<PAGE>


                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION

                                Washington, D.C. 20549

                                      FORM 10-Q


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

    For the quarterly period ended March 31, 1997 or

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

    For the transition period from ____________ to ___________.

                            Commission File Number 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 March 31,
                                                1997              1996 
                                            ------------      ------------
<S>                                         <C>               <C>
REVENUE:
    Royalty income                           $2,081,221        $1,217,549
    Interest income                               8,359             5,564
                                            ------------      ------------
    Total revenue                             2,089,580         1,223,113

EXPENSES:
    General and administrative                   40,003            27,450
                                            ------------      ------------
NET INCOME                                   $2,049,577        $1,195,663
                                            ------------      ------------
                                            ------------      ------------
Allocation of net income:
    General Partner                          $   20,496        $   11,957
    Class A Limited Partners                  1,938,900         1,183,706
    Class B Limited Partner                      90,181                 -
                                            ------------      ------------
NET INCOME                                   $2,049,577        $1,195,663
                                            ------------      ------------
                                            ------------      ------------
NET INCOME PER CLASS A
    LIMITED PARTNERSHIP UNIT                 $   605.91        $   369.91
                                            ------------      ------------
                                            ------------      ------------

</TABLE>

                               See accompanying notes.



                                        -2-

<PAGE>


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

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

<TABLE>
<CAPTION>


                                               March 31,      December 31,
ASSETS                                           1997            1996
                                             -------------   --------------
                                              (unaudited) 
<S>                                          <C>             <C>
Current assets - Cash                          $  86,005      $   77,586  
                                             -------------   --------------
                                             -------------   --------------
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Current liabilities - Payable to
    ALZA  Corporation                          $ 122,927       $ 146,381  


Partners' capital (deficit):
    Class A Limited Partners,
         3,200 units outstanding                 (39,740)        (69,904)
    Class B Limited Partner                        3,207           1,805
    General Partner                                 (389)           (696)
                                             -------------   --------------
    Total partners' deficit                      (36,922)        (68,795)
                                             -------------   --------------
                                                $ 86,005       $  77,586
                                             -------------   --------------
                                             -------------   --------------

</TABLE>

                               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                   1,938,900        90,181          20,496       2,049,577  
Payments to
    partners                (1,908,736)      (88,779)        (20,189)     (2,017,704)
                         ---------------  ------------  --------------  -------------
BALANCE,
    MARCH 31,
    1997                  $    (39,740)  $     3,207     $      (389)   $    (36,922)
                         ---------------  ------------  --------------  -------------
                         ---------------  ------------  --------------  -------------

</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, 1997 and 1996
                            Increase (Decrease) in Cash
                                     (unaudited)

<TABLE>
<CAPTION>

                                                   Three Months Ended March 31,
                                                       1997            1996    
                                                  -------------  --------------
<S>                                               <C>            <C>
    Cash flows from operating activities:

         Net income                                $ 2,049,577    $   1,195,663  

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

         Payments to Partners                       (2,017,704)      (1,183,722)

         Decrease in liabilities:
              Payable to ALZA Corporation              (23,454)          (6,375) 
                                                   -------------   --------------
    Net cash provided by operating
         activities                                      8,419            5,566  

    Cash at beginning of period                         77,586           48,245  
                                                   -------------   --------------

    Cash at end of period                          $    86,005      $    53,811  
                                                   -------------   --------------
                                                   -------------   --------------

</TABLE>


                               See accompanying notes.

                                        -5-

<PAGE>

                                              ALZA TTS Research Partners, Ltd. 
                                                               March 31, 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 months 
    ended March 31, 1997 and March 31, 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 March 31, 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:  first, 1% to 

                                        -6-

<PAGE>
                                              ALZA TTS Research Partners, Ltd. 
                                                               March 31, 1997

    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.  Given the 
    methodology for the allocation of losses and income as discussed above, 
    deficit capital account balances have resulted in the Class A 

                                        -7-

<PAGE>
                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997


    Limited Partners' and General Partner's capital accounts and will 
    continue until future allocated income exceeds cumulative cash 
    distributions required of the General Partner. 

                                        -8-

<PAGE>
                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997
    
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 March 31, 1997, cash provided from royalties from 
    Duragesic-Registered Trademark- and Testoderm-Registered Trademark- 
    increased to $2,081,221 from $1,217,549 for the same period of 1996.  
    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 20 countries 
    worldwide.  The product has been cleared for marketing in seven 
    additional countries. Submissions for marketing clearance are on file in 
    a number of other countries.  ALZA Pharmaceuticals, the sales and 

                                        -9-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997

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

                                        -10-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997
    
    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 

                                        -11-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997

    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 1997 of 
    $2,049,577 as compared to $1,195,663 for the first quarter of 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 $2,081,221 during the first 
    quarter of 1997 as compared to $1,217,549 for the first quarter of 1996. 
    The increase is due to increased sales of Duragesic-Registered 
    Trademark-.  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.  The Partnership had interest income of $8,359 
    for the first quarter of 1997 as compared to interest income of $5,564 
    for the first quarter of 1996.  The increase was due to a higher level 
    of cash available for investment during the first quarter of 1997 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 $40,003 for the first quarter 
    of 1997 as compared to $27,450 for the first quarter of 1996.  The 
    increase is due to the timing of the payment to the Partnership's 
    auditor for services provided in connection with their review of 
    quarterly and year end reports for 1996.
    
    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 
    

                                        -12-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997

    Product sales), 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.  At the rate 
    of $10.00 per Partnership unit per quarter, all remaining past 
    administrative costs, totaling $69,315 as of March 31, 1997, are 
    expected to be repaid by the fourth quarter of 1997.  In the first 
    quarter of 1997, payments for past and current administrative expenses 
    totaled $77,067.  In 1994, 1995 and 1996, payments made to ALZA for past 
    and current administrative expenses totaled $135,307, $138,607 and 
    $172,459, respectively.
    

                                        -13-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 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.



                                        -14-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 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:  May 14, 1997                           By: /s/ David R. Hoffmann   
                                                     -----------------------
                                                          David R. Hoffmann
                                                     President (Chief Executive
                                                      Officer), Chief Financial
                                                        Officer and Director

    Date:  May 14, 1997                            By: /s/ James W. Young   
                                                      -----------------------
                                                           James W. Young
                                                        Vice President and 
                                                              Director

                                        -15-

<PAGE>

                                            ALZA TTS Research Partners, Ltd. 
                                                             March 31, 1997

                                   Exhibit Index

    Exhibit
    -------
       27         Financial Data Schedule


                                        -16-