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 December 31, 1999

                                       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 ___  No _X_

The aggregate  number of shares  outstanding of the Issuer's  Common Stock,  its
sole class of common equity, was 6,101,358 as of February 3, 2000.

Transitional Small Business Issuer Disclosure Format: Yes ___  No _X_

                    Page 1 of 15; Exhibit Index is on Page 13


<PAGE>


SELECT THERAPEUTICS INC.
(A DEVELOPMENT STAGE ENTERPRISE)

Consolidated Balance Sheets
(Stated in U.S. dollars)
(Unaudited)

<TABLE>
<CAPTION>
==================================================================================
                                                        December 31,    June 30,
                                                           1999           1999
                                                                       (Audited)
----------------------------------------------------------------------------------
<S>                                                     <C>            <C>
Assets

Cash and cash equivalents                               $    66,921    $   120,881
Restricted cash                                             304,200         72,000
Accounts receivable                                            --            7,380
Inventory                                                    33,893         32,130
Prepaid expenses and other assets                            18,380         21,740
Property, plant and equipment                               118,584        104,547
Intangible assets                                           770,706        900,581

----------------------------------------------------------------------------------
                                                        $ 1,312,684    $ 1,259,259
==================================================================================

Liabilities and Shareholders' Equity

Liabilities:
     Accounts payable                                   $   109,914    $    43,309
     Accrued liabilities                                    687,683        655,798
----------------------------------------------------------------------------------
                                                            797,597        699,107

Shareholders' equity:
     Capital stock:
         Authorized:
              1,000,000 preferred shares
              10,000,000 common shares,
                $0.001 par value
         Issued:
              6,668,358 common shares
                (June 30, 1999 - 5,634,094)                   6,668          5,634
     Contributed surplus                                  6,211,636      5,140,120
     Deficit accumulated during the development stage    (5,703,217)    (4,585,602)
----------------------------------------------------------------------------------
                                                            515,087        560,152

----------------------------------------------------------------------------------
                                                        $ 1,312,684    $ 1,259,259
==================================================================================
</TABLE>


See accompanying notes to consolidated financial statements.


                                       2
<PAGE>


SELECT THERAPEUTICS INC.
(A DEVELOPMENT STAGE ENTERPRISE)

Consolidated Statements of Operations
(Stated in U.S. dollars)

(Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                   Six months ended                        Three months ended
                                                                      December 31,                            December 31,
------------------------------------------------------------------------------------------------------------------------------------
                                                                1999               1998                1999                 1998
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>                 <C>                 <C>                 <C>
Revenue                                                     $    93,125         $        --         $        --         $        --
Cost of revenue                                                  13,711                  --                  --                  --
------------------------------------------------------------------------------------------------------------------------------------
                                                                 79,414                  --                  --                  --

Interest income                                                     516              26,741                  10              11,833

Research and development                                        331,624             301,792             209,955              73,754
Selling, general and administration                             716,130             567,494             300,310             251,152
Depreciation                                                     19,916               2,612               9,958               2,612
Amortization                                                    129,875              43,292              64,938              43,292
------------------------------------------------------------------------------------------------------------------------------------
                                                              1,197,545             915,190             585,161             370,810

------------------------------------------------------------------------------------------------------------------------------------
Loss for the period                                         $(1,117,615)        $  (888,449)        $  (585,151)        $  (358,977)
====================================================================================================================================
Loss per share                                              $     (0.18)        $     (0.17)        $     (0.10)        $     (0.07)

Weighted average number of shares                             6,078,546           5,105,649           6,078,546           5,105,649

====================================================================================================================================
</TABLE>


Consolidated Statements of Changes in Shareholders' Equity
(Stated in U.S. dollars)

Six months ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                       Deficit
                                                                                                     accumulated
                                                                                                      during the
                                                       Common shares               Contributed       development
                                                   Shares           Amount           surplus            stage              Total
------------------------------------------------------------------------------------------------------------------------------------

<S>                                              <C>             <C>               <C>               <C>                <C>
Balance, June 30, 1998                           4,981,313       $     4,981       $ 3,176,046       $(2,118,274)       $ 1,062,753

Issue of common shares                             652,781               653         1,964,074                --          1,964,727

Loss for the period                                     --                --                --        (2,467,328)        (2,467,328)
------------------------------------------------------------------------------------------------------------------------------------

Balance, June 30, 1999                           5,634,094             5,634         5,140,120        (4,585,602)           560,152

Issue of common shares                           1,034,264             1,034         1,071,516                --          1,072,550

Loss for the period                                     --                --                --        (1,117,615)        (1,117,615)

------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 1999                       6,668,358       $     6,668       $ 6,211,636       $(5,703,217)       $   515,087
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


See accompanying notes to consolidated financial statements.


