<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q
                                QUARTERLY REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


FOR THE QUARTER ENDED                                  Commission File Number
JUNE 30, 1997                                                 0-20963
-------------                                                 -------



                          UROQUEST MEDICAL CORPORATION
             (Exact name of Registrant as specified in its charter)


DELAWARE                                    59-3176454
(state or other jurisdiction                (IRS Employer Identification Number)
of incorporation or organization)

            173 CONSTITUTION DRIVE, MENLO PARK, CALIFORNIA    94025
               (Address of principal executive offices)     (Zip Code)


                                 (415) 463-5180
              (Registrant's telephone number, including area code)



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), and (2) has been subject to such filing
requirements for the past 90 days.

Yes [x]     No [ ]

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



            Class                                   Outstanding at July 18, 1997
-----------------------------                       ----------------------------
Common Stock, $.001 par value                               11,844,602


<PAGE>   2
                                      INDEX



PART I - FINANCIAL INFORMATION

   Item 1 - Consolidated Financial Statements

            Consolidated Statements of Operations for the Three Months and the
            Six Months Ended June 30, 1997 (unaudited) and June 30, 1996
            (unaudited)

            Consolidated Balance Sheets as of June 30, 1997 (unaudited) and
            December 31, 1996

            Consolidated Statements of Cash Flows for the Six Months Ended June
            30, 1997 (unaudited) and June 30, 1996 (unaudited)

            Notes to Consolidated Financial Statements (unaudited)


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




PART II - OTHER INFORMATION

      Item 1 - Legal Proceedings
      Item 2 - Changes in Securities
      Item 3 - Default upon Senior Securities
      Item 4 - Submission of Matters to a Vote of Security Holders 
      Item 5 - Other information 
      Item 6 - Exhibit and Report on Form 8-K

Signature Page

<PAGE>   3
                          UROQUEST MEDICAL CORPORATION
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                           ASSETS                    June 30,         December 31,
                                                      1997                1996
                                                   ------------       ------------
                                                    (unaudited)
<S>                                                <C>                <C>         
Current assets:
    Cash ....................................      $ 12,040,637       $ 12,694,047
    Accounts receivable, net of
       allowance for doubtful accounts ......         2,496,119          2,161,849
    Inventories (note 3) ....................         2,814,423          2,622,812
    Prepaid expenses and other current assets           267,205            226,040
    Income tax receivable ...................                 -            145,808
    Deferred income taxes ...................           132,000            124,000
                                                   ------------       ------------
      Total current assets ..................        17,738,119         17,974,556
                                                   ------------       ------------

Property and equipment, net .................         4,449,460          4,542,950

Intangibles, at cost, less accumulated
   amortization .............................        12,106,851         12,522,011
                                                   ------------       ------------

      Total assets ..........................      $ 34,306,695       $ 35,039,517
                                                   ============       ============

                 LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Notes payable under line of credit ......      $          -       $    150,000
    Current portion of long-term debt .......           462,559            442,364
    Accounts payable ........................           788,692            721,984
    Accrued compensation ....................                 -            146,460
    Accrued selling and distribution expenses           137,500            137,500
    Other accrued expenses ..................           536,306            384,958
    Severance accrual .......................         1,572,180                  -
                                                   ------------       ------------
      Total current liabilities .............         3,497,237          1,983,266
                                                   ------------       ------------

Long-term liabilities:
    Long-term debt ..........................         1,549,426          1,787,437
    Deferred income taxes ...................           819,500            782,500
                                                   ------------       ------------
      Total long-term liabilities ...........         2,368,926          2,569,937
                                                   ------------       ------------

Shareholders' equity:
    Voting common stock, $.001 par value;
       31,000,000 shares authorized;
       11,844,602 shares issued and
       outstanding as of March 31, 1997
       and December 31, 1996 ................            11,845             11,845
    Additional paid-in capital ..............        36,203,903         36,203,483
    Deferred compensation ...................           (51,666)           (62,706)
    Accumulated deficit .....................        (7,723,550)        (5,666,308)
                                                   ------------       ------------
      Total stockholders' equity ............        28,440,532         30,486,314
                                                   ------------       ------------

      Total liabilities and stockholders'
        equity ..............................      $ 34,306,695       $ 35,039,517
                                                   ============       ============
</TABLE>

See accompanying notes to consolidated financial statements.







