U.S. SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                   FORM 10-QSB

         [x]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                  EXCHANGE ACT OF 1934

         For the quarterly period ended: SEPTEMBER 30, 2003

         [ ]      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: 4,888,148 shares of Common
Stock, $0.001 par value as of November 1, 2003

       Transitional Small Business Disclosure Format (check one): Yes     No  x
                                                                      ---    ---

                                  Page 1 of 22
<PAGE>

                                      INDEX

                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION                                                3

Item 1.  Financial Statements                                                 3

Consolidated Interim Financial Statements:

         Balance Sheet as of September 30, 2003 (unaudited)                   3

         Statements of Operations for the Three and Nine Months
         Ended September 30, 2003 and October 31, 2002, and Eight
         Months Ended September 30, 2003 (unaudited)                          4

         Statements of Cash Flows for the Nine Months Ended
         September 30, 2003 and October 31, 2002, and Eight
         Months Ended September 30, 2003 (unaudited)                          5

         Notes to Consolidated Interim Financial Statements
         (unaudited)                                                          6

         Item 2. Management's Discussion and Analysis of
         Financial Condition and Results of Operations                       11

         Item 3. Controls and Procedures                                     16

PART II - OTHER INFORMATION                                                  17

SIGNATURES                                                                   22

                                       2
<PAGE>

                         BIOSPECIFICS TECHNOLOGIES CORP.
                                AND SUBSIDIARIES

                           Consolidated Balance Sheet

                                                                  September 30,
                                                                           2003
                                                                  -------------
                                                                     (Unaudited)
                             Assets
Current assets:

Cash and cash equivalents                                           $   551,507
Marketable securities                                                     3,026
Accounts receivable, net                                                674,620
Inventories, net                                                        728,634
Prepaid expenses and other current assets                                33,655
                                                                    -----------
Total current assets                                                  1,991,442
Other assets - loan costs                                               225,992
Property, plant and equipment, net                                    4,068,140
                                                                    -----------
                                                                    $ 6,285,574
                                                                    ===========

               Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable and accrued expenses                                 1,699,022
Notes payable to related parties                                         14,885
Deferred revenue                                                         45,000
Short-term debt - Korpodeko                                              91,000
Short-term debt - promissory note                                       100,000
                                                                    -----------
Total current liabilities                                             1,949,907

Long-term debt less current portion - Korpodeko                         364,000
Senior secured covertible 12% note, net                               1,329,522

Minority interest in subsidiaries                                       107,188

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; 5,249,528 shares issued at
  September 30, 2003                                                      5,249

Additional paid-in capital                                            4,144,207
Retained earnings                                                       961,683
Accumulated other comprehensive income                                    4,430
Treasury stock, 361,380 shares at cost                               (1,911,237)
Notes receivable from chairman and other related party                 (669,375)
                                                                    -----------
Total stockholders' equity                                            2,534,957
                                                                    -----------
                                                                    $ 6,285,574
                                                                    ===========

See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

Biospecifics Technologies Corp.
and Subsidiaries
Consolidated Statements of Operations

<TABLE>
<CAPTION>
                                                      Three Months Ended      Three Months Ended       Nine Months Ended
Revenues:                                             September 30, 2003        October 31, 2002      September 30, 2003
                                                      ------------------        ----------------      ------------------
                                                          (Unaudited)             (Unaudited)             (Unaudited)
<S>                                                       <C>                     <C>                     <C>
   Net sales                                              $   525,746             $   305,086             $   920,877
   Royalties                                                  266,290                 525,774               1,404,347
                                                          -----------             -----------             -----------
                                                              792,036                 830,860               2,325,224
                                                          -----------             -----------             -----------
Costs and Expenses:
   Cost of sales                                              754,983                 455,040               1,901,184
   General and administrative                                 759,348                 896,740               2,206,609
   Research and development                                   181,222                 253,563                 616,978
                                                          -----------             -----------             -----------
                                                            1,695,553               1,605,343               4,724,771
                                                          -----------             -----------             -----------

Loss from operations                                         (903,517)               (774,483)             (2,399,547)

Other income (expense):
   Investment and other income                                     10                   3,308                  22,371
   Interest expense                                          (102,836)                 (8,669)               (133,643)
                                                          -----------             -----------             -----------
                                                             (102,826)                 (5,361)               (111,272)

Loss before income taxes and minority interest             (1,006,343)               (779,844)             (2,510,819)
Income tax benefit (expense)                                        0                       0                   7,000
                                                          -----------             -----------             -----------
Loss before minority interest                              (1,006,343)               (779,844)             (2,503,819)
Minority interest in net loss of subsidiaries                  24,770                  21,200                  59,953
                                                          -----------             -----------             -----------
Net loss                                                  ($  981,573)            ($  758,644)            ($2,443,866)
                                                          ===========             ===========             ===========
Basic and diluted net loss per common share               ($     0.21)            ($     0.17)            ($     0.53)
                                                          ===========             ===========             ===========
Weighted-average common shares outstanding                  4,888,148               4,577,836               4,683,773
                                                          ===========             ===========             ===========

<CAPTION>
                                                       Nine Months Ended      Eight Months Ended
Revenues:                                              October 31, 2002       September 30, 2003
                                                       -----------------      ------------------
                                                          (Unaudited)             (Unaudited)
<S>                                                       <C>                     <C>
   Net sales                                              $ 1,698,587             $   698,014
   Royalties                                                1,558,124               1,236,363
                                                          -----------             -----------
                                                            3,256,711               1,934,377
                                                          -----------             -----------
Costs and Expenses:
   Cost of sales                                            2,338,551               1,629,043
   General and administrative                               2,419,334               1,909,341
   Research and development                                   914,907                 538,605
                                                          -----------             -----------
                                                            5,672,792               4,076,989
                                                          -----------             -----------
Loss from operations                                       (2,416,081)             (2,142,612)

Other income (expense):
   Investment and other income                                 16,270                  19,317
   Interest expense                                           (30,936)               (131,538)
                                                          -----------             -----------
                                                              (14,666)               (112,221)

