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                                                                     Exhibit 4.1

              SECURITIES ISSUANCE AND REGISTRATION RIGHTS AGREEMENT

         THIS IS A SECURITIES ISSUANCE AND REGISTRATION RIGHTS AGREEMENT (the
"Agreement") dated as of September 22, 2000, between West Pharmaceutical
Services, Inc., a Pennsylvania corporation, ("West") with offices at 101 Gordon
Drive, Lionville, PA, 19341, and Innovative Drug Delivery Systems, Inc., a
Delaware corporation, ("IDDS") with offices at 787 Seventh Avenue, New York,
New York 10019, on behalf of itself and any Affiliate of IDDS referred to in the
Background section below.

                                   Background

         The parties have entered into a Development Milestone and Option
Agreement (Nasal Morphine) and a Research and development and Option Agreement
(Nasal Midazolam), each dated as of September 22, 2000, and contemplate entering
into other similar agreements in the future (such present and future agreements
being referred to herein individually as a "Milestone Agreement" and
collectively as the "Milestone Agreements"). Under the Milestone Agreements,
IDDS would make payments upon achieving certain identified milestones
("Milestones") in the development of pharmaceutical products containing
technology licensed to IDDS by West and its wholly owned subsidiary West
Pharmaceutical Services Drug Delivery & Clinical Research Centre Ltd.

         The Milestone Agreements permit certain of these payments to be made by
issuing to West shares of a class of nationally listed, publicly traded equity
securities of IDDS or an Affiliate of IDDS (the "NLPT Securities" that is are
listed on the New York Stock Exchange, NASDAQ National Market System, NASDAQ
Small-Cap Market or American Stock Exchange (an "Exchange"). The shares that may
be issued to West from time to time are hereinafter collectively referred to as
the "Shares". As used herein, an "Affiliate" means an entity, over 50% of the
voting securities of which are directly or indirectly controlled by a party to
this Agreement, or an entity that directly or indirectly controls over 50% of
the voting securities of such party.

         The parties desire to provide for compliance with the U.S. Securities
Act of 1933, as amended, and the rules promulgated thereunder (the "Securities
Act") in connection with the issuance of the Shares to West and the further
resale or other disposition of the Shares by West.

                                    Agreement

         Accordingly, the parties hereto, intending to be legally bound, agree
as follows:

1.       Delivery of Certificates. IDDS shall issue and delivery to West a
         certificate in the name of West for the Shares issued from time to time
         under the Milestone Agreements.

2.       Representations and Warranties of IDDS. IDDS represents and warrants to
         West as follows:

         2.1      As of the time of issuance, IDDS and the Shares will meet the
                  continuing listing requirements of the Exchange on which the
                  NLPT Securities are listed;

         2.2      As of the time of issuance, the Shares being issued shall be
                  duly authorized, and upon issuance in accordance with the
                  terms and provisions of this Agreement and the applicable
                  Milestone Agreement, will be validly issued, fully paid and
                  non-assessable.

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         2.3      IDDS has the corporate power to execute, deliver and carry out
                  the terms and provisions of this Agreement, and all necessary
                  corporate action has been taken to authorize the execution,
                  delivery and performance of this Agreement by IDDS. This
                  Agreement represents a valid, legal and binding obligation of
                  IDDS, enforceable in accordance with its terms, subject to
                  laws of general application relating to bankruptcy, insolvency
                  and the relief of debtors and rules of law governing specific
                  performance, injunctive relief or other equitable remedies.

         2.4      No authorization, consent or approval of, or exemption by, any
                  governmental or public body or authority is required to
                  authorize, or is required in connection with, the execution,
                  delivery and performance of this Agreement, or the taking of
                  any action contemplated hereby, by IDDS, except those that
                  have been obtained or are available.

