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


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

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

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

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

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

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

Yes  x    No
    ---      --- 

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

      State the number of shares  outstanding of each of the issuer's classes of
common equity,  as of the latest  practicable  date:  4,884,896 shares of Common
Stock, $0.001 par value as of September 1, 1997.


                                  Page 1 0f 11


<PAGE>

                                      INDEX
                                      -----

                                                                           Page
                                                                           ----

PART I - FINANCIAL INFORMATION                                               3
                                                                          
                                                                          
Item 1.  Financial Statements                                                3
                                                                          
                                                                          
Consolidated Financial Statements:                                        
                                                                          
                                                                          
      Balance Sheets as of July 31, 1997 (unaudited) and January             3
      31, 1997                                                            
                                                                          
                                                                          
      Statements  of Income  for the Three  and Six  Months  Ended        
      July 31, 1997 and 1996 (unaudited)                                     4
                                                                          
                                                                          
      Statements  of Cash Flows for the Six Months  Ended July 31,        
      1997 and 1996 (unaudited)                                              5
                                                                          
                                                                          
      Notes to Consolidated Interim Financial Statements                     6
      (unaudited)                                                         
                                                                          
                                                                          
Item  2.   Management's   Discussion  and  Analysis  of  Financial        
Condition and Results of Operations                                          7
                                                                          
                                                                          
Part II - Other Information                                                 10
                                                                          
                                                                          
SIGNATURES                                                                  11
                                                                          












                                                                    
                                       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                                                          1997            1997
                                                        ------------    ------------
<S>                                                     <C>             <C>         
Cash and cash equivalents                               $  2,671,173    $  3,793,582
Marketable securities                                      2,329,420       1,812,974
Accounts receivable                                        1,359,973         900,956
Inventory                                                  1,524,820       1,339,081
Prepaid expenses & other current assets                      452,113         403,571
                                                        ............    ............
   Total current assets                                    8,337,499       8,250,164

Property,  plant, and equipment - net                      1,010,970         912,949
Other assets                                                 696,705         743,183
                                                        ............    ............

TOTAL ASSETS                                            $ 10,045,174    $  9,906,296
                                                        ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses                   $    516,822    $    540,899
Notes payable to related parties                              11,760          11,510
Income taxes payable                                          15,970          10,350
Deferred revenue                                             175,000         175,000
                                                        ............    ............
     Total current liabilities                               719,552         737,759

Minority interest in subsidiaries                            196,478         186,043

STOCKHOLDERS' EQUITY
Series A Preferred stock, $.50 par value; 700,000
  shares authorized; none outstanding                           --              --
Common stock, $.001 par value; 10,000,000 shares
  authorized; 4,883,396 shares issued and outstanding
  at July 31, 1997 and January 31, 1997                        4,883           4,883
Additional paid-in capital                                 3,586,145       3,586,145
Retained earnings                                          5,967,076       5,591,591
Cumulative translation adjustment                            (23,417)        (17,615)
                                                        ............    ............
                                                           9,534,687       9,165,004
Less: Treasury stock - 54,000 shares at cost at
July 31, 1997 and 10,000 shares at January 31, 1997         (405,543)       (182,510)
                                                        ............    ............
    Stockholders' equity - net                             9,129,144       8,982,494

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $ 10,045,174    $  9,906,296
                                                        ============    ============
</TABLE>


See accompanying notes to consolidated financial statements






                                       3


<PAGE>

Biospecifics Technologies Corp. and Subsidiaries
Consolidated Statements of Income

<TABLE>
<CAPTION>

                                                               (Unaudited)                (Unaudited)
                                                           Three months ended           Six months ended
                                                                  July 31,                    July 31,
                                                            1997           1996           1997            1996
                                                      ---------------------------------------------------------
<S>                                                     <C>          <C>            <C>             <C>       
Revenues:
   Net sales                                            $706,616     $1,150,458     $1,565,426      $2,000,661
   Royalties                                             543,775        726,844      1,138,119       1,197,141
   License fees                                               --         20,000             --          20,000
                                                      .........................................................
Total Revenues                                         1,250,391      1,897,302      2,703,545       3,217,802
                                                      ---------------------------------------------------------

