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: April 30, 1998

         [ ]      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: 4,891,146 shares of Common
Stock, $0.001 par value as of June 1, 1998


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



                                   Page 1 of 9


<PAGE>
                                      INDEX
                                      -----

                                                                            Page
                                                                            ----


PART I - FINANCIAL INFORMATION                                                3


Item 1.  Financial Statements                                                 3


Consolidated Financial Statements:


         Balance Sheets as of April 30, 1998 (unaudited) and January 31,      3
         1998


         Statements of Income for the Three Months Ended April 30, 1998
         and 1997 (unaudited)                                                 4



         Statements of Cash Flows for the Three Months Ended April 30,
         1998 and 1997 (unaudited)                                            5



         Notes to Consolidated Interim Financial Statements (unaudited)       6


         Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                                  7



SIGNATURES                                                                    9


                                        2


<PAGE>

                         PART I. FINANCIAL INFORMATION
                          Item 1. Financial Statements
                        
<TABLE>
<CAPTION>
                        
BioSpecifics Technologies Corp. and Subsidiaries                        
Consolidated Balance Sheets  
                   
                                                                         (Unaudited)             
                                                                          April 30,             January 31,
                                                                            1998                   1998
                                                                         ----------            ------------
<S>                                                                      <C>                     <C> 
ASSETS
Cash and cash equivalents                                                $4,667,626              $4,431,055
Marketable securities                                                     2,011,788               2,343,801
Accounts receivable                                                       1,250,424               1,312,997
Inventory                                                                 1,405,891               1,482,720
Deferred tax assets - net                                                   179,000                 179,000
Prepaid expenses & other current assets                                     442,249                 269,016
                                                                       ------------            ------------
   Total current assets                                                   9,956,978              10,018,589
                        
Property,  plant, and equipment - net                                       844,592                 873,600
Other assets                                                                288,119                 306,451
                                                                       ------------            ------------
                        
TOTAL ASSETS                                                            $11,089,689             $11,198,640
                                                                       ============            ============
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Accounts payable and accrued expenses                                      $961,562              $1,309,972
Notes payable to related parties                                             12,135                  12,010
Income taxes payable                                                         93,569                  61,840
Deferred revenue                                                            175,000                 175,000
                                                                       ------------            ------------
     Total current liabilities                                            1,242,266               1,558,822
                        
Minority interest in subsidiaries                                           224,248                 220,349
                        
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; 4,891,146 and 4,886,096 shares issued and out-                      
standing at April 30, 1998 and January 31, 1998, respectively                 4,891                   4,886
Additional paid-in capital                                                3,652,175               3,617,005
Retained earnings                                                         6,656,055               6,427,433
Cumulative translation adjustment                                            (3,284)                 (3,354)
                                                                       ------------            ------------
                                                                         10,309,837              10,045,970
Less: Treasury stock - 107,900 and 96,800 shares, at cost                  (686,662)               (626,501)
                                                                       ------------            ------------
    Stockholders' equity - net                                            9,623,175               9,419,469
                        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                              $11,089,689             $11,198,640
                                                                       ============            ============
</TABLE>

See accompanying notes to consolidated                  
financial statements.                   

                                       3
<PAGE>
Biospecifics Technologies Corp.
and Subsidiaries
Consolidated Statements of Income
<TABLE>
<CAPTION>
                                                                                          Unaudited
                                                                                      Three Months Ended
                                                                                            April 30,
                                                                                  1998                     1997
                                                                               ----------              ----------
<S>                                                                            <C>                       <C>     
Revenues:
   Net sales                                                                   $1,223,543                $858,810
   Royalties                                                                      484,115                 594,344
                                                                               ----------             -----------
                                                                                1,707,658               1,453,154
                                                                               ----------             -----------
Costs and Expenses:
   Cost of sales                                                                  546,757                 400,425
   Selling, general and administrative                                            429,835                 384,802
   Research and development                                                       421,818                 423,957
                                                                               ----------             -----------
                                                                                1,398,410               1,209,184
                                                                               ----------             -----------

Income from operations                                                            309,248                 243,970

