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 June 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 or 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 August 1, 1999 was 8,660,899 shares.


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<PAGE>

PART I - FINANCIAL INFORMATION
------------------------------

Item 1.  Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET


                                     ASSETS
                                     ------


                                                     As of
                                                 June 30,1999
                                                  (Unaudited)
                                                  -----------
CURRENT ASSETS:
   Cash                                          $     10,809
   Prepaid expenses                                     7,287
                                                  -----------

        Total current assets                           18,096

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $251,851                             1,138





OTHER ASSETS                                            2,196


        Total assets                             $     21,430
                                                 ============


           See notes to condensed consolidated financial statements.


                                       2

<PAGE>

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


                      LIABILITIES AND STOCKHOLDERS' DEFICIT
                      -------------------------------------

                                                                As of
                                                           June 30, 1999
                                                             (Unaudited)
                                                             -----------
CURRENT LIABILITIES:
   Notes payable to related parties                          $   156,250
   Consulting fee payable to
    related party                                                 81,994
   Accrued payroll                                                   792


        Total current liabilities                                239,036


STOCKHOLDERS' DEFICIT:
   Common stock, $.001 par value;
    20,000,000 shares authorized,
    8,660,899 shares issued
    and 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                                        (7,176,209)

        Total stockholders'
         deficit                                                (217,606)
                                                             -----------
        Total liabilities and
         stockholders' deficit                               $    21,430
                                                             ===========


           See notes to condensed consolidated financial statements.


                                       3

<PAGE>

<TABLE>
                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>

                                         For the Three                    For the Six
                                         Months Ended                     Months Ended
                                            June 30,                         June 30,
                                 ----------------------------      ----------------------------
                                     1999             1998             1999             1998
                                 -----------      -----------      -----------      -----------
                                          (Unaudited)                       (Unaudited)

<S>                              <C>              <C>              <C>              <C>
ROYALTY REVENUES                 $    27,520      $    67,360      $    27,520      $    67,360
                                 -----------      -----------      -----------      -----------

OPERATING EXPENSES:
  General and
   administrative                     37,339           46,168           75,128          117,132
  Research and
   development                        38,160           70,784           40,162          137,142
                                 -----------      -----------      -----------      -----------
    Total operating expenses          75,499          116,952          115,290          254,274
                                 -----------      -----------      -----------      -----------


LOSS FROM OPERATIONS                 (47,979)         (49,592)         (87,770)        (186,914)
                                 -----------      -----------      -----------      -----------


OTHER (EXPENSE) INCOME:
  Miscellaneous income                 3,294             --              3,294             --
  Interest income                         68              388              214              983
  Interest expense                    (3,485)          (3,207)          (6,657)          (6,421)
  Total other expense, net              (123)          (2,819)          (3,149)          (5,438)
                                 -----------      -----------      -----------      -----------


NET LOSS                             (48,102)         (52,411)         (90,919)        (192,352)
 PREFERRED STOCK DIVIDENDS            (2,282)          (2,281)          (4,564)          (4,563)
                                 -----------      -----------      -----------      -----------

NET LOSS APPLICABLE
  TO COMMON SHARES               $   (50,384)     $   (54,692)     $   (95,483)     $  (196,915)
                                 ===========      ===========      ===========      ===========
NET LOSS PER COMMON SHARE
  (BASIC AND DILUTED)            $      (.01)     $      (.01)     $      (.01)     $      (.02)
                                 ===========      ===========      ===========      ===========
 WEIGHTED AVERAGE NUMBER
  OF COMMON SHARES
  OUTSTANDING                      8,660,899        8,550,899        8,660,899        8,550,899
                                 ===========      ===========      ===========      ===========
</TABLE>


           See notes to condensed consolidated financial statements.


                                       4

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                              For the Six Months Ended
                                                      June 30,
                                              ------------------------
                                                 1999           1998
                                              ---------      ---------
                                             (Unaudited)

                                DECREASE IN CASH
                                ----------------

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                      $ (90,919)     $(192,352)
Adjustments to reconcile net
  loss to net cash
  used in operating activities-
    Depreciation                                    433            432
    Expense related to stock options
     issued as compensation for services           --           44,500
    Changes in assets and liabilities-
      Decrease in royalties receivable           45,920         67,200
      Decrease in prepaid expenses                9,500          9,999
      Increase in consulting fees payable
       to related party                          29,998         25,998
      Decrease in accounts payable              (29,098)          (428)
      Decrease in accrued payroll                  (276)        (6,152)
      Decrease in interest payable                 --           (4,752)
      Increase (decrease) in related
       party payable                             11,250        (25,000)
                                              ---------      ---------

        Net cash used in
         operating activities                   (23,192)       (80,555)
                                              ---------      ---------




            See notes to condensed consolidated financial statements.


                                       5

<PAGE>

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

                                          For the Six Months Ended
                                                   June 30,
                                          ------------------------
                                             1999           1998
                                          ---------      ---------
                                         (Unaudited)

CASH FLOWS FROM FINANCING ACTIVITIES:

 Preferred stock dividends paid           $  (4,564)     $  (4,563)
       Net cash used in
         financing activities                (4,564)        (4,563)
                                          ---------      ---------



NET DECREASE IN CASH                        (27,756)       (85,118)

CASH AT BEGINNING OF THE PERIOD              38,565        138,429
                                          ---------      ---------

CASH AT END OF THE PERIOD                 $  10,809      $  53,311
                                          =========      =========




           See notes to condensed consolidated financial statements.


                                       6

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1-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 six month periods ended June 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  agreement  are  presently the
Company's sole source of revenue and the royalty is expected to terminate during
1999.  The Company  generated a net loss from  operations of $48,102  during the
three-month  period ended June 30, 1999 and as of June 30, 1999, the Company had
an accumulated  deficit of $7,176,209 and negative  working capital of $217,606.
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.


                                       7

<PAGE>

Item 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
--------------------------------------------------------------------------------
OPERATION
---------

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.
During the quarter ended June 30, 1999, the Company borrowed $7,500 from each of
two principal shareholders.  The debt is being repaid with interest at a rate of
10% in four quarterly installments,  with one fourth of the principal amount due
at the end of each  quarter  for one  year.  The debt was  reduced  by  payments
totaling $3,750 prior to the end of the quarter.

     The royalty agreement with JJMI has been pledged to secure repayment of the
$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 they come due.

Results of Operations

     InMedica has a stockholders' deficit of $217,606 and an accumulated deficit
of $7,176,209  as of June 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 of  $48,102  for the  three  months  ended  June 30,  1999 was
approximately  the same as the $52,411  loss for the three months ended June 30,
1998,  although  revenues  declined by approximately  $40,000 for the comparable
period in 1999. However,  both general and administrative  expenses and research
and development expense decreased by a total of approximately $40,000 during the
three months ended June 30, 1999  resulting in  approximately  the same loss for
the comparable periods.


                                       8

<PAGE>

     The Company does not expect that its 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.




                           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


                                       9

<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, Principal
                                                Executive Officer


Date:  August 13, 1999                          /s/ Richard Bruggeman
----------------------                          --------------------------------
                                                By Richard Bruggeman, Principal
                                                Financial Officer








                                       10

<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








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