UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

        [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1999

        [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

        For the transition period from _______________to_________________

                         Commission file number: 0-22899

                          Wasatch Pharmaceutical, Inc.
               (Exact name of registrant as specified in charter)

               Utah                                          84-0854009
            ----------                                    -----------------
    State or other jurisdiction of                   (I.R.S. Employer I.D. No.)
    incorporation or organization


                    714 East 7200 South, Midvale, Utah 84047
               (Address of principal executive offices) (Zip Code)

                                 (801) 566-9688
                 Issuer's telephone number, including area code

                                 Not Applicable
              (Former name, former address, and former fiscal year,
                         if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed 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).  Yes [ ] No [X] and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the last practicable date.

         Class A Common Stock,  $.001- 12,840,821  isssued and outstanding as of
March 31,  1999  (This  amount  excludes  44,170  shares  paid for but  unissued
awaiting  appropriate issue  documentation and excludes 25,765,000 shares issued
to secure the Registrant's  obligations and subscription  receivable for 500,000
shares.)

<PAGE>

                         PART I - FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

         The Registrant's  unaudited financial  statements have been prepared in
accordance  with the  instructions  to Form  10-QSB  pursuant  to the  rules and
regulations of the Securities and Exchange  Commission  and,  therefore,  do not
include all information and foot notes necessary for a complete  presentation of
the financial  position,  results of operations,  cash flows, and  stockholder's
equity in conformity  with  generally  accepted  accounting  principles.  In the
opinion  of  management,   all  adjustments  considered  necessary  for  a  fair
presentation  of the results of  operations  and  financial  position  have been
included and all such adjustments are of a normal recurring nature.

         The unaudited balance sheet of the Registrant as of March 31, 1999, and
the related audited balance sheet of the Registrant as of December 31, 1997, the
unaudited  related  statements of operations  and cash flows for the three month
periods  ended March 31, 1999 and 1998 and from  inception  (September  7, 1989)
through  March 31, 1999,  are attached  hereto and  incorporated  herein by this
reference.

Operating  results  for the quarter  ended  March 31,  1999 are not  necessarily
indicative of the results that can be expected for the year ending  December 31,
1999.

The following financial statements are included in this report:

         Consolidated Balance Sheet as of March 31, 1999 and
           December 31, 1998............................................   F-1

         Consolidated Statements of Operations for the Quarter
           ended March 31, 1999, 1998 and from inception (September
           7, 1989) through March 31, 1999..............................   F-2

         Consolidated  Statements of Changes in Common  Stockholders'
           (Deficit) for the Quarter ended March 31, 1999 and from
           inception (September 7, 1989) through March 31, 1998.........   F-3

         Consolidated Statements of Cash Flows for the Quarter ended
            March 31, 1999, 1998, and from inception (September 7,
            1989) through March 31, 1999................................   F-4

         Notes to the Consolidated Financial Statements.................   F-5

                                       2
<PAGE>

ITEM 2. MANAGEMENT  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITIONS AND RESULTS
OF OPERATIONS

OVERVIEW

         The Company has  proprietary  technology  for the  treatment of various
common skin disorders,  including acne, eczema, and psoriasis.  After completing
successful clinical studies, prototype clinics were established with the goal of
duplicating  the success  rates  achieved  in the  clinical  environment  and to
establish  medical,   business  and  administrative  procedures  that  could  be
duplicated  in an Internet  network of patients and doctors and through  Company
clinics  across the country.  Two prototype  treatment  clinics are currently in
operation in Utah. Although the Company has confirmed the technology through the
successful  treatment of hundreds of patients  over the last three years and has
set up the business and administrative  procedures, the clinics have not reached
a profitable level due to the lack of funds for advertising and marketing.

         To this date, the Company has not had the resources to fully  implement
its  plan  for  the  development  and  expansion  of  its  Internet  and  clinic
operations.  Due to  the  lack  of  working  capital,  the  Company's  financial
statements contain a "going concern" disclosure,  which places into question the
Company's  ability to  continue  without  substantial  increases  in revenues or
additional long-term financing.

