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, 2000.

                                       OR

( )  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 0-29895


                             ROYCE BIOMEDICAL, INC.

       Nevada                                               98-0206542
State or other jurisdiction                              (I.R.S.)Employer
of incorporation                                         Identification No.

                             Royce Biomedical, Inc.
                           1100-1200 West 73rd Avenue
                       Vancouver, British Columbia V6P 6G5
                     Address of principal executive offices

                                 (604) 267-7080
                   -----------------------------------------
               Registrant's telephone number, including area code

                                       N/A
                  Former address of principal executive offices

Indicate by check mark whether the Registrant (1) has files 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)  and (2) had been  subject to such  filing
requirements for the past 90 days.

            Yes             X                        No    ________
                  ------------------

      As of June 15, 2000 the Company had 3,364,138 outstanding shares of common
stock.


<PAGE>


                              ROYCE BIOMEDICAL INC.

                                  Vancouver, BC

                          INTERIM FINANCIAL STATEMENTS
                                   (Unaudited)

                                 March 31, 2000



<PAGE>


                              ROYCE BIOMEDICAL INC.
                      INDEX TO INTERIM FINANCIAL STATEMENTS



Interim Balance Sheet                                             Exhibit "A"
Interim Statement of Loss and Deficit                             Exhibit "B"
Interim Statement of Changes in Shareholders' Equity              Exhibit "C"
Interim Statement of Cash Flows                                   Exhibit "D"
Notes to Interim Financial Statements                             Exhibit "E"



                          ---------------------------


<PAGE>




                                                                    Exhibit "A"
                              ROYCE BIOMEDICAL INC.
                              Interim Balance Sheet
                                   (Unaudited)
                                 March 31, 2000
                                  (US Dollars)


Assets                                                  2000          1999
---------------------------------------------------------------------------
Current:
   Cash                                        $     118,800         $ 100
   Accounts receivable                                52,600             -
   Prepaid expenses                                      500             -
---------------------------------------------------------------------------
                                                     171,900           100
Product licence fees (Note 4)                              -             -
---------------------------------------------------------------------------
                                                   $ 171,900         $ 100
---------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------
Current:
   Bank loan                                       $       -       $ 3,900
   Accounts payable and accrued liabilities           68,600        62,900
   Loan payable                                       50,000             -
---------------------------------------------------------------------------
                                                     118,600        66,800
Loan payable to a related party (Note 5)              37,500        36,800
---------------------------------------------------------------------------
                                                     156,100       103,600
---------------------------------------------------------------------------
Shareholders' Equity
---------------------------------------------------------------------------
Share Capital (Note 6)                                14,300         7,100
Contributed Surplus (Note 6)                       2,322,000     2,042,600
Deficit, per Exhibit "B"                          (2,320,500)   (2,153,200)
---------------------------------------------------------------------------
                                                      15,800      (103,500)
Going Concern (Note 7)
Commitments (Note 8)
---------------------------------------------------------------------------
                                                  $  171,900        $  100
---------------------------------------------------------------------------

- See accompanying notes -

<PAGE>


                                                                    Exhibit "B"
                              ROYCE BIOMEDICAL INC.
                      Interim Statement of Loss and Deficit
                                   (Unaudited)
                    For the Nine Months Ended March 31, 2000
                                  (US Dollars)


                                                        2000          1999
---------------------------------------------------------------------------
Sales                                          $      52,000      $      -
Cost of sales                                         19,900             -
---------------------------------------------------------------------------
Gross Margin                                          32,100             -
---------------------------------------------------------------------------
Expenses:
   Consulting fees                                    65,800        28,300
   Office and sundry                                   2,000         5,000
   Professional fees                                  36,900        15,800
   Rent                                                6,200        26,400
   Stock transfer agents fees                          1,200         1,100
   Telephone                                           1,000        11,400
   Travel and promotion                               10,600        13,500
   Wages and benefits                                 26,200        13,000
---------------------------------------------------------------------------
                                                     149,900       114,500
---------------------------------------------------------------------------
Net Loss                                            (117,800)     (114,500)
Deficit, beginning                                (2,202,700)   (2,038,700)
---------------------------------------------------------------------------
Deficit, ending, to Exhibit "A"                   (2,320,500)  $(2,153,200
---------------------------------------------------------------------------

Loss per share                                        $ 0.04        $ 0.03
---------------------------------------------------------------------------

