<PAGE>   1

================================================================================

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

                                   FORM 10-K/A

(MARK ONE)

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

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998

                                       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: 0-20963

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


             Delaware                                          59-3176454
  (State or other jurisdiction                               (IRS Employer
of incorporation or organization)                         Identification Number)

                  173 Constitution Drive, Menlo Park, CA 94025
              (Address of principal executive offices) (Zip Code)

                                 (650) 463-5180
              (Registrant's telephone number, including area code)

                                   -----------

Securities registered pursuant to section 12(b) of the Act:  None
Securities registered pursuant to section 12(g) of the Act:  Common Stock

        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 [X] Yes [ ] No

        Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy of information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K [X]

        As of March 19, 1999, the aggregate market value of the voting stock
held by non-affiliates of the registrant is approximately $8,016,000 on the
closing sale price as reported on the Nasdaq National Market on such date.
Shares of Common Stock held by officers, directors and holders of more than 5%
of the outstanding Common Stock have been excluded from this calculation because
such persons may be deemed to be affiliates. This determination of affiliate
status is not necessarily a conclusive determination for other purposes.

        The number of shares of Common Stock outstanding on March 19, 1999 was
12,452,522.


================================================================================

<PAGE>   2

                                EXPLANATORY NOTE

        On March 31, 1999, UroQuest Medical Corporation (the "Company") filed
its Annual Report on Form 10-K for the fiscal year ended December 31, 1998 (the
"Annual Report"), with the Securities and Exchange Commission.

        The purpose of this amendment to the Annual Report is to amend Part III
of the Annual Report on Form 10-K to provide the information required by Items
401 to 405 of Regulation S-K with respect to Registrant's directors and
executive officers, executive compensation, security ownership of certain
beneficial owners and management, and certain relationships and related
transactions, pursuant to General Instruction G(3) of Form 10-K.



                                       2
<PAGE>   3

                                    PART III

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

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

DIRECTORS

        At the Annual Meeting of Shareholders held in June 1998, seven (7)
directors of the Company (constituting the entire Board of Directors) were
elected to serve until the next annual meeting of shareholders and until their
respective successors shall be duly elected and qualified.

        Maynard Ramsy, III, M.D., Ph.D., who had served as a director of the
Company since 1994, resigned from the directorship in November 1998.

        As of December 31, 1998, the directors of the Registrant are as follows:

        RICHARD C. DAVIS, M.D., age 45, has been a director and Chairman of the
Board since the Company's inception and was its Chief Science Officer from
November 1994 to June 1997. Dr. Davis invented the On-Command products and was
responsible for all research and development activities of the Company during
that period. In 1989, he founded Code Blue Medical Corporation, a marketer of
disposable medical devices ("Code Blue") and served as Chairman until April
1992, when Code Blue was sold to Ballard Medical Products, a medical products
company. Dr. Davis is named as an inventor in over 40 United States patents. Dr.
Davis holds a M.D. from the Medical College of Virginia and a B.S. in Chemistry
from Old Dominion University.

        TERRY E. SPRAKER, Ph.D., age 50, has been a director and President and
Chief Executive Officer of the Company since May 1997. Before joining the
Company, Dr. Spraker was President and Chief Executive Officer of EP
Technologies, Inc., a manufacturer of interventional cardiac electrophysiology
products, from October 1992 until August 1996. Prior to joining EP Technologies,
Dr. Spraker was President of the Medical Systems Division of Ohmeda, an
anesthesia and critical care products company, from July 1992 until October 1992
and V.P./General Manager of Anesthesia Systems from July 1987 through June 1992.
Dr. Spraker held various general management and engineering positions with
Ohmeda and other medical device and equipment manufacturers from October 1977 to
June 1987. Dr. Spraker holds a B.S. in Electrical Engineering from the
University of Bridgeport, a M.S. in Electrical Engineering and a Ph.D. in
Bioengineering from Pennsylvania State University.

        THOMAS E. BRANDT, age 45, has been a director and Chief Operating
Officer since October 1996. Mr. Brandt has served as President and Chief
Executive Officer of Bivona, Inc. ("Bivona"), a subsidiary of the Company which
produces and markets medical products, since June 1989. Prior to joining Bivona,
Mr. Brandt held various management, marketing and engineering positions with Dow
Corning Corporation, a chemical company. Mr. Brandt holds a M.B.A. from Central
Michigan University and a B.S. in Engineering from Iowa State University.