Loss before income taxes and minority interest             (2,430,747)             (2,254,833)
Income tax benefit (expense)                                        0                 (13,000)
                                                          -----------             -----------
Loss before minority interest                              (2,430,747)             (2,267,833)
Minority interest in net loss of subsidiaries                  66,500                  53,270
                                                          -----------             -----------
Net loss                                                  ($2,364,247)            ($2,214,563)
                                                          ===========             ===========
Basic and diluted net loss per common share               ($     0.52)            ($     0.48)
                                                          ===========             ===========
Weighted-average common shares outstanding                  4,559,836               4,683,773
                                                          ===========             ===========

</TABLE>

          See accompanying notes to consolidated financial statements

                                       4
<PAGE>

Biospecifics Technologies Corp.
and Subsidiaries
Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                  Nine Months Ended    Nine Months Ended   Eight Months Ended
                                                                 September 30, 2003     October 31, 2002   September 30, 2003
                                                                 ------------------     ----------------   ------------------
                                                                     (Unaudited)          (Unaudited)          (Unaudited)
<S>                                                                  <C>                  <C>                  <C>
Cash flows from operating activities:
Net loss                                                             ($2,443,866)         ($2,364,247)         ($2,214,563)
Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization                                            468,751              489,166              419,933
Options issued for services                                               14,000                    0               14,000
Issuance of stock for services                                            15,000                    0               15,000
Minority interest in loss of subsidiaries                                (59,953)             (66,500)             (53,270)
Changes in operating assets and liabilities:
Accounts receivable                                                      194,190            1,696,339              315,222
Inventories                                                              (79,754)             195,428              (49,728)
Prepaid expenses and other current assets                                    493              (43,387)                 493
Accounts payable and accrued expenses                                     42,474             (125,871)            (173,722)
Income taxes receivable                                                  417,000                    0              425,000
                                                                     -----------          -----------          -----------
Net cash used by operating activities                                 (1,431,665)            (219,072)          (1,301,635)
                                                                     -----------          -----------          -----------
Cash flows from investing activities:
Paydown of notes receivable from chairman                                460,934              (13,931)             355,934
Expenditures for property, plant and equipment                            (8,849)             (39,634)              (9,149)
                                                                     -----------          -----------          -----------
Net cash provided by (used) in investing activities                      452,085              (53,565)             346,785
                                                                     -----------          -----------          -----------

Cash flows from financing activities:
Interest accrued on notes payable to related parties                         375                  375                  375
 Exercises of stock options                                                    0               34,600                    0
Decrease in short-term debt                                             (264,000)                   0             (264,000)
Increase in long term debt                                               364,000                    0              364,000
Increase in senior secured convertible debt                            1,575,000                    0            1,575,000
Other assets - loan costs                                               (225,992)                   0             (225,992)
Amortization of loan discount                                             35,068                    0               35,068
Stock issued to senior secured debt                                          295                    0                  295
                                                                     -----------          -----------          -----------
Net cash provided by financing activities                             1,484,746               34,975            1,484,746
                                                                     -----------          -----------          -----------
Effect of exchange rates on cash and equivalents                          (4,558)              (2,030)              (4,558)

Increase (decrease) in cash and cash equivalents                         500,608             (239,692)             525,338
Cash and cash equivalents at beginning of period                          50,899              693,215               26,169
                                                                     -----------          -----------          -----------
Cash and cash equivalents at end of period                              $551,507             $453,523             $551,507
                                                                     ===========          ===========          ===========

Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest                                                                $131,539              $30,936             $131,539
                                                                     ===========          ===========          ===========
Income taxes                                                                   0              $14,050                   0
                                                                     ===========          ===========          ===========

</TABLE>

          See accompanying notes to consolidated financial statements

                                       5

                BIOSPECIFICS TECHNOLOGIES CORP. AND SUBSIDIARIES
               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2003
                                   (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
manufacturing facilities in Lynbrook, New York (the "Lynbrook facility") and in
Curacao, Netherlands Antilles, the Company's primary manufacturing facility (the
"Curacao 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 the product and all of its royalty
revenues from one customer in the United States, Abbott Laboratories ("Abbott")
who, pursuant to an exclusive licensing agreement (the "Agreement"), compounds
the product into Collagenase Santyl(R) Ointment ("Santyl(R)" or "ointment"), a
prescription drug used to treat dermal ulcers and burns. The royalty revenues
from Abbott were earned on North American sales of Santyl(R) to distributors
by Smith & Nephew, Inc. ("S&N").

The FDA notified us on July 28, 2003 that our request to supplement our
biologics license for collagenase ABC was approved ("FDA approval"). The
supplement included major renovations to the manufacturing facility, utility
systems, and process equipment at our Curacao facility. The FDA notification
acknowledged our written commitments to provide additional information regarding
ongoing studies and when to submit this information to our biologics license for
review.

With FDA approval, inventory of enzyme product manufactured at the Curacao
facility can be distributed to Abbott when the manufacturing process is
completed.

In 1999, as a result of inspectional observations made by the FDA in Form 483
citing numerous deficiencies in the Company's compliance with FDA regulations at
its Lynbrook and Curacao facilities and at the contract manufacturing facility
used by the Company, the FDA advised the Company in a letter (the "FDA letter")
that it would revoke the Company's license to produce the enzyme and ointment
unless the Company could immediately provide satisfactory assurance to the FDA
(including submitting a comprehensive plan of corrective action) addressing the
FDA's observations and demonstrate compliance with the applicable regulations.
Regardless of the recent FDA approval described above, the FDA letter will
remain in effect until we demonstrate compliance with the applicable federal
standards and regulations, which the Company understands to be two "satisfactory
annual GMP inspections" of our Lynbrook and Curacao manufacturing facilities.
The Company believes it has made progress in complying with the applicable
federal standards and regulations, although there can be no assurances as to
when the FDA letter will be rescinded, if at all.

The sub-license agreement under which Smith & Nephew marketed Santyl(R) ointment
terminated on June 30, 2003 but it was agreed they would continue to market
through the end of 2003. The Ross Products Division of Abbott Laboratories Inc.
will assume United States marketing responsibility for Collagenase Santyl(R)
Ointment effective January 1, 2004.

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.

