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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>___________________________</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of the</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      Exchange Act of 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>April
      17, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Discovery
      Laboratories, Inc.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of Company as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Delaware</strong></font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>000-26422</strong></font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>94-3171943</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                incorporation)</font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                Number)</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2600
      Kelly Road, Suite 100</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Warrington,
      Pennsylvania 18976-3622</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of principal executive offices)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(215)
      488-9300</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Company's
      telephone number, including area code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      name or former address, if changed since last report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the Company under any of the following
      provisions:</font></div>
    <div align="left"><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
      ]</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
      ]</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
      ]</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
      ]</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
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    <div align="left"><font size="2">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        1.01.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Entry
        into a Material Definitive Agreement</u></font></strong></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        April
        17, 2006, Discovery Laboratories, Inc. (the &#8220;Company&#8221;) entered into a Committed
        Equity Financing Facility (the &#8220;2006 CEFF&#8221;) with Kingsbridge Capital Limited
        (&#8220;Kingsbridge&#8221;) by way of a Common Stock Purchase Agreement (the &#8220;Purchase
        Agreement&#8221;). The Company previously entered into a CEFF with Kingsbridge on July
        8, 2004 (the &#8220;2004 CEFF&#8221;). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the 2006 CEFF, Kingsbridge has committed to finance up to $50 million
        of
        capital to support the Company&#8217;s corporate, research and development activities.
        Subject to certain limitations, from time to time, the Company can require
        Kingsbridge to purchase up to an aggregate of 11,677,047 newly-issued shares
        of
        the Company&#8217;s Common Stock, par value $.001 per share, at a price that is
        between 90% and 94% of the volume weighted average price on each trading
        day
        during one or more eight trading day, forward-looking pricing periods. The
        maximum amount the Company may draw down in any pricing period is the lesser
        of
        2.5% of the Company&#8217;s market capitalization immediately prior to the
        commencement of the pricing period or $10 million. The minimum purchase price
        at
        which Common Stock may be sold in any pricing period, before applying the
        appropriate discount, is the greater of $2.00 or 85% of the closing price
        on the
        trading day immediately preceding the commencement of a pricing period. There
        must be at least three trading days between pricing periods. The maximum
        number
        of shares the Company may sell under the Purchase Agreement is 11,677,047
        shares
        of Common Stock, which together with the 490,000 shares of Common Stock issuable
        upon exercise of the Warrant is less than the maximum number of shares the
        Company may sell to Kingsbridge without approval of the Company&#8217;s stockholders
        under the applicable listing rules of the Nasdaq Stock Market. This cap on
        the
        number of shares issuable under the Purchase Agreement may limit the aggregate
        proceeds the Company is able to obtain under the 2006 CEFF.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the 2006 CEFF, the Company issued to Kingsbridge a Class
        C
        Investor Warrant (the &#8220;Warrant&#8221;) to purchase up to 490,000 shares of Common
        Stock with an exercise price of $5.6186 per share. The Warrant is exercisable
        for a five year period beginning October 17, 2006. The Warrant must be exercised
        for cash, except in limited circumstances.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is not obligated to utilize any of the $50 million available under
        the
        2006 CEFF and there are no minimum commitment or minimum use penalties. If,
        however, the Company does not draw down at least $2 million in each of two
        consecutive 12-month periods, Kingsbridge has the right to terminate the
        2006
        CEFF at the end of the 24th month of the term. The 2006 CEFF does not contain
        any restrictions on the Company&#8217;s operating activities, automatic pricing resets
        or minimum market volume restrictions. The 2006 CEFF does not limit the
        Company&#8217;s ability to offer, sell and/or issue securities of any kind, except
        that the Company is restricted from issuing &#8220;future-priced securities&#8221;, which
        are defined to include securities of any type where the purchase, conversion
        or
        exchange price is determined using any floating discount or post-issuance
        adjustable discount to the market price of the Company&#8217;s Common Stock. During
        the term of the 2006 CEFF, Kingsbridge is restricted from entering into or
        executing any &#8220;short sale&#8221; (as such term is defined in Rule 200 of Regulation
        SHO, or any successor regulation, promulgated by the SEC) of the Common
        Stock.</font></div>
    </div>
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      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the 2006 CEFF, the Company entered into a Registration Rights
        Agreement with Kingsbridge, whereby the Company agreed to file a registration
        statement with the SEC with respect to the resale of the shares issuable