Costs & Expenses:
   Cost of sales                                         249,612        454,371        650,037         851,670
   Selling, general and administrative                   390,485        356,103        775,287         723,549
   Research and development                              491,552        404,111        915,509         762,587
                                                      .........................................................
Total Costs & Expenses                                 1,131,649      1,214,585      2,340,833       2,337,806
                                                      ---------------------------------------------------------

Income from operations                                   118,742        682,717        362,712         879,996

Other income (expense)
  Investment & other income                              101,168         41,475        163,727          71,504
  Interest expense                                          (741)        (1,322)        (1,300)         (3,286)
                                                      .........................................................
Total other income - net                                 100,427         40,153        162,427          68,218
                                                      ---------------------------------------------------------

Income before provision for income taxes                 219,169        722,870        525,139         948,214
   Provision for income taxes                            (24,960)      (272,560)      (139,220)       (356,210)
                                                      .........................................................
Income before minority interest                          194,209        450,310        385,919         592,004
Less: minority interest in net income of subsidiaries      3,735         15,000         10,435          19,125
                                                      .........................................................
Net income                                              $190,474       $435,310       $375,484        $572,879
                                                      =========================================================



Net income per common share                                $0.04          $0.09          $0.08          $0.12
                                                      ========================================================


Weighted average number of shares used in
computing net income per share:                        4,919,332      4,925,543      4,905,790      4,921,558
                                                      ========================================================
</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,

                                                                1997           1996
                                                         -----------    -----------
<S>                                                      <C>            <C>        
CASH FLOWS FROM OPERATING ACTIVITIES:                                                              
  Net income                                             $   375,484    $   572,879
  Adjustments to reconcile net income
  to cash provided by/(used by) operating activities:
    Depreciation                                              94,274        100,257
    (Gain) loss on marketable securities - net               (27,075)        53,230
    Minority interest in income of subsidiaries               10,435         19,125
  Changes in operating assets & liabilities:
    Increase in accounts receivable                         (459,017)       (25,731)
    Proceeds from sales of marketable securities              10,890        749,421
    Purchases of marketable securities                      (500,261)      (294,825)
    Increase in inventory                                   (185,739)       (83,453)
    Increase in prepaid and other current assets             (48,542)       (35,121)
    Decrease in other assets                                  46,478         42,532
    Decrease in accounts payable & accruals                  (24,077)      (455,565)
    Increase in income taxes payable                           5,620        138,210
    Increase in due to related parties                           250            470
    Increase in cumulative translation adjustment             (5,802)          --
                                                         ...........    ...........
      Net cash provided (used) by operating activities      (707,082)       781,429
                                                         -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Expenditures for plant, property and equipment            (192,294)       (25,231)
                                                         ...........    ...........
      Net cash used in investing activities                 (192,294)       (25,231)
                                                         -----------    -----------

CASH FLOWS USED BY FINANCING ACTIVITIES:
  Treasury stock purchases                                  (223,033)          --
                                                         ...........    ...........
      Net cash used by financing activities                 (223,033)             0
                                                         -----------    -----------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS          (1,122,409)       756,198

  CASH AND EQUIVALENTS:
  Beginning of Period                                      3,793,582      2,288,316
                                                         ...........    ...........
  End of Period                                          $ 2,671,173    $ 3,044,514
                                                         ===========    ===========

SUPPLEMENTAL DISCLOSURE
  Cash paid during period for interest                   $     1,300    $     1,964
                                                         ===========    ===========
  Cash paid during period for income taxes               $   152,820    $   248,000
                                                         ===========    ===========

