Filed Pursuant to Rule 424(b)(3) and (c) File Number 333-36152 PROSPECTUS SUPPLEMENT NO. 1 DATED July 25, 2000 to Prospectus Dated May 30, 2000 INHALE THERAPEUTIC SYSTEMS, INC. $230,000,000 of 5% Convertible Subordinated Notes due February 8, 2007 and 2,998,305 Shares of Common Stock Issuable Upon Conversion of the Notes This prospectus supplement supplements the prospectus dated May 30, 2000 of Inhale Therapeutic Systems, Inc. relating to the public offering and sale by selling security holders described below. This prospectus supplement contains information on ownership of principal amount of notes beneficially owned and offered and shares of our common stock issuable upon conversion of the notes. This prospectus supplement should be read in conjunction with the prospectus, and this prospectus supplement is qualified by reference to the prospectus, except to the extent that the information provided by this prospectus supplement supersedes the information contained in the prospectus. SELLING SECURITY HOLDERS The table on pages 41, 42, 43 and 44 of the prospectus setting forth information concerning the selling security holders is amended by the addition of the following information to that table: COMMON PRINCIPAL STOCK COMMON AMOUNT OF NOTES ISSUABLE STOCK OWNED BENEFICIALLY UPON AFTER OWNED AND CONVERSION OF COMMON STOCK COMPLETION OF SELLING SECURITY HOLDER OFFERED (1) THE NOTES (1) OFFERED THE OFFERING - -------------------------------------------------- --------------- ------------- ------------ ------------- American Masters Fund/"AG Absolute Return Series" Ltd............................................. $ 500,000(2) 6,518 -- -- Angelo, Gordon & Co., L.P......................... $ 1,450,000(2) 18,902 -- -- Bankers Trust Trustee for Daimler Chrysler Corp EMP #1 Pension Plan DTD 4/1/89.................. $ 915,000(2) 11,928 -- -- Credit Suisse First Boston Corporation............ $ 1,680,000(2) 21,900 -- -- Franklin & Marshall College....................... $ 60,000(2) 782 -- -- Independent Blue Cross............................ $ 100,000 1,303 -- -- Michael Angelo, L.P............................... $ 1,450,000(2) 18,902 -- -- Morgan Stanley Dean Witter Convertible Securities Trust........................................... $ 1,000,000(2) 13,036 -- -- KBC Financial Products............................ $ 2,000,000 26,072 -- -- Ohio Bureau of Workers Compensation............... $ 120,000 1,564 -- -- Penn Treaty Network America Insurance Co.......... $ 75,000(2) 977 -- -- Ramius, L.P....................................... $ 800,000(2) 10,428 -- -- RCG Baldwin, L.P.................................. $ 1,000,000(2) 13,036 -- -- RCG Multi-Strategy Account, L.P................... $ 900,000(2) 11,732 -- -- Shell Pension Trust............................... $ 200,000 2,607 -- -- State Street Bank Custodian for GE Pension Trust........................................... $ 450,000(2) 5,866 -- -- Triarc Companies, Inc............................. $ 500,000(2) 6,518 -- -- Tribeca Investments LLC........................... $ 5,000,000(2) 65,180 -- -- - -------------------------- (1) Amounts indicated may be in excess of the total amount registered due to sales or transfers exempt from the registration requirements of the Securities Act since the date upon which the selling holders provided to us in the information regarding their notes. (2) Amounts listed are in addition to the principal amount of notes beneficially owned and offered by the selling holder already included in the prospectus. Information concerning the selling holders may change from time to time and any changed information will be set forth in supplements to this prospectus if and when necessary. In addition, the conversion rate and therefore, the number of shares of common stock issuable upon conversion of the notes, is subject to adjustment under certain circumstances. Accordingly, the aggregate principal amount of notes and the number of shares of common stock into which the notes are convertible may increase or decrease.