        JACK W. LASERSOHN, age 46, has served as a director of the Company since
June 1995. Mr. Lasersohn has been a General Partner of The Vertical Group, a
private venture capital and investment management firm, since its formation in
1989 by former principals of F. Eberstadt & Co., Inc. From 1981 to 1989, he was
a Vice President and later a Managing Director of the venture capital division
of F. Eberstadt & Co., Inc. Mr. Lasersohn also serves as a director of
CardioThoracic Systems, Inc., a medical device company, VitalCom Inc., a health
care information systems company, Masimo Inc., a medical device company, and a
number of privately-held health care companies. He holds a J.D. from Yale
University and a M.A. and B.S. from Tufts University.

        GARY E. NEI, age 55, has been a director since June 1994. Mr. Nei is
currently Chairman of the Board of B&B Publishing, a publishing company, and has
served as such since May 1995. He also serves as a consultant. Previously, Mr.
Nei was President and Chief Executive Officer of Eon Labs, a pharmaceutical
company, from February 1992 until January 1995. From November 1988 until
December 1991, he served 




                                       3
<PAGE>   4
as the President and Chief Executive Officer of Lyphomed, Inc., a pharmaceutical
company. From 1985 until 1986, he served as Executive Vice President of Baxter
International, a health care company. He is also a director of Brady Corp., an
adhesives and graphics technology company and Chairman of the Beverage Testing
Institute, a publications company which reviews beverages. He holds a M.B.A.
from Northwestern University and a B.A. from Ripon College.

        ELIZABETH H. WEATHERMAN, age 39, has served as a director of the Company
since June 1995. Ms. Weatherman is a Managing Director and member of E.M.
Warburg, Pincus & Co., LLC, a private investment firm, and has been with the
firm since June 1988. Ms. Weatherman is also a director of Xomed Surgical
Products, Inc., a medical device company, and several privately-held health care
companies. Ms. Weatherman holds a M.B.A. from Stanford University and a B.A.
from Mount Holyoke College.

BOARD MEETINGS AND COMMITTEES

        All directors hold office until the next annual meeting of stockholders
and until their successors have been duly elected and qualified. During the
fiscal year ended December 31, 1998, the Board of Directors met on eight
occasions. The Board of Directors has a Compensation Committee, which
establishes compensation policies and is responsible for determinations
regarding salaries, incentive compensation and other forms of compensation for
directors, officers and other employees of the Company. The Audit Committee has
oversight over the process of auditing the Company's internally prepared
financial statements, and is charged with reviewing any potential conflicts of
interest. Officers are elected by and serve at the discretion of the Board of
Directors or pursuant to individual employment agreements. There are no family
relationships among the directors or officers of the Company.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

        Messrs. Nei and Lasersohn and Ms. Weatherman are members of the
Compensation Committee. The Compensation Committee met once in March 1999 with
regard to the Company's compensation plans for the 1998 fiscal year and once in
December 1998 in regard to stock option repricing. In addition to the functions
and responsibilities discussed above, the Compensation Committee also
administers the Company's incentive compensation plans.

        Mr. Nei and Ms. Weatherman are members of the Audit Committee. From
April 1997 through January 1998, Messrs. Nei and Lasersohn were members of the
Audit Committee. The Audit Committee met once in February 1999 with regard to
the Company's 1998 fiscal year financial results and reporting.

COMPENSATION OF DIRECTORS

        Directors of the Company do not receive cash for services they provide
as directors, aside from out-of-pocket expenses incurred in connection with
attendance at board meetings.

EXECUTIVE OFFICERS

        As of December 31, 1998, the executive officers of the Registrant, who
are elected by the Board of Directors, are as follows:

        TERRY E. SPRAKER, Ph.D., age 50, has been a director and President and
Chief Executive Officer of the Company since May 1997. Before joining the
Company, Dr. Spraker was President and Chief Executive Officer of EP
Technologies, Inc., a manufacturer of interventional cardiac electrophysiology
products, from October 1992 until August 1996. Prior to joining EP Technologies,
Dr. Spraker was President of the Medical Systems Division of Ohmeda, an
anesthesia and critical care products company, from July 1992 until October 1992
and V.P./General Manager of Anesthesia Systems from July 1987 through June 1992.
Dr. Spraker held various general management and engineering positions with
Ohmeda and other medical device and equipment manufacturers from October 1977 to
June 1987. Dr. Spraker holds a B.S. in Electrical Engineering from the
University of Bridgeport, a M.S. in Electrical Engineering and a Ph.D. in
Bioengineering from Pennsylvania State University.



