----

----

----

----

| 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) |   |                                         |

----

| Title      of Each Class of Securities to be Registered  |   |   | Name of Each      Exchange on Which Registered      |
|--------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------|
|  Common      Stock, par value $.001 per share                 |   |   |  OTCBB                                                                  |

----

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

----

Table of Contents

| Item    | Description                                                                                                                                                                                                                                         | Page   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                                                                                                                                                                |   |
| Part I  | FINANCIAL      INFORMATION                                                                                                                                                                                                                          |   |
| 1.      | Consolidated Financial      Statements.                                   | 2      |
| 2.      | Mangement's Discussion and Analysis of Finanical Condition and      Results of Operations.                                                                                                                                                | 13     |
| 3.      | Quantitative and Qualitative Disclosure About Market      Risk.                                                                                                                                                            | 28     |
| 4.      | Controls and Procedures.                                                                                                                                                                                                                            | 28     |
|    |                                                                                                                                                                                                                                                |   |
| Part II | OTHER      INFORMATION                                                                                                                                                                                                                              |   |
| 2.      | Unregistered Sales of Equity Securities and Use of      Proceeds.                                                                                                                                                                                   | 29     |
| 5.      | Exhibits.                                                                                                                                                                                                                                           | 30     |
|    |                                                                                                                                                                                                                                                |   |

----

PART I.

DOR

|                                                                                                                                                            |   |   | March      31, 2008                       |    |   |   |   |   | December      31, 2007 |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------|--------|--------|------------------------|---------|
|                                                                                                                                                            |   |   |           (Unuadited) |    |   |   |   |   |                   |    |
| AssetsCurrent      assets:                                                                                                                                      |   |   |                                      |    |   |   |   |   |                   |    |
|         Cash                                                                                                            |   | $      | 1,880,860                                 |    |   |   |   | $      | 2,220,128              |    |
|         Grants      receivable                                                                                          |   |   | 65,623                                    |    |   |   |   |   | 97,845                 |    |
|         Prepaid      expenses                                                                                           |   |   |  79,131                              |    |   |   |   |   | 119,178                |    |
| Total      current assets                                                                                                                                       |   |   | 2,025,614                                 |    |   |   |   |   | 2,437,151              |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Office      and laboratory equipment, net                                                                                                                       |   |   | 25,187                                    |    |   |   |   |   | 25,941                 |    |
| Intangible      assets, net                                                                                                                                     |   |   | 1,331,089                                 |    |   |   |   |   | 1,320,787              |    |
| Total      assets                                                                                                                                               |   | $      | 3,381,890                                 |    |   |   |   | $      | 3,783,879              |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Liabilities and shareholders’      equity                                                                                                                 |   |   |                                      |    |   |   |   |   |                   |    |
| Current      liabilities:                                                                                                                                       |   |   |                                      |    |   |   |   |   |                   |    |
|         Accounts      payable                                                                                           |   | $      | 985,567                                   |    |   |   |   | $      | 847,610                |    |
|         Accrued      compensation                                                                                       |   |   | 117,215                                   |    |   |   |   |   | 345,903                |    |
|  Total      current liabilities                                                                                                                            |   |   | 1,102,782                                 |    |   |   |   |   | 1,193,513              |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Shareholders’      equity:                                                                                                                                |   |   |                                      |    |   |   |   |   |                   |    |
|         Common      stock, $.001 par value. Authorized 250,000,000                                                      |   |   |                                      |    |   |   |   |   |                   |    |
|              shares; 100,299,378      and 94,996,547, respectively issued and outstanding |   |   | 100,299                                   |    |   |   |   |   |  94,996           |    |
|         Additional      paid-in capital                                                                                 |   |   | 102,430,700                               |    |   |   |   |   | 101,391,090            |    |
|         Accumulated      deficit                                                                                        |   |   | (      100,251,891                        |  ) |   |   |   |   | (      98,895,720      | )  |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Total      shareholders’ equity                                                                                                                           |   |   | 2,279,108                                 |    |   |   |   |   |  2,590,366        |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |
| Total      liabilities and shareholders’ equity                                                                                                           |   | $      | 3,381,890                                 |    |   |   |   |   |  3,783,879        |    |
|                                                                                                                                                            |   |   |                                      |    |   |   |   |   |                   |    |

