<PAGE>


                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION

                                Washington, D.C. 20549

                                       FORM 10-Q


 X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT OF 1934

     For the quarterly period ended September 30, 1997 or
                                    ------------------

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

     For the transition period from ____________ to ___________.

                            Commission File Number 0-11839
                                           

                           ALZA TTS RESEARCH PARTNERS, LTD.                   
             ------------------------------------------------------------
                (Exact name of registrant as specified in its charter)
                                           

                  California                         94-2863497          
       ---------------------------------       ----------------------
         (State or other jurisdiction             I.R.S. Employer
       of incorporation or organization)       Identification Number)
                                           

         950 Page Mill Road, P.O. Box 10950, Palo Alto, CA, 94303-0802         
         -------------------------------------------------------------
             (Address of principal executive offices)       (Zip Code)
                                           

         Registrant's telephone number, including area code  (415) 494-5300  
                                                             --------------

    Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

                                  Yes X    No
                                     ---     ---
<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS


                           ALZA TTS RESEARCH PARTNERS, LTD.
                               (A limited partnership)
                                           
                     Statements of Revenue Collected and Expenses
                                     (unaudited)

<TABLE>
<CAPTION>

                                          Three Months Ended September 30,     Nine Months Ended September 30,
                                                1997          1996                  1997            1996
                                             ----------    ----------            ----------      ----------
<S>                                     <C>            <C>                      <C>            <C>
REVENUE:
    Royalty income                         $ 2,437,181   $  1,466,697             $6,429,638     $4,505,437
    License fee                                      -              -                250,000              -
    Interest income                              2,110          7,054                 20,781         20,912
                                           -----------   ------------             ----------     ----------

    Total revenue                            2,439,291      1,473,751              6,700,419      4,526,349


EXPENSES:
    General and administrative                  20,973         12,711                 87,805         58,602
                                           -----------   ------------             ----------     ----------

NET INCOME                                 $ 2,418,318   $  1,461,040             $6,612,614     $4,467,747
                                           -----------   ------------             ----------     ----------
                                           -----------   ------------             ----------     ----------

Allocation of net income: 

    General Partner                      $      24,183  $      14,610             $   66,126     $   44,678
    Class A Limited Partners                 2,287,729      1,412,245              6,255,533      4,388,884
    Class B Limited Partner                    106,406         34,185                290,955         34,185
                                           -----------   ------------             ----------     ----------

NET INCOME                                 $ 2,418,318   $  1,461,040             $6,612,614     $4,467,747
                                           -----------   ------------             ----------     ----------
                                           -----------   ------------             ----------     ----------

NET INCOME PER CLASS A 
    LIMITED PARTNERSHIP UNIT               $    714.91   $     441.33             $ 1,954.85     $ 1,371.53
                                           -----------   ------------             ----------     ----------
                                           -----------   ------------             ----------     ----------
</TABLE>


                               See accompanying notes.

                                         -2-
<PAGE>

                           ALZA TTS RESEARCH PARTNERS, LTD.
                               (A limited partnership)

                        Statements of Assets, Liabilities and
                             Partners' Capital (Deficit)


                                                   September 30,  December 31,
ASSETS                                                 1997           1996
                                                   -------------  ------------
                                                    (unaudited)

Current assets - Cash                              $   98,427     $   77,586
                                                   ----------     ----------
                                                   ----------     ----------

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Current liabilities - Payable to
    ALZA Corporation                               $   20,973     $  146,381


Partners' capital (deficit):
    Class A Limited Partners,
       3,200 units outstanding                         68,445        (69,904)
    Class B Limited Partner                             8,239          1,805
    General Partner                                       770           (696)
                                                   ----------     ----------

    Total partners' capital (deficit)                  77,454        (68,795)
                                                   ----------     ----------

    Total liabilities and partners'
     capital (deficit)                             $   98,427     $   77,586
                                                   ----------     ----------
                                                   ----------     ----------

                               See accompanying notes.

