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: JULY 31, 2002
                                         -------------

         [ ]      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: 4,577,836 shares of Common
Stock, $0.001 par value as of September 1, 2002.

         Transitional Small Business Disclosure Format (check one):
Yes ___ No __X__

                                  Page 1 of 15

<PAGE>

                                      INDEX

                                                                            Page

PART I - FINANCIAL INFORMATION                                                 3


Item 1.  Financial Statements                                                  3


Consolidated Financial Statements:


         Balance Sheets as of July 31, 2002 (unaudited) and January 31, 2002   3


         Statements of Income for the Three and Six Months Ended
         July 31, 2002 and 2001 (unaudited)                                    4


         Statements of Cash Flows for the Six Months Ended
         July 31, 2002 and 2001 (unaudited)                                    5

         Notes to Consolidated Interim Financial Statements (unaudited)        6


Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                             8

Item 3.  Controls and Procedures                                              13

Part II - Other Information                                                   13


SIGNATURES                                                                    13

CERTIFICATIONS                                                                14

                                       2
<PAGE>

                          PART I. FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS

BioSpecifics Technologies Corp. and Subsidiaries
Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                (Unaudited)
                                                                  July 31,      January 31,
ASSETS                                                              2002            2002
                                                                -----------     -----------
<S>                                                             <C>             <C>
Cash and cash equivalents                                       $   619,618     $   693,215
Marketable securities                                                 3,026           3,026
Accounts receivable                                               1,462,777       2,606,412
Inventory, net                                                      505,306         784,164
Prepaid expenses and other current assets                            31,624          12,878
                                                                -----------     -----------
   TOTAL CURRENT ASSETS                                           2,622,351       4,099,695

Property, plant, and equipment - net                              4,759,545       5,063,313
Deferred tax assets                                                 164,536         164,536
                                                                -----------     -----------
                                                                $ 7,546,432     $ 9,327,544
                                                                ===========     ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and accrued expenses                           $ 1,540,680     $ 1,680,629
Notes payable to related parties                                     14,260          14,010
Deferred revenue                                                     45,000          45,000
                                                                -----------     -----------
     TOTAL CURRENT LIABILITIES                                    1,599,940       1,739,639

Long-term debt                                                      455,000         455,000

Minority interest in subsidiaries                                   193,378         238,678

Commitments and contingencies

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;
  4,939,216 shares issued at July 31, 2002 and
  4,912,216 issued  at January 31, 2002                               4,939           4,912
Additional paid-in capital                                        3,827,076       3,800,104
Retained earnings                                                 4,495,412       6,101,015
Accumulated other comprehensive income                               12,233          15,811
Treasury stock - 361,380 shares, at cost                         (1,911,237)     (1,911,237)
Notes receivable from chairman and other related party           (1,130,309)     (1,116,378)
                                                                -----------     -----------
    STOCKHOLDERS' EQUITY                                          5,298,114       6,894,227

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $ 7,546,432     $ 9,327,544
                                                                ===========     ===========
</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              Six months ended
                                                                     July 31,                       July 31,
                                                               2002           2001            2002           2001
                                                          -----------------------------------------------------------
<S>                                                       <C>             <C>             <C>             <C>
Revenues:
   Net sales                                              $ 1,051,607     $ 1,561,116     $ 1,393,501     $ 3,772,318
   Royalties                                                  472,222         597,728       1,032,350       1,178,998
                                                          -----------------------------------------------------------
                                                            1,523,829       2,158,844       2,425,851       4,951,316
                                                          -----------------------------------------------------------

Costs and Expenses:
   Cost of sales                                            1,114,635       1,223,604       1,883,511       3,123,092
   General and administrative                                 781,364         512,565       1,522,594         962,153
   Research and development                                   300,134         291,663         661,344         567,784
                                                          -----------------------------------------------------------
                                                            2,196,133       2,027,832       4,067,449       4,653,029
                                                          -----------------------------------------------------------

Income (loss) from operations                                (672,304)        131,012      (1,641,598)        298,287