         The Company is seeking funding to establish an Internet presence,  open
additional clinics in major metropolitan areas and to launch a major advertising
and  marketing  campaign to support  each of its business  strategies.  Based on
successful  historical models,  management concludes that through direct patient
treatment on the Internet,  working with health insurance companies and HMOs and
supplemented  by a  physician  referral  program,  revenues  could be  increased
substantially  with the  infrastructure in place that is operating at 10% to 15%
of clinic capacity.

LIQUIDITY AND CAPITAL RESOURCES

         At March 31,  1999,  the  Company  had  current  assets of $10,866  and
current  liabilities  of  $3,357,138,  generating a working  capital  deficit of
$3,346,272,  which is a 14% increase from December 31, 1998. The increase in the
deficit is due to the Company's  operating loss of $227,502 for the  three-month
period ended March 31, 1999.  The deficit was financed  with new  borrowings  of
$275,185,  additional  shareholder investment of $7,213 and creditor forbearance
of $162,836.

RESULTS OF OPERATIONS

         For the three months ended March 31, 1999,  the Company had revenues of
$14,238, compared to revenues of $21,076 for the same period of 1998, a decrease
of 32%.  The  Company's  operating  expenses  decreased  $998 in the first three
months of 1999,  as compared to the first three months of 1998.  There was not a
comparable  decrease in expense  because the Company  maintains a core technical
and management  staff in anticipation of rapid growth.  The Company's  corporate
expenses  increased $4,600 to $84,108 and interest expense  increased $56,780 to
$92,000.  These  variations are  attributable to the timing of expenditures  for
fund raising  activities and the increasing  Company debt. For the first quarter
of 1999 the Company had a net loss of $227,502 compared to a loss of $160,287 in
the same period of 1998. The Company  anticipates  that the losses will continue
until funding is obtained to implement the Company's business plan.

                                       3
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

ITEM 2.  CHANGES IN SECURITIES

         During  the first  quarter  the  following  common  share  transactions
occurred:

         a.       Issued 30,000common shares to employees as stock bonus.
         b.       Issued  95,000  restricted  common  shares  to  creditors  for
                  extensions.
         c.       Issued  70,000  restricted  common  shares for cash totaling $
                  7,000
         d.       Issued 58,000 shares to creditors for loan fees.
         e.       Issued 30,000common shares to creditors as collateral on funds
                  advanced.

The common  shares were issued in reliance on the  exemption  from  registration
provided by Section 4 (2) of the Securities Act of 1934 and the "Safe Harbor" of
Regulation D, Rule 504.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES  - None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS  - None.

ITEM 5.  OTHER INFORMATION  - None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits.

         Exhibit
         Number:    Exhibit

           27       Financial Data Schedule (included only in the electronic
                    filing of this document).

     (b) Reports on Form 8-K  - None

                                       4
<PAGE>

SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

WASATCH PHARMACEUTICAL, INC.


Dated: April 18, 2000

By: /s/ David K. Giles
    -----------------------
    David K. Giles
    Principal Accounting Officer

                                       5
<PAGE>
<TABLE>
<CAPTION>
                          WASATCH PHARMACEUTICAL, INC.
                         (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEET
                      MARCH 31, 1999 AND DECEMBER 31, 1998

                                     ASSETS

                                                                                          1999               1998
                                                                                        ----------        ----------
                                                                                        (Unaudited)
CURRENT ASSETS
<S>                                                                                     <C>               <C>
     Cash                                                                               $      230        $    2,589
     Accounts receivable - trade                                                             3,142             7,175
     Inventory                                                                               6,894             7,158
     Prepaid expenses                                                                          600               600
                                                                                        ----------        ----------
Total Current Assets                                                                        10,866            17,522
                                                                                        ----------        ----------
PROPERTY AND EQUIPMENT
     Clinic and office equipment                                                            41,554            41,554
     Less accumulated depreciation                                                         (30,199)          (28,492)
                                                                                        ----------        ----------
        Net Property and Equipment                                                          11,355            13,062
                                                                                        ----------        ----------
OTHER ASSETS                                                                               200,200               200
                                                                                        ----------        ----------
TOTAL ASSETS                                                                            $  222,421        $   30,784
                                                                                        ==========        ==========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable - trade                                                           $  283,861        $  237,609
     Accrued interest                                                                      426,533           356,260
     Accrued salaries                                                                      361,978           291,114
     Payroll taxes                                                                          86,250            85,136
     Other accrued expenses                                                                 34,961            60,628
     Notes and advances currently due:
        Short-term shareholder advances                                                     25,776            18,157
        Vendors                                                                            112,333           112,333
        Stockholders                                                                     2,025,446         1,783,946
                                                                                        ----------        ----------
Total Liabilities                                                                        3,357,138         2,945,183
                                                                                        ----------        ----------
STOCKHOLDERS' DEFICIT
     Preferred stock, $0.001 par value, 1,000,000
        shares authorized 49,258 issued and outstanding                                         49                49
     Common stock, $0.001 par value, 50,000,000 shares
        authorized, 39,105,821 shares issued and outstanding                                39,106            38,823
     Additional paid-in capital                                                          1,329,026         1,322,096
     Accumulated development stage deficit                                              (4,452,133)       (4,224,632)
                                                                                        ----------        ----------
                                                                                        (3,083,952)       (2,863,664)