                                       3
<PAGE>


SELECT THERAPEUTICS INC.
(A DEVELOPMENT STAGE ENTERPRISE)

Consolidated Statements of Cash Flows
(Stated in U.S. dollars)

Six months ended December 31, 1999 and 1998
(Unaudited)

<TABLE>
<CAPTION>
================================================================================================
                                                              1999                     1998
------------------------------------------------------------------------------------------------
<S>                                                       <C>                       <C>
Cash provided by (used in):

Operating activities:
     Loss for the period                                  $(1,117,615)              $  (888,449)
     Items not involving cash:
         Depreciation                                          19,916                     2,612
         Amortization                                         129,875                    43,292
         Issue of common shares for services                   90,000                        --
     Changes in non-cash operating working capital:
         Accounts receivable                                    7,380                   100,000
         Inventory                                             (1,763)                       22
         Prepaid expenses and other assets                      3,360                    27,178
         Accounts payable                                      66,605                  (164,894)
         Accrued liabilities                                   31,885                  (109,510)
------------------------------------------------------------------------------------------------
                                                             (770,357)                 (989,749)

Financing activities:
     Repayment of loans due to the former
       shareholders of Sierra Diagnostics Inc.                     --                  (285,999)
     Proceeds from issuance of common shares                  982,550                        --
     Restricted cash                                         (232,200)                       --
------------------------------------------------------------------------------------------------
                                                              750,350                  (285,999)

Investing activities:
     Additions to property, plant and equipment               (33,953)                   (5,640)
------------------------------------------------------------------------------------------------

Decrease in cash                                              (53,960)               (1,281,388)

Cash and cash equivalents, beginning of period                120,881                 2,070,705

------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period                  $    66,921               $   789,317
================================================================================================

Supplementary disclosure:
     Non-cash financing and investing activities:
         Issue of common shares for services              $    90,000               $        --

================================================================================================
</TABLE>


See accompanying notes to consolidated financial statements.




                                       4
<PAGE>


SELECT THERAPEUTICS INC.
(A DEVELOPMENT STAGE ENTERPRISE)

Notes to Consolidated Financial Statements
(Stated in U.S. dollars)

Six months ended December 31, 1999 and 1998
(Unaudited)

================================================================================

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,  1999  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, 1999  audited  consolidated  financial  statements  and notes  thereto.  The
Company's  results of operations  for the first two fiscal  quarters of 1999 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.

Capital stock

During  the six  months  ended  December  31,  1999 the  company  completed  the
following capital stock transactions:

(i)       36,000  common  shares were issued for  $90,000 as  consideration  for
          professional services;

(ii)      In August 1999,  the Board of Directors  approved the reduction of the
          April 1998 private offering common share price from $3.00 per share to
          $2.00 per share and authorized  the issuance of an additional  381,264
          common shares to the subscribers of the April 1998 private offering;

(iii)     50,000  common  shares were issued for gross cash proceeds of $125,000
          in July 1999;

(iv)      151,000 common shares and 302,000 redeemable  warrants were issued for
          gross cash  proceeds of  $188,750  which  related to the October  1999
          private placement; and

(i)       416,000 common shares and 416,000 redeemable  warrants were issued for
          gross cash  proceeds of $748,000  which  related to the November  1999
          private placement.

Share issue  costs  incurred in the six months  ended  December  31, 1999 in the
amount of $80,000 (1999 - $Nil) have been netted against contributed surplus.


                                       5
<PAGE>


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

FORWARD-LOOKING STATEMENTS

THIS REPORT,  INCLUDING WITHOUT LIMITATION,  ITEM 2, MANAGEMENT'S DISCUSSION AND
ANALYSIS OR PLAN OF  OPERATION,  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 INABILITY 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

     The Company is a  development  stage  biopharmaceutical  company  formed to
acquire  and  develop  rights  to  selected  early-stage  compounds  which  have
potential  use as  therapeutics  or  diagnostics.  The Company is  developing  a
portfolio of proprietary  product  opportunities  and is  aggressively  pursuing
patents.  In addition  to licensed  patents,  the Company has  agreements  which
provide  for  options  on  related   inventions  arising  from  sponsored  work.
Management  believes  that the  Company  has been  able to  identify  and  build
protection for a significant base for development of unique  products.  However,
competition  in the areas of the  Company's  interests is intense,  and both the
scientific  and  commercial   environments   change  rapidly.   By  focusing  on
intellectual  property development and using external  contractors,  the Company
hopes to be able to  maintain  the  required  flexibility  to adapt to  changing
circumstances.  The Company's key resources include qualified subcontractors and
a strong network of institutional  investigators,  and the Company believes that
it can move rapidly into clinical  investigations  and  development  of products
based on its intellectual property given adequate funding, which the Company


