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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**For      the Quarterly Period Ended March 31, 2007**

**DOR      BIOPHARMA, INC.**

| **DELAWARE**                                                                        |                                                                  | **41-1505029**                                         |
|-------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--------------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization)       |                                                                  | (I.R.S.                Employer Identification Number) |
|                                                                                |                                                                  |                                                   |
| **1101                Brickell Ave., Suite 701-S****Miami,                FL** |                                                                  | **33131**                                              |
| (Address                of principal executive offices)                             |                                                                  | (Zip                Code)                              |
|                                                                                | **(786)                425-3848**                                     |                                                   |
|                                                                                | (Issuer’s                telephone number, including area code) |                                                   |

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**Table      of Contents**

| **Item**                   | **Description**                                            | **Page** |
|----------------------------|------------------------------------------------------------|----------|
|                       |                                                       |     |
| **Part                I**  | **FINANCIAL                INFORMATION**                   |     |
| 1.                         | Financial                Statements.                       | 3        |
| 2.                         | Management’s                Discussion and Analysis. | 13       |
| 3.                         | Controls                and Procedures.                    | 20       |
|                       |                                                       |     |
| **Part                II** | **OTHER                INFORMATION**                       |     |
| 4.                         | Exhibits.                                                  | 21       |

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**PART      I. - FINANCIAL INFORMATION**

**ITEM      1 - **
**FINANCIAL      STATEMENTS**

|                                                                                                 |   |        |   |   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                                 |   |   |        |   |   |   |   |
| **Assets**Current                  assets:                                                           |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                                                           |   |        |   |   | **$**  | **5,203,701** |   |
|          Restricted                cash                      |   |   |   |   |   | 2,000,000 |   |
| Grants                  receivable                                                                   |   |   |   |   |   | **111,292** |   |
| Prepaid                  expenses                                                                    |   |   |   |   |   | **106,454** |   |
| Total                  current assets                                                                |   |   |   |   |   | **7,421,447** |   |
|                                                                                                 |   |   |   |   |   |   |   |
| Office                  and laboratory equipment, net                                           |   |   |   |   |   | **28,879** |   |
| Intangible                  assets, net                                                              |   |   |   |        |   | **1,166,300** |   |
| Total                  assets                                                                        |   |   |   |   | $      | **8,616,626** |   |
|                                                                                                 |   |   |   |   |   |   |   |
| **Liabilities                  and shareholders’ equity**Current                  liabilities: |   |   |   |   |   |   |   |
| Accounts                  payable                                                                    |   |   |   |   | $      | **1,411,792** |   |
|          Retainer                payable                     |   |   |   |   |   | **2,000,000** |   |
| Accrued                  compensation                                                                |   |   |   |   |   | **127,153** |   |
| Total                  current liabilities                                                           |   |   |   |   |   | **3,538,945** |   |
|  Shareholders’                  equity:                                                   |   |   |   |   |   |   |   |
| Common                  stock, $.001 par value. Authorized 250,000,000                               |   |   |   |   |   |   |   |
| shares;                  91,913,336 issued and outstanding                                           |   |   |   |   |   | **91,913** |   |
| Additional                  paid-in capital                                                          |   |   |   |   |   | **99,881,045** |   |
| Accumulated                  deficit                                                                 |   |   |   |   |   | **(94,895,277** | **)** |
| Total                  shareholders’ equity                                                    |   |   |   |   |   | **5,077,681** |   |
| Total                  liabilities and shareholders’ equity                                    |   |   |   |   | $      | **8,616,626** |   |

