X0201 4/A 2003-03-12 2003-03-14 0 0000876645 PHARMCHEM INC PCHM 0001012084 PALO ALTO INVESTORS 470 UNIVERSITY AVENUE PALO ALTO CA 94301 0 0 1 0 0001132158 MICRO CAP PARTNERS LP 470 UNIVERSITY AVENUE PALO ALTO CA 94301 0 0 1 0 Common Stock 2003-03-12 4 S 0 11900 0.1431 D 1511435 I See Notes The reporting persons (the "Reporting Persons") are William Leland Edwards, Palo Alto Investors, LLC, a California limited liability company ("PAI LLC"), Palo Alto Investors, a California corporation ("PAI Corp") and Micro Cap Partners, L.P. ("Micro Cap"), a California limited partnership. The sole manager of PAI LLC is PAI Corp. Mr. Edwards is the President and principal member of PAI LLC and the President and controlling shareholder of PAI Corp. PAI LLC is an investment adviser registered with the Securities and Exchange Commission, and is the investment adviser to, and general partner of, investment limited partnerships, including Micro Cap, and the investment adviser to other clients. Mr. Edwards, PAI LLC and PAI Corp are filing this Form 4 jointly as a group and disclaim membership in a group with any other person. Micro Cap is filing this Form 4 jointly with the other Reporting Persons, but not as a member of a group, and it expressly disclaims membership in a group with any other person. The Reporting Persons, except for Micro Cap, disclaim beneficial ownership of such securities except to the extent of their respective pecuniary interest therein. The filing of this Form 4 on behalf of Micro Cap should not be construed as an admission that it is, and it disclaims that it is, the beneficial owner as defined in Rule 13d-3 under the Exchange Act, of any of the securities covered by this Form 4. The number of shares reported in Column 5 includes 118,323 shares that are beneficially owned directly by Mr. Edwards. William L. Edwards 2004-03-03 Palo Alto Investors, by William L. Edwards 2004-03-03 Palo Alto Investors, LLC, by Palo Alto Investors, by William L. Edwards 2004-03-03 Micro Cap Partners, L.P., by Palo Alto Investors, LLC, by Palo Alto Investors, by William L. Edwards 2004-03-03