----

----

| DELAWARE                                                            |                                                        | 41-1505029                                   |
|---------------------------------------------------------------------|-------------------------------------------------------------|----------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |                                                        | (I.R.S.      Employer Identification Number) |
|                                                                |                                                        |                                         |
| 850      Bear Tavern Road, Suite 201Ewing,      NJ                  |                                                        | 08628                                        |
| (Address      of principal executive offices)                       |                                                        | (Zip      Code)                              |
|                                                                | (609)      538-8200                                         |                                         |
|                                                                | (Issuer’s      telephone number, including area code) |                                         |

| Large      accelerated filer  o | Accelerated      filer o      | Non-accelerated      filer o  | Smaller      reporting company x |
|--------------------------------------|--------------------------------------------------------|------------------------------------|----------------------------------|

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| Item         | Description                                                                                       | Page   |
|--------------|---------------------------------------------------------------------------------------------------|--------|
|         |                                                                                              |   |
| Part      I  | FINANCIAL      INFORMATION                                                                        |   |
| 1.           | Consolidated Financial Statements.                                                                | 3      |
| 2.           | Management’s Discussion and Analysis of Financial Condition      and Results of Operations. | 16     |
| 3.           | Quantitative and Qualitative Disclosure About Market      Risk.                                   | 26     |
| 4.           | Controls and Procedures.                                                                          | 26     |
|         |                                                                                              |   |
| Part      II | OTHER      INFORMATION                                                                            |   |
| 5.           | Exhibits.                                                                                         | 28     |
|         |                                                                                              |   |

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ITEM 1 -FINANCIALSTATEMENTS

DOR BioPharma, Inc.

|                                                                                                                                                            |   |   | September      30, 2008                   |    |   |   |   |   | December      31, 2007 |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------|--------|--------|------------------------|---------|
|                                                                                                                                                            |   |   |           (Unaudited) |    |   |   |   |   |                   |    |
| AssetsCurrent      assets:                                                                                                                                      |   |   |                                      |    |   |   |   |   |                   |    |
|         Cash                                                                                                            |   | $      | 686,216                                   |    |   |   |   | $      | 2,220,128              |    |
|         Accounts      receivable                                                                                        |   |   | 204,655                                   |    |   |   |   |   | 97,845                 |    |
|              Inventory, net                                                                                                  |   |   | 83,182                                    |    |   |   |   |   | -                      |    |
|         Prepaid      expenses                                                                                           |   |   |  128,630                             |    |   |   |   |   | 119,178                |    |
| Total      current assets                                                                                                                                       |   |   | 1,102,683                                 |    |   |   |   |   | 2,437,151              |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Office      and laboratory equipment, net                                                                                                                       |   |   | 21,896                                    |    |   |   |   |   | 25,941                 |    |
| Intangible      assets, net                                                                                                                                     |   |   | 1,412,278                                 |    |   |   |   |   | 1,320,787              |    |
| Total      assets                                                                                                                                               |   | $      | 2,536,857                                 |    |   |   |   | $      | 3,783,879              |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Liabilities      and shareholders’ equity                                                                                                                 |   |   |                                      |    |   |   |   |   |                   |    |
| Current      liabilities:                                                                                                                                       |   |   |                                      |    |   |   |   |   |                   |    |
|         Accounts      payable                                                                                           |   | $      | 1,361,360                                 |    |   |   |   | $      | 847,610                |    |
|         Accrued      compensation                                                                                       |   |   | 279,320                                   |    |   |   |   |   | 345,903                |    |
|  Total      current liabilities                                                                                                                            |   |   | 1,640,680                                 |    |   |   |   |   | 1,193,513              |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Shareholders’      equity:                                                                                                                                |   |   |                                      |    |   |   |   |   |                   |    |
|         Common      stock, $.001 par value. Authorized 250,000,000                                                      |   |   |                                      |    |   |   |   |   |                   |    |
|              shares; 101,805,497      and 94,996,547, respectively issued and outstanding |   |   | 101,805                                   |    |   |   |   |   |  94,996           |    |
|         Additional      paid-in capital                                                                                 |   |   | 102,793,670                               |    |   |   |   |   | 101,391,090            |    |
|         Accumulated      deficit                                                                                        |   |   | (101,999,298                              |  ) |   |   |   |   | (98,895,720            | )  |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Total      shareholders’ equity                                                                                                                           |   |   | 896,177                                   |    |   |   |   |   |  2,590,366        |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Total      liabilities and shareholders’ equity                                                                                                           |   | $      | 2,536,857                                 |    |   |   |   |   |  3,783,879        |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |

