U.S. SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.  20549
                                Form 10-QSB


(Mark One)

[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934
          For the quarterly period ended     December 31, 1998  

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
        EXCHANGE ACT
          For the transition period from               to             .


                    Commission file number    33-93132  

                        La Jolla Diagnostics, Inc.
    (Exact name of small business registrant as specified in its charter)

                   California                        94-2901715
          (State or other jurisdiction of        (I.R.S. Employer
           incorporation or organization)         Identification No.)

            7777 Fay Avenue, Suite 160, La Jolla, California  92037
                   (Address of principal executive offices)

                               (619) 454-6790
                       (Registrant's telephone number)


     (Former name, former address and former fiscal year, if changed 
                              since last report)


Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 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

As of February 16, 1999, La Jolla Diagnostics, Inc. had 19,876,539 shares 
outstanding of the registrant's common stock, no par value.

<Page 1>


                  LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
                                 FORM 10-QSB
                        QUARTER ENDED DECEMBER 31, 1998


INDEX

PART I     FINANCIAL INFORMATION                                         PAGE

Item 1     Financial Statements (unaudited):

     Condensed Consolidated Balance Sheets as of December 31, 1998
     (unaudited) and June 30, 1998                                         3

     Condensed Consolidated Statements of Operations for the Six
     Months Ended December 31, 1998 and 1997 (unaudited)                   4

     Condensed Consolidated Statements of Operations for the Three
     Months Ended December 31, 1998 and 1997 (unaudited)                   5

     Condensed Consolidated Statements of Cash Flows for the Three
     Months Ended December 31, 1998 and 1997 (unaudited)                   6

     Notes to Condensed Consolidated Financial Statements (unaudited)    7 - 8

Item 2     Management's Discussion and Analysis of Financial
           Condition and Results of Operations                           9 - 14

PART II    OTHER INFORMATION

Item 1     Legal Proceedings - None

Item 2     Changes in Securities - None

Item 3     Defaults Upon Senior Securities - None

Item 4     Submission of Matters to a Vote of Security Holders -
           None

Item 5     Other Information - None       

Item 6     Exhibits and Reports on Form 8-K - Exhibit 17.2                15

SIGNATURES                                                                16

<Page 2>



                  LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
                         PART I - FINANCIAL INFORMATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                   AS OF DECEMBER 31, 1998 AND JUNE 30, 1998
                          (A Development Stage Company)


                                       December 31, 1998        June  30, 1998
                                          (Unaudited) 
                                         -------------          -------------
ASSETS

CURRENT ASSETS

Cash                                     $      21,727          $       1,307
Accounts receivable                             23,538                  3,735
Advances to officer, net                         5,380                  6,626
Inventory - Healthcare products                 15,026                 14,730
Inventory - Diagnostic products                492,703                   -
Prepaid expenses                                25,987                 22,437
                                         -------------          -------------
TOTAL CURRENT ASSETS                           584,361                 48,835

INVENTORY, Antisera products                 2,466,911              2,466,911
PROPERTY & EQUIPMENT, net                       84,682                 30,970
NOTE RECEIVABLE                                493,100                493,100
OTHER ASSETS                                   954,558                  2,781
                                         -------------          -------------
                                         $   4,583,612          $   3,042,597

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable                         $     280,150          $     335,959
Accrued expenses                                64,732                 24,658
Lease obligations, current portion               1,209                  1,119
Loans payable                                  172,582                114,591
                                         -------------          -------------
TOTAL CURRENT LIABILITIES                      518,673                476,990

LEASE OBLIGATIONS, non current portion           1,408                  2,042

MINORITY INTEREST                              723,872                555,069

STOCKHOLDERS' EQUITY

Common stock, no par value (50,000,000 
  shares authorized; 19,856,539 and 
  12,068,986 shares issued and outstanding,
  respectively)                             13,977,545             12,403,499
Additional paid-in capital                     831,247                831,247
Preferred stock, no par (5,000,000 shares 
  authorized, none issued)                        -                      -   
Retained deficit                           (11,469,133)           (11,226,250)
                                         -------------          -------------
TOTAL STOCKHOLDERS' EQUITY                   3,339,659              2,008,496
                                         -------------          -------------
                                         $   4,583,612          $   3,042,597



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

<Page 3>



                  LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
                       PART I - FINANCIAL INFORMATION
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
                          (A Development Stage Company)



                                                  For the Six Months Ended
                                                        December 31,
                                                   1998              1997
                                              -------------     -------------
NET SALES                                      $     49,962     $      43,972