                                       4
<PAGE>   5

        THOMAS E. BRANDT, age 45, has been a director and Chief Operating
Officer since October 1996. Mr. Brandt has served as President and Chief
Executive Officer of Bivona, Inc. ("Bivona"), a subsidiary of the Company which
produces and markets medical products, since June 1989. Prior to joining Bivona,
Mr. Brandt held various management, marketing and engineering positions with Dow
Corning Corporation, a chemical company. Mr. Brandt holds a M.B.A. from Central
Michigan University and a B.S. in Engineering from Iowa State University.

        JEFFREY L. KAISER, age 48, has served as Vice President, Chief Financial
Officer, Treasurer, and Secretary since May 1997. From March 1990 until June
1996, Mr. Kaiser was Vice President, Finance and Administration and Chief
Financial Officer of EP Technologies, a manufacturer of interventional cardiac
electrophysiology products. From October 1988 until February 1990, Mr. Kaiser
provided independent financial and business consulting services to various
companies. From March 1982 until September 1988, Mr. Kaiser was Chief Financial
Officer of various companies that manufactured computer hardware, styrofoam
consumer products, and fermentation equipment. Previously, Mr. Kaiser held
various positions, including Senior Audit Manager, with Ernst & Young. Mr.
Kaiser holds a B.S. in Business Administration from Miami University, Oxford,
Ohio. He is a Certified Public Accountant.

        ALAN L. MARQUARDT, age 46, has served as Vice President, Regulatory,
Clinical, and Quality Affairs since March 1998. From February 1993 to February
1998, Alan Marquardt was Vice President, Regulatory, Clinical and Quality
Affairs at Boston Scientific Corporation's San Jose, California operation. From
November 1988 to January 1993, Mr. Marquardt was Director of Clinical and
Regulatory Affairs at Pfizer, Inc.'s Schneider U.S. Stent Division. From 1986 to
November 1988, Mr. Marquardt was Senior Product Regulation Manager at Medtronic,
Inc. Prior to this time, Mr. Marquardt held various other positions at
Medtronic, Inc. and National Biocentric. Mr. Marquardt holds a Bachelor of
Science in Microbiology from the University of Minnesota.

        KEITH W. L. WARD, age 55, has served as Vice President, International
since August 1997. From January 1996 until July 1997, Mr. Ward was Sales and
Marketing Director, Europe, for the EP Technologies Division of Boston
Scientific Corporation, following its merger with EP Technologies, Inc. From
October 1993 until January 1996, Mr. Ward was Vice President, International of
EP Technologies, a manufacturer of interventional cardiac electrophysiology
products. From February 1986 until September 1993, Mr. Ward held various
International Marketing and Business Development positions in Ohmeda, a medical
equipment and pharmaceutical manufacturer of anesthesia and critical care
products. Prior to this time, Mr. Ward held marketing and general management
positions in Sherwood Medical Industries and Abbott Laboratories. Mr. Ward holds
a B.Sc. Hons. in Chemical Engineering from the University of Surrey, England.



                                       5
<PAGE>   6

Item 11. EXECUTIVE COMPENSATION

                             EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

        The following table sets forth certain compensation paid by the Company
to all individuals who acted as Chief Executive Officer of the Company and the
four other most highly compensated executive officers of the Company
(collectively the "Named Executive Officers") for services rendered during the
fiscal years ended December 31, 1996 and 1997, and 1998.


