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: March 31, 1999
                                                 --------------

                                       OR

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

                          Commission File No.: 0-20726
                          ----------------------------

                                 Cortech, Inc. 
         ---------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

          Delaware                                            84-0894091
 ------------------------------                          ------------------   
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                           Identification No.)


                376 Main Street, PO Box 74, Bedminster, NJ 07921
                ------------------------------------------------
                    (Address of principal executive offices)

                                 (908) 234-1881
                            -------------------------
                           (Issuer's telephone number)

                6850 N. Broadway,  Suite G, Denver, Colorado 80221
               --------------------------------------------------- 
              (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 issuer was required to file such reports), and (2) has been
            subject to such filing requirements for the past 90 days.
                                 Yes X No _____

    State the number of shares  outstanding  of each of the issuer's  classes of
   common equity: As of April 30, 1999, the issuer had 1,852,209 shares of its
              common stock, par value $.002 per share, outstanding.

           Transitional Small Business Disclosure Format (check one):
                                 Yes _____ No X 



<PAGE>


PART I.    FINANCIAL INFORMATION
------     --------------------- 
ITEM 1.    Financial Statements
------     ---------------------


                                  CORTECH, INC.
                                  BALANCE SHEET
                                 ($000 Omitted)
                                   (UNAUDITED)

                                                                 March 31,
                                                                   1999  
                                                                 --------
ASSETS
------

Current assets:
     Cash and cash equivalents                                   $11,660
     Prepaid expenses and other                                       53
                                                                 -------
             Total assets                                        $11,713
                                                                 =======

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities:
     Accounts payable                                            $    59
     Accrued liabilities                                             597
     Accrued severance and other compensation                        316
                                                                 -------
             Total liabilities                                       972
                                                                 -------
Stockholders' equity:
     Preferred stock, $.002 par value,
       2,000,000 shares authorized,
       none issued                                                     -
     Common stock, $.002 par value, 5,000,000
       shares authorized, 1,852,209 shares
       issued and outstanding                                          4
     Additional paid-in capital                                   99,830
     Accumulated deficit                                        ( 89,093)
                                                                 -------

             Total stockholders' equity                           10,741
                                                                 -------
             Total liabilities and
               stockholders' equity                              $11,713
                                                                 =======




                 See accompanying note to financial statements.


<PAGE>



                                  CORTECH, INC.
                            STATEMENTS OF OPERATIONS
                      ($000 Omitted, except per share data)
                                   (UNAUDITED)


                                                   Three Months Ended
                                                        March 31 ,     
                                                ----------------------
                                                 1999            1998 
                                                ------          ------

Revenues: 
   Interest income                            $    124         $   196
   Gain on disposition of property  
     and equipment                                 246             215
   Other income                                     45               -
                                              --------         -------
       Total revenues                              415             411
                                              --------         -------

Expenses:
   General and administrative                      215           1,522
   Research and development                          -             288
                                              --------         -------
       Total expenses                              215           1,810
                                              --------         -------

Net income (loss)                             $    200        ($ 1,399)
                                              ========         =======

Basic and fully diluted net income 
   (loss) per share                           $    .11        ($   .76)
                                              ========         =======

Weighted average common shares
   outstanding (in 000's)                        1,852           1,852
                                              ========         =======



                 See accompanying note to financial statements.




<PAGE>



                                  CORTECH, INC.
                             STATEMENTS OF CASH FLOWS
                                  ($000 Omitted)
                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                                                   Three Months Ended
                                                                       March 31 ,      
                                                              ---------------------------
                                                                 1999             1998 
                                                                ------           ------
<S>                                                           <C>              <C>     
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                            $    200        ($  1,399)
  Adjustments:
    Depreciation and amortization                                     -              317
    Gain on disposition of equipment                          (     246)       (      90)
    Decrease in prepaid expenses and other                           24               29
    (Decrease) increase in accounts payable                   (      92)             107
    Decrease in accrued liabilities, accrued
     severance and other                                      (      69)       (     223)
                                                               --------         --------
      Net cash used in operating activities                   (     183)       (   1,259)
                                                               --------         --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sales of property and equipment                     246              171
  Purchases of short-term investments                                 -        (       9)
  Sales of short-term investments                                     -            3,850
                                                               --------         --------
      Net cash provided by investing activities                     246            4,012
                                                               --------         --------

Net increase in cash and cash equivalents                            63            2,753
Cash and cash equivalents, beginning of period                   11,597           11,562
                                                               --------         --------
Cash and cash equivalents, end of period                       $ 11,660         $ 14,315
                                                               ========         ========

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
      Note receivable from sale of equipment                   $      -         $    125
                                                               ========         ========

</TABLE>


                 See accompanying note to financial statements.