<PAGE>


                                                                    Exhibit "C"
                              ROYCE BIOMEDICAL INC.
              Interim Statement of Changes in Shareholders' Equity
                                   (Unaudited)
                    For the Nine Months Ended March 31, 2000
                                  (US Dollars)


                                         Common Shares   Capital
                                   Shares      Amount    Surplus    Deficit
---------------------------------------------------------------------------
Balance at June 30, 1998         1,475,618  $  5,700   $1,796,600 $(2,038,700)
Shares issued for cash             220,000       200       95,200     -
Shares exchanged for debt to
  related parties                1,453,333     1,200      150,800     -
Net Loss, per Exhibit "B"               -         -          -      (114,500)
---------------------------------------------------------------------------
Balance at March 31, 1999        3,148,951  $  7,100   $2,042,600 $(2,153,200)
---------------------------------------------------------------------------

Balance at June 30, 1999         3,271,916   $14,000   $2,305,700 ($2,202,700)
Shares issued for services
  rendered                          92,222       300       16,300     -
Net Loss, per Exhibit "B"               -          -           -     (117,800)
---------------------------------------------------------------------------
Balance at March 31, 2000        3,364,138   $14,300   $2,322,000  $(2,320,500)
---------------------------------------------------------------------------

<PAGE>


                                                                    Exhibit "D"
                              ROYCE BIOMEDICAL INC.
                         Interim Statement of Cash Flows
                                   (Unaudited)
                    For the Nine Months Ended March 31, 2000
                                  (US Dollars)


                                                        2000          1999
---------------------------------------------------------------------------
Operating Activities:
   Net Loss, per Exhibit "B"                       $(117,800)    $(114,500)
   Adjustment for -
     Common shares issued for services rendered       16,600            -
---------------------------------------------------------------------------
                                                    (101,200)     (114,500)
Changes in non-cash working capital:
   (Increase) Decrease in accounts receivable        (52,600)           -
   (Increase) Decrease in prepaid expenses
     and deposits                                    200,000            -
   Increase (Decrease) in accounts payable and
     accrued liabilities                             (14,400)      (26,500)
---------------------------------------------------------------------------
Cash flows from (used in) operating activities        31,800      (141,000)
---------------------------------------------------------------------------
Financing Activities:
   Proceeds from issuance of common shares                -        247,400
   Repayment of bank loan                                 -         (2,300)
   Increase (Repayment) of loan payable               50,000       (30,000)
   Decrease loan from related party                     (400)      (74,100)
---------------------------------------------------------------------------
Cash flows from financing activities                  49,600       141,000
---------------------------------------------------------------------------
Net Increase in Cash                                  81,400            -
Cash, beginning                                       37,400           100
---------------------------------------------------------------------------
Cash, ending                                       $ 118,800       $   100
---------------------------------------------------------------------------

Supplemental Disclosure of Cash Flow Information:
   Interest                                        $      -        $   500

   Non-cash transaction -
     92,222 common shares were issued for $16,600 in services rendered


<PAGE>



                                                                    Exhibit "E"
                              ROYCE BIOMEDICAL INC.
                      Notes to Interim Financial Statements
                                   (Unaudited)
                                 March 31, 2000
                                  (US Dollars)


1.  Principles of Accounting and General Information:

    These financial  statements have been prepared in accordance with accounting
    principles generally accepted in the United States.

    The company was incorporated on March 22, 1995 under the jurisdiction of the
    State of Nevada.

2.  Accounting Policies:

    a)  Use of Estimates -

        The  preparation  of financial  statements in conformity  with generally
        accepted accounting principles requires management to make estimates and
        assumptions that affect the amounts reported in the financial statements
        and  accompanying  disclosures.  Although  these  estimates are based on
        management's  best  knowledge of current  events and actions the company
        may  undertake  in the  future,  actual  results  may  differ  from  the
        estimates.

    b)  Foreign Currency Translation -

        Assets and liabilities of Canadian operations are translated into United
        States  currency at exchange rates  prevailing at the balance sheet date
        for monetary items and at rates  prevailing at the transaction  date for
        non-monetary  items.  Revenue and  expenses,  except  amortization,  are
        converted at the average  exchange rates for the year.  Amortization  is
        converted at the same rate as the related assets.

        Foreign  exchange gains or losses on monetary assets and liabilities are
        included in operations.

    c)  Cash -

        Cash consists of bank accounts and short-term  deposits  integral to the
        company's cash management.