Other income (expense)
  Investment and other income (loss)                           (4,015)          6,923          12,962          17,965
  Interest expense                                             (9,670)         (1,930)        (22,267)         (3,014)
                                                          -----------------------------------------------------------
                                                              (13,685)          4,993          (9,305)         14,951
                                                          -----------------------------------------------------------

Income (loss) before taxes and minority interest             (685,989)        136,005      (1,650,903)        313,238
Income tax benefit                                                  0               0               0               0
                                                          -----------------------------------------------------------
Income (loss) before minority interest                       (685,989)        136,005      (1,650,903)        313,238
Minority interest in net income (loss) of subsidiaries         18,000          (6,000)         45,300          (8,500)
                                                          -----------------------------------------------------------
Net income (loss)                                         $  (667,989)    $   130,005     $(1,605,603)    $   304,738
                                                          ===========================================================

Basic net income (loss) per common share                  $     (0.15)    $      0.03     $     (0.35)    $      0.07
                                                          ===========================================================

Weighted-average common shares outstanding                  4,555,058       4,534,373       4,552,947       4,532,095
                                                          ===========================================================

Diluted net income (loss) per common share                $     (0.15)    $      0.03     $     (0.35)    $      0.07
                                                          ===========================================================
Weighted-average common and dilutive
potential common shares outstanding                         4,555,058       4,644,808       4,552,947       4,601,244
                                                          ===========================================================
</TABLE>

See accompanying notes to consolidated financial statements

                                       4

<PAGE>

BioSpecifics Technologies Corp. and Subsidiaries
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                      (Unaudited)
                                                                    Six months ended
                                                                       July 31,
                                                                   2002           2001
                                                               -----------     -----------
<S>                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                            $(1,605,603)    $   304,738
  Adjustments to reconcile net income (loss)
  to net cash provided (used) by operating activities:
    Depreciation                                                   325,795         194,500
    Options issued for services                                          0          30,000
    (Gain) loss on marketable securities - net                           0           1,320
    Minority interest in income of subsidiaries                    (45,300)          8,500
  CHANGES IN OPERATING ASSETS & LIABILITIES:

    Accounts receivable                                          1,143,635         (37,380)
    Marketable securities - net                                          0         109,841
    Inventory                                                      278,858         774,626
    Prepaid and other current assets                               (18,746)          3,173
    Accounts payable & accruals                                   (139,950)        (60,865)
                                                               -----------     -----------
      Net cash provided (used)  by operating activities            (61,311)      1,328,453
                                                               -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Decrease (increase) in notes receivable from chairman and
  other related party - net                                        (13,931)        167,566
  Expenditures for plant, property and equipment                   (22,027)       (545,718)
                                                               -----------     -----------
      Net cash used in investing activities                        (35,958)       (378,152)
                                                               -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increases in notes payable to related parties                        250             250
  Exercises of stock options                                        27,000           6,750
                                                               -----------     -----------
      Net cash provided by financing activities                     27,250           7,000
                                                               -----------     -----------

Effect of exchange rates on cash and cash equivalents               (3,578)           (574)
                                                               -----------     -----------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                   (73,597)        956,727

  CASH AND EQUIVALENTS:
  Beginning of Period                                              693,215         569,170
                                                               -----------     -----------
  End of Period                                                $   619,618     $ 1,525,897
                                                               ===========     ===========

SUPPLEMENTAL DISCLOSURE
  Cash paid during period for interest                         $    22,266     $     3,016
                                                               ===========     ===========
  Cash paid during period for income taxes                     $    14,050     $     1,188
                                                               ===========     ===========
</TABLE>

See accompanying notes to consolidated financial statements

                                       5
<PAGE>

                BIOSPECIFICS TECHNOLOGIES CORP. AND SUBSIDIARIES
               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                                  JULY 31, 2002
                                   (UNAUDITED)

1.  Description of Business and Basis of Presentation
    -------------------------------------------------

BioSpecifics Technologies Corp. ("the Company") was incorporated under the laws
of the State of Delaware in 1990. The Company produces a fermentation-derived
enzyme named Collagenase ABC (the "product" or "enzyme") that is licensed by the
U.S. Food and Drug Administration (the "FDA"). The Company operates production
facilities in Lynbrook, New York (the "Lynbrook Plant or Facility") and in
Curacao, Netherlands Antilles, the Company's primary production facility (the
"Curacao Plant or Facility"). The Company is also researching and developing
additional products derived from this enzyme for potential use as
pharmaceuticals.