                                       6
<PAGE>

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern, which contemplates the
realization of assets and the satisfaction of liabilities in the normal course
of business. The carrying amounts of assets and liabilities presented in the
financial statements do not purport to represent realizable or settlement
values. The Company was dependent on the FDA approval it received. The Company
has incurred significant operating losses since the period of Curacao facility
renovation and currently has limited liquidity. These factors raise substantial
doubt about the Company's ability to continue as a going concern. The
consolidated financial statements do not include any adjustments that might
result from the outcome of those uncertainties.

As of the date of this report, the Company has limited cash resources available
to fund its operations. Over the past few months, the Company has been able to
fund operations by (1) borrowings: $100,000 from an unaffiliated individual
(described below), an aggregate of $500,000 from April through the first half of
June 2003, advanced to the Company by a principal (a "principal") of Bio
Partners LP, a private investment group and unrelated third party ("Bio
Partners"), and net $890,000 from Bio Partners on June 19, 2003, described below
(after the payment of loan expenses and taking into account the aggregate
$500,000 previously advanced to the Company by a principal), (2) receiving early
payment of royalties from Abbott Laboratories, the Company's major customer, in
May 2003 earned from distribution of Santyl(R) Ointment from a supply that was
depleted in August 2003, (3) our chairman's deferring salary of approximately
$100,000 during the three months ended June 30, 2003, (4) our chairman's notes
repayments of $153,934 from January 2003 through June 30, 2003, and in July 2003
repaying an additional $307,000 obtained by his refinancing the mortgage on the
administrative headquarters in Lynbrook, New York, which is owned by his
affiliate and leased to the Company, and (5) deferring or making partial
payments to creditors.

On June 19, 2003, the Company entered into a financing transaction with Bio
Partners LP, a private investor group, pursuant to which the Company sold to Bio
Partners in a private placement (i) a $1.575 million convertible note, issued at
face value (the "Note"), and (ii) 295,312 restricted shares of Company common
stock, issued at par value, or $.001 per share. The net proceeds to the Company
were approximately $890,000, after the payment of loan expenses and taking into
account the aggregate $500,000 that was previously advanced to the Company by a
principal of Bio Partners. Based on operating projections made in January 2003
and updated through October 2003, the Company projects that these funds will
enable it to continue operations to December 31, 2003.

If any of the assumptions on which our projections are based do not occur, the
Company may not be able to fund operations past the next several months. In
addition, it cannot be assured that the Company will be able to obtain any
additional financing on acceptable terms, if at all. The Company is attempting
to license its injectable collagenase product under development, and attempting
to obtain an additional loan, which would require the permission of Bio
Partners. Our projections do not assume such transactions.

                                       7
<PAGE>

The Note matures on June 19, 2005 and bears interest at a rate of 12% per annum.
Interest-only payments under the Note are payable monthly in arrears and the
entire principal amount is payable at maturity. Up to $1,141,875 aggregate
principal amount of the Note is convertible into the Company's common stock at
any time, at a conversion price of $2.50 per share, subject to customary
adjustments. The Note also contains restrictions on the Company's ability to
incur debt as long as the Note is outstanding. The Note is secured by a pledge
of substantially all of the assets of the Company and the Company's New York
subsidiary, Advance Biofactures Corporation ("ABC"). The Company has committed
to filing a registration statement for the common shares issued in connection
with the Note and issuable upon conversion of the Note. In addition, ABC has
guaranteed the obligations of the Company under the Note and our chairman, Edwin
H. Wegman, has personally guaranteed 50% of the obligations of the Company under
the Note. The loan discount of approximately $281,000 and loan costs of
approximately $258,000 incurred on the Note will be amortized over the two-year
life of the Note.

The Abbott Agreement automatically renewed for an additional 10-year period, to
August 2013. The sub-license agreement under which Smith & Nephew marketed
Santyl(R) ointment terminated on June 30, 2003 but it was agreed they would
continue to market through the end of 2003. The Ross Products Division of Abbott
Laboratories Inc. will assume all marketing responsibility for Collagenase
Santyl(R) Ointment effective January 1, 2004. Notwithstanding, should the
Company be unable to provide enzyme under terms of the Agreement, the Company
may be required to provide Abbott with necessary technical information and
manufacturing know-how to permit Abbott to manufacture our enzyme until the
Company can again supply. In addition, the Company cannot assure you that Abbott
will not claim that any inability to deliver the enzyme to it is an event of
default under terms of the Agreement or claim that they have the right to
terminate the Agreement because of default.

Historically, the Company has derived substantially all of its revenues from the
topical ointment business, through the Agreement with Abbott Laboratories and
the predecessor company Knoll Pharmaceutical Company. Revenues from this
business are derived from two sources i.) sales of Collagenase ABC enzyme in
powder form to Abbott and to a lesser extent foreign pharmaceutical companies,
and ii.) royalties paid by Abbott on U.S. sales of Collagenase Santyl(R)
Ointment, which contains the product, to distributors in North America. Our
manufacture of new product was voluntarily suspended in March 2000 due to a
major renovation program at our Curacao facility to address various FDA
concerns. Since March 2000, the Company supplied Abbott with the product from an
inventory stockpiled in anticipation of the renovation program. This stockpiled
inventory was depleted in July 2002. The Company received FDA approval of the
Curacao facility in July 2003. The approved Curacao facility has been in limited
production of quarantine inventory since the fiscal year ended January 31, 2002.
FDA approval was required before Santyl(R) could be made from inventory
manufactured at the renovated Curacao facility. Inventory manufactured at the
renovated Curacao facility was delivered to Abbott during the three months ended
September 30, 2003. There is no assurance when other inventory manufactured at
the Curacao facility will be finished and distributed to Abbott, or if the
Company will be able to manufacture adequate levels of inventory on a timely
basis, or how substantial the impact of delays will have on the market for
Santyl(R) Ointment.

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 the assets owned
by ABC-Curacao, including the upgraded facility's manufacturing assets with a
book value of approximately $3.4 million at September 30, 2003. BioSpecifics has
also guaranteed the Korpodeko loan. In September 2003, Korpodeko agreed to
modify the terms of the loan. Korpodeko will permit the Company to repay 20%,
or $91,000 of the loan principal in November 2003, and pay the remaining
principal, or $364,000 in November 2004. In return, the Company agreed to an
interest rate increase from 6.5% to 7.5% from November 2003 to the new maturity
in November 2004. On the consolidated balance sheet as of September 30, 2003,
short-term liabilities include the $91,000 due November 2003, and long-term
liabilities include the remaining

                                       8
<PAGE>

$364,000 due November 2004. Long-term obligations at September 30, 2003 include
operating leases of approximately $191,000 payable annually through January
2005.

