issuable upon
         further options that will accelerate.

(6)      Includes 63,897 common shares issuable upon exercise of options within
         60 days of March 15, 2002. In the event that the transaction is
         completed, an additional 17,500 common shares will be issuable upon
         exercise of accelerated options.


Item 13.  Certain Relationships and Related Transactions

For the year  ended  December  31,  2001 and 2000,  we paid legal fees to Blake,
Cassels  and  Graydon  LLP in which two of our  directors,  Mr.  Kolada  and Mr.
Trossman are  partners.  During the years ended  December 31, 2001 and 2000,  we
incurred  expenses of $248,483  and  $142,208,  respectively,  payable to Blake,
Cassels and  Graydon  LLP,  relating to general  corporate  services  and,  with
respect  to legal  fees paid for the year  ended  December  31,  2001,  expenses
incurred also related to the  transaction  with BioMarin that has been discussed
herein.

Since October 8, 1998, we have agreed to pay BioMarin a monthly  management  and
reporting  fee  for  its  services  to  us  primarily  relating  to  management,
accounting,  finance and government reporting.  During 2001, Glyko paid BioMarin
$7,700 per month with  respect to this  management  fee.  BioMarin  had  accrued
receivables  relating to these  services of zero and $9,000 at December 31, 2001
and 2000, respectively.

Mr. Sager is entitled to receive Cdn.$1,500.00 per month in connection with fees
and  expenses  incurred as our  President  and Chief  Executive  Officer,  which
entitlement commenced in June 2000. Mr. Sager received a lump sum pre-payment of
approximately Cdn.$42,300 in late 2000 for these fees and expenses. As a result,
as  of  February  2002,  Mr.  Sager  has  an  outstanding   prepaid  balance  of
Cdn.$10,800.


                                     PART IV

Item 14.  Exhibits, List and Reports on Form 8-K

(a) Documents are filed as exhibits to this report as enumerated in the Index to
    Exhibits hereto, Part IV Item I.

(b) Reports on Form 8-K

    No reports were filed on Form 8-K during the quarter ended December 31,
    2001.

                                       17
<PAGE>


(c)               List of Exhibits
<TABLE>
     <S>            <C>


     Exhibit                                                     Description
     Number
     -------        ----------------------------------------------------------------------------------------------------
       2.1          Share Exchange Agreement between Glyko Biomedical, Ltd. and BioMarin Pharmaceutical Inc.
                    dated September 15, 1998. (filed as exhibit 2.1 to Form 10-QSB dated March 31, 1999 and incorporated
                    herein by reference).
       2.2          Acquisition Agreement for a Plan of Arrangement by and among BioMarin Pharmaceutical Inc., BioMarin
                    Acquisition (Nova Scotia) Company and Glyko Biomedical Ltd.
       3.1          Registrant's Articles of Incorporation and Bylaws (filed as exhibit 3.1 to Form 10-SB Registration
                    Statement No. 0-21994 dated August 6, 1993 and incorporated herein by reference).
      10.1          Glyko Biomedical Share Option Plan - 1994  (filed as exhibit 10.1 to Form 10-QSB dated June 30, 1994
                    and incorporated herein by reference).
      99.1          Letter to Securities and Exchange Commission from Glyko regarding representations of Arthur Andersen
                    LLP.
</TABLE>



                                       18

<PAGE>


                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act
of 1934, the registrant caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
                                                      GLYKO BIOMEDICAL LTD.

Dated: March 27, 2002                            By:  /s/  Erich Sager
----------------------------------------
                                                      ---------------------
                                                      Erich Sager
                                                      President and Chief
                                                      Executive Officer


                                POWER OF ATTORNEY

     KNOW ALL MEN BY THESE PRESENTS,  that each person whose  signature  appears
below constitutes and appoints Erich Sager, his attorney-in-fact, with the power
of  substitution,  for him in any and all capacities,  to sign any amendments to
the Report on Form 10-K and to file the same,  with  exhibits  thereto and other
documents in connection therewith,  with the Securities and Exchange Commission,
hereby ratifying and confirming all that each of said attorneys-in  fact, or his
substitute or substitutes, may do or cause to be done by virtue hereof.

     In  accordance  with the Exchange Act of 1934,  this report has been signed
below by the following persons on behalf of the Registrant and in the capacities
and on the dates indicated.

<TABLE>
<S>                                 <C>                                             <C>


          Signature                                Title                                  Date

/s/ Erich Sager                                                                       March 27, 2002
-----------------------------------                                                 -------------------
Erich Sager                         President and Chief Executive Officer

/s/ Joerg Gruber                                                                      March 27, 2002
-----------------------------------                                                 -------------------
Joerg Gruber                        Director and Chairman

/s/ John A. Kolada                                                                    March 27, 2002
-----------------------------------                                                 -------------------
John A. Kolada                      Secretary and Director

/s/ Jeffrey C. Trossman                                                               March 27, 2002
-----------------------------------                                                 -------------------
Jeffrey C. Trossman                 Director

/s/ Urs Specker                                                                       March 27, 2002
-----------------------------------                                                 -------------------
Urs Specker                         Director

/s/ Johannes M. Glaus                                                                 March 27, 2002
-----------------------------------                                                 -------------------
Johannes M. Glaus                   Director

/s/ David G.P. Allan                                                                  March 27, 2002
-----------------------------------                                                 -------------------
David G.P. Allan                    Director

</TABLE>


                                       19
<PAGE>


                          Index to Financial Statements


Glyko Biomedical Ltd.'s Financial Statements
       Report of Independent Public Accountants                            F1
       Balance Sheets                                                      F2
       Statements of Operations                                            F3
       Statements of Shareholders' Equity                                  F4
       Statements of Cash Flows                                            F5
       Notes to Financial Statements                                       F6

BioMarin Pharmaceutical, Inc.'s Consolidated Financial Statements
       Report of Independent Public Accountants                           F12
       Consolidated Balance Sheets                                        F13
       Consolidated Statements of Operations                              F14
       Consolidated Statements of Stockholders' Equity                    F15
       Consolidated Statements of Cash Flows                              F18
       Notes to Consolidated Financial Statements                         F19







                                       20
<PAGE>


                    Report of Independent Public Accountants



To the Shareholders of Glyko Biomedical Ltd.:



We have audited the  accompanying  balance  sheets of Glyko  Biomedical  Ltd. (a
Canadian company) as of December 31, 2001 and 2000 and the related statements of
operations, shareholders' equity and cash flows for the years ended December 31,
2001, 2000 and 1999. These financial  statements are the  responsibility  of the
company's  management.  Our  responsibility  is to  express  an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Glyko  Biomedical Ltd. as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for the  years  ended  December  31,  2001,  2000  and 1999 in  conformity  with
accounting principles generally accepted in the United States.



                             /s/ ARTHUR ANDERSEN LLP

San Francisco California
February 21, 2002


                                       F1
<PAGE>
<TABLE>


                                                     GLYKO BIOMEDICAL LTD.
                                                        BALANCE SHEETS
                                                       (In U.S. dollars)
<S>                                                         <C>                       <C>
                                                                December 31,              December 31,
                                                                    2001                      2000
                                                            ---------------------     ---------------------
                                                                (Unaudited)
Assets
Current assets:
    Cash and cash equivalents                                        $ 2,444,424                 $ 408,133
    Short-term investments                                                     -                 1,397,217
    Interest receivable                                                        -                    29,876
                                                            --------------------     ---------------------
      Total current assets                                             2,444,424                 1,835,226
Investment in BioMarin Pharmaceutical Inc.                            34,857,531                19,020,505
                                                            --------------------     ---------------------
      Total assets                                                  $ 37,301,955              $ 20,855,731
                                                            =====================     =====================

Liabilities and Shareholders' Equity
Current liabilities:
    Accrued liabilities                                                $ 461,327                 $ 315,438
                                                            --------------------     ---------------------
      Total current liabilities                                          461,327                   315,438
                                                            ---------------------     ---------------------

Shareholders' equity:
    Common shares, no par value, unlimited shares
      authorized, 34,352,823 shares issued and
      outstanding at both December 31, 2001 and
      December 31, 2000.                                              22,535,096                22,535,096
    Additional paid-in capital                                        70,154,983                39,561,634
    Common share warrants                                                      -                     2,934
    Note receivable from shareholder                                           -                  (804,771)
    Accumulated deficit                                              (55,849,451)              (40,754,600)
                                                            --------------------     ---------------------
      Total shareholders' equity                                      36,840,628                20,540,293
                                                            --------------------     ---------------------
      Total liabilities and shareholders' equity                    $ 37,301,955              $ 20,855,731
                                                            =====================     =====================



                         The accompanying notes are an integral part of these statements.
</TABLE>
                                       F2
<PAGE>
                             Glyko Biomedical Ltd.
  Statements of Operations for the Years Ended December 31, 2001, 2000 and 1999
                               (In U.S. dollars)


                                             Year Ended December 31
                                      2001            2000           1999
                                   ---------       ----------      ---------

Expenses:
  General and administrative       $ 462,022       $ 388,373       $ 199,302
                                   ---------       ---------       ---------
    Total expenses                   462,022         388,373         199,302
                                   ---------       ---------       ---------

Loss from operations                (462,022)       (388,373)       (199,302)
Equity in loss of BioMarin
 Pharmaceutical Inc.             (14,678,250)    (11,312,285)     (9,999,581)
Interest income                       45,421          65,317         159,352
                                   ---------       ---------       ---------
Net loss                        $(15,094,851)   $(11,635,341)   $(10,039,531)
                                   =========       =========       =========

Net loss per common share,
 basic and diluted              $     (0.44)    $     (0.34)    $      (0.32)
                                   =========       =========       =========

Weighted average common shares
  outstanding, basic and diluted 34,352,823      33,915,043       31,065,575
                                 ==========      ==========       ==========



        The accompanying notes are an integral part of these statements.

                                       F3
<PAGE>
                             Glyko Biomedical Ltd.
    Statements of Stockholders' Equity for the Year Ended December 31, 2001
                               (In U.S. dollars)


<TABLE>
<S>                            <C>         <C>          <C>             <C>            <C>               <C>           <C>
                                       Common Share                     Common Share   Note Receivable    Accumulated
                                   Shares    Amount    Paid In Capital   Warrants      From Shareholder    Deficit        Total
                                   ------    ------    ---------------  ------------   ----------------   -----------     -----
Balance at December 31, 1998   28,020,234  $ 17,963,167 $ 11,222,691     $ 547,285        $(721,971)     $(19,079,728) $ 9,931,444

Net loss for the year                  -            -           -              -                -         (10,039,531) (10,039,531)

Exercise of stock options         280,560       161,633         -              -                -                   -      161,633

Exercise of stock warrants      3,534,528     2,647,669         -         (397,879)             -                   -    2,249,790

Reclassification of interest on note receivable
  from shareholder                      -             -       27,600             -          (27,600)                -            -

Additional paid-in capital resulting from the
  sale of common stock by BioMarin Pharmaceutical
  Inc.                                  -             -   26,814,190             -                -                 -   26,814,190

                               ----------  ------------ ------------     ---------       -----------    --------------------------
Balance at December 31, 1999   31,835,322  $ 20,772,469 $ 38,064,481     $ 149,406       $ (749,571)    $ (29,119,259)$ 29,117,526
                               ==========  ============ ============     =========       ===========    ==========================

Net loss for the year                   -             -            -             -                -       (11,635,341) (11,635,341)

Exercise of common share options  299,500        269,092           -             -                -                 -      269,092

Exercise of common share
  warrants                      2,218,001      1,493,535      17,609      (149,406)               -                 -    1,361,738

Interest accrued on note receivable
  from shareholder                      -              -      55,200             -          (52,266)                -        2,934

Additional paid-in capital from the
  sale of common stock by BioMarin
  Pharmaceutical Inc.                   -              -   1,424,344             -                -                 -    1,424,344

                               ----------   ------------------------    ----------       -----------    --------------------------
Balance at December 31, 2000   34,352,823   $ 22,535,096 $39,561,634    $        -       $ (801,837)    $ (40,754,600)$ 20,540,293
                               ==========   ============ ===========    ==========       ===========    ==========================

Net loss for the year                   -              -           -                                      (15,094,851) (15,094,851)

Interest accrued on note receivable from shareholder
  and other                             -              -      78,073             -          (78,073)                -

Repayment of note receivable from
  shareholder                           -              -           -             -          879,910                 -      879,910

Additional paid-in capital from the
  sale of common stock by BioMarin
  Pharmaceutical Inc.                   -              -  30,515,276             -                -                 -   30,515,276

                               ----------  -------------------------    ----------        ---------     -------------- -----------
Balance at December 31, 2001   34,352,823  $  22,535,096 $70,154,983    $        -        $       -     $ (55,849,451) $36,840,628
                               ==========  ============= ===========    ==========        =========     ============== ===========