     Less shares issued for future transactions                                            (50,765)          (50,735)
                                                                                        ----------        ----------
Total Stockholders' Deficit                                                             (3,134,717)       (2,914,399)
                                                                                        ----------        ----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                             $  222,421        $   30,784
                                                                                        ==========        ==========
</TABLE>
 The accompanying footnotes are an integral part of this financial information

                                      F-1
<PAGE>
<TABLE>
<CAPTION>
                          WASATCH PHARMACEUTICAL, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENT OF OPERATIONS
                      ------------------------------------
                                   (Unaudited)

                                                               For the Quarter Ended
                                                                     March 31,                     From
                                                             --------------------------        Inception To
                                                               1999              1998          Mar. 31, 1999
                                                             ---------        ---------         -----------
REVENUES
<S>                                                            <C>              <C>               <C>
     Professional fee income                                   $ 4,281          $ 7,572           $ 218,368
     Product sales                                               9,957           13,504             431,133
                                                             ---------        ---------         -----------
             Total Revenues                                     14,238           21,076             649,501
                                                             ---------        ---------         -----------
OPERATING EXPENSES
     Cost of products sold                                         291            1,423              48,299
     Salaries                                                   36,266           36,809             515,836
     Employee leasing                                                -                -             218,745
     Payroll taxes                                               3,239            3,435              49,557
     Physicians fees                                             7,616           10,200             245,484
     Rent                                                       10,059           11,718             179,992
     Advertising                                                 1,487             (632)            214,039
     Depreciation                                                1,314            1,314              30,570
     Other                                                       5,359            2,362              62,848
                                                             ---------        ---------         -----------

             Total Operating Expenses                           65,631           66,629           1,565,370

GENERAL AND ADMINISTRATIVE EXPENSE                              84,108           79,514           2,484,169

INTEREST                                                        92,000           35,220             642,377
                                                             ---------        ---------         -----------
             Total Expenses                                    241,739          181,363           4,691,916
                                                             ---------        ---------         -----------
LOSS BEFORE DISCONTINUED OPERATIONS AND
     THE PROVISION FOR INCOME TAXES                           (227,502)        (160,287)         (4,042,416)

     LOSS FROM DISCONTINUED OPERATIONS                              -                -             (409,718)
                                                             ---------        ---------         -----------

NET LOSS BEFORE INCOME TAXES                                  (227,502)        (160,287)         (4,452,134)

     PROVISION FOR INCOME TAXES                                     -                -                   -
                                                             ---------        ---------         -----------

NET LOSS                                                    $ (227,502)      $ (160,287)        $(4,452,134)
                                                            ==========       ==========         ===========

     Loss per share before discounted operations            $   (0.017)      $   (0.016)        $   (0.347)
     Loss per share from discounted operation                       -                -                   -
                                                             ---------        ---------         -----------

BASIC LOSS PER COMMON  SHARE                                $   (0.017)      $   (0.016)         $   (0.347)
                                                            ==========       ==========          ==========
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING                   13,196,095       10,017,472          12,838,121
                                                            ==========       ==========          ==========
</TABLE>
 The accompanying footnotes are an integral part of this financial information