The Company derives most of its net sales of product revenues and all of its
royalty revenues from one customer in the United States, Abbott Laboratories
("Abbott") who, pursuant to an exclusive licensing agreement, compounds the
product into Collagenase Santyl(R) Ointment ("Santyl(R)" or "Ointment"), a
prescription drug used to treat a variety of skin wounds. The royalty revenues
from Abbott are earned on sales of Santyl(R) to distributors by Smith & Nephew,
Inc. ("S&N").

The accompanying consolidated financial statements include the accounts of
BioSpecifics Technologies Corp. (the "Company"), its majority-owned
subsidiaries, Advance Biofactures Corp. ("ABC - New York") and Advance
Biofactures of Curacao N.V. ("ABC - Curacao") and its wholly-owned subsidiary,
Biospecifics Pharma GmbH ("Bio Pharma") of Germany. All significant intercompany
transactions and balances have been eliminated in consolidation.

The accompanying consolidated financial statements have been prepared on a going
concern basis. As discussed in "Liquidity, Capital Resources, and Changes in
Financial Condition", the Company must get approval of its Curacao facility in
order to generate revenues sufficient to cover operating expenses in the near
term. Management's plans in regard to this matter are discussed in that section.
The consolidated financial statements do not include any adjustments that might
result from the ultimate timing of the facility's approval.

2.  Interim Financial Statements
    ----------------------------

In the opinion of management, the accompanying consolidated financial statements
of the Company have been prepared in accordance with accounting principles
generally accepted in the United States of America for interim financial
information and reflect all adjustments, consisting of normal recurring
adjustments, considered necessary to present fairly, in all material respects,
the Company's balance sheet as of July 31, 2002, the statements of operations
for the three and six months ended July 31, 2002 and 2001, and statements of
cash flows for the three months ended July 31, 2002 and 2001. 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, 2002.

3.  Net income (loss) per share
    ---------------------------

Basic net income (loss) per share ("EPS") excludes dilution and is computed by
dividing earnings (loss) available to common stockholders by the
weighted-average number of common shares outstanding for the period.

                                       6
<PAGE>

Diluted EPS reflects the dilution that would occur if common stock equivalents
were exercised or converted into common stock or resulted in the issuance of
common stock that then shared in the earnings of the Company. As a result of the
net loss for the three and six months ended July 31, 2002, common stock
equivalents have not been included in the diluted EPS calculation, as their
effect would have been antidilutive. During the three and six months ended July
31, 2001, dilutive common stock options included in diluted EPS amounted to
110,435 and 69,149.

4.  Segment Information
    -------------------

The Company is engaged in one segment, specifically research, development and
production of pharmaceutical products. Operations in this business segment take
place in one location in the United States of America, one location in Curacao,
Netherlands Antilles, and one location in Germany. As of July 31, 2002,
identifiable assets in the United States of America approximated $2.7 million
and identifiable assets in Curacao, Netherlands Antilles and Germany
approximated $4.8 million. For the three and six months ended July 31, 2002,
total revenues derived from Abbott in the United States of America approximated
$1.97 million and $646,000, respectively, and $455,000 and $256,000,
respectively from international customers. For the three and six months ended
July 31, 2001, total revenues derived from Abbott in the United States of
America approximated $1.9 million and $4.6 million, respectively, and $255,000
and $352,000, respectively from international. Total accounts receivable at July
31, 2002 are comprised of amounts due from three customers. There are minimal
assets and operations in Germany.