</TABLE>


        The accompanying notes are in integral part of these statements

                                       F4
<PAGE>


                             Glyko Biomedical Ltd.
 Statements of Cash Flows for the Years Ended December 31, 2001, 2000 and 1999
                               (In U.S. dollars)
<TABLE>
<S>                                                             <C>                 <C>                 <C>


                                                                                 Year Ended December 31,
                                                                       2001              2000                1999
                                                                ----------------    ---------------     --------------
Cash flows from operating activities:
     Net loss                                                    $ (15,094,851)      $ (11,635,341)      $(10,039,531)
Adjustments to reconcile net loss to net cash
       used in operating activities:
     Equity in loss of BioMarin Pharmaceutical Inc.                 14,678,250          11,312,285          9,999,581
     Changes in assets and liabilities:
       Interest receivable                                              29,876             (29,876)                 -
       Accrued liabilities                                             145,889             (50,131)            15,461
                                                                ----------------    ---------------     --------------
     Total adjustments                                              14,854,015          11,232,278         10,015,042
                                                                ----------------    ---------------     --------------
       Net cash used in operating activities                          (240,836)           (403,063)           (24,489)
                                                                ----------------    ---------------     --------------
Cash flows from investing activities:
     Investment in BioMarin Pharmaceutical Inc.                              -                   -         (4,419,110)
     Sale (Purchase) of short-term investments                       1,397,217          (1,397,217)                 -
                                                                ----------------    ---------------     --------------
       Net cash provided by (used in) investing activities           1,397,217          (1,397,217)        (4,419,110)
                                                                ----------------    ---------------     --------------
Cash flows from financing activities:
     Proceeds from exercise of common share options and
       warrants                                                              -           1,633,765          2,350,423
     Repayment of note receivable from shareholder                     879,910                   -            100,000
                                                                ----------------    ---------------     --------------
       Net cash provided by financing activities                       879,910           1,633,765          2,450,423
                                                                ----------------    ---------------     --------------
Net increase (decrease) in cash and cash equivalents                 2,036,291            (166,515)        (1,993,176)
Cash and cash equivalents, beginning of period                         408,133             574,648          2,567,824
                                                                ----------------    ---------------     --------------
Cash and cash equivalents, end of period                           $ 2,444,424           $ 408,133          $ 574,648
                                                                ================    ===============     ==============

</TABLE>





        The accompanying notes are an integral part of these statements.

                                       F5
<PAGE>


                              GLYKO BIOMEDICAL LTD.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   The Company and Description of the Business

Glyko  Biomedical  Ltd.  (the Company or GBL) is a Canadian  company,  which was
established  in 1992 to acquire all of the  outstanding  capital stock of Glyko,
Inc., a Delaware  corporation.  Since its inception in October 1990, Glyko, Inc.
engaged in research and  development of new techniques to analyze and manipulate
carbohydrates for research,  diagnostic and pharmaceutical purposes. Glyko, Inc.
developed a line of analytic instrumentation laboratory products that include an
imaging system, analysis software and chemical analysis kits.

In October 1996, GBL formed BioMarin Pharmaceutical Inc. (BioMarin),  a Delaware
corporation in the development  stage,  to develop the Company's  pharmaceutical
products. BioMarin began business on March 21, 1997 (inception) and subsequently
issued  1.5  million  shares  of  common  stock  to GBL  for  $1.5  million.  As
consideration for a certain license  agreement dated June 1997,  BioMarin issued
GBL 7 million  shares of  BioMarin  common  stock.  Beginning  in October  1997,
BioMarin raised capital from third parties. As of December 31, 1997, the Company
began  recording its share of BioMarin's net loss utilizing the equity method of
accounting.  On June 30, 1998,  GBL made an additional $1 million  investment in
BioMarin.

On October 7, 1998, GBL sold to BioMarin 100% of the  outstanding  capital stock
of Glyko,  Inc. in exchange for 2,259,039 shares of BioMarin's  common stock. In
addition,  BioMarin agreed to assume options,  previously issued to employees of
Glyko, Inc., to purchase up to 585,969 shares of GBL's common stock (exercisable
into 255,540 shares of BioMarin common stock) and BioMarin paid $500 in cash.

On April 13, 1999, the Company entered into a convertible  note arrangement with
BioMarin in the amount of $4.3  million,  as part of a $26  million  convertible
note  financing.  This note plus  accrued  interest was  converted  into 441,911
shares of BioMarin  common  stock  concurrent  with  BioMarin's  initial  public
offering on July 23, 1999.

In May 2001,  BioMarin  completed  two  private  placements  of its  securities,
raising  total net proceeds of  approximately  $42.5  million.  On May 16, 2001,
BioMarin  sold  4,763,712  shares of common stock at $9.45 per share and, for no
additional consideration,  issued three-year warrants to purchase 714,554 shares
of common stock at an exercise price of $13.10 per share. On May 17, 2001 a fund
managed  by Acqua  Wellington  purchased  105,821  shares  of  common  stock and
received  warrants to purchase  15,873  shares of common stock on the same price
and terms as the May 16, 2001 transaction.

In August 2001, BioMarin signed an amended agreement with Acqua Wellington North
American  Equities  Fund Ltd.  (Acqua  Wellington)  for an equity  investment in
BioMarin.  The  agreement  allows  for  the  purchase  of  up to  $27.7  million
(approximately  2,500,000  shares).  Under the terms of the agreement,  BioMarin
will have the option to request that Acqua Wellington invest in BioMarin through
sales of  registered  common  stock at a small  discount  to market  price.  The
maximum  amount  that  BioMarin  may  request  to be  bought in any one month is
dependent  upon the market price of the stock (or an amount that can be mutually
agreed-upon  by both  parties)  and is  referred  to as the "Draw Down  Amount."
Subject to certain  conditions,  Acqua  Wellington is obligated to purchase this
amount if  requested to do so by BioMarin.  In  addition,  BioMarin  may, at its
discretion,  grant  a  "Call  Option"  to  Acqua  Wellington  for an  additional
investment in an amount up to the "Draw Down Amount" which Acqua  Wellington may
or may not choose to exercise. During 2001, Acqua Wellington purchased 1,344,194
shares for $13.5  million  ($13.2  million  net of issuance  costs).  Under this
agreement, Acqua Wellington may also purchase stock and receive similar terms of
any other equity financing by the BioMarin.

On October 31, 2001,  BioMarin  purchased from IBEX Technologies Inc. (TSE: IBT)
and its subsidiaries the intellectual  property and other assets associated with
the IBEX therapeutic enzyme drug products (including NeutralaseTM and Phenylase)
for $10.4 million, consisting of $2 million in cash and $8.4 million in BioMarin
common stock at $10.218 per share (814,647  shares).  The purchase also includes
up to  approximately  $9.5  million  in  contingency  payments  upon  regulatory
approval of Neutralase and Phenylase,  provided that approval occurs within five
years.   The  transaction  was  accounted  for  using  the  purchase  method  of
accounting.  All of the purchase  price plus related  expenses are  reflected on
BioMarin's  consolidated  statements of  operations  as in-process  research and
development expenses totaling $11.6 million.


                                       F6
<PAGE>


                              GLYKO BIOMEDICAL LTD.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


On December 13, 2001,  BioMarin completed a public offering of its common stock.
In the offering,  BioMarin sold 8,050,000 shares,  including 1,050,000 shares to
cover over-allotments,  at a price to the public of $12.00 per share, or a total
offering price of $96.6 million. The net proceeds to BioMarin were approximately
$90.4 million.

In February 2002, BioMarin decided to close the carbohydrate analytical business
portion  of  Glyko,  Inc.,  which  provided  all  of  Glyko,   Inc.'s  revenues.
Accordingly,  BioMarin recorded a Glyko, Inc. closure expense of $7.9 million in
the 2001 consolidated statements of operations.  This charge consisted primarily
of an impairment  reserve against the unamortized  balance of goodwill and other
intangible  assets related to the acquisition of Glyko, Inc. The majority of the
Glyko,  Inc.  employees will be incorporated into the BioMarin business and such
employees will continue to provide necessary  analytic and diagnostic support to
BioMarin's therapeutic products

As a result of BioMarin's IPO,  concurrent with the conversion of the notes from
GBL and  other  noteholders,  the  sale by  BioMarin  of  common  stock to Acqua
Wellington,  the sales by BioMarin of common stock in the private placements and
a follow-on  offering,  the exercise of BioMarin  stock  options and warrants by
third parties, and the purchase of IBEX Technologies  intellectual  property and
other assets  associated with the IBEX therapeutic  enzyme drug products,  GBL's
ownership of BioMarin's outstanding stock on December 31, 2001 was 21.7%.

Since our inception,  we have incurred a cumulative deficit of $55.8 million and
we expect to continue to incur  losses due to our share of  BioMarin's  net loss
resulting from the ongoing research and development of BioMarin's pharmaceutical
product  candidates  through the second  quarter of 2002 (up until the  proposed
purchase  of us by  BioMarin  discussed  in Footnote  8).  Accordingly,  without
further investment in other companies or technologies,  management believes that
GBL has  sufficient  cash to  sustain  planned  operations  for the  foreseeable
future.

2.      Summary of Significant Accounting Policies

The accompanying  financial  statements and related footnotes have been prepared
in conformity with U.S.  generally  accepted  accounting  principles  using U.S.
dollars as  substantially  all of the Company's  operations  were located in the
United States.  The financial  statements include the accounts and operations of
the Company and Glyko,  Inc for the period from January 1, 1998 through  October
7,  1998,  the date of the sale of  Glyko,  Inc.  All  significant  intercompany
accounts and transactions have been eliminated.  BioMarin's consolidated results
of operations have been reported in the accompanying  financial statements based
on the equity method of  accounting.  The results of operations of BioMarin have
been reported in the Company's financial statements for the years ended December
31, 2001, 2000 and 1999, based on the equity method of accounting. Subsequent to
October 7, 1998, the results of operations of Glyko, Inc. have been consolidated
into the results of operations of BioMarin.

        Use of Estimates:

The  preparation of the Company's  financial  statements in conformity with U.S.
generally accepted  accounting  principles  requires  management to make certain
estimates  and  assumptions  that  effect  the  reported  amounts  of assets and
liabilities and the disclosure of contingent assets and liabilities at the dates
of the financial  statements  and the reported  amounts of revenues and expenses
during the reporting periods. Actual results could differ from those estimates.

       Cash and Cash Equivalents:

Cash and cash  equivalents  consist  of amounts  held with banks and  short-term
investments with original maturities of less than three months when purchased.

       Short-term Investments:

GBL records its investments as  held-to-maturity.  Short-term  investments  were
recorded at cost at December 31, 2000,  which  approximated  fair market  value.
These securities were comprised  mainly of A1/P1 grade  commercial  paper. As of
December 31, 2001, there are no short-term investments.

                                       F7
<PAGE>
                              GLYKO BIOMEDICAL LTD.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

       Sale of Glyko, Inc. and Investment in BioMarin Pharmaceutical Inc.:

BioMarin  acquired  Glyko,  Inc. from GBL through the exchange of BioMarin stock
for Glyko,  Inc.  stock and  accounted for the  acquisition  based upon the fair
market  value of the  BioMarin  stock  issued.  In  consolidating  Glyko,  Inc.,
BioMarin recorded intangible assets,  including goodwill, to the extent that the
fair market  value of the stock  issued  exceeded  the fair market  value of the
tangible  assets  of  Glyko,  Inc.  acquired.  However,  as  GBL  exchanged  one
investment  for  another,  it  recorded  the stock of  BioMarin  received at the
historical  cost  basis  of its  investment  in  Glyko.  GBL  accounts  for  its
investment in BioMarin using the equity method of accounting.  However, GBL does
not  record  its  share  of the  losses  recorded  by  BioMarin  related  to the
amortization of intangible assets recorded in connection with the acquisition of
Glyko. For the years ended December 31, 2000 and 2001, BioMarin recoded a charge
to operations for the  amortization of goodwill and other  intangible  assets of
$1.6 million and $1.2 million,  respectively. In February 2002, BioMarin decided
to close the  carbohydrate  analytical  business  portion of Glyko,  Inc., which
provided all of Glyko, Inc.'s revenues. Accordingly,  BioMarin recorded a Glyko,
Inc.  closure  expense of $7.9 million in the 2001  consolidated  statements  of
operations. This charge consisted primarily of an impairment reserve against the
unamortized  balance of  goodwill  and other  intangible  assets  related to the
acquisition of Glyko, Inc.

In  addition,  to the extent  that the  issuance  of stock by  BioMarin to third
parties  results  in a change in the  Company's  ownership  interest  in the net
assets of BioMarin,  the Company reflects this change in its paid-in capital and
its investment in BioMarin.  The Company  recorded an increase to its additional
paid-in capital of  approximately  $30.6 million and $1.4 million as a result of
its share in BioMarin funds raised by third parties for the years ended December
31, 2001 and 2000, respectively.