                                       6
<PAGE>


does not now possess.  The funding  required for clinical  trials  significantly
exceeds the  magnitude of funds raised by the Company to date,  and there can be
no assurance that such funding will be available on acceptable terms if at all.

     Since its inception (December 6, 1996),  substantially all of the Company's
resources  have been  dedicated  to  research  and  development  and  technology
acquisition and management.  To date, the Company has not generated  significant
product revenues, and sales of Gonostat, launched in January 1999, and potential
sales of other  diagnostic  products  are not  expected to  generate  sufficient
revenues to cover the Company's operating costs during the next three years. The
Company will not receive revenue from sales of its  therapeutic  products unless
it completes clinical trials and successfully commercializes or arranges for the
commercialization of one or more of its products,  as to the success of which no
assurance  can be given.  The process of developing  the  Company's  therapeutic
products  will  require   significant   additional   research  and  development,
preclinical testing and clinical trials, as well as regulatory approvals.  These
activities, together with the Company's general and administrative expenses, are
expected to result in operating losses for at least three more years.

     The  continuation  of the Company as a going  concern is  dependent  on its
receipt of additional  equity  financing and on the  development of economically
viable products.  The Company has incurred losses of $2,442,328,  $1,919,240 and
$199,034 in fiscal 1999, 1998 and 1997, respectively,  and negative cash flow is
expected to continue  for the Company for at least the next three  years.  There
can be no assurance that any additional funding will be available to the Company
or that the Company will be able to develop an economically viable product.

     The  Company  is subject to risks  common to  biopharmaceutical  companies,
including  risks inherent in its research and  development  efforts and clinical
trials,   reliance  on  collaborative   partners,   enforcement  of  patent  and
proprietary  rights,  the need for future  capital,  potential  competition  and
uncertainty of regulatory approval. In order for a product to be commercialized,
it  will  be  necessary  for  the  Company  and  its  collaborators  to  conduct
preclinical  tests and clinical trials,  demonstrate  efficacy and safety of the
Company's  product  candidates,  obtain  regulatory  clearances  and enter  into
manufacturing,  distribution  and  marketing  arrangements  either  directly  or
through sublicensees. There can be


                                       7
<PAGE>


no  assurance  that the Company  will  generate  revenues or achieve and sustain
profitability in the future.

     During the quarter which ended Dec 31, 1999, management's efforts continued
to be directed to obtaining bridge funds and  repositioning the Company in order
to proceed with  significant  financing  and product  development  efforts.  The
Company  filed with the  Securities  and Exchange  Commission  its  registration
statement on Form 10-SB, and on November 16, 1999, upon the effectiveness of the
Form 10, the Company became subject to the applicable reporting  requirements of
the  Securities  Exchange Act of 1934. In October 1999,  Robert C. Galler joined
the Board of Directors.  Mr. Galler has  extensive  experience in  biotechnology
financing and he has been elected Vice President, Corporate Development.

In  December  1999,  the  Company  signed a  placement  agency  agreement  for a
significant private placement which is planned for the first quarter of calendar
2000. If successful,  this placement will provide an adequate operating base for
the  Company to move  forward in its  clinical  programs  which have been put on
'hold' pending availability of funds for their support.

Operational Review

During the quarter  ended  December  31st,  the Company was able to maintain and
expand its research  collaborations and strengthen its portfolio of intellectual
property.  Academic  research on applications of Verotoxin  ("VT")  continued in
collaborating   institutions;   however,   due   to  the   significant   funding
requirements, production of clinically qualified materials was not initiated and
all  clinically  oriented  programs  were  halted  for both  purging  and direct
applications  of the  toxin.  Both of these  programs  continue  to be viewed as
promising,  and management  believes that with appropriate funding both can move
forward rapidly since  institutional  collaborations  are in place with clinical
investigators.  A basic patent on these uses of verotoxin (US patent  5,968,894)
issued in November 1999.