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|                                                                            |   | **2007** |                          |  2006 |   |
|---------------------------------------------------------------------------------|--------|----------|-------------------------------|------------|--------|
|                                                                            |   |     |                               |       |   |   |   |
|                                                                            |   |     |                          |       |   |   |   |
| Revenues:                                                                       |   | **$**    | **235,171**                   |       | $      | 1,387,632 |   |
| Cost                    of revenues                                             |   |     | **(78,071**                   | **)**      |   | (1,039,404 | ) |
| Gross                    profit                                                 |   |     | **157,100**                   |       |   | 348,228 |   |
|                                                                            |   |     |                          |       |   |   |   |
| Operating                    expenses:                                          |   |     |                          |       |   |   |   |
| Research                    and development                                     |   |     | **1,042,758**                 |       |   | 1,225,425 |   |
| General                    and administrative                                   |   |     | **1,340,376**                 |       |   | 833,193 |   |
| Total                    operating expenses                                     |   |     | **2,383,134**                 |       |   | 2,058,618 |   |
|                                                                            |   |     |                          |       |   |   |   |
| Loss                    from operations                                         |   |     | **(2,226,034**                | **)**      |   | (1,710,390 | ) |
|                                                                            |   |     |                          |       |   |   |   |
| Other                    income (expense):                                      |   |     |                          |       |   |   |   |
| Interest                    and other income                                    |   |     | **62,247**                    |       |   | 3,489 |   |
| Interest                    expense                                             |   |     | **(413**                      | **)**      |   | - |   |
| Total                    other income (expense)                                 |   |     | **61,834**                    |       |   | 3,489 |   |
|                                                                            |   |     |                          |       |   |   |   |
| Net                    loss                                                |   | $        | **(2,164,200**                | **)**      | $      | (1,706,901 | ) |
|                                                                            |   |     |                          |       |   |   |   |
| Basic                    and diluted net loss per share                    |   | $        | **(                    0.03** | **)**      | $      | (                    0.03 | ) |
|                                                                            |   |     |                          |       |   |   |   |
| Basic                    and diluted weighted average common shares outstanding |   |     | **82,529,085**                |       |   | 51,221,889 |   |

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|                                                                                                                                                  |   | **2007** |           |  2006  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|----------------|-------------|--------|
|                                                                                                                                                  |   |     |                |        |   |   |   |
| **Operating                  activities:**                                                                                                            |   |     |           |        |   |   |   |
| Net                  loss                                                                                                                             |   | **$**    | **(2,164,200** | **)**       | $      | (1,706,901 | ) |
| Adjustments                  to reconcile net loss to net cash used by operating                  activities:                                         |   |     |           |        |   |   |   |
| Amortization                  and depreciation                                                                                                        |   |     | **24,518**     |        |   | 50,631 |   |
|                            Non-cash                stock compensation                     |   |     | **767,661**    |        |   | 193,749 |   |
| Change                  in operating assets and liabilities:                                                                                          |   |     |           |        |   |   |   |
| Grants                  receivable                                                                                                                    |   |     | **(21,359**    | **)**       |   | (541,150 | ) |
| Prepaid                  expenses                                                                                                                     |   |     | **(11,984**    | **) ** |   | 3,751 |   |
|                            Accounts                payable       |   |     | **(700,686**   | **)**  |   | 1,375,654 |   |
|                            Accrued                royalties                                    |   |     | **-**          |        |   | (60,000 | )  |
| Accrued                  compensation                                                                                                                 |   |     | **(275,794**   | **)**       |   | 44,358 |   |
|                    Total adjustments                                                                                                             |   |     | **(217,644**   | **)**  |   | 1,066,993 |   |
| Net                  cash used by operating activities                                                                                                |   |     | **(2,381,844** | **)**       |   | (639,908 | ) |
|                                                                                                                                                  |   |     |           |        |   |   |   |
| **Investing                  activities:**                                                                                                            |   |     |           |        |   |   |   |
| Acquisition                  of intangible assets                                                                                                     |   |     | **(114,361**   | **)**       |   | (92,055 | ) |
| Purchases                  of equipment                                                                                                               |   |     | **(2,405**     | **)**       |   | - |   |
| Net                  cash used by investing activities                                                                                                |   |     | **(116,766**   | **)**       |   | (92,055 | ) |

| **Financing                  activities:**                                                                                                   |   |   |          |   |   |     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|----------|--------|
| Net                  proceeds from sale of common stock                                                                                      |   |   | **6,230,050** |   |   | 125,000  |   |
|                            Proceeds                from short term licensing retainer |   |   | **2,000,000** |   |   | -   |   |
|                              Proceeds                  from exercise of warrants      |   |   | **1,350,625** |   |   | -   |   |
| Proceeds                  from exercise of stock options                                                                                     |   |   | **2,000**     |   |   | 113,320  |   |
| Net                  cash provided by financing activities                                                                                   |   |   | **9,582,675** |   |   | 238,320  |   |
|                                                                                                                                         |   |   |          |   |   |     |   |
| Net                  increase (decrease) in cash and cash equivalents                                                                        |   |   | **7,084,065** |   |   | (493,593 | )      |
| Cash                  and cash equivalents at beginning of period                                                                            |   |   | **119,636**   |   |   | 821,702  |   |
| Cash                  and cash equivalents at end of period                                                                                  |   | **$**  | **7,203,701** |   | $      | 328,109  |   |

| **Non-cash                  transactions:**                                                                                                          |   |   |    |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|
|                            Non-cash                stock payment to an institutional investor |   | **$**  | **-**   |   | $      | 85,054 |   |
|             Cash                  paid for interest                                      |   | **$**  | **413** |   | $      | -      |   |