On March 11, 2003, the Company borrowed $100,000 from an individual lender,
evidenced by a one-year promissory note, bearing interest of 8% per annum, and
personally guaranteed by our chairman. The Company also granted to the lender
warrants to purchase up to 10,000 common shares of BioSpecifics at $1.18, the
closing price on that day, until March 11, 2008. The cost associated with these
warrants, based on Black-Scholes methodology, was $5,000 and was recorded as
interest expense during the quarter ended March 31, 2003.

The accompanying consolidated financial statements have been prepared on a going
concern basis. The Company was dependent on FDA approval of its Curacao facility
in order to generate revenues sufficient to cover operating expenses in the near
term. The Company must continue its efforts to obtain additional working capital
and maintain liquidity. The consolidated financial statements do not include any
adjustments that might result from the ultimate timing of obtaining additional
liquidity.

2.  Interim Financial Statements

In March 2003 we changed our fiscal year end from January 31 to December 31. Our
first fiscal year using this new basis will be the eleven months ending December
31, 2003. In this report we compare the three and nine months ended September
30, 2003 to the three and nine months ended October 31, 2002, because it is not
practical to recast the prior comparative periods ended September 30, 2002. The
eight months period ended September 30, 2003 is also presented.

In the opinion of management, the accompanying consolidated interim 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 September 30, 2003, the statements
of operations for the three and nine months ended September 30, 2003, and the
three and nine months ended October 31, 2002, and statements of cash flows for
the nine months ended September 30, 2003 and October 31, 2002 and eight months
ended September 30, 2003. 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, 2003.

3.  Net loss per share

Basic net loss per share ("EPS") excludes dilution and is computed by dividing
loss available to common stockholders by the weighted-average number of common
shares outstanding for the period. 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 nine months ended
September 30, 2003 and October 31, 2002, common stock equivalents have not been
included in the diluted EPS calculation, as their effect would have been
antidilutive.

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 September 30, 2003,
tangible assets in the United States of America approximated $2.3 million and
tangible assets in Curacao, Netherlands Antilles approximated $3.7 million.
There are minimal assets and

                                       9
<PAGE>

operations in Germany. For the three and nine months ended September 30, 2003,
total revenues derived from Abbott in North America approximated $800,000 and
$2.0 million, respectively, and $0 and $289,000, respectively from international
customers. For the three and nine months ended October 31, 2002, total revenues
derived from Abbott in North America approximated $0.6 million and $2.5 million,
respectively, and $240,000 and $696,000 respectively from international
customers. Total accounts receivable at September 30, 2003 are primarily due
from Abbott.

5.  Stockholders' equity and other comprehensive income

The change to stockholders' equity during the periods presented were primarily
decreases to retained earnings due to net losses and increases in additional
paid in capital resulting from the issuance of the Bio Partners Note, fully
vested and non-forfeitable stock options granted to non-employees, and issuance
of restricted stock for services. 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

As of the date of this quarterly report, we have limited cash resources
available to fund our operations. Although we obtained FDA approval of our
Curacao manufacturing facility, we must obtain additional funding by the end of
2003, at which time our cash reserves will be nearly depleted based on our
projections. We are engaged in efforts to obtain more capital through various
alternatives, in particular licensing our injectable collagenase under
development, and obtaining an additional loan. There can be no assurances that
these efforts will be successful.

See "Liquidity, Capital Resources, and Changes in Financial Condition".

7.  Stock Based Compensation

The Company has three stock-based employee compensation plans in effect. The
Company accounts for all transactions under which employees receive shares of
stock or other equity instruments in the Company based on the price of its stock
in accordance with the provisions of Accounting Principles Board Opinion No. 25
"Accounting for Stock Issued to Employees." No stock-based employee compensation
cost is reflected in net loss, as all options granted under the plan had an
exercise price equal to the market value of the underlying common stock on the
date of grant. The following table illustrates the effect on net loss and
earnings per share if the Company had applied the fair value recognition
provisions of SFAS No. 123 "Accounting for Stock-Based Compensation".

<TABLE>
<CAPTION>
-------------------------------------- --------------------- ------------------- ------------------ ------------------
                                           Three months         Three months         Nine months         Nine months
                                               ended                ended               ended               ended
                                           September 30,         October 31,        September 30,        October 31,
                                               2003                 2002                2003                2002
-------------------------------------- --------------------- ------------------- ------------------ ------------------
<S>                                         <C>                  <C>                <C>                 <C>
Net loss as reported                        ($981,573)           ($758,644)         ($2,443,866)        ($2,364,247)
-------------------------------------- --------------------- ------------------- ------------------ ------------------
Deduct: Total stock-based employee
compensation expense determined
under fair value based method for
all awards, net effect of minority
interest and related tax effects
                                              (73,787)             (29,515)            (221,361)            (29,515)
                                            ---------            ---------          -----------         -----------
-------------------------------------- --------------------- ------------------- ------------------ ------------------
Proforma net loss                         ($1,055,360)           ($788,159)         ($2,665,227)        ($2,393,762)
-------------------------------------- --------------------- ------------------- ------------------ ------------------
Basic and diluted net loss per share:
-------------------------------------- --------------------- ------------------- ------------------ ------------------
As reported                                    ($0.21)              ($0.17)              ($0.53)             ($0.52)
-------------------------------------- --------------------- ------------------- ------------------ ------------------
Proforma SFAS 123                              ($0.22)              ($0.17)              $(0.57)             $(0.52)
-------------------------------------- --------------------- ------------------- ------------------ ------------------

</TABLE>

                                       10
<PAGE>

The fair value for each option granted was estimated at the date of grant using
the Black-Scholes option-pricing model, one of the allowable valuation methods
under SFAS 123, with the following assumptions:

