FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
(Mark One)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934
      For the quarterly period ended March 31, 2000

                                       OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934
      For the transition period from              to
                                     ------------    ------------

      Commission file number 0-19732
                             -------

                           CORVAS INTERNATIONAL, INC.
             (Exact name of Registrant as specified in its charter)

        DELAWARE                                             33-0238812
(State or other jurisdiction                              (I.R.S. Employer
of incorporation or organization)                         Identification No.)

                             3030 SCIENCE PARK ROAD
                           SAN DIEGO, CALIFORNIA 92121
              (Address of principal executive offices and zip code)

                                 (858) 455-9800
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

                         Common Stock, $0.001 par value
                                (Title of class)

         Indicate by check mark whether the Registrant (l) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                             Yes    X    No
                                 -------    -------

         At May 1, 2000, there were 21,106,269 shares of Common Stock, $0.001
par value, of the Registrant issued and outstanding.

<PAGE>

                           CORVAS INTERNATIONAL, INC.

                                      INDEX

                                                                           Page
                         PART I -- FINANCIAL INFORMATION                   ----

Item 1.  Financial Statements

         Condensed Balance Sheets as of March 31, 2000 (unaudited)
         and December 31, 1999                                               1

         Condensed Statements of Operations for the Three Months
         Ended March 31, 2000 and 1999 (unaudited)                           2

         Condensed Statements of Cash Flows for the Three Months
         Ended March 31, 2000 and 1999 (unaudited)                           3

         Notes to Condensed Financial Statements (unaudited)                 4

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                                 5

Item 3.  Quantitative and Qualitative Disclosures About Market Risk          8


                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings                                                   9
                None

Item 2.  Changes in Securities                                               9

Item 3.  Defaults Upon Senior Securities                                     9
                None

Item 4.  Submission of Matters to a Vote of Security Holders                 9
                None

Item 5.  Other Information                                                   9
                None

Item 6.  Exhibits and Reports on Form 8-K
         (a)    Exhibits                                                     9

         (b)    Reports on Form 8-K                                          9
                None

SIGNATURES                                                                  10

<PAGE>

                         PART I -- FINANCIAL INFORMATION

Item 1.           FINANCIAL STATEMENTS
<TABLE>

                           CORVAS INTERNATIONAL, INC.
                            CONDENSED BALANCE SHEETS
                                 (In thousands)
<CAPTION>

                                                  MARCH 31, 2000  DECEMBER 31, 1999
                                                  --------------  -----------------
ASSETS                                              (unaudited)
------

<S>                                               <C>             <C>
Current assets:
    Cash and cash equivalents                     $         440   $         881
    Short-term debt securities held to maturity
        and time deposits, partially restricted          30,615          20,630
    Receivables                                             144             316
    Note receivable from related party                      278             278
    Other current assets                                    634             547
                                                  --------------  --------------
                  Total current assets                   32,111          22,652
                                                  --------------  --------------

Debt issuance costs                                         122             127
Long-term debt securities held to maturity                1,987               0
Property and equipment, net                               1,166           1,110
                                                  --------------  --------------
                                                  $      35,386   $      23,889
                                                  ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities:
    Accounts payable                              $         367   $         993
    Accrued liabilities                                   1,938           1,167
    Accrued vacation                                        249             214
                                                  --------------  --------------
                  Total current liabilities               2,554           2,374
                                                  --------------  --------------

Convertible notes payable                                10,401          10,215
Deferred rent                                                49              25

Stockholders' equity:
    Preferred stock - Series A and Series B                   0               1
    Common stock                                             21              17
    Additional paid-in capital                          116,830         102,127
    Accumulated deficit                                 (94,469)        (90,870)
                                                  --------------  --------------
                  Total stockholders' equity             22,382          11,275

Commitments and contingencies
                                                  --------------  --------------
                                                  $      35,386   $      23,889
                                                  ==============  ==============
</TABLE>

See accompanying notes to condensed financial statements.

