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:  October 31, 1997
                                      ------------------
 
      [ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
            THE EXCHANGE ACT


      Commission File number: 0-19879
                              -------

                         BioSpecifics Technologies Corp.
                         -------------------------------
        (Exact name of Small Business Issuer as Specified in Its Charter)

           Delaware                                      11-3054851
           --------                                      ----------
   (State of Incorporation)                      (IRS Employer I.D. Number)

                                  35 Wilbur St.
                               Lynbrook, NY 11563
                               ------------------
                    (Address of principal executive offices)

                                 (516) 593-7000
                                 --------------
                (Issuer's telephone number, including area code)

Check  whether the issuer:  (1) has filed all reports  required by Section 13 or
15(d) of the Securities  Exchange Act of 1934 during the preceding 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

Yes  x    No
    ---      --- 

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

      State the number of shares  outstanding of each of the issuer's classes of
common equity,  as of the latest  practicable  date:  4,886,096 shares of Common
Stock, $0.001 par value as of December 1, 1997.



<PAGE>



                                      INDEX
                                      -----

                                                                           Page
                                                                           ----

PART I - FINANCIAL INFORMATION                                               3
                                                                           
                                                                           
Item 1.  Financial Statements                                                3
                                                                           
                                                                           
Consolidated Financial Statements:                                         
                                                                           
                                                                           
      Balance Sheets as of October 31, 1997 (unaudited) and                  3
      January 31, 1997                                                     
                                                                           
                                                                           
      Statements  of Income  for the Three and Nine  Months  Ended         
      October 31, 1997 and 1996 (unaudited)                                  4
                                                                           
                                                                           
      Statements  of Cash Flows for the Nine Months Ended  October         
      31, 1997 and 1996 (unaudited)                                          5
                                                                           
                                                                           
      Notes to Consolidated Interim Financial Statements                     6
      (unaudited)                                                          
                                                                           
                                                                           
Item  2.   Management's   Discussion  and  Analysis  of  Financial         
Condition and Results of Operations                                          8
                                                                           
SIGNATURES                                                                  11
                                         

















                                  
                                       2

<PAGE>                                                               
                         PART I. FINANCIAL INFORMATION
                          Item 1. Financial Statements


BioSpecifics Technologies Corp. and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>

                                                           (Unaudited)
                                                           October 31,     January 31,
ASSETS                                                            1997            1997
                                                          ------------    ------------
<S>                                                       <C>             <C>         
Cash and cash equivalents                                 $  2,564,738    $  3,793,582
Marketable securities                                        2,720,391       1,812,974
Accounts receivable                                          1,573,442         900,956
Inventory                                                    1,545,926       1,339,081
Prepaid expenses & other current assets                        365,554         403,571
                                                          ............    ............
   Total current assets                                      8,770,051       8,250,164

Property,  plant, and equipment - net                          975,798         912,949
Other assets                                                   663,673         743,183
                                                          ............    ............

TOTAL ASSETS                                              $ 10,409,522    $  9,906,296
                                                          ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses                     $    734,172    $    540,899
Notes payable to related parties                                11,885          11,510
Income taxes payable                                            25,510          10,350
Deferred revenue                                               175,000         175,000
                                                          ............    ............
     Total current liabilities                                 946,567         737,759

Minority interest in subsidiaries                              201,158         186,043

STOCKHOLDERS' EQUITY
Series A Preferred stock, $.50 par value; 700,000
  shares authorized; none outstanding                             --              --
Common stock, $.001 par value; 10,000,000 shares
  authorized; 4,886,096 shares issued and outstanding
  at October 31, 1997 and 4,883,396 at January 31, 1997          4,886           4,883
Additional paid-in capital                                   3,602,004       3,586,145
Retained earnings                                            6,169,159       5,591,591
Cumulative translation adjustment                              (17,910)        (17,615)
                                                          ............    ............
                                                             9,758,139       9,165,004
Less: Treasury stock - 70,800 shares at cost at
October 31, 1997 and 10,000 shares at January 31, 1997        (496,342)       (182,510)
                                                          ............    ............
    Stockholders' equity - net                               9,261,797       8,982,494

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $ 10,409,522    $  9,906,296
                                                          ============    ============