3.  Financial Instruments:

    a)  Fair Values -

        Unless otherwise noted, cash, accounts receivable,  accounts payable and
        accrued  liabilities,  loan payable and note payable to a related  party
        are stated at amounts that approximate their book value.

    b)  Liability Risk -

        The company does not have significant risk for the repayment of advances
        from a related party because under  agreements with related party,  they
        have agreed not to demand repayment.

                                                                      . . . 2


<PAGE>


                                                                    Exhibit "E"
                                ROYCE BIOMEDICAL INC.                Continued
                        Notes to Interim Financial Statements
                                     (Unaudited)
                                   March 31, 2000
                                    (US Dollars)


4.  Product Licence Fees:                           2000        1999
---------------------------------------------------------------------
    Product licence fees, at cost               $ 10,000    $ 10,000
    Less:  Accumulated amortization               10,000      10,000
---------------------------------------------------------------------
                                                $      -    $      -
---------------------------------------------------------------------

5.  Loan Payable to a Related Party:                2000        1999
---------------------------------------------------------------------
    Knight & Day Restaurants Ltd. -
        The loan payable has no specific
        repayment terms and
        is non-interest bearing.                $ 37,500    $ 36,800
---------------------------------------------------------------------

6.  Share Capital:

    Authorized -
  100,000,000  Common shares with a par value of $.001 each 5,000,000  Preferred
    shares with a par value of $.001 each

                                                      Common Shares  Contributed
    Issued and Outstanding -                 # Shares     Amount       Surplus
---------------------------------------------------------------------
    Balance at June 30, 1998                 1,475,618  $  5,700    $1,796,600
    Shares issued for cash                     220,000       200        95,200
    Shares exchanged for debt to related parties1,453,333  1,200       150,800
---------------------------------------------------------------------
    Balance March 31, 1999                   3,148,951     7,100     2,042,600
    Shares issued for private placement      6,666,667     6,900       263,100
    Reduction due to consolidation of 5 existing common
       shares into 1                        (6,543,702)    -             -
---------------------------------------------------------------------
    Balance at June 30,1999                  3,271,916    14,000     2,305,700
    Shares issued for services rendered         92,222       300        16,300
---------------------------------------------------------------------
    Balance at December 31, 1999             3,364,138   $14,300    $2,322,000
---------------------------------------------------------------------




                                                                      . . . 3


<PAGE>


                                                                    Exhibit "E"
                                ROYCE BIOMEDICAL INC.                Continued
                        Notes to Interim Financial Statements
                                     (Unaudited)
                                   March 31, 2000
                                    (US Dollars)


6.  Share Capital:  (Continued)

    The following options for the purchase of common shares are outstanding:

           Number of                 Exercise               Expiry
            Shares                    Price                  Date
---------------------------------------------------------------------
             10,000                 $10.50               May 22, 2000
             20,000                  10.50               August 15, 2000
             33,333                   1.50               December 31, 2000
             33,333                   3.90               December 31, 2001
             83,333                    .30               December 31, 2001

    At March 31, 2000, 183,333 common shares were restricted from trading.

    Granting of stock  options to  employees  and  directors  may give rise to a
    charge to income for  compensation.  In  accordance  with APB 25 under which
    stock  options are  measured by the  intrinsic  value  method,  employee and
    director  compensation  cost is limited  to the excess of the quoted  market
    price at date of grant over the option price.  Alternatively,  in accordance
    with  SFAS-123,  stock  options  could be valued  using a fair market  value
    method  such as the  Black-Scholes  option  pricing  model.  At the date the
    options were granted, there were no available market prices,  therefore,  it
    is not possible to determine the value of the options.

7.  Going Concern:

    While the financial statements have been prepared on the basis of accounting
    principles  applicable to a going  concern,  the  occurrence of  significant
    losses  to  date  raises   substantial  doubt  upon  the  validity  of  this
    assumption.

    The company  has  experienced  significant  losses over the past five years,
    including  $117,800 in the current period and has an accumulated  deficit of
    $2,320,500 at March 31, 2000. The company's  continued  existence as a going
    concern  is  dependent  upon its  ability  to  continue  to obtain  adequate
    financing arrangements and to achieve and maintain profitable operations.

    If the going concern  assumption  was not  appropriate  for these  financial
    statements,  then  adjustments  may be necessary  in the  carrying  value of
    assets  and  liabilities,  the  reported  net  loss  and the  balance  sheet
    classifications used.