       Foreign Exchange:

As  substantially  all of the  Company's  operations  are  located in the United
States, the Company has adopted the U.S. dollar as its functional  currency.  In
accordance  with  Statement of Financial  Accounting  Standard No. 52,  "Foreign
Currency  Translation",  any  assets  and  liabilities  denominated  in  foreign
currency  are  translated  into U.S.  dollars at the  current  rate of  exchange
existing at year end and revenues and  expenses  are  translated  at the average
monthly exchange rates.  Transaction gains and losses included in the statements
of operations are not material.

       Net Loss per Share:

Potentially dilutive securities outstanding at December 31, 2001, 2000 and 1999,
respectively,  include  options for the  purchase  of 45,000,  7,750 and 291,000
shares of common  stock and  warrants  for the  purchase  of zero,  zero and 2.2
million  shares of common stock.  These  securities  were not  considered in the
computation   of  dilutive   loss  per  share  because  their  effect  would  be
anti-dilutive for the years ended December 31, 2001, 2000 and 1999.

3.      New Accounting Pronouncements

       SFAS 141 and 142:

On June 29, 2001, the Financial  Accounting  Standards Board (FASB) approved for
issuance  Statement of Financial  Accounting  Standards (SFAS) No. 141, Business
Combinations, and SFAS No. 142, Goodwill and Intangible Assets. Major provisions
of these Statements are as follows:  all business  combinations  initiated after
June 30,  2001  must use the  purchase  method of  accounting;  the  pooling  of
interests method of accounting is prohibited  except for transactions  initiated
before July 1, 2001;  intangible assets acquired in a business  combination must
be recorded  separately  from goodwill if they arise from  contractual  or other
legal  rights  or are  separable  from  the  acquired  entity  and can be  sold,
transferred,  licensed, rented or exchanged, either individually or as part of a
related contract,  asset or liability; all acquired goodwill must be assigned to
reporting  units for  purposes of  impairment  testing  and  segment  reporting;
effective January 1, 2002,  goodwill and intangible assets with indefinite lives
will not be amortized but will be tested for  impairment  annually  using a fair
value  approach,  except in  certain  circumstances,  and  whenever  there is an
impairment  indicator;  other  intangible  assets will continue to be valued and
amortized  over their  estimated  lives;  in-process  research  and  development
acquired in business  combinations  will continue to be written off immediately;
goodwill arising between June 29, 2001 and December 31, 2001 will not be subject
to  amortization.  Management  is  currently  assessing  the  impact  of the new
standards. The adoption of SFAS No. 142 in January 2002 will not have a material
impact on the Company's financial statements.

       SFAS 143:

In June 2001, the FASB approved for issuance SFAS No. 143, "Accounting for Asset
Retirement  Obligations."  SFAS  No.  143  requires  that  the  fair  value of a
liability  for an asset  retirement  obligation  be  recognized in the period in
which  it is  incurred  and  that  the  associated  asset  retirement  costs  be
capitalized as part of the carrying value of the related  long-lived asset. SFAS
No. 143 will be effective  January 1, 2002 for GBL.  Management  does not expect
this standard to have a material impact on GBL's  financial  position or results
of operations.

                                       F8
<PAGE>
                              GLYKO BIOMEDICAL LTD.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

       SFAS 144:

In August 2001, the FASB approved for issuance SFAS No. 144, "Accounting for the
Impairment  or  Disposal  of  Long-Lived  Assets."  SFAS No.  144  broadens  the
presentation  of  discontinued  operations  to  include  more  transactions  and
eliminates the need to accrue for future operating  losses.  Additionally,  SFAS
No. 144 prohibits the retroactive  classification of assets as held for sale and
requires  revisions  to  the  depreciable  lives  of  long-lived  assets  to  be
abandoned.  SFAS No. 144 will be effective  January 1, 2002 for GBL.  Management
does not  expect  this  standard  to have a material  impact on GBL's  financial
position or results of operations.  During the year ended December 31, 1999, the
Company adopted SFAS No. 131,  "Disclosures  about Segments of an Enterprise and
Related  Information".  The  Company  concluded  that it has only one  operating
segment.

4.     Income Taxes

In connection with the sale of Glyko,  Inc., the U.S.  federal and state net tax
operating  loss   carryforwards  and  the  related  valuation   allowances  were
consolidated into the financial statements of BioMarin.

At December 31,  2001,  the Company has net  operating  loss  carryforwards  for
Canadian  income tax  purposes of  approximately  $1.7  million,  which began to
expire in 2000.  A valuation  allowance is placed on the net deferred tax assets
to reduce them to an assumed net realizable value of zero.

5.        Note Receivable

In November 1998, per the terms of the BioMarin  acquisition of Glyko, Inc., GBL
loaned $712,261 to an officer of the Company to exercise expiring stock options.
The loan  matured in May 2001 and the note plus  accrued  interest was repaid in
the third quarter of 2001.

6.        Common Share Option Plan

The Company  has a common  share  option plan (the Plan) under which  options to
purchase  common stock may be granted by the Board of  Directors  to  directors,
officers, consultants and key employees at not less than fair market value, less
any permissible discounts,  on the date of grant. . Options are exercisable over
a number of years  specified at the time of the grant,  which cannot  exceed ten
years. The maximum aggregate number of shares that may be granted and sold under
the Plan is 3 million shares.

The  Company  accounts  for the Plan  such  that no  compensation  cost has been
recognized, except for options granted to consultants, because, under the Option
Plan, the option  exercise price equals the market value of stock on the date of
grant.  In general,  the Plan options vest over 48 months and all options expire
after 5 years or 90 days after employee termination.

                                       F9
<PAGE>


                              GLYKO BIOMEDICAL LTD.
                          NOTES TO FINANCIAL STATEMENTS

Had  compensation  cost  for the  Plan  been  determined  consistent  with  FASB
Statement  No. 123,  the  Company's  net loss would have been  increased  to the
following pro forma amounts:

<TABLE>
<S>                   <C>                 <C>                  <C>                   <C>


                                              2001                  2000                 1999
                                              ----                  ----                 ----
Net loss              As reported         $(15,094,851)        $(11,635,341)         $(10,039,531)
                      Pro forma            (15,264,594)
                                                                (11,829,182)          (10,324,435)

Net loss per          As reported            $(0.44)              $(0.34)               $(0.32)
  common share        Pro forma               (0.44)               (0.35)                (0.33)

</TABLE>
The fair value of each option  granted is  estimated  on the date of grant using
the  Black-Scholes  option  pricing  model with the  following  weighted-average
assumptions used for grants in 2001 and 2000,  respectively:  risk-free weighted
average  interest  rates  of 4.9%  and  5.8%;  expected  dividend  yield of zero
percent; expected life of 4 years for the Plans' options; expected volatility of
78% and 193%.

Because the Statement  123 method of accounting  has not been applied to options
granted prior to January 1, 1995, the resulting pro forma  compensation cost may
not be representative of that to be expected in future years.

A summary of the status of the Company's  Plan at December 31, 2001 and 2000 and
changes  during  the years then ended is  presented  in the table and  narrative
below:

<TABLE>
<S>                              <C>              <C>              <C>              <C>

                                                             2001 2000
                                     Shares        Wtd. Avg. ex        Shares       Wtd. Avg. ex
                                                     price (1)                          price
                                 ---------------- ---------------- ---------------- --------------
Outstanding beginning
   of year                                 7,750     Cdn.$5.85             291,000    Cdn.$1.24
Granted                                   45,000     Cdn.$4.50              30,000    Cdn.$5.70
Exercised                                    Nil                         (299,500)    Cdn.$1.37
Canceled                                 (7,750)     Cdn.$5.85            (13,750)    Cdn.$5.70
                                 ----------------                  ----------------
Outstanding at end of
    Year                                  45,000     Cdn.$4.50               7,750    Cdn.$5.85
                                 ================                  ================
                                 ================                  ================

Exercisable at end of year                45,000                             7,750
                                 ================                  ================
                                 ================                  ================

</TABLE>

(1) The US$ equivalent of Canadian $1.00 at December 31, 2001 was  approximately
$0.6287.

There are 857,324  options  available  for grant under the plan at December  31,
2001.  The average  remaining  contractual  life of the options  outstanding  at
December 31, 2001 is 3 years.

                                      F10
<PAGE>

                              GLYKO BIOMEDICAL LTD.
                          NOTES TO FINANCIAL STATEMENTS


7.     Related Party Transactions

For the year  ended  December  31,  2001 and 2000,  we paid legal fees to Blake,
Cassels  and  Graydon  LLP in which two of our  directors,  Mr.  Kolada  and Mr.
Trossman are  partners.  During the years ended  December 31, 2001 and 2000,  we
incurred  expenses of $248,483  and  $142,208,  respectively,  payable to Blake,
Cassels and Graydon LLP, relating to general corporate services and, with
respect to legal fees paid for the year ended December 31, 2001, expenses
incurred also related to the transaction with BioMarin that has been discussed
herein.

Since October 8, 1998, we have agreed to pay BioMarin a monthly  management  and
reporting  fee  for  its  services  to  us  primarily  relating  to  management,
accounting,  finance and government reporting.  BioMarin had accrued receivables
relating to these  services  of zero and $9,000 at  December  31, 2001 and 2000,
respectively.

Mr. Sager is entitled to receive Cdn.$1,500.00 per month in connection with fees
and expenses  incurred as the Company's  President and Chief Executive  Officer,
which  entitlement  commenced  in June  2000.  Mr.  Sager  received  a lump  sum
pre-payment  of  approximately  Cdn.$42,300  in late  2000  for  these  fees and
expenses. As a result, as of February 2002, Mr. Sager has an outstanding prepaid
balance of Cdn.$10,800.

8.        Subsequent Events (unaudited)


In  December  2001,   BioMarin  signed  a  definitive   agreement  with  Synapse
Technologies  Inc. (a  privately  held  Canadian  company) to acquire all of its
outstanding  capital stock for  approximately  $10.2 million in BioMarin  common
stock plus future contingent  milestone  payments totaling $6 million payable in
cash or common stock at BioMarin's discretion. BioMarin will issue approximately
885,000  shares  of common  stock  for the  purchase.  The  acquisition  will be
recorded upon closing in the first quarter of 2002 using the purchase  method of
accounting.  All of the  purchase  price  along with  related  expenses  will be
expensed as in-process research and development costs.

On February 7, 2002, we signed a definitive  agreement with BioMarin to sell all
of our  outstanding  capital  stock in exchange for  approximately  11.4 million
shares of freely tradable  BioMarin's common stock.  There will be no net effect
to BioMarin's outstanding common stock, as BioMarin plans to retire the existing
shares of its restricted common stock currently held by us upon closing.  If the
proposed  purchase by BioMarin is approved by  stockholders  of BioMarin and our
shareholders and relevant regulatory authorities,  we will become a wholly-owned
indirect  subsidiary  of BioMarin and will  concurrently  repatriate  to British
Columbia as a private company with no operations.

9.     Quarterly Financial Data (unaudited)

The Company's  quarterly  operating  results have fluctuated in the past and may
continue  to do so in the future as a result of a number of  factors  including,
but not limited to, our share of BioMarin's  net losses,  which could  fluctuate
due to the  completion  of  development  projects  and  variations  in levels of
production and our ownership  share of BioMarin due to BioMarin's sale of common
stock in the future.

The Company's common shares have been traded on the Toronto Stock Exchange since
1992.  There were 112 common  shareholders  of record at December 31,  2001.  No
dividends were paid for the years ended December 31, 2001 and, 2000.

<TABLE>

<S>                                     <C>             <C>             <C>              <C>

                                                                  Quarter Ended
                                        ------------------------------------------------------------------
                                       March 31,        June 30,      September 30,    December 31,
2001                                   ---------        --------      -------------    ------------
Total revenue                          $      -         $      -         $       -         $     -
Loss from operations                    (70,335)         (89,074)         (158,208)       (144,405)
Net loss                             (2,865,226)      (3,154,647)       (2,995,952)     (6,079,026)
Net loss per share, basic and diluted  $  (0.08)          $(0.09)           $(0.09)         $(0.18)

Common share price per share:
  High                                 $   5.70          $  6.45           $  7.00         $  7.00
  Low                                  $   3.80          $  3.85           $  3.75         $  3.75


                                                                  Quarter Ended
                                        ------------------------------------------------------------------
2000                                       March 31,        June 30,      September 30,    December 31,
                                           ---------        --------      -------------    ------------
Total revenue                            $         -        $     -         $     -        $       -
Loss from operations                         (52,605)       (80,226)       (150,500)        (105,002)
Net loss                                  (3,736,387)    (2,246,263)     (2,498,602)      (3,154,089)
Net loss per share, basic and diluted    $     (0.11)      $  (0.07)        $ (0.07)       $   (0.09)

Common share price per share:
  High                                   $     13.55       $   9.75         $  9.00        $    7.90
  Low                                    $      5.30       $   6.80         $  7.00        $    3.75


</TABLE>

                                      F11
<PAGE>


                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS




To the Stockholders of
BioMarin Pharmaceutical Inc.:

We have  audited  the  accompanying  consolidated  balance  sheets  of  BioMarin
Pharmaceutical  Inc.  (a  Delaware  corporation  in the  development  stage) and
Subsidiaries  as of  December  31, 2000 and 2001,  and the related  consolidated
statements of operations,  changes in stockholders'  equity,  and cash flows for
the years ended December 31, 1999,  2000, and 2001 and for the period from March
21, 1997  (inception) to December 31, 2001.  These financial  statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of BioMarin  Pharmaceutical  Inc.
and  Subsidiaries  as of  December  31,  2000 and 2001 and the  results of their
operations and their cash flows for the years ended December 31, 1999, 2000, and
2001 and for the period from March 21, 1997  (inception) to December 31, 2001 in
conformity with accounting principles generally accepted in the United States.