</TABLE>






See accompanying notes to consolidated financial statements

                                       3

<PAGE>

Biospecifics Technologies Corp., and Subsidiaries
Consolidated Statements of Income
<TABLE>
<CAPTION>
                                                                (Unaudited)                  (Unaudited)
                                                            Three months ended            Nine months ended
                                                                October 31,                   October 
                                                            1997           1996           1997           1996
                                                   -----------------------------------------------------------
<S>                                                  <C>            <C>            <C>            <C>        
Revenues:
   Net sales                                         $   948,094    $ 1,098,056    $ 2,513,520    $ 3,098,717
   Royalties                                             596,316        333,622      1,734,435      1,530,763
   License fees                                             --             --             --           20,000
                                                   ...........................................................
Total Revenues                                         1,544,410      1,431,678      4,247,955      4,649,480
                                                   -----------------------------------------------------------

Costs & Expenses:
   Cost of sales                                         445,603        444,386      1,095,640      1,296,056
   Selling, general and administrative                   393,598        423,577      1,168,885      1,147,126
   Research and development                              501,734        322,137      1,417,243      1,084,724
                                                   ...........................................................
Total Costs and Expenses                               1,340,935      1,190,100      3,681,768      3,527,906
                                                   ...........................................................

Income from operations                                   203,475        241,578        566,187      1,121,574

Other income (expense) - net
  Investment & other income                              107,551        118,998        271,278        190,502
  Interest expense                                        (1,493)          (892)        (2,793)        (4,178)
                                                   ...........................................................
Total other income - net                                 106,058        118,106        268,485        186,324

Income before provision for income taxes                 309,533        359,684        834,672      1,307,898
   Provision for income taxes                           (102,770)      (110,140)      (241,990)      (466,350)
                                                   ...........................................................
Income before minority interest                          206,763        249,544        592,682        841,548
   Minority interest in net income of subsidiaries         4,680          3,125         15,115         22,250
                                                   ...........................................................
Net income                                           $   202,083    $   246,419    $   577,567    $   819,298
                                                   ===========================================================


NET INCOME PER COMMON SHARE                          $      0.04    $      0.05    $      0.12    $      0.17
                                                   ===========================================================


Weighted average number of shares used in
computing net income per share:                        4,895,000      4,930,000      4,906,000      4,930,000
                                                   ===========================================================

</TABLE>






















See accompanying notes to consolidated
financial statements

                                       4

<PAGE>



BioSpecifics Technologies Corp. and Subsidiaries 
Consolidated Statements of Cash Flows 
<TABLE>
<CAPTION>
                                                                
                                                                          (Unaudited)
                                                                      Nine months ended 
                                                                         October 31,              
CASH FLOWS FROM OPERATING ACTIVITIES:                                 1997           1996
                                                              ----------------------------
<S>                                                            <C>            <C>        
  Net income                                                   $   577,567    $   819,298
  Adjustments to reconcile net income
  to cash provided by/(used by) operating activities:
    depreciation                                                   140,575        142,907
    (gain) loss on marketable securities - net                     (44,447)        12,623
    minority interest in income of subsidiaries                     15,115         22,250
    issuance of stock options                                        4,500         30,000
  Changes in operating assets & liabilities:
    (increase) decrease in accounts receivable                    (672,486)       119,331
    proceeds from sales of marketable securities                   267,361        780,413
    purchases of marketable securities                          (1,130,331)      (455,579)
    (increase) decrease in inventory                              (206,845)        36,796
    decrease in prepaid and other current assets                    38,017         76,803
    decrease in other assets                                        79,510         51,536
    (increase) decrease in accounts payable & accruals             193,273       (534,177)
    increase in deferred revenues                                     --           45,000
    increase (decrease) in cumulative translation adjustment          (295)          --
    increase in income taxes payable                                15,160         65,350
                                                              ............................
      Net cash provided by (used in) operating activities         (723,326)     1,212,551
                                                              ----------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Expenditures for plant, property and equipment                  (203,421)       (32,328)
                                                              ............................
      Net cash used in investing activities                       (203,421)       (32,328)
                                                              ----------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from redemption of long term securities                    --             --
  Proceeds from notes with related parties                             375            705
  Treasury stock purchases                                        (313,832)
  Exercise of stock options                                         11,360           --
                                                              ............................
      Net cash (used) provided by financing activities            (302,097)           705
                                                              ----------------------------

