U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]   QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
      EXCHANGE ACT OF 1934

           For the quarterly period ended September 30, 2000

                                    OR

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

      For the transition period from ____________ to ________

      Commission File Number 000-27353


                            SELECT THERAPEUTICS, INC.
         (Exact name of small business issuer as specified in its
          charter)

                 Delaware                              98-0169105
         State or other jurisdiction of             (I.R.S. Employer
         incorporation or organization)            Identification No.)

         124 Mt. Auburn St., Suite 200 North, Cambridge, MA   02138
         (Address of principal executive offices)           Zip Code)

         (617) 520-6693
         (Issuer's telephone number, including area code)

          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 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 aggregate  number of shares  outstanding of the Issuer's  Common Stock,  its
sole class of common equity, was 11,991,308 as of November 3, 2000.

Transitional Small Business Issuer Disclosure Format: Yes   No X
                                                          -    -

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Select Therapeutics Inc.
(A DEVELOPMENT STAGE ENTERPRISE)
Consolidated Balance Sheets
(Stated in U.S. dollars)
(Unaudited)

<TABLE>
<CAPTION>
                                                                      September 30,     June 30,
                                                                           2000           2000
                                                                                       (Audited)
                                                                      -------------   ------------
<S>                                                                   <C>             <C>
Assets

Cash and cash equivalents                                             $  6,651,490    $  7,901,288
Accounts receivable                                                             --          17,042
Inventory                                                                   26,730          29,938
Prepaid expenses and other assets                                           11,516          56,516
Property, plant and equipment                                              102,584         108,940

                                                                      ------------    ------------
                                                                      $  6,792,320    $  8,113,724
                                                                      ============    ============

Liabilities and Shareholders' Equity

Liabilities:
     Accounts payable                                                 $     61,505    $    314,173
     Accrued liabilities                                                   726,492         496,961
                                                                      ------------    ------------
                                                                           787,997         811,134

Shareholders' equity:
     Capital stock:
         Authorized:
              1,000,000 preferred shares, $0.001 par value
              50,000,000 common shares,
                $0.001 par value
         Issued:
              Nil preferred shares                                              --              --
              11,979,308 (June 30, 2000 - 11,862,308) common shares          1,233           1,186
              1,735,902 warrants                                         3,805,302       3,805,302
     Contributed surplus                                                11,947,706      11,522,852
     Stock options                                                       1,326,250       1,281,250
     Deficit accumulated during the development stage                  (11,076,167)     (9,308,000)
                                                                      ------------    ------------
                                                                         6,004,323       7,302,590

                                                                      ------------    ------------
                                                                      $  6,792,320    $  8,113,724
                                                                      ------------    ------------
</TABLE>


See accompanying note to consolidated financial statements.


                                      F-1
<PAGE>

Select Therapeutics Inc.
(A DEVELOPMENT STAGE ENTERPRISE)
Consolidated Statements of Operations
(Stated in U.S. dollars)

Three months ended September 30, 2000 and 1999
(Unaudited)

                                          2000              1999
                                      ------------      ------------
Revenue                               $         --      $     93,125
Cost of revenue                                 --            13,711
                                      ------------      ------------
                                                --            79,414

Interest income                             83,663               506

Research and development                 1,196,592           121,669
Selling, general and administration        648,882           415,820
Depreciation                                 6,356             9,958
Amortization                                    --            64,937
                                      ------------      ------------
                                         1,851,830           612,384

                                      ------------      ------------
Loss for the period                   $ (1,768,167)     $   (532,464)
                                      ============      ============

Loss per share                        $      (0.15)     $      (0.09)

Weighted average number of shares       11,891,687         5,819,354
                                      ============      ============

See accompanying note to consolidated financial statements.


                                      F-2
<PAGE>

Select Therapeutics Inc.
(A DEVELOPMENT STAGE ENTERPRISE)
Consolidated Statements of Changes in Shareholders' Equity
(Stated in U.S. dollars)

<TABLE>
<CAPTION>



                                         Common shares                   Warrants
                                    Number        Amount          Number         Amount
                                  ---------    ------------     ---------      ----------
<S>                               <C>          <C>              <C>            <C>
Balance, June 30,1999             5,634,094    $      563              --    $         --

Issue of common shares            6,228,214           623              --              --

Issue of warrants                        --            --       1,735,902       3,805,302

Loss for the year                        --            --              --              --

Issue of stock options                   --            --              --              --
                                 ----------    ----------      ----------    ------------

Balance, June 30, 2000           11,862,308         1,186       1,735,902       3,805,302