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|                                                                               |   |    | 2008                  |    |    | 2007               |          |
|------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------|---------|---------|--------------------|--------------------|
|                                                                               |   |    |                                                          |    |    |               |               |
| Revenues                                                                           |   | $       |        605,736                                           |    | $       | 429,445            |               |
| Cost      of revenues                                                              |   |    | (538,182                                                      | )       |    | (301,672           | )                  |
|            Gross profit                                   |   |    | 67,554                                                        |    |    | 127,773            |               |
|                                                                               |   |    |                                                          |    |    |               |               |
| Operating      expenses:                                                           |   |    |                                                          |    |    |               |               |
|        Research and development                                               |   |    |        60,238                                            |    |    | 591,668            |               |
|        General and administrative                                             |   |    |               410,336 |    |    |  509,133      |               |
|        Stock based compensation research and development                 |   |    |        39,584                                            |    |    |        77,362 |               |
|        Stock based compensation general and administrative               |   |    |  36,792                                                  |    |    |  206,713      |               |
|            Total operating expenses                       |   |    | 546,950                                                       |    |    | 1,384,876          |               |
|                                                                               |   |    |                                                          |    |    |               |               |
| Loss      from operations                                                          |   |    | (479,396                                                      | )       |    | (1,257,103         | )                  |
|                                                                               |   |    |                                                          |    |    |               |               |
| Other      income (expense):                                                       |   |    |                                                          |    |    |               |               |
|        Interest income                                                        |   |    |  5,391                                                   |    |    | 10,121             |               |
|        Interest (expense)                                                     |   |    |  (      1,696                                            | )  |    | -                  |               |
|            Total other income (expense)                   |   |    | 3,695                                                         |    |    | 10,121             |               |
|                                                                               |   |    |                                                          |    |    |               |               |
| Net      loss                                                                      |   |  $ | (475,701                                                      | )       |  $ | (1,246,982         | )                  |
|                                                                               |   |    |                                                          |    |    |               |               |
| BasicBBasic      and diluted net loss per share                               |   | $       | (0.00                                                         | )       | $       | (0.01              | )                  |
|                                                                               |   |    |                                                          |    |    |               |               |
| Basic  Basic      and diluted weighted average common shares outstanding |   |    | 102,767,174                                                   |    |    | 92,938,838         |               |

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DOR BioPharma, Inc.

|                                                                                                                                      |   |    | 2008                    |    |    | 2007                |          |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------------------------------------------------------------|---------|---------|---------------------|--------------------|
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
| Revenues                                                                                                                                  |   | $       |        1,771,620                                           |    | $       | 943,737             |               |
| Cost      of revenues                                                                                                                     |   |    | (1,459,206                                                      | )       |    | (669,882            | )                  |
|            Gross profit                                                                                          |   |    | 312,414                                                         |    |    | 273,855             |               |
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
| Operating      expenses:                                                                                                                  |   |    |                                                            |    |    |                |               |
|        Research and development                                                                                                      |   |    |        1,403,841                                           |    |    | 2,611,220           |               |
|        General and administrative                                                                                                    |   |    |               1,812,972 |    |    |  2,243,212     |               |
|        Stock based compensation research and development                                                                        |   |    |        118,750                                             |    |    |        164,890 |               |
|        Stock based compensation general and administrative                                                                      |   |    |  110,378                                                   |    |    |  364,423       |               |
|            Total operating expenses                                                                              |   |    | 3,445,941                                                       |    |    | 5,383,745           |               |
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
| Loss      from operations                                                                                                                 |   |    | (3,133,527                                                      | )       |    | (5,109,890          | )                  |
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
| Other      income (expense):                                                                                                              |   |    |                                                            |    |    |                |               |
|        Interest income                                                                                                               |   |    |  32,248                                                    |    |    | 144,062             |               |
|        Interest (expense)                                                                                                            |   |    |  (2,300                                                    | )  |    | (1,020              | )             |
|            Total other income (expense)                                                                          |   |    | 29,948                                                          |    |    | 143,042             |               |
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
| Net      loss                                                                                                                             |   |  $ | (3,103,579                                                      | )       |  $ | (4,966,848          | )                  |
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
|                  Basic and diluted net loss per share                         |   | $       | (0.03                                                           | )       | $       | (0.06               | )                  |
|                                                                                                                                      |   |    |                                                            |    |    |                |               |
|             Basic      and diluted weighted average common shares outstanding |   |    | 100,478,733                                                     |    |    | 89,389,416          |               |