<PAGE>



                                  CORTECH, INC.
                          NOTE TO FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.   General
     -------

     The accompanying unaudited financial statements of Cortech, Inc. ("Cortech"
     or the "Company") as of March 31, 1999 and for the three months ended March
     31,  1999 and 1998  reflect all  material  adjustments  consisting  of only
     normal  recurring  adjustments,  which,  in the opinion of management,  are
     necessary  for a fair  presentation  of results  for the  interim  periods.
     Certain  information  and footnote  disclosures  required  under  generally
     accepted  accounting  principles have been condensed or omitted pursuant to
     the  rules and  regulations  of the  Securities  and  Exchange  Commission,
     although the Company believes that the disclosures are adequate to make the
     information presented not misleading.  These financial statements should be
     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
     December 31, 1998 as filed with the Securities and Exchange Commission.

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements  and the  reported  amounts of revenues  and expenses
     during  the  reporting  period.  Actual  results  could  differ  from those
     estimates.

     Prior years' financial  statements have been reclassified to conform to the
     current year's presentation.

     The results of  operations  for the three  months  ended March 31, 1999 and
     1998 are not  necessarily  indicative of the results to be expected for the
     entire year or for any other period.



<PAGE>



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

     The following  discussion and analysis  should be read in conjunction  with
Cortech,  Inc.'s  ("Cortech" or the "Company") 1998 Annual Report on Form 10-KSB
as well  as the  Company's  financial  statements  and  notes  thereto  included
elsewhere in this Quarterly Report on Form 10-QSB. When used in this discussion,
the  word   "expects"   and  similar   expressions   are  intended  to  identify
forward-looking   statements.   Such   statements   are  subject  to  risks  and
uncertainties  that could cause actual results to differ  materially  from those
projected. The forward-looking  statements contained herein speak only as of the
date hereof.  The Company  expressly  disclaims any obligation or undertaking to
release  publicly  any updates or revisions  to any  forward-looking  statements
contained herein to reflect any change in the Company's expectations with regard
thereto or any change in events,  conditions or  circumstances on which any such
statement is based.

General
-------

     Cortech  operated  as  a  biopharmaceutical   company  whose  research  and
development  efforts  focused  primarily on bradykinin  antagonists and protease
inhibitors.  Those  efforts  produced  a  technology  portfolio  which  may have
potential  therapeutic  application across a broad range of medical  conditions.
Cortech's strategy is to seek collaborative  partners to conduct and fund future
research and development on the components of its portfolio,  although there can
be no assurance  that any particular  agreement  will be completed.  At the same
time, the Company is seeking to redeploy its assets into an operating business.

Results of Operations
---------------------

Revenues
--------

     Cortech had net income of $200,000 or $.11 basic and fully diluted earnings
per share for the three months  ended March 31, 1999,  compared to a net loss of
$1,399,000 of $.76 basic and fully diluted loss per share for the same period of
1998.

     Interest  income was $124,000 and $196,000 for the three months ended March
31, 1999 and 1998, respectively,  a decrease of $72,000. Lower invested balances
and lower yields on investments were the primary reasons for this decrease.

     Gains on  disposition  of property and  equipment was $246,000 and $215,000
for the three months ended March 31, 1999 and 1998,  respectively.  During 1997,
the Company commenced selling property and equipment previously used in research
and development and for administrative purposes.

     Other income of $45,000 in the three months ended March 31, 1999 related to
reimbursement  by  one  of  the  Company's  insurance  carriers  of  legal  fees
previously expensed for the BioStar Litigation (see Part II, Item 1).


<PAGE>

Expenses
--------

     General and administrative  expenses decreased from $1,522,000 in the three
months ended March 31, 1998 to $215,000 in the three months ended March 31, 1999
a decrease of $1,307,000.  During the 1998 period,  the Company was still in the
process of winding down its operations.  During 1999, new management  instituted
strict cost  controls  with the goal of  preserving  cash.  For the three months
ended March 31, 1999, general and administrative  expenses consisted principally
of the patent related costs of $127,000.