Loss for the period                      --            --              --              --

Issue of stock options                   --            --              --              --

Issue of common shares              117,000            47

Share issue costs                        --            --              --              --
                                 ----------    ----------      ----------    ------------
Balance, September 30, 2000      11,979,308    $    1,233       1,735,902    $  3,805,302
                                 ==========    ==========      ==========    ============


<CAPTION>


                                                     Deficit
                                                   Accumulated
                                                   during the
                                  Contributed      development         Stock
                                    surplus           stage            options          Total
                                  ------------     ------------     ------------    ------------

<S>                               <C>              <C>              <C>             <C>
Balance, June 30,1999             $  5,145,191     $ (4,585,602)    $         --    $    560,152

Issue of common shares               6,377,661               --               --       6,378,284

Issue of warrants                           --               --               --       3,805,302

Loss for the year                           --       (4,722,398)              --      (4,722,398)

Issue of stock options                      --               --        1,281,250       1,281,250
                                  ------------     ------------     ------------    ------------

Balance, June 30, 2000              11,522,852       (9,308,000)       1,281,250       7,302,590

Loss for the period                         --       (1,768,167)              --      (1,768,167)

Issue of stock options                      --               --           45,000          45,000

Issue of common shares                 468,853               --               --         468,900

Share issue costs                      (44,000)              --               --         (44,000)
                                  ------------     ------------     ------------    ------------
Balance, September 30, 2000       $ 11,947,706     $(11,076,167)    $  1,326,250    $  6,004,323
                                  ============     ============     ============    ============
</TABLE>

See accompanying note to consolidated financial statements.



                                      F-3
<PAGE>

Select Therapeutics Inc.
(A DEVELOPMENT STAGE ENTERPRISE)

Consolidated Statements of Cash Flows
(Stated in U.S. dollars)
Three months ended September 30, 2000 and 1999
(Unaudited)

<TABLE>
<CAPTION>
                                                                           2000              1999
                                                                       -----------       -----------
<S>                                                                    <C>               <C>
Cash provided by (used in):

Operating activities:
     Loss for the period                                               $(1,768,167)      $  (532,464)
     Items not involving cash:
         Depreciation                                                        6,356             9,958
         Amortization                                                           --            64,937
         Issue of common shares for services and license fees              468,900            90,000
         Issue of stock options                                             45,000                --
     Changes in non-cash operating working capital:
         Accounts receivable                                                17,042             7,380
         Inventory                                                           3,208           (35,974)
         Prepaid expenses and other assets                                  45,000             3,360
         Accounts payable                                                 (252,668)          197,368
         Accrued liabilities                                               229,531            28,487
                                                                       -----------       -----------
                                                                        (1,205,798)         (166,948)

Financing activities:
     Proceeds from issuance of common shares                                    --           125,000
     Share issue cost                                                      (44,000)
                                                                       -----------       -----------
                                                                           (44,000)          125,000

Investing activities:
     Additions to property, plant and equipment                                 --           (33,953)
                                                                       ===========       ===========
                                                                                --           (33,953)


Decrease in cash                                                        (1,249,798)          (75,901)

Cash and cash equivalents, beginning of period                           7,901,288           120,881

                                                                       -----------       -----------
Cash and cash equivalents, end of period                               $ 6,651,490       $    44,980
                                                                       ===========       ===========
</TABLE>


See accompanying note to consolidated financial statements.


                                      F-4
<PAGE>

Select Therapeutics Inc.
(A DEVELOPMENT STAGE ENTERPRISE)
Notes to Consolidated Financial Statements (continued)
(Stated in U.S. dollars)
Three months ended September 30, 2000 and 1999
(Unaudited)

--------------------------------------------------------------------------------

1.   Basis of presentation

In the opinion of management, the unaudited consolidated financial statements of
Select Therapeutics Inc. (the "Company") included herein have been prepared on a
consistent  basis  with  the  June  30,  2000  audited  consolidated   financial
statements and include all material adjustments,  consisting of normal recurring
adjustments,  necessary to fairly  present the  information  set forth  therein.
These interim  financial  statements should be read in conjunction with the June
30, 2000  audited  consolidated  financial  statements  and notes  thereto.  The
Company's  results  of  operations  for  the  first  quarter  of  2001  are  not
necessarily indicative of future operating results.

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts  reported in the financial  statements.  Actual results could
differ materially from those estimates.

2.   Cash and cash equivalents

Cash and cash  equivalents  includes  cash and US  Treasury-bills  with maturity
dates of less than 90 days.