Other income (expense):
   Investment and other income                                                     61,018                  62,599
   Interest expense                                                                (1,643)                   (599)
                                                                               ----------             -----------
                                                                                   59,375                  62,000
                                                                               ----------             -----------

Income before taxes and minority interest                                         368,623                 305,970
   Provision for income taxes                                                    (136,100)               (114,260)
                                                                               ----------             -----------
Income before minority interest                                                   232,523                 191,710
   Minority interest in net income of subsidiaries                                  3,900                   6,700
                                                                               ----------             -----------
Net income                                                                       $228,623                $185,010
                                                                               ==========             ===========

Basic net income per common share                                                   $0.05                   $0.04
                                                                               ==========             ===========

Weighted-average common shares outstanding                                      4,785,263               4,873,396
                                                                               ==========             ===========

Diluted net income per common share                                                 $0.05                   $0.04
                                                                               ==========             ===========

Weighted-average common and dilutive
potential common shares outstanding                                             4,921,768               4,892,247
                                                                               ==========             ===========

</TABLE>

See accompanying notes to consolidated
financial statements

                                       4

<PAGE>
BioSpecifics Technologies Corp. 
and Subsidiaries
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                                        (unaudited)                     
                                                                                    Three months ended                 
                                                                                           April 30,                     
                                                                                  1998                   1997        
                                                                             -------------          ------------     
<S>                                                                            <C>                     <C>     
 CASH FLOWS FROM OPERATING ACTIVITIES:                                      
 Net income                                                                    $228,623                $185,010
  Adjustments to reconcile net income 
    to cash provided by/(used by) operating activities:
    Depreciation                                                                 47,075                  46,674
    Loss on marketable securities - net                                          21,523                   8,502
    Minority interest in income of subsidiaries                                   3,900                   6,700
    Costs associated with issuance of common stock grants                        15,000                       -
  Changes in operating assets and liabilities:
   Accounts receivable                                                           62,573                (520,430)
    Marketable securities, net                                                  310,490                (139,735)
    Inventory                                                                    76,829                  37,279
    Prepaid and other current assets                                           (173,233)                102,481
    Other assets                                                                 18,332                  25,395
    Accounts payable & accruals                                                (348,410)                (61,569)
    Due to related parties                                                          125                     125
    Income taxes payable                                                         31,729                    (620)
    Cumulative translation adjustment                                                68                  (3,271)
                                                                             ----------              ----------
      Net cash (used) provided by operating activities                          294,624                (313,459)
                                                                             ----------              ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Expenditures for plant, property and equipment                                (18,067)                (31,854)
                                                                             ----------              ----------
      Net cash used in investing activities                                     (18,067)                (31,854)
                                                                             ----------              ----------

CASH FLOWS FROM FINANCING ACTIVITIES
Treasury stock purchases                                                        (60,161)                      -
Proceeds from stock option exercises                                             20,175                       -
                                                                             ----------              ----------
      Net cash used in financing activities                                     (39,986)                      -
                                                                             ----------              ----------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                236,571                (345,313)

  CASH AND CASH EQUIVALENTS:
  Beginning of Period                                                         4,431,055               3,793,582
                                                                             ----------              ----------
  End of Period                                                              $4,667,626              $3,448,269
                                                                             ==========              ==========
Supplemental disclosure of cash flow information:
  Cash paid during period for interest                                           $1,743                    $559
                                                                             ==========              ==========
  Cash paid during period for income taxes                                     $104,371                 $62,820
                                                                             ==========              ==========
</TABLE>

See accompanying note to consolidated
financial statements

                                       5


<PAGE>

                         BIOSPECIFICS TECHNOLOGIES CORP.
               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                                 APRIL 30, 1998
                                   (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.

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 substantially all of its revenues through a
license agreement with a major U.S. pharmaceutical company, Knoll Pharmaceutical
Company ("KPC"). 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 ABC, either as a topical product or an injectable, when permitted by
local governmental authorities. The Company sells relatively small amounts of
Collagenase ABC to pharmaceutical companies in Latin America and India.

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 April 30, 1998, the statements of income for the three months ended
April 30, 1998 and 1997, and statements of cash flows for the three months ended
April 30, 1998 and 1997. 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, 1998.