                               /s/ Arthur Andersen LLP


San Francisco, California
February 21, 2002


                                      F12
<PAGE>


                  BioMarin Pharmaceutical Inc. and Subsidiaries
                          (a development-stage company)

                        Consolidated Balance Sheets as of
                           December 31, 2000 and 2001

               (In thousands, except for share and per share data)
<TABLE>
<S>                                                          <C>                   <C>


                                                                            December 31,
                                                             -------------------------------------------
                                                                     2000                  2001
                                                             -------------------------------------------
Assets
Current assets:
 Cash and cash equivalents                                    $          16,530     $         12,528
 Short-term investments                                                  23,671              118,569
 Due from BioMarin/Genzyme LLC                                            1,799                3,096
 Current assets of discontinued operations of Glyko, Inc.                   918                  668
 Other current assets                                                     1,623                1,922
                                                             -------------------------------------------
  Total current assets                                                    44,541             136,783
Property and equipment, net                                               20,715              32,560
Investment in BioMarin/Genzyme LLC                                         1,482               1,145

Note receivable from officer                                                   -                 889
Non-current assets of discontinued operations of Glyko, Inc.               9,862                   -
Deposits                                                                     333                 434
                                                             -------------------------------------------
  Total assets                                                $           76,933    $        171,811
                                                             ===========================================

Liabilities and Stockholders' Equity
Current liabilities:
 Accounts payable                                             $            4,647    $          4,284
 Accrued liabilities                                                       1,951               2,198
 Current liabilities of discontinued operations of Glyko,
 Inc.                                                                        258                 229
 Current portion of capital lease obligations                                  -                  66
 Short term portion of notes payable                                          27               1,525
                                                             -------------------------------------------
  Total current liabilities                                                6,883               8,302
Long-term liabilities:
 Long term portion of notes payable                                           56               3,864
 Long term portion capital lease obligations                                   -                  97
                                                             -------------------------------------------
  Total liabilities                                                        6,939              12,263
                                                             -------------------------------------------
Commitments and contingencies (note 8) Stockholders' equity:
 Common stock, $0.001 par value: 75,000,000 shares
    authorized, 36,946,966 and 52,402,355 shares
    issued and outstanding at December 31, 2000
    and 2001, respectively                                                    37                  52
 Additional paid-in capital                                              153,940             305,230
 Warrants                                                                      -               5,134
 Deferred compensation                                                    (1,530)               (699)
 Notes receivable from stockholders                                       (1,940)             (2,037)
 Foreign currency translation adjustment                                       -                 (13)
 Deficit accumulated during the development stage                        (80,513)           (148,119)
                                                             -------------------------------------------
  Total stockholders' equity                                              69,994             159,548
                                                             -------------------------------------------
  Total liabilities and stockholders' equity                  $           76,933     $       171,811
                                                             ===========================================
</TABLE>


        The accompanying notes are an integral part of these statements.

                                      F13
<PAGE>

                  BioMarin Pharmaceutical Inc. and Subsidiaries
                          (a development-stage company)

                    Consolidated Statements of Operations for
            the Years Ended December 31, 1999, 2000 and 2001 and for
         the Period from March 21, 1997 (inception) to December 31, 2001

                      (In thousands, except per share data)
<TABLE>
<S>                                                  <C>              <C>              <C>            <C>


                                                                                                       Period from
                                                                                                       March 21, 1997
                                                                                                      (inception) to
                                                               December 31,                             December 31,
                                                     ------------------------------------------------
                                                          1999            2000             2001              2001
                                                     ---------------  --------------   --------------  ------------------
Revenues:
      BioMarin/Genzyme LLC                                 $ 5,300         $ 9,731         $ 11,330        $ 27,215
      Other revenues                                             -               -              369             369
                                                     ---------------  --------------   --------------  ------------------
            Total revenues                                   5,300           9,731           11,699          27,567

Operating costs and expenses:
      Research and development                              26,341          34,459           45,283         118,283
      Selling, general and administrative                    4,757           6,507            6,718          22,044
      In-process research and development                        -               -           11,647          11,647
      Carson Street closure                                      -           4,423                -           4,423
                                                     ---------------  --------------   --------------  ------------------
            Total operating costs and expenses              31,098          45,389           63,648         156,397
                                                     ---------------  --------------   --------------  ------------------
             Loss from operations                          (25,798)        (35,675)         (51,949)       (128,830)

Interest income                                              1,832           2,979            1,871           7,432
Interest expense                                              (732)             (7)             (17)           (756)
Equity in loss of BioMarin/Genzyme LLC                      (1,673)         (2,912)          (7,333)        (11,965)
                                                     ---------------  --------------   --------------  ------------------
            Net loss from continuing operations          $ (26,371)      $ (35,615)       $ (57,428)     $ (134,119)
Loss from discontinuing operations                          (1,701)         (1,749)          (2,266)         (6,088)
Loss from disposal of discontinued operations                    -               -           (7,912)         (7,912)
                                                     ---------------  --------------   --------------  ------------------
            Net loss                                     $ (28,072)      $ (37,364)       $ (67,606)     $ (148,119)
                                                     ===============  ==============   ==============  ==================
Net loss per share, basic and diluted
  Loss from continuing operations                        $   (0.88)      $   (0.99)       $   (1.40)     $    (4.72)
                                                     ===============  ==============   ==============  ==================
  Loss from discontinued operations                       $   (0.06)      $  (0.05)       $   (0.06)     $    (0.22)
                                                     ===============  ==============   ==============  ==================
  Loss on disposal of discontinued operations            $       -       $       -        $   (0.19)     $    (0.28)
                                                     ===============  ==============   ==============  ==================
  Net Loss                                               $   (0.94)      $   (1.04)       $   (1.65)     $    (5.22)
                                                     ===============  ==============   ==============  ==================
Weighted average common shares outstanding                  29,944          35,859           41,083          28,391
                                                    ===============  ==============   ==============  ==================

</TABLE>

        The accompanying notes are an integral part of these statements.

                                      F14
<PAGE>
                  BioMarin Pharmaceutical Inc. and Subsidiaries
                          (a development stage company)
       Consolidated Statements of Changes in Stockholders' Equity for the
                  Years ended December 31, 1999, 2000 and 2001

                      (In thousands, except per share data)

<TABLE>

                                                                                                           Deficit
                                                                                          Note    Foreign  Accumulated
                                                      Additional                      Receivable  Currency During         Total
                                         Common Stock   Paid-in   Warrants Deferred      from     Trans-   Development Stockholders'
                                        Shares Amount  Capital    Amount    Comp.     Stockholder lation   Stage       Equity
                                        ------ ------ ----------  -------  --------- ------------ -------- ----------- -------------
<S>                                     <C>    <C>     <C>        <C>      <C>       <C>          <C>      <C>         <C>
Balance at January 1, 2001              36,947    $37   $153,940       -    $(1,530)    $ (1,940)   $   -   $ (80,513)  $    69,994
 Issuance of common stock under ESPP
 on April 30 and October 31, 2001 at
 $9.22 and $9.51 per share,
 respectively                               35      -        288       -          -            -        -           -           288

 Issuance of 1,345 shares of common stock
 to Acqua Wellington for cash in five
 transactions priced from $9.60 to $10.16
 per share net of issuance costs         1,344      1     13,163       -          -            -        -           -        13,164

 Issuance of 4,870 shares of common stock
 and warrants to purchase 753 shares of
 common stock on May 16 and 17, 2001 at
 $9.45 per share, net of issuance costs  4,870      5     37,507   5,134          -            -        -           -        42,646

 Issuance of 814 shares of common stock
 on October 31, 2001 at $10.218 per share
 to purchase certain therapeutic assets
 of IBEX                                   814      1      8,323       -          -            -        -           -         8,324

 Issuance of stock options on October 31,
 2001 in connection with the IBEX
 acquisition                                 -      -        291       -          -            -        -           -           291

 Issuance of 8,050 shares of common stock
 on December 13, 2001 in a public offering
 at $12 per share net of issuance costs  8,050      8     90,363       -          -            -        -           -        90,371

Exercise of common stock options           342      -      1,258       -          -            -        -           -         1,258

Interest accrued on notes receivable         -      -         97       -          -          (97)       -           -             -

Foreign currency translation                 -      -          -       -          -            -      (13)          -           (13)

Amortization of deferred compensation        -      -          -       -        831            -        -           -           831

Net loss                                     -      -          -       -          -            -        -     (67,606)      (67,606)
                                        ------  ------   --------  ------  --------    --------- -------    ----------     ---------
Balance at December 31, 2001            52,402   $ 52   $305,230  $5,134      $(699)     $(2,037)   $ (13)  $(148,119)     $159,548
                                        ======  ======   ========  ======  ========    ========= =======    ==========     =========

                                                    The accompanying notes are an integral part of these statements.
</TABLE>

                                       F15
<PAGE>


                  BioMarin Pharmaceutical Inc. and Subsidiaries
                          (a development stage company)
       Consolidated Statements of Changes in Stockholders' Equity for the
                  Years ended December 31, 1999, 2000 and 2001

                      (In thousands, except per share data)

<TABLE>

                                                                                                                   Deficit
                                                                                               Note              Accumulated
                                                     Additional                          Receivable   Foreign      During    Total
                                      Common Stock    Paid-in      Warrants     Deferred   from       Currency   Development  SH's
                                     Shares   Amount  Capital   Shares  Amount   Comp.  Stockholder  Translation    Stage    Equity
                                     ------   ------  -------   ------  ------  ------  ------------ ----------- ----------- ------
<S>                                  <C>       <C>    <C>        <C>    <C>     <C>       <C>        <C>            <C>      <C>
Balance at January 1, 2000           34,832    $35   $146,592   802    $128    $(2,591)  $ (2,638)  $        -    (43,149)   $98,377
 Issuance of common stock on April 30,
  2000 pursuant to the Employee Stock
  Purchase Plan at $11.05 per share      18      -        199     -       -          -          -             -         -       199

 Issuance of common stock on October 31,
  2000 pursuant to the Employee Stock
  Purchase Plan at $11.05 per share      10      -        115     -       -          -           -            -         -       115

 Exercise of common stock options     1,301       1     5,674     -      -          -           -           -          -      5,675

 Exercise of common stock warrants      802       1       929  (802)  (128)         -           -           -          -        802

 Common stock surrendered by stockholders
  for payment of principal and interest (41)      -      (170)     -      -          -         170           -          -         -

 Repayment of notes from stockholders     -       -         -      -      -          -         804           -          -       804

 Interest on notes receivable             -       -       276      -      -          -        (276)          -          -         -

 Amortization of deferred compensation    -       -         -      -      -        1,386       -             -          -     1,386

 Deferred compensation related to stock and
  option issuances, net of terminations  25       -       325      -      -         (325)     -              -          -         -

Net loss                                  -       -         -      -      -            -      -              -    (37,364)  (37,364)
                                      ------   ------  --------   ------ ------   --------   ---------  --------- ---------  -------
Balance at December 31, 2000          36,947   $ 37    $153,940      -    $ -     $(1,530)   $(1,940)   $    -   $(80,513)  $69,994
                                      ======   ====== =========  ====== ======   =========  =========  =========  =========  =======

                                                    The accompanying notes are an integral part of these statements.
</TABLE>

                                       F16
<PAGE>

                  BioMarin Pharmaceutical Inc. and Subsidiaries
                          (a development stage company)

       Consolidated Statements of Changes in Stockholders' Equity for the
                  Years ended December 31, 1999, 2000 and 2001

                      (In thousands, except per share data)

<TABLE>
                                                                                                                 Deficit
                                                                                                    Notes       Accumulated
                                                              Additional                           Receivable    During       Total
                                           Common   Stock      Paid-in      Warrants     Deferred    from      Development     SH's
                                           Shares   Amount     Capital   Shares   Amount   Comp.  Stockholders    Stage      Equity
                                           ------   ------     -------   ------   ------  ------  ------------  -------     --------

<S>                                        <C>        <C>      <C>         <C>    <C>     <C>        <C>        <C>        <C>
Balance, January 1, 1999...............    26,176     $ 26     $ 50,058    802    $ 128   $(3,253)   $(2,488)   $(15,077)  $ 29,394
 Issuance of common  stock on July 23,
  1999, in an initial  public  offering
  (IPO) for cash at $13.00 per share
  (net of issuance costs of $7) ........    4,500        4       51,805     --       --        --         --          --     51,809

 Issuance of common stock on July 23,
  1999 to Genzyme Corporation in a
  private placement concurrent with the
  IPO for cash at $13.00 per share.....       769        1        9,999     --       --        --         --          --     10,000

 Issuance  of  common  stock  on July  23,
  1999  concurrent  with the IPO upon con-
  version of promissory  notes plus accrued
  interest of $720 at $10.00 per share
  (net of issuance costs of $1).......      2,672        3       25,612     --       --        --         --          --     25,615

 Issuance of common  stock on August  3,
  1999 and  August  25,  1999 from the over-
  allotment exercise by underwriters at
  $13.00 per share (net of issuance costs
  of $1)........................              675        1        8,141     --       --        --         --          --      8,142

 Exercise of common stock options.......       40       --          148     --       --        --         --          --        148

 Interest on notes receivable from
  stockholders..........................       --       --          150     --       --        --       (150)         --         --

 Deferred compensation related to stock
  options..............................        --       --          679     --       --      (679)        --          --         --
 Amortization of deferred compensation.        --       --           --     --       --     1,341         --          --      1,341
 Net loss...............................       --       --           --     --       --        --         --     (28,072)   (28,072)
                                           ------   ------     -------   ------   ------  ------  ------------  -------     --------
Balance, December 31, 1999..............   34,832     $ 35     $146,592    802    $ 128   $(2,591)   $(2,638)   $(43,149)   $ 98,377
                                           ======   ======    =========  ======  ======   =========  =========  =========   ========

                                   The accompanying notes are an integral part of these statements.

