<PAGE>

                                   UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION

                                Washington, D.C. 20549

                                       FORM 10-Q


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

          For the quarterly period ended March 31, 1998 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  (650) 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 March 31,
                                                     1998           1997
                                                -------------   ------------
<S>                                             <C>             <C>
REVENUE:
     Royalty income                              $ 2,644,646     $ 2,081,221
     Interest income                                  11,345           8,359
                                                 -----------     -----------
     Total revenue                                 2,655,991       2,089,580


EXPENSES:
     General and administrative                       37,251          40,003
                                                 -----------     -----------

NET INCOME                                       $ 2,618,740     $ 2,049,577
                                                 -----------     -----------
                                                 -----------     -----------

ALLOCATION OF NET INCOME: 

     General Partner                               $  26,187       $  20,496
     Class A Limited Partners                      2,477,328       1,938,900
     Class B Limited Partner                         115,225          90,181
                                                 -----------     -----------

NET INCOME                                       $ 2,618,740     $ 2,049,577
                                                 -----------     -----------
                                                 -----------     -----------

NET INCOME PER CLASS A 
     LIMITED PARTNERSHIP UNIT                      $  774.17       $  605.91
                                                 -----------     -----------
                                                 -----------     -----------

</TABLE>

                              See accompanying notes.

                                      -2-

<PAGE>

                          ALZA TTS RESEARCH PARTNERS, LTD.
                              (A limited partnership)
                                          
                       Statements of Assets, Liabilities and
                                 Partners' Capital 

<TABLE>
<CAPTION>

                                                   March 31,   December 31,
ASSETS                                               1998           1997   
                                                  -----------  ------------
                                                  (unaudited)
<S>                                               <C>           <C>

Current assets - Cash                             $  120,454      $ 109,262
                                                  ----------      ---------
                                                  ----------      ---------
LIABILITIES AND PARTNERS' CAPITAL

Current liabilities - Payable to
     ALZA Corporation                              $  37,098      $  17,635


Partners' capital:
     Class A Limited Partners,
     3,200 units outstanding                          74,007         81,863
     Class B Limited Partner                           8,500          8,864
     General Partner                                     849            900
                                                  ----------      ---------
     Total partners' capital                          83,356         91,627
                                                  ----------      ---------
                                                  $  120,454      $ 109,262
                                                  ----------      ---------
                                                  ----------      ---------

</TABLE>

                               See accompanying notes.

                                      -3-

<PAGE>

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

<TABLE>
<CAPTION>

                                 Class A        Class B         Total
                                 Limited        Limited        General      Partners'
                                Partners        Partner        Partner       Capital
                             --------------  ------------   ------------  ------------
<S>                          <C>             <C>            <C>           <C>

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                     8,469,527        393,932         89,530      8,952,989
Payments to partners          (8,317,760)      (386,873)       (87,934)    (8,792,567)
                             -----------     ----------      ---------    -----------
BALANCE,
  DECEMBER 31, 1997               81,863          8,864            900         91,627

Net income                     2,477,328        115,225         26,187      2,618,740
Payments to partners          (2,485,184)      (115,589)       (26,238)    (2,627,011)
                             -----------     ----------      ---------    -----------
BALANCE,
  MARCH 31, 1998               $  74,007       $  8,500         $  849      $  83,356
                             -----------     ----------      ---------    -----------
                             -----------     ----------      ---------    -----------

</TABLE>

                               See accompanying notes.

                                      -4-

<PAGE>

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

                            Statements of Cash Flows
                For the Three Months Ended March 31, 1998 and 1997
                           Increase (Decrease) in Cash
                                  (unaudited)

<TABLE>
<CAPTION>

                                                Three Months Ended March 31,
                                                    1998           1997    
                                                -------------  -------------
<S>                                             <C>            <C>

  Cash flows from operating activities:
  
    Net income                                   $ 2,618,740    $ 2,049,577
  
    Adjustments to reconcile net income
      to net cash used in operating
      activities:
  
    Payments to Partners                          (2,627,011)    (2,017,704)
  
    Increase (decrease) in liabilities:
      Payable to ALZA Corporation                     19,463        (23,454)
                                                 -----------    -----------
  Net cash provided by operating
    activities                                        11,192          8,419
  
  Cash at beginning of period                        109,262         77,586
                                                 -----------    -----------
  
  Cash at end of period                          $   120,454    $    86,005
                                                 -----------    -----------
                                                 -----------    -----------

</TABLE>

                              See accompanying notes.

                                      -5-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998


 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, 1997.  The accompanying interim
     financial statements of the Partnership for the three months ended March
     31, 1998 and March 31, 1997 are unaudited but include all adjustments which
     the General Partner (ALZA Development Corporation, a wholly-owned
     subsidiary of ALZA Corporation ("ALZA")) 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 ALZA's proprietary transdermal
     therapeutic systems technology 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 March 31, 1998,
     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:  first, 1% to the General Partner and 99% 

                                      -6-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

     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>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

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), the two major product
     development programs funded by the Partnership.  In addition, in 1996, ALZA
     Pharmaceuticals introduced Testoderm-Registered Trademark- with Adhesive as
     an addition to the Testoderm-Registered Trademark- line. 
     Testoderm-Registered Trademark- with Adhesive was developed without
     Partnership funds.  However, regulatory clearance of the product was
     obtained through a supplemental New Drug Application to the
     Testoderm-Registered Trademark- New Drug Application, and ALZA makes the
     same payment to the Partnership with respect to Testoderm-Registered
     Trademark- with Adhesive as it does with respect to the original
     Testoderm-Registered Trademark- product.