                                        1

<PAGE>

                           CORVAS INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                       In thousands, except per share data
                                   (unaudited)


                                                        Three Months Ended
                                                             March 31,
                                                  ------------------------------
                                                       2000            1999
                                                  --------------  --------------

  REVENUES:
      Revenue from collaborative agreements       $       1,013   $       1,746
      Royalties                                               9              23
      Research grants                                        21               0
                                                  --------------  --------------

           Total revenues                                 1,043           1,769
                                                  --------------  --------------

  COSTS AND EXPENSES:
      Research and development                            3,910           3,104
      General and administrative                            927             778
                                                  --------------  --------------

           Total costs and expenses                       4,837           3,882
                                                  --------------  --------------

           Loss from operations                          (3,794)         (2,113)
                                                  --------------  --------------

  OTHER INCOME (EXPENSE):
       Interest income                                      386             238
       Interest expense                                    (191)              0
                                                  --------------  --------------

                                                            195             238
                                                  --------------  --------------

          Net loss and other comprehensive loss   $      (3,599)  $      (1,875)
                                                  ==============  ==============

          Basis and diluted net loss per share    $       (0.18)  $       (0.12)
                                                  ==============  ==============

          Shares used in calculation of basic
             and diluted net loss per share              19,636          15,126
                                                  ==============  ==============


See accompanying notes to condensed financial statements.

                                       2
<PAGE>

                                          CORVAS INTERNATIONAL, INC.

                                      CONDENSED STATEMENTS OF CASH FLOWS
                                                 In thousands
                                                  (unaudited)
<TABLE>
<CAPTION>
                                                                                        Three Months Ended
                                                                                              March 31,
                                                                                  ------------------------------
                                                                                       2000            1999
                                                                                  --------------  --------------
  <S>                                                                             <C>             <C>
  CASH FLOWS FROM OPERATING ACTIVITIES:
          Net loss                                                                $      (3,599)  $      (1,875)
          Adjustments to reconcile net loss to
              net cash used in operating activities:
                   Depreciation and amortization                                            122             142
                   Amortization of premiums and discounts on investments                   (317)            (72)
                   Amortization of debt issuance costs                                        5               0
                   Non-cash interest expense on convertible notes payable                   186               0
                   Stock compensation expense                                                15               3
                   Change in assets and liabilities:
                            (Increase) decrease in receivables                              172             (12)
                            Increase in other current assets                                (87)           (109)
                            Increase in accounts payable, accrued
                               liabilities and accrued vacation                             180              83
                            Increase in deferred rent                                        24               0
                                                                                  --------------  --------------

                               Net cash used in operating activities                     (3,299)         (1,840)
                                                                                  --------------  --------------

  CASH FLOWS FROM INVESTING ACTIVITIES:
          Purchases of investments held to maturity                                     (26,050)         (4,371)
          Proceeds from maturity of investments held to maturity                         14,395           6,408
          Purchases of property and equipment                                              (178)            (26)
                                                                                  --------------  --------------

                               Net cash provided by (used in) investing activities      (11,833)          2,011
                                                                                  --------------  --------------

  CASH FLOWS FROM FINANCING ACTIVITIES:
          Net proceeds from issuance of common stock                                     12,130              47
          Capital contribution                                                            2,561               0
                                                                                  --------------  --------------

                               Net cash provided by financing activities                 14,691              47
                                                                                  --------------  --------------

  Net increase (decrease) in cash and cash equivalents                                     (441)            218

  Cash and cash equivalents at beginning of period                                          881             611
                                                                                  --------------  --------------

  CASH AND CASH EQUIVALENTS AT END OF PERIOD                                      $         440   $         829
                                                                                  ==============  ==============
</TABLE>


See accompanying notes to condensed financial statements.

                                                       3
<PAGE>

                           CORVAS INTERNATIONAL, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (unaudited)

(1)  The Company
     -----------

         Corvas International, Inc. (the "Company") was incorporated on March
27, 1987 under the laws of the State of California. In July 1993, the Company
reincorporated in the State of Delaware. The Company is engaged in the design
and development of a new generation of therapeutic agents for cardiovascular,
cancer, stroke and other major diseases.

(2)  Basis of Presentation
     ---------------------

         The interim financial information contained herein is unaudited but, in
management's opinion, includes all adjustments, consisting only of normal
recurring adjustments, necessary for a fair presentation. The condensed
financial statements should be read in conjunction with the Company's audited
financial statements and notes thereto for the year ended December 31, 1999
included in the Company's Annual Report on Form 10-K. Results for the interim
periods are not necessarily indicative of results for other interim periods or
for the full year.