<PAGE>   4
                          UROQUEST MEDICAL CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                    Three months ended June 30,            Six months ended June 30,
                                  -------------------------------       -------------------------------
                                      1997               1996               1997               1996
                                  ------------       ------------       ------------       ------------
<S>                               <C>                  <C>              <C>                 <C>        
Net sales ..................      $  3,985,780         $        -       $  7,660,378        $         -

Cost of sales ..............         2,195,524                  -          4,062,087                  -
                                  ------------       ------------       ------------       ------------
  Gross profit .............         1,790,256                  -          3,598,291                  -
                                  ------------       ------------       ------------       ------------

Operating expenses:
  Research and development .           711,977            261,361          1,295,296            539,183
  General and administrative           936,932            104,178          1,717,062            225,016
  Sales and marketing ......           420,288             (1,785)           799,802             45,787
  Severance costs ..........         1,600,000                  -          1,600,000                  -
  Amortization of goodwill .           157,356                  -            328,637                  -
                                  ------------       ------------       ------------       ------------
    Total operating expenses         3,826,553            363,754          5,740,797            809,986
                                  ------------       ------------       ------------       ------------

Operating loss .............        (2,036,297)          (363,754)        (2,142,506)          (809,986)

Other income (expense):
  Interest expense .........           (47,391)           (11,700)           (98,408)           (23,400)
  Interest income ..........           152,807              5,413            294,213             16,552
                                  ------------       ------------       ------------       ------------
                                       105,416             (6,287)           195,805             (6,848)

Loss before taxes ..........        (1,930,881)          (370,041)        (1,946,701)          (816,834)

Provision for income taxes .            35,000                  -             82,000                  -
                                  ------------       ------------       ------------       ------------

     Net loss ..............      $ (1,965,881)      $   (370,041)      $ (2,028,701)      $   (816,834)
                                  ============       ============       ============       ============


Net loss per share .........      $      (0.17)      $      (0.08)      $      (0.17)      $      (0.18)
                                  ============       ============       ============       ============

Shares used in computing
net loss per share .........        11,844,602          4,538,234         11,844,602          4,524,939
                                  ============       ============       ============       ============
</TABLE>

See accompanying notes to consolidated financial statements


<PAGE>   5
                          UROQUEST MEDICAL CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                          Six months ended June 30,
                                                       -------------------------------
                                                           1997               1996
                                                       ------------       ------------
<S>                                                    <C>                <C>          
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss ....................................      $ (2,028,701)      $   (816,834)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
    Depreciation and amortization ...............           738,460            115,994
    Changes in operating assets and liabilities:
        Accounts Receivable .....................          (334,270)                 -
        Inventories .............................          (191,611)            (2,072)
        Prepaid expenses and other current assets           (15,269)          (315,943)
        Accounts payable ........................            66,708            148,262
        Accrued expenses ........................            (4,888)            30,227
        Severance accrual .......................         1,572,180                  -
        Deferred income taxes ...................            29,000                  -
        Income taxes ............................           113,410                  -
                                                       ------------       ------------
               Net cash used in operating
                  activities ....................           (54,981)          (840,366)
                                                       ------------       ------------

 CASH FLOWS FROM INVESTING ACTIVITIES:
        Purchases of property and equipment .....          (230,613)           (49,037)

CASH FLOWS FROM FINANCING ACTIVITIES:
        Proceeds from issuance of stock .........                 -             37,954
        Repayment of notes ......................          (367,816)                 -
                                                       ------------       ------------
               Net cash provided from (used
                 in) financing activities .......          (367,816)            37,954
                                                       ------------       ------------

Net decrease in cash ............................          (653,410)          (851,449)

Cash at beginning of period .....................        12,694,047          1,113,594
                                                       ------------       ------------

Cash at end of period ...........................      $ 12,040,637       $    262,145
                                                       ============       ============

Supplemental disclosures of cash
   flow information:
      Cash paid for interest ....................      $     98,408       $     11,700
      Cash paid for income taxes ................            80,000                  -
</TABLE>

See accompanying notes to consolidated financial statements



<PAGE>   6
                          UROQUEST MEDICAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 1997
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION

      The consolidated financial statements include the assets and liabilities
of UroQuest's wholly owned subsidiaries. All significant intercompany
transactions have been eliminated in consolidation.

