U.S. SECURITIES AND EXCHANGE COMMISSION
                     ---------------------------------------


                             Washington, D.C. 20549
                             ----------------------


                                  Form 10 - QSB
                                  -------------


                   Quarterly Report Under Section 13 or 15 (d)
                   -------------------------------------------
                     of the Securities Exchange Act of 1934
                     --------------------------------------

                For the Quarterly Period Ended September 30, 1999
                -------------------------------------------------


                           Commission File No. 0-12968
                           ---------------------------


                        INMEDICA DEVELOPMENT CORPORATION
                        --------------------------------
        (Exact name of small business issuer as specified in its charter)
        -----------------------------------------------------------------



            Utah                                          87-0397815
-------------------------------                 -------------------------------
(State or other jurisdiction of                 (I.R.S. Employer Identification
 incorporation of organization)                             Number)

                   825 N. 300 West, Salt Lake City, Utah 84103
                   -------------------------------------------
                    (Address of principal executive offices)

Registrant's telephone number including area code  (801) 521-9300
-----------------------------------------------------------------



Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act of 1934  during the  preceding  12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days:
                    Yes   X                           No
                         ---                             ---

The number of shares outstanding of the Registrant's only class of common stock,
par value $.001 per share, as of November 8, 1999 was 8,660,899 shares.


<PAGE>


PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET


                                     ASSETS


                                           As of
                                       September 30,
                                           1999
                                       -------------
                                        (Unaudited)

CURRENT ASSETS:
   Cash                                   $ 6,064
   Prepaid expenses                         2,537
                                          -------

        Total current assets                8,601

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $252,067                   922


OTHER ASSETS                                2,196
                                          -------

        Total assets                      $11,719
                                          =======

See notes to condensed consolidated financial statements.


                                        3
<PAGE>





                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)


                      LIABILITIES AND STOCKHOLDERS' DEFICIT


                                            September 30,
                                                 1999
                                            -------------
                                             (Unaudited)


CURRENT LIABILITIES:
   Note payable to related party            $  156,250
   Consulting fee payable
    to related party                            98,993
   Accrued payroll                                 792
                                            ----------
        Total current liabilities              256,035
                                            ----------

STOCKHOLDERS' DEFICIT:
   Common stock, $.001 par value;
    20,000,000 shares authorized,
    8,660,899 shares outstanding                8,661
   Preferred stock,  10,000,000
    shares  authorized;  Series
    A preferred  stock,
    cumulative and convertible,
    $4.50 par value;  1,000,000
    shares  designated, 25,356
       shares outstanding                     114,102
   Additional paid-in
     capital                                6,835,840
   Accumulated deficit                     (7,202,919)

        Total stockholders'
         deficit                             (244,316)
                                            ----------
        Total liabilities and
         stockholders' deficit              $  11,719
                                            ==========


            See notes to condensed consolidated financial statements.

                                       4
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                    For the Three            For the Nine
                                     Months Ended            Months Ended
                                    September 30,            September 30,
                               ---------------------    ---------------------
                                  1999        1998         1999        1998
                                     (Unaudited)              (Unaudited)
ROYALTY REVENUES               $  16,800   $  99,680    $  44,320  $  167,040
                               ---------   ---------    ---------  ----------

OPERATING EXPENSES:
  General and administrative      28,046      30,502      103,174     147,634
  Research and development        10,689      87,495       50,851     243,137
                               ---------   ---------    ---------   ---------
    Total operating expenses      38,735     117,997      154,025     390,771
                               ---------   ---------    ---------   ---------

LOSS FROM OPERATIONS             (21,935)    (18,317)    (109,705)   (223,731)
                               ----------  ---------     --------   ----------

OTHER (EXPENSE) INCOME:
  Miscellaneous income               746         -          4,040          -
  Interest income                      4         167          218       1,150

                                  (3,242)     (3,242)      (9,899)      9,663)
Interest expense
Total other expense, net          (2,492)     (3,075)      (5,641)     (8,513)
NET LOSS                         (24,427)    (21,392)    (115,346)   (232,244)
PREFERRED STOCK DIVIDENDS         (2,283)     (2,283)      (6,847)     (6,846)
                               ---------   ---------    ---------   ----------

NET LOSS APPLICABLE
  TO  COMMON  SHARES      $      (26,710)  $ (23,675)   $(122,193)  $(239,090)
                               =========   =========    =========   ==========
NET LOSS PER
  COMMON SHARE (BASIC AND
  DILUTED)                     $   (.00)   $    (.00)   $    (.01)  $    (.03)
                               =========   =========    =========   =========
WEIGHTED AVERAGE NUMBER
  OF COMMON SHARES
  OUTSTANDING                  8,660,899  8,550,899    8,660,899   8,550,899
                               =========  =========    =========   =========








            See notes to condensed consolidated financial statements.

                                       5
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                           INCREASE (DECREASE)IN CASH

                                                     For the  Nine Months Ended
                                                             September 30,
                                                   -----------------------------
                                                        1999              1998
                                                   -------------      ---------
                                                              (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net loss                                             $(115,346)     $(232,244)
  Adjustments to reconcile net
    loss to net cash provided
    by (used in) operating activities-
      Depreciation                                           649            648
Expense related to stock options
       issued as compensation for services                  --           77,835
      Changes in assets and liabilities -
        Decrease in royalties receivable                  45,920         67,200
Decrease in prepaid expenses                              14,250         14,999
       Increase in consulting fees payable
         to related party                                 46,997         17,332
       (Decrease) increase in
         accounts payable                                (29,098)        19,158
(Decrease) increase in accrued
         payroll                                            (276)        15,848
        Decrease in interest payable                        --           (4,752)
        Increase (decrease) in related
         party payable                                    11,250        (25,000)
                                                       ---------      ---------

       Net cash used in operating
         activities                                      (25,654)       (48,976)
                                                       ---------      ---------





            See notes to condensed consolidated financial statements.