</TABLE>

See accompanying notes to consolidated financial statements


                                       5



<PAGE>

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

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

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

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

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

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







                                       6


<PAGE>

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

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

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

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

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
--------------------------------------------------------------------------------
Information  provided by the Company or  statements  contained in this report or
made by its employees,  if not historical,  is forward looking information which
involve  uncertainties  and risk.  The Company  cautions  readers that important
factors may affect the Company's  actual results and could cause such results to
differ  materially from  forward-looking  statements made by or on behalf of the
Company.  Such  factors  include,  but  are  not  limited  to,  changing  market
conditions,   the  impact  of  competitive  products  and  pricing,  the  timely
development and approval by the FDA and foreign health  authorities of potential
products, market acceptance of the Company's potential products, and other risks
detailed  herein and in other filings the Company makes with the  Securities and
Exchange Commission.  Further, any forward looking statement or statements speak
only as of the  date  on  which  such  statements  were  made,  and the  Company
undertakes no obligation to update any forward  looking  statement or statements
to reflect  events or  circumstances  after the date on which such  statement or
statements were made.

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

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

NET SALES - Net sales for the three  months  ended  July 31,  1997 and 1996 were
$706,616 and $1,150,458  respectively,  representing a $442,842 or 39% decrease.
The decrease was primarily due to lower sales of the Company's  Collagenase  ABC
enzyme product to KPC.  Although there can be no assurance,  the Company expects
higher sales of the product to KPC in the next fiscal quarter.





                                       7


<PAGE>

ROYALTIES -  Royalties  for the three  months  ended July 31, 1997 and 1996 were
$543,775 and $726,844  respectively,  representing  a $183,069 or 25%  decrease.
During the three months ended July 31, 1997,  KPC announced a price increase for
Collagenase Santyl(R), effective the end of July 1996. KPC's customers responded
by buying  record  amounts  during  June and July 1996,  in advance of the price
increase.  In the subsequent 1996 quarter,  sales  declined.  There was no price
increase  announced  in  1997,  and  sales  of  Collagenase  Santyl(R)  are more
consistent quarter to quarter, as reported to the Company by KPC.

LICENSE  FEES - The Company  earned a license fee during the quarter  ended July
31, 1996 due to a product  distribution  agreement with a German  pharmaceutical
company.  There were no license  fees earned  during the quarter  ended July 31,
1997 period.

COST OF SALES - Cost of sales for the three  months ended July 31, 1997 and 1996
were $249,612 and $454,371 respectively, representing an decrease of $204,759 or
45%, due to lower net sales.

SELLING,  GENERAL  AND  ADMINISTRATIVE  - Selling,  general  and  administrative
("SG&A")  expenses  for the  three  months  ended  July 31,  1997 and 1996  were
$390,485 and $356,103 respectively, representing an $34,382 or 10% increase. The
increase was primarily due to higher professional fees.

RESEARCH AND  DEVELOPMENT - Research and  development  ("R&D")  expenses for the
three  months  ended  July  31,  1997  and  1996  were   $491,552  and  $404,111
respectively,  representing  an increase of $87,441 or 22%. The increase was due
to the costs associated with advancing clinical trials in the U.S., particularly
for Dupuytren's disease and Peyronie's  disease. In Europe,  clinical trials are
underway to support applications for marketing approval for various countries in
the European Union. The Company expects R&D expenses to equal or possibly exceed
the level incurred in the current quarter.

OTHER INCOME - NET - Other income - net for the three months ended July 31, 1997
and 1996 was $100,427 and $40,153 respectively.  The increase of $60,274 was due
primarily  to  increasing  value  of fixed  income  securities  held as  trading
security investments by the Company, resulting from lower interest rates.

PROVISION FOR INCOME TAXES - The provision for income taxes for the three months
ended July 31, 1997 and 1996 was $24,960 and $272,560  respectively,  a decrease
of $247,600. The decrease was due to lower profitability of the Company's United
States  subsidiary,  primarily  as a  result  of lower  net  sales  and  royalty
revenues.  The  principal  reason for the  difference  between the United States
Federal statutory tax rate of 34% and the Company's effective tax rate is due to
a 2% income tax rate applicable to earnings of the Company's primary  production
facility in Curacao.











                                       8

<PAGE>



                     Six months ended July 31, 1997 and 1996
                     ---------------------------------------

NET SALES - Net  sales  for the six  months  ended  July 31,  1997 and 1996 were
$1,565,426 and $2,000,661 respectively, representing a $435,235 or 22% decrease.
The  decrease in net sales was  primarily  due to lower  sales of the  Company's
Collagenase  ABC enzyme product to KPC. Although there can  be no assurance, the
Company expects higher sales of the product to KPC in the next fiscal quarter.