     For the quarter ended March 31, 1998, cash provided from royalties
     increased to $2,644,646 from $2,081,221 for the same period of 1997. 
     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 

                                      -8-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

     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 30 other countries worldwide.
     The product has been cleared for marketing in thirteen additional
     countries.  Submissions for marketing clearance 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-and Testoderm-Registered Trademark- with Adhesive  in the 
     United States. Testoderm-Registered Trademark- has also been cleared for 
     marketing in China, Singapore and in more than ten European countries. 
     Testoderm-Registered Trademark- with Adhesive has also been cleared for 
     marketing in Germany and Singapore.  ALZA Pharmaceuticals plans to 
     market the Testoderm-Registered Trademark- line through distributors 
     outside the United States.  Commercialization agreements currently 
     covering the distribution of the Testoderm-Registered Trademark- line in 
     14 Asian countries (excluding Japan) have been signed with Scitech 
     Genetics Limited ("Scitech") and Pharmagenesis, Inc.  Scitech launched 
     Testoderm-Registered Trademark- in Singapore in January 1997.  An 
     agreement was signed during the fourth quarter of 1996 with Ferring NV 
     (together with its affiliates "Ferring"), pursuant to which Ferring has 
     the right to distribute Testoderm-Registered Trademark- and 
     Testoderm-Registered Trademark- with Adhesive in 12 European countries.  
     On April 2, 1998, Ferring launched Testoderm-Registered Trademark- with 
     Adhesive in Germany.

     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 

                                      -9-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

     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.  Each license is exclusive until thirteen years after the actual
     reduction to practice of the relevant product and nonexclusive thereafter. 
     For Testoderm-Registered Trademark-, the period of ALZA's exclusivity ends
     July 26, 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 would have a conflict of
     interest in connection with any Partnership decision as to whether
     Testoderm-Registered Trademark- or Duragesic-Registered Trademark- 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 a
     new general partner would have to be appointed.

     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 

                                      -10-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

     the Limited Partners.  As of March 31, 1998, the exercise price would be 
     $27,216 per $5,000 unit.  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.

     The Partnership's internal computer systems are not currently year 2000
     compliant.  However, the Partnership is exploring methods to achieve year
     2000 compliance and does not expect the cost of ensuring year 2000
     compliance to be significant.  There is no guarantee that the systems of
     the General Partner and other companies with which the Partnership either
     directly or indirectly interacts will not be affected by computer problems
     arising from the year 2000.  However, the Partnership does not expect its
     financial condition or results of operations to be materially adversely
     affected by year 2000 issues.


     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 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 during the first quarter of 1998 of
     $2,618,740 as compared to $2,049,577 for the first quarter of 1997.  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-  and Testoderm-Registered Trademark- with
     Adhesive was $2,644,646 during the first quarter of 1998 as compared to
     $2,081,221 for the first quarter of 1997.  The increase in royalty income
     is due to increased sales of Duragesic-Registered Trademark-.  As stated
     above, the Partnership does not make commercialization decisions regarding
     TTS Partnership Products; 

                                      -11-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

     therefore, its potential royalty stream and income are not within the 
     Partnership's control.  

     The Partnership had interest income of $11,345 for the first quarter of
     1998 as compared to interest income of $8,359 for the first quarter of
     1997.  The increase was due to a higher level of cash available for
     investment during the first quarter of 1998 as a result of the higher
     royalty payment received from ALZA during the quarter.

     General and administrative expenses for the continuing administrative
     support required for the Partnership are payable to ALZA under an
     administrative services agreement between ALZA and the Partnership. 
     General and administrative expenses were $37,251 for the first quarter of
     1998 as compared to $40,003 for the first quarter of 1997.  Current general
     and administrative expenses are paid to ALZA in the quarter following the
     quarter in which the expenses were incurred.

                                      -12-

<PAGE>

                                               ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998


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.
                                                                 March 31, 1998

                                    SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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 Section 13 or 15(d) 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:  May 14, 1998                        By: /s/ David R. Hoffmann
                                               -------------------------------
                                                   David R. Hoffmann
                                               President (Chief Executive
                                                Officer), Chief Financial
                                                  Officer and Director


Date:  May 14, 1998                        By: /s/ James W. Young
                                               -------------------------------
                                                   James W. Young
                                                 Vice President and 
                                                      Director


Date:  May 14, 1998                         By: /s/ Robert M. Myers
                                               -------------------------------
                                                    Robert M. Myers
                                                  Vice President and
                                                       Director 


                                      -14-

<PAGE>

                                                ALZA TTS Research Partners, Ltd.
                                                                 March 31, 1998

                                   Exhibit Index
                                          
                                          


  Exhibit
  -------


     27   Financial Data Schedule




                                      -15-