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                (1,228,844)     1,180,928

  CASH AND EQUIVALENTS:
  Beginning of Period                                            3,793,582      2,288,316
                                                              ............................
  End of Period                                                $ 2,564,738    $ 3,469,244
                                                              ============================


SUPPLEMENTAL DISCLOSURE
  Cash paid during period for interest                         $     2,793    $     4,179
                                                              ============================
  Cash paid during period for income taxes                     $   152,820    $   378,000
                                                              ============================
</TABLE>


See accompanying notes to consolidated
financial statements

                                       5

<PAGE>


                BIOSPECIFICS TECHNOLOGIES CORP. AND SUBSIDIARIES
               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                                OCTOBER 31, 1997
                                   (UNAUDITED)

1.  DESCRIPTION   OF  BUSINESS  AND  BASIS  OF   PRESENTATION   -   BioSpecifics
Technologies  Corp.  (the  "Company")  serves as a holding  company  for Advance
Biofactures Corporation (ABC-New York), Advance Biofactures of Curacao, N.V. and
subsidiaries (ABC-Curacao),  and Biospecifics Pharma GmbH (Bio Pharma), Germany,
which was established in November 1995.

The Company, through its subsidiaries,  engages in the business of producing and
licensing  for sale by  others  a U.S.  Food  and  Drug  Administration  ("FDA")
approved enzyme named  collagenase  ABC, which is used  principally as a topical
debridement  treatment  for  dermal  ulcers;  and  researching,  developing  and
clinically  testing  additional   products  derived  from  collagenase  ABC  for
potential use as pharmaceuticals.

The Company  currently  derives most of its revenues through a license agreement
with a major US pharmaceutical  company,  Knoll Pharmaceutical  Company ("KPC").
Since February 1, 1996,  sales of collagenase ABC have been  principally to KPC,
which markets it as an ointment in the United States under its trademarked  name
"Collagenase Santyl(R)".  The license agreement with KPC expires in 2003. In the
event that KPC were to cancel the license agreement for cause, which the Company
believes is unlikely, the financial condition of the Company would be materially
adversely  impacted  unless the  Company  were to find  another  licensee in the
United States.

The  Company  has  undertaken  efforts to secure  licensees  outside  the United
States.  The Company has licensing  agreements with foreign  companies to market
collagenase,  either as a topical  product or an  injectable,  when permitted by
local   governmental   authorities.   The  Company  sells   Collagenase  ABC  to
pharmaceutical  companies  in Latin  America  and  India,  in  relatively  small
amounts.

2. INTERIM FINANCIAL STATEMENTS - In the opinion of management, the accompanying
consolidated  financial  statements  of  the  Company  reflect  all  adjustments
necessary to present fairly,  in all material  respects,  the Company's  balance
sheet as of October 31, 1997,  the  statements  of income for the three and nine
months ended  October 31, 1997 and 1996,  and  statements  of cash flows for the
three  months ended  October 31, 1997 and 1996.  The results of  operations  for
interim periods are not necessarily indicative of the results to be expected for
an entire fiscal year,  and the results for the current  interim  period are not
necessarily indicative of results to be expected in other interim periods. These
interim  financial  statements  should be read in conjunction with the Company's
Form 10-KSB for the fiscal year ended January 31, 1997.









                                       6

<PAGE>



3.  NET INCOME PER  COMMON  SHARE - Net income per common  share is based on net
income available to common  stockholders  divided by the weighted average number
of common shares and common stock equivalent  shares  outstanding,  if dilutive,
during the period of presentation.

In February 1997, the Financial  Accounting  Standards Board issued Statement of
Financial  Standards  No. 128  "Earnings  Per Share"  ("SFAS No.  128") which is
effective for financial  statements issued for periods ending after December 15,
1997.  SFAS No. 128 requires the  disclosure  of basic and diluted  earnings per
share.  For the periods ended October 31, 1997 and 1996, the amount  reported as
net income per common and common  equivalent  share is not materially  different
than that which  would have been  reported  for basic and diluted  earnings  per
share in accordance with SFAS No. 128.