</TABLE>
                                       F17
<PAGE>



                 BioMarin Pharmaceutical Inc. and Subsidiaries
                         (a development-stage company)
                     Consolidated Statements of Cash Flows
            the Years Ended December 31, 1999, 2000 and 2001 and for
        the Period from March 21, 1997 (inception) to December 31, 2001
                                 (In thousands)
<TABLE>
<S>                                        <C>               <C>                 <C>              <C>

                                                                                                  March 21, 1997
                                                                                                 (inception) to
                                                             December 31,                          December 31,
                                              1999               2000               2001               2001
                                           ----------        ------------        ----------       --------------
Cash flows from operating activities:
 Net loss from continuing operations       $  (26,371)        $  (35,615)        $  (57,428)      $   (134,119)
 Adjustments to reconcile net loss to net
  cash used in operating activities:
  In-process research and development               -                  -             11,647             11,647
  Facility closure                                  -              3,791                  -              3,791
  Depreciation                                  4,074              4,347              6,173             14,907
  Amortization                                  1,341              1,386                831              3,761
  Loss from BioMarin/Genzyme LLC                6,973             12,635             18,509             38,164
 Changes in operating assets and liabilities:
  Due from BioMarin/Genzyme LLC                  (861)              (519)            (1,297)            (3,096)
  Other current assets                            383               (720)              (299)            (1,266)
  Note receivable from officer                      -                  -               (889)              (889)
  Deposits                                        (72)              (182)              (101)              (434)
  Accounts payable                              1,754              1,552               (363)             4,383
  Accrued liabilities                           1,326                148                247              2,519
                                           ----------        ------------        ----------       --------------
  Net cash used in continuing operations      (11,453)           (13,177)           (22,970)           (60,632)
  Net cash provided by (used in) discontinued
    operations                                 (1,487)               444                (95)               749
                                           ----------        ------------        ----------       --------------
    Net cash used in operating activities     (12,940)           (12,733)           (23,065)           (59,883)
                                           ==========        ============        ==========       ==============
Cash flows from investing activities:
 Purchase of property and equipment           (22,944)            (3,760)           (17,812)           (51,051)
 Investment in BioMarin/Genzyme LLC            (6,709)           (13,696)           (18,172)           (39,309)
 Purchase of IBEX therapeutic assets                -                  -             (3,032)            (3,032)
 Purchase (sale) of short-term investments    (37,597)            15,902            (94,898)          (118,569)
                                           ----------        ------------        ----------       --------------
  Net cash used in continuing operations      (67,250)            (1,554)          (133,914)          (211,961)
  Net cash used in discontinued operations     (1,500)              (163)                 -             (1,663)
                                           ----------        ------------        ----------       --------------
    Net cash used in investing activities     (68,750)            (1,717)          (133,914)          (213,624)
                                           ----------        ------------        ----------       --------------
Cash flow from financing activities:
 Net proceeds from sale of common stock, net   69,951                  -            133,017            232,823
 Proceeds from issuance of convertible notes   25,615                  -                  -             25,615
 Net proceeds from Acqua Wellington agreement       -                  -             13,163             13,163
 Proceeds from exercise of common
  stock options and warrants                      148              6,477              1,258              7,695
 Net proceeds from notes payable                    -                  -              5,505              5,639
 Repayment of notes payable                       (24)               (28)              (198)              (250)
 Repayment of capital lease obligations             -                  -                (43)               (43)
 Receipts from notes receivable from stockholders   -                804                  -                804
 Issuance of common stock for ESPP, and other       -                314                288                602
                                           ----------        ------------        ----------       --------------
    Net cash provided by financing
     activities                                95,690              7,567            152,990            286,048
                                           ----------        ------------        ----------       --------------
Effect of foreign currency translation on cash      -                  -                (13)               (13)
                                           ----------        ------------        ----------       --------------
    Net increase (decrease) in cash            14,000             (6,883)            (4,002)            12,528

Cash and cash equivalents:
 Beginning of period                            9,413             23,413             16,530                  -
                                           ----------        ------------        ----------       --------------
 End of period                             $   23,413         $   16,530          $  12,528        $    12,528
                                           ==========        ============        ==========       ==============

</TABLE>

        The accompanying notes are an integral part of these statements

                                      F18
<PAGE>
                  BioMarin Pharmaceutical Inc. and Subsidiaries
                          (a development-stage company)

                   Notes to Consolidated Financial Statements


1.   NATURE OF OPERATIONS AND BUSINESS RISKS:


BioMarin  Pharmaceutical  Inc. (the Company or BioMarin) is a  biopharmaceutical
company  specializing  in the development of enzyme  therapies for  debilitating
life-threatening  chronic  genetic  diseases and other diseases and  conditions.
Since March 21, 1997 (inception),  the Company has devoted  substantially all of
its  efforts to  research  and  development  activities,  including  preclinical
studies and clinical  trials,  the  establishment  of  laboratory,  clinical and
commercial  manufacturing  facilities,   clinical  manufacturing,   and  related
administrative activities.

The Company was  incorporated  on October 25, 1996 in the state of Delaware  and
first began business on March 21, 1997 (inception) as a wholly-owned  subsidiary
of Glyko  Biomedical  Ltd.  (GBL).  Subsequently,  BioMarin  has issued stock to
outside  investors in a series of transactions,  resulting in GBL's ownership of
BioMarin's  outstanding common stock being reduced to 22 percent at December 31,
2001.

On October 7, 1998, the Company acquired Glyko, Inc., a wholly-owned  subsidiary
of GBL, in a transaction valued at $14.5 million.  The transaction was accounted
for as a purchase and resulted in Glyko, Inc. becoming a wholly-owned subsidiary
of the  Company.  Glyko,  Inc.  provides  products  and  services  that  perform
sophisticated  carbohydrate  analysis for research  institutions  and commercial
laboratories.

In February  2002,  the  Company  decided to close the  carbohydrate  analytical
business  portion of Glyko,  Inc. which provided all of Glyko,  Inc.'s revenues.
Accordingly,  the Company recorded a Glyko, Inc. closure expense of $7.9 million
in the  2001  consolidated  statements  of  operations.  This  charge  consisted
primarily of an impairment  reserve against the unamortized  balance of goodwill
and other  intangible  assets  related to the  acquisition  of Glyko,  Inc.  The
majority of the Glyko,  Inc.  employees will be  incorporated  into the BioMarin
business and such  employees  will  continue to provide  necessary  analytic and
diagnostic support to the Company's therapeutic products.

The net  loss of  Glyko,  Inc.'s  operations  is  included  in the  accompanying
consolidated  statements  of operations  as loss from  discontinued  operations.
Revenues from Glyko,  Inc. for the years ended December 31, 1999,  2000 and 2001
and the period from March 21, 1997  (inception)  to December  31, 2001 were $1.6
million, $2.6 million, $2.7 million and $7.0 million respectively.

In September 2001, the Company formed BioMarin  Enzymes,  Inc. as a wholly-owned
subsidiary  incorporated  in Delaware  and BioMarin  Pharmaceutical  Nova Scotia
Company, an unlimited liability company formed in Nova Scotia and a wholly-owned
subsidiary of BioMarin  Enzymes,  Inc. Both entities were formed to purchase the
therapeutic assets of IBEX Technologies Inc. and its subsidiaries on October 31,
2001.

On October 31, 2001,  the Company  purchased from IBEX  Technologies  Inc. (TSE:
IBT) and its subsidiaries the intellectual  property and other assets associated
with the IBEX  therapeutic  enzyme drug  products  (including  NeutralaseTM  and
PhenylaseTM)  for  $10.4  million,  consisting  of $2  million  in cash and $8.4
million in BioMarin common stock at $10.218 per share (814,647 shares). See also
Note 3.

Through  December  31,  2001,  the Company  had  accumulated  losses  during its
development  stage of  approximately  $148.1  million.  Based on current  plans,
management  expects to incur further  losses at least  through 2003.  Management
believes that the Company's  cash, cash  equivalents  and short-term  investment
balances  at  December  31,  2001  will  be  sufficient  to meet  the  Company's
obligations through the end of 2003.

                                      F19
<PAGE>


Business Risks - The Company is exposed to the following risks:

   o     There can be no assurance that the Company's research and development
         efforts will be successfully completed or that its product candidates
         will be shown to be safe and effective.

   o     Certain of the Company's product candidates rely on proprietary
         technology and patents owned by certain universities and other
         institutions and licensed to BioMarin. These universities also provide
         research and development services. Cessation of relationships with
         these universities could significantly affect the Company's future
         operations.

   o     In order to grow significantly, the Company must expand its efforts to
         develop new products in pharmaceutical applications. The Company will
         also need to enhance manufacturing capabilities, to develop marketing
         capabilities, and/or enter into collaborative arrangements with third
         parties having the capacity for such manufacturing or marketing.

   o     There can be no assurance that any of the Company's current or future
         product candidates will be successfully developed, prove to be
         effective in clinical trials, receive required regulatory approvals, be
         capable of being produced in commercial quantities at reasonable costs,
         gain reasonable reimbursement levels, or be successfully marketed.

In addition, the Company is subject to a number of risks, including the need for
additional  financing,  dependence on key personnel,  small patient populations,
patent protection, significant competition from larger organizations, dependence
on  corporate   partners  and  collaborators,   and  expected   restrictions  on
reimbursement, as well as other changes in the healthcare industry.


2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of  Presentation - These  consolidated  financial  statements  include the
accounts of BioMarin and its wholly-owned  subsidiaries:  Glyko, Inc.,  BioMarin
Enzymes,  Inc.,  BioMarin   Pharmaceutical  Nova  Scotia  Company  and  BioMarin
Genetics, Inc. All significant intercompany transactions have been eliminated.

Discontinued  Operations - The decision to close Glyko, Inc. has resulted in the
operations  of Glyko Inc.  being  classified as  discontinued  operations in the
accompanying consolidated financial statements and, accordingly, the Company has
segregated  the assets and  liabilities  of the  discontinued  operations in the
accompanying  consolidated  balance  sheets as of December 31, 2000 and 2001. In
addition,  the Company has segregated the operating  results in the accompanying
consolidated  statements  of operations  for the years ended  December 31, 1999,
2000 and 2001 and for the period from March 21, 1997 (inception) to December 31,
2001;  and  has  segregated  cash  flows  from  discontinued  operations  in the
accompanying  consolidated  statements of cash flows for the same  periods.  The
notes  to  the  accompanying   consolidated  financial  statements  reflect  the
classification of Glyko Inc. operations as discontinued operations.

The loss on disposal of  discontinued  operations  included in the  accompanying
consolidated  statement of operations reflects certain  adjustments  required at
December  31,  2001  primarily  to  record an  impairment  reserve  against  the
unamortized goodwill related to Glyko, Inc. of approximately $7.8 million.

Concentration  of  Credit  Risk -  Financial  instruments  that may  potentially
subject the Company to concentration of credit risk consist principally of cash,
cash equivalents,  and short-term investments.  All cash, cash equivalents,  and
short-term  investments are placed in financial  institutions with strong credit
ratings, which minimizes the risk of loss due to nonpayment. The Company has not
experienced any losses due to credit  impairment or other factors related to its
financial instruments.

Use of  Estimates--The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles  requires  management to make certain
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities, disclosure of contingent assets and liabilities at the dates of the
financial  statements,  and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.

Cash and Cash  Equivalents--For  the consolidated  statements of cash flows, the
Company treats liquid  investments  with original  maturities of less than three
months when purchased as cash and cash equivalents.