5.  Stockholders' equity and other comprehensive income
    ---------------------------------------------------

The change to stockholders' equity during the periods presented were increases
(decreases) to retained earnings due to net income (loss) and increases in
additional paid in capital resulting from the exercise of options and the
issuance of fully vested and non-forfeitable stock options granted to
non-employees. Other comprehensive income represents gains and losses resulting
from translation of foreign subsidiaries' assets, liabilities, revenues and
expenses into the U.S. dollar at period-end exchange rates.

6.  Liquidity and Financial Condition

See "Liquidity, Capital Resources, and Changes in Financial Condition" for a
discussion about the upgrade and FDA inspection of the Curacao facility, the
Company's planned response to FDA inspectional observations, and the effects on
the Company's financial condition.

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 us or statements contained in this report or made by our
employees, if not historical, are forward looking information, which involve
uncertainties and risks.

We caution readers that important factors may affect our actual results and
could cause such results to differ materially from forward-looking statements
made by us or on our behalf. Such factors include, but are not limited to, our
liquidity in light of the depletion of our stockpiled inventory and our
inability to distribute newly produced enzyme to Abbott until the Curacao
facility is approved, government regulation, our ability to obtain the approval
of our production facilities, our estimate that our inventory of product for
Abbott is sufficient until the product being produced at the upgraded facilities
is approved and can be sold to Abbott, changing market conditions, the impact of
competitive products and pricing, the

                                       7
<PAGE>

timely development and approval by the Food and Drug Administration ("FDA") and
foreign health authorities of potential products, market acceptance of our
potential products, and other risks detailed herein and in other filings we make
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 we undertake 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, 2002.

                    THREE MONTHS ENDED JULY 31, 2002 AND 2001
                    -----------------------------------------

Net sales - Net sales include the sales of Collagenase ABC enzyme powder
recognized at the time the product is shipped to customers, primarily Abbott.
Net sales also include fees we charge Abbott for testing Collagenase Santyl(R)
Ointment contract manufactured by Abbott. Net sales for the three months ended
July 31, 2002 and 2001 were $1,051,607 and $1,561,116, respectively,
representing a decrease of $509,509 or 33%. Testing fees included in net sales
for the three months ended July 31, 2002 and 2001 were $67,443 and $118,665,
respectively. During the three months ended July 31, 2002, we delivered to
Abbott all the remaining inventory of enzyme powder we accumulated for it prior
to the Curacao facility upgrade, which began in March 2000. The upgraded
facility in Curacao is now producing enzyme powder. However, we cannot deliver
to Abbott any of that inventory until the FDA approves the Curacao facility and
the quarantine inventory now being produced in Curacao. See "Liquidity, Capital
Resources, and Changes in Financial Position".

During the three months ended July 31, 2002 we had sales of approximately
$200,000 to customers in Brazil and India versus $255,000 during the quarter
ended July 31, 2001.

Royalties - Royalties for the three months ended July 31, 2002 and 2001 were
$472,222 and $597,728, respectively, representing a decrease of $125,506 or 21%.
The decrease was due to lower sales of Collagenase Santyl(R) Ointment to
wholesalers in the United States by S&N during the 2002 second fiscal quarter,
as reported to the Company by Abbott. We expect Abbott's inventory of our enzyme
powder, including that which was delivered during the three months ended July
31, 2002, will enable Abbott to supply Collagenase Santyl(R) Ointment to Smith &
Nephew, which will support distribution of the product, and royalties thereon at
diminishing amounts, through June 2003.

Cost of sales - Cost of sales for the three months ended July 31, 2002 and 2001
were $1,114,635 and $1,223,604, respectively, representing a decrease of
$108,969, or 9% due to decreased net sales. We had a negative gross profit
margin in the current quarter due to fixed production costs, compared to a gross
profit percentage of 22% during the three months ended July 31, 2001.