     Expenses  for research and  development  were  $288,000 in the three months
ended March 31, 1998. Due to the cessation of on-site  research and  development
activities by the Company in late 1997,  there were no research and  development
expenses in the three months ended March 31, 1999.

     The Company  utilized its net operating loss  carryforward to absorb all of
its regular  taxable  income for the quarter ended March 31, 1999, and continues
to reflect a full  valuation  allowance on the tax benefit of the net  operating
loss  carryforwards.  In the first quarter of 1998, no tax benefit was reflected
due to the continuing losses recorded by the Company at that time.

Liquidity and Capital Resources
-------------------------------

     At  March  31,  1999,  the  Company  had  cash  and  cash   equivalents  of
approximately $11.7 million. Cash equivalents of $11.5 million consisted of U.S.
Treasury  Bills with an original  maturity  of three  months or less with yields
ranging between 4.4% and 4.5%. Management believes its cash and cash equivalents
are  sufficient  for its  remaining  business  activities  and for the  costs of
seeking an acquisition of an operating business.

     Net cash of $183,000 was used in operating activities for the first quarter
of 1999  compared to a net use of  $1,259,000  in the same  quarter of 1998.  In
1999,  cash  flows  from net  income  of  $200,000  were  offset  by the gain on
disposition of equipment of $246,000 (classified as an investing activity) and a
decrease in accounts payable of $92,000 and accrued  liabilities of $69,000.  In
1998,  the net loss of  $1,399,000  and the  decrease  in other  liabilities  of
$223,000 was partially  offset by depreciation  and amortization of $317,000 and
an increase in accounts payable of $107,000.

     Net cash of $246,000  was  provided by  investing  activities  in the three
months ended March 31, 1999, entirely due to the sale of property and equipment.
In the three months ended March 31, 1998,  $4,012,000  was provided by investing
activities  with $3,850,000  provided by the sale of short-term  investments and
$171,000 provided by the sale of property and equipment.

Impact of Year 2000
-------------------

     The year 2000 will impact computer programs written using two digits rather
than four to define  the  applicable  year.  Any  programs  with  time-sensitive
software  may  recognize a date using "00" as the year 1900 rather than the year
2000. This could result in system failure or miscalculations causing disruptions
of  operation,  including a temporary  inability to process  transactions,  send
invoices or engage in other ordinary  activities.  This problem  largely affects
software  programs  written  years ago,  before  the issue  came to  prominence.
Insofar as Cortech has effectively discontinued all  internal efforts to advance


<PAGE>

its research and  development  activities,  Cortech does not believe that it has
significant risk associated with the year 2000 problem.

     

<PAGE>



PART II - OTHER INFORMATION
-------   -----------------
ITEM 1.   Legal Proceedings
-------   -----------------

     BIOSTAR  LITIGATION.  On February 27,  1998,  a complaint  was filed in the
Court of Chancery of the State of Delaware,  naming the Company,  the  Company's
then  current  directors  and  BioStar,  Inc.  ("BioStar")  as  defendants.  The
complaint,  filed by a stockholder  of the Company,  claims to be on behalf of a
class of all the  Company's  stockholders  and  contends  that the then  current
directors  of the  Company  breached  their  fiduciary  duties to the  Company's
stockholders  when they  unanimously  approved  the  proposed  combination  with
BioStar. The complaint originally sought to enjoin the proposed combination with
BioStar as well as the  operation of the company's  stockholder  rights plan and
sought an order  rescinding  the  proposed  combination  with  BioStar  upon its
consummation  as well as  compensatory  damages  and costs.  The  complaint  was
amended following termination of the proposed BioStar merger to seek to force an
auction  of the  company's  assets and other  relief.  Prior  management  of the
Company believed that the claims are without merit.  Recently elected members of
the  Board  of  Directors,  who  comprise  a  majority  of the  board,  have not
determined  the  merits of the  claims  nor  whether  they would have a material
adverse effect on the Company's financial position or results of operations.


ITEM 6.   Exhibits and Reports on Form 8-K
------    --------------------------------

         a.  Exhibits

               27       Financial Data Schedule for the three months ended March
                        31, 1999

         b.  Reports on Form 8-K

                  No reports on Form 8-K were filed during the quarter for which
                  this report is being filed.


 
<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                                  CORTECH, INC.


Date: May 12, 1999                                /s/ Sue Ann Itzel          
                                                  ----------------------------
                                                  Sue Ann Itzel
                                                  Treasurer
                                                  (Principal Accounting and
                                                  Financial Officer)