Short-Term Investments--The Company records its investments as held-to-maturity.
These  investments  are recorded at amortized  cost at December 31, 2001.  These
securities are comprised mainly of Federal Agency investments,  commercial paper
and bank certificates of deposit.

                                      F20
<PAGE>

Investment in BioMarin/Genzyme  LLC and Related  Revenue--Under the terms of the
Company's  joint venture  agreement  with Genzyme (see note 10), the Company and
Genzyme  have each  agreed to provide 50  percent of the  funding  for the joint
venture. All research and development, sales and marketing, and other activities
performed  by Genzyme and the Company on behalf of the joint  venture are billed
to the joint  venture at cost.  Any  profits or losses of the joint  venture are
shared equally by the two parties. BioMarin provided $39.3 million in funding to
the joint venture from inception through December 31, 2001.

During the years ended  December  31, 1999,  2000,  2001 and for the period from
March 21, 1997  (inception)  through  December  31, 2001,  the Company  incurred
expenses  and billed  $10.6  million,  $19.4  million,  $22.6  million and $54.4
million,  respectively,  for services  provided to the joint  venture  under the
Agreement. Of these amounts, $5.3 million, $9.7 million, $11.3 million and $27.2
million,  respectively,  or 50 percent,  was recognized as revenue in accordance
with the Company's policy of recognizing revenue to the extent that research and
development  costs billed to the joint  venture have been funded by Genzyme.  At
December 31, 2000,  and 2001,  the Company had  receivables  of $1.8 million and
$3.1 million, respectively, related to these billings.

The Company  accounts for its  investment  in the joint venture using the equity
method.  Accordingly,  the Company  records a reduction in its investment in the
joint  venture for its 50 percent  share of the loss of the joint  venture.  The
percentage of the costs  incurred by the Company and billed to the joint venture
that are funded by the  Company  (50  percent),  is  recorded as a credit to the
Company's equity in the loss of the joint venture.

The following table  summarizes the components of the Company's  recorded equity
in loss of BioMarin/Genzyme LLC (in thousands):

<TABLE>
<S>                                               <C>        <C>          <C>          <C>
                                                                                          March 21, 1997
                                                                                          (inception) to
                                                       Years ended December 31,         December 31, 2001
                                                  ------------------------------------ ---------------------
                                                    1999        2000         2001
                                                  ---------- ------------ ------------
50 percent of joint venture net loss              $(6,973)   $(12,643)    $(18,663)               $(39,163)
50 percent of services billed by the
Company to joint venture                            5,300       9,731       11,330                  27,198
                                                  ----------------------------------------------------------
                                                  $(1,673)   $ (2,912)   $  (7,333)               $(11,965)
                                                  ==========================================================

</TABLE>

At December 31, 2001 the summarized  assets and liabilities of the joint venture
and its results of operations from inception to December 31, 2001 are as follows
(in thousands):


               Assets                    $7,628
                                         ======
               Liabilities               $5,338
               Net equity                 2,290
                                          -----
                                         $7,628
                                         ======
               Cumulative net loss      $77,918
                                        =======

Property and  Equipment--Property and equipment are stated at cost. Depreciation
is computed using the  straight-line  method over the related  estimated  useful
lives. Significant additions and improvements are capitalized, while repairs and
maintenance are charged to expense as incurred.

As of December  31,  2000 and 2001,  property  and  equipment  consisted  of the
following:

<TABLE>
<S>                                      <C>              <C>                 <C>

                                                 December 31,
                                        -------------------------------
Category                                     2000           2001            Estimated Useful Lives
--------------------------------------- ------------------------------- --------------------------------
Computer hardware and software           $  678            1,532                        3 years
Office furniture and equipment            1,056            1,557                        5 years
Manufacturing/Laboratory Equipment        9,323           11,769                        5 years
Leasehold improvements                   16,685           30,886              Shorter of life of asset
                                                                                     or lease term
Construction in progress                  1,048            1,064
                                        -------------------------------
                                         28,790           46,808
Less:  Accumulated depreciation          (8,075)         (14,248)
                                        -------------------------------
Total property and equipment, net        20,715           32,560
                                        ===============================

</TABLE>

                                      F21
<PAGE>

Depreciation  expense for the years ended  December 31, 1999,  2000 and 2001 and
for the period  March 21, 1997  (inception)  to December  31,  2001,  was,  $4.1
million, $4.3 million, $6.2 million and $14.9 million, respectively.

Goodwill and Other  Intangible  Assets--In  connection  with the  acquisition of
Glyko,  Inc. in 1998, the Company recorded  intangible  assets of $11.7 million.
Additional  intangible  assets of $891,000 were recorded in connection  with the
acquisition  by  Glyko,  Inc.  of the key  assets of the  bio-chemical  research
reagent  division of Oxford  GlycoSciences  Plc. (OGS), a company not related to
Glyko,  Inc. During 2000, the Company revised its estimate of the useful life of
these intangible assets downward to 7 years; the effect of this change increased
amortization  expense in 2000.  As indicated in Note 1, the Company  recorded an
impairment  reserve against the unamortized  balance of $7.8 million at December
31, 2001 as a result of the Company's decision to close the business.

Impairment of Long-Lived Assets--The Company regularly reviews long-lived assets
and identifiable  intangibles whenever events or circumstances indicate that the
carrying  amount  of such  assets  may not be  fully  recoverable.  The  Company
evaluates  the  recoverability  of  long-lived  assets by measuring the carrying
amount of the  assets  against  the  estimated  undiscounted  future  cash flows
associated  with them.  At the time such  evaluations  indicate  that the future
undiscounted  cash flows of certain  long-lived  assets  are not  sufficient  to
recover the carrying value of such assets, the assets are adjusted to their fair
values.

Accrued  Liabilities--As  of  December  31, 2000 and 2001,  accrued  liabilities
consisted of the following:


                                         December 31,
                                   --------------------------
                                       2000         2001
                                   ------------- ------------
Vacation                           $    365      $   602
Construction in progress                225           -
ESPP/401K                               167          528
Other                                 1,194        1,068
                                   ------------- ------------
               Total               $  1,951      $ 2,198
                                   ============= ============

Revenue  Recognition--Revenue from the joint venture is recognized to the extent
that  research and  development  costs billed by the Company have been funded by
Genzyme.

Research and Development--Research and development expenses include the expenses
associated  with contract  research and  development  provided by third parties,
research and development provided in connection with the joint venture including
manufacturing,   clinical  and  regulatory  costs,  and  internal  research  and
development costs. All research and development costs are expensed as incurred.

Net Income  (Loss) per  Share--Net  income  (loss)  per share is  calculated  by
dividing net income (loss) by the weighted  average  common  shares  outstanding
during the period.  Diluted net income per share is  calculated  by dividing net
income by the weighted  average common shares  outstanding and potential  common
shares  during the period.  Potential  common  shares  include  dilutive  shares
issuable upon the exercise of outstanding  common stock options,  warrants,  and
contingent  issuances  of common  stock.  For  periods in which the  Company has
losses (all periods  presented),  such potential common shares are excluded from
the computation of diluted net loss per share, as their effect is  antidilutive.

Potentially dilutive securities include (in thousands):

<TABLE>
<S>                                             <C>             <C>             <C>

                                                              December 31,
                                            -----------------------------------------------
                                                 1999            2000            2001
                                            -----------------------------------------------
Options to purchase common stock                5,450           5,539           7,767
Warrants to purchase common stock                 802             -               753
                                            -----------------------------------------------

                  Total                         6,252           5,539           8,520
                                            ===============================================
</TABLE>


Segment  Reporting--The  Company  operates in two  segments.  The  Analytic  and
Diagnostic  segment  represents the operations of Glyko,  Inc. which involve the
manufacture  and sale of analytic and diagnostic  products (See Note 1 regarding
closure of Glyko, Inc. and the associated  discontinued  operations  treatment).
The Pharmaceutical  segment  represents the research and development  activities
related  to  the  development  and   commercialization  of  carbohydrate  enzyme
therapeutics. Management of the Company has concluded that the operations of the
Analytic  and  Diagnostic  segment  are  immaterial  to  the  Company's  overall
activities and, thus, disclosure of segment information is not required.

                                      F22
<PAGE>

Recent  Accounting  Pronouncements - On June 29, 2001, the Financial  Accounting
Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS)
No. 141,  Business  Combinations,  and SFAS No.  142,  Goodwill  and  Intangible
Assets.  Major  provisions  of these  Statements  are as follows:  all  business
combinations  initiated  after  June 30,  2001 must use the  purchase  method of
accounting;  intangible  assets  acquired  in a  business  combination  must  be
recorded  separately;  all acquired goodwill must be assigned to reporting units
for purposes of impairment testing and segment  reporting;  effective January 1,
2002, goodwill and intangible assets with indefinite lives will not be amortized
but will be tested for impairment  annually using a fair value  approach;  other
intangible  assets will continue to be valued and amortized over their estimated
lives;  in-process  research and development  acquired in business  combinations
will  continue to be written off  immediately.  Management  does not expect this
standard  to have a  material  impact on the  Company's  consolidated  financial
position or results of operations.

In June 2001,  the FASB issued SFAS No. 143,  "Accounting  for Asset  Retirement
Obligations." Management does not expect this standard to have a material impact
on the Company's consolidated financial position or results of operations.

In August 2001, the FASB issued SFAS No. 144,  "Accounting for the Impairment or
Disposal of  Long-Lived  Assets."  SFAS No. 144  broadens  the  presentation  of
discontinued  operations to include more transactions and eliminates the need to
accrue for future  operating  losses.  Additionally,  SFAS No. 144 prohibits the
retroactive  classification of assets as held for sale and requires revisions to
the depreciable lives of long-lived assets to be abandoned. SFAS No. 144 will be
effective  January 1, 2002 for the  Company.  Management  does not  expect  this
standard  to have a  material  impact on the  Company's  consolidated  financial
position or results of operations.

Reclassifications  - Certain  items in the  prior  year  consolidated  financial
statements have been reclassified to conform to the current year presentation.


3.       PURCHASE OF IBEX THERAPEUTIC ASSETS

On October 31, 2001,  the Company  purchased from IBEX  Technologies  Inc. (TSE:
IBT) and its subsidiaries the intellectual  property and other assets associated
with the  IBEX  therapeutic  enzyme  drug  products  (including  Neutralase  and
Phenylase) for $10.4 million,  consisting of $2 million in cash and $8.4 million
in BioMarin  common  stock at $10.218  dollars per share  (814,647  shares).  In
connection with the purchase of the IBEX therapeutic  assets, the Company issued
options to purchase 43,861 shares of the Company's  common stock.  These options
were valued  using the  Black-Scholes  option  pricing  model and the  resulting
valuation of $291,000 was included as additional  purchase  price.  The purchase
agreement includes up to approximately $9.5 million in contingency payments upon
regulatory  approval of Neutralase and Phenylase,  provided that approval occurs
prior to October 31, 2006.

The transaction did not meet the criteria of a business  combination as outlined
in EITF 98-3 "Determining Whether a Nonmonetary  Transaction Involves Receipt of
Productive  Assets or of a Business" as, upon  acquisition,  the assets acquired
did not have any significant business outputs.  Accordingly, all of the purchase
price plus related expenses  totaling $11.7 million was attributed to in-process
research  and  development  and was  expensed in the  accompanying  consolidated
statements of operations.

The following  unaudited pro forma summary financial  information (in thousands,
except  for  per  share  information)   displays  the  consolidated  results  of
operations of the Company as if the  acquisition  of the  therapeutic  assets of
IBEX had occurred on January 1, 2000 and was carried  forward  through  December
31,  2001.  Preparation  of the pro  forma  summary  information  was  based  on
assumptions deemed appropriate by the Company.  The pro forma information is not
necessarily  indicative of the results that actually  would have occurred if the
acquisition  had been  consummated  on  January  1, 2000 nor does it  purport to
represent the future financial position of operations for future periods:

<TABLE>
<S>                                                                  <C>    <C>    <C>    <C>    <C>    <C>

                                                                      Year ended December 31
                                                                         2000            2001
Revenues                                                             $     9,731    $    11,699
Operating expenses                                                       (59,163)       (53,457)
Loss from continuing operations                                          (49,372)       (47,237)
Net loss                                                                 (50,956)       (57,282)
Net loss per share (basic and diluted)                               $     (1.39)   $     (1.37)
Weighted average common shares outstanding (basic and diluted)            36,674         41,898

</TABLE>

                                      F23
<PAGE>

4.   STOCKHOLDERS' EQUITY:

Common Stock and Warrants - The Company closed a number of private placements in
1997 and 1998. In  connection  with these  placements,  an entity with which the
former chief executive officer and chairman of the board is affiliated (see Note
7) was issued a total of 899,500  shares  (valued at $1.4  million) and warrants
(valued at $0.1  million)  to purchase an  additional  801,500  shares of common
stock at an  exercise  price of $1 per  share.  These  issuances  were  made for
brokerage  services  rendered  in  connection  with  these  placements  and were
accounted  for as a cost of raising  capital.  The  warrants  were  exercised in
August 2000.

