UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

    For the quarter ended September 30, 1998

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange
    Act of 1934

    For the transition period from ___________ to _____________
    Commission File Number: 2-89332


                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
             (Exact Name of Registrant as Specified in its Charter)


New Jersey                                                   22-2502556
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                               Identification No.)


783 Jersey Avenue, New Brunswick, New Jersey                 08901
(Address of principal executive offices)                    (Zip code)


(732) 249 - 3250
(Registrant's telephone number, including area code)




Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such shorter  period) that the  registrant  was
required  to file  such  reports  and  (2)  has  been  subject  to  such  filing
requirements for the past 90 days.

                                  Yes X No ___

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                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.

                               TABLE OF CONTENTS



                                                                        Page
                                                                        ----


Part I.  Financial Information:

         Condensed Balance Sheets--September 30, 1998
         and December 31, 1997 ........................................    1

         Condensed Statements of Operations -Three Months
         and Nine Months Ended September 30, 1998 and 1997 ............    2

         Condensed Statements of Cash Flows--
         Nine Months Ended September 30, 1998 and 1997 ................    3

         Notes to Condensed Financial Statements ......................    4

         Management's Discussion and Analysis of Financial
         Condition and Results of Operations ..........................  5-6

Part II.  Other Information ...........................................    7

Signatures ............................................................    8


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<TABLE>


                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
                        PART I. FINANCIAL INFORMATION

                            CONDENSED BALANCE SHEETS


<CAPTION>
                                                 September 30,    December 31,
                                                     1998            1997
                                                 (Unaudited)           *
                                                --------------   --------------

<S>                                             <C>               <C>    

ASSETS

Total assets                                    $  ---            $  ---                                                         
                                                ==========        ==========

LIABILITIES AND PARTNERS' CAPITAL

Partners' capital
Limited partners                                $  ---            $  ---
General partner                                    ---               ---
                                                ----------        ----------

Total partners' capital                            ---               ---
                                                ----------        ----------

Total liabilities and partners' capital         $  ---            $  ---
                                                ==========        ==========



</TABLE>



*The condensed  balance sheet as of December 31, 1997 has been  summarized  from
the Partnership's audited balance sheet as of that date.

The  accompanying  notes  are an  integral  part of  these  condensed  financial
statements.


<PAGE>


<TABLE>

                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.

<CAPTION>
                       CONDENSED STATEMENTS OF OPERATIONS

                                   (Unaudited)


                                  Three Months Ended        Nine Months Ended
                                    September 30,              September 30,
                                  -------------------      -------------------
                                   1998      1997        1998         1997
                                  -----      -----      ------       ------
<S>                              <C>         <C>        <C>          <C>    


Net income (loss)                $ ---       $ ---      $ ---        $ ---
                                 =======     =======    =======      =======

Net income (loss)
 Limited Partners                $ ---       $ ---      $ ---        $ ---

Net income (loss)
 General Partner                   ---         ---        ---          ---
                                 -------     -------    -------      -------

Net income (loss)                $ ---       $ ---      $ ---        $ ---
                                 =======     =======    =======      =======


                                 Net Income  Net Income Net Income   Net Income
                                   (loss)      (loss)     (loss)       (loss)
                                   per unit  per unit    per unit     per unit
                                  --------------------- -----------------------

Basic and diluted income(loss)
  per unit - Limited Partners
 (1038.7 units outstanding)      $ ---       $ ---      $ ---        $ ---
                                 =======     =======    =======      =======

</TABLE>


The  accompanying  notes  are an  integral  part of  these  condensed financial
statements.

<PAGE>


<TABLE>

                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.

<CAPTION>
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)





                                                   Nine Months Ended
                                                     September 30,
                                                -----------------------
                                                1998               1997
                                                ----               ----
<S>                                            <C>                <C>   

Net change in cash                             $ ---              $ ---
                                               -------            -------

Cash at beginning of period                    $ ---              $ ---
                                               -------            -------

Cash at end of period                          $  ---             $ ---
                                               -------            -------

</TABLE>
















The  accompanying  notes  are an  integral  part of  these  condensed  financial
statements.


<PAGE>


                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)





Note 1.   Basis of Presentation

     The financial  information included herein is unaudited.  Such information,
however,  reflects  all  adjustments  (consisting  solely  of  normal  recurring
adjustments)  which are, in the opinion of the General  Partner  necessary  to a
fair statement of the results for the interim  periods.  The results for interim
periods are not necessarily indicative of results to be expected for the year.