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|                                                                                  |   | 2008          |         | 2007    |    |
|---------------------------------------------------------------------------------------|--------|---------------|--------------|---------|---------|
| Operating      activities                                                             |   |          |         |    |    |   |   |
|         Net loss                                                            |   | $             | (3,103,579   | )       | $       | (4,966,848 | ) |
|                                                                                  |   |          |         |    |    |   |   |
| Adjustments      to reconcile net loss to net cash used by operating      activities: |   |          |         |    |    |   |   |
|          Amortization and depreciation                                 |   |          | 107,804      |    |    |  84,475 |   |
|          Non-cash stock compensation                                   |   |          | 623,289      |    |    | 1,201,306 |   |
|                                                                                  |   |          |         |    |    |   |   |
| Change      in operating assets and liabilities:                                      |   |          |         |    |    |   |   |
|          Accounts receivable                                      |   |          | (106,810     | )  |    | (83,701 | )  |
|          Prepaid expenses                                              |   |          |  (9,452 | )  |    | (53,467 | ) |
|          Accounts payable                                              |   |          | 514,452      |    |    | (1,064,096 | ) |
|          Inventory                                                     |   |          | (83,182      | )  |    | - |   |
|          Accrued compensation                                          |   |          | (67,784      | )  |    | (271,102 | ) |
| Total      adjustments                                                                |   |          | 978,317      |    |    | (186,585 | ) |
|                                                                                  |   |          |         |    |    |   |   |
|          Net cash used by operating activities                         |   |          | (2,125,262   | )       |    | (5,153,433 | ) |
|                                                                                  |   |          |         |    |    |   |   |
| Investing      activities:                                                            |   |          |         |    |    |   |   |
|  Acquisition      of intangible assets                                           |   |          | (191,350     | )       |    | (294,404 | ) |
|  Purchase      of office equipment                                               |   |          | (3,400       | )       |    | (10,182 | ) |
|          Net cash used by investing activities                         |   |          | (194,750     | )       |    | (304,586 | ) |
|                                                                                  |   |          |         |    |    |   |   |
| Financing      activities:                                                            |   |          |         |    |    |   |   |
|  Proceeds      from sale of common stock                                         |   |          | 658,600      |    |    | 6,235,404 |   |
|  Proceeds      from equity line                                                  |   |          | 127,500      |    |    | - |   |
|  Proceeds      from exercise of warrants                                         |   |          | -            |    |    |  1,530,763 |   |
|  Proceeds      from exercise of stock options                                    |   |          | -            |    |    | 117,000 |   |
|          Net cash provided by financing activities                     |   |          | 786,100      |    |    | 7,883,167 |   |
|                                                                                  |   |          |         |    |    |   |   |
| Net      increase (decrease) in cash and cash equivalents                             |   |          | (1,533,912   | )       |    | 2,425,148 |   |
|          Cash and cash equivalents at beginning of period              |   |          | 2,220,128    |    |    | 119,636 |   |
|          Cash and cash equivalents at end of period                    |   | $             | 686,216      |    | $       | 2,544,784 |   |
|                                                                                  |   |          |         |    |    |   |   |
| Supplemental      disclosure of cash flow:                                            |   |          |         |    |    |   |   |
|          Cash paid for interest                                        |   | $             | 1,696        |    | $       | 413 |   |
| Non-cash      transactions:                                                           |   |          |         |    |    |   |   |
|          Non-cash stock payment to an institutional investor           |   |        $ | 270,000      |    | $  | - |   |