                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                          WASATCH PHARMACEUTICAL, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)

                                                                               For the Quarter Ended
                                                                                     March 31,                     From
                                                                            ---------------------------        Inception To
                                                                                1999             1998          Mar. 31, 1999
                                                                            ---------         ---------         -----------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                        <C>               <C>                 <C>
         Net loss                                                          $ (227,502)       $ (160,287)         $ (4,452,134)
     Adjustments to reconcile net (Loss) to net cash
         used by operating activities:
         Depreciation and depletion                                             1,707             1,706                30,199
     Depreciation and losses on fixed asset disposals
         Clinic assets                                                              -                 -                15,234
         Oil and gas assets                                                         -                 -                 4,189
     Loss on disposal of oil and gas properties                                                                       382,933
     Expenses paid with common shares                                                                43                     -
     Increase (decrease) in working capital                                                                                 -
         (Increase) decrease in receivables                                     4,033               305                (3,142)
         (Increase) decrease in related party receivable                            -                 -                     -
         (Increase) decrease in inventory                                         264              (770)               (6,894)
         (Increase) decrease in prepaid expenses                                    -            15,063                  (600)
         Increase (decrease) in accounts payable                               46,252            (5,532)              283,861
         Increase (decrease) in accrued interest                               70,273            32,647               426,533
         Increase (decrease) in other accruals                                 46,311             9,050               483,189
                                                                             --------          --------            ----------
         Net cash used by operating activities                                (58,662)         (107,775)           (2,836,632)
                                                                             --------          --------            ----------
CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of fixed assets                                                   -                 -               (27,764)
         (Increase) decrease in other assets                                 (200,000)                -              (200,200)
                                                                             --------          --------            ----------
         Net cash provided (used) by investing activities                    (200,000)                -              (227,964)
                                                                             --------          --------            ----------
CASH FLOWS FROM FINANCING ACTIVITIES
         Proceeds from borrowings                                             275,185           141,296             2,651,392
         Expenses paid by shareholder                                               -                 -                38,323
         Repayment of loans                                                   (26,065)          (42,572)             (482,856)
         Proceeds from sale of common shares                                    7,113            10,000               517,578
         Capital contributed by shareholder                                                           -               154,800
         Collection of share subscriptions                                          -            16,154               141,726
         Common shares exchanged for debt                                          70                 -                12,388
         Exercised stock options                                                    -                 -               125,250
         Redemption of common shares                                                -                 -               (20,409)
         Cost of raising capital                                                   -                 -                (73,366)
                                                                                   --                --            --------

         Net cash provided used by financing activities                       256,303           124,879             3,064,826
                                                                             --------          --------            ----------
NET INCREASE (DECREASE) IN CASH                                                (2,359)           17,104                   230
     Balance at beginning of period                                             2,589            14,259                     -
                                                                             --------          --------            ----------
     Balance at end of period                                                $    230          $ 31,362            $      230
                                                                             ========          ========            ==========
</TABLE>
 The accompanying footnotes are an integral part of this financial information

                                       F-3
<PAGE>
<TABLE>
<CAPTION>
                          WASATCH PHARMACEUTICAL, INC.
                          (A Development Stage Company)
            CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
            ---------------------------------------------------------
                                   (Unaudited)


                                                 Preferred       Common Stock           Additional      Accumulated        Total
                                                   Stock    ----------------------       Paid - In      Development    Stockholders'
                                                  Amount     Shares        Amount         Capital      Stage Deficit       Equity
                                                 ---------  ----------   ---------      ------------  ---------------    -----------
<S>                                                <C>     <C>          <C>            <C>            <C>              <C>
Balance forward December 31, 1998                  $ 49    38,822,821    $ 38,823       $ 1,322,096    $(4,224,631)    $(2,863,664)

Shares issued in connection with:
      Note extensions                                 -        70,000          70                 -              -              70
      Securities sold for cash                        -        70,000          70             6,930              -           7,000
      Services rendered                               -        83,000          83                 -              -              83
      Employee benefits                                        30,000          30                 -              -              30

Shares issued to potential investor to be used
   as interim loan collateral                         -        30,000          30                 -              -              30