OPERATING EXPENSES
Cost of products sold                                21,166            25,953
Selling and administrative expenses                 230,931           275,876
Research and development                             20,128            35,277
Consulting services                                  39,425           114,038
Depreciation and amortization                         6,618             7,008
                                              -------------     -------------
TOTAL OPERATING EXPENSES                            318,268           457,552

LOSS FROM OPERATIONS                               (268,306)         (413,580)

OTHER INCOME (EXPENSES)
Interest expense                                    (16,076)           (9,908)
Minority interest                                    41,499            37,232
                                              -------------     -------------
TOTAL OTHER INCOME (EXPENSES)                        25,423            27,324

LOSS BEFORE INCOME TAXES                           (242,883)         (386,256)

PROVISION FOR INCOME TAXES                             -                3,200

NET LOSS                                      $    (242,883)    $    (389,456)

NET LOSS PER COMMON SHARE                     $      (0.02)     $      (0.04)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING       12,282,749         9,210,455



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

<Page 4>



                  LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
                       PART I - FINANCIAL INFORMATION
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                       (A Development Stage Company)



                                                For the Three Months Ended
                                                       December 31,
                                                  1998              1997
                                              -------------     -------------

NET SALES                                     $       6,015     $      13,299

OPERATING EXPENSES
Cost of products sold                                 9,757             4,490
Selling and administrative expenses                 136,092           171,530
Research and development                              9,959            17,350
Consulting services                                     350            90,650
Depreciation and amortization                         3,309             3,504
                                              -------------     -------------
TOTAL OPERATING EXPENSES                            159,467           287,524

LOSS FROM OPERATIONS                               (153,452)         (274,225)

OTHER INCOME (EXPENSES)
Interest expense                                     (3,813)           (3,017)
Minority interest                                    29,868            19,152
                                              -------------     -------------
TOTAL OTHER INCOME (EXPENSES)                        26,055            16,135

LOSS BEFORE INCOME TAXES                           (127,397)         (258,090)

PROVISION FOR INCOME TAXES                             -                3,200

NET LOSS                                      $    (127,397)    $    (261,290)

NET LOSS PER COMMON SHARE                     $      (0.01)     $      (0.03)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING       12,614,039         9,876,452



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

<Page 5>



                  LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
                       PART I - FINANCIAL INFORMATION
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                       (A Development Stage Company)



                                                 For the Six Months Ended
                                                       December 31,
                                                  1998              1997
                                              -------------     -------------

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                                      $    (242,883)    $    (389,456)

Adjustments to reconcile loss to net cash 
  used in operating activities
Depreciation and amortization                         6,618             7,008
Minority interest                                   168,802            56,946
Issuance of stock for services                       63,384           272,496

Changes in assets and liabilities
(Increase) decrease in inventories                   (1,000)            4,768
(Increase) decrease in accounts receivable           (7,803)              370
(Increase) decrease in other assets                  (5,735)          (19,978)
Increase (decrease) in liabilities                  (19,656)           (6,627)

NET CASH USED IN OPERATING ACTIVITIES               204,610            84,009

CASH FLOWS USED IN INVESTING ACTIVITIES

Advances (to)/from shareholder, net                   1,246            (2,807)

Capital expenditures for property and equipment        -               (2,273)

NET CASH USED FOR INVESTING ACTIVITIES                1,246            (5,080)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock                 -               39,500

Proceeds from notes payable, net                     57,991            48,300

Payments on capital lease obligations                  (544)            3,656

NET CASH PROVIDED BY FINANCING ACTIVITIES:           57,447            84,144

NET INCREASE (DECREASE) IN CASH                      20,420            (4,945)

CASH AT BEGINNING OF PERIOD                           1,307            13,275

CASH AT END OF PERIOD                         $      21,727     $       8,330



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

<Page 6>



                  LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
                       PART I - FINANCIAL INFORMATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (Development Stage Company)



A.     Summary of Significant Accounting Policies:

       Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements and 
related notes have been prepared pursuant to the rules and regulations of the 
Securities and Exchange Commission for Form 10-QSB.  Accordingly, they do not 
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements.  In the opinion of 
management, all adjustments, consisting of a normal recurring nature considered 
necessary for a fair presentation, have been included.  It is suggested that 
these financial statements are read in conjunction with the financial 
statements and notes thereto included in the Company's annual report on
Form 10-KSB for the year ended June 30, 1998.  The results of operations for 
the six month period ended December 31, 1998 are not necessarily indicative of 
the operating results for the year ended June 30, 1999.  For further 
information, refer to the consolidated financial statements and notes thereto 
included in the Company's Annual Report on Form 10-KSB for the fiscal year
June 30, 1998.