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| ·   | The      Company is and will continue to seek capital in the private and/or public      equity markets to continue itsoperations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has implemented an austerity budget plan including suspension of      its programs not supported by grant funding, reduction of office      personnel, and reduction in overheadexpenses. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company will also seek capital through licensing of orBec®. |
|--------------------|---------------------------------------------------------------------------|

| ·   | The      Company is continuing to seek grant funds and to respond to requests for      proposals from governmentalsources. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has and will utilize Names Patient Sales wherever possible in      countries outside the United States to generate revenues from orBec®. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company is exploring outlicensing opportunities for LPM-Leuprolide and      BioDefense programs in the United States and in  Europe. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has engaged investment bankers to assist in exploring merger and      acquisition opportunities. |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

|                         | Weighted      Average Amortization period (years) |   Cost                 |   |  AccumulatedAmortization |   |   Net      Book Value  |
|------------------------------|---------------------------------------------------|----------------------------------|--------|-------------------------------|--------|----------------------------------|
| September      30, 2008      |                                              |                             |   |                          |   |                             |
| Licenses                     | 12.2                                              | $         462,234 |   | $   136,128    |   | $         326,106 |
| Patents                      | 9.2                                               |    1,824,839      |   |    738,667     |   |    1,086,172      |
| Total                        | 9.8                                               | $ 2,287,073                      |   | $   874,795         |   | $ 1,412,278                      |
|  December      31, 2007 |                                              |                             |   |                          |   |                             |
| Licenses                     | 12.7                                              | $         462,234 |   | $   115,681    |   | $         346,553 |
| Patents                      | 9.7                                               |    1,633,490      |   |    659,256     |   |    974,234        |
| Total                        | 10.4                                              | $ 2,095,724                      |   | $   774,937         |   | $1,320,787                       |

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| Year | Amortization      Amount              |
|------|---------------------------------------|
| 2008 | $   140,000            |
| 2009 |      140,000 |
| 2010 |      140,000 |
| 2011 |      142,000 |
| 2012 |      145,000 |

|                                                                |                      September      30, 2008                                        |    |                                                                                                                                               |    | December      31, 2007 |   |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------|--------|
| Deferred      tax assets:                                           |                                                                                                                                                                                         |    |                                                                                                                                               |    |                   |   |
| Net      operating loss carry forwards                              | $      27,400,000                                                                                                                                                                            |    | $25,000,000                                                                                                                                        |    |
| Orphan      drug and research and development credit carry forwards | 1,800,000                                                                                                                                                                                    |    | 2,000,000                                                                                                                                          |    |
| Other                                                               | 3,000,000                                                                                                                                                                                    |    | 3,000,000                                                                                                                                          |    |
| Total                                                               |   32,200,000                                                                                                                                                                       |    |   30,000,000                                                                                                                             |    |
| Valuation      allowance                                            | (32,200,000                                                                                                                                                                                  |  ) | (30,000,000                                                                                                                                        |  ) |
| Net      deferred tax assets                                        |              $                       - |    |        $                 - |    |

| Year | Net      Operating Loss Carryforwards |
|------|---------------------------------------|
| 2008 | $   910,000            |
| 2009 |   1,330,000                 |
| 2010 |   1,410,000                 |
| 2011 |      870,000 |
| 2012 |   3,870,000                 |

|                                           |                            2008 |                |                                                                                                                                              |           |                              2007 |   |
|------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Federal      and State Stautory Tax Rates      |                                                                                                                                                                   |                |                                                                                                                                              |           |                                                                                                                                                 |   |
| Income      tax loss at federal statutory rate | (34.00                                                                                                                                                                 | )       %      | (34.00                                                                                                                                            | )      %  |
| State      taxes, net of federal benefit       | (4.00                                                                                                                                                                  | )              | (4.29                                                                                                                                             | )         |
| Valuation      allowance                       | 38.00                                                                                                                                                                  |                | 38.29                                                                                                                                             |           |
| Provision      for income taxes (benefit)      |              -                                                                                        |         % |                         - |        %  |