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

RESULTS OF OPERATIONS
---------------------

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
--------------------------------------------------------------------------------

Information  provided by the Company or  statements  contained in this report or
made by its employees,  if not historical,  is forward looking information which
involve  uncertainties  and risk.  The Company  cautions  readers that important
factors may affect the Company's  actual results and could cause such results to
differ  materially from  forward-looking  statements made by or on behalf of the
Company.  Such  factors  include,  but  are  not  limited  to,  changing  market
conditions,   the  impact  of  competitive  products  and  pricing,  the  timely
development and approval by the FDA and foreign health  authorities of potential
products, market acceptance of the Company's potential products, and other risks
detailed  herein and in other filings the Company makes with the  Securities and
Exchange Commission.  Further, any forward looking statement or statements speak
only as of the  date  on  which  such  statements  were  made,  and the  Company
undertakes no obligation to update any forward  looking  statement or statements
to reflect  events or  circumstances  after the date on which such  statement or
statements were made.

The Company  incorporates by reference the Management's  Discussion and Analysis
of Financial  Condition and Results of  Operations  set forth in its Form 10-KSB
for the fiscal year ended January 31, 1997.










                                       7

<PAGE>


                  Three months ended October 31, 1997 and 1996
                  --------------------------------------------

NET SALES - Net sales for the three months ended  October 31, 1997 and 1996 were
$948,094 and $1,098,056  respectively,  representing a $149,962 or 14% decrease.
The decrease is due to the timing of sales of collagenase ABC to KPC, as well as
KPC's continual efforts to maintain as small an inventory as possible.

ROYALTIES - Royalties  for the three months ended October 31, 1997 and 1996 were
$569,316 and $333,622  respectively,  representing  a $262,694 or 79%  increase.
Besides a general  increase  in sales of  Collagenase  Santyl(R)  in fiscal 1998
versus 1997, Collagenase Santyl(R) sales had declined during last year's quarter
ended October 31, 1996 due, in turn,  to unusually  high  Collagenase  Santyl(R)
sales in the quarter prior to that,  ended July 31, 1996.  The Company  believes
that the  fluctuations  resulted  from  advance  buying  by KPC's  customers  in
anticipation  of a price increase in Collagenase  Santyl(R),  as reported to the
Company by KPC.

COST OF SALES - Cost of sales for the three  months  ended  October 31, 1997 and
1996 were  $445,603  and  $444,386  respectively,  representing  an  increase of
$1,219, due to higher depreciation costs and slight increases in salaries.

SELLING,  GENERAL  AND  ADMINISTRATIVE  - Selling,  general  and  administrative
("SG&A")  expenses  for the three  months  ended  October 31, 1997 and 1996 were
$393,598 and $423,577  respectively,  representing a $29,979 or 7% decrease. The
decrease was primarily due to lower professional fees incurred.

RESEARCH AND  DEVELOPMENT - Research and  development  ("R&D")  expenses for the
three  months  ended  October  31,  1997 and 1996  were  $501,734  and  $322,137
respectively,  representing  a  increase  of  $179,597  or 56%.  The  Company is
currently  sponsoring  Phase 2 clinical  trials of  injectable  collagenase  for
Dupuytren's and Peyronie's  diseases,  for which the FDA has granted Orphan Drug
status;  keloids,  and pre-clinical  research of other uses of collagenase.  The
Company is also sponsoring  clinical trials of its collagenase in Europe, but to
a lesser financial extent.

OTHER INCOME - NET - Other  income - net for the three months ended  October 31,
1997 and 1996 was $106,058 and  $118,106  respectively.  The decrease of $12,048
was due primarily to a slightly less favorable investment environment during the
more current period.

PROVISION FOR INCOME TAXES - The provision for income taxes for the three months
ended  October 31,  1997 and 1996 was  $102,770  and  $110,140  respectively,  a
decrease of $7,370.  The decrease was due to lower taxable profit in the current
period.  The  principal  reason for the  difference  between  the United  States
Federal statutory tax rate of 34% and the Company's effective tax rate is due to
a 2% income tax rate applicable to earnings of the Company's primary  production
facility in Curacao,  partially offset by the additional  provision required for
state income taxes where the Company's US subsidiary is domiciled.







                                       8

<PAGE>


                   Nine months ended October 31, 1997 and 1996
                   -------------------------------------------

NET SALES - Net sales for the nine months  ended  October 31, 1997 and 1996 were
$2,513,520 and $3,098,717 respectively, representing a $585,197 or 19% decrease.
The decrease is due to KPC's  continual  efforts to reduce and maintain as small
an inventory as possible.