        pursuant to the Purchase Agreement, the Registration Rights Agreement and
        underlying the Warrant. Under the Registration Rights Agreement, the Company
        has
        the right to pay certain amounts that may become owing to Kingsbridge thereunder
        in Common Stock. The issuance of any such Common Stock will reduce the number
        of
        shares of Common Stock issuable under the 2006 CEFF. The Purchase Agreement
        provides that upon the effective date of such registration statement, the
        Common
        Stock Purchase Agreement, dated July 7, 2004, between the Company and
        Kingsbridge will terminate. The Registration Rights Agreement, dated July
        7,
        2004, between the Company and Kingsbridge and the Class B Investor Warrant
        issued to Kingsbridge in connection with the 2004 CEFF will remain in full
        force
        and effect.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company relied on the exemption from registration provided by Section 4(2)
        of
        the Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated
        thereunder, in connection with obtaining Kingsbridge&#8217;s commitment under the 2006
        CEFF, and for the issuance of the Warrant in consideration of such
        commitment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Copies
        of
        the Warrant, the Purchase Agreement and the Registration Rights Agreement
        are
        attached as Exhibits 4.1, 10.1 and 10.2, respectively, to this Current Report
        on
        Form 8-K and are incorporated herein by reference. The foregoing description
        of
        the terms of these agreements does not purport to be complete, and is qualified
        in its entirety by reference to such exhibits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        April
        19, 2006 the Company issued a press release announcing the entry into the
        2006
        CEFF. The full text of the press release is set forth in Exhibit 99.1 to
        this
        Current Report on Form 8-K.</font></div>
      <div align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.02.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Termination
        of a Material Definitive Agreement</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Common Stock Purchase Agreement, dated July 7, 2004, between the Company
        and
        Kingsbridge will terminate on the effective date of the registration statement
        to be filed by the Company in connection with the 2006 CEFF. Such agreement
        originally committed Kingsbridge to finance up to $75 million through the
        purchase of shares of the Company&#8217;s Common Stock. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        information under Item 1.01 of this Current Report on Form 8-K is incorporated
        by reference into this Item 1.02.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        3.02.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Unregistered
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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        by reference into this Item 3.02.</font></div>
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                  C Investor Warrant, dated as of April 17, 2006, by and between
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                  Capital and the Company</font></div>
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              <td style="width: 27pt;">&#160;</td>
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                  Rights Agreement, dated as of April 17, 2006, by and between Kingsbridge
                  Capital and the Company</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 45pt;">&#160;</td>
              <td style="width: 27pt;">&#160;</td>
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
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        the
        extent that statements in this Current Report on Form 8-K are not strictly
        historical, including statements as to business strategy, outlook, objectives,
        future milestones, plans, intentions, goals, future financial conditions,
        future
        collaboration agreements, the success of the Company&#8217;s product development or
        otherwise as to future events, such statements are forward-looking, and are
        made
        pursuant to the safe harbor provisions of the Private Securities Litigation
        Reform Act of 1995. The forward-looking statements contained in this Current
        Report are subject to certain risks and uncertainties that could cause actual
        results to differ materially from the statements made. Such risks and others
        are
        further described in the Company's filings with the Securities and Exchange
        Commission including the most recent reports on Forms 10-K, 10-Q and 8-K,
        and
        any amendments thereto.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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        to the requirements of the Securities Exchange Act of 1934, the Company has
        duly
        caused this report to be signed on its behalf by the undersigned hereunto
        duly
        authorized. </font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>Discovery
              Laboratories, Inc.</strong></font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;April
              21, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Robert
              J.
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                  and Chief Executive
                  Officer</font></div>
              </div>
            </td>
          </tr>

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{"company-data": {"conformed-name": "DISCOVERY LABORATORIES INC /DE/", "cik": "0000946486", "assigned-sic": "2836", "irs-number": "943171943", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26422", "film-number": "06772839"}, "business-address": {"street1": "2600 KELLY ROAD", "street2": "SUITE 100", "city": "WARRINGTON", "state": "PA", "zip": "18976", "phone": "2154889300"}, "mail-address": {"street1": "2600 KELLY ROAD", "street2": "SUITE 100", "city": "WARRINGTON", "state": "PA", "zip": "18976"}, "former-company": [{"former-conformed-name": "ANSAN PHARMACEUTICALS INC", "date-changed": "19961121"}, {"former-conformed-name": "ANSAN INC", "date-changed": "19950609"}]}
UNITED
      STATES
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
April
      17, 2006
Date
      of
      Report (Date of earliest event reported)
Discovery
      Laboratories, Inc.