                                       6
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                                            For the Nine Months Ended
                                                 September 30,
                                       ------------------------------
                                           1999               1998
                                       -----------         ----------
                                                 (Unaudited)


CASH FLOWS FROM FINANCING ACTIVITIES:

  Preferred stock dividends paid        $   (6,847)         $  (6,847)
          Net cash used in financing
            activities                      (6,847)            (6,846)
                                        ----------          ----------

NET DECREASE IN CASH                       (32,501)           (55,822)
CASH AT BEGINNING OF THE PERIOD             38,565            138,429
                                       -----------         ----------

CASH AT END OF THE PERIOD              $     6,064         $   82,607
                                       ===========         ==========



            See notes to condensed consolidated financial statements.


                                       7
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE A--BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the instructions to Form 10-QSB and Item 310b of
Regulation  SB.  Accordingly,  they do not  include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  These  condensed  consolidated  statements  include  the
accounts of InMedica  Development  Corporation and its wholly owned  subsidiary,
MicroCor, Inc. ("MicroCor"). All material intercompany accounts and transactions
have been eliminated.

In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring  adjustments)  considered  necessary for fair  presentation  have been
included. Operating results for the three and nine-month periods ended September
30, 1999 are not necessarily  indicative of the results that may be expected for
the year  ending  December  31,  1999.  For  further  information,  refer to the
consolidated  financial statements included in the Company's Form 10-KSB for the
year ended December 31, 1998.

Royalties received from the Johnson and Johnson Medical,  Inc. agreement are the
Company's  sole  source of revenue and the  Company  has been  advised  that the
royalty is expected to terminate during the current year. The Company  generated
a net loss of $115,346 during the nine-month period ended September 30, 1999 and
as of September 30, 1999, the Company had an accumulated  deficit of $7,202,919.
These conditions raise substantial doubt as to the Company's ability to continue
as a going  concern.  The Company's  continued  existence is dependent  upon its
ability to achieve a viable operating plan.


                                       8
<PAGE>



Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

Liquidity and Capital Resources

     For the years ended  December 31, 1998 and 1997,  liquidity  was  generated
from royalty income received from Johnson and Johnson  Medical,  Inc.  ("JJMI").
This income is expected to terminate during 1999. InMedica continues to look for
other funding sources but as of the date of this filing, it has no commitments.

     The royalty  agreement with JJMI has been pledged to secure  repayment of a
$145,000  related party note payable.  Funds expended to develop other potential
assets of the Company such as a hematocrit device have been expensed as incurred
as research and  development.  The ability of the Company to use the  hematocrit
device as a means of securing funding for the Company is totally  dependent upon
the success of further  research and  development  efforts in producing a viable
device suitable for commercialization.  The Company intends to rely upon private
sources for loans, if necessary, to meet its obligations as the come due.

Results of Operations

     InMedica  has a  stockholders'  deficit  of $  244,316  and an  accumulated
deficit of  $7,202,919  as of  September  30,  1999.  In order for  InMedica  to
continue  research  and  development  activities,  it  will  require  additional
financing, for which it has no commitments.

     The net  loss  from  operations  of  $109,705  for the  nine  months  ended
September 30, 1999 was about half that  experienced in the comparable  period of
the prior year.  Comparison of the two periods  indicates that revenues declined
from $167,040 to $44,320 while total operating  expenses  declined from $390,771
to 154,025.  As revenues have  declined,  the Company has curtailed  general and
administrative  expenses by approximately $44,000 and has decreased expenditures
for research and development by about $192,000 when compared to the period ended
September 30, 1998.

                                       9
<PAGE>

     The  Company  does not  expect  that its own  operations  will be  directly
affected by the Year 2000 computer issue ("Y2K"),  however the Company is unable
to forecast any indirect adverse effect of computer or other device  malfunction
related to Y2K on the medical technology  industry and the business of potential
strategic  partners.  The Company has contacted JJMI and Medical Physics and has
been assured  that they are acting  responsibly  to avoid any adverse  impact on
their ability to conduct their operations due to the Y2K issue.




<PAGE>




     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:


     Exhibits:

(1)  Financial Data Schedule


     Form 8-K:  None



                                       10
<PAGE>



                                   SIGNATURES
                                   ----------

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                INMEDICA DEVELOPMENT CORPORATION


                                /s/ Larry E. Clark
                                -------------------
                                By Larry E. Clark, Chief Executive
                                   Officer


                                 /s/ Richard Bruggeman
                                 ----------------------
Date:  November 11, 1999         By Richard Bruggeman, Chief
                                   Financial Officer

                                       11
<PAGE>


                                    EXHIBITS


Exhibits  filed with the Form 10-QSB of InMedica  Development  Corporation,  SEC
File No. 0-12968:


Exhibit No.      SB Item No.       Description
----------------------------------------------

    1              (27)         Financial Data Schedule


                                       12