The  application of VT to present  antigens to dendritic cells continues to be a
promising  approach to development of therapeutic  vaccines for cancer and other
diseases which circumvent the immune system's surveillance. Research carried out
under the Company's  option  agreement  with the Institut  Curie has resulted in
very  promising  findings.  On  December  2, 1999,  the  Company  announced  the
extension of the option agreement and that a plan for clinical


                                       8
<PAGE>


investigation  of the technology is being  developed in  collaboration  with Dr.
Evan Hersh at the Arizona Cancer Center. As with  chemotherapeutic  applications
of VT,  significantly  increased  levels  of  expenditure  will be  required  as
investigations  move  from  the  research  laboratory  setting  to the  clinical
setting.  These expenses include but are not limited to development of materials
and formulations which are compliant with regulatory  requirements and the costs
of patient recruitment and monitoring in trial settings.

Both the  purging  program  and the  dendritic  cell  program  involve  ex- vivo
therapies  (i.e.,  treatments are carried out on patient tissues which have been
removed from the patient). A common characteristic of ex-vivo therapies is that,
relative to systemic  administration,  they are less costly to investigate.  The
Company's focus is on identification of opportunities  which combine low cost of
development  with a strong  proprietary  position and potentially  short time to
market.  While there can be no assurance that viable  products will result,  the
Company's programs have the potential to yield therapeutic  products within time
and financial constraints which offer attractive  risk-return  opportunities for
development.

In November 1998, the Company purchased Sierra Diagnostics Inc., a developer and
manufacturer of diagnostic products.  The purchase and subsequent development of
Sierra was motivated by three factors: a need for in-house capability to develop
diagnostic tests required for therapeutic  programs such as ex-vivo  purging;  a
requirement for a facility to develop and manufacture the Company's patented HIV
diagnostic;  and the  desire to develop  earnings  from  operations  in order to
offset some development costs.

Sierra has a base of  proprietary  technology  relating  to assays for  sexually
transmitted  diseases and handling of clinical samples. It launched two products
in 1999, both of which have significant  revenue  potential.  The first product,
Gonostat(TM),  is a clinical  laboratory  test for gonorrhea which offers unique
advantages in cost and performance  relative to other technologies  available in
the market.  Although the market is highly competitive,  Gonostat is expected to
capture a significant niche and become a profitable product. There can, however,
be no assurance of such  performance.  The second  product  brought to market by
Sierra is a sample  preservation  and handling product which eliminates the need
for  refrigeration of clinical  samples  intended for molecular  (DNA/RNA based)
assays.  This product fits into the general  practice of clinical testing and is
expected to find wide application due to


                                       9
<PAGE>


elimination  of  sample  degradation  and thus the need for  repeat  testing  or
sampling with attendant costs and  inconvenience.  The technology is proprietary
and believed to be patentable.  Sales of products  based on this  technology and
efforts  to  license  the  technology  to third  parties  are  beginning  but no
significant revenues have been generated.

At the end of October  1999,  Sierra  entered into an agreement for sales of its
products to Genelabs of Nairobi and believes  that  operating  results for 2,000
will significantly improve.  SELECT has engaged a sales and marketing group on a
consulting basis to assist in developing the market for both diagnostic products
and  to  evaluate  other  diagnostic   opportunities  for  the  Company.  Sierra
Diagnostics   has  operated   within  its  expense   projections  but  sales  of
Gonostat(TM),  while contributing on a gross margin basis, lagged  expectations.
This resulted in a higher than anticipated cash requirement for Sierra. To date,
the  operations  of Sierra have  generated  losses and there can be no assurance
that profitable  operations  will be achieved or that, if achieved,  they can be
maintained.

Financial Review

Results of Operations

For the quarter  ended  December 31st 1999,  the Company  incurred a net loss of
$585,151  compared  with a loss of $358,977  for the quarter  ended  December 31
1998. For the six months ended December 31 1999 the Company  incurred  losses of
$1,117,615 versus $888,198 for the corresponding period in 1998. The Company has
been  unprofitable  since  its  formation  and  has an  accumulated  deficit  of
$5,703,217  through  December 31, 1999.  The net loss is a result of the routine
operations of the Company in its development stage. We expect losses to continue
and increase  for the next three years as the Company  pursues  development  and
commercialization of its intellectual property resources.

Revenues  of  $93,125  during  the six  months  ended  December  31st  1999 were
principally from the sale of Gonostat(TM);  there was no interest income for the
quarter.  During the corresponding  quarter in 1998, there were no revenues from
sales and interest income was $11,833.  The Company's sole operating revenues to
date  arise  from  sales  of  diagnostic   products  through  its  wholly  owned
subsidiary.