B.     Inventories:

       Inventories as of December 31, 1998 and  June 30, 1998 are comprised of
       the following:


                                          December 31, 1998,     June 30,  1998
                                              unaudited
                                            -------------        -------------

Antisera at original value                  $   4,150,579        $   4,150,579

Less reserve                                   (1,683,668)          (1,683,668)

Antisera products, net                          2,466,911            2,466,911

Healthcare products                                15,027               14,730

Diagnostic products                               492,703                 -   
                                            -------------        -------------
                                            $   2,974,641        $   2,481,641


C.     Net Loss Per Common Share:

Net loss per common share is computed by dividing the net loss by the weighted 
average number of common shares outstanding during the period. For the six 
month periods ended December 31, 1998 and 1997, the Company's common stock 
equivalents were antidilutive and, therefore, were not included in the 
computation of net loss per common share.

In February 1997, the FASB issued Statement of Financial Accounting Standards 
No. 128, "Earnings per Share," (SFAS 128) which is required to be adopted on 
December 31, 1998.  The Company has changed to this method and is currently 
using this method to compute earnings per share.  Under the new requirements 
for calculating primary earnings per share, the dilutive effect of stock 
options will be excluded.  The impact of SFAS No. 128 has not resulted in any 
change to primary earnings per share for the six month periods ended December 
31, 1998 and 1997.  The impact of SFAS No. 128 on the calculation of fully 
diluted earnings per share for these periods is expected not to be material.


D.     Related Party Transactions:

During the six months ended December 31, 1998 and 1997, various shareholders 
and directors of the Company provided consulting and research and development 
activities related to the business activities and products of the company.

In connection with these services, during the six months ended December 31, 
1998 and 1997, the Company recognized research and development of $20,128 and 
$35,277 and consulting expenses of $39,425 and $114,038, respectively.


E.     Supplemental Cash Flow Information:

       Interest and Income Taxes Paid

Cash paid for interest and income taxes for the six months ended December 31, 
1998 and 1997 (unaudited) were as follows:

                          December 31, 1998            December 31, 1997
                          -----------------            -----------------
       Interest              $      315                   $      430
       Income taxes          $     -                      $     - 


F.     Use of Estimates:

The preparation of the financial statements in conformity with generally 
accepted accounting principles requires management to make estimated and 
assumptions that affect the amounts reported in the financial statements and 
accompanying notes.  Actual results could differ from those estimates.

<Page 7>



Item 2.     Management's Discussion and Analysis of Financial
            Condition and Results of Operations.

This Quarterly Report on Form 10-QSB contains forward-looking statements that 
involve risks and uncertainties.  The Company's actual results may differ 
significantly from the results discussed in the forward-looking statements.


Forward-Looking Information - General


This report contains a number of forward-looking statements which reflect the 
Company's current views with respect to future events and financial 
performance.  These forward-looking statements are subject to certain risks and 
uncertainties that could cause actual results to differ materially from 
historical results or those anticipated.  In this report, the words 
"anticipates", "believes", "expects", "intends", "plans", "may", "future", and 
similar expressions identify forward-looking statements.  Readers are cautioned 
to consider the risk factors described above and in the Company's Annual Report 
on Form 10-KSB for the year ended June 30, 1998, and not to place undue
reliance on the forward-looking statements contained herein, which speak only 
as of the date hereof.  The Company undertakes no obligation to publicly revise 
these forward-looking statements, to reflect events or circumstances that may 
arise after the date hereof.

Additionally, these statements are based on certain assumptions that may prove 
to be erroneous and are subject to certain risks including, but not limited to, 
the Company's ability to introduce new products, the concentration of the 
Company's current products, technological change and increased competition in 
the industry, the Company's ability to manage its growth, its limited 
protection of technology and trademarks, the Company's dependence on limited 
suppliers, representatives, distributors, and its dependence on certain key 
personnel within the Company.  Accordingly, actual results may differ, possibly 
materially, from the predictions contained herein.