                                          -3-
<PAGE>

                           ALZA TTS RESEARCH PARTNERS, LTD.
                               (A limited partnership)
                                           
                       Statement of Partners' Capital (Deficit)
                                     (unaudited)

<TABLE>
<CAPTION>

                                    Class A         Class B                        Total
                                    Limited         Limited        General       Partners'
                                    Partners        Partner        Partner        Capital
                                  ------------    -----------    -----------   -------------
<S>                            <C>              <C>           <C>           <C>
BALANCE,
    DECEMBER 31,
    1994                         $  (580,907)    $  348,824      $  (2,364)  $   (234,447)


Net income                         4,318,031              -         43,616      4,361,647  
Payments to
    partners                      (4,073,856)      (189,481)       (43,064)    (4,306,401)
                                 -----------     ----------      ---------   ------------
BALANCE,
    DECEMBER 31,
    1995                            (336,732)       159,343         (1,812)      (179,201)

Net income                         6,035,020        110,749         62,079      6,207,848  
Payments to
    partners                      (5,768,192)      (268,287)       (60,963)    (6,097,442)
                                 -----------     ----------      ---------   ------------
BALANCE,
    DECEMBER 31,
    1996                             (69,904)         1,805           (696)       (68,795)

Net income                         6,255,533        290,955         66,126      6,612,614
Payments to
    partners                      (6,117,184)      (284,521)       (64,660)    (6,466,365)
                                 -----------     ----------      ---------   ------------
BALANCE,
    SEPTEMBER 30,
    1997                         $    68,445     $    8,239      $     770   $     77,454
                                 -----------     ----------      ---------   ------------
                                 -----------     ----------      ---------   ------------
</TABLE>


                               See accompanying notes.

                                         -4-

<PAGE>

                           ALZA TTS RESEARCH PARTNERS, LTD.
                               (A limited partnership)

                               Statements of Cash Flows
                For the Nine Months Ended September 30, 1997 and 1996
                             Increase (Decrease) in Cash
                                     (unaudited)



                                             Nine Months Ended September 30,
                                                   1997           1996    
                                               ------------   ------------
    Cash flows from operating activities:

    Net income                                $ 6,612,614    $ 4,467,747  

    Adjustments to reconcile net income
       to net cash used in operating 
       activities:

    Payments to Partners                       (6,466,365)    (4,384,516)

    Decrease in liabilities:
       Payable to ALZA Corporation               (125,408)       (62,317) 
                                              -----------    -----------
    Net cash provided by operating
       activities                                  20,841         20,914  

    Cash at beginning of period                    77,586         48,245  
                                              -----------    -----------
    
    Cash at end of period                     $    98,427    $    69,159  
                                              -----------    -----------
                                              -----------    -----------
    

                               See accompanying notes.

                                        -5-
<PAGE>


                                                ALZA TTS Research Partners, Ltd.
                                                              September 30, 1997

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


1.  BASIS OF PRESENTATION                               

    INTRODUCTION

    The financial statements of ALZA TTS Research Partners, Ltd. (the 
"Partnership") included herein should be read in conjunction with the audited 
financial statements included in the Partnership's Annual Report on Form 10-K 
for the year ended December 31, 1996.  The accompanying interim financial 
statements of the Partnership for the three and nine months ended September 
30, 1997 and September 30, 1996 are unaudited but include all adjustments 
which the General Partner (ALZA Development Corporation, a wholly-owned 
subsidiary of ALZA Corporation) believes necessary for fair presentation.  
These financial statements have been prepared on a modified basis of cash 
receipts and disbursements, which is a comprehensive basis of accounting 
other than generally accepted accounting principles in that royalty revenues 
are not recognized until the related cash is received.

