SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS
FILED PURSUANT TO RULES 13d-1(b), (c) AND (d)
AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(b)
(Amendment No. 2)*
Aeolus Pharmaceuticals Inc.
---------------------------
(Name of Issuer)
COMMON STOCK
------------
(Title of Class of Securities)
00765G109
---------
(CUSIP Number)
November 21, 2005
-----------------
Date of Event which Requires Filing of this Statement
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[x] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 2 of 12 Pages
-------------------------------- --------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Biotechnology Value Fund, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (entities only)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY -----------------------------------------------------------------
OWNED BY
EACH 6 SHARED VOTING POWER
REPORTING
PERSON 484,538 (1)
WITH
----------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
484,538 (1)
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
484,538 (1)
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
Instructions)
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
3.3%(1)(2)
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
See attached for footnotes.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 3 of 12 Pages
-------------------------------- --------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Biotechnology Value Fund II, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (entities only)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ----------------------------------------------------------------
OWNED BY
EACH 6 SHARED VOTING POWER
REPORTING
PERSON 334,349 (1)
WITH ----------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
334,349 (1)
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
334,349 (1)
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
Instructions)
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
2.2%(1)(2)
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
See attached for footnotes.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 4 of 12 Pages
-------------------------------- --------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
BVF Investments, L.L.C.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (entities only)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY -----------------------------------------------------------------
OWNED BY
EACH 6 SHARED VOTING POWER
REPORTING
PERSON 722,169 (1)
WITH -----------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
722,169 (1)
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
722,169 (1)
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
Instructions)
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
4.9%(1)(2)
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
OO
--------------------------------------------------------------------------------
See attached for footnotes.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 5 of 12 Pages
-------------------------------- --------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Investment 10, LLC
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (entities only)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ----------------------------------------------------------------
OWNED BY
EACH 6 SHARED VOTING POWER
REPORTING
PERSON 80,762 (1)
WITH
----------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
80,762 (1)
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
80,762 (1)
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
Instructions)
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
0.5%(1)(2)
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
OO
--------------------------------------------------------------------------------
See attached for footnotes.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 6 of 12 Pages
-------------------------------- --------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
BVF Partners L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (entities only)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ----------------------------------------------------------------
OWNED BY
EACH 6 SHARED VOTING POWER
REPORTING
PERSON 1,621,818 (1)
WITH
----------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
1,621,818 (1)
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,621,818 (1)
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
Instructions)
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
10.9%(1)(2)
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
See attached for footnotes.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 7 of 12 Pages
-------------------------------- --------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
BVF Inc.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (entities only)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ----------------------------------------------------------------
OWNED BY
EACH 6 SHARED VOTING POWER
REPORTING
PERSON 1,621,818 (1)
WITH ----------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
1,621,818 (1)
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,621,818 (1)
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
Instructions)
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
10.9%(1)(2)
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
IA, CO
--------------------------------------------------------------------------------
See attached for footnotes.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 8 of 12 Pages
-------------------------------- --------------------------
The following footnotes relate to pages 2 thru 7:
(1) With respect to each Reporting Person, the following securities are held, as
follows (See Items 2(a) and 2(d) for defined terms for each entity and all other
capitalized terms below):
Security Type BVF BVF2 Investments ILL10 Partners BVF Inc.
--------------------------------------------------------------------------------
Preferred Stock 37,000 24,000 57,832 6,168 125,000 125,000
Common Stock 240,538 170,349 350,841 40,090 801,818 801,818
Warrants 170,000 116,000 255,664 28,336 570,000 570,000
------------
The Warrants may be exercised at any time until expiration for shares of the
issuer's Common Stock at an exercise price of $0.40 per share or $1.00 per
share, as applicable (each subject to adjustment). The Warrants are exercisable
until April 19, 2009 or November 21, 2010, as applicable.
Each share of Preferred Stock is convertible into two shares of Common Stock at
a conversion price of $1.00 per share (subject to adjustment).
(2) The percentage calculations are based on 14,897,263 shares of Common Stock
outstanding determined as follows: (x) 14,077,263 shares of Common Stock
outstanding as of January 27, 2006 plus (y) 820,000 shares of Common Stock
issuable upon conversion of the Preferred Stock and the exercise of the Warrants
held by the Reporting Persons.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 9 of 12 Pages
-------------------------------- --------------------------
Item 1(a). Name of Issuer:
Aeolus Pharmaceuticals, Inc. ("Aeolus")
Item 1(b). Address of Issuer's Principal Executive Offices:
23811 Inverness Place
Laguna Niguel, California 92677
Item 2(a). Names of Person Filing
This Amendment No. 2 to Schedule 13G is being filed on behalf of the
following persons (the "Reporting Persons"):
(i) Biotechnology Value Fund, L.P. ("BVF")
(ii) Biotechnology Value Fund II, L.P. ("BVF2")
(iii) BVF Investments, L.L.C. ("Investments")
(iv) Investment 10, L.L.C. ("ILL10")
(v) BVF Partners L.P. ("Partners")
(vi) BVF Inc. ("BVF Inc.")
Item 2(b). Address of Principal Business Office or, if none, Residence:
The principal business office of the Reporting Persons comprising the group
filing this Amendment No. 2 to Schedule 13G is located at 900 North Michigan
Avenue, Suite 1100, Chicago, Illinois, 60611.