3.       Representations and Warranties of West.

         3.1      West represents and warrants to the IDDS that: (i) it
                  understands that the Shares are being issued to it under
                  certain exemptions from the registration provisions of the
                  Securities Act; West is acquiring such Shares without being
                  furnished any offering literature or prospectus; and the offer
                  and sale of the Shares has not been examined by the U.S.
                  Securities and Exchange Commission (the "SEC") or by any
                  agency charged with the administration of the securities laws
                  of any state or other jurisdiction; (ii) West has, either
                  alone or together with its advisors, such knowledge and
                  experience in financial and business matters that West is
                  capable of making an informed investment decision with respect
                  thereto; and (iii) West understand that IDDS is relying on the
                  truth and accuracy of the representations, declarations and
                  warranties made herein by West in the issuance of the Shares
                  hereunder without having first registered such Shares under
                  the Securities Act or under the securities laws of any state
                  or other jurisdiction. West is an "institutional investor" as
                  defined in Regulation Section 103.11 1(a)(1) under the
                  Pennsylvania Securities Act of 1972 inasmuch as West has been
                  in existence for more than 18 months and has a tangible net
                  worth on a consolidated basis, as reflected in its most recent
                  audited financial statements, of at least $10,000,000.

         3.2      West confirms to IDDS that: (i) West understands that there
                  are restrictions on the transferability of the Shares and;
                  (ii) the Shares are being held for investment purposes only,
                  and are not being purchased with a view to or for the resale,
                  distribution, subdivision or fractionalization thereof; (iii)
                  West does not have any contract, undertaking, agreement or
                  arrangement, formal or informal, with any person to sell,
                  transfer or pledge the Shares, or any part thereof, to any
                  person and has no current plan to enter into any such
                  contract, undertaking, agreement or arrangement.

         3.3      West will hold the Shares for its own account without a view
                  to the distribution thereof, and that it will not, at any time
                  or times, directly or indirectly offer, sell, pledge, transfer
                  or otherwise dispose of the Shares or solicit any offer to
                  purchase or otherwise acquire or take a pledge of the Shares,
                  other than in conformity with the Securities Act, and that no
                  transfer of the Shares may be made except in compliance with
                  the following legend, which West consents may be applied to
                  the certificate(s) for the Shares:


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                           "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
                           NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
                           AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND
                           MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTECATED OR
                           OTHERWISE DISPOSED OF IN THE ABSENCE OF (A)
                           REGISTRATION UNDER SUCH ACT OR OTHER APPLICABLE
                           SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL
                           SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
                           NOT REQUIRED."

         3.4      West represents to IDDS that no authorization, consent or
                  approval of, or exemption by, any governmental or public body
                  or authority is required to authorize, or is required in
                  connection with, the execution, delivery and performance of
                  this Agreement, or the taking of any action contemplated
                  hereby, by West, except those that have been obtained or are
                  available.

4.       Registration Under the Securities Act of 1933.

         4.1      Demand Registration.

         4.1.1    Timing and Number of Demand Registration Rights. If, at any
                  time commencing 30 days following issuance of any Shares
                  pursuant to the Milestone Agreements and subject to this
                  Agreement, West shall request IDDS in writing to register
                  under the Securities Act any Shares (but in no event less than
                  100,000 Shares)(the Shares subject to such a request, whether
                  under this Section 4.1 or under Section 4.2, being referred to
                  herein as the "Subject Stock"), IDDS shall use its best
                  efforts to cause the shares of Subject Stock specified in such
                  request to be registered as soon as reasonably practical so as
                  to permit the sale thereof, and in connection therewith shall
                  prepare and file a registration statement with the SEC under
                  the Securities Act to effect such registration; provided,
                  however, that each such request shall (i) specify the number
                  of shares of Subject Stock intended to be offered and sold
                  (ii) express the present intention of West to offer or cause
                  the offering of such shares of Subject Stock for distribution,
                  (iii) describe the nature or method of the proposed offer and
                  sale thereof, and (iv) contain the undertaking of West to
                  provide all such information and materials and take all such
                  action as may be required in order to permit IDDS to comply
                  with all applicable requirements of the SEC and to obtain any
                  desired acceleration of the effective date of such
                  registration statement. West shall not be entitled to request
                  more than one demand registration statement under this
                  Agreement in any 12-month period or more than three such
                  demand registrations in the aggregate. IDDS shall not be
                  required to effect a demand registration hereunder for a
                  period of 120 days (or such longer period as may be required
                  by law or the managing underwriter) following the closing of
                  an underwritten public offering of NLPT Securities that is in
                  registration at the time of receipt of West's registration
                  request or that is filed with the SEC within 20 days following
                  the receipt of West's demand registration request.