3. Basic and Diluted Income per Share - Basic earnings per share ("EPS")
excludes dilution and is computed by dividing earnings available to common
stockholders by the weighted-average number of common shares outstanding during
the periods of presentation. Diluted EPS reflects the dilution that would occur
if securities or other contracts to issue common stock were exercised or
converted into common stock or resulted in the issuance of common stock that
then shared in the earnings of the Company.

                                        6

<PAGE>

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
involves 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 product and pricing, the timely
development, approval by the FDA and foreign health authorities, and market
acceptance, of the Company's products in development, the Company's dependence
on KPC, 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, 1998. 

Three months ended April 30, 1998 and 1997
------------------------------------------

Net Sales - Net sales of Collagenase ABC for the three months ended April 30,
1998 and 1997 were $1,223,543 and $858,810, respectively, an increase of
$364,733 or 42%. Sales of Collagenase ABC to KPC and foreign licensees were
higher during the 1998 first fiscal quarter versus the 1997 first fiscal
quarter.

Royalties - Royalties for the three months ended April 30, 1998 and 1997 were
$484,115 and $594,344, respectively, a decrease of $110,229 or 19%. The decrease
was due to a decline in after-market sales of Collagenase ointment (Collagenase
Santyl ) in the United States by KPC during the 1998 first fiscal quarter, as
reported to the Company by KPC. The Company believes the decline to be
temporary, the result of unusually high sales of Collagenase Santyl by KPC in
the month of January 1998, which had a negative impact on sales of Collagenase
Santyl in the month of February 1998. As reported to the Company by KPC, sales
of Collagenase Santyl have resumed a more favorable pace.

Cost of Sales - Cost of sales for the three months ended April 30, 1998 and 1997
were $546,757 and $400,425, respectively, an increase of $146,332 or 37% due to
the higher level of sales in the first quarter of 1998.

                                       7
<PAGE>

Selling, general and administrative - Selling, general and administrative
("SG&A") expenses for the three months ended April 30, 1998 and 1997 were
$429,835 and $384,802, respectively, an increase of $45,033 or 12% due to higher
rental costs and professional fees.

Research and development - Research and development ("R&D") expense for the
three months ended April 30, 1998 and 1997 were $421,818 and $423,957
respectively, representing a slight decrease of $2,139 or 1%. The Company is
sponsoring U.S. clinical trials of its injectable collagenase for three disease
conditions. The Company is focusing its R&D on developing injectable collagenase
for certain disease conditions by sponsoring clinical trials in the United
States. The Company expects its current year (fiscal 1999) R&D expense to exceed
that of last year.

Other income, net - Other income, net for the three months ended April 30, 1998
and 1997 was $59,375 and $62,000 respectively. The decrease of $2,625 or 4% was
primarily attributable to fluctuations in interest rates which affect the fair
value of the Company's trading securities.

Provision for income taxes - The provision for income taxes for the three months
ended April 30, 1998 and 1997 was $136,100 and $114,260, respectively, an
increase of $21,840 or 19%. The higher provision in the current period was due
to more profitable operations.

LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION

The Company's primary source of working capital is from operations, which
includes sales of product, royalties, and new license fees. At April 30, 1998,
the Company had working capital of approximately $8.7 million which includes
cash and cash equivalents, and marketable securities of approximately $6.6
million. Net cash provided by operating activities during the quarter ended
April 30, 1998 was approximately $295,000. At April 30, 1998, the Company had
commitments for capital expenditures of approximately $150,000.

In view of the Company's working capital position and anticipated future
profitable operations, although there can be no assurance, management believes
that the Company has sufficient liquidity and capital resources to meet its
immediate operating needs. The Company believes that cash on hand and cash
provided by operations will be sufficient to meet its cash needs on an ongoing
basis.

                                       8


<PAGE>
                                   SIGNATURES



         In accordance with the requirements of the Securities Exchange Act of
1934, as amended, the Registrant caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


                                               BioSpecifics Technologies Corp.
                                                        (Registrant)



Date:    June 15, 1998
         -------------


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




Date:    June 15, 1998
         -------------


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


                                        9