Liquidity and Capital Resources


The Company, in the past, has financed operations primarily through the private 
placement of common stock, issuance of convertible debt, warrant conversions, 
issuing warrants to acquire stock in exchange for services rendered and to a 
lesser degree from product sales.  Based on its current operating plans, cash 
generated from projected sales may not generate the necessary capital to fully 
support development of the Company's products through June of 1999 and the 
Company will continue to employ use of equity financing to allow the Company to 
continue its operations.  The Company anticipates that the proceeds from 
conventional private placements of stock, issuance of convertible debt and 
exercise of warrants and options will continue to enhance working capital.

On September 16, 1998, the Company, through a newly formed subsidiary, 
DiagnosTech, Inc., purchased the assets and technologies of AmTech Scientific, 
Inc. (ATS), a privately held diagnostic company.  These assets include a 
proprietary, patent pending diagnostic test for active tuberculosis (TB).  The 
accuracy and efficacy of the TB test has been confirmed in three separate 
clinical trials, and is currently approved for sale and distribution in several 
countries with approvals pending in others.

<Page 8>



Clinical trials on the test have been successfully completed at Beijing 
Children's Hospital, and the formal registration application for the product is 
being submitted to the Chinese Ministry of Health this coming March.  In 
addition, a Japanese pharmaceutical company, having successfully completed 
internal testing, is in the process of registering the product with the 
Japanese Ministry of Health.

Other assets acquired by La Jolla Diagnostics include a rapid diagnostic test 
for HIV I and II, H. Pilori, and Hepatitis B.  Additionally, DiagnosTech added 
the management team of ATS, Stephen C. Roberts, M.D., and G. Bruce Whitfield, 
J.D.

The rapid diagnostic HIV test is particularly suited for the environmental 
conditions found in Africa, because it is easy to use, and maintains its 
sensitivity even when subjected to extreme changes in temperature and humidity.
A large African marketing firm has made a sample purchase of the product and 
plans to place a bulk order during the first quarter of 1999 for wide 
distribution in a manner which will make it readily accessible to major 
populations.

DiagnosTech is in the midst of a 504 Reg. D stock offering for $1,000,000.  
Approximately one million (1,000,000) shares are being offered at one dollar 
per share on a best efforts basis.  As of February 12, 1999, $275,000 of new 
capital had been raised.  The proceeds are being used to increase manufacturing 
capability, expand marketing and sales, fund additional research and 
development, and enhance working capital.


Results of Operations.


Generally.  The Company believes that with its business objectives in place and 
proper funding, the Company should be able to meet its future expansion plans.  
Management has implemented a variety of procedures and marketing efforts which 
may enhance revenues and reduce costs for the Company.  The Company is 
beginning the on-line sales and marketing of its nutraceuticals and other 
healthcare products.  In addition, the Company is currently in negotiations to 
obtain the exclusive Internet marketing rights for additional unique products 
and expects to add these to its menu of products offered shortly.


                                                 For the Six Months Ended
                                                       December 31,
                                                  1998              1997
                                              -------------     -------------

        Revenues                              $      49,962     $      43,972
        Cost of products sold                       (21,166)          (25,953)
        Other operating expenses                   (290,484)         (432,199)
        Loss from operations                       (268,306)         (413,580)
        Net loss                              $    (242,883)    $    (389,456)

<Page 9>



The Company experienced a net loss of $242,883 for the six month period ending 
December 31, 1998, compared with a net loss of $389,456 for the same period 
ending December 31, 1997.  On a consolidated basis, the Company had sales 
totaling $49,962 for the six months ended December 31, 1998, compared with 
$43,972 in sales for the Company for the same period ending December 31, 1997.  
Cost of product sales and operating expenses for the six months ended December 
31, 1998 were $311,650 compared to $458,152 for the six months ended December 
31, 1997.  The decrease in costs of products sold and operating expenses of 
$146,502 is a direct result of having less reliance on outside consultants.


Financial Resources


At December 31, 1998, the Company had current assets of $584,361 which includes 
inventory of $15,026 healthcare products, $492,703 diagnostic products and 
$25,987 in prepaid expenses.

The $2,466,911 in antisera inventory was valued by several independent 
unrelated parties (brokers) as of June 1994 to be in excess of $4.1 million on 
a bulk sale basis.  The valuation was substantiated by an independent research 
scientist as of June 1995 and 1996.  During June 1997, the carrying value of 
the antisera was marked down by approximately 40% to facilitate the close out 
sale of the product by the Company. 

The antisera inventory consists of antibody reagents used in clinical 
diagnostic laboratories that analyze serum for immunoglobulin profiles.  The 
antisera is kept frozen and is believed to have a shelf life in excess of 
twenty years.