(3)  Stockholders' Equity
     --------------------

         In February 2000, 1,000,000 shares of Series A Convertible Preferred
Stock and 250,000 shares of Series B Convertible Preferred Stock held by
Schering-Plough automatically converted into Common Stock after the market price
of the Company's Common Stock exceeded $7.50 and $12.00 per share, respectively,
for 10 consecutive trading days. Each preferred share converted into one share
of Common Stock.

         In the first quarter of 2000, some of the warrant holders from the
February 1996 financing exercised their warrants, which resulted in total net
proceeds of $10,650,000. A total of 1,980,000 shares of the Company's Common
Stock was issued pursuant to the exercise of these warrants.

(4)  Net Loss Per Share
     ------------------

         Net loss per share for the three months ended March 31, 2000 and 1999
is computed using the weighted-average number of common shares outstanding.
Options and warrants totaling 2,131,000 and 3,819,000 shares were excluded from
the calculation of net loss per share for the three months ended March 31, 2000
and 1999, respectively, since the effect of their inclusion would be
anti-dilutive. In addition, 3,172,000 shares from the assumed conversion of the
5.5% convertible senior subordinated notes issued during 1999 have been excluded
from the March 31, 2000 calculation, and 1,250,000 shares of convertible
preferred stock have been excluded from the March 31, 1999 calculation, since
their inclusion would be anti-dilutive.


                                       4
<PAGE>


Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
        CONDITION AND RESULTS OF OPERATIONS

         THE FOLLOWING DISCUSSION OF OUR FINANCIAL CONDITION AND RESULTS OF
OPERATIONS CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM WHAT IS DISCUSSED
IN THE FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT CAUSE SUCH A DIFFERENCE
INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED IN OUR ANNUAL REPORT ON FORM
10-K UNDER THE HEADING "RISK FACTORS."

         THE TERMS "CORVAS," "WE," "US" AND "OUR" REFER TO CORVAS
INTERNATIONAL, INC.


OVERVIEW

         Corvas International, Inc. is a clinical-stage biopharmaceutical firm
engaged in the design and development of a new generation of therapeutic agents
for cardiovascular, cancer, stroke and other major diseases. Since our inception
in 1987, we have not generated significant revenues from product sales and we
currently do not sell any commercial products. We have not been profitable on an
annual basis since inception and we anticipate that we will incur substantial
additional operating losses over the next several years as we progress in our
research and development programs. We expect that our sources of income, if any,
for the next several years will continue to primarily consist of payments under
collaborative agreements and interest income. Our historical results are not
necessarily indicative of our future results. In addition we may not
successfully develop, commercialize, manufacture or market any products or
generate sufficient revenues to ever achieve or sustain profitability. At March
31, 2000, we had an accumulated deficit of $94,469,000.


RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2000 AND 1999

         Our operating revenues decreased to $1,043,000 in the three months
ended March 31, 2000, from $1,769,000 in the corresponding period of 1999. This
decrease was mainly comprised of $250,000 from fewer scientists working on the
extended agreement with Schering Corporation, or Schering-Plough, covering oral
anticoagulants for chronic thrombosis, $240,000 due to the 1999 termination of
the option and related research and development agreements with Vascular
Genomics Inc., and $112,000 due to the 1999 completion of the research funding
from Pfizer Inc. on our UK-279,276 program (previously designated rNIF). We also
received revenue of $21,000 in the first quarter of 2000 from a Small Business
Innovation Research grant awarded in September 1999 to fund our malaria research
program.

         Comparing the three months ended March 31, 2000 to the same period in
1999, total costs and expenses increased to $4,837,000 from $3,882,000. Research
and development expenses, which accounted for the majority of this $955,000
increase, increased to $3,910,000 from $3,104,000 one year earlier. This
increase was mainly attributable to expenses associated with the increased
enrollment in our Phase II clinical trial of rNAPc2, our proprietary
anticoagulant drug candidate. General and administrative expenses increased to
$927,000 from $778,000 comparing the same quarters, primarily due to the hiring
of additional administrative employees and related expenses.


                                       5
<PAGE>

         Total other income was $195,000 in the first quarter of 2000, compared
to $238,000 in the first quarter of 1999. Interest income increased by $148,000
as a result of the $15,000,000 ($10,000,000 in the form of 5.5% convertible
senior subordinated notes and $5,000,000 of common stock) raised in the second
half of 1999 and the higher yields earned thereon. This increase in interest
income was offset by $191,000 of interest expense recorded pursuant to the 5.5%
senior subordinated convertible notes, in an aggregate principal amount of
$10,000,000, that were issued in the second half of 1999.