                                       10
<PAGE>


Operating  expenses for the six months ended  December 31, 1999 were  $1,117,615
compared  to  $888,449  in the same  period of 1998.  Expenditures  required  to
advance the Company's development projects,  notably initiation of manufacturing
of GMP qualified materials, were deferred during the period.

All research and development activities of the Company are expensed as incurred.
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 the Company  anticipates  that personnel  costs will
increase if adequate funding is obtained. The percentage of expenditures related
to  personnel  and  other  operations  is  expected  to  decline  as  increasing
commitments are made to external manufacturing and clinical studies.

Patent costs are expensed due to the  uncertainties  involved in realizing value
from specific patents.


There were no significant capital expenditures during the quarter ended December
31, 1999.

LIQUIDITY AND CAPITAL RESOURCES

The Company has  financed  its  operations  since  inception  primarily  through
private  placements of its Common Stock. As of December 31, 1999 the Company had
received  approximately  $860,000  in net  proceeds  from  the  sale  of  equity
securities  during the quarter just ended.  Events subsequent to the period have
continued to improve the prospects for the Company and  management is optimistic
that adequate  funding for  continuation  of operations  and  development of the
Company's technology assets can be obtained.

At December 31, 1999,  the Company's  cash position  increased  from $44,980 (at
September  30, 1999) to $66,921,  with $304,200 in  restricted  cash  (uncleared
funds from shareholder subscriptions from a private placement which had exceeded
the minimum  closing  requirement but which was ongoing).  Accounts  payable and
accrued liabilities decreased from $924,962 (as September 30, 1999) to $797,597.
However,  sales of Sierra  Diagnostic's  products to date are not  sufficient to
cover operating costs, and Sierra's ongoing  operations  require compliance with
FDA requirements and that a base level of manufacturing be maintained.


                                       11
<PAGE>

The Company's limited financial  resources have forced it to curtail some of its
planned  operations  through  1999,  and the Company  will  require  substantial
additional funding in order to complete its research and development  activities
and sublicense any potential products.

The Company's future capital requirements will depend on many factors, including
scientific  progress in its  research  and  development  programs,  the size and
complexity of such programs,  the scope and results of  preclinical  studies and
clinical trials,  the ability of the Company 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 manufacturing preclinical and
clinical material and other factors not within the Company's control.  There can
be no assurance  that the additional  financing  necessary to meet the Company's
short and long-term  capital  requirements will be available on acceptable terms
or at all.

Insufficient  funds may require the  Company to delay,  scale back or  eliminate
some or all of its  research  or  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 the Company
would otherwise choose or may adversely affect the Company's  ability to operate
as a going concern. If additional funds are raised by issuing equity securities,
substantial dilution to existing stockholders may result.

The Company currently has funds sufficient to continue  operations for less than
three  months and does not have funds  required to move  current  projects  into
clinical  investigations.  Management has been in  discussions  with a number of
parties  regarding  additional  financing  required to maintain  and develop the
Company's  position and while it is optimistic  that such funds may be available
there is no assurance that this will be the case.

Year 2000

Year 2000 (Y2K) issues arise because many  computer  systems use two rather than
four digits to identify the year,  thus creating  ambiguities  which may produce
errors  before,  on or after  January 1, 2000.  If not  addressed , errors could
impact all aspects of operations  including  financial  reporting,  clinical and
production


                                       12
<PAGE>


records  or  controls  and  communications.  Errors  may  range  from  minor  to
significant systems failures and could be imported from suppliers' systems.

We have assessed,  taken corrective actions in light of, and continue to monitor
our  vulnerability  to Y2K  issues  in all  aspects  of our  business  including
information and computer systems and critical  suppliers and service  providers.
To the best of our knowledge,  systems and equipment  critical to our operations
are Y2K compliant. However, it is not possible to be certain that the systems of
our suppliers,  service  providers or other third parties upon which we rely are
compliant or that they will be unaffected by problems in their own supply chain.
Based on the nature of our  operations  and ongoing  assessments we believe that
Select has little direct exposure to Y2K issues.

We estimate  that our direct  costs of  addressing  the Y2K issues are less than
$5,000,  which  are  being  expensed  in  the  normal  course  of  our  business
operations.

ITEM 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

     The following exhibit is filed with this report:                       Page
                                                                            ----
     27.  Financial Data Schedule                                             15



                                       13
<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: February 4, 2000                         SELECT THERAPEUTICS, INC.



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



                                       14