We are producing new enzyme powder inventory at the upgraded Curacao facility
for all our customers. The inventory being produced for Abbott is work in
process inventory that must undergo additional processing. Since FDA has not yet
approved the Curacao facility, that inventory will remain in quarantine until
approval, if obtained. The carrying value of this quarantine inventory for
Abbott is being reserved against because approval cannot be assured. These
reserves also negatively affect the cost of sales margin. We are dependent on
the FDA's approval of the renovated plant in Curacao for the resumption of
normal operations (see "Liquidity, Capital Resources, and Changes in Financial
Position").

General and administrative - General and administrative ("G&A") expenses for the
three months ended July 31, 2002 and 2001 were $781,364 and $512,565,
respectively, representing an increase of $268,799 or 52%. During the quarter
ended July 31, 2002, a significant portion of our lab and production personnel
time was spent on preparing for the FDA inspection of the Curacao facility,
which took place at the end of July 2002.

                                       8
<PAGE>

During the year ago period, the upgraded facility's construction had just been
completed and therefore the FDA inspection was not pending. Since such a
significant portion of laboratory personnel was devoted to this effort, their
costs were allocated from cost of sales to general and administrative. We expect
this effort to continue; therefore we expect to allocate these costs to general
and administrative throughout the fiscal year ending January 31, 2003.

Research and development - Research and development ("R&D") expenses for the
three months ended July 31, 2002 and 2001 were $300,134 and $291,663,
respectively, representing an increase of $8,471 or 3%. The increase is due to
higher costs incurred for development of Cordase(TM), our injectable collagenase
for Dupuytren's disease, as we prepare for the initiation of Phase 3 clinical
trials for this potential product.

Other income (loss)- net - Other income (loss)- net for the three months ended
July 31, 2002 and 2001 was $(13,685) and $4,993, respectively. The increase in
other (loss) - net of $18,678 was primarily attributable to interest expense on
our loan with an industrial development agency in Curacao ("Korpodeko"), which
was drawn down in November 2001 (see "Liquidity, Capital Resources and Changes
in Financial Condition").

Income tax - The income tax for both the three months ended July 31, 2002 and
2001 was $0. During the three months ended July 31, 2002 and 2001, no benefit
for income tax carryforwards was recorded because of uncertainties with respect
to the timing of future utilization of that tax benefit.

                     SIX MONTHS ENDED JULY 31, 2002 AND 2001
                     ---------------------------------------

Net sales - Net sales include the sales of Collagenase ABC enzyme powder
recognized at the time the product is shipped to customers, primarily Abbott.
Net sales also include fees we charge Abbott for testing Collagenase Santyl(R)
Ointment contract manufactured by Abbott. Net sales for the six months ended
July 31, 2002 and 2001 were $1,393,501 and $3,772,318, respectively,
representing a $2,378,817, or 63% decrease. Testing fees included in net sales
for the six months ended July 31, 2002 and 2001 were $161,481 and $203,457,
respectively. As explained above, during the six months ended July 31, 2002, we
delivered to Abbott all the remaining inventory of enzyme powder we accumulated
for it prior to the Curacao facility upgrade, which began in March 2000. The
upgraded facility in Curacao is now producing enzyme powder. However, we cannot
deliver to Abbott any of that inventory until the FDA approves the Curacao
facility and the quarantine inventory now being produced in Curacao. See
"Liquidity, Capital Resources, and Changes in Financial Position".

During the six months ended July 31, 2002 we had sales of approximately $455,000
to customers in Brazil and India versus $339,000 during the six months ended
July 31, 2001.

Royalties - Royalties for the six months ended July 31, 2002 and 2001 were
$1,032,350 and $1,178,998, respectively, representing a decrease of $146,648 or
12%. The decrease was due to lower sales of Collagenase Santyl(R) Ointment to
wholesalers in the United States by S&N during the 2002 second fiscal quarter,
as reported to the Company by Abbott. As explained above, we expect Abbott's
inventory of our enzyme powder, including that which was delivered during the
three months ended July 31, 2002, will enable Abbott to supply Collagenase
Santyl(R) Ointment to Smith & Nephew, which will support distribution of the
product, and royalties thereon, through June 2003.