<TABLE>
<CAPTION>
-------------------------------------- --------------------- ------------------- ------------------ ------------------
                                           Three months         Three months         Nine months         Nine months
                                               ended                ended               ended               ended
                                           September 30,         October 31,        September 30,        October 31,
                                               2003                 2002                2003                2002
-------------------------------------- --------------------- ------------------- ------------------ ------------------
<S>                                         <C>                  <C>                <C>                 <C>
Average risk free interest rates                 4.50%                5.50%                4.50%               5.50%
-------------------------------------- --------------------- ------------------- ------------------ ------------------
Average expected life
(in years)                                       5.00                 5.00                 5.00                5.00
-------------------------------------- --------------------- ------------------- ------------------ ------------------
Volatility                                         82%                  74%                  82%                 74%
-------------------------------------- --------------------- ------------------- ------------------ ------------------

</TABLE>

The Company granted 20,000 options that vest over four years to an employee
during the nine months ended September 30, 2003 and granted 425,000 options to
employees during the nine months ended October 31, 2002 which vested in October
2003. The Company recorded an expense of $9,000 and $0 during the nine months
ended September 30, 2003 and October 31, 2002, respectively, for options granted
to a research consultant. During the nine months ended September 30, 2003, the
Company issued 15,000 shares of restricted stock to a third party non-employee
in lieu of cash payment for financial consulting services. The Company recorded
an expense of $15,000 for these shares issued.

8.  New Accounting Pronouncements

In January 2003, the FASB issued Interpretation No. 46 "Consolidation of
Variable Interest Entities" ("FIN 46"). FIN 46 explains the concept of variable
interest entity and requires consolidation by the primary beneficiary where the
variable interest entity does not have sufficient equity at risk to finance its
activities without additional subordinated financial support from other parties.
This interpretation applies immediately to any variable interest entities
created after January 31, 2003 and to variable interest entities in which an
interest is obtained after that date. A determination has been made that
although the lessor of its operating facility is a variable interest entity, the
Company is not the primary beneficiary. Under FIN 46 the lessor will not be
consolidated in the Company's consolidated balance sheet. The required
disclosures for this entity have been included in the Company's 10-KSB for the
fiscal year ended January 31, 2003.

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

                                       11
<PAGE>

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, government
regulation, our ability to manufacture the product at adequate levels at the
recently FDA approved Curacao facility and at the Lynbrook facility, changing
market conditions, the impact that delivery delays of our enzyme to Abbott will
have on the market for Collagenase Santyl(R) Ointment, the impact of competitive
products and pricing, the results of clinical trials for potential products, the
timely development and approval by the 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, 2003.

Summary

We are a biopharmaceutical company focusing on wound healing and tissue
remodeling. We manufacture Collagenase ABC enzyme, (the "enzyme") which is the
active ingredient in the prescription drug Collagenase Santyl(R) Ointment sold
in the United States and indicated for debriding chronic dermal ulcers and
second and third degree burns. We are developing an injectable form of our
enzyme for treating Dupuytren's disease, Peyronie's disease, frozen shoulder,
lipomas, and other conditions. We have initiated Phase 3 clinical trials for
Dupuytren's disease. A clinical trial for Peyronie's disease is scheduled for
December 2003. A Phase 2 trial for frozen shoulder is ongoing. Clinical trials
investigating the use of injectable collagenase for lipoma reduction have been
initiated.

The Company derives most of its net sales of the product and all of its royalty
revenues from one customer in the United States, Abbott Laboratories ("Abbott")
who, pursuant to an exclusive licensing agreement (the "Agreement"), compounds
the product into Collagenase Santyl(R) Ointment ("Santyl(R)" or "ointment"), a
prescription drug used to treat dermal ulcers and burns. The royalty revenues
from Abbott were earned on North American sales of Santyl(R) to distributors by
Smith & Nephew, Inc. ("S&N"). Historically, approximately 90% of our net sales
and all royalties are derived from Collagenase Santyl(R) Ointment sold in North
America.

The sub-license agreement under which Smith & Nephew marketed Santyl(R) ointment
terminated on June 30, 2003 but it was agreed they would continue to market
through the end of 2003. The Ross Products Division of Abbott Laboratories Inc.
will assume United States marketing responsibility for Collagenase Santyl(R)
Ointment effective January 1, 2004.

The Food and Drug Administration (FDA) notified us in writing on July 28, 2003
that our request to supplement our biologics license for collagenase ABC was
approved ("FDA approval"). The supplement included major renovations to the
manufacturing facility, utility systems, and process equipment at our Curacao
facility. The FDA notification acknowledged our written commitments to provide
additional information regarding ongoing studies and when to submit this
information to our biologics license for review.

With FDA approval, inventory manufactured at the Curacao facility can be
distributed to Abbott when the manufacturing process is completed. We did not
achieve our 2003 enzyme manufacturing and inventory

                                       12
<PAGE>

level goals due to manufacturing difficulties, but are working to solve such
difficulties and expect improvement in 2004.

In 1999, as a result of inspectional observations made by the FDA in Form 483
citing numerous deficiencies in the Company's compliance with FDA regulations at
its Lynbrook and Curacao facilities and at the contract manufacturing facility
used by the Company, the FDA advised the Company in a letter (the "FDA letter")
that it would revoke the Company's license to produce the enzyme and ointment
unless the Company could immediately provide satisfactory assurance to the FDA
(including submitting a comprehensive plan of corrective action) addressing the
FDA's observations and demonstrate compliance with the applicable regulations.
Regardless of the recent FDA approval described above, the FDA letter will
remain in effect until we demonstrate compliance with the applicable federal
standards and regulations, which the Company understands to be two "satisfactory
annual GMP inspections" of our Lynbrook and Curacao manufacturing facilities.
The Company believes it has made progress in complying with the applicable
federal standards and regulations, although there can be no assurances as to
when the FDA letter will be rescinded, if at all.

Revenues recorded for the six months ended July 31, 2002 were from sales of
stockpiled enzyme inventory to Abbott Laboratories ("Abbott"), which as contract
manufacturer makes Collagenase Santyl(R) Ointment (the "ointment"), and
royalties on distribution of the ointment in North America by Smith and Nephew,
Inc. ("S&N"). We depleted our stockpiled enzyme inventory available for use by
Abbott during the fiscal quarter ended July 31, 2002, and therefore had no sales
of product to Abbott from then until the middle of September 2003, when
deliveries of available enzyme resumed. Abbott's inventory of the ointment,
which it supplies to S&N for distribution and on which we earn royalties, was
depleted by the end of July 2003.