DiagnosTech, Inc.


On September 16, 1998, the Company acquired the assets of AmTech Scientific, 
Inc. (ATS), a diagnostic company, by establishing a subsidiary, DiagnosTech, 
Inc.  DiagnosTech, Inc. is capitalized by 6,000,000 shares of La Jolla 
Diagnostics, Inc.'s common stock, the Company's antisera inventory and other 
diagnostic technologies.  Through the Company's subsidiary, DiagnosTech, Inc., 
the company acquired the stock of ATS in exchange for 6,000,000 shares of the 
Company's stock and a certain number of DiagnosTech, Inc. shares.  This 
transaction was made pursuant to the acquisition of the technology.  The 
acquisition is to be accounted for as a pooling-of-interests.


Research and Development


The Company conducts research and development in four areas. The Company 
maintains an active research and development program in the areas of ophthalmic 
products, nasal sprays, nutraceuticals, and products for the symptomatic relief 
of allergies, and immuno/molecular diagnostics using a network of consultants 
in addition to its internal staff and facilities. 

The research and development activities being performed by the Company are 
designed to discover and screen potential consumer health care and diagnostic 
products.  Activities underway at the present time include the following for 
the Healthcare Products and diagnostic products through DiagnosTech, the 
Company's subsidiary.

<Page 10>



Heathcare Products


The Healthcare Products Division is largely based on products using proprietary 
processes.  Products being marketed or under development include:


Feverfew Nasal MistTM (currently being marketed)


Feverfew Nasal MistTM is being marketed by La Jolla Diagnostics, Inc. as a 
moisturizing nasal spray.  It uses the same clustered water borate buffering 
system as the company's enthusiastically received  Living Water Eye LotionTM.  
Feverfew Nasal MistTM is designed to avoid interference with natural functions, 
as it moistens, soothes and clears the nasal passages.

The Company intends to investigate the possibility that its patent pending 
moisturizing nasal spray, Feverfew Nasal Mist, may also be effective in aiding 
in the alleviation of the symptoms of migraine, menstrual and hangover 
headaches.  If the results of the investigation are promising, (and there can 
be no assurance that they will be) the Company intends to pursue the regulatory 
processes necessary to add an indication to its labeling for the product's use 
with migraines.

The Company has applied for a patent on the product, which was introduced to 
the market during April 1997 and thus far is being extremely well-received.  
Leading alternative medicine doctors have endorsed the product. 


MigraSprayTM (currently being marketed)


MigraSprayTM , a saline solution containing the herb feverfew, is designed to 
be sprayed under the tongue.  This sublingual method of administration is 
believed to promote excellent absorption.


Feverfew is the common name for Tanacetum parthenium, a flowering plant related 
to the chrysanthemum, whose leaves have been used for centuries in herbal 
remedies for the treatment of various conditions, including migraine headaches.


MigraSprayTM can be promoted for the treatment of migraine headaches because it 
is classified as a nutraceutical and therefore does not have the compliance 
issues as determined by the FDA.

<Page 11>



Other Nasal Sprays


The Company is investigating other nasal spray possibilities, including a 
product for the symptomatic relief of allergies.


Living Water Eye LotionTM (currently being marketed)


Living Water Eye LotionTM is an eye wash or irrigating solution, used in 
cleansing the eye to help relieve irritation, burning, stinging, and itching 
due to loose foreign material, air pollutants (smog or pollen), or chlorinated 
water.  The solution is a specially clustered water borate buffered, sterile 
isotonic aqueous solution containing sodium chloride.  It is preserved with a 
mild preservative, 0.1% sorbic acid and disodium EDTA (ingredients commonly 
used in solutions for sensitive eyes). 

Living Water Eye LotionTM is specially formulated to enhance eye comfort by 
irrigating, flushing and cleansing without interfering with natural functions.  
In contrast with "eye lubricants," "Artificial Tears," and "Lens Lubricants," 
which contain ingredients which increase fluid viscosity in an attempt to 
relieve eye dryness or re-wet contact lenses; "eye redness relievers," which 
contain vasoconstrictors which can cause eye problems when used too frequently; 
and eye drops, which contain antihistamines to treat allergy symptoms.

The product has been marketed for more than a year and has generally exceeded 
the expectations of customers using the product. 


OptoPet Eye WashTM (currently being marketed)


OptoPet Eye WashTM is for cleansing the eyes of dogs and cats and removing 
mucous which causes staining beneath the eyes (a major problem in certain 
breeds).