Note 2.   Related Party Transactions

     During 1984, the  Partnership and Interferon  Sciences,  Inc. (ISI) entered
into several agreements including a Development  Contract whereby  substantially
all of the net proceeds of the 1984 sale of  Partnership  Units were paid to ISI
in periodic  payments over the term of the  Partnership's  development  program.
Such  payments were used to fund research and  development  and clinical  trials
necessary  for  obtaining   regulatory   approval  with  respect  to  a  topical
formulation  containing recombinant alpha interferon for the treatment of herpes
genitalis (Alferon(R) Gel). By September 30, 1986, the Partnership exhausted the
net  proceeds  of  the  offering.  The  General  Partner,   Interferon  Sciences
Development  Corporation  (ISD),  a wholly owned  subsidiary  of ISI,  agreed to
contribute  up  to an  additional  $433,000,  under  certain  circumstances,  to
continue the research.  Notwithstanding that commitment,  from September 1986 to
October 1990, the General  Partner  contributed  $1,997,000  towards the cost of
such research. Beginning November 1990, the General Partner discontinued funding
the development of Alferon Gel containing recombinant  interferon.  Beginning in
1992,  ISI  commenced  further  development  of Alferon Gel using ISI's  natural
source  multi-species  alpha interferon  (Alferon N Gel) in place of recombinant
interferon.





<PAGE>


                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD. 

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Financial Condition and Liquidity

     As of  September  30,  1986,  the  Partnership  had  exhausted  all  of its
available  funds for the funding of research and development of Alferon Gel. The
General Partner agreed to contribute up to an additional $433,000, under certain
conditions,  to continue  the  research.  Such amount was based on the number of
units sold in the offering. Notwithstanding that commitment, from September 1986
to October 1990, the General Partner contributed  $1,997,000 towards the cost of
such research. During May 1987, ISI filed a Product License Application with the
Food and Drug  Administration  (FDA) for approval to market  Alferon  Gel.  This
filing  was  supplemented  in  1989  with  an  updated  clinical  summary  and a
comprehensive  statistical  analysis of the completed  trials. At a meeting with
the FDA in February 1990, the FDA indicated that additional process  development
and clinical  trials  would be  necessary  prior to approval of Alferon Gel. ISI
believed,  at that  time,  that  the  costs to  complete  the  required  process
development  and  clinical  trials would be  substantial,  and there could be no
assurance that the clinical trials would be successful. As a result of the above
events,  in March 1992,  ISI withdrew its FDA Product  License  Application  for
Alferon Gel containing recombinant interferon.

     The General Partner does not anticipate  that the Partnership  will receive
any revenues in 1998. In addition, the Partnership is not in a position to incur
additional  expenses since it has exhausted all its available  funds, and ISI is
currently  developing  Alferon N Gel using ISI's natural  source,  multi-species
alpha interferon in place of recombinant interferon.

     The  Partnership  is ultimately  reliant upon ISI for funding.  ISI has had
continuing  losses from  operaitons and has an  accumulated  deficit which raise
substantial doubt about its ability to continue as a going concern.

     ISI does not  presently  intend to  exploit  Alferon  Gel (the  Partnership
Product).  ISI is currently  focusing  its clinical  efforts on Alferon N Gel, a
formulation containing ISI's natural alpha interferon (interferon alfa-n3) which
was developed for the topical  treatment of viral diseases and cancers affecting
the skin and mucosal  tissues.  ISI has  completed a small Phase 2  dose-ranging
study using  Alferon N Gel at the  Columbia-Presbyterian  Medical  Center in New
York for the treatment of mild cervical  dysplasia.  Pap smears,  identification
tests for the presence of virus, and cervical biopsies  indicated that Alferon N
Gel appears to have the potential for improving the course of cervical dysplasia
in the majority of patients who completed the treatment course. In addition,  an
investigator-sponsored,  Phase 2 randomized,  placebo-controlled,  double-blind,
parallel group clinical study to investigate  the potential use of Alferon N Gel
for the treatment of intravaginal warts commenced in January 1998.

     Under the terms of the Partnership  Agreement,  a royalty may be payable to
the Partnership by reason of the commercial exploitation of Alferon N Gel to the
extent that it utilizes any of the Partnership Technology, which royalty will be
adjusted based upon the proportional funding contributions to the development of
Alferon N Gel by the Partnership and ISI. If ISI obtains additional financing in
the future, ISI may exploit Alferon N Gel for herpes genitalis which may entitle
the  Partnership  to a royalty in respect to a product  which  competes with the
Partnership  Product;  however,  this  royalty  will be adjusted  based upon the
proportional  funding  contributions  to the development of Alferon N Gel by the
Partnership and ISI.

Results of Operations

     Since ISI did not make any contributions to the Partnership during the nine
months ended  September 30, 1998 and 1997,  the  Partnership  did not record any
expense or income.




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                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.


                           PART II. OTHER INFORMATION





Item 6.      Exhibits and Reports on Form 8-K


             (b) Reports on form 8-K

              There were no reports  on Form 8-K filed  during the three  months
ended September 30, 1998.





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                   INTERFERON SCIENCES RESEARCH PARTNERS, LTD.

                               SEPTEMBER 30, 1998




                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  in its  behalf by the
undersigned thereunto duly authorized.


                                  Interferon Sciences Research Partners, Ltd.,
                                            A Limited Partnership
                                                 (Registrant)

                                  By: Interferon Sciences Development
                                      Corporation - General Partner



DATE:  November 16, 1998          By: /s/ Samuel H. Ronel, Ph.D.
                                          ----------------------
                                          Samuel H.Ronel, Ph.D.
                                                President




DATE:  November 16, 1998          By: /s/ Donald W. Anderson
                                          ----------------------
                                          Donald W. Anderson
                                              Controller