3.   Capital Stock

(a)  During the period ended  September  30, 2000,  the Company  issued  117,000
     shares of common stock as consideration for consulting services and license
     fees.

(b)  In September 2000, as part of a termination agreement,  the Company granted
     an option to a former consultant to purchase shares of the Company's common
     stock  at an  exercise  price of $4.00  per  share,  which is equal to fair
     market  value at the date of  grant.  The  option  vested  immediately  and
     expires on September 10, 2002. The value of the option as determined by the
     Black Scholes model, amounting to $45,000, has been expensed in the current
     period.

4.   Subsequent events

(a)  On November  3, 2000,  the Company  completed  the sale of its  subsidiary,
     Sierra  Diagnostics Inc.  ("Sierra"),  to a group of private  investors and
     management  of Sierra in exchange  for a  promissory  note in the amount of
     $1.394  million  bearing  interest  at 9.5% and  secured by certain  Sierra
     patent rights and a six percent royalty on future sales of Sierra's current
     products.

(b)  The Company is proceeding  with its strategic  alliance with Cytomatrix not
     through an acquisition  but rather by a joint  venture,  and the Company is
     currently in the process of  negotiating  a joint  venture  agreement  with
     Cytomatrix.

5.   Loss per share

The basic and  diluted  loss per share has been  calculated  using the  weighted
average number of common shares outstanding during the period.

                                      F-5
<PAGE>


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

     THIS  ITEM  CONTAINS  STATEMENTS  WHICH  ARE NOT  HISTORICAL  FACTS AND ARE
FORWARD-LOOKING  STATEMENTS WHICH REFLECT MANAGEMENT'S  EXPECTATIONS,  ESTIMATES
AND ASSUMPTIONS.  SUCH STATEMENTS ARE BASED ON INFORMATION AVAILABLE AT THE TIME
THIS FORM 10Q-SB WAS PREPARED  AND INVOLVE  RISKS AND  UNCERTAINTIES  THAT COULD
CAUSE  FUTURE  RESULTS,  PERFORMANCE  OR  ACHIEVEMENTS  OF THE COMPANY TO DIFFER
SIGNIFICANTLY FROM PROJECTED RESULTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY INCLUDE, WITHOUT LIMITATION,  THE HIGH COST AND UNCERTAINTY OF
THE RESEARCH AND DEVELOPMENT OF PHARMACEUTICAL PRODUCTS, THE UNPREDICTABILITY OF
THE DURATION AND RESULTS OF THE U.S.  FOOD AND DRUG  ADMINISTRATION'S  REVIEW OF
NEW DRUG  APPLICATIONS,  THE COMPANY'S NEED FOR AND ABILITY TO OBTAIN ADDITIONAL
CAPITAL,  THE  POSSIBLE  IMPAIRMENT  OF, OR  INABILITY  TO OBTAIN,  INTELLECTUAL
PROPERTY RIGHTS AND THE COST OF OBTAINING SUCH RIGHTS FROM THIRD PARTIES AND THE
COMPANY'S DEPENDENCE ON THIRD PARTIES TO RESEARCH, DEVELOP, MANUFACTURE AND SELL
ITS PRODUCTS, IF ANY.

Overview

     We are a development stage biopharmaceutical company and have established a
website  (www.selecttherapeutics.com)  to provide  shareholders  and  interested
parties  with  information  about  us  and  our  activities.  Our  focus  is  on
identification of therapeutic opportunities which combine relatively low cost of
development  with a strong  proprietary  position and potentially  short time to
market. Our development programs involve ex-vivo treatments,  i.e. treatments in
which patients'  tissues are  manipulated  outside the body. Such treatments are
believed to be less costly to investigate  and develop than in-vivo  agents.  We
have a portfolio of therapeutic product  opportunities  focused on cancer and an
intellectual  property  position which we believe both allows us to practice and
defend our technologies.

