8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

May 21, 2003

(Date of earliest event reported)

CONNETICS CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	0-27406	94-3173928
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

3290 West Bayshore Road, Palo Alto, California 94303

(Address of principal executive offices, including zip code)

(650) 843-2800

(Registrant’s telephone number, including area code)

TABLE OF CONTENTS

	Item 5. Other Events.
	Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

Item 5. Other Events.

     On May 21, 2003, Connetics Corporation announced that it has entered into an agreement for the sale of $80 million of convertible notes ($90 million if the over-allotment option is exercised in full) through a Rule 144A offering to qualified institutional buyers. The notes will be convertible into Connetics common stock at a price equal to approximately $21.41 per share, subject to adjustment in certain circumstances, which represents a 35% premium over yesterday’s closing price of $15.86. The notes will bear an interest rate of 2.25% per year and will have a five-year term. The offering is expected to close on May 28, 2003.

     A copy of the press release relating to this announcement is attached hereto as Exhibit 99.1 and is incorporated into this report by reference.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits.

Exhibit No.	Description
99.1	Press Release dated May 21, 2003

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 hereunto duly authorized.

	CONNETICS CORPORATION
	By:	/s/ John L. Higgins
		John L. Higgins      Executive Vice President, Finance      and Corporate Development and      Chief Financial Officer
Date: May 22, 2003

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated May 21, 2003

EX-99.1 3 f90478exv99w1.htm EXHIBIT 99.1

EXHIBIT 99.1

Company Contact	Investor Relations
John Higgins Chief Financial Officer (650) 843-2800 jhiggins@connetics.com	Ina McGuinness or Bruce Voss Lippert/Heilshorn & Associates (310) 691-7100 imcguinness@lhai.com

CONNETICS TO RAISE $80 MILLION
FROM OFFERING OF 2.25% CONVERTIBLE SENIOR NOTES

PALO ALTO, Calif. (May 21, 2003) — Connetics Corporation (Nasdaq: CNCT) today announced that it has entered into an agreement for the sale of $80 million of convertible senior notes ($90 million if the over-allotment option is exercised in full) through a Rule 144A offering to qualified institutional buyers. The notes will be convertible into Connetics common stock at a price equal to $21.41 per share, subject to adjustment in certain circumstances, which represents a 35% premium over today’s closing price of $15.86. The notes, which will mature on May 30, 2008, will bear an interest rate of 2.25% per year. The offering is expected to close on May 28, 2003, subject to certain closing conditions.

The notes and the common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and any state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities.

Connetics expects to use the proceeds from the offering to augment its cash reserves for general corporate purposes, including potential future product or company acquisitions, capital expenditures and working capital.

About Connetics

Connetics Corporation is an independent pharmaceutical company focused on the development and commercialization of innovative therapeutics for the dermatology market. The Company’s marketed products are OLUX^® (clobetasol propionate) Foam, 0.05% and Luxíq^® (betamethasone valerate) Foam, 0.12%. Connetics’ wholly owned subsidiary, Connetics Australia Pty Ltd., is focused on discovering and developing innovative topical drug delivery formulations. These formulations aim to improve the management of dermatological diseases and provide significant product differentiation.

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This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding the company’s objective and its intended use of proceeds. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, but not limited to, a general downturn in economic conditions, our ability to fund our operations from our revenues, fluctuations in our operating results, risks related to the development and manufacture of our products, competitive pressures, our ability to develop new products and/or integrate them into our business and such other risks as identified in our 10-K/A for the fiscal year ended December 31, 2002, filed with the Securities and Exchange Commission and all subsequent filings with the Securities and Exchange Commission, including our Form 10-Q for the period ended March 31, 2003, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

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EX-99.1

Exhibit 99.1