----

Table of Contents

DOR

|                                                                               |   |    | 2008         |    |    | 2007               |          |
|------------------------------------------------------------------------------------|--------|---------|------------------------------------------------------|---------|---------|--------------------|--------------------|
|                                                                               |   |    |                                                 |    |    |               |               |
| Revenues                                                                           |   | $       |        677,640                                  |    | $       | 235,171            |               |
| Cost      of revenues                                                              |   |    | (      529,179                                       | )       |    | (      78,071      | )                  |
|            Gross profit                                   |   |    | 148,461                                              |    |    | 157,100            |               |
|                                                                               |   |    |                                                 |    |    |               |               |
| Operating      expenses:                                                           |   |    |                                                 |    |    |               |               |
|        Research and development                                               |   |    |        600,001                                  |    |    | 1,042,758          |               |
|        General and administrative                                             |   |    | 848,111                                              |    |    | 1,208,458          |               |
|        Stock based compensation research and development                 |   |    |        39,583                                   |    |    |        56,334 |               |
|        Stock based compensation general and administrative               |   |    |  36,793                                         |    |    |  75,584       |               |
|            Total operating expenses                       |   |    | 1,524,488                                            |    |    | 2,383,134          |               |
|                                                                               |   |    |                                                 |    |    |               |               |
| Loss      from operations                                                          |   |    | (      1,376,027                                     | )       |    | (      2,226,034   | )                  |
|                                                                               |   |    |                                                 |    |    |               |               |
| Other      income (expense):                                                       |   |    |                                                 |    |    |               |               |
|        Interest income                                                        |   |    |  20,036                                         |    |    | 62,247             |               |
|        Interest (expense)                                                     |   |    |  (      180                                     | )  |    | (      413         | )             |
|            Total other income (expense)                   |   |    | 19,856                                               |    |    | 61,834             |               |
|                                                                               |   |    |                                                 |    |    |               |               |
| Net      loss                                                                      |   |  $ | (      1,356,171                                     | )       |  $ | (      2,164,200   | )                  |
|                                                                               |   |    |                                                 |    |    |               |               |
| BasicnBasic      and diluted net loss per share                               |   | $       | (      0.01                                          | )       | $       | (      0.03        | )                  |
|                                                                               |   |    |                                                 |    |    |               |               |
| Basic  Basic      and diluted weighted average common shares outstanding |   |    | 97,761,457                                           |    |    | 82,529,085         |               |