      In the opinion of management, the accompanying consolidated financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the Company's consolidated financial
position as of June 30, 1997, and the results of operations and cash flows for
the three months and the six months ending June 30, 1997 and 1996. The results
of operations for any interim period are not necessarily indicative of results
to be expected for the full fiscal year.

      The accompanying consolidated financial statements should be read in
conjunction with the audited consolidated financial statements and the notes
thereto included in the Company's Form 10-K (File. No. 0-20963) filed with the
Securities and Exchange Commission.

NOTE 2 - NET LOSS PER SHARE

      1996 net loss per share amounts are based on the weighted average number
of common shares and common share equivalents (if dilutive) resulting from
options and warrants outstanding during the periods, after giving retroactive
effect to the 1996 common stock reverse stock split and the conversion of
preferred shares into common shares at their respective issuance dates.

NOTE 3 - INVENTORIES

      Inventories at June 30, 1997 and December 31, 1996 consist of the
following:

<TABLE>
<CAPTION>
                                              1997            1996
                                           ----------      ----------
<S>                                        <C>             <C>       
           Finished goods ...........      $  735,819      $  748,268
           Work-in-process ..........       1,078,078       1,100,104
           Raw materials and supplies       1,000,526         774,440
                                           ----------      ----------
                                           $2,814,423      $2,622,812
                                           ==========      ==========
</TABLE>




<PAGE>   7
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

OVERVIEW

FORWARD-LOOKING STATEMENTS

      This Quarterly Report on Form 10-Q includes certain "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included in this report, including, without limitation, statements under this
item Two regarding the Company's financial position, business strategy and plans
and objectives of management of the Company for future operations, are
forward-looking statements that involve various risks and uncertainties. All
forward-looking statements are made as of the date of this report, and the
Company assumes no obligation to update any forward-looking statement. There can
be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed under "Risk Factors" in
the Company's Annual Report on Form 10-K and Registration Statement on Form S-1
(Reg. No. 333-07277) filed with the Securities and Exchange Commission and
elsewhere in this report. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by this section.


ACQUISITION OF BMT

      On October 30, 1996, the Company acquired BMT, pursuant to which BMT
became a wholly owned subsidiary of the Company. BMT develops, manufactures and
markets a line of proprietary silicone medical device products as well as
provides engineering design, development and manufacturing services for silicone
products on an OEM basis for other medical device companies. BMT is one of a
limited number of specialty manufacturers of silicone catheters in the United
States. The acquisition of BMT constitutes the Company's first acquisition of
another business. BMT's operations are significantly different in many respects
from the Company's current operations, and the acquisition may result in a
number of unforeseen difficulties and problems that could have a material
adverse effect on the Company's business, financial condition and results of
operations.

RESULTS OF OPERATIONS

QUARTER ENDED JUNE 30, 1997 COMPARED TO QUARTER ENDED JUNE 30, 1996:

      Net sales and cost of sales. Sales of $3,985,780 for the quarter ended
June 30, 1997 related to BMT sales of proprietary airway management products and
other medical devices products to OEM customers. Cost of sales of $2,195,524
related to the BMT sales. The Company had no sales for the quarter ended June
30, 1996.

      Research and development. Research and development expenses include
product development, clinical testing and regulatory expenses. For the quarter
ended June 30, 1997 research and development expenses increased to $711,977 from
$261,361 for the quarter ended June 30, 1996. Included in the 1997 expenses were
research and development expenses related to BMT totaling $346,800. The overall
increase was attributable primarily to increased research and development
personnel for various products, including the On-Command Catheter. Research and
development expenses are expected to continue to increase for the foreseeable
future.

      General and administrative. General and administrative expenses increased
to $936,932 for the quarter ended June 30, 1997 from $104,178 for the quarter
ended June 30, 1996. Included in the 1997 


<PAGE>   8
expenses were general and administrative expenses related to BMT totaling
$757,677. In addition, public company expenses were incurred in 1997 which were
not incurred in 1996. General and administrative expenses are expected to
increase as the Company hires additional personnel to support anticipated
expansion of the Company's business.