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         4.1.2    Obligations of IDDS. Whenever IDDS is required by the
                  provisions of this Agreement to use its best efforts to effect
                  the registration of any NLPT Securities under the Securities
                  Act, IDDS shall (A) prepare and, as soon as possible, file
                  with the SEC a registration statement with respect to the
                  shares of Subject Stock, and shall use its best efforts to
                  cause such registration statement to become effective and
                  remain effective until the earlier of the sale of the shares
                  of Subject Stock so registered or 120 days subsequent to the
                  effective date of such registration; (B) prepare and file with
                  the SEC such amendments and supplements to such registration
                  statement and the prospectus used in connection therewith as
                  may be necessary to make and to keep such registration
                  statement effective and to comply with the provisions of the
                  Securities Act with respect to the sale or other disposition
                  of all securities proposed to be registered in such
                  registration statement until the earlier of the sale of the
                  shares of Subject Stock so registered or 120 days subsequent
                  to the effective date of such registration statement; (C)
                  furnish to West such number of copies of any prospectus
                  (including any preliminary prospectus and any amended or
                  supplemented prospectus), in conformity with the requirements
                  of the Securities Act, as West may reasonably request in order
                  to effect the offering and sale of the shares of Subject Stock
                  to be offered and sold, but only while IDDS shall be required
                  under the provisions hereof to cause the registration
                  statement to remain current; (D) use its commercially
                  reasonable efforts to register or qualify the shares of
                  Subject Stock covered by such registration statement under the
                  securities or blue sky laws of such states as West shall
                  reasonably request, maintain any such registration or
                  qualification current until the earlier of the sale of the
                  shares of Subject Stock so registered or 120 days subsequent
                  to the effective date of the registration statement and do any
                  and all other acts and things either necessary or advisable to
                  enable West to consummate the public sale or other disposition
                  of the shares of Subject Stock in jurisdictions where West
                  desires to effect such sales or other disposition (but IDDS
                  shall not be required to take any action that would subject it
                  to the general jurisdiction of the courts of any jurisdiction
                  in which it is not so subject or to qualify as a foreign
                  corporation in any jurisdiction where IDDS is not so
                  qualified); and (E) take all such other action either
                  necessary or desirable to permit the shares of Subject Stock
                  held by West to be registered and disposed of in accordance
                  with the method of disposition described herein. If requested,
                  and provided that the underwriter or underwriters are
                  reasonably satisfactory to IDDS, IDDS shall enter into an
                  underwriting agreement with a nationally recognized investment
                  banking firm or firms containing representations, warranties,
                  indemnities and agreements then customarily included by an
                  issuer in underwriting agreements with respect to secondary
                  distributions. IDDS shall not cause the registration under the
                  Securities Act of any other shares of NLPT Securities to
                  become effective (other than registration of an employee stock
                  plan, or registration in connection with any Rule 145 or
                  similar transaction) during the effectiveness of a
                  registration requested hereunder for an underwritten public
                  offering if, in the judgment of the underwriter or
                  underwriters, marketing factors would adversely affect the
                  price of the Subject Stock. In connection with any offering of
                  shares of Subject Stock registered pursuant to this Agreement,
                  IDDS shall instruct the transfer agent and registrar of the
                  Subject Stock to release any stop transfer orders with respect
                  to the shares of Subject Stock being sold.


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         4.1.3    Inclusion of Additional Shares. IDDS shall take all actions it
                  deems necessary or advisable in order to ensure that security
                  holders of IDDS, whether or not holding contractual
                  registration rights, shall not have the right to exclude from
                  any registration initiated pursuant to this Section 4.1 any
                  shares of Subject Stock.

