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, 2001

                                       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 incorporation              (I.R.S.) Employer
                                                          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 March 31, 2001 the Company had _________ outstanding shares of common
stock.



<PAGE>







                              ROYCE BIOMEDICAL INC.

                                  Vancouver, BC

                          INTERIM FINANCIAL STATEMENTS

                       For the Period Ended March 31, 2001




<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
March 31, 2001 and the interim statements of loss and deficit, changes in
shareholders' equity and cash flows for the period 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
April 24, 2001





<PAGE>



                                                                  Exhibit "A"
                                ROYCE BIOMEDICAL INC.
                                Interim Balance Sheet
                                     (Unaudited)
                                   March 31, 2001
                                    (US Dollars)

                                                   March 31,     June 30,
Assets                                                2001         2000
                                                   ---------     --------

Current:
   Cash                                        $     88,700   $  137,700
   Accounts receivable                                1,900          800
   Prepaid expenses and deposits                    100,500          500
                                                    -------    ---------

                                                    191,100      139,000
Product licence fees (Note 4)                             -            -
Loan receivable - Director (Note 5)                  84,700            -
                                               ------------    ---------

                                                $   275,800   $  139,000
                                                ===========   ==========

Liabilities

Current:
   Accounts payable and accrued liabilities       $  70,100    $  77,500
   Loan payable                                          --       50,000

                                                     70,100      127,500
Loan payable to related party                            --       37,500

                                                     70,100      165,000

Shareholders' Equity

Share Capital (Note 6)                               16,000       14,300
Contributed Surplus (Note 6)                      2,657,800    2,322,000
Deficit, per Exhibit "B"                         (2,468,100)  (2,362,300)

                                                    205,700      (26,000)
Going Concern (Note 7)
Commitments (Note 8)

                                                $   275,800  $   139,000

Approved by the Directors:

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

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

- See accompanying notes -

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                                                                  Exhibit "B"
                                ROYCE BIOMEDICAL INC.
                        Interim Statement of Loss and Deficit
                                     (Unaudited)
                      For the Nine Months Ended March 31, 2001
                                    (US Dollars)


                          Three Months Three Months  Nine Months  Nine Months
                             Ended        Ended         Ended       Ended
                           March 31,    March 31,     March 31,    March 31,
                            2001          2000          2001         2000
                          --------      --------     ----------    --------

Sales                     $    --       $    --      $     --      $52,000
Cost of sales                  --            --            --       19,900

Gross Margin                   --            --            --       32,100

Expenses:
   Consulting fees          6,500         7,700        31,300       65,800
   Office and sundry        3,200         1,000         5,200        2,000
   Professional fees       11,400        21,400        26,400       36,900
   Rent                       800         2,500         3,000        6,200
   Stock transfer agents'
    fees                      800           200         4,100        1,200
   Telephone                  400           500         1,200        1,000
   Travel and promotion     1,200         3,200         9,100       10,600
   Wages and benefits      10,500         7,600        25,500       26,200

                           34,800        44,100       105,800      149,900

Net Loss                  (34,800)      (44,100)     (105,800)    (117,800)
Deficit, beginning     (2,433,300)   (2,276,400)   (2,362,300)  (2,202,700)

Deficit, ending, to
  Exhibit "A"         $(2,468,100)  $(2,320,500)  $(2,468,100) $(2,320,500)

Loss per share        $     (0.01)  $     (0.01)  $     (0.03) $     (0.04)





- See accompanying notes -



<PAGE>




                                                                  Exhibit "C"
                              ROYCE BIOMEDICAL INC.
                    Interim Statement of Changes in Shareholders' Equity
                                   (Unaudited)
                    For the Nine Months Ended March 31, 2001
                                  (US Dollars)


                                     Common Shares         Contributed
                                 Shares      Amount      Surplus        Deficit

Balance, 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, March 31, 2000        3,364,138    $14,300     $2,322,000  $(2,320,500)


