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 SEPTEMBER 30, 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 of                    (I.R.S.) Employer
  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 September 30, 2000 the Company had 3,364,138  outstanding  shares of
common stock.


<PAGE>













                              ROYCE BIOMEDICAL INC.

                                  Vancouver, BC


                          INTERIM FINANCIAL STATEMENTS
                                   (unaudited)

                  For the Three Months Ended September 30, 2000






<PAGE>


                             ROYCE BIOMEDICAL INC.

                     INDEX TO INTERIM FINANCIAL STATEMENTS

Review Engagement Report
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>


                            REVIEW ENGAGEMENT REPORT

To The Directors of Royce Biomedical Inc.:

      We have reviewed the interim balance sheet of Royce  Biomedical Inc. as at
September 30, 2000 and the interim  statements  of loss and deficit,  changes in
shareholders'  equity and cash flows for the three months then ended. Our review
was made in accordance with generally  accepted standards for review engagements
and  accordingly  consisted  primarily  of enquiry,  analytical  procedures  and
discussion related to information supplied to us by the company.

      A review does not constitute an audit and  consequently  we do not express
an audit opinion on these financial statements.

      Based on our review,  nothing has come to our attention  that causes us to
believe  that  these  interim  financial  statements  are not,  in all  material
respects, in accordance with generally accepted accounting principles.



                                    "Cinnamon Jang Willoughby & Company"
                                          Chartered Accountants

Burnaby, BC
November 5, 2000


<PAGE>




                                                                   Exhibit "A"
                              ROYCE BIOMEDICAL INC.
                              Interim Balance Sheet
                                   (unaudited)
                               September 30, 2000
                                  (US Dollars)

                                               September 30,        June 30,
                                                     2000              2000
Assets
Current:
   Cash                                    $     154,001       $    137,655
   Accounts receivable                             1,354                824
   Inventory                                       1,020                 --
   Prepaid expenses                                  500                513

                                                 156,875            138,992
Product licence fees (Note 4)                         --                 --
                                           $     156,875       $    138,992

Liabilities
Current:
   Accounts payable and accrued liabilities  $    82,063         $   77,476
   Loan payable                                  100,000             50,000
                                                 182,063            127,476
Loan payable to a related party (Note 5)          37,509             37,509
                                                 219,572            164,985

Shareholders' Equity
Share Capital (Note 6)                            14,296             14,296
Contributed Surplus (Note 6)                   2,322,006          2,322,006
Deficit, per Exhibit "B"                      (2,398,999)        (2,362,295)
                                                 (62,697)           (25,993)
Going Concern (Note 7)
Commitments (Note 8)
                                           $     156,875       $    138,992


- See accompanying notes -


<PAGE>




                                                                   Exhibit "B"
                              ROYCE BIOMEDICAL INC.
                      Interim Statement of Loss and Deficit
                                   (unaudited)
                  For the Three Months Ended September 30, 2000
                                  (US Dollars)


                                        Three Months Ended    Three months Ended
                                        September 30, 2000    September 30, 1999

Sales                                        $      --           $       --
Cost of sales                                       --                   --

Gross Margin                                        --                   --

Expenses:
   Consulting fees                              10,500               45,555
   Office and sundry                               672                  927
   Professional fees                            10,622                3,500
   Rent                                          1,500                1,500
   Stock transfer agents fees                      611                   --
   Telephone                                       332                  305
   Travel and promotion                          4,967                3,190
   Wages and benefits                            7,500               12,650

                                                36,704               67,627

Net Loss                                       (36,704)             (67,627)
Deficit, beginning                          (2,362,295)          (2,202,710)

Deficit, ending, to Exhibit "A"            $(2,398,999)         $(2,270,337)


Loss per share                          $      ( 0.01)       $       (0.02)


- See accompanying notes -

<PAGE>


                                                                   Exhibit "C"
                              ROYCE BIOMEDICAL INC.
              Interim Statement of Changes in Shareholders' Equity
                                   (unaudited)
                  For the Three Months Ended September 30, 2000
                                  (US Dollars)


                                  Common Shares        Capital
                                 Shares    Amount      Surplus      Deficit
                                 ------    ------      -------      --------

Balance at June 30, 1999       3,271,916   $14,019   $2,305,683    $(2,202,710)
Shares issued for services
  rendered                        92,222       277       16,323             --
Net Loss, per Exhibit "B"             --        --           --        (67,627)

Balance at September 30,
  1999                         3,364,138   $14,296   $2,322,006    $(2,270,337)


Balance at June 30, 2000       3,364,138   $14,296   $2,322,006    $(2,362,295)
Net Loss, per Exhibit "B"             --        --           --        (36,704)

Balance at September 30,
  2000                         3,364,138   $14,296   $2,322,006    $(2,398,999)





- See accompanying notes -



<PAGE>


                                                                   Exhibit "D"
                              ROYCE BIOMEDICAL INC.
                         Interim Statement of Cash Flows
                                   (unaudited)
                  For the Three Months Ended September 30, 2000
                                  (US Dollars)