ROYALTIES  -  Royalties  for the six months  ended  July 31,  1997 and 1996 were
$1,138,119 and $1,197,141  respectively,  representing a $59,022 or 5% decrease,
due to lower sales of Collagenase Santyl(R) in the United States, as reported to
the Company by KPC, for reasons explained above.

LICENSE FEES - The Company earned a license fee during the six months ended July
31, 1996 due to a product  distribution  agreement with a German  pharmaceutical
company.  There were no license  fees earned in the six month  period ended July
31, 1997.

COST OF SALES - Cost of sales for the six months  ended  July 31,  1997 and 1996
were $650,037 and $851,670 respectively,  representing a decrease of $201,633 or
24% due to lower net sales as described above.

SELLING,  GENERAL AND  ADMINISTRATIVE  - SG&A  expenses for the six months ended
July 31, 1997 and 1996 were $775,287 and $723,549  respectively,  representing a
$51,738 or 7% increase.  The increase was due  primarily to higher  professional
fees incurred in the more recent six months.

RESEARCH AND  DEVELOPMENT  - R&D expenses for the six months ended July 31, 1997
and 1996 were $915,509 and $762,587  respectively,  representing  an increase of
$152,922 or 20%.  The increase was due to the costs  associated  with  advancing
clinical trials in the U.S., particularly for Dupuytren's disease and Peyronie's
disease.  The Company expects R&D expenses to equal or possibly exceed the level
incurred in the current six month period.

OTHER  INCOME - NET - Other  income - net for the six months ended July 31, 1997
and 1996 was $162,427 and $68,218 respectively.  The increase of $94,209 was due
primarily to the  increasing  value of fixed income  securities  held as trading
security investments by the Company, resulting from lower interest rates.










                                       9


<PAGE>


PROVISION  FOR INCOME TAXES - The  provision for income taxes for the six months
ended July 31, 1997 and 1996 was $139,220 and $356,210 respectively,  a decrease
of $216,990. The decrease was due to lower profitability of the Company's United
States  subsidiary,  primarily  as a  result  of lower  net  sales  and  royalty
revenues,  explained previously. The principal reason for the difference between
the United States Federal statutory tax rate of 34% and the Company's  effective
tax rate is due to a 2% income tax rate  applicable to earnings of the Company's
primary production facility in Curacao.

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

The Company's  primary source of working  capital is from operating  activities,
including  sales,  royalties,  and new license  fees.  As of July 31, 1997,  the
Company had working capital of approximately  $7,617,000 which included cash and
cash  equivalents and marketable  securities of  approximately  $5,000,000.  The
principal   use  of  cash  during  the  six  months  ended  July  31,  1996  was
approximately  $707,000  for  operating  activities,   expenditures  for  plant,
property and  equipment of  approximately  $192,300 and  repurchases  of Company
stock of  approximately  $233,000.  At July 31, 1997 the Company had no material
commitments for capital expenditures.

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

                           PART II - OTHER INFORMATION


Item 4.  Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

(a.)  The annual meeting of stockholders  was held July 16, 1997. The purpose of
the meeting was to elect two  directors of the Company and approve the Company's
1997 Stock Option Plan.

(b.)  The directors elected at the  stockholders'  meeting were Thomas L. Wegman
and Paul A. Gitman,  MD., whose terms expire in 2000. The other  directors whose
terms of office as director  continued  after the  meeting are Henry  Morgan and
Sherman  Vogel,  whose terms of office  expire in 1998,  and Edwin H. Wegman and
Rainer Friedel, MD., whose terms of office expire in 1999.

The Company's 1997 Stock Option plan was approved by a vote of the stockholders.





                                       10


<PAGE>

                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

   
                                        BioSpecifics Technologies Corp.
                                                (Registrant)



Date: September 12, 1997



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




Date: September 12, 1997



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
















                                       11