      Sales and marketing. Sales and marketing expenses increased to $420,288
for the quarter ended June 30, 1997 from $(1,785) for the quarter ended June 30,
1996. This increase was primarily attributable to the inclusion of sales and
marketing expenses related to BMT totaling $412,769.

      Severance costs. Severance costs amounted to $1,600,000 for the quarter
ended June 30, 1997. No severance costs were incurred for the quarter ended June
30, 1996. The severance costs related to the employment termination of certain
members of senior management. Of this amount, approximately $713,000 is related
to non-cash compensation expense from stock options.

      Amortization of goodwill. Amortization of goodwill of $157,356 for the
quarter ended June 30, 1997 related to the amortization of recognized goodwill
concurrent with the acquisition of BMT in October 1996. The Company had no
goodwill or related amortization for the quarter ended June 30, 1996.

      Other income (expense). Other income (expense) increased to net interest
income of $105,416 for the quarter ended June 30, 1997 from a net interest
expense of $6,287 for the quarter ended June 30, 1996. The increase is
attributable to higher net average cash balances, obtained primarily from the
Company's initial public offering (IPO), for the quarter ended June 30, 1997 in
comparison to the quarter ended June 30, 1996.

SIX MONTHS ENDED JUNE 30, 1997 COMPARED TO SIX MONTHS ENDED JUNE 30, 1996:

      Net sales and cost of sales. Sales of $7,660,378 for the six months ended
June 30, 1997 related to BMT sales of proprietary airway management products and
other medical devices products to OEM customers. Cost of sales of $4,062,087
related to the BMT sales. The Company had no sales for the six months ended June
30, 1996.

      Research and development. Research and development expenses include
product development, clinical testing and regulatory expenses. For the six
months ended June 30, 1997 research and development expenses increased to
$1,295,296 from $539,183 for the six months ended June 30, 1996. Included in the
1997 expenses were research and development expenses related to BMT totaling
$665,513. The overall increase was attributable primarily to increased research
and development personnel for various products, including the On-Command
Catheter. Research and development expenses are expected to continue to increase
for the foreseeable future.

      General and administrative. General and administrative expenses increased
to $1,717,062 for the six months ended June 30, 1997 from $225,016 for the six
months ended June 30, 1996. Included in 1997 the expenses were general and
administrative expenses related to BMT totaling $1,137,893. In addition, public
company expenses were incurred in 1997 which were not incurred in 1996. General
and administrative expenses are expected to increase as the Company hires
additional personnel to support anticipated expansion of the Company's business.

      Sales and marketing. Sales and marketing expenses increased to $799,802
for the six months ended June 30, 1997 from $45,787 for the six months ended
June 30, 1996. This increase was primarily attributable to the inclusion of
sales and marketing expenses related to BMT totaling $778,637.

      Severance costs. Severance costs amounted to $1,600,000 for the six months
ended June 30, 1997. No severance costs were incurred for the six months ended
June 30, 1996. The severance costs related to the employment termination of
certain members of senior management. Of this amount, approximately $713,000 is
related to non-cash compensation expense from stock options.


<PAGE>   9
      Amortization of goodwill. Amortization of goodwill of $328,637 for the six
months ended June 30, 1997 related to the amortization of recognized goodwill
concurrent with the acquisition of BMT in October 1996. The Company had no
goodwill or related amortization for the six months ended June 30, 1996.

      Other income (expense). Other income (expense) increased to net interest
income of $195,805 for the six months ended June 30, 1997 from a net interest
expense of $6,848 for the six months ended June 30, 1996. The increase is
attributable to higher net average cash balances, obtained primarily from the
Company's initial public offering ("IPO"), for the six months ended June 30,
1997 in comparison to the six months ended June 30, 1996.

INCOME TAXES

      The Company has not generated any taxable income to date and, therefore,
has not paid any federal income taxes since its inception. The Company accounts
for income taxes under Statement of Financial Accounting Standards No. 109.
Realization of deferred tax assets is dependent on future earnings, if any, the
timing and amount of which are uncertain. Accordingly, valuation allowances, in
amounts equal to the net deferred tax assets, have been established in each
period to reflect these uncertainties.