Cost of sales - Cost of sales for the six months ended July 31, 2002 and 2001
were $1,883,511 and $3,123,092, respectively, representing a decrease of
$1,239,581 or 40% due to lower net sales. We had a negative gross profit margin
during the six months ended July 31, 2002 due to fixed production costs,
compared to a gross profit percentage of 17% during the six months ended July
31, 2001.

                                       9
<PAGE>

As explained above, we are producing new enzyme powder inventory at the upgraded
Curacao facility for all our customers. The inventory being produced for Abbott
is work in process inventory that must undergo additional processing. Since FDA
has not yet approved the Curacao facility, that inventory will remain in
quarantine until approval, if obtained. The carrying value of this quarantine
inventory for Abbott is being reserved against because approval cannot be
assured. These reserves also negatively affect the cost of sales margin. We are
dependent on the FDA's approval of the renovated plant in Curacao for the
resumption of normal operations (see "Liquidity, Capital Resources, and Changes
in Financial Position").

General and administrative - G&A expenses for the six months ended July 31, 2002
and 2001 were $1,522,594 and $962,153, respectively, representing a $560,441, or
58% increase.

As explained above, during the six months ended July 31, 2002, a significant
portion of our lab and production personnel time was spent on preparing for the
FDA inspection of the Curacao facility which took place at the end of July 2002.
During the year ago period, the upgraded facility's construction had just been
completed and therefore the FDA inspection was not pending. Since such a
significant portion of laboratory personnel was devoted to this effort, their
costs were allocated from cost of sales to general and administrative. We expect
this effort to continue; therefore we will allocate these costs to general and
administrative throughout the fiscal year ending January 31, 2003.

Research and development - R&D expenses for the six months ended July 31, 2002
and 2001 were $661,344 and $567,784, respectively, representing an increase of
$93,560 or 16%. The increase is due to higher costs incurred for development of
Cordase(TM), our injectable collagenase for Dupuytren's disease, as we prepare
for the initiation of Phase 3 clinical trials for this potential product.

Other income (loss) - net - Other income (loss) - net for the six months ended
July 31, 2002 and 2001 was ($9,305) and $14,951, respectively. The increase in
other (loss) - net of ($24,256) was primarily attributable to interest expense
on our loan with Korpodeko, which was drawn down in November 2001 (see
"Liquidity, Capital Resources and Changes in Financial Condition").

Income tax - The income tax for the six months ended July 31, 2002 and 2001 was
$0 and $0, respectively. During the three months ended July 31, 2002 and 2001,
no benefit for income tax carryforwards was recorded because of uncertainties
with respect to the timing of future utilization of that tax benefit.

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

Our primary source of working capital is from operations, which includes sales
of product, royalties, and periodic license fees. At July 31, 2002, the Company
had working capital of approximately $1.0 million, which includes cash and cash
equivalents, and marketable securities of approximately $622,000. The principal
use of cash during the six months ended July 31, 2002 was approximately $61,000
from operating activities. Within the operating activities, we had non-cash
expenses, such as depreciation of approximately $325,000, a decrease of
approximately $1.1 million in accounts receivable and a decrease in inventory of
approximately $279,000. These sources were offset by the net loss of
approximately $1.6 million.

Collagenase ABC enzyme is our only product and sole source of revenues. The
production and marketing of Collagenase ABC enzyme is subject to regulation in
the United States by the federal government, principally the FDA. In March 2000
we stopped production of the enzyme and began upgrading our primary production
facility, located in Curacao, Netherlands Antilles. In May 2001 we completed the
upgrade and went back into limited enzyme production, which we cannot distribute
to Abbott until approval. In April 2002 we filed with the FDA a "Prior Approval
Supplement" ("PAS") for the upgraded Curacao facility.