Item 2(c). Citizenship or Place of Organization:
BVF: a Delaware limited partnership
BVF2: a Delaware limited partnership
Investments: a Delaware limited liability company
ILL10: an Illinois limited liability company
Partners: a Delaware limited partnership
BVF Inc.: a Delaware corporation
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 10 of 12 Pages
-------------------------------- --------------------------
Item 2(d). Title of Class of Securities:
This Amendment No. 2 to Schedule 13G is being filed with respect to the
common stock, par value $0.01 per share (the "Common Stock"), of Aeolus. The
Reporting Persons' percentage ownership of Common Stock is based on (i)
14,077,263 shares of Common Stock being outstanding as of January 27, 2006, as
reported in Aeolus' proxy statement filed with the Securities and Exchange
Commission on January 30, 2006, (ii) the beneficial ownership by the Reporting
Persons of 570,000 warrants (the "Warrants") to purchase an equivalent number of
shares of the Common Stock and (iii) the beneficial ownership by the Reporting
Persons of 125,000 shares of Series A Convertible Preferred Stock (the
"Preferred Stock") initialy exercisable into 250,000 shares of Common Stock. See
the discussion in footnote (1) for a further description of the Warrants and
Preferred Stock.
As of January 9, 2006, (i) BVF beneficially owned 484,538 shares of Common
Stock, of which 74,000 shares are attributable to Preferred Stock and 170,000
shares are attributable to Warrants; (ii) BVF2 beneficially owned 334,349 shares
of Common Stock, of which 48,000 shares are attributable to Preferred Stock and
116,000 shares are attributable to Warrants; (iii) Investments beneficially
owned 722,169 shares of Common Stock, of which 115,664 shares are attributable
to Preferred Stock and 255,664 shares are attributable to Warrants; and (iv)
ILL10 beneficially owned 80,762 shares of Common Stock, of which 12,336 shares
are attributable to Preferred Stock and 28,336 shares are attributable to
Warrants. Beneficial ownership by Partners and BVF Inc. includes 1,621,818
shares of Common Stock, of which 250,000 shares are attributable to Preferred
Stock and 570,000 shares are attributable to Warrants.
Item 2(e). CUSIP Number:
00765G109
Item 3. If this Statement is Filed Pursuant to Rule 13d-1(B), or 13d-2(B) or (C)
Check Whether the Person Filing is: One of the Following
Not applicable as this Amendment No. 2 to Schedule 13G is filed pursuant to
Rule 13d-1(c).
Item 4. Ownership
The information in items 1 and 5 through 11 on the cover pages (pp. 2 - 7)
on this Amendment No. 2 to Schedule 13G is hereby incorporated by reference.
Item 5. Ownership of 5 Percent or Less of a Class
If this statement is being filed to report the fact that as of the date
hereof the Reporting Persons have ceased to be the beneficial owner of more than
five percent of the class of securities check the following. | |
Item 6. Ownership of More than 5 Percent on Behalf of Another Person
Pursuant to the operating agreement of Investments, Partners is authorized,
among other things, to invest funds of Ziff Asset Management, L.P., the majority
member of Investments, in shares of Preferred Stock, Common Stock and Warrants
described herein and to vote and exercise dispositive power over those
securities. Partners and BVF Inc. share voting and dispositive power over the
shares of Preferred Stock, Common Stock and the Warrants beneficially owned by
BVF, BVF2, Investments and those owned by ILL10, on whose behalf Partners acts
as investment manager and, accordingly, Partners and BVF Inc. have beneficial
ownership of all of the shares of Preferred Stock, Common Stock and Warrants
held by such parties.
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Securities Being Reported on By the Parent Holding Company
Not Applicable.
Item 8. Identification and Classification of Members of the Group
Not Applicable.
Item 9. Notice of Dissolution of Group
Not Applicable.
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 11 of 12 Pages
-------------------------------- --------------------------
Item 10. Certification
By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: February 10, 2006
BIOTECHNOLOGY VALUE FUND, L.P.
By: BVF Partners L.P., its general partner
By: BVF Inc., its general partner
By: /s/ MARK N. LAMPERT
----------------------------
Mark N. Lampert
President
BIOTECHNOLOGY VALUE FUND II, L.P.
By: BVF Partners L.P., its general partner
By: BVF Inc., its general partner
By: /s/ MARK N. LAMPERT
----------------------------
Mark N. Lampert
President
BVF INVESTMENTS, L.L.C.
By: BVF Partners L.P., its manager
By: BVF Inc., its general partner
By: /s/ MARK N. LAMPERT
----------------------------
Mark N. Lampert
President
INVESTMENT 10, L.L.C.
By: BVF Partners L.P., its attorney-in-fact
By: BVF Inc., its general partner
-------------------------------- --------------------------
CUSIP No. 00765G109 13G Page 12 of 12 Pages
-------------------------------- --------------------------
By: /s/ MARK N. LAMPERT
----------------------------
Mark N. Lampert
President
BVF PARTNERS L.P.
By: BVF Inc., its general partner
By: /s/ MARK N. LAMPERT
----------------------------
Mark N. Lampert
President
BVF INC.
By: /s/ MARK N. LAMPERT
----------------------------
Mark N. Lampert
President