(Exact
      name of Company as specified in its charter)
Delaware
000-26422
94-3171943
(State
                or other jurisdiction
of
                incorporation)
(Commission
                File Number)
(IRS
                Employer
Identification
                Number)
2600
      Kelly Road, Suite 100
Warrington,
      Pennsylvania 18976-3622
(Address
      of principal executive offices)
(215)
      488-9300
(Company's
      telephone number, including area code)
(Former
      name or former address, if changed since last report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the Company under any of the following
      provisions:
[
      ]
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
[
      ]
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
[
      ]
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
[
      ]
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
        1.01.
Entry
        into a Material Definitive Agreement
On
        April
        17, 2006, Discovery Laboratories, Inc. (the "Company") entered into a Committed
        Equity Financing Facility (the "2006 CEFF") with Kingsbridge Capital Limited
        ("Kingsbridge") by way of a Common Stock Purchase Agreement (the "Purchase
        Agreement"). The Company previously entered into a CEFF with Kingsbridge on July
        8, 2004 (the "2004 CEFF").
Pursuant
        to the 2006 CEFF, Kingsbridge has committed to finance up to $50 million
        of
        capital to support the Company's corporate, research and development activities.
        Subject to certain limitations, from time to time, the Company can require
        Kingsbridge to purchase up to an aggregate of 11,677,047 newly-issued shares
        of
        the Company's Common Stock, par value $.001 per share, at a price that is
        between 90% and 94% of the volume weighted average price on each trading
        day
        during one or more eight trading day, forward-looking pricing periods. The
        maximum amount the Company may draw down in any pricing period is the lesser
        of
        2.5% of the Company's market capitalization immediately prior to the
        commencement of the pricing period or $10 million. The minimum purchase price
        at
        which Common Stock may be sold in any pricing period, before applying the
        appropriate discount, is the greater of $2.00 or 85% of the closing price
        on the
        trading day immediately preceding the commencement of a pricing period. There
        must be at least three trading days between pricing periods. The maximum
        number
        of shares the Company may sell under the Purchase Agreement is 11,677,047
        shares
        of Common Stock, which together with the 490,000 shares of Common Stock issuable
        upon exercise of the Warrant is less than the maximum number of shares the
        Company may sell to Kingsbridge without approval of the Company's stockholders
        under the applicable listing rules of the Nasdaq Stock Market. This cap on
        the
        number of shares issuable under the Purchase Agreement may limit the aggregate
        proceeds the Company is able to obtain under the 2006 CEFF.
In
        connection with the 2006 CEFF, the Company issued to Kingsbridge a Class
        C
        Investor Warrant (the "Warrant") to purchase up to 490,000 shares of Common
        Stock with an exercise price of $5.6186 per share. The Warrant is exercisable
        for a five year period beginning October 17, 2006. The Warrant must be exercised
        for cash, except in limited circumstances.
The
        Company is not obligated to utilize any of the $50 million available under
        the
        2006 CEFF and there are no minimum commitment or minimum use penalties. If,
        however, the Company does not draw down at least $2 million in each of two
        consecutive 12-month periods, Kingsbridge has the right to terminate the
        2006
        CEFF at the end of the 24th month of the term. The 2006 CEFF does not contain
        any restrictions on the Company's operating activities, automatic pricing resets
        or minimum market volume restrictions. The 2006 CEFF does not limit the
        Company's ability to offer, sell and/or issue securities of any kind, except
        that the Company is restricted from issuing "future-priced securities", which
        are defined to include securities of any type where the purchase, conversion
        or
        exchange price is determined using any floating discount or post-issuance
        adjustable discount to the market price of the Company's Common Stock. During
        the term of the 2006 CEFF, Kingsbridge is restricted from entering into or
        executing any "short sale" (as such term is defined in Rule 200 of Regulation
        SHO, or any successor regulation, promulgated by the SEC) of the Common
        Stock.