                                       10
<PAGE>

In July 2002, the FDA completed a Pre-Approval Inspection of this facility. At
the conclusion of the inspection, the FDA inspectors provided us with a list of
observations on FDA Form 483. With outside assistance, we expect to respond to
the FDA in the coming weeks with a plan that is aimed at addressing these
observations and obtaining approval by December 2002. Of course, no assurances
can be given that the FDA will accept the plan or approve the facility by
December 2002.

While we are producing enzyme at the upgraded Curacao facility, the new enzyme
produced for Abbott must be held in quarantine and can only be sold to Abbott if
and when the FDA approves the PAS and any enzyme already produced at the
facility for Abbott. There can be no assurance if or when the FDA will approve
our PAS according to our schedule, if at all. Enzyme produced at the Curacao
facility can be sold to international customers.

Since we began upgrading the Curacao facility in March 2000, we have not
produced any new enzyme that we can currently sell to Abbott. Enzyme now being
produced cannot be sold to Abbott until we obtain approval. The enzyme we
processed and have sold to Abbott in fiscal 2001, fiscal 2002, and fiscal 2003,
which it is has used and is continuing to use to make Collagenase Santyl(R)
Ointment ("Santyl(R)"), was from an inventory of enzyme we built up at the
Curacao facility prior to the start of the upgrade. The last of this stockpiled
inventory was delivered to Abbott during the second fiscal quarter ended July
31, 2002. Revenues from this inventory and royalties on sales of ointment that
will be manufactured from this and other inventory we have already delivered to
Abbott will be insufficient to cover our operating expenses, resulting in an
operating loss for the fiscal year that will end January 31, 2003.

We estimate that Abbott can supply S&N with Santyl(R) through June 2003, based
on its inventory of enzyme it has already purchased from us and S&N's rate of
Santyl(R) sales. If we are able to get approval of the PAS by December 31, 2002,
we may also be able to sell quarantined enzyme already produced and planned to
be produced. However, if approval is delayed and we cannot sell quarantined
product, we do not expect that cash generated from royalties, the sale of enzyme
to foreign customers, collection of our accounts receivable, and cash currently
on hand is sufficient to fund operations, in their current form, through the
fiscal year that will end January 31, 2003. We are looking at borrowing sources
to provide us with liquidity until the plant is approved and revenues from
enzyme sales to Abbott resume. There can be no assurance that we will be
successful in borrowing additional funds.

We are dependent on Abbott to buy enzyme from us, contract manufacture Santyl(R)
and provide it to S&N ready for distribution. We are dependent on S&N for the
distribution of Santyl(R), which provides us with royalty revenue. Abbott and
S&N have a Sublicense and Assignment agreement whereby Abbott will assign to S&N
its rights in our exclusive license agreement by December 31, 2002. If approval
of the plant is obtained, the license agreement rights will be assigned to S&N
and the agreement will automatically extend to August 2013. S&N has the option
to terminate its agreement with Abbott if the FDA approval of the Curacao
facility PAS is not received by December 31, 2002. There can be no assurance
that S&N will not terminate its agreement with Abbott if the PAS is not approved
by December 31, 2002. In the event S&N terminates, our exclusive license
agreement with Abbott automatically extends for 10 more years in August 2003,
unless Abbott exercises its right not to extend our exclusive license agreement,
in which event it would have to notify us six months in advance, or February
2003.

If S&N were to terminate, and Abbott exercise its right, we would have to find
another licensee for Santyl(R) with a sufficient sales force. We might also have
to use another trade name for ointment containing our Collagenase ABC, as the
trade name Santyl(R) is owned by Abbott. There can be no assurance that we would
be successful in finding another licensee or that a new licensee could achieve
S&N's current level of sales.

                                       11
<PAGE>

While we believe we have made considerable progress in addressing the FDA
concerns addressed in the Form 483 and the FDA Letter, if we are unable to
further address these matters in a timely manner to the satisfaction of the FDA,
there may be delays in the approval of the Curacao facility and the delivery of
the enzyme powder produced there for Abbott to use to contract manufacture
Collagenase Santyl(R) Ointment. Such delays would have a material adverse effect
on our future operating results.