    ORGANIZATION

    The Partnership was formed on December 30, 1982 to conduct research and 
development on products combining the proprietary transdermal therapeutic 
system technology of ALZA Corporation ("ALZA") with certain generic compounds 
(the "TTS Partnership Products").  On April 22, 1983, the closing of the sale 
to the public of Class A Limited Partnership units took place.  At September 
30, 1997 the Partnership's capital consisted of 3,200 Class A Limited 
Partnership units purchased for $5,000 each, an original investment by the 
Class B Limited Partner of $750,000 and an original investment by the General 
Partner of $169,192. Under the terms of the Agreement of Limited Partnership 
(the "Partnership Agreement"), net losses were allocated as follows: 


                                       -6-
<PAGE>

first, 1% to the General Partner and 99% to the Class A Limited Partners and 
then, after the capital account of the Class A Limited Partners was reduced 
to zero, 1% to the General Partner and 99% to the Class B Limited Partner.  
After the capital accounts of the Class A and Class B Limited Partners were 
reduced to zero, losses were allocated 100% to the General Partner.

    Under the terms of the Partnership Agreement, net income is allocated in 
the inverse order of the losses previously allocated.  To the extent losses 
were allocated 100% to the General Partner, net income was allocated 100% to 
the General Partner in an amount equal to such losses prior to allocation of 
net income to the Class A and Class B Limited Partners.  Then, to the extent 
losses were allocated 99% to the Class B Limited Partner, net income was 
allocated 99% to the Class B Limited Partner (and 1% to the General Partner) 
in an amount equal to such losses prior to any net income being allocated to 
the Class A Limited Partners.  Then, to the extent losses were allocated 99% 
to the Class A Limited Partners, net income was allocated 99% to the Class A 
Limited Partners (and 1% to the General Partner.)  As provided in the 
Partnership Agreement, once the amount of net income allocated to the Class A 
Limited Partners and the General Partner equaled previously allocated losses 
(which occurred during the third quarter of 1996), subsequent income began to 
be allocated 99% to the Class A and Class B Limited Partners, pro rata, and 
1% to the General Partner.

    The General Partner is required by the Partnership Agreement to 
distribute, on a quarterly basis, all of the Partnership's Excess Cash (which 
consists of all cash received by the Partnership less all amounts expended in 
the conduct of the Partnership's business, including administrative expenses, 
and working capital) in proportion to the Partners' respective capital 
contribution percentages.


                                       -7-
<PAGE>

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


    LIQUIDITY AND CAPITAL RESOURCES

    All of the Partnership's Total Funds (as defined in the research and 
development contract between ALZA and the Partnership) have been utilized in 
the development of TTS Partnership Products.  Total Funds consisted of the 
net proceeds from the sale by the Partnership of the Class A Limited 
Partnership units, the General Partner's and Class B Limited Partner's 
capital contributions to the Partnership, and interest and other income 
earned through temporary investment of Partnership funds, less all necessary 
expenses of operating the Partnership.

    In accordance with the agreements between ALZA and the Partnership, the 
Partnership is entitled to receive 4% of net sales of Duragesic-Registered 
Trademark- (fentanyl transdermal system) CII and Testoderm-Registered 
Trademark-(testosterone transdermal system).  For the quarter ended September 
30, 1997, cash provided from royalties from Duragesic-Registered Trademark- 
and Testoderm-Registered Trademark- increased to $2,437,181 from $1,466,697 
for the same period of 1996.  The increase is due to increased sales of 
Duragesic-Registered Trademark-.  Excess Cash (defined as cash received by 
the Partnership, less all amounts expended in the conduct of the 
Partnership's business, including administrative expenses, and working 
capital) is distributed to the Partners.  Because the Partnership does not 
make commercialization decisions regarding TTS Partnership Products, its 
potential royalty stream and income are not within the Partnership's control. 

    Janssen Pharmaceutica, Inc. (together with its affiliates "Janssen"), a 
subsidiary of Johnson and Johnson, markets Duragesic-Registered Trademark- in 
the United States, Canada and in more than 25 other countries worldwide.  The 
product has been cleared for marketing in five additional countries. 
Submissions for marketing clearance 

                                       -8-
<PAGE>

are on file in a number of other countries. ALZA Pharmaceuticals, the sales 
and marketing division of ALZA, co-promotes Duragesic-Registered Trademark- 
in the United States with Janssen.