----

Table of Contents

DOR

|                                                                                   |   | 2008   |             | 2007    |    |
|----------------------------------------------------------------------------------------|--------|--------|------------------|---------|---------|
| Operating      activities                                                              |   |   |             |    |    |   |   |
|         Net loss                                                             |   | $      | (      1,356,171 | )       | $       | (      2,164,200 | ) |
|                                                                                   |   |   |             |    |    |   |   |
| Adjustments      to reconcile net loss to net cash used by operating      activities:  |   |   |             |    |    |   |   |
|          Amortization and depreciation                                  |   |   | 34,084           |    |    |  24,518 |   |
|          Non-cash stock compensation                                    |   |   | 386,314          |    |    | 767,661 |   |
|                                                                                   |   |   |             |    |    |   |   |
| Change      in operating assets and liabilities:                                       |   |   |             |    |    |   |   |
|          Grants receivable                                              |   |   | 32,222           |    |    | (      21,359 | ) |
|          Prepaid expenses                                               |   |   |  40,047     |    |    | (      11,984 | ) |
|          Accounts payable                                               |   |   | 137,456          |    |    | (      700,686 | ) |
|          Proceeds sale of equipment                                     |   |   | 500              |    |    | - |   |
|          Accrued compensation                                           |   |   | (228,688         | )  |    | (      275,794 | ) |
| Total      adjustments                                                                 |   |   | 401,935          |    |    | (      217,644 | ) |
|                                                                                   |   |   |             |    |    |   |   |
|          Net cash used by operating activities                          |   |   | (      954,236   | )       |    | (      2,381,844 | ) |
|                                                                                   |   |   |             |    |    |   |   |
| Investing      activities:                                                             |   |   |             |    |    |   |   |
|  Acuisition      of intangible assets                                             |   |   | (      41,481    | )       |    | (      114,361 | ) |
|  Purchase      of office equipment                                                |   |   | (      2,151     | )       |    | (      2,405 | ) |
|          Net cash used by investing activities                          |   |   | (      42,632    | )       |    | (      116,766 | ) |
|                                                                                   |   |   |             |    |    |   |   |
| Financing      activities:                                                             |   |   |             |    |    |   |   |
|  Net      proceeds from sale of common stock                                      |   |   | 658,600          |    |    | 6,230,050 |   |
|  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 |   |
|          Net cash provided by financing activities                      |   |   | 658,600          |    |    | 9,582,675 |   |
|                                                                                   |   |   |             |    |    |   |   |
| Net      increase (decrease) in cash and cash equivalents                              |   |   | (      339,268   | )       |    | 7,084,065 |   |
|          Cash and cash equivalents at beginning of period               |   |   | 2,220,128        |    |    | 119,636 |   |
|          Cash and cash equivalents at end of period                     |   | $      | 1,880,860        |    | $       | 7,203,701 |   |
|                                                                                   |   |   |             |    |    |   |   |
| Supplemental      disclosure of cash flow:                                             |   |   |             |    |    |   |   |
|          Cash paid for interest                                         |   | $      | 180              |    | $       | 413 |   |
| Non-cash      transactions:                                                            |   |   |             |    |    |   |   |
|     Non-cash stock payment to an institutional      investor  |   | $      | 270,000          |    | $  | - |   |

----

Table of Contents

DOR 

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| · | The      Company secured a new $8,000,000 equity line from Fusion Capital and the      Company expects to utilize it from time to time when it believes that      market conditions are suitable.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | The      Company will manage its expenditures very closely and proceed with      Clinical programs with the use of the equity facility.                                                            |

| · | The      Company plans to continue seeking grant funds and responding to requests      for proposals from governmental sources.                                                                                                                                                                                                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | The      Company will utilize Named Patient Sales (Compassionate Use programs)      wherever possible in countries outside the United States to generate      revenues from orBec®.       The Company already has letters of intent for Named Patient programs in      place in South Korea, Australia, New Zealand and South Africa and expects      to receive modest revenues from these programs in the second half of      2008.  |
| · | The      Company is exploring outlicensing opportunities for orBec®,      and for its LPM-Leuprolide and BioDefense programs both in the US and      Europe.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | The      Company has engaged investment bankers to assist in exploring merger      and acquisition opportunities.                                             |

----

Table of Contents

|                         | Weighted      Average Amortization period (years) |   |   Cost                 |   |  AccumulatedAmortization |   |   Net      Book Value  |
|------------------------------|---------------------------------------------------|--------|----------------------------------|--------|-------------------------------|--------|----------------------------------|
| March      31, 2008          |                                              |   |                             |   |                          |   |                             |
| Licenses                     | 12.5                                              |   | $         462,234 |   | $   122,472    |   | $         339,762 |
| Patents                      | 9.5                                               |   |    1,674,971      |   |    683,644     |   |    991,327        |
| Total                        | 10.1                                              |   | $ 2,137,205                      |   | $   806,116         |   | $ 1,331,089                      |
|                         |                                              |   |                             |   |                          |   |                             |
|  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                       |

| Year |   | Amortization      Amount              |
|------|--------|---------------------------------------|
| 2008 |   | $   130,000            |
| 2009 |   |      132,000 |
| 2010 |   |      135,000 |
| 2011 |   |      140,000 |
| 2012 |   |      145,000 |