         4.1.4    Expenses. IDDS shall pay all of the out-of pocket expenses
                  incurred by IDDS in connection with (A) any registration
                  statements that are initiated pursuant to this Section 4.1 and
                  (B) the registration pursuant to Section 4.2 below of shares
                  of NLPT Securities held by IDDS, including, without
                  limitation, all SEC and blue sky registration and filing fees,
                  printing expenses, transfer agents' and registrars' fees, and
                  the reasonable fee and disbursements of IDDS's outside counsel
                  and independent accountants; provided, however, IDDS shall not
                  be required to pay for any underwriters' discounts or
                  commissions with respect to any shares sold by West pursuant
                  to Section 4.1 or Section 4.2.

4.2      "Piggyback" Rights.

         4.2.1    Notice of Registration. If, at any time or from time to time
                  commencing nine months after an initial public offering of any
                  shares of NLPT Securities, IDDS shall determine to register
                  any of its securities, either for its own account or the
                  account of any security holder or holders, other than a
                  registration relating solely to employee benefit plans or a
                  registration relating solely to an SEC Rule 145 transaction,
                  IDDS will:

                  (a)      promptly give to West written notice thereof; and

                  (b)      include in such registration (and any related
                           qualification under blue sky laws or other
                           compliance), and in any underwriting involved
                           therein, that number of shares of Subject Stock held
                           by West as specified by West in a written request,
                           made within 15 days after receipt of such written
                           notice from IDDS.

         4.2.2    Underwriting. If the registration of which IDDS gives notice
                  is for a registered public offering involving an underwriting,
                  IDDS shall so advise West as a part of the written notice
                  given pursuant to Section 4.2.1. In such event the right of
                  West to registration pursuant to this Section 4.2 shall be
                  conditioned upon West's participation in such underwriting and
                  the inclusion of shares of the Subject Stock being registered
                  thereunder in the underwriting to the extent provided herein.
                  West, together with IDDS and the other holders, if any,
                  distributing their securities through such underwriting, shall
                  enter into an underwriting agreement in customary form with
                  the managing underwriter selected for such underwriting by
                  IDDS. Notwithstanding any other provision of this Section 4.2
                  if the managing underwriter determines that marketing factors
                  require a limitation of the number of shares to be
                  underwritten, the underwriter may limit the number of shares
                  to be included in such registration and underwriting on behalf
                  of West and other selling security holders to an aggregate of
                  not less than 15% of the total number of the securities to be
                  registered in such registration and underwriting.


                                      -5-
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                  If West or any other holder disapproves of the terms of any
                  such underwriting, West or such other holder may elect to
                  withdraw therefrom by written notice to IDDS and the managing
                  underwriter within ten days following the filing of the
                  registration statement involving such underwriting. Any
                  securities excluded or withdrawn from such underwriting shall
                  be withdrawn from such registration, and the securities so
                  excluded or withdrawn shall not be transferred in a public
                  distribution prior to 180 days after the effective date of the
                  registration statement relating thereto.

         4.2.4    Demand Registration Rights Exercised by Other Stockholders. If
                  the registration of which IDDS gives notice pursuant to
                  Section 4.2.1 relates to the exercise of demand registration
                  rights by another stockholder of IDDS (the "Demanding
                  Stockholder") and IDDS, the Demanding Stockholder or the
                  managing underwriter (in the event of a registered public
                  offering involving an underwriting) determines that marketing
                  factors require a limitation of the number of shares to be
                  registered, IDDS shall so advise West and the other holders
                  distributing securities through such registration (other than
                  the Demanding Stockholder) and shares held by any person or
                  entity, including West, (other than the Demanding Stockholder)
                  may be excluded from such registration in whole or in part.