The product has been introduced to pet stores and veterinarians through a 
national public relations campaign in pet magazines and the general press.  The 
initial response to this publicity has been encouraging.


Other Ophthalmic Products


The Company is developing additional eye solutions using the ClusterWater 
technology, including a product for the symptomatic relief of allergies and the 
treatment of glaucoma. 


Drug Delivery Licensing


The Company is in contact with several major pharmaceutical companies in 
regards to the licensing of the ClusterWater technology as a more efficient 
drug delivery system for ophthalmic, nasal, injectables, parenterals and oral 
medications.  Results of recent meetings have been encouraging.

<Page 12>



DiagnosTech, Inc. 


DiagnosTech, Inc., is developing and marketing clinical diagnostic products 
using immunologic and molecular biologic technologies.  The product line now 
consists of eight self-contained, rapid, point-of-care diagnostics:

     A rapid test for active M. tuberculosis (TB) disease.
     A rapid serum/plasma test for HIV I and II (AIDS) infection.
     A rapid whole blood test for HIV I and II (AIDS) infection.
     A rapid test for H. pylori infection (the causative agent in
          over 90% of ulcers).
     A rapid test for hepatitis B (hepatitis B surface antigen: 
          HBsAg).
     A rapid pregnancy test.
     A rapid test for Trypanasoa cruzi infection (Chagas disease:  a
          common and often fatal parasitic infection endemic to many parts
          of South and Central America).
     A rapid test for Toxoplasma gondii infection (Toxoplasmosis:  a
          common opportunistic infection among AIDS patients).

The Company believes each of these diagnostic products to be uniquely 
advantageous, only secondary to certain proprietary technology, know-how, and 
formulations employed by the Company, and that the TB test in particular has no 
equivalent in the marketplace.  Each test requires only a very small sample of 
patient blood, serum, urine, or saliva, as the case may be.  Each test gives an 
accurate result in 1 to 5 minutes.  These tests can easily be performed by any 
healthcare worker, semi-skilled technician, or by the patients themselves.  
They are extremely rugged, require no refrigeration, and have a shelf life of 
12 to 18 months.  No special equipment is required to perform any test.  Each 
test addresses a large and growing market both domestically and 
internationally. 

Each of the diagnostic tests manufactured and marketed represent state-of-the-
art technology in that they are rapid, accurate, easy-to-use, and inexpensive.  
These characteristics make the products ideal for both the U.S. and overseas 
markets.  Changes in the economics of medicine increasingly favor products that 
can be employed economically and effectively at the point-of-care.  Outside of 
the industrialized world, citizens of emerging economies seek access to 
healthcare as a high priority.  Tests that address significant medical needs, 
are available at a modest price, and require no special instrumentation, are in 
high demand.  Sale efforts utilizing 75 international distributors over the 
past few months are beginning to show results.  DiagnosTech expects to receive 
substantial orders of the products in the near future. 


Antisera 


The Company has transferred its antisera inventory to DiagnosTech.  It consists 
of high quality, highly purified antibodies which are needed for basic research 
and clinical immunological assays.  The primary users of these antisera 
products include universities and other research facilities, clinical 
diagnostic laboratories, hospitals and clinics, where certain antibody reagents 
are used in large volumes.  The Company through its subsidiary, DiagnosTech is 
currently in a position to market the antisera inventory aggressively.

<Page 13>



Myocardial Infarction Predictor


The Company has filed for patent application on a novel method of identifying 
risk factors for myocardial infarction among a certain subset of mature people.
The company intends to market an inexpensive test which would be used for 
screening purposes.  Those with this risk factor are several times more likely 
to experience morbidity or mortality from a condition which may be ameliorated 
by changes in living conditions and life style.  This technology was turned 
over to DiagnosTech for development of the final diagnostic kit and for 
marketing. 

<Page 14>



EXHIBIT 17.2



OTHER


The Registrant has announced that a letter of resignation from the board of 
directors has been received from Robert N. Hamburger.


<Page 15>



SIGNATURE



Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 
1934, the Registrant has duly caused this report to be signed on its behalf by 
the undersigned, thereunto duly authorized.


Date: February 24, 1999          LA JOLLA DIAGNOSTICS, INC.

                                 By:    /s/ Don Brucker
                                     ----------------------
                                         Don Brucker

                                 President, Chief Executive Officer
                                    and Chief Financial Officer


<Page 16>