Since February 1, 2000, our revenues have been insufficient to cover our
expenses, and we expect operating losses to continue while we attempt to return
to normal manufacturing operations. The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going
concern, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. The carrying amounts of assets and
liabilities presented in the financial statements do not purport to represent
realizable or settlement values. The Company was dependent on the FDA approval
it received and has suffered operating losses over the period of Curacao
facility renovation. The Company currently has limited liquidity. These factors
raise substantial doubt about the Company's ability to continue as a going
concern. The consolidated financial statements do not include any adjustments
that might result from the outcome of those uncertainties.

On June 19, 2003, the Company entered into a financing transaction with Bio
Partners LP, a private investor group, pursuant to which the Company sold to Bio
Partners in a private placement (i) a $1.575 million convertible note, issued at
face value (the "12% Note"), and (ii) 295,312 restricted shares of Company
common stock, issued at par value, or $.001 per share. The net proceeds to the
Company were approximately $890,000, after the payment of loan expenses and
taking into account the aggregate $500,000 that was previously advanced to the
Company by a principal of Bio Partners. Based on operating projections made in
January 2003 and updated through November 2003, the Company projects that these
funds and funds provided by operations will enable it to continue operations at
least to December 31, 2003.

As of the date of this quarterly report, we have limited cash resources
available to fund our operations. Although we obtained FDA approval of our
Curacao manufacturing facility, we must obtain additional funding by the end of
2003, at which time our cash reserves will be nearly depleted based on our
projections. We are engaged in efforts to obtain more capital through various
alternatives. There can be no assurances that these efforts will be successful.

                                       13
<PAGE>

The Company was notified by The Nasdaq Stock Market that the Nasdaq Listing
Qualifications Panel (the "Panel") determined to continue the listing of the
Company's common stock on The Nasdaq SmallCap Market pursuant to the following
exception:

On or before August 14, 2003 and November 14, 2003, BioSpecifics must file the
Forms 10-QSB for the quarters ending June 30, 2003 and September 30, 2003,
respectively with the Securities and Exchange Commission and Nasdaq, evidencing
continued compliance with all requirements for continued listing on The Nasdaq
SmallCap Market.

The Panel reserved the right to terminate or otherwise modify the terms of this
exception subsequent to a review of BioSpecifics' publicly filed financial
statements. In order to fully comply with the terms of this exception,
BioSpecifics must be able to demonstrate compliance with all requirements for
continued listing on The Nasdaq SmallCap Market. In the event BioSpecifics fails
to comply with any of the terms of this exception, its securities will be
delisted from The Nasdaq SmallCap Market. BioSpecifics filed Form 10-QSB for the
quarter ended June 30, 2003 on August 14, 2003 and has filed this report on Form
10-QSB by November 14, 2003. There can be no assurances that BioSpecifics will
be able to continue to meet other requirements of continued Nasdaq listing.

Results of Operations

In March 2003 we changed our fiscal year end from January 31 to December 31. Our
first fiscal year using this new basis will be the eleven months ending December
31, 2003. In this report we compare the three and nine months ended September
30, 2003 to the three and nine months ended October 31, 2002, because it is not
practical to recast the prior period results into comparative periods ended
September 30, 2002. The eight months period ended September 30, 2003 is also
presented.

           THREE MONTHS ENDED SEPTEMBER 30, 2003 AND OCTOBER 31, 2002

Net Sales - Net sales include the sales of Collagenase ABC enzyme recognized at
the time it is shipped to customers, primarily Abbott. Net sales also include
fees we charge Abbott for testing Collagenase Santyl(R) Ointment it contract
manufactures. Net sales for the three months ended September 30, 2003 and
October 31, 2002 were $525,746 and $305,086, respectively, an increase of
$220,660 or 72%.

As a result of the FDA approval, we can distribute to Abbott enzyme inventory
manufactured at the renovated Curacao facility when the manufacturing process is
completed, which Abbott can then use to contract manufacture Collagenase
Santyl(R) Ointment. In September 2003, we delivered the first available enzyme
manufactured at the renovated Curacao facility to Abbott. As previously noted,
we depleted stockpiled enzyme inventory for Abbott during the fiscal quarter
ended July 31, 2002, and therefore had no sales of product to Abbott
subsequently, including the three months ended October 31, 2002. During the 2002
period, net sales of enzyme were to an international customer, to whom we have
sold limited amounts of enzyme produced at the renovated facility in Curacao,
though international sales have historically represented approximately 10% of
total revenues. During the three months ended September 30, 2003, there were no
sales to international customers and none are expected for the remainder of
2003. We expect more enzyme inventory to be available for delivery to Abbott in
December 2003, though there can be no assurances.

During the 2002 period, we earned higher testing fees because Abbott contract
manufactured more Collagenase Santyl(R) Ointment than in the 2003 period,
because we had and delivered to Abbott more of the stockpiled enzyme.

Royalties - Royalties for the three months ended September 30, 2003 and October
31, 2002 were $266,290 and $525,774 respectively, a decrease of $259,484 or 49%.
As previously noted, Abbott's inventory of Santyl(R) ointment, which it has
supplied to S&N for distribution and on which we earn

                                       14
<PAGE>

royalties, was depleted by the end of July 2003. Therefore, no royalties were
earned during August and September 2003.

In September 2003, we delivered the first available enzyme manufactured at the
renovated Curacao facility to Abbott, which Abbott contract manufactured into
Santyl(R) ointment. We expect this ointment to be distributed during 2003.
However, Santyl(R) sales during 2003 will be significantly lower than 2002
levels because of lack of sufficient enzyme, resulting in significantly lower
royalties. We expect Santyl(R) sales to continue to be negatively impacted in
2004, because we did not achieve our 2003 enzyme manufacturing and inventory
level goals due to manufacturing difficulties. We are working to solve
production difficulties and expect improvement in enzyme production levels in
2004 by adding new staffing, although there can be no assurances.