4.3      Holdback Agreement. West agrees with respect to any underwritten
         registered offering of IDDS's securities, that upon the request of IDDS
         or the underwriter managing such offering, not to sell, make any short
         sale of, loan, grant any option for the purchase of, or otherwise
         dispose of any equity securities of IDDS, other than those included in
         the registration, without the prior written consent of IDDS or such
         underwriter for such period of time as IDDS or such underwriter may
         specify (not to exceed 180 days) from the effective date of such
         registration; provided, however, that this provision shall not apply to
         a underwritten registered offering of IDDS's equity securities unless
         every holder of 5% or more of the equity securities of IDDS has agreed
         in writing to be bound to a provision identical or substantially
         similar to this provision.

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4.4      Indemnification.

         4.4.1    Indemnification by IDDS. In the case of any offering
                  registered pursuant to this Agreement, IDDS agrees to
                  indemnify and hold West, each of its officers and directors,
                  each underwriter of shares of Subject Stock under such
                  registration and each person who controls any of the foregoing
                  within the meaning of Section 15 of the Securities Act
                  harmless against any and all loses, claims, damages or
                  liabilities to which they or any of them may become subject
                  under the Securities Act or any other statute or common law or
                  otherwise, and to reimburse them, from time to time promptly
                  upon request, for any legal or other expenses incurred by them
                  in connection with any claims or actions, insofar as any such
                  losses, claims, damages, liabilities or actions shall arise
                  out of or shall be based upon (A) any untrue statement or
                  alleged untrue statement of a material fact contained in the
                  registration statement relating to the sale of such shares of
                  Subject Stock or the omission or alleged omission to state
                  therein a material fact required to be stated therein or
                  necessary to make the statements therein not misleading, or
                  (B) any untrue statement or alleged untrue statement of a
                  material fact contained in any preliminary prospectus (as
                  amended or supplemented if IDDS shall have filed with the SEC
                  any amendment thereof or supplement thereto), if used within
                  the period during which IDDS shall be required to keep the
                  registration statement to which such prospectus relates
                  current pursuant to the terms of this Agreement, or the
                  omission or alleged omission to state therein (if so used) a
                  material fact necessary in order to make the statements
                  therein, in light of the circumstances under which they were
                  made, not misleading; provided, however, that the
                  indemnification agreement contained in this Section 4.4.1
                  shall not apply to such losses, claims, damages, liabilities
                  or actions which shall arise from the sale of shares of
                  Subject Stock to any person if such losses, claims, damages,
                  liabilities or actions shall arise out of or shall be based
                  upon any such untrue statement or alleged untrue statement, or
                  any such omission or alleged omission, if such statement or
                  omission shall have been (x) made in reliance upon and in
                  conformity with information furnished in writing to IDDS by
                  West specifically for use in connection with the preparation
                  of the registration statement or any preliminary prospects or
                  prospectus contained in the registration statement or any such
                  amendment thereof or supplement thereto, or (y) made in any
                  preliminary prospectus, and the prospectus contained in the
                  registration statement as declared effective or in the form
                  filed by IDDS with the SEC pursuant to Rule 424 under the
                  Securities Act shall have corrected such statement or omission
                  and a copy of such prospectus shall not have been sent or
                  given to such person at or prior to the confirmation of such
                  sale to him.



         4.4.2    Indemnification by West. In the case of each offering of
                  shares of NLPT Securities registered pursuant to this
                  Agreement where such shares are sold pursuant to such
                  registration, West agrees in the same manner and to the same
                  extent as set forth in Section 4.4.1 of this Agreement to
                  indemnify and hold harmless IDDS and each person, if any, who
                  controls IDDS within the meaning of Section 15 of the
                  Securities Act, its directors and those officers of IDDS who
                  shall have signed any such registration statement with respect
                  to any statement in or omission from such registration
                  statement or any preliminary prospectus (as amended or as
                  supplemented, if amended or supplemented as aforesaid) or
                  prospectus contained in such registration statement (as
                  amended or as supplemented, if amended or supplemented as
                  aforesaid), if such statement or omission shall have been made
                  in reliance upon and in conformity with information furnished
                  in writing to IDDS by West specifically for use in connection
                  with the preparation of such registration statement or any
                  preliminary prospectus or prospectus contained in such
                  registration statement or any amendment thereof or supplement
                  thereto.