<TABLE>
<CAPTION>
                                                                          Long-Term
                                                                     Compensation Awards
                                                                   -----------------------
                                            Annual Compensation    Restricted   Securities
                                           ----------------------    Stock      Underlying       All Other
Name and Principal Position        Year     Salary        Bonus      Awards      Options(1)     Compensation
---------------------------        ----    --------      --------  ----------   -----------     ------------
<S>                                <C>     <C>           <C>       <C>           <C>             <C>
Terry E. Spraker, Ph.D.(2) ....    1998    $240,000      $101,100       --       595,000(3)      $  1,254(4)
  President & Chief Executive      1997     148,462        97,000       --       700,000              155(5)
  Officer                          1996          --            --                     --               --

Thomas E. Brandt(6) ...........    1998     176,400        45,289       --       102,000(7)         9,637(8)
  Chief Operating Officer          1997     168,000        34,200       --       120,000            7,566(9)
                                   1996      28,000            --       --            --            1,325(10)

Jeffrey L. Kaiser(11) .........    1998     144,430        36,546       --       102,000(12)          889(13)
  Vice President & Chief           1997      83,372        23,900       --       120,000              155(14)
  Financial Officer,               1996          --            --       --            --               --
  Secretary & Treasurer

Alan L. Marquardt(15) .........    1998     122,500        36,735       --       102,000(16)          777(17)
  Vice President,                  1997          --            --       --            --               --
  Regulatory &  Clinical           1996          --            --       --            --               --


Keith W.L. Ward(18) ...........    1998     120,728        32,695       --       102,000(19)       18,518(20)
  Vice President, International    1997      49,085        15,485       --       120,000            6,016(21)
                                   1996          --            --       --            --               --
</TABLE>

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

 (1)    In December 1998, the Compensation Committee offered to all current
        employees and certain consultants holding outstanding options to
        purchase the Common Stock of the Company with an exercise price in
        excess of $2.50 per share the opportunity to exchange such options for
        new options. Each such new option held by the Executive Officers of the
        Company will be on the same terms as the surrendered option (including
        vesting and expiration date), except that (i) the new option will be an
        option to purchase that number of shares equal to 85% of the number of
        shares underlying the exchanged option, (ii) the exercise price for
        one-half of the new options will be $2.00 per share; and the exercise
        price for the remaining half of the new options will be $3.00 per
        share, and (iii) such new options will not be exercisable, except upon
        optionee's involuntary termination, death, or disability or upon the
        occurrence of a merger of the Company or a sale of substantially all of
        the Company's assets in which such new options are not assumed, for a
        period of six months ending June 13, 1999.

 (2)    Effective May 1997, UroQuest Medical Corporation President and Chief
        Executive Officer.

 (3)    Pursuant to the option exchange program described in note (1), the
        number of options granted to Dr. Spraker in October 1997 was reduced in
        December 1998 by 105,000 shares from 700,000 shares to 595,000 shares.

 (4)    Consists of life insurance premiums for the benefit of Dr. Spraker in
        the amount of $1,254 for the fiscal year ended 1998.

 (5)    Consists of life insurance premiums for the benefit of Dr. Spraker in
        the amount of $155 for the fiscal year ended 1997.

 (6)    Effective October 1996, UroQuest Medical Corporation Chief Operating
        Officer.

 (7)    Pursuant to the option exchange program described in note (1), the
        number of options granted to Mr. Brandt in October 1997 was reduced in
        December 1998 by 18,000 shares from 120,000 shares to 102,000 shares.

 (8)    Consists of life insurance premiums for the benefit of Mr. Brandt in the
        amount of $1,095 and 401(k) matching contributions in the amount of
        $8,542 for the fiscal year ended 1998.




                                       6
<PAGE>   7

 (9)    Consists of life insurance premiums for the benefit of Mr. Brandt in the
        amount of $1,104 and 401(k) matching contributions in the amount of
        $6,462 for the fiscal year ended 1997.

(10)    Consists of life insurance premiums for the benefit of Mr. Brandt in the
        amount of $166 and 401(k) matching contributions in the amount of $1,159
        for the fiscal year ended 1996.

(11)    Effective May 1997, UroQuest Medical Corporation Vice President and
        Chief Financial Officer, Secretary and Treasurer.

(12)    Pursuant to the option exchange program described in note (1), the
        number of options granted to Mr. Kaiser in October 1997 was reduced in
        December 1998 by 18,000 shares from 120,000 shares to 102,000 shares.

(13)    Consists of life insurance premiums for the benefit of Mr. Kaiser in the
        amount of $889 for the fiscal year ended 1998.