      At December 31, 1996, the Company had net operating losses, for tax
purposes, of approximately $4,400,000 that can be carried forward to reduce
federal income taxes. However, utilization of net operating losses and any tax
credit carryforwards will be subject to annual limitations due to the ownership
change limitations of the Internal Revenue Code of 1986, as amended, and similar
state provisions.

LIQUIDITY AND CAPITAL RESOURCES

   The Company has financed its operations primarily through the public and
private sale of equity securities and through bank-provided working capital
financing, short-term borrowings and equipment lease financing. Since inception,
the Company has raised approximately $26.8 million in net proceeds of equity
financing.

   During the six months ended June 30, 1997 net cash flows used in operating
activities amounted to $54,981. During the six months ended June 30, 1996 net
cash used in operating activities amounted to $840,366. The decrease in net cash
flows used in operating activities in 1997 from 1996 was due to cash provided by
BMT's operations and cash provided from investment income.

   The Company's primary internal source of liquidity presently consists of
existing borrowings and cash generated from BMT's operations. The Company's
primary external sources of liquidity are public and private debt and equity
financings and bank-provided debt financing.

   As of June 30, 1997 and December 31, 1996, the Company had cash of
$12,040,637 and $12,694,047, respectively. The decrease since December 31, 1996
was due to the net cash used in operations, purchases of fixed assets and
repayment of long-term debt. As of June 30, 1997, the Company had no significant
noncancelable commitments for capital expenditures or raw material purchases,
although the Company may enter into such commitments in the future.

   The Company's capital requirements depend on numerous factors, including the
extent to which the On-Command Catheter and other products gain market
acceptance, actions relating to regulatory and reimbursement matters, progress
of clinical trials, the effect of competitive products, the cost and effect of
future marketing programs, the resources the Company devotes to manufacturing
and developing its products, the success of proprietary airway management
products and OEM sales, general economic 


<PAGE>   10
conditions and various other factors. The timing and amount of such capital
requirements cannot adequately be predicted. Consequently, although the Company
believes that the net proceeds from its IPO, together with existing borrowings
and cash anticipated to be generated from BMT's operations, will provide
adequate funding for its capital requirements in the foreseeable future, there
can be no assurance that the Company will not require additional funding or that
such additional funding, if needed, will be available on terms satisfactory to
the Company, if at all. Any additional equity financing may be dilutive to
stockholders, and debt financing, if available, may involve significant
restrictive covenants. Failure to raise capital when needed could have a
material adverse effect on the Company's business, financial condition and
results of operations.

The Company expects its operating losses to continue until the On-Command
Catheter achieves significant market acceptance as it continues to expend
substantial resources in funding clinical trials in support of regulatory and
reimbursement approvals, expansion of marketing and sales activities, and
research and development. In addition, the Company's results of operations may
fluctuate significantly during future quarterly periods.



<PAGE>   11
PART II - OTHER INFORMATION

      Item 1 - Legal Proceedings
               Not applicable.

      Item 2 - Changes in Securities 
               Not applicable.

      Item 3 - Default upon Senior Securities
               Not applicable.

      Item 4 - Submission of Matters to a Vote of Security Holders 
               Not applicable.

      Item 5 - Other information 
               Not applicable.

      Item 6 - Exhibit and Reports on Form 8-K

               (a)  Exhibit:

<TABLE>
<CAPTION>
            EXHIBIT
            NUMBER      EXHIBIT
            -------     -------
<S>                     <C>                             
               27       Financial Data Schedule
</TABLE>

              (b)  Reports on Form 8-K:

                   The Company did not file any reports on Form 8-K during this
                   period.


<PAGE>   12
                                 SIGNATURE PAGE



      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.



                                    UROQUEST MEDICAL CORPORATION


Date: July 31, 1997                 /s/ Terry E. Spraker
                                    --------------------------------------------
                                    Terry E. Spraker, Ph.D.
                                    President and Chief Executive Officer


Date: July 31, 1997                 /s/ Jeffrey L. Kaiser
                                    --------------------------------------------
                                    Jeffrey L. Kaiser
                                    Vice President, Chief Financial Officer,
                                    Treasurer, and Secretary