In July 1999,  the Company  completed its initial  public  offering  raising net
proceeds (including the exercise of the over-allotment) of $60 million.

On May 16, 2001, the Company sold 4,763,712  shares of common stock at $9.45 per
share and,  for no  additional  consideration,  issued  three-year  warrants  to
purchase 714,554 shares of common stock at an exercise price of $13.10 per share
and  received  net  proceeds of $41.6  million.  Also,  on May 17,  2001, a fund
managed  by Acqua  Wellington  purchased  105,821  shares  of  common  stock and
received  warrants to purchase  15,873  shares of common stock on the same price
and terms as the May 16, 2001 transaction;  the Company received net proceeds of
$1 million.  The Company  allocated a portion of the proceeds to warrants in the
consolidated  balance sheet based on the  estimated  fair value of the warrants.
The fair value of the warrants was  calculated  using the  Black-Scholes  option
pricing model.

In August 2001,  the Company signed an amended  agreement with Acqua  Wellington
North American Equities Fund Ltd. (Acqua Wellington) for an equity investment in
the  Company.  The  agreement  allows for the  purchase  of up to $27.7  million
(approximately  2,500,000 shares). Under the terms of the agreement, the Company
will have the option to  request  that Acqua  Wellington  invest in the  Company
through  sales of registered  common stock at a small  discount to market price.
The maximum amount that the Company may request to be bought in any one month is
dependent  upon the market price of the stock (or an amount that can be mutually
agreed-upon  by both  parties)  and is  referred  to as the "Draw Down  Amount."
Subject to certain  conditions,  Acqua  Wellington is obligated to purchase this
amount if requested to do so by the  Company.  In addition,  the Company may, at
its  discretion,  grant a "Call  Option" to Acqua  Wellington  for an additional
investment in an amount up to the "Draw Down Amount" which Acqua  Wellington may
or may not choose to exercise. During 2001, Acqua Wellington purchased 1,344,194
shares for $13.5  million  ($13.2  million  net of issuance  costs).  Under this
agreement, Acqua Wellington may also purchase stock and receive similar terms of
any other equity financing by the Company.

On December 13, 2001, the Company  completed a follow-on  public offering of its
common stock.  In the offering,  the Company sold  8,050,000  shares,  including
1,050,000  shares to cover  over-allotments,  at a price to the public of $12.00
per share. The net proceeds to the Company were approximately $90.4 million.

Notes  Receivable  from  Stockholders--These  originated  from the October  1997
issuance of 2.5 million shares of Founders' Stock to three  officers.  The notes
carried an interest rate of 6%; since this was less than the then-market rate of
9%, an interest  discount  and related  deferred  compensation  of $200,000  was
recorded.  The deferred  compensation was recognized as an expense over the term
of the notes.

The  notes  were  originally  due on  March  31,  2001  and are  secured  by the
underlying stock. The notes contained  buy-back and vesting  provisions.  Two of
the three executives have left the Company.  For the first officer,  the Company
repurchased  33,334 of his shares at his original purchase price and reduced his
note balance by the same amount.  This officer repaid the remaining  balance and
interest in 2000.  The second and third officers have not yet fully repaid their
loans but repayment is expected in 2002 including interest that is continuing to
be accrued.

The notes are classified in the  accompanying  consolidated  balance sheets as a
reduction of stockholders' equity.

Deferred Compensation--In  connection with certain stock option and stock grants
to  employees  from 1998 to 2000,  the Company  recorded  deferred  compensation
totaling  $4.2 million,  which is being  amortized  over the  estimated  service
periods of the grantees.  Amortization expense recognized during the years ended
December  31,  1999,  2000,  and 2001 was $1.3  million,  $1.4  million and $0.8
million, respectively.

5.   STOCK OPTION PLANS:

The Board of Directors and stockholders have approved two plans:

   o     The 1997 Stock Plan (the 1997 Plan) provides for the grant of stock
         options and the issuance of common stock to employees, officers,
         directors and consultants. As of December 31, 2001, 9,172,451 shares
         were reserved for issuance under the 1997 Plan.

   o     The 1998 Director Option Plan (the Director Plan) provides for the
         grant of stock options and the issuance of common stock to non-employee
         directors. As of December 31, 2001, options to purchase 185,000 shares
         were outstanding and options to purchase 500,000 shares were authorized
         by the Director Plan.

                                      F24
<PAGE>

Options  currently  outstanding  under the 1997 Plan and 1998 Director Plan (the
Plans) generally have vesting  schedules of up to four years.  Options terminate
from  5-10  years  from  the  date of  grant  or 90 days  after  termination  of
employment.

The  Company  accounts  for  option  grants  in  accordance  with  APB  25.  Had
compensation cost for option grants to employees under the Plans been determined
consistent  with the fair value  provisions  of SFAS No. 123,  the effect on the
Company's net loss would have been as follows (in thousands):

<TABLE>
<S>                                      <C>                   <C>                 <C>                <C>

                                                                                                Period from March
                                                                                                    21, 1997
                                                                                                  (Inception) to
                                                       Years ended December 31,                  (December 31,
                                        --------------------------------------------------------
                                             1999              2000                2001               2001
                                        -------------- ------------------- --------------------- ---------------
Net loss as reported                     $ (28,072)     $      (37,380)          $ (67,606)        $  (148,119)
Pro forma effect of SFAS No. 123            (1,074)             (5,412)            (13,875)            (20,544)
                                        -------------- ------------------- --------------------- ---------------
Pro forma net loss                       $ (29,146)     $      (42,792)          $ (81,481)        $  (168,663)
                                        ============== =================== ===================== ===============


Net loss per common share as reported    $   (0.94)     $        (1.04)          $   (1.65)        $     (5.22)
                                        ============== =================== ===================== ===============

Pro forma loss per common share          $   (0.97)     $        (1.19)          $   (1.98)        $     (5.94)
                                        ============== =================== ===================== ===============


</TABLE>

A summary of the status of the Company's Plans is as follows:

<TABLE>
<S>                                 <C>              <C>             <C>           <C>
                                                       Weighted                            Weighted Average
                                                       Average        Exercisable at     Fair Value of Options
                                      Option Shares   Exercise Price   End of Year            Granted
                                                     --------------- ------------- -------------------
Outstanding at March 21, 1997              -
                                   ---------------
       Granted                        297,000             $1.00                                $0.22
                                   ---------------
       Outstanding at December        297,000              1.00          232,000
                                                                      =============
       Granted                      2,507,660              4.18                                $2.40
       Exercised                       (1,973)             1.00
       Canceled                        (1,447)             1.00
                                   ---------------
Outstanding at December 31, 1998    2,801,240              3.85          761,609
                                                                      =============
       Granted                      2,877,430             11.35                                $8.80
       Exercised                      (40,148)             3.69
       Canceled                      (188,536)             9.28
                                   ---------------
Outstanding at December 31, 1999    5,449,986              7.59        1,922,041
                                                                      =============
       Granted                      1,881,310             15.83                               $13.27
       Exercised                   (1,300,532)             4.36
       Canceled                      (491,506)            11.70
                                   ---------------
Outstanding at December 31, 2000    5,539,258             10.92        2,067,302
                                                                      =============
       Granted                      2,844,206             10.80                               $8.22
       Exercised                     (343,560)             3.72
       Canceled                      (273,226)            14.21
                                   ---------------
                                   ---------------
Outstanding at December 31, 2001
                                     7,766,678            11.18        3,682,150
                                   ===============                    =============

</TABLE>

There were 1,048,661 and 219,560 options available for grant under the Plans at
December 31, 2000 and 2001, respectively.


                                      F25
<PAGE>

As of December 31, 2001, the options outstanding consisted of the following:

<TABLE>

<S>                   <C>                 <C>              <C>                 <C>                  <C>                       <C>
                 Options Outstanding                                            Options Exercisable
------------------------------------------------------------------------------ ------------------------------------------

                                              Weighted           Weighted                              Weighted Average
 Range of Exercise     Number of Options       Average            Average       Number of Options       Average Exercise
      Prices             Outstanding       Contractual Life   Exercise Price      Exercisable              Price
--------------------- ------------------- ---------------  ------------------- -------------------- ---------------------
     $0.00 to $3.50          103,523            0.7              $1.07             103,523                  $1.07

     $3.50 to $7.00        1,699,903            4.0              $5.35           1,376,818                  $5.24

    $7.01 to $10.50        1,644,037            8.9              $9.43             539,178                  $9.45

   $10.51 to $14.00        3,030,947            7.1             $12.60           1,026,982                 $12.68

   $14.01 to $17.50          691,394            4.6             $15.83             358,365                 $15.81

   $17.51 to $21.00          265,874            6.5             $19.40             132,621                 $19.66

   $21.01 to $24.50          220,000            8.1             $21.63              93,541                 $21.96

   $24.51 to $28.00           96,000            3.2             $25.88              43,935                 $25.90

   $28.00 to $31.50           15,000            3.2             $31.25               7,187                 $31.25

                      -------------------                                       -------------------

                           7,766,678                                                3,682,150
                      ===================                                       ===================

</TABLE>

The following summarizes the assumptions used to determine the fair value of
each option using the Black-Scholes option pricing model:

<TABLE>
<S>                                        <C>             <C>         <C>          <C>

Dates of Grant                             Interest Rate   Dividend       Life      Volatility
                                                             Yield
----------------------------------------  ---------------- ----------- -----------  -----------
Inception to July 22, 1999  (pre-IPO)      4.6% to 5.7%      0.00%       4 years        0%
July 22, 1999 to December 31, 1999         5.8% to 6.1%      0.00%       4 years       39%
January 1, 2000 to December 31, 2000       4.6% to 6.8%      0.00%       4 years      105%
January 1, 2001 to December 31, 2001       3.9% to 4.9%      0.00%       4 years       76%
</TABLE>


6.       NOTE PAYABLE:

During  December 2001, the Company  entered into three separate  agreements with
General  Electric  Capital  Corporation for secured loans totaling $5.5 million.
The notes bear interest  (ranging from 9.1% to 9.31%) and are secured by certain
manufacturing and laboratory equipment.  Additionally,  one of the agreements is
subject  to  a  covenant  that  requires  the  Company  to  maintain  a  minimum
unrestricted  cash balance of $25 million.  Should the unrestricted cash balance
fall below $25 million, the note is subject to prepayment,  including prepayment
penalties ranging from 1% to 4%.

Principal  payments due on notes payable for the years ended  December 31 are as
follows (in thousands):


                 2002                  $      1,525
                 2003                         1,803
                 2004                         1,948
                 2005                           113
                                       ----------------
                                       ----------------
                                       $      5,389
                                       ================

7.   INCOME TAXES:

The Company  utilizes the asset and liability  method of  accounting  for income
taxes. Under this method,  deferred taxes are determined based on the difference
between the financial  statement and tax bases of assets and  liabilities  using
tax rates  expected  to be in effect in the years in which the  differences  are
expected to reverse.

The  Company's  primary  temporary  differences  relate  to items  expensed  for
financial  reporting  purposes  but not  currently  deductible  for  income  tax
purposes, consisting primarily of depreciable lives for property and equipment.

                                      F26
<PAGE>

As of December 31, 2001,  net operating  loss  carryforwards  are  approximately
$108.0 million and $57.6 million for federal and California income tax purposes,
respectively.  These net  operating  loss  carryforwards  include net  operating
losses of $12.6  million  for  federal  purposes  related to Glyko,  Inc.  These
federal  and state  carryforwards  expire  beginning  in the year 2011 and 2004,
respectively.

The Company also has research and development credits available to reduce future
federal and  California  income  taxes of  approximately  $3.2  million and $3.1
million,  respectively,  at December 31, 2001.  These  credits  include  credits
related to Glyko,  Inc.  of  approximately  $0.7  million  and $0.4  million for
federal  and  California  purposes,   respectively.   These  federal  and  state
carryforwards expire beginning in 2012 and 2013, respectively.

The Company also has orphan drug  credits  available  to reduce  future  federal
income taxes, if any, of approximately $13.6 million at December 31, 2001.

The Tax Reform Act of 1986 contains  provisions that may limit the net operating
loss carryforwards and research and development  credits available to be used in
any given year should certain events occur,  including sale of equity securities
and other changes in ownership.  The acquisition of Glyko,  Inc. and the related
issuance of stock represented a change of ownership under these provisions. As a
result of this and the proposed  exiting of the Glyko business,  there can be no
assurance  that  the  Company  will  be  able  to  utilize  net  operating  loss
carryforwards and credits before expiration.

The Company has a cumulative net operating loss  carryforward  since  inception,
resulting in net deferred tax assets of approximately $61.5 million. A valuation
allowance  has been placed on the net  deferred  tax assets to reduce them to an
assumed net realizable value of zero.