----

Table of Contents

----

Table of Contents

|                                       |   | March      31, |                            |
|--------------------------------------------|--------|----------------|---------------------------------|
|                                       |   | 2008           |                            | 2007 |   |
| Net      Revenues                          |   |           |                            |   |   |   |   |
| BioDefense                                 |   | $              | 677,640                         |   | $ | 235,171 |   |
|        Total                          |   | $              | 677,640                         |   | $ | 235,171 |   |
|                                       |   |           |                            |   |   |   |   |
| Loss      from Operations                  |   |           |                            |   |   |   |   |
| BioDefense                                 |   | $              | (    96,390 | ) | $ | 33,678 |   |
| BioTherapeutics                            |   |           | (      406,763                  | ) |   | (      698,008 | ) |
| Corporate                                  |   |           | (      872,874                  | ) |   | (      1,561,704 | ) |
|        Total                          |   | $              | (      1,376,027                | ) | $ | (      2,226,034 | ) |
|                                       |   |           |                            |   |   |   |   |
| Identifiable      Assets                   |   |           |                            |   |   |   |   |
| BioDefense                                 |   | $              | 864,161                         |   | $ | 908,726 |   |
| BioTherapeutics                            |   |           | 562,551                         |   |   | 398,866 |   |
| Corporate                                  |   |           | 1,955,178                       |   |   | 7,309,034 |   |
|        Total                          |   | $              | 3,381,890                       |   | $ | 8,616,626 |   |
|                                       |   |           |                            |   |   |   |   |
| Amortization      and Depreciation Expense |   |           |                            |   |   |   |   |
| BioDefense                                 |   | $              | 19,635                          |   | $ | 18,804 |   |
| BioTherapeutics                            |   |           | 12,997                          |   |   | 4,105 |   |
| Corporate                                  |   |           | 1,452                           |   |   | 1,609 |   |
|        Total                          |   | $              | 34,084                          |   | $ | 24,518 |   |
|                                       |   |           |                            |   |   |   |   |
| Interest      Income                  |   |           |                            |   |   |   |   |
| Corporate                             |   |  $        | 20,036                          |   |  $ | 62,247 |   |
|         Total                    |   |  $        | 20,036                          |   |  $ | 62,247 |   |
|                                       |   |           |                            |   |   |   |   |
| Stock      Option Compensation             |   |           |                            |   |   |   |   |
| BioDefense                                 |   |  $        | 19,517                          |   |  $ | 14,680 |   |
| BioTherapeutic                        |   |           | 20,066                          |   |   |  41,654 |   |
| Corporate                             |   |           | 36,793                          |   |   |  75,584 |   |
|         Total               |   |  $        | 76,376                          |   |  $ | 131,918 |   |
|                                       |   |           |                            |   |   |   |   |

----

Table of Contents

ITEM

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

 BARDA managesProject BioShield to procure countermeasures and vaccines and is the agency nowresponsible for advanced development of medical countermeasures for chemical,biological, radiological, and nuclear agents. The purpose of BARDA is to takeover where NIH has left off in the transition from research and development toadvanced development and clinical testing. In addition, BARDA is responsible forestablishing priorities for civilian biodefense. BARDA has placed a priority onstability and a rapid onset of immunity in no more than two vaccine doses as thestability and efficacy targets for vaccines under development for both categoryA and category B vaccines. BARDA has recently issued an RFP, entitled“Biodefense Vaccine Enhancement,” to which we have submitted an application forRiVaxTM. Weexpect to continue to respond to RFPs that may arise within BARDA and otherbranches of the government.

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                | 2008                                                                 |   | 2007                                                          |
|-----------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------|
| Program      - Research & Development Expenses  |                                                                 |   |                                                          |
| orBec®                                         | $          351,675 |   | $        730,144      |
| RiVax™                                        | 120,287                                                              |   | 158,323                                                       |
| BT-VACC™                                      | 60,261                                                               |   | 141,491                                                       |
| Oraprine™                                     | 3,000                                                                |   | 1,700                                                         |
| LPMTM-Leuprolide                                    | 64,778                                                               |   | 11,100                                                        |
|   Research      & Development Expense | $         600,001       |   | $     1,042,758                      |
|                                                |                                                                 |   |                                                          |
| Program      - Reimbursed under Grants              |                                                                 |   |                                                          |
| RiVax™                                        | 515,190                                                              |   | 66,168                                                        |
| BT-VACC™                                      | 13,989                                                               |   | 11,903                                                        |
|   Reimbursed      under Grant             | $        529,179             |   | $         78,071 |
|                                                |                                                                 |   |                                                          |
| TOTAL                                               | $          1,129,180                             |   | $    1,120,829                            |