     We recently  have  concentrated  on  initiating a strategic  alliance  with
Cytomatrix,   LLC,  another  development  stage  company.   Our  Verotoxin-based
technologies  for stem cell purging and for antigen  delivery to dendritic cells
integrate  well with  Cytomatrix'  stem cell  expansion  and T-cell  programs to
deliver a set of related product development programs, and Cytomatrix' stem cell
expansion  programs  are at the point of  entering  clinical  trials at  several
sites.  We  expect to enter  into a  definitive  joint  venture


                                       2
<PAGE>

agreement with Cytomatrix by December 31, 2000. The venture would include all of
Cytomatrix'  technologies,  intellectual  property,  research and administrative
personnel  and  financial  resources,   as  well  as  its  facility  in  Woburn,
Massachusetts,  and we would contribute cash plus our Verotoxin-based  stem cell
purging and dendritic cell development programs.  (We would maintain a corporate
existence  separately  from the joint venture and would  independently  continue
some other programs.) As our product development  programs have progressed,  our
highly "virtual" structure has been tested to the limits of this business model,
and the joint venture with Cytomatrix  would give our  therapeutic  programs the
benefits  of  an  established  and  staffed   business   structure  for  product
development as well as technology  synergy.  We would continue to make extensive
use of subcontractors  and external resources in order to retain flexibility and
maintain what we believe to be a cost efficient operating style. We believe that
through  the joint  venture  we would be  creating a  significant  entity in the
emerging field of cell-based therapy for cancer and other diseases.

     In  accord  with our  increased  focus  on  therapeutic  opportunities  and
cell-based  therapies in  particular,  in November 2000 we concluded the sale of
our  diagnostics  subsidiary  to its  management.  We have retained a 6% royalty
interest in the success of Sierra's current products and, more importantly,  the
sale enables us to focus our management  and financial  resources on therapeutic
opportunities.

     A key activity has been and  continues to be the  acquisition,  development
and  maintenance  of  intellectual  property  positions  in  support  of product
development  opportunities.  We continue to expend significant funds and efforts
on licenses and patent prosecution.  In addition,  we are continually  examining
our intellectual  property  positions in relation to competitive  activities and
our ability to operate and defend our  positions  in  relation to  products.  We
believe that this is a key value element for our development.

Program Review

     During the quarter ended  September 30, 2000, our stem cell purging program
progressed  towards its first  clinical  tests.  Material  qualified for patient
administration was successfully produced by our contract manufacturer, and final
preparations at the clinical site was  undertaken.  In October 2000 we submitted
to the Therapeutic Products Branch of Health Canada our


                                       3
<PAGE>

Investigational New Drug application ("IND") seeking approval to begin our first
clinical investigations of our Verotoxin formulation (Veropulse(TM)) for ex vivo
purging of tumor cells form  autologous  stem cells in  patients  with a type of
cancer known as multiple  myeloma.  We expect the actual  trials to begin in the
first calendar quarter of 2001 pending approval of our IND.

     Preclinical  investigations  of  our  Activate(TM)  system  for  presenting
antigens to dendritic  cells continued via our  collaborations  at the Institute
Curie and the Arizona Cancer Center. We are planing to have clinically qualified
materials produced in 2001 with view to starting clinical investigations late in
calendar 2001 on therapeutic vaccines for cancers.

     During  the  quarter,   we  obtained  two   significant  new  licenses  for
intellectual property in the area of stem cells.

Three months ended September 30, 2000 and 1999

Results of Operations

     During the quarter ended September 30, 2000 we had no revenues and interest
income of $83,663;  during the  corresponding  period in 1999,  we had  interest
income  of $506 and  revenues  of  $93,125  from  sales of  products  of  Sierra
Diagnostics  which we sold on  November  3,  2000.  We have no other  product or
license revenues.

     We have  been  unprofitable  from our  formation  and  have an  accumulated
deficit of  $11,076,167  through  September  30,  2000.  For the  quarter  ended
September 30, 2000, we incurred a net loss of $1,768,167 compared with a loss of
$532,464 for the quarter ended  September 30, 1999.  Operating  expenses for the
quarter  ended  September  30,2000 were  $1,851,830  compared to $612,384 in the
comparable  period in 1999,  reflecting the continual  costs of progressing  our
development projects.  The large increase in our expenses and loss resulted from
our improved cash  position,  which allowed us to spend the money needed to move
development programs forward. The net loss is a result of our routine operations
in our development stage. We expect losses to continue and increase for the next
several years as we pursue development and commercialization of our intellectual
property resources.

     Personnel costs,  including retained consultants,  and external contractors
are the largest ongoing cost of operations.  Locating and retaining  appropriate
personnel resources is a priority, and


                                       4
<PAGE>


anticipate  that these costs will  increase  as our  development  programs  move
forward  and  clinical  trials  are  initiated.  All  research  and  development
activities  are  expensed as  incurred.  Patent  costs are  expensed  due to the
uncertainties  involved in realizing value from specific patents.  There were no
significant capital expenditures during the last three months.