         Provided that additional capital is available to fund our operations,
we expect that we will continue to incur significant expenses and operating
losses over the next several years as our research and development and clinical
trials progress. However, we may not be able to raise any additional capital. We
also expect both our expenses and losses to fluctuate from quarter to quarter
and that the fluctuations may, at times, be substantial.


LIQUIDITY AND CAPITAL RESOURCES

         Since our inception, we have financed our operations primarily through
a public offering and private placements of our debt and equity securities,
payments from collaborative agreements, and interest income earned on cash and
investment balances. Our principal sources of liquidity are cash and cash
equivalents, time deposits and short- and long-term debt securities which, net
of a $221,000 restricted time deposit, totaled $32,821,000 as of March 31, 2000.
Working capital at March 31, 2000 was $29,557,000. In the first quarter of 2000,
Corvas received $10,650,000 in total net proceeds from the exercise of warrants
held by institutional investors. We invest available cash in accordance with an
investment policy set by our Board of Directors, which has established
objectives to preserve principal, maintain adequate liquidity and maximize
income. Our policy provides guidelines concerning the quality, term and
liquidity of investments. We presently invest our excess cash primarily in
government-backed debt instruments and, to a smaller degree, in debt instruments
of corporations with strong credit ratings.

         In the three months ended March 31, 2000, net cash of $3,299,000 was
used in operating activities and net cash of $11,833,000 was used in investing
activities. Net cash provided by financing activities was $14,691,000 in this
same period, primarily due to the exercise of warrants which resulted in total
net proceeds of $10,650,000, as well as $1,480,000 from stock option exercises
and $2,561,000 of profit recovered from the inadvertent purchase and sale of our
stock within a six month time period.

         In the second half of 1999 we issued and sold, in two separate private
financings, a total of 2,000,000 shares of common stock for $2.50 per share and
5.5% convertible senior subordinated notes, due in August 2006, in an aggregate
principal amount of $10,000,000. Total net proceeds of $14,740,000 were raised
in these financings. Interest on the outstanding principal amounts of these
notes accretes at 5.5% per annum, compounded semi-annually, with interest
payable upon redemption or conversion. Upon maturity, these notes will have an
accreted value of $14,572,000. At our option, the accretion on both notes may be
paid in cash or in our common stock priced at the then-current market price. We
have agreed to pay any applicable withholding taxes that may be required in
connection with the accretion, which are estimated and accrued at 30% of the
annual accretion. At the option of the note holder, the principal of both notes
is convertible into shares of Corvas common stock at $3.25 per share, subject to
certain adjustments. We may call the notes for redemption anytime after August
18, 2002.


                                       6
<PAGE>

         We expect that we will continue to incur substantial additional costs
in the foreseeable future due to, among other factors, costs related to ongoing
and planned clinical trials and other research and development activities. Over
the next several years, we expect these costs will result in additional
operating losses and negative cash flows from operations. We are continuing to
pursue additional collaborative relationships, particularly for our NAP program.
We currently believe that our existing capital resources and projected interest
income should be sufficient to satisfy our anticipated funding requirements for
more than two years. In the future, we may also receive additional funds from
milestone payments and royalties on sales of products in connection with our
alliances. However, we may not receive any additional amounts under our existing
or any future alliances, and we may not be successful in raising additional
capital through strategic or other financings or through collaborative
relationships. Additionally, our expected cash requirements may vary materially
from those now anticipated.

         Ongoing strategic collaborations with Schering-Plough and Pfizer
provide for payments to us if certain milestones are met. In addition to future
milestones, we may also receive royalties on product sales in connection with
our existing alliances, as well as from any future alliances. If all the
milestones on all of our existing collaborations are met, Corvas could receive a
maximum of $71,394,000 in future milestone payments and research and development
funding over the next several years. However, our existing collaborations may
not be successful, we may not receive any future milestones or other payments
related to our collaborative agreements, and our collaborations may not continue
(since the existing agreements are terminable at the option of our collaborators
upon certain events).

         Our future capital requirements will depend on many factors, including:

         o the scientific progress in, and magnitude of, our drug discovery
           programs;
         o the scope and results of our preclinical testing and clinical trials;
         o the time and costs involved in obtaining regulatory approvals;
         o the costs of filing, prosecuting, maintaining and enforcing patents;
         o the progress of competing technology and other market developments;
         o our ability to establish and maintain collaborative or licensing
           arrangements;
         o any changes in our existing collaborative relationships;
         o the cost of manufacturing scale-up; and
         o the effectiveness of our activities and arrangements, or those of our
           collaborative partners, to commercialize our products.