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|                                       |   | September      30, |         |
|--------------------------------------------|--------|--------------------|--------------|
|                                       |   | 2008               |         | 2007 |   |
| Net      Revenues                          |   |               |         |   |   |   |   |
| BioDefense                                 |   | $                  | 565,118      |   | $ | 429,445 |   |
| BioTherapeutics                       |   |               | 40,618       |   |   |  - |   |
|        Total                          |   | $                  | 605,736      |   | $ | 429,445 |   |
|                                       |   |               |         |   |   |   |   |
| Loss      from Operations                  |   |               |         |   |   |   |   |
| BioDefense                                 |   | $                  | 23,403       |   | $ | 25,676 |   |
| BioTherapeutics                            |   |               | (305,920     | ) |   | (581,363 | ) |
| Corporate                                  |   |               | (196,879     | ) |   | (701,416 | ) |
|        Total                          |   | $                  | (479,396     | ) | $ | (1,257,103 | ) |
|                                       |   |               |         |   |   |   |   |
| Identifiable      Assets                   |   |               |         |   |   |   |   |
| BioDefense                                 |   | $                  | 962,575      |   | $ | 984,286 |   |
| BioTherapeutics                            |   |               | 584,358      |   |   | 511,690 |   |
| Corporate                                  |   |               | 989,924      |   |   | 2,693,135 |   |
|        Total                          |   | $                  | 2,536,857    |   | $ | 4,189,111 |   |
|                                       |   |               |         |   |   |   |   |
| Amortization      and Depreciation Expense |   |               |         |   |   |   |   |
| BioDefense                                 |   | $                  | 17,462       |   | $ | 31,062 |   |
| BioTherapeutics                            |   |               | 14,679       |   |   | 3,462 |   |
| Corporate                                  |   |               | 1,159        |   |   | 1,525 |   |
|        Total                          |   | $                  | 33,300       |   | $ | 36,049 |   |
|                                       |   |               |         |   |   |   |   |
| Interest      Income                  |   |               |         |   |   |   |   |
| Corporate                             |   |  $            | 5,391   |   |  $ | 10,121 |   |
|         Total                    |   |  $            | 5,391   |   |  $ | 10,121 |   |
|                                       |   |               |         |   |   |   |   |
| Stock      Option Compensation             |   |               |         |   |   |   |   |
| BioDefense                                 |   |  $            | 19,517  |   |  $ | 34,027 |   |
| BioTherapeutic                        |   |               | 20,067  |   |   |  43,335 |   |
| Corporate                             |   |               | 36,792  |   |   |  206,713 |   |
|         Total               |   |  $            | 76,376  |   |  $ | 284,075 |   |
|                                       |   |               |         |   |   |   |   |

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|                                       |   | September      30, |          |
|--------------------------------------------|--------|--------------------|---------------|
|                                       |   | 2008               |          | 2007 |   |
| Net      Revenues                          |   |               |          |   |   |   |   |
| BioDefense                                 |   | $                  | 1,731,002     |   | $ | 943,737 |   |
| BioTherapeutics                       |   |               |  40,618  |   |   |  - |   |
|        Total                          |   | $                  | 1,771,620     |   | $ | 943,737 |   |
|                                       |   |               |          |   |   |   |   |
| Loss      from Operations                  |   |               |          |   |   |   |   |
| BioDefense                                 |   | $                  | (151,938      | ) | $ | (51,010 | )  |
| BioTherapeutics                            |   |               | (1,353,831    | ) |   | (2,276,555 | ) |
| Corporate                                  |   |               | (1,627,758    | ) |   | (2,782,325 | ) |
|        Total                          |   | $                  | (3,133,527    | ) | $ | (5,109,890 | ) |
|                                       |   |               |          |   |   |   |   |
| Amortization      and Depreciation Expense |   |               |          |   |   |   |   |
| BioDefense                                 |   | $                  | 61,160        |   | $ | 68,293 |   |
| BioTherapeutics                            |   |               | 42,671        |   |   | 11,593 |   |
| Corporate                                  |   |               | 3,973         |   |   | 4,587 |   |
|        Total                          |   | $                  | 107,804       |   | $ | 84,473 |   |
|                                       |   |               |          |   |   |   |   |
| Interest      Income                  |   |               |          |   |   |   |   |
| Corporate                             |   |  $            | 32,248        |   |  $ | 144,062 |   |
|         Total                    |   |  $            | 32,248        |   |  $ | 144,062 |   |
|                                       |   |               |          |   |   |   |   |
| Stock      Option Compensation             |   |               |          |   |   |   |   |
| BioDefense                                 |   |  $            | 58,550   |   |  $ | 63,387 |   |
| BioTherapeutic                        |   |               | 60,200   |   |   |  101,503 |   |
| Corporate                             |   |               | 110,378  |   |   |  364,423 |   |
|         Total               |   |  $            | 229,128  |   |  $ | 529,313 |   |
|                                       |   |               |          |   |   |   |   |