    The company has  financed  its  activities  primarily  from the  proceeds of
    various  share issues and loans from related  companies.  As a result of the
    company  being in the early  stages of  operations,  the  recoverability  of
    assets on the balance  sheet will be dependent on the  company's  ability to
    obtain additional  financing and to attain a level of profitable  operations
    from the existing facilities in production and/or the disposition thereof.


                                                                      . . . 4


<PAGE>


                                                                    Exhibit "E"
                                ROYCE BIOMEDICAL INC.                Continued
                        Notes to Interim Financial Statements
                                     (Unaudited)
                                   March 31, 2000
                                    (US Dollars)


8.  Commitments:

    During the year ended June 30, 1997,  the company  issued shares to a number
    of investors in British Columbia, Canada at $1.42 ($2.00 Canadian). Pursuant
    to the British Columbia  Securities Act, an Offering  Memorandum should have
    accompanied the issuance of these shares. As they were not, the shareholders
    were  offered the  opportunity  to rescind the  purchase of the shares for a
    refund of the entire purchase price.  Requests from  shareholders to rescind
    14,250  common  shares were  received  within the required  time limit.  The
    company is required to refund an amount of $20,347. At March 31, 2000, these
    amounts  have not been  repaid and are  included  in  accounts  payable  and
    accrued liabilities.

9.  Related Party Transactions:

    In  addition  to the  transactions  described  elsewhere  in  the  financial
    statements,  the company had the  following  transactions  with officers and
    directors of the company.
                                                            2000        1999
------------------------------------------------------------------------------
    Expenses -
        Consulting fees                                  $36,600     $19,700
        Wages                                             26,200       -

    These  transactions  are in the normal course of operations and are measured
    at the exchange amount, which is the amount of consideration established and
    agreed to between the parties.

10. Income Taxes:

    The company has net losses for income tax purposes  totalling  approximately
    $2,310,700 which may be applied against future taxable income. The potential
    benefit  arising  from these  losses has been  recognized  as a deferred tax
    asset.  To the extent that those  benefits may not be realized,  a valuation
    allowance  is provided  for.  The  company's  deferred  tax  balances are as
    follows:

                                                            2000        1999
------------------------------------------------------------------------------
    Deferred tax asset, beginning of year               $767,600    $710,200
    Benefit of current year's operating loss carried forward52,500    40,100
------------------------------------------------------------------------------
    Deferred tax asset, end of period                    820,100     750,300
------------------------------------------------------------------------------
    Valuation allowance, beginning of year               767,600     710,200
    Current year's provision                              52,500      40,100
------------------------------------------------------------------------------
    Valuation allowance, end of year                     820,100     750,300
------------------------------------------------------------------------------
                                                   $      -     $      -
------------------------------------------------------------------------------



                                                                    . . . 5


<PAGE>



13

                                                                    Exhibit "E"
                                ROYCE BIOMEDICAL INC.                Continued
                        Notes to Interim Financial Statements
                                     (Unaudited)
                                   March 31, 2000
                                    (US Dollars)


11. Income Taxes:  (Continued)

    As the  company has no history of profits,  management  believes  that it is
    more  likely  than not some or all of the  deferred  tax  asset  will not be
    realized and has provided a full  valuation  allowance  against the deferred
    tax asset. The right to claim these losses expire as follows:

                              2010                      $173,000
                              2011                       599,000
                              2012                       748,000
                              2013                       509,000
                              2014                       164,000
                              2015                       149,900
                              2016                       117,800

12. Comparative Figures:

    Certain of the 1999  comparative  figures have been  reclassified  to comply
    with the current years' presentation.

13. Uncertainty Due to the Year 2000 Issue:

    The Year 2000 issue arises because many computerized  systems use two digits
    rather than four to identify a year.  Date-sensitive  systems may  recognize
    the  year  2000 as 1900  or  some  other  date,  resulting  in  errors  when
    information  using  year  2000  dates is  processed.  In  addition,  similar
    problems  may  arise in some  systems  which  use  certain  dates in 1999 to
    represent  something  other  than a date.  Although  the  change in date has
    occurred,  it is not possible to conclude  that all aspects of the Year 2000
    issue that may affect Royce  Biomedical  Inc.,  including  those  related to
    customers, suppliers, or other third parties, have been fully resolved.