In November 2001, ABC Curacao borrowed a non-amortizing loan of $455,000 at 6.5%
interest due in November 2003 from Korpodeko. In connection with this loan,
ABC-Curacao agreed to pledge as collateral substantially all of our production
assets located in Curacao, with a book value of approximately $4.0 million.
BioSpecifics has also guaranteed the Korpodeko loan. Through ABC-Curacao, we
also maintain a line of credit with a Netherlands Antilles bank under which the
bank will lend up to $110,000 to ABC-Curacao, with interest at the bank's prime
lending rate (12% at January 31, 2002). Borrowings under the line of credit
would be secured by investment assets and cash on deposit at the bank, is
payable on demand, and is guaranteed by another of our subsidiaries, ABC-New
York. In addition to the Korpodeko loan, long-term obligations at July 31, 2002
include operating leases of approximately $191,000 annually through fiscal 2006.

There can be no assurance that unforeseen circumstances will not have a material
adverse effect on our financial condition and that the time required getting FDA
approval of our plants will not exceed our estimates. There can be no assurance
that the FDA will not have additional inspectional observations that could
result in delaying its approval of the PAS for the Curacao facility or that the
FDA will approve the upgraded facility and permit us to resume our normal
operations at all.

Item 3 - CONTROLS AND PROCEDURES

Not applicable.


                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
--------------------------

For a discussion of our progress concerning inspectional observations from the
U.S. Food and Drug Administration, see "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Liquidity, Capital Resources,
and Change in Financial Condition."

                                       12
<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act of 1934, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                            BioSpecifics Technologies Corp.
                                                     (Registrant)

Date:    September 23, 2002
         ------------------

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

Date:    September 23, 2002
         ------------------

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

                                       13
<PAGE>

                                 CERTIFICATIONS

                            Certification Pursuant to
                             18 U.S.C. Section 1350,
                             As adopted pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002

I, Edwin H. Wegman, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of BioSpecifics
Technologies Corp. ("BioSpecifics");

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report; and

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of
BioSpecifics as of, and for, the periods presented in this quarterly report.

Date: September 23, 2002                   s/Edwin H. Wegman
      ------------------                   -----------------
                                           Edwin H. Wegman
                                           President and Chief Executive Officer


                            Certification Pursuant to
                             18 U.S.C. Section 1350,
                             As adopted pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002

In connection with this quarterly report on Form 10-QSB of BioSpecifics
Technologies Corp. ("BioSpecifics"), I, Edwin H. Wegman, President and Chief
Executive Officer of BioSpecifics, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

2. The information contained in this report fairly presents, in all material
respects, the financial condition and results of operations of BioSpecifics.


Date: September 23, 2002                   /s/Edwin H. Wegman
      ------------------                   ------------------
                                           Edwin H. Wegman
                                           President and Chief Executive Officer

                                       14
<PAGE>

                            Certification Pursuant to
                             18 U.S.C. Section 1350,
                             As adopted pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002


I, Albert Horcher, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of BioSpecifics
Technologies Corp. ("BioSpecifics");

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report; and

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of
BioSpecifics as of, and for, the periods presented in this quarterly report.

Date: September 23, 2002                    /s/Albert Horcher
      ------------------                    ----------------
                                            Albert Horcher
                                            Secretary, Treasurer and
                                            Principal Accounting Officer


                            Certification Pursuant to
                             18 U.S.C. Section 1350,
                             As adopted pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002

In connection with this quarterly report on Form 10-QSB of BioSpecifics
Technologies Corp. ("BioSpecifics"), I, Albert Horcher, Secretary, Treasurer and
Principal Accounting Officer of BioSpecifics, certify, pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that:

1. The report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

2. The information contained in this report fairly presents, in all material
respects, the financial condition and results of operations of BioSpecifics.

Date: September 23, 2002                    /s/Albert Horcher
      ------------------                    ----------------
                                            Albert Horcher
                                            Secretary, Treasurer and
                                            Principal Accounting Officer

                                       15