    ALZA, through ALZA Pharmaceuticals, markets Testoderm-Registered 
Trademark-in the United States.  ALZA Pharmaceuticals will market 
Testoderm-Registered Trademark- through distributors outside the United 
States.  Commercialization agreements covering 17 Asian countries (excluding 
Japan) were signed with Scitech Genetics Limited and Pharmagenesis, Inc. in 
1995.  Scitech Genetics launched Testoderm-Registered Trademark- in Singapore 
in January 1997.  An agreement was signed during the fourth quarter of 1996 
with Ferring NV, pursuant to which Ferring has the right to distribute 
Testoderm-Registered Trademark- in 12 European countries.  
Testoderm-Registered Trademark- has been cleared for marketing in more than 
ten European countries.

    TTS Partnership Products other than the Duragesic-Registered Trademark- 
and Testoderm-Registered Trademark- products were at very early stages of 
development when the Partnership's available funds were exhausted in 1987. 
Substantial expenditures would be required if the development of these 
products were to be completed and the products commercialized.  For these 
products at early stages of development, no arrangements have been made with 
development partners, and further activities are not contemplated at this 
time.

    The Partnership granted ALZA an option (the "License Option") to acquire 
a license for any or all of the TTS Partnership Products, on a 
product-by-product basis.  In 1990, ALZA exercised its option to acquire 
worldwide licenses (with the right to sublicense) to make, use and sell the 
Duragesic-Registered Trademark- and Testoderm-Registered Trademark- products. 
These licenses for each product are exclusive until thirteen years after the 
actual reduction to practice of such product and become nonexclusive 
thereafter.  For Testoderm-Registered Trademark-, the period of ALZA's 
exclusivity ends July 26, 

                                       -9-
<PAGE>

1998.  For Duragesic-Registered Trademark-, the period of ALZA's exclusivity 
ends December 4, 1998.

    If ALZA's license for a product becomes nonexclusive, the General Partner 
will need to determine whether to appoint others to market and sell the 
product. Under ALZA's agreement with Janssen covering the 
Duragesic-Registered Trademark-product, if the product were to be introduced 
by a third party after ALZA's loss of exclusivity from the Partnership, 
ALZA's royalty rate due from Janssen with respect to Duragesic-Registered 
Trademark- would drop significantly.  The Partnership's right to receive 4% 
of net sales from ALZA would not change.  It is likely that ALZA Development 
Corporation, a wholly-owned subsidiary of ALZA, would have a conflict of 
interest in connection with any Partnership decision as to whether the 
product should be licensed to a third party in addition to ALZA.  In such an
event, ALZA Development Corporation would likely resign as the General 
Partner and the Partnership would have to appoint a new general partner.

    The General Partner has an option (the "Purchase Option"), exercisable at 
any time, to purchase all (but not less than all) of the Limited Partners' 
interests in the Partnership.  The exercise price is $120 million, less 
Excess Cash distributed to the Limited Partners.  The exercise price will be 
paid by check to the Limited Partners.  The General Partner is under no 
obligation to exercise the Purchase Option, and the General Partner will 
exercise the Purchase Option only if ALZA deems such exercise to be in its 
best interest.  The General Partner has not made a determination as to 
whether to exercise the Purchase Option.

    RESULTS OF OPERATIONS

    From 1982 through 1987 the Partnership utilized all of the funds raised 
at the time of its formation, primarily to fund product development at ALZA.  
Until the 

                                       -10-
<PAGE>

introduction of Duragesic-Registered Trademark- in 1991, the Partnership had 
been without cash for either operations or distribution since 1987.

    The Partnership earned net income of $2,418,318 and $6,612,614 for the 
three and nine months ended September 30, 1997 as compared with $1,461,040 
and $4,467,747 for the three and nine months ended September 30, 1996.  The 
Partnership's royalty income received from ALZA based on Janssen's reported 
net sales of Duragesic-Registered Trademark- and ALZA's net sales of 
Testoderm-Registered Trademark- was $2,437,181 and $6,429,638 for the three 
and nine months ended September 30, 1997 as compared with $1,466,697 and 
$4,505,437 for the three and nine months ended September 30, 1996.  The 
increase is due to increased sales of Duragesic-Registered Trademark-.  In 
addition, during the second quarter of 1997, the Partnership received a 
license fee from ALZA relating to Testoderm-Registered Trademark- as 
described below.  As stated above, the Partnership does not make 
commercialization decisions regarding TTS Partnership Products; therefore, 
its potential royalty stream and income are not within the Partnership's 
control.