The sub-license agreement under which Smith & Nephew marketed Santyl(R) ointment
terminated on June 30, 2003 but it was agreed they would continue to market
through the end of the 2003. The Ross Products Division of Abbott Laboratories
Inc. will assume United States marketing responsibility for Collagenase
Santyl(R) Ointment effective Jan. 1, 2004.

Cost of Sales - Cost of sales for the three months ended September 30, 2003 and
October 31, 2002 were $754,983 and $455,040, respectively, an increase of
$299,943 or 66%, partially due to the higher level of net sales of enzyme
described above. We had a negative gross profit margin in both periods due to
fixed production costs. The recently approved Curacao facility has been in
limited production of enzyme inventory as we attempt to resume normal
operations. Enzyme produced for Abbott is work in process inventory that must
undergo additional processing.

General and administrative - General and administrative expenses for the three
months ended September 30, 2003 and October 31, 2002 were $759,348 and $896,740
respectively, a decrease of $137,392 or 15%. The decrease during the September
30, 2003 period is due to reduced legal and consulting professional fees.

Research and development - Research and development ("R&D") expense for the
three months ended September 30, 2003 and October 31, 2002 were $181,222 and
$253,563 respectively, representing a decrease of $72,341 or 29%. Costs incurred
during the more recent quarter represent mostly fixed costs for our R&D
department. We will need to raise considerable funds to continue the development
of Cordase(TM), our injectable collagenase for Dupuytren's disease, and other
potential product candidates.

Other income (expense), net - Other income (expense), net for the three months
ended September 30, 2003 and October 31, 2002 was ($102,826) and ($5,361)
respectively. The increase in other (expense) of $97,465 was primarily
attributable to interest expense on the 12% Note and the promissory note
totaling approximately $55,000 and amortization of the 12% Note discount of
approximately $35,000. The quarterly amortization of the loan costs of
approximately $32,000 is included in General and Administrative expenses.

Interest expense will be at these levels in future quarters due to the 12% Note
and the promissory note. See "Liquidity, Capital Resources and Changes in
Financial Condition".

Income tax benefit - We recorded no income tax benefit for the three months
ended September 30, 2003 and October 31, 2002 because of uncertainties with
respect to future utilization of net operating loss benefit.

            NINE MONTHS ENDED SEPTEMBER 30, 2003 AND OCTOBER 31, 2002

Net Sales - Net sales include the sales of Collagenase ABC enzyme recognized at
the time it is shipped to customers, primarily Abbott. Net sales also include
fees we charge Abbott for testing Collagenase

                                       15
<PAGE>

Santyl(R) Ointment it contract manufactures. Net sales for the nine months ended
September 30, 2003 and October 31, 2002 were $920,877 and $1,698,587,
respectively, a decrease of $777,710, or 46%.

As a result of the FDA approval, we can distribute to Abbott enzyme inventory
manufactured at the renovated Curacao facility when the manufacturing process is
completed, which Abbott can then use to contract manufacture Collagenase
Santyl(R) Ointment. In September 2003, we delivered the first available enzyme
manufactured at the renovated Curacao facility to Abbott

As previously noted, net sales recorded for the nine months ended October 31,
2002 were from delivery of stockpiled enzyme inventory to Abbott. We depleted
that stockpiled enzyme inventory for Abbott during the fiscal quarter ended July
31, 2002, and therefore had no sales of product to Abbott subsequent to
September 2003. During the 2003 period, we have sold limited amounts of enzyme
produced at the renovated facility in Curacao to an international customer,
though international sales have historically represented approximately 10% of
total revenues. We expect no further sales to international customers for the
remainder of 2003. We expect more enzyme inventory to be available for delivery
to Abbott in December 2003, though there can be no assurances.

During the 2002 period, we earned higher testing fees because Abbott contract
manufactured more Collagenase Santyl(R) Ointment than in the 2003 period,
because we had and delivered to Abbott more of the stockpiled enzyme.

Royalties - Royalties for the nine months ended September 30, 2003 and October
31, 2002 were $1,404,347 and $1,558,124 respectively, a decrease of $153,777 or
10%. As previously described, Abbott's inventory of Santyl(R) ointment, which it
has supplied to S&N for distribution and on which we earn royalties, was
depleted by the end of July 2003. Therefore, no royalties were earned during
August and September 2003.

In September 2003, we delivered the first available enzyme manufactured at the
renovated Curacao facility to Abbott, which Abbott contract manufactured into
Santyl(R) ointment. We expect this ointment to be distributed during 2003.
However, Santyl(R) sales during 2003 will be significantly lower than 2002
levels because of lack of sufficient enzyme, resulting in significantly lower
royalties. We expect Santyl(R) sales to continue to be negatively impacted in
2004, because we did not achieve our 2003 enzyme manufacturing and inventory
level goals due to manufacturing difficulties. We are working to solve
production difficulties and expect improvement in enzyme production levels in
2004 by adding new staffing, although there can be no assurances.

The sub-license agreement under which Smith & Nephew marketed Santyl(R) ointment
terminated on June 30, 2003 but it was agreed they would continue to market
through the end of the 2003. The Ross Products Division of Abbott Laboratories
Inc. will assume United States marketing responsibility for Collagenase
Santyl(R) Ointment effective January 1, 2004.

Cost of Sales - Cost of sales for the nine months ended September 30, 2003 and
October 31, 2002 were $1,901,184 and $2,338,551, respectively, a decrease of
$437,367 or 19%, partially due to the lower level of net sales of enzyme
previously described. We had a negative gross profit margin in both periods due
to fixed production costs. The recently approved Curacao facility has been in
limited production of enzyme inventory as we attempt to resume normal
operations. Enzyme produced for Abbott is work in process inventory that must
undergo additional processing.

General and administrative - General and administrative expenses for the nine
months ended September 30, 2003 and October 31, 2002 were $2,206,609 and
$2,419,334 respectively, a decrease of $212,725 or 9%. The decrease during the
September 30, 2003 period is due to reduced legal and consulting professional
fees, as well as reduced travel fees. During the nine months ended October 31,
2002, the Curacao facility was inspected by the FDA, which required substantial
travel and related costs.

                                       16
<PAGE>

Research and development - Research and development ("R&D") expense for the nine
months ended September 30, 2003 and October 31, 2002 were $616,978 and $914,907
respectively, representing a decrease of $297,929 or 33%. Costs incurred during
the more recent period represent mostly fixed costs for our R&D department. We
will need to raise considerable funds to continue the development of
Cordase(TM), our injectable collagenase for Dupuytren's disease, and other
potential product candidates.