----

Table of Contents

|                                                                |                                            March 31, 2008 |    |                                                                                                                                               |    | December      31, 2007 |   |   |   |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------|--------|--------|--------|
| Deferred      tax assets:                                           |                                                                                                                                                                                                                                               |    |                                                                                                                                               |    |                   |   |   |   |
| Net      operating loss carry forwards                              | $      25,000,000                                                                                                                                                                                                                                  |    | $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                                                               |   29,800,000                                                                                                                                                                                                                             |    |   30,000,000                                                                                                                             |    |                   |   |
| Valuation      allowance                                            | ( 29,800,000                                                                                                                                                                                                                                  |  ) | ( 30,000,000                                                                                                                                  |  ) |                   |   |
| Net      deferred tax assets                                        |              $                       -                                                       |    |        $                 - |    |                   |   |

| 2008 | $        910,000 |
|------|----------------------------------------------------------|
| 2009 | 1,330,000                                                |
| 2010 | 1,410,000                                                |
| 2011 | 870,000                                                  |
| 2012 | 3,870,000                                                |

|                                                                                                                    |            2008                                         |   |              2007                       |
|-------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|
|                                                                                                                    |                                                                                                           |   |                                                                                                     |
| Income      tax loss at federal statutory rate                                                                     |                  (34.00)% |   |                      (34.00)% |
| State      taxes, net of federal benefit                                                                           |               (4.00)                     |   |               (4.29)               |
| Permanent      differences, principally purchased     in-process      research and development |              -                                |   |              -                          |
|  Valuation      allowance                                                                                     |              38.00                            |   |               38.29                |
| Provision      for income taxes (benefit)                                                                          |               -      %                   |   |                -      %       |

----

Table of Contents

| Contractual      Obligation           | Year2008                        | Year2009           | Year2010                 |
|---------------------------------------|---------------------------------|--------------------|--------------------------|
| Non-cancelable      obligation (1)(2) | $    41,000 | $  4,500 | 4,500                    |
| TOTALS                                | $   41,000       | $      4,500       | $   4,500 |

| (1)   | On      October 1, 2007, we signed a one year lease to occupy office space in      Ewing, New Jersey. |
|-----------------|-------------------------------------------------------------------------------------------------------|

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

----

Table of Contents

ITEM

----

Table of Contents

ITEM 

|   | 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 Chief 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 Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002.  |

| Signature                                                                                                                                                                                                                                                                                                                                                                                                 |   | Title                                                                                          |   | Date                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|-------------------------|
|  /s/      Christopher J.      Schaber                                                      Christopher      J. Schaber |   |  Director,      President and Chief Executive Officer (Principal Executive      Officer)  |   |  May 15,      2008 |
|  /s/ Evan Myrianthopoulos                                                      Evan      Myrianthopoulos               |   |  Director,      Chief Financial Officer (Principal Financial and Accounting      Officer) |   |  May 15,      2008 |

----

Table of Contents

| Exhibit      No. |   | Description                                                                                                            |
|------------------|--------|------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                   |
| 31.1        |   | Certification      of the Chief Executive Officer pursuant to Section 302 of the      Sarbanes Oxley Act of 2002. |
| 31.2   |   | Certification      of the Chief Financial Officer pursuant to Section 302 of the      Sarbanes Oxley Act of 2002. |
| 32.1   |   | Certification      of the Chief Executive Officer pursuant to Section 906 of the Sarbanes      Oxley Act of 2002.      |
| 32.2        |   | Certification      of the Chief Financial Officer pursuant to Section 906 of the Sarbanes      Oxley Act of 2002.      |

----

Table of Contents