Balance, June 30, 2000          3,364,138   $14,300     $2,322,000  $(2,362,300)
Shares issued for cash          1,500,000     1,500        298,500
Shares issued for debt            187,545       200         37,300
Net Loss, per Exhibit "B"                                              (105,800)

Balance, March 31, 2001         5,051,683   $16,000     $2,657,800  $(2,468,100)


- See accompanying notes -


<PAGE>


                                                                  Exhibit "D"
                              ROYCE BIOMEDICAL INC.
                         Interim Statement of Cash Flows
                                   (Unaudited)
                    For the Nine Months Ended March 31, 2001
                                  (US Dollars)


                                                   Nine Months      Nine Months
                                                     Ended            Ended
                                                    March 31 ,       March 31,
                                                      2001             2000
                                                   -----------      ----------

Operating Activities:
   Net Loss, per Exhibit "B"                       $(105,800)       $(117,800)
   Adjustment for -
     Common shares issued for services rendered           --           16,600

                                                    (105,800)        (101,200)
   Changes in non-cash working capital -
     (Increase) Decrease in accounts receivable       (1,100)         (52,600)
     (Increase) Decrease in prepaid expenses and
          deposits                                  (100,000)         200,000
     Increase (Decrease) in accounts payable and
          accrued liabilities                         (7,400)         (14,400)
     Increase (repayment) of loan payable            (50,000)          50,000

                                                    (264,300)          81,800

Investing Activity:
   Increase in loan receivable                       (84,700)             --

Financing Activities:
   Decrease in loan to a related party                    --             (400)
   Shares issued for cash                            300,000               --

Cash flows from (used in) financing activities       300,000             (400)

Net Increase (Decrease) in Cash                      (49,000)          81,400
Cash, beginning                                      137,700           37,400

Cash, ending                                      $   88,700        $ 118,800

Supplemental Disclosure of Cash Flow Information:
   Non-cash transaction -
   187,750 common shares issued for $37,509 debt to a related party during 2001
   92,222 common shares were issued for $16,600 in services rendered during 2000



- See accompanying notes -

<PAGE>





                                                                  Exhibit "E"
                              ROYCE BIOMEDICAL INC.
                      Notes to Interim Financial Statements
                                   (Unaudited)
                                 March 31, 2001
                                  (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 accompanying unaudited interim financial statements have been prepared
    in accordance with generally accepted accounting principles and Form 10-QSB
    requirements. Accordingly, they do not include all of the information and
    footnotes required by generally accepted accounting principles for complete
    financial statements. In the opinion of management, the accompanying interim
    financial statements contain all the adjustments (consisting of only normal
    recurring accruals) necessary to present fairly the company's financial
    position as of March 31, 2001 and its results of operations for the three
    and nine month periods ending March 31, 2001 and its cash flows for the nine
    month period ending March 31, 2001. The results of operations for the
    interim periods are not necessarily indicative of the results to be expected
    for the fiscal year. For further information, refer to the financial
    statements and related footnotes for the year ended June 30, 2000 included
    in the company's annual report on Form 10-KSB.

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

2.  Accounting Policies:

    a)  Cash -

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

    b)  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.

    c)  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.


<PAGE>





                                                                  Exhibit "E"
                                ROYCE BIOMEDICAL INC.             Continued
                      Notes to Interim Financial Statements
                                   (Unaudited)
                                 March 31, 2001
                                  (US Dollars)




3.  Financial Instruments:

        Fair Values -

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

                                                   March 31,      June 30,
4.  Product Licence Fees:                             2001          2000
                                                   --------       -------

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

                                                  $    --        $    --
5.  Loan Receivable - Director:

    The company was a defendant in a lawsuit that arose from the company being
    enjoined in a claim by the plaintiff against a director of the company.
    During the period the lawsuit was settled by the director. The company
    assisted the director in the settlement through a loan of $84,667. The loan
    to the director is due April 9, 2002 and bears interest at 7.5% for the
    period June 9, 2001 to April 9, 2002.

