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, 2000
                                      --------------

                                       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)

                                       N/A
                  --------------------------------------------
              (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, 2000,  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,
                                                                    2000
                                                                  --------
ASSETS
------
Current assets:
   Cash and cash equivalents                                       $ 6,644
   Short-term investments                                            6,637
   Prepaid expenses and other                                          168
                                                                   -------
        Total assets                                               $13,449
                                                                   =======

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

Current liabilities:
   Accounts payable                                                $    13
   Accrued liabilities                                                 176
                                                                   -------
        Total liabilities                                              189
                                                                   -------

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                                            ( 86,574)
                                                                   -------
        Total stockholders' equity                                  13,260
                                                                   -------

        Total liabilities and
         stockholders' equity                                      $13,449
                                                                   =======





                 See accompanying notes to financial statements.

                                        2


<PAGE>



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

                                                      Three Months Ended
                                                           March 31 ,
                                                     ---------------------
                                                      2000           1999
                                                     ------         ------

Revenues:
 Interest income                                    $   205        $   124
 Gain on disposition of property
  and equipment                                           -            246
 Other income                                             -             45
                                                    -------        -------
    Total revenues                                      205            415
                                                    -------        -------

Expenses:
 General and administrative                             133            215
                                                    -------        -------

Income before income taxes                               72            200
Provision for income taxes                                3              -
                                                    -------        -------
Net income                                          $    69        $   200
                                                    =======        =======

Basic and fully diluted net income
 per share                                          $   .04        $   .11
                                                    =======        =======

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






                 See accompanying notes to financial statements.

                                        3


<PAGE>



                                  CORTECH, INC.
                            STATEMENTS OF CASH FLOWS
                                 ($000 Omitted)
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                              Three Months Ended
                                                                                  March 31 ,
                                                                          -------------------------

                                                                           2000               1999
                                                                          ------             ------

<S>                                                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                            $     69           $    200
  Adjustments:
    Gain on disposition of equipment                                           -          (     246)
    Change in accrued interest on short-term investments               (      69)                 -
    Change in prepaid expenses and other assets                        (      14)                24
    Change in accounts payable                                         (       4)         (      92)
    Change in accrued liabilities                                             14          (      69)
                                                                        --------           --------
      Net cash used in operating activities                            (       4)         (     183)
                                                                        --------           --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sales of property and equipment                                -                246
                                                                        --------           --------
      Net cash provided by investing activities                                -                246
                                                                        --------           --------

Net increase (decrease) in cash and cash equivalents                   (       4)                63
Cash and cash equivalents, beginning of period                             6,648             11,597
                                                                        --------           --------
Cash and cash equivalents, end of period                                $  6,644           $ 11,660
                                                                        ========           ========



</TABLE>




                 See accompanying notes to financial statements.

                                        4


<PAGE>



                                  CORTECH, INC.
                          NOTES TO FINANCIAL STATEMENTS

                                   (UNAUDITED)

1.        General
          -------

               The accompanying  unaudited financial statements of Cortech, Inc.
          ("Cortech"  or the  "Company")  as of March 31, 2000 and for the three
          months ended March 31, 2000 and 1999 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,
          1999 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,
          2000 and 1999 are not  necessarily  indicative  of the  results  to be
          expected for the entire year or for any other period.

2.        Legal Proceedings
          -----------------

               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. 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






                                        5


<PAGE>



          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.  Thereafter,  the parties
          negotiated  a settlement  of the claims.  Pursuant to the terms of the
          settlement  a  payment  in the  amount of  $235,000  shall  be made to
          Cortech on behalf of  Defendants  by Cortech's  directors and officers
          insurance  carrier.  On April 6, 2000,  the Court  held a hearing  and
          approved the  settlement  and ordered  Cortech to pay  $129,261.88  in
          attorney's  fees and  expenses  from the  insurance  proceeds  it will
          receive.  There  were  no  objectors  to the  settlement  and, barring
          appeal, the Court's order ends the matter.












                                        6


<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's  1999 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 $69,000 or $.04 basic and fully diluted  earnings
per share for the three months  ended March 31, 2000,  compared to net income of
$200,000 or $.11 basic and fully diluted  earnings per share for the same period
of 1999.

     Interest  income was $205,000 and $124,000 for the three months ended March
31,  2000 and 1999,  respectively,  an  increase  of  $81,000.  Higher  invested
balances and higher yields on investments were the reasons for this increase.

     Gains on  disposition  of property and equipment was $246,000 for the three
months ended March 31, 1999.  There were no gains on disposition of property and
equipment for the three months ended March 31, 2000.

     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 in connection with legal proceedings (see Part II, Item 1).






                                        7


<PAGE>



Expenses
--------

     General and  administrative  expenses  decreased from $215,000 in the three
months ended March 31, 1999 to $133,000 in the three months ended March 31, 2000
a decrease  of  $82,000.  During the 1999  period,  the Company was still in the
process of winding  down its  operations.  For the three  months ended March 31,
2000,  general and  administrative  expenses consisted of legal fees of $42,000;
administrative fees of $45,000; insurance fees of $18,000 and all other expenses
of  $28,000.   For  the  three  months   ended  March  31,  1999,   general  and
administrative  expenses consisted of the patent related costs of $75,000; legal
fees of $62,000; insurance fees of $32,000 and all other expenses of $46,000.

     The Company  utilized its net operating loss  carryforward to absorb all of
its federal  taxable  income for the quarters ended March 31, 2000 and 1999, and
continues  to reflect a full  valuation  allowance on the tax benefit of the net
operating loss carryforwards.

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

     At  March  31,  2000,  the  Company  had  cash  and  cash   equivalents  of
approximately  $6.6 million.  Cash equivalents of $6.6 million consisted of U.S.
Treasury  Bills with an original  maturity  of three  months or less with yields
ranging  between  5.39%  and  5.90%.  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.  The Company also had
short-term   investments   consisting  of  U.S.  Treasury  Bills  with  original
maturities of six months of $6.6 million at March 31, 2000.

     Net cash of $4,000 was used in  operations  for the quarter ended March 31,
2000,  compared to net cash used in operations of $183,000 for the quarter ended
March 31, 1999. In 2000,  cash flows from net income of $69,000 and the increase
in accrued  liabilities of $14,000,  partially offset by the increase in accrued
interest  on  short-term  investments  of $69,000  and the  increase  in prepaid
expenses of $14,000 were the primary reasons for the cash used in operations.

     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
decreases in accounts payable of $92,000 and accrued liabilities of $69,000.

     Net cash of $246,000  was  provided by  investing  activities  in the three
months  ended March 31, 1999,  entirely the result of proceeds  from the sale of
property and equipment.






                                        8


<PAGE>



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

     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 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.  Thereafter,  the
parties  negotiated  a  settlement  of the claims.  Pursuant to the terms of the
settlement  a payment  in the  amount of  $235,000,  shall be made to Cortech on
behalf of Defendants by Cortech's  directors and officers insurance carrier.  On
April 6, 2000,  the Court held a hearing and approved the settlement and ordered
Cortech to pay  $129,261.88  in attorney's  fees and expenses from the insurance
proceeds it will receive. There were no objectors to the settlement and, barring
appeal, the Court's order ends the matter.

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

     a.  Exhibits

           27       Financial Data Schedule for the three months ended March 31,
                    2000

     b.  Reports on Form 8-K

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






                                        9


<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 11, 2000                           /s/ Sue Ann Itzel
                                             -----------------
                                             Sue Ann Itzel
                                             Treasurer
                                             (Principal Accounting and Financial
                                             Officer)








                                       10