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         4.4.3    Notice of Claims. Each party indemnified under Section 4.4.1
                  or Section 4.4.2 above shall, promptly after receipt of notice
                  of the commencement of any claim or action against such
                  indemnified party in respect of which indemnity may be sought,
                  notify the indemnifying party in writing of the commencement
                  thereof. The omission of any indemnified party so to notify an
                  indemnifying party of any such action shall not relieve the
                  indemnifying party from any liability in respect of such
                  action that it may have to such indemnified party on account
                  of the indemnity agreement contained in Section 4.4.1 or
                  Section 4.4.2 above, unless the indemnifying party was
                  prejudiced by such omission, and in no event shall relieve the
                  indemnifying party from any other liability which it may have
                  to such indemnified party. In case any such action shall be
                  brought against any indemnified party and it shall notify an
                  indemnifying party of the commencement thereof, the
                  indemnifying party shall be entitled to participate therein
                  and, to the extent that it may wish, jointly with any other
                  indemnifying party similarly notified, to assume the defense
                  thereof, with counsel satisfactory to such indemnified party,
                  and, after notice from the indemnifying party to such
                  indemnified party of its election so to assume the defense
                  thereof, the indemnifying party shall not be liable to such
                  indemnified party under Section 4.4.1 or Section 4.4.2 above
                  for any legal or other expenses subsequently incurred by such
                  indemnified party in connection with the defense thereof or
                  response thereto other than reasonable costs of investigation.
                  Notwithstanding the above, however, if representation of one
                  or more indemnified parties by the counsel retained by the
                  indemnifying party would be inappropriate due to actual
                  conflicting interests between such indemnified parties (the
                  "Conflicting Indemnified Parties") and any other party
                  represented by such counsel in such proceeding, then such
                  Conflicting Indemnified Parties shall have the right to retain
                  one separate counsel, chosen by a majority of the Conflicting
                  Indemnified Parties, at the expense of the indemnifying party.
                  No indemnifying party, (A) in the defense of any such claim or
                  litigation, shall, except with the consent of each indemnified
                  party, which consent shall not unreasonably be withheld,
                  consent to entry of any judgment or enter into any settlement
                  which does not include as an unconditional term thereof the
                  giving by the claimant or plaintiff to such indemnified party
                  of a release from all liability in respect to such claim or
                  litigation, or (B) shall be liable for amounts paid in any
                  settlement if such settlement is effected without the consent
                  of the indemnifying party, which consent shall not be
                  unreasonably withheld.


                                      -8-
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         4.4.4    Contribution. If the indemnification provided for in this
                  Section 4.4 is held by a court of competent jurisdiction to be
                  unavailable to an indemnified party with respect to any loss,
                  liability, claim, damage or expense referred to therein, then
                  the indemnifying party, in lieu of indemnifying such
                  indemnified party thereunder, shall contribute to the amount
                  paid or payable by such indemnified party as a result of such
                  loss, liability, claim, damage or expense in such proportion
                  as is appropriate to reflect the relative fault of the
                  indemnifying party on the one hand and of the indemnified
                  party on the other in connection with the statements or
                  omissions which resulted in such loss, liability, claim,
                  damage or expense as well as any other relevant equitable
                  considerations. The relative fault of the indemnifying party
                  and of the indemnified party shall be determined by reference
                  to, among other things, whether the untrue or alleged untrue
                  statement of a material fact or the omission to state a
                  material fact relates to information supplied by the
                  indemnifying party or by the indemnified party and the
                  parties' relative intent, knowledge, access to information and
                  opportunity to correct or prevent such statement or omission.