Net loss for the quarter ended March 31, 1999         -             -           -                 -       (227,502)       (227,502)
                                                   ----    ----------    --------       -----------    -----------     -----------
Balance March 31, 1999 of stockholders'
      equity-per committed contracts                 49    39,105,821      39,106         1,329,026     (4,452,133)     (3,083,952)

      Less shares issued for future transactions      -   (26,265,000)    (26,265)          (24,500)             -         (50,765)
                                                   ----    ----------    --------       -----------    -----------     -----------

Net equity March 31, 1999                          $ 49    12,840,821    $ 39,055       $ 1,278,312    $(4,452,133)    $(3,134,717)
                                                   ====    ==========    ========       ===========    ===========     ===========
</TABLE>
 The accompanying footnotes are an integral part of this financial information

                                      F-4
<PAGE>

                          WASATCH PHARMACEUTICAL, INC.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                                 March 31, 1999
                                   (unaudited)

NOTE 1 - NATURE AND HISTORY OF THE BUSINESS

         The consolidated  financial statements include Wasatch  Pharmaceutical,
Inc. (a  development  stage  company)  (Wasatch or the Company),  and its wholly
owned subsidiaries,  Medisys Research Group, Inc. and American Institute of Skin
Care, Inc.

         Medisys  Research  Group,  Inc.,  a  Utah  corporation,  (Medisys)  was
incorporated  on  September  7, 1989 for the  purpose  of  developing  treatment
programs for various skin disorders.  On January 21, 1994, American Institute of
Skin Care,  Inc.  (AISC) was  incorporated  as a wholly owned Utah subsidiary of
Medisys to administer the skin treatment programs developed by Medisys.

         On December 29, 1995, Ceron Resources Corporation and Medisys completed
an  Agreement  and  Plan  of  Reorganization  whereby  Ceron  issued  85% of its
outstanding  shares  of  common  stock in  exchange  for all of the  issued  and
outstanding  common  stock  of  Medisys  and the  name was  changed  to  Wasatch
Pharmaceutical, Inc.

         The  acquisition of Medisys by Ceron was accounted for as a purchase by
Medisys because the shareholders of Medisys control the surviving company. There
was no adjustment to the carrying value of the assets or liabilities of Ceron in
as much as its market value  approximated  the carrying value of net assets.  In
summary,  Ceron is the  acquiring  entity for legal  purposes and Medisys is the
surviving entity for accounting purposes.

         For the purpose of this financial  presentation  "Inception" shall mean
September 7, 1989, which was the commencement of Medisys operations.

NOTE 2 - CHANGES IN PRESENTATION

         Certain financial presentations for the first quarter of 1998 have been
reclassified to conform to the 1999 presentation.

NOTE 3 - GENERAL AND ADMINISTRATIVE EXPENSES

         General and  administrative  expenses for the  comparative  three month
periods ended in 1999 and 1998 and from inception through March 31, 1999 are:

                                                            From Inception
                                      First  Quarter           To Mar. 31
                                  ----------------------     -------------
                                       1999       1998             1999
                                  ---------- ------------    -------------
         Officers' compensation     $40,439      $34,242       $1,015,564
         Professional services       35,742       13,289          279,675
         Finders fees                   145        7,250           41,380
         Travel                         569        4,647           73,689
         Telephone                     1241        3,639           62,317
         Insurance                                   455           15,912
         Postage                                     875           15,822
         Payroll tax penalties                         0           36,569
         Other                        6,372       15,119          943,239
                                  ---------- ------------    -------------
         Total                      $84,108      $79,514       $2,484,167
                                  ========== ============    =============

                                      F - 5
<PAGE>

                          WASATCH PHARMACEUTICAL, INC.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                                 March 31, 1999
                                   (unaudited)


NOTE  4 - GOING CONCERN PREMISE

         The  Company's  financial   statements  are  prepared  using  generally
accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business.  However,  the  Company  is in  the  development  stage  and  has  not
established a source of revenues  sufficient to allow it to continue to operate.
The Company is seeking an  agreement  to raise  short-term  funding and plans to
seek  long-term  funding  through a stock  offering.  Management  believes  that
sufficient  funding  will be raised to meet the  operating  needs of the Company
during the remainder of development stage.

                                       F-6