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**DOR        BioPharma, Inc.**

**Notes        to Consolidated Financial Statements**

**1.**
**Nature          of Business**

**2.**
**Summary              of Significant Accounting Policies**

**Basis              of Presentation**

**Grants              Receivable **

**Intangible              Assets **

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**Impairment              of Long-Lived Assets **

**Stock              Based Compensation **

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**Net      Loss Per Share**

**3.        Management’s Plan**

| ·   | The                  Company plans on calling existing warrants for exercise in cash                  when its                  stock price achieves appropriate levels enabling the call provisions                  of                  the warrants to take affect. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                  Company is exploring outlicensing opportunities for orBec® both in the US                  and Europe and for its BioDefense                  programs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                  Company plans to continue seeking grant funds from governmental                  sources.                  In September 2006, the Company received two grants totaling approximately                  $5,300,000 to support the development of its BioDefense vaccine                  programs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                  Company believes that its current cash position will allow it to                  operate                  over the next 12 months. However, several factors could affect                  this                  including the outcome of the Company’s NDA and MAA filings. Therefore, if                  there were no other sources of financing reductions or discontinued                  operations of several of the Company’s programs may be required. If this                  should occur, the Company believes it could continue to operate                  over the                  next eight quarters at a reduced level and only continue with the                  existing                  grant projects.  |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**4.        Intangible Assets**

|                                                                                                                           | **Weighted                      Average Amortization****period                      (years)** |   **Cost**             |  **Accumulated****Amortization** |   **Net                      Book Value** |
|--------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|----------------------------------|---------------------------------------|-----------------------------------------------------|
|                                      March 31, 2007 | 10.0                                                                                          | $                      1,853,782 | $                      687,482        | $                      1,166,300                    |
| December                      31, 2006                                                                                         | 10.1                                                                                          | $                      1,739,391 | $                      666,152        | $                      1,073,239                    |

|   | **Amortization                      Amount** |
|--------|----------------------------------------------|
| 2007   | $                      106,000               |
| 2008   |                         106,000    |
| 2009   |                         106,000    |
| 2010   |                         106,000    |
| 2011   |                         106,000    |

**5.              Grants Receivable**

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**6.                Shareholders’ Equity**

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**7.                Contingencies**

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**8.            Business Segments**

|                                                     |   | **For                the three months ended March 31,**                                        |
|----------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|
|                                                     |   | ** ****2007**                                                                                  |   |   |  2006 |   |
| **Revenues**                                             |   |                                                                                                |   |   |   |   |
| BioDefense                                               |   | **$                          235,171**            |   |   | $                           1,341,533 |   |
| BioTherapeutics                                          |   | **-**                                                                                               |   |   | 46,099 |   |
| **Total**                                                |   | **$                          235,171**            |   |   | $            1,387,632 |   |
|                                                     |   |                                                                                                |   |   |   |   |
| **Income                (Loss) from Operations**         |   |                                                                                                |   |   |   |   |
| BioDefense                                               |   | **$                            33,678**                |   |   | $                             153,278 |   |
| BioTherapeutics                                          |   | **(698,008**                                                                                        | **)** |   | (1,050,331 | ) |
| Corporate                                                |   | **(1,561,704**                                                                                      | **)** |   | (813,337 | ) |
| **Total**                                                |   | **$                     (2,226,034**                                       | **)** |   | $         (1,710,390 | ) |
|                                                     |   |                                                                                                |   |   |   |   |
| **Amortization                and Depreciation Expense** |   |                                                                                                |   |   |   |   |
| BioDefense                                               |   | **$                            18,804**      |   |   | $                              37,407 |   |
| BioTherapeutics                                          |   | **4,105**                                                                                           |   |   | 10,408 |   |
| Corporate                                                |   | **1,609**                                                                                           |   |   | 2,816 |   |
| **Total**                                                |   | **$                            24,518** |   |   | $                              50,631 |   |
|                                                     |   |                                                                                                |   |   |   |   |
| **Identifiable                Assets**                   |   |                                                                                                |   |   |   |   |
| BioDefense                                               |   | **$                         908,726**                  |   |   | $                         2,724,037 |   |
| BioTherapeutics                                          |   | **398,866**                                                                                         |   |   | 321,434 |   |
| Corporate                                                |   | **7,309,034**                                                                                       |   |   | 412,248 |   |
| **Total**                                                |   | **$                      8,616,626**                                  |   |   | $                        3,457,719 |   |