8.   COMMITMENTS AND CONTINGENCIES:

Lease  Commitments--The  Company  leases  office  space and research and testing
laboratory space in various  facilities under operating  agreements  expiring at
various dates through 2010.  Future  minimum lease  payments for the years ended
December 31 are as follows (in thousands):

            2002..................       $  2,548
            2003..................          2,566
            2004..................          2,392
            2005..................          2,093
            2006..................          1,924
            Thereafter............          5,715
                                         ---------
                      Total.......        $17,238
                                         =========

Rent expense for the years ended  December 31, 1999,  2000 and 2001, and for the
period from March 21, 1997 (inception),  to December 31, 2001, was $1.1 million,
$1.5 million, $2.2 million and $5.2 million, respectively.

Research  and  Development  Funding and  Technology  Licenses--The  Company uses
experts and  laboratories  at  universities  and other  institutions  to perform
research and development activities. Funding commitments as of December 31, 2001
to these institutions for future years are as follows (in thousands):

            2002..................        $     652
            2003..................              330
            2004..................              255
            2005..................              255
            2006..................              255
                                          ---------
                      Total.......          $ 1,747
                                          =========

The Company has also licensed technology from certain institutions, for which it
is  required  to pay a royalty  upon  future  sales,  subject to certain  annual
minimums. As of December 31, 2001, such minimum commitments were $255,000.

Product Liability and Lack of  Insurance--The  Company is subject to the risk of
exposure to product  liability claims in the event that the use of AldurazymeTM,
AryplaseTM  or  VibrilaseTM   results  in  adverse  effects  during  testing  or
commercial  sale.  BioMarin/Genzyme  LLC (the LLC) and the Company carry product
liability  insurance to cover the clinical trials of Aldurazyme (by the LLC) and
Aryplase and  Vibrilase  (by the  Company).  There can be no assurance  that the
Company  will  be  able  to  obtain  product  liability  insurance  coverage  at
economically  reasonable  rates or that such  insurance  will  provide  adequate
coverage  against all  possible  claims.  To date,  there have not been any such
claims.

                                      F27

<PAGE>

9.   RELATED-PARTY TRANSACTIONS:

On April 13,  1999,  the  Company  entered  into a  convertible  note  financing
agreement  in the amount of $26.0  million.  Of this amount GBL  purchased  $4.3
million worth of such notes and LaMont Asset  Management SA (LAM) purchased $9.7
million. A director of the Company is also the chairman of LAM. The Company also
entered into an agency  agreement  with LAM pursuant to which the Company agreed
to pay LAMS a five percent cash commission on sales to certain note  purchasers.
On July 23, 1999,  concurrent with the Company's IPO, the Company's  convertible
notes payable  (including accrued interest) were converted into 2,672,020 shares
of the Company's common stock at $10 per share.  GBL's $4.3 million  convertible
note plus  interest  was  converted  to 441,911  shares  and LAM's $9.7  million
convertible note plus interest was converted to 996,869 shares.

In April  2001,  the  Company  loaned a Company  officer  $860,000 to purchase a
property  and  received a  promissory  note  secured by the  property.  The note
matures on October 31, 2004  (subject to various  conditions  in the  employment
agreement) and bears interest at the Federal  mid-term rate (3.9% as of December
31, 2001).

Due to the terms of the  collaborative  agreement with Genzyme  outlined in Note
10,  Genzyme is  considered to be a related  party.  See also Notes 1 and 10 for
Genzyme related-party transactions.

10.   COLLABORATIVE AGREEMENTS:

Genzyme--In  1998,  the Company  entered  into an agreement  (the  Collaboration
Agreement) with Genzyme to establish a joint venture  (BioMarin/Genzyme LLC) for
the worldwide development and commercialization of Aldurazyme to treat MPS I. In
conjunction with the formation of the joint venture,  the Company  established a
wholly-owned  subsidiary,  BioMarin Genetics,  Inc. The Company has a 49 percent
interest in the joint venture, BioMarin Genetics, Inc. has a 1 percent interest,
and Genzyme has the remaining 50 percent interest.

Under the Collaboration  Agreement, the Company and Genzyme are each required to
make capital contributions to the joint venture in an amount equal to 50 percent
of costs and expenses associated with the development and  commercialization  of
Aldurazyme.  The  parties  also  agree to share the  profits  equally  from such
commercialization.  In  addition,  Genzyme  purchased  1,333,333  shares  of the
Company's  common stock at $6 per share in a private  placement  for proceeds of
$8.0 million and,  concurrent  with the IPO,  purchased  an  additional  769,230
shares of the Company's  common stock at the IPO price for an  additional  $10.0
million.  Genzyme has also agreed to pay the Company  $12.1 million in cash upon
FDA approval of the biologics license application for Aldurazyme.

Other   Agreements--The   Company  is  engaged  in  research   and   development
collaborations with various academic  institutions,  commercial research groups,
and other  entities.  The  agreements  provide for  sponsorship  of research and
development  by the Company and may also provide for  exclusive  royalty-bearing
intellectual property licenses or rights of first negotiation regarding licenses
to intellectual property development under the collaborations.  Typically, these
agreements are terminable for cause by either party upon 90 days written notice.

11.   COMPENSATION PLANS:

Employment  Agreements--The  Company has entered into employment agreements with
eight officers. Seven of these agreements can be terminated without cause by the
Company upon six months prior notice,  or by the officer upon three months prior
written notice to the Company. The employment agreement with the Company's Chief
Executive  Officer (CEO) shall be renewed  after three years for one  additional
three-year  period  unless  either  party gives nine months  notice prior to the
expiration of the initial three-year period. The annual salaries committed under
these employment agreements total approximately $2.0 million. In addition, three
of the  agreements  provide for the payment of an annual cash bonus of up to 100
percent of the base annual  salary of the three senior  officers  based upon the
Company's  market  capitalization  through June 30, 2000.  Bonuses for the three
senior  officers (two of whom are no longer with the Company)  totaled  $294,000
and $0 in 2000 and 2001, respectively.  The bonuses for the CEO totaled $279,000
in 2001.

401(k)  Plan--The  Company sponsors the BioMarin  Retirement  Savings Plan. Most
employees  (Participants)  are eligible to  participate  following  the start of
their employment,  on the earlier of the next occurring January 1, April 1, July
1 or October 1.  Participants  may  contribute up to 20 percent of their current
compensation  to the  401(k)  Plan or an amount up to a  statutorily  prescribed
annual  limit.  The  Company  pays the direct  expenses  of the 401(k)  Plan and
matches 50% of the first 2% contributed to the employee accounts.  The Company's
matching contribution vests over four years from employment commencement and was
$0, $30,000,  $90,000 and $123,000 for the years ended December 31, 1999,  2000,
2001 and for the period from March 21, 1997  (inception)  through  December  31,
2001, respectively.

                                      F28
<PAGE>

1998 Employee  Stock  Purchase  Plan (1998  Purchase  Plan)--A  total of 250,000
shares of Company  common stock has been  reserved  for issuance  under the 1998
Purchase Plan,  plus annual  increases equal to the lesser of 0.5 percent of the
outstanding capital stock,  200,000 shares, or a lesser amount set by the Board.
As of December 31, 2001,  63,083 shares have been issued under the 1998 Purchase
Plan.

12.   SUPPLEMENTAL CASH FLOW INFORMATION:
<TABLE>
<S>                                                  <C>            <C>            <C>            <C>
 The  following  non-cash  transactions  took place in the periods  presented (in thousands):


                                                                                                  Period from March 21,
                                                                                                   1997 (Inception) to
                                                              Year Ended December 31,                 December 31,
                                                     -------------------------------------------
                                                          1999          2000          2001                2001
                                                     -------------------------------------------   --------------------
Common stock issued upon conversion of
    convertible notes plus interest                  $    25,615        $  -        $    -          $  25,615
Common stock issued in exchange for notes                   -              -             -             20,500
Common stock and common stock warrants
    issued in exchange for brokerage services               -              -             -              1,518
Common stock surrendered by stockholders'
    for payment of principle and interest                   -             170            -                170
Compensation in the form of common stock
    and common stock options                                -              -             -                 18
Issuance of common stock to acquire the
    therapeutic assets of IBEX at $10.218
    per share                                               -              -           8,324            8,324
Fair value of common stock options issued in
    connection with IBEX therapeutic asset acquisition      -              -             291              291
Fair value of restricted stock grant issued
    pursuant to an employment contract                      -             313            -                313
Borrowings under capital lease arrangements                 -              -             206              206

</TABLE>

13.   SUBSEQUENT EVENTS (unaudited):

In December  2001,  the  Company  signed a  definitive  agreement  with  Synapse
Technologies  Inc. (a  privately  held  Canadian  company) to acquire all of its
outstanding  capital stock for  approximately  $10.2  million in Company  common
stock plus future contingent  milestone  payments totaling $6 million payable in
cash or  common  stock at the  Company's  discretion.  The  Company  will  issue
approximately  885,000 shares of common stock for the purchase.  The acquisition
will be recorded  upon  closing in the first  quarter of 2002 using the purchase
method of accounting. All of the purchase price along with related expenses will
be expensed as in-process research and development costs.

In February 2002,  the Company signed a definitive  agreement to purchase all of
the  outstanding  capital stock of Glyko  Biomedical  Ltd.  (GBL).  Upon closing
(anticipated to be in the second quarter of 2002) GBL shareholders  will receive
11,367,617  shares of Company  common stock in exchange for their GBL stock.  In
turn,  the Company  will retire the  existing  11,367,617  shares of  restricted
common stock of the Company  currently  held by GBL. There will be no net effect
on the common stock outstanding. It is anticipated that $2.1 million of expenses
will be incurred and expensed as  reorganization  costs for this  transaction in
2002.  Approximately $400,000 of transaction costs were incurred and expensed in
2001.

14.  QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited):

The Company's  quarterly  operating  results have fluctuated in the past and may
continue to do so in the future as a result of a number of  factors,  including,
but not limited to, the  completion of  development  projects and  variations in
levels of production.

The Company's common stock has been traded on the Nasdaq Stock Market since July
22, 1999.  There were 82 common  stockholders of record at December 31, 2001. No
dividends have ever been paid by the Company.

                                      F29
<PAGE>


<TABLE>
<S>                                      <C>          <C>            <C>                    <C>

-----------------------------------------------------------------------------------------------------------
                                                                  Quarter Ended
                                        -------------------------------------------------------------------
                                           March 31,        June 30,       September 30,    December 31,
2001                                                  (In thousands, except per share data)
Total revenue                            $   2,690       $  3,012          $ 3,101          $  2,896

Loss from continuing operations             (9,083)       (11,331)         (10,642)          (26,372)
Loss from discontinued operations             (617)          (638)            (373)             (638)
Loss from disposal of Glyko, Inc.                -              -                -            (7,912)
Net loss                                    (9,700)       (11,969)         (11,015)          (34,922)
Net loss per share, basic and diluted        (0.26)         (0.30)           (0.26)            (0.77)
Common stock price per share:
  High                                   $  12.063       $ 13.210          $13.610          $ 14.160
  Low                                        7.313          7.500            9.120             9.400
-----------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------
                                                                  Quarter Ended
                                        -------------------------------------------------------------------
                                           March 31,        June 30,       September 30,    December 31,
2000                                                  (In thousands, except per share data)
Total revenue                            $   2,791       $  2,258           $ 1,950           $ 2,715
Loss from continuing operations            (11,202)        (6,854)           (7,731)           (9,828)
Loss from discontinued operations             (534)          (232)             (417)             (566)
Net loss                                   (11,736)        (7,086)           (8,148)          (10,394)
Net loss per share, basic and diluted        (0.34)         (0.20)            (0.23)            (0.28)
Common stock price per share:
  High                                   $  38.750       $ 27.750           $ 21.750          $17.625
  Low                                       12.750         16.750             16.375            7.156
-----------------------------------------------------------------------------------------------------------

</TABLE>

                                      F30
<PAGE>

List of Exhibits


     Exhibit                                 Description
     Number
     -------        ------------------------------------------------------------
         2.1        Share Exchange Agreement between Glyko Biomedical, Ltd. and
                    BioMarin Pharmaceutical Inc. dated September 15, 1998.
                    (filed as exhibit 2.1 to Form 10-QSB dated March 31, 1999
                    and incorporated herein by reference).
         2.2        Acquisition Agreement for a Plan of Arrangement by and among
                    BioMarin Pharmaceutical Inc., BioMarin Acquisition (Nova
                    Scotia) Company and Glyko Biomedical Ltd. filed herewith as
                    Exhibit 2.2
         3.1        Registrant's Articles of Incorporation and Bylaws (filed as
                    exhibit 3.1 to Form 10-SB Registration Statement No. 0-21994
                    dated August 6, 1993 and incorporated herein by reference).
        10.1        Glyko Biomedical Share Option Plan - 1994  (filed as exhibit
                    10.1 to Form 10-QSB dated June 30, 1994 and incorporated
                    herein by reference).
        99.1        Letter to Securities and Exchange Commission from Glyko
                    regarding representations of Arthur Andersen LLP.