    During the fourth quarter of 1996, an agreement was signed with Ferring 
NV pursuant to which Ferring has the right to distribute Testoderm-Registered 
Trademark- in 12 European countries.  As a result of the execution of the 
agreement with Ferring, during the second quarter of 1997, the Partnership 
received a license fee of $250,000 from ALZA pursuant to the terms of the 
License Agreement between the Partnership and ALZA for Testoderm-Registered 
Trademark-.

    The Partnership had interest income of $2,110 and $20,781 for the three 
and nine months ended September 30, 1997 as compared with interest income of 
$7,054 and $20,912  for the three and nine months ended September 30, 1996. 

    General and administrative expenses for the continuing administrative
support required for the Partnership are payable to ALZA under an administrative

                                       -11-
<PAGE>

services agreement between ALZA and the Partnership.  General and 
administrative expenses were $20,973 and $87,805 for the three and nine 
months ended September 30, 1997 as compared with $12,711 and $58,602 for the 
three and nine months ended September 30, 1996.  The increase is due to 
normal quarterly fluctuations in addition to the timing of certain payments, 
including payments to the Partnership's auditor for professional services and 
payments relating to the filing of the Partnership's annual report on Form 
10-K. 

    Between December 1987 (at which time all Partnership funds, raised at the 
time of its formation, had been utilized) and December 1991 (when the 
Partnership began receiving royalty revenues on TTS Partnership Product 
sales), the costs for administrative services totaled $295,000.  Such costs 
were due and payable to ALZA upon invoice but were not paid when due.  In 
1991, ALZA agreed that the costs could be reimbursed over time, initially, at 
a quarterly rate of $5.00 per Partnership unit, which were deducted from 
Excess Cash from December 1991 through December 1993.  In March 1994, the 
quarterly rate was increased to $10.00 per Partnership unit.  In June 1996, 
it was determined that a further increase in the reimbursement rate was 
necessary to fully reimburse ALZA for past administrative costs on a more 
timely basis.  Therefore, beginning with the September 1996 distribution, a 
quarterly deduction has been made from Excess Cash in an amount equal to the 
actual administrative expenses of the Partnership for the previous quarter 
plus the $10.00 per Partnership unit to repay past administrative costs.  
ALZA has not charged any interest on the past due amounts.  All remaining past
administrative costs were paid as of September 30, 1997.  As of September 30, 
1997, payments for past and current administrative expenses totaled $230,823. 
In 1994, 1995 and 1996, payments made to ALZA for past and current 
administrative expenses totaled $135,307, $138,607 and $172,459, respectively.

                                       -12-
<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                              September 30, 1997


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         None.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

  (a)    Exhibits:

         27  Financial Data Schedule

  (b)    Reports on Form 8-K:

         None.


                                       -13-
<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                              September 30, 1997

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

                                             ALZA TTS Research Partners, Ltd.
                                                        (Registrant)

                                             By:  ALZA Development Corporation
                                                       General Partner

                                                  By: /s/ David R. Hoffmann
                                                     ----------------------
                                                        David R. Hoffmann
                                                    President (Chief Executive
                                                     Officer), Chief Financial
                                                       Officer and Director


    Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the 
registrant by its General Partner and in the capacities and on the dates 
indicated.

Date:  November 13, 1997                          By: /s/ David R. Hoffmann   
                                                     ----------------------
                                                        David R. Hoffmann
                                                    President (Chief Executive
                                                     Officer), Chief Financial
                                                       Officer and Director


Date:  November 13, 1997                          By: /s/ James W. Young   
                                                     --------------------
                                                        James W. Young
                                                      Vice President and
                                                           Director

                                       -14-
<PAGE>

                                    Exhibit Index
                                           
                                           
                                       Exhibit

    27   Financial Data Schedule




                                       -15-