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ITEM 2 –MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL AND RESULTS OFOPERATIONS

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| ·   | We      will continue to seek capital in the private and/or public equity markets      to continue our operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | We      have implemented an austerity budget plan including suspension of our      programs not supported by grant funding, reduction of office personnel,      and a reduction in overheadexpenses. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      will also seek capital through licensing of orBec®. |
|--------------------|------------------------------------------------------------------|

| ·   | We      will continue to seek grant funds and to respond to requests for proposals      from governmental sources. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | We      will utilize Name Patient Sales wherever possible in countries outside the      United States to generate revenues from orBec®. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      are exploring outlicensing opportunities for LPM-Leuprolide and BioDefense      programs in the United States and inEurope. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      have engaged investment bankers to assist in exploring merger and      acquisition opportunities. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

|                                                | 2008                                                                            | 2007                                                                                                                 |
|-----------------------------------------------------|---------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Program      - Research & Development Expenses  |                                                                            |                                                                                                                 |
| orBec®                                         | $          884,341            | $     1,999,562                                                                             |
| RiVax™                                        | 249,318                                                                         | 317,390                                                                                                              |
| BT-VACC™                                      | 154,795                                                                         | 256,914                                                                                                              |
| Oraprine™                                     | 4,000                                                                           | 5,100                                                                                                                |
| LPMTM-Leuprolide                                    | 111,387                                                                         | 32,254                                                                                                               |
|   Research      & Development Expense | $      1,403,841                                  | $     2,611,220                                                                             |
|                                                |                                                                            |                                                                                                                 |
| Program      - Reimbursed under Grants              |                                                                            |                                                                                                                 |
| orBec®                                         | $            10,551 | $                   - |
| RiVax™                                        | 1,266,049                                                                       | 636,979                                                                                                              |
| BT-VACC™                                      | 82,606                                                                          | 32,903                                                                                                               |
|   Reimbursed      under Grant             | $              1,359,206                | $       669,882                                                                   |
|                                                |                                                                            |                                                                                                                 |
| TOTAL                                               | $     2,863,047                                        | $    3,281,102                                                                                   |

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| Contractual      Obligation           | Year2008                       | Year2009                 | Year2010                       |
|---------------------------------------|--------------------------------|--------------------------|--------------------------------|
| Non-cancelable      obligation (1)(2) | $    7,000 | $        4,500 | $         4,500 |
| TOTALS                                | $        7,000       | $       4,500       | $   4,500       |

| (1)   | On      October 1, 2008, we signed a month to month lease to occupy office space      in Ewing, New Jersey. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (2)   | On      April 24, 2008, we signed a three year lease for a  copier. |
|-----------------|---------------------------------------------------------------------|

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ITEM 3-_

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|   | 31.1 | Certification      of Chief Executive Officer pursuant to Exchange Act rule 13(a)-14(a)      (under Section 302 of the Sarbanes-Oxley Act of 2002).  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification      of Principal Financial Officer pursuant to Exchange Act rule      13(a)-14(a) (under Section 302 of the Sarbanes-Oxley Act of      2002).  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification      of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002.                       |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|
|   | 32.2 | Certification      of Principal Financial Officer pursuant to Section 906  of the      Sarbanes-Oxley Act of 2002.   |

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EXHIBITNO.     

| 31.1 | Certification      of Chief Executive Officer pursuant to Exchange Act rule 13(a)-14(a)      (under Section 302 of the Sarbanes-Oxley Act of  2002). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification      of Principal Financial Officer pursuant to Exchange Act rule 13(a)-14(a)      (under Section 302 of the Sarbanes-Oxley Act of  2002). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification      of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002. |
|------|---------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification      of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------|

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