         To continue our long-term product development efforts, we must raise
substantial additional funding either through collaborative arrangements or
through public or private financings. Our ability to raise additional funds
through sales of securities depends in part on investors' perceptions of the
biotechnology industry, in general, and of Corvas, in particular. The market for
securities of biotechnology companies, including Corvas, has historically been
highly volatile, especially recently, and, accordingly, additional funding may
not be available on acceptable terms or at all. If additional funds are raised
by issuing securities, our stockholders will experience dilution, which may be
substantial. We may enter into additional collaborative relationships to develop
and commercialize some or all of our current or future technologies or products.
We may not be able to establish such relationships on satisfactory terms, if at
all, and agreements with collaborators may not successfully reduce our funding
requirements. In addition, we have not attempted to establish bank financing
arrangements, and we may not be able to establish such arrangements on
satisfactory terms, if at all. If adequate funds are not available in the


                                        7
<PAGE>

future, we may be required to significantly delay, scale back or discontinue one
or more of our drug discovery programs, clinical trials or other aspects of our
operations. We could also be forced to seek collaborative partners for programs
at an earlier stage than would be desirable to maximize the rights to future
product candidates retained by Corvas.

NEW ACCOUNTING STANDARDS

         In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" (SAB
101), which includes certain revenue recognition issues related to biotechnology
companies. We are currently evaluating the impact of SAB 101 on our reported
results.


Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
        MARKET RISK

         We invest our excess cash primarily in short-term, high quality fixed
income investments that are held to maturity. We do not invest in derivative
financial instruments or any other market risk sensitive instruments. Interest
income earned on our investment portfolio is affected by changes in the general
level of interest rates. We believe that our interest rate market risk is
limited, and that we are not exposed to significant changes in fair value
because our investments are held to maturity. The fair value of each investment
approximates its amortized cost.

         We have assumed that the similar nature of our investments warrants
aggregation for purposes of interest rate sensitivity. The principal amount of
all held to maturity investments as of March 31, 2000 is $32,602,000, and they
have a weighted-average interest rate of 6.10%.

         Considering our investment balances as of March 31, 2000, rates of
return and the fixed rate nature of the convertible notes payable that were
issued in the second half of 1999, an immediate 10% change in interest rates
would not have a material impact on our financial condition or results of
operations.

         Underlying market risk exists related to an increase in our stock price
or an increase in interest rates that may make conversion of the convertible
notes payable into common stock beneficial to the holder. Conversion of the
convertible notes payable would have a dilutive effect on ownership of our
stock.


                                       8
<PAGE>

                          PART II -- OTHER INFORMATION


Item 1.  LEGAL PROCEEDINGS

         None

Item 2.  CHANGES IN SECURITIES

         In February 2000, 1,000,000 shares of Series A Convertible Preferred
Stock and 250,000 shares of Series B Convertible Preferred Stock held by
Schering-Plough automatically converted into common stock after the market price
of our common stock exceeded $7.50 and $12.00 per share, respectively, for 10
consecutive trading days. Each share of preferred stock converted into one share
of common stock.

Item 3.  DEFAULTS UPON SENIOR SECURITIES

         None

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None

Item 5.  OTHER INFORMATION

         None

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

         a.  Exhibits

         Exhibit Number              Description
         --------------              -----------

             10.56                   Letter of Agreement between the Company and
                                     Schering Corporation and Schering-Plough,
                                     Ltd., dated as of March 30, 2000.

             27.1                    Financial Data Schedule

         b.  Reports on Form 8-K

         There were no reports on Form 8-K filed for the quarter ended March 31,
2000.


                                       9
<PAGE>

                                   SIGNATURES



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


                                       CORVAS INTERNATIONAL, INC.



Date: May 12, 2000                     By: /s/ RANDALL E. WOODS
                                          --------------------------------------
                                           Randall E. Woods
                                           President and Chief Executive Officer




Date: May 12, 2000                     By: /s/ CAROLYN M. FELZER
                                          --------------------------------------
                                           Carolyn M. Felzer
                                           Senior Director of Finance
                                           Principal Financial Officer


                                       10