ROYALTIES - Royalties  for the nine months ended  October 31, 1997 and 1996 were
$1,734,435 and $1,530,763 respectively, representing a $203,672 or 13% increase,
due to higher sales of Collagenase  Santyl(R) in the United States,  as reported
to the Company by KPC.

LICENSE  FEES - The Company  earned part of the advance  payment  from a product
distribution license agreement with a German  pharmaceutical  company during the
nine months ended October 31, 1996. There were no license fees earned during the
more current period.

COST OF SALES - Cost of sales for the nine  months  ended  October  31, 1997 and
1996 were  $1,095,640  and $1,296,056  respectively,  representing a decrease of
$200,416 or 15% due to lower net sales of collagenase ABC as described above.

SELLING,  GENERAL AND  ADMINISTRATIVE  - SG&A expenses for the nine months ended
October  31,  1997  and  1996  were  $1,168,885  and  $1,147,126   respectively,
representing  a $21,759 or 2%  increase.  The slight  increase was due to higher
professional fees and salaries incurred in the more recent nine months.

RESEARCH AND DEVELOPMENT - Research and development expenses for the nine months
ended October 31, 1997 and 1996 were  $1,417,243  and  $1,084,724  respectively,
representing an increase of $332,519 or 31%. The Company is currently developing
injectable  collagenase  treatments for two conditions for which FDA has granted
FDA Orphan Drug Status. During the current period, the Company completed Phase 1
and advanced to Phase 2 clinical  trials of Cordase(TM)  injectable  collagenase
for  Dupuytren's  disease.  The Company is also  sponsoring  a Phase 2 trial for
Peyronie's  disease,  Phase 1 trial for keloids,  and  pre-clinical  research of
other uses of collagenase. The Company is also sponsoring clinical trials of its
collagenase in Europe, but to a much lesser financial extent.

OTHER INCOME - net - Other  income - net for the nine months  ended  October 31,
1997 and 1996 was $268,485 and  $186,324  respectively.  The increase of $82,161
was due primarily to realized and unrealized gains on trading  securities in the
more  current  period,  due to a more  favorable  environment  for fixed  income
securities.












                                       9

<PAGE>



PROVISION  FOR INCOME TAXES - The provision for income taxes for the nine months
ended  October 31,  1997 and 1996 was  $241,990  and  $466,350  respectively,  a
decrease  of  $224,360.  The  decrease  was due to  lower  taxable  profit.  The
principal reason for the difference  between the United States Federal statutory
tax rate of 34% and the  Company's  effective tax rate is due to a 2% income tax
rate  applicable to earnings of the  Company's  primary  production  facility in
Curacao,  partially offset by the additional provision required for state income
taxes where the Company's US subsidiary is domiciled.


LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION
---------------------------------------------------------------

The Company's  primary source of working  capital is from operating  activities,
including  sales,  royalties,  and new license fees. As of October 31, 1997, the
Company had working  capital of  approximately  $8.0 million which includes cash
and cash equivalents and marketable securities of approximately $5.3 million.

As of October 31, 1997,  the Company's  cash balance  declined by  approximately
$1.2 million versus January 31, 1997. The principal uses of cash during the nine
months ended October 31, 1997 includes purchases of marketable  securities,  net
of  sales,   of   approximately   $863,000;   the  purchase  of  treasury  stock
approximating  $314,000;  and  expenditures of $203,000 for plant,  property and
equipment.  At October 31, 1997 the  Company  had no  material  commitments  for
capital expenditures.

Although  there can be no  assurance,  management  believes  that in view of the
Company's  working  capital  position and  anticipated  positive  cash flow from
operating activities, the Company has sufficient liquidity and capital resources
to meet its immediate  operating  needs.  The Company believes that cash on hand
and cash from  operations will be sufficient to meet the Company's cash needs on
an ongoing basis.






















                                       10

<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.


                                  BioSpecifics Technologies Corp.
                                         (The Registrant)



Date:  December 12, 1997
       ---------------- 


By: /s/Edwin H. Wegman
    ------------------
       Edwin H. Wegman
       Chairman and President




Date:  December 12, 1997



By: /s/Albert Horcher
    -----------------   
       Albert Horcher
       Treasurer, Principal Financial and
       Chief Accounting Officer


















                                       11