(14)    Consists of life insurance premiums for the benefit of Mr. Kaiser in the
        amount of $155 for the fiscal year ended 1997.

(15)    Effective March 1998, UroQuest Medical Corporation Vice President,
        Regulatory and Clinical.

(16)    Pursuant to the option exchange program described in note (1), the
        number of options granted to Mr. Marquardt in April 1998 was reduced in
        December 1998 by 18,000 shares from 120,000 shares to 102,000 shares.

(17)    Consists of life insurance premiums for the benefit of Mr. Marquardt in
        the amount of $777 for the fiscal year ended 1998.

(18)    Effective August 1997, UroQuest Medical Corporation Vice President,
        International.

(19)    Pursuant to the option exchange program described in note (1), the
        number of options granted to Mr. Ward in October 1997 was reduced in
        December 1998 by 18,000 shares from 120,000 shares to 102,000 shares.

(20)    Consists of life insurance premiums for the benefit of Mr. Ward in the
        amount of $4,024 and pension payments in the amount of $14,494 for the
        fiscal year ended 1998.

(21)    Consists of life insurance premiums for the benefit of Mr. Ward in the
        amount of $1,332 and pension payments in the amount of $4,684 for the
        fiscal year ended 1997.

STOCK OPTION INFORMATION

        The following table sets forth certain information as to options granted
during the fiscal year ended December 31, 1998 to each Named Executive Officer
of the Company. In accordance with the rules of the Securities and Exchange
Commission, the following table also sets forth the potential realizable value
over the term of the options (the period from the grant date to the expiration
date) based on assumed rates of stock appreciation of 5% and 10% compounded
annually. These amounts do not represent the Company's estimate of future stock
prices. Actual realizable values, if any, of stock options will depend on the
future performance of the Common Stock.

              OPTION GRANTS IN FISCAL YEAR ENDED DECEMBER 31, 1998



<TABLE>
<CAPTION>
                                 Individual Grants                                   Potential Realizable
                           ----------------------------------------------------         Value at Assumed        
                             Number of       Percent of                              Annual Rates of Stock  
                            Securities          Total                                  Price Appreciation      
                            Underlying         Options     Exercise                    for Option Terms(5)
                              Options        Granted in     Price    Expiration     -------------------------
                           Granted(1)(2)    Fiscal 1998(3) ($/Sh)(4)    Date            5%             10%
                           -------------    -------------- ---------  --------      ---------       ---------
<S>                        <C>              <C>            <C>        <C>           <C>             <C>
Terry E. Spraker, Ph.D.....   595,000             33%      $   2.50   10/27/07      $(225,762)      $ 419,559

Thomas E. Brandt ..........   102,000              6%      $   2.50   10/27/07        (38,702)         71,924

Jeffrey L. Kaiser .........   102,000              6%      $   2.50   10/27/07        (38,702)         71,924

Alan L. Marquardt .........   102,000              6%      $   2.50   4/3/08          (34,056)         85,784

Keith W.L. Ward ...........   102,000              6%      $   2.50   10/27/07        (38,702)         71,924
</TABLE>

----------

(1)     Grants under the 1994 Stock Plan. The options generally have a four-year
        vesting period. Such options are not transferable other than by will or
        the laws of descent and distribution.

(2)     In December 1998, the Compensation Committee offered to all current
        employees and certain consultants holding outstanding options to
        purchase the Common Stock of the Company with an exercise price in
        excess of $2.50 per share the opportunity to exchange such options for
        new options. Each such new option held by the Executive Officers of the
        Company will be on the same terms as the surrendered option (including
        vesting and expiration date), except that (i) the new option will be an
        option to purchase that number of shares equal to 85% of the number of
        shares underlying the 




                                       7
<PAGE>   8

        exchanged option, (ii) the exercise price for one-half of the new
        options will be $2.00 per share; and the exercise price for the
        remaining half of the new options will be $3.00 per share, and (iii)
        such new options will not be exercisable, except upon optionee's
        involuntary termination, death, or disability or upon the occurrence of
        a merger of the Company or a sale of substantially all of the Company's
        assets in which such new options are not assumed, for a period of six
        months ending June 13, 1999.

(3)     Based on an aggregate of 1,816,648 options (including 1,616,929 shares
        of exchanged options) granted by the Company in the fiscal year ended
        December 31, 1998 to employees of and consultants to the Company,
        including Named Executive Officers.