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**ITEM        2 - **
**MANAGEMENT’S        DISCUSSION AND ANALYSIS**

* The          following discussion and analysis provides information to explain our results          of          operations and financial condition. You should also read our unaudited          consolidated interim financial statements and their notes included in this          Form          10-QSB, and the our audited consolidated financial statements and their          notes          and other information included in our Annual Report on Form 10-KSB for          the year          ended December 31, 2006. This report contains forward-looking statements          within          the meaning of Section 21E of the Securities Exchange Act of 1934, as amended,          which are subject to the safe-harbor created by that Section. Forward-looking          statements within this Form 10-QSB are identified by words such as “believes,”“anticipates,” “expects,” “intends,” “may,” “will” “plans” and other similar*
*expression,*
*          however*
*,          these words are not the exclusive means of identifying such statements.          In          addition, any statements that refer to expectations projections or other          characterizations of future events or circumstances are forward-looking          statements. These forward-looking statements are subject to significant          risks,          uncertainties and other factors, including those identified in Exhibit          99.1“Risk Factors” filed with this Form 10-QSB, which may cause actual results to          differ materially from those expressed in, or implied by, these forward-looking          statements. *
*Except          as expressly required by the federal securities laws*
*,          we*
*          undertake no obligation to publicly update or revise any forward-looking          statements to reflect events*
*          or*
*,*
*          circumstances *
*or          developments *
*occurring          subsequent to the filing of this Form 10-QSB with the SE*
*C          *
*or          for any other reason and you should not place undue reliance on these          forward-looking statements. *
*You          should carefully review and consider the various disclosures the Company          makes          in this report and our other reports filed with the SEC that attempt to          advise          interested parties of the risks, uncertainties and other factors that may          affect          our business.*

**Overview:**

**Business        Overview and Strategy **

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**orBec**
**®**

**RiVax™            **

*Proceedings            of the National Academy of Sciences*

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**BT-VACC™**

*Clostridium            botulinum*

***LPM***
***TM***

*** -            Leuprolide***

***Oraprine***
***TM ***

*** ***

***LPE***
***TM***

***and PLP***
***TM***

***Systems for Delivery of Water-Insoluble Drugs***

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**Critical          Accounting Policies **

**Intangible            Assets**

**Research            and Development Costs **

**Revenue            Recognition**

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**Material          Changes in Results of Operations**

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**FINANCIAL          CONDITION:**

***                 Cash and Working Capital***

***                           Expenditures***

|                                                                      | **2007**                           | **2006**                           |
|---------------------------------------------------------------------------|------------------------------------|------------------------------------|
| ***Projects-Research                        & Development Expenses*** |                               |                               |
| orBec®                                                               | $                        730,144   | $                        990,494   |
| RiVax™                                                              | 158,323                            | 94,031                             |
| BT-VACC™                                                            | 141,491                            | 137,400                            |
| Oraprine™                                                           | 1,700                              | 1,700                              |
| LPMTM-Leuprolide                                                          | 11,100                             | 1,800                              |
| Research                        & Development Expense                 | $                        1,042,758 | $                        1,225,425 |
|                                                                      |                               |                               |
| *Projects-Reimbursed                        under Grant*                  |                               |                               |
| orBec®                                                               | $                        -         | $                        46,099    |
| RiVax™                                                              | 66,168                             | 993,305                            |
| BT-VACC™                                                            | 11,903                             | -                                  |
| Oraprine™                                                           | -                                  | -                                  |
| LPMTM-Leuprolide                                                          | -                                  | -                                  |
| Reimbursed                        under Grant                             | $                        78,071    | $                        1,039,404 |
|                                                                      |                               |                               |
| TOTAL                                                                     | $                        1,120,829 | $                        2,264,829 |

***                         Leases***

| **Contractual                  Obligations**    | **Year****2007**                      | **Year****2008**         | **Year****2009**         |
|-------------------------------------------------|---------------------------------------|--------------------------|--------------------------|
| Non-cancelable                  obligations (1) | $                    16,403 | $                  -     | $                  -     |
| **TOTALS**                                      | **$                  16,403**         | **$                  -** | **$                  -** |

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*** Equity          Transactions***

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**ITEM        3 -_CONTROLS AND PROCEDURES**

** **

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**PART        II - OTHER INFORMATION.**

**ITEM        4 - EXHIBITS**

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**SIGNATURES**

**DOR        BIOPHARMA, INC.**

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