LIQUIDITY AND CAPITAL RESOURCES

     We have financed our operations since inception  primarily  through private
placements of Common Stock. At September 30, 2000, our cash and cash equivalents
were  $6,651,490  compared to  $7,901,288  at June 30,  2000.  Our cash and cash
equivalents  principally  resulted from a $9.5 million equity private  placement
completed in March 2000. We believe our cash and cash equivalents are sufficient
to continue  operations for the next 18 months.  Funds are kept in U.S. Treasury
Bills or equivalent securities.

     The  process  of  developing   therapeutic  products  requires  significant
additional  research as well as preclinical  and clinical  testing  required for
regulatory approvals. These activities are expected to result in continuing cash
outflows and  operating  losses.  We will not receive  revenue from  therapeutic
products unless we complete clinical trials and successfully  commercialize such
products, as to which no success can be assured. We have on hand sufficient cash
to cover  our  current  levels of  operating  expenses  for the next 18  months.
However,  as we are  entering  clinical  investigations  of  products  and also,
through the  proposed  Cytomatrix  joint  venture,  expect to have an  increased
portfolio of opportunities, we are seeking additional equity funding in order to
advance  product  development.  To this end, we have entered into an  investment
banking  relationship  with  Gerard  Klauer  Mattison  ("GKM").  There can be no
assurance  that GKM  additional  funding  will be  available  when  needed or on
commercially  reasonable terms if at all, or that we will be able to develop any
viable product.

     We will  require  substantial  additional  funding in order to complete our
research and development  activities and sublicense any potential products.  Our
future capital  requirements will depend on many factors,  including  scientific
progress in research and development  programs,  the size and complexity of such
programs,  the scope and results of preclinical studies and clinical trials, our
ability to establish  and maintain  corporate  partnerships,  the time and costs
involved  in  obtaining  regulatory  approvals,  the costs  involved  in filing,
prosecuting  and enforcing  patent claims,  competing  technological  and market
developments,  the cost of


                                       5
<PAGE>


manufacturing preclinical and clinical material and other factors not within our
control. We retained GKM as our investment banker regarding additional financing
required to develop our products.  There can be no assurance that the additional
financing necessary to meet our short and long-term capital requirements will be
available on acceptable terms or at all.

     Insufficient funds may require us to delay, scale back or eliminate some or
all of our  research and  development  programs,  to lose rights under  existing
licenses  or to  relinquish  greater or all rights to product  candidates  at an
earlier stage of development or on less favorable  terms than we would otherwise
choose or may  adversely  affect our ability to operate as a going  concern.  If
additional funds are raised by issuing equity securities,  substantial  dilution
to existing stockholders may result.


                           PART II - OTHER INFORMATION


Item 2. Changes in Securities.

     In September 2000, as part of a termination agreement,  the Company granted
to a former  consultant  an option to purchase  15,000  shares of the  Company's
Common  Stock at an  exercise  price of $4.00 per share,  which was equal to the
fair market value at the date of the grant. The option vested immediately and is
exercisable until September 10, 2002.

     In September  2000, the Company issued 30,000 shares of its Common Stock to
Thomas   Jefferson   University  and  65,000  shares  of  its  Common  Stock  to
Philadelphia Health and Education Corporation d/b/a MCP Hahnemann University, in
each case as payment for license fees pursuant to certain license agreements. In
September  2000,  the Company also issued an  aggregate of 22,000  shares of its
Common Stock to two  consultants for services  rendered.  All of these issuances
were made in reliance on the  exemption  from  registration  provided by Section
4(2) of the Securities Act of 1933, as amended.

Item 5. Other Information.

     On November 3, 2000,  the  Company  completed  the sale of the stock of its
wholly-owned  diagnostic  subsidiary,  Sierra  Diagnostics,  Inc., to a group of
private  investors and management of Sierra in exchange for a promissory note in
the principal amount of $1,394,000 secured by certain Sierra patent rights and a
six percent royalty on future sales of Sierra's  current  products.  The Company
will file a report on Form 8-K reporting this sale.

Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits


                                       6
<PAGE>

         The following exhibits are filed with this report:
                                                                          Page
                                                                          ----

         4.  Stock Option Agreement with Bonni Dutcher, dated
             September 11, 2000, to purchase 15,000 shares of the
             Company's Common Stock at a price of $4.00 per share.          9

         27. Financial Data Schedule                                       21


                                       7
<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.

Dated: November 14, 2000            SELECT THERAPEUTICS, INC.

                                    By: /s/ Robert Bender
                                       -----------------------------
                                       Name: Robert Bender
                                       Title: Chairman of the Board


                                        8