2
In
        connection with the 2006 CEFF, the Company entered into a Registration Rights
        Agreement with Kingsbridge, whereby the Company agreed to file a registration
        statement with the SEC with respect to the resale of the shares issuable
        pursuant to the Purchase Agreement, the Registration Rights Agreement and
        underlying the Warrant. Under the Registration Rights Agreement, the Company
        has
        the right to pay certain amounts that may become owing to Kingsbridge thereunder
        in Common Stock. The issuance of any such Common Stock will reduce the number
        of
        shares of Common Stock issuable under the 2006 CEFF. The Purchase Agreement
        provides that upon the effective date of such registration statement, the
        Common
        Stock Purchase Agreement, dated July 7, 2004, between the Company and
        Kingsbridge will terminate. The Registration Rights Agreement, dated July
        7,
        2004, between the Company and Kingsbridge and the Class B Investor Warrant
        issued to Kingsbridge in connection with the 2004 CEFF will remain in full
        force
        and effect.
The
        Company relied on the exemption from registration provided by Section 4(2)
        of
        the Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated
        thereunder, in connection with obtaining Kingsbridge's commitment under the 2006
        CEFF, and for the issuance of the Warrant in consideration of such
        commitment.
Copies
        of
        the Warrant, the Purchase Agreement and the Registration Rights Agreement
        are
        attached as Exhibits 4.1, 10.1 and 10.2, respectively, to this Current Report
        on
        Form 8-K and are incorporated herein by reference. The foregoing description
        of
        the terms of these agreements does not purport to be complete, and is qualified
        in its entirety by reference to such exhibits.
On
        April
        19, 2006 the Company issued a press release announcing the entry into the
        2006
        CEFF. The full text of the press release is set forth in Exhibit 99.1 to
        this
        Current Report on Form 8-K.
Item
        1.02.
Termination
        of a Material Definitive Agreement
The
        Common Stock Purchase Agreement, dated July 7, 2004, between the Company
        and
        Kingsbridge will terminate on the effective date of the registration statement
        to be filed by the Company in connection with the 2006 CEFF. Such agreement
        originally committed Kingsbridge to finance up to $75 million through the
        purchase of shares of the Company's Common Stock.
The
        information under Item 1.01 of this Current Report on Form 8-K is incorporated
        by reference into this Item 1.02.
Item
        3.02.
Unregistered
        Sales of Equity Securities
The
        information under Item 1.01 of this Current Report on Form 8-K is incorporated
        by reference into this Item 3.02.
3
Item
        9.01.
Financial
        Statements and Exhibits
(d)
Exhibits:
4.1
Class
                  C Investor Warrant, dated as of April 17, 2006, by and between
                  Kingsbridge
                  Capital and the Company
10.1
Common
                  Stock Purchase Agreement, dated as of April 17, 2006, by and between
                  Kingsbridge Capital and the Company
10.2
Registration
                  Rights Agreement, dated as of April 17, 2006, by and between Kingsbridge
                  Capital and the Company
99.1
Press
                  Release dated April 19, 2006
Cautionary
        Note Regarding Forward-looking Statements:
To
        the
        extent that statements in this Current Report on Form 8-K are not strictly
        historical, including statements as to business strategy, outlook, objectives,
        future milestones, plans, intentions, goals, future financial conditions,
        future
        collaboration agreements, the success of the Company's product development or
        otherwise as to future events, such statements are forward-looking, and are
        made
        pursuant to the safe harbor provisions of the Private Securities Litigation
        Reform Act of 1995. The forward-looking statements contained in this Current
        Report are subject to certain risks and uncertainties that could cause actual
        results to differ materially from the statements made. Such risks and others
        are
        further described in the Company's filings with the Securities and Exchange
        Commission including the most recent reports on Forms 10-K, 10-Q and 8-K,
        and
        any amendments thereto.
4
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Company has
        duly
        caused this report to be signed on its behalf by the undersigned hereunto
        duly
        authorized.
Discovery
              Laboratories, Inc.
Date: April
              21, 2006
By:
/s/ Robert
              J.
              Capetola
Robert
              J. Capetola, Ph.D.
President
                  and Chief Executive
                  Officer
5