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, June 30, 1999                 3,271,916    $14,000    $2,305,700
    Shares issued for services rendered       92,222        300        16,300

    Balance, June 30, 2000                 3,364,138     14,300     2,322,000
    Shares issued for cash                 1,500,000      1,500       298,500
    Shares issued for debt                   187,545        200        37,300

    Balance, March 31, 2001                5,051,683    $16,000    $2,657,800



<PAGE>


                              ROYCE BIOMEDICAL INC.                 Exhibit "E
                       Notes to Interim Financial Statements        Continued
                                   (Unaudited)
                                 March 31, 2001
                                  (US Dollars)



6.  Share Capital:  (Continued)

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

        Number of                  Exercise
        Warrants                    Price                  Expiry Date

         33,333                     $3.90                December 31, 2001
         83,333                      0.30                December 31, 2001
        7,500,000                    0.20                December 31, 2001
        2,000,000                    0.20                December 31, 2001
         50,000                      0.20                March 1, 2002

    At March 31, 2001, 176,666 (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.

    During the period, the following transactions affected share capital:

        1,500,000 shares were issued for $300,000 cash to provide working
        capital and to pay licence fees to export health test kits to China;

        187,545 shares were issued to a company related to one of the directors
        in satisfaction of a debt outstanding.

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 $70,954 in the current period and has an accumulated deficit of
    $2,433,250 at December 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.


<PAGE>

                              ROYCE BIOMEDICAL INC.                Exhibit "E
                          Notes to Interim Financial Statements     Continued
                                   (Unaudited)
                                 March 31, 2001
                                  (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 December 31, 2000,
    these amounts have not been repaid and are included in accounts payable and
    accrued liabilities.

9.  Related Party Transactions:  (Refer also to Note 6)

    In addition to the transactions described elsewhere in the financial
    statements, the company had the following transactions with officers, and
    directors of the company.

                                                            2001        2000
    Expenses -
        Consulting fees                                  $18,800     $22,500
        Wages                                             25,500      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
    $2,468,100 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:

                                                           2001        2000

    Deferred tax asset, beginning of year               $819,300    $767,600
    Benefit of current year's operating loss carried
    forward                                               37,000      41,200

    Deferred tax asset, end of period                    856,300     808,800

    Valuation allowance, beginning of year               819,300     767,600
    Current year's provision                              37,000      41,200

    Valuation allowance, end of year                     856,300     808,800

                                                        $     --    $     --


<PAGE>


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

      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. At the present
time the Company purchases medical diagnostic test systems from American
manufacturers.

      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 expects to receive
approximately $ 2.60 (net of product and distribution costs) from the sale of
each H. Pylori testing kit. Although the Company's goal is to sell at least
10,000 test kits to each hospital during the twelve months ending December 31,
2001, during the nine months ending March 31, 2001 the Company did not sell any
test kits.

      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 December 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 December 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 2.  Changes in Securities.

      During the nine months ended March 31, 2001 the Company:

o    sold  1,500,000  shares of common  stock to an  unrelated  third  party for
     $300,000 in cash, and
o    issued  187,545  shares  of  common  stock  in  settlement  of  $37,500  in
     liabilities.  The 187,545  shares were issued to a  corporation  affiliated
     with Ken Pappas, a director of the Company.

      The shares issued or sold during the nine months ended March 31, 2001 were
not issued under the Securities Act of 1933 but were issued or sold in reliance
upon the exemption provided by Section 4(2) of the Act. The persons who acquired
these shares were either accredited or sophisticated investors. The shares of
common stock were acquired for investment purposes only and without a view to
distribution. The persons who acquired these shares were fully informed and
advised about matters concerning the Company, including the Company's business,
financial affairs and other matters. The persons acquired these shares for their
own accounts. The certificates representing the shares of common stock bear
legends stating that the shares may not be offered, sold or transferred other
than pursuant to an effective registration statement under the Securities Act of
1933, or pursuant to an applicable exemption from registration. The shares are
"restricted" securities as 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, 2001.




<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:  May 9, 2001              By   /s/ Kathy Jiang
                                     ----------------------------------
                                     Kathy Jiang
                                     President and Principal Financial Officer