5.       Certain Covenants by West and IDDS.

       5.1        Compliance with U.S. Securities Laws. In the event that IDDS
                  discloses or makes available to West any confidential
                  information concerning IDDS that IDDS believes is likely to
                  constitute "material, non-public information" (as such term is
                  used in the U.S. federal securities laws), IDDS shall so
                  inform West in writing prior to or at the time of such
                  disclosure. In such event, unless and until advised by IDDS
                  that the material information has been completely and
                  adequately disseminated to the public, West shall not: (i)
                  purchase, trade, offer, pledge, sell, contract to sell or to
                  purchase or sell "short" or "short against the box" (as such
                  terms are generally understood in the securities markets), any
                  Shares or other equity or debt security of IDDS, or any
                  warrant, option or other right to acquire or dispose of any
                  such security; (ii) recommend the purchase or sale of such
                  security, or "tip" or communicate such information to any
                  other person; (iii) engage in any other action to take
                  advantage of such information; or (iv) knowingly assist any
                  person who is engaged in any of the above activities.

         5.2      Covenant to Assign Rights and Obligations. IDDS hereby
                  covenants and agrees with West that, in the event that an
                  Affiliate of IDDS rather than IDDS becomes the issuer of the
                  NLPT Securities, that IDDS shall immediately cause the
                  Affiliate to take all steps necessary to become a party to
                  this Agreement. And in such event, all references to IDDS
                  shall be deemed to refer to such Affiliate for all purposes
                  under this Agreement.

6.       Assignment. This Agreement may not be assigned or otherwise transferred
         by either party without the consent of the other party; provided,
         however, that IDDS shall assign its rights and obligations hereunder to
         an Affiliate as contemplated under Section 5.2 hereof and West may
         assign its rights and obligations hereunder to any Affiliate of West.
         Any purported assignment in violation of the preceding sentence shall
         be void. Any permitted assignee shall assume all obligations of its
         assignor under this Agreement.


                                      -9-
<PAGE>


7.       Severability. In the event any one or more of the provisions contained
         in this Agreement should be held invalid, illegal or unenforceable in
         any respect, the validity, legality and enforceability of the remaining
         provisions contained herein shall not in any way be affected or
         impaired thereby, unless the absence of the invalidated provision(s)
         adversely affect the substantive rights of the parties. The parties
         shall in such an instance use reasonable efforts to replace the
         invalid, illegal or unenforceable provision(s) with valid, legal and
         enforceable provision(s) which, insofar as practical, implement the
         purposes of this Agreement.

8.       Notices. Any notice or other communication pursuant to this Agreement
         will be deemed duly made or given: (i) when delivered by hand; (ii)
         five business days after it is mailed, certified or return receipt
         request, with postage prepaid; (iii) when sent, if sent by telecopy
         (with receipt confirmed) or (iv) when receipt is signed for when sent
         by Federal Express, DHL or other express delivery service. Notices will
         be addressed as follows:

         If to West to:

                  West Pharmaceutical Services, Inc.
                  101 Gordon Drive
                  Lionville, Pennsylvania 19341
                  Attention:  Division President, Drug Delivery Systems
                  Telecopier: 610 594-3013

                  With a required copy to:

                  West Pharmaceutical Services, Inc.
                  101 Gordon Drive
                  Lionville, Pennsylvania 19341
                  Attention:  General Counsel
                  Telecopier: 610 594-3013


         If to IDDS, to:

                  Innovative Drug Delivery Systems, Inc.
                  787 Seventh Avenue
                  New York, NY 10019
                  Attention:  David M. Tanen
                  Telecopier: 212 554-4355

9.       Governing Law/Jurisdiction. This Agreement is acknowledged to have been
         made in and shall be construed, governed, interpreted and applied in
         accordance with the federal securities laws and the laws of the
         Commonwealth of Pennsylvania, without giving effect to its conflict of
         laws provisions. The state and federal courts in Pennsylvania


                                      -10-
<PAGE>

10.      shall have exclusive jurisdiction over any litigation arising under
         this Agreement.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed by their respective duly authorized representatives.


WEST PHARMACEUTICAL SERVICES, INC.        INNOVATIVE DRUG DELIVERY SYSTEMS,
                                           INC.


By:/s/ Donald E. Morel Jr.                By:/s/ Mark C. Rogers
   --------------------------------          --------------------------------
Name:  Donald E. Morel Jr.                Name:
Title: President                          Title:
       Drug Delivery Systems


                                      -11-