(4)     Half of the options exchanged are priced at $2 per share and the other
        half are priced at $3 per share. The average exercise price of these
        options exchanged is therefore $2.50 per share.

(5)     The potential realizable value is calculated based on the term of the
        option at its time of grant. It is calculated assuming that the fair
        market value of the Company's Common Stock on the date of repricing
        appreciates at the indicated rate compounded annually for the entire
        term of the option and that the option is exercised and sold on the last
        day of its term for the appreciated stock price. On the date of
        repricing, the fair market value of the Company's Common Stock was at
        $1.375 per share; the average exercise price of the repriced options is
        $2.50 per share.


               AGGREGATE OPTION EXERCISES IN THE LAST FISCAL YEAR
                       AND FISCAL YEAR-END OPTION VALUES

        The following table sets forth, for each of the Named Executive
Officers, information with respect to each exercise of stock options during the
fiscal year ended December 31, 1998 and the value of unexercised stock options
held by such individuals at December 31, 1998.

        AGGREGATE OPTION EXERCISES IN FISCAL YEAR ENDED DECEMBER 31, 1998
                        AND FISCAL YEAR-END OPTION VALUES


<TABLE>
<CAPTION>
                        Shares
                       Acquired                  Number of Shares Underlying          Value of Unexercised
                          on        Value           Unexercised Options at           In-the-Money Options at
                       Exercise   Realized            December 31, 1998               December 31, 1998(2)
                       --------   --------     ------------------------------     ----------------------------
                                               Exercisable   Unexercisable(1)     Exercisable    Unexercisable
                                               -----------   ----------------     -----------    -------------
<S>                     <C>         <C>           <C>             <C>               <C>                  <C>
Terry E. Spraker, Ph.D.   --          --            --            595,000               --             --
                                                                             
Thomas E. Brandt          --          --            --            102,000               --             --
                                                                             
Jeffrey L. Kaiser         --          --            --            102,000               --             --
                                                                             
Alan L. Marquardt         --          --            --            102,000               --             --
                                                                             
Keith W.L. Ward           --          --            --            102,000               --             --
</TABLE>

(1)     In December 1998, the Compensation Committee offered to all current
        employees and certain consultants holding outstanding options to
        purchase the Common Stock of the Company with an exercise price in
        excess of $2.50 per share the opportunity to exchange such options for
        new options. Each such new option held by the Executive Officers of the
        Company will be on the same terms as the surrendered option (including
        vesting and expiration date), except that (i) the new option will be an
        option to purchase that number of shares equal to 85% of the number of
        shares underlying the exchanged option, (ii) the exercise price for
        one-half of the new options will be $2.00 per share; and the exercise
        price for the remaining half of the new options will be $3.00 per
        share, and (iii) such new options will not be exercisable, except upon
        optionee's involuntary termination, death, or disability or upon the
        occurrence of a merger of the Company or a sale of substantially all of
        the Company's assets in which such new options are not assumed, for a
        period of six months ending June 13, 1999.

(2)     Value is based on the closing sale price of the Common Stock as of the
        last business day of the year, December 31, 1998 ($1.00), minus the
        exercise price.


                                       8
<PAGE>   9

TEN-YEAR OPTION REPRICING

        The following table sets forth information with respect to all
repricings of options held by each of the Named Executive Officers during the
last ten completed fiscal years.

                            10-YEAR OPTION REPRICING

<TABLE>
<CAPTION>
                                                                                                      Length of
                                                                                                       Original
                                                    Number of       Market                              Option
                                                    Securities     Price of     Exercise                Term
                                                    Underlying     Stock at     Price at     New      Remaining
                                     Date of         Options        Time of     Time of    Exercise   at Date of
                                    Repricing        Repriced      Repricing   Repricing    Price     Repricing
                                     --------         -------      ----------  ----------  --------   ---------
<S>                                  <C>              <C>          <C>         <C>         <C>        <C>
Terry E. Spraker, Ph.D               12/10/98         297,500      $    1.375  $    4.000  $   2.00   8.9 years

                                     12/10/98         297,500           1.375       4.000      3.00   8.9

Thomas E. Brandt                     12/10/98          51,000           1.375       4.000      2.