                                         Three Months Ended   Three months Ended
                                         September 30, 2000   September 30, 1999

Operating Activities:
   Net Loss, per Exhibit "B"                  $ (36,704)          $ (67,627)
   Adjustment for -
     Common shares issued for services
          rendered                                   --              16,600

                                                (36,704)            (51,027)
   Changes in non-cash working capital -
     (Increase) Decrease in accounts receivable    (530)               (218)
     (Increase) Decrease in inventory            (1,019)            (18,000)
     (Increase) Decrease in prepaid expenses         13             100,000
     Increase (Decrease) in accounts payable
          and accrued liabilities                 4,586              (7,648)
     Increase (Repayment) in loan payable        50,000                  --

Cash flows used in operating activities          16,346              23,107
Cash, beginning                                 137,655              37,400

Cash, ending                                   $154,001           $  60,507


Supplemental Disclosure of Cash Flow Information:

   Non-cash  transaction  - 92,222  common  shares  were  issued for  $16,600 in
services rendered during 1999



- See accompanying notes -


<PAGE>


                                                                 Exhibit "E"
                              ROYCE BIOMEDICAL INC.
                      Notes to Interim Financial Statements
                                   (unaudited)
                               September 30, 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 in 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.

    d)  Inventory -

        Inventory  is valued at the lower of cost and market  value and includes
        items held for resale.

3.  Financial Instruments:

    a)  Fair Values -

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



<PAGE>
                                                                 Exhibit "E"
                                                                  Continued
                              ROYCE BIOMEDICAL INC.
                     Notes to Interim Financial Statements
                                   (unaudited)
                               September 30, 2000
                                  (US Dollars)

    b)  Liability Risk -

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

                                                September 30,       June 30,
4.  Product Licence Fees:                           2000              2000
                                                -----------       ------------

    Product licence fees, at cost                $10,000           $10,000
    Less:  Accumulated amortization               10,000            10,000
                                                 $    --           $    --

                                                September 30,        June 30,
5.  Loan Payable to a Related Party:                2000              2000
                                                -------------     ------------

    Knight & Day Restaurants Ltd. -
        The loan payable has no specific
         repayment terms and is non-interest
         bearing.  (See Note 2(a)).              $37,509           $37,509

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, 1999                 3,271,916   $14,019   $2,305,683
    Shares issued for services rendered         92,222       277       16,323

    Balance at June 30, 2000 and
     September 30, 2000                      3,364,138   $14,296   $2,322,006

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

           Number of                Exercise                 Expiry
            Shares                   Price                    Date
           ---------                --------             -----------------

             33,333                  $1.50               December 31, 2000
             33,333                   3.90               December 31, 2001
             83,333                    .30               December 31, 2001




<PAGE>


                                                                 Exhibit "E"
                                                                  Continued
                              ROYCE BIOMEDICAL INC.
                     Notes to Interim Financial Statements
                                   (unaudited)
                               September 30, 2000
                                  (US Dollars)

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  $36,704 in the current period and has an  accumulated  deficit of
    $2,398,999 at September 30, 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.

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 September  30, 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.

                                      Three Months Ended    Three months Ended
                                       September 30, 2000    September 30, 1999
    Expenses -
        Consulting fees                   $7,500              $  7,500
        Wages                              7,500                12,650

    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.

<PAGE>

                                                                 Exhibit "E"
                                                                  Continued
                              ROYCE BIOMEDICAL INC.
                     Notes to Interim Financial Statements
                                   (unaudited)
                               September 30, 2000
                                  (US Dollars)


10. Income Taxes:

    The Company has net losses for income tax purposes  totalling  approximately
    $2,391,872 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               $819,265    $767,550
    Benefit of current year's operating
    loss carried forward                                  13,781      22,550

    Deferred tax asset, end of year                      833,046     790,100

    Valuation allowance, beginning of year               819,265     767,550
    Current year's provision                              13,781      22,550

    Valuation allowance, end of year                     833,046     790,100

                                                        $     --    $     --


    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                         508,976
                  2014                         163,944
                  2015                         159,585
                  2016                          39,372


11. Contingency:

    The Company is a defendant  in a lawsuit in which the  plaintiff is claiming
    $100,000 plus damages. It arose from the Company being enjoined in the claim
    by the plaintiff against a director of the company.

    The Company  does not  anticipate  that a loss will result;  accordingly  no
    provision has been made in the accounts for such occurrence.




<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 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 the twelve months ending December
31, 2001. The Company  expects to receive  approximately  $ 2.60 (net of product
and distribution costs) from the sale of each H. Pylori testing kit.

      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  September 30, 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 September 30, 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 6.  Exhibits and Reports on Form 8-K

(a)   Exhibits

      No.                              Description

      27                               Financial Data Schedule


(b)   Reports on Form 8-K

      The Company did not file any reports on Form 8-K during the quarter ending
September 30, 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:  November 27, 2000            By /s/ Kathy Jiang
                                       --------------------------------------
                                       Kathy Jiang
                                       President and Principal Financial Officer