<PAGE>


MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND  PLAN  OF
OPERATION

      At the present time the Company purchases medical  diagnostic test systems
from American  manufacturers.  In September 1999 the Company signed an agreement
with Chembio  Diagnostic Systems Inc. for the manufacture of H. Pylori and other
diagnostic testing kits.

      In April 1999 the Company  signed an  agreement  with Xili  Pharmaceutical
Group,  Inc. ("Xili") of the People's Republic of China to market and distribute
H. Pylori  diagnostic  test kits supplied by the Company to Xili's  customers in
China.  In  addition  to  supplying  H.  Pylori  test kits to Xili,  the Company
provides clinical data and in-person training to Xili personnel.

      In November 1999 Xili began distributing 20,000 sample H. Pylori test kits
supplied by the Company to 100 hospitals in China. The Company believes that the
hospital will use a minimum of 30 kits per day. The Company's goal is to sell at
least  10,000 test kits to each  hospital  during 2000.  The Company  expects to
receive  approximately $ 2.60 (net of product and  distribution  costs) from the
sale of each H. Pylori testing kit.

      During the twelve  month  period  ending  December  31, 2000 the  Company,
through Xili, plans to market H. Pylori test kits to other hospitals in China.

      The Company will analyze the results of first year sales of H. Pylori test
kits. If sales results are encouraging,  the Company plans to assemble H. Pylori
test kit components in China to reduce costs. In this regard Chembio  Diagnostic
Systems Inc. has indicated a willingness to sell to the Company, components that
would allow the assembly of H. Pylori and other  diagnostic kits in China.  Xili
has agreed to supply the required assembly space in one of their  pharmaceutical
manufacturing plants.

      The  Company  may also  attempt to acquire  the rights to  manufacture  H.
Pylori test kits in China. Rather than building its own manufacturing  facility,
the  Company  would  pursue  the  acquisition  of  a  subsidiary  of  Xili  that
manufactures pharmaceutical products.

      Utilizing  marketing  research  conducted  by  Xili,  the  Company,  if it
believes suitable  opportunities  exists, will attempt to acquire the rights and
licenses necessary to distribute other types of diagnostic test kits in China.

      The Company does not have any available  credit,  bank  financing or other
external sources of liquidity. Due to historical operating losses, the Company's
operations have not been a source of liquidity.  In order to obtain capital, the
Company may need to sell  additional  shares of its common stock or borrow funds
from private lenders. During the twelve months ending March 31, 2001 the Company
will need approximately  $4,000,000 in additional capital for the acquisition of
a  pharmaceutical   manufacturing  facility  that  will  allow  the  Company  to
manufacture  H. Pylori  test kits in China.  In  addition,  if during the twelve
months ending March 31, 2001, the Company suffers additional losses, the Company
will need to obtain additional  capital in order to continue  operations.  There
can be no assurance that the Company will be successful in obtaining  additional
funding.


<PAGE>

                                     PART II
                                OTHER INFORMATION


Item 1.  Legal Proceedings

      On February 2, 2000 Raymond Law filed suit in the Supreme Court of British
Columbia  seeking a judgment  against  the  Company  and Ken Pappas for  amounts
invested by Mr. Law in the Company and other  damages.  Mr. Law alleges that the
Company,  through Mr.  Pappas,  made  certain  misrepresentations  to Mr. Law in
connection  with the sale of the  Company's  securities  to Mr. Law and that the
Company  failed to employ Mr. Law as a salesman and grant Mr. Law the  exclusive
right to distribute the Company's products in Hong Kong.

Item 2.  Changes in Securities and Use of Proceeds

      During the three  months  ended March 31, 2000 the Company  issued  92,222
shares of its  common  stock to Greg  Sharpe,  an officer  of the  Company,  for
services  valued at $16,600.  The Company relied upon the exemption  provided by
Section 4 (2) of the Securities Act of 1933 in connection with the sale of these
shares of common stock. The shares  described above are "restricted  securities"
as that term is defined in Rule 144 of the Securities and Exchange Commission.

Item 6.  Exhibits and Reports on Form 8-K

(a)   Exhibits

      No exhibits are filed with this report

(b)   Reports on Form 8-K

      The Company did not file any reports on Form 8-K during the quarter ending
March 31, 2000.




<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.



                                   ROYCE BIOMEDICAL, INC.



Date:  June 14, 2000               By    /s/ Kathy Jiang
                                       -----------------------------------------
                                       Kathy Jiang
                                       President and Principal Financial Officer