Other income (expense), net - Other income (expense), net for the nine months
ended September 30, 2003 and October 31, 2002 was $(111,272) and $(14,666)
respectively. The increase in other (expense) of $96,606 was primarily
attributable to the interest expense on the 12% Note and the promissory note
totaling approximately $75,000 and amortization of the 12% Note discount of
approximately $35,000. The amortization of the loan costs of approximately
$32,000 is included in General and Administrative expenses.

Interest expense will be at these levels in future quarters due to the 12% Note
and the promissory note. See "Liquidity, Capital Resources and Changes in
Financial Condition".

Income tax benefit - We recorded no income tax benefit for the nine months ended
September 30, 2003 and October 31, 2002 because of uncertainties with respect to
future utilization of net operating loss benefit.

LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION

Our primary source of working capital is from operations, which includes sales
of product, testing fees, royalties, and periodic license fees, and borrowings.
At September 30, 2003, we had working capital of approximately $42,000. The
principal use of cash during the nine months ended September 30, 2003 was
approximately $1.4 million for operating activities. Sources of cash included
approximately $461,000 of repayments by our chairman of his notes, an increase
of $100,000 in short term debt, and proceeds from a $1,575,000 two year senior
secured convertible note bearing 12% interest, described below.

As of the date of this quarterly report, we have limited cash resources
available to fund our operations. Although we obtained FDA approval of our
Curacao manufacturing facility, we must obtain additional funding by the end of
2003, at which time our cash reserves will be nearly depleted based on our
projections. We are engaged in efforts to obtain more capital through various
alternatives. There can be no assurances that these efforts will be successful.

On June 19, 2003, the Company entered into a financing transaction with Bio
Partners LP, a private investor group, pursuant to which the Company sold to Bio
Partners in a private placement (i) a $1.575 million convertible note (the
"Note"), issued at face value, and (ii) 295,312 shares of Company common stock,
issued at par value, or $.001 per share. The net proceeds to the Company were
approximately $890,000, after the payment of loan expenses and taking into
account the aggregate $500,000 that was previously advanced to the Company by a
principal of Bio Partners.

The Note matures on June 19, 2005 and bears interest at a rate of 12% per annum.
Interest-only payments under the Note are payable monthly in arrears and the
entire principal amount is payable at maturity. Up to $1,141,875 aggregate
principal amount of the Note is convertible into the Company's common stock at
any time, at a conversion price of $2.50 per share, subject to customary
adjustments. The Note also contains restrictions on the Company's ability to
incur debt as long as the Note is outstanding. The Note is secured by a pledge
of substantially all of the assets of the Company and the Company's New York
subsidiary, Advance Biofactures Corporation ("ABC"). The Company has committed
to filing a registration statement for the common shares issued in connection
with the Note and issuable upon conversion of the Note. In addition, ABC has
guaranteed the obligations of the Company under the Note

                                       17
<PAGE>

and our chairman, Edwin H. Wegman, has personally guaranteed 50% of the
obligations of the Company under the Note. The loan discount of approximately
$281,000 and loan costs of approximately $258,000 on the Note will be amortized
over the two-year life of the Note.

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 the assets owned
by ABC-Curacao, including the upgraded facility's manufacturing assets with a
book value of approximately $3.4 million at September 30, 2003. BioSpecifics has
also guaranteed the Korpodeko loan. In September 2003, Korpodeko agreed to
modify the terms of the loan. Korpodeko will permit the Company will repay 20%,
or $91,000 of the loan principal in November 2003, and pay the remaining
principal, or $364,000 in November 2004. In return, the Company agreed to an
interest rate increase from 6.5% to 7.5% from November 2003 to the new maturity
in November 2004. On the consolidated balance sheet as of September 30, 2003,
short-term liabilities include the $91,000 due November 2003, and long-term
liabilities include the remaining $364,000 due November 2004. Long-term
obligations at September 30, 2003 include operating leases of approximately
$191,000 annually through January 2005. On March 11, 2003, we borrowed $100,000
from an individual lender, personally guaranteed by the Company's chairman and
evidenced by a one-year promissory note, bearing interest of 8% per annum. We
also granted to the lender warrants to purchase up to 10,000 common shares of
BioSpecifics at $1.18, the closing price on that day, until March 11, 2008. The
cost associated with these warrants, based on Black-Scholes methodology, is
$5,000 was recorded as interest expense for the three months ended March 31,
2003.

ITEM 3: CONTROLS AND PROCEDURES

Controls and Procedures.

As of the end of the period covered by this report, the Company conducted an
evaluation, under the supervision and with the participation of the principal
executive officer and principal financial officer, of the Company's disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934 (the "Exchange Act"). Based on this evaluation,
the principal executive officer and principal financial officer concluded that
the Company's disclosure controls and procedures are effective to ensure that
information required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in Securities and Exchange Commission rules
and forms. There was no change in the Company's internal control over financial
reporting during the Company's most recently completed fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting.

                           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 Changes in Financial Condition".

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     Exhibit 31.1   Certification Pursuant to Section 302 of the Sarbanes-Oxley
                    Act of 2002 by Edwin H. Wegman, Chief Executive Officer.

     Exhibit 31.2   Certification Pursuant to Section 302 of the Sarbanes-Oxley
                    Act of 2002 by Albert Horcher, Principal Accounting Officer.

                                       18
<PAGE>

     Exhibit 32.1   Certification Pursuant to 18 U.S.C. Section 1350 by Edwin H.
                    Wegman, Chief Executive Officer.

     Exhibit 32.2   Certification Pursuant to 18 U.S.C. Section 1350 by Albert
                    Horcher, Principal Accounting Officer.

     Form 8-K dated July 29, 2003, and Form 8-K dated August 1, 2003

                                       19
<PAGE>

<PAGE>

                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Securities 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:    November 14, 2003

By:  /s/ Edwin H. Wegman
    -----------------------------------
    Edwin H. Wegman
    Chairman, President, and
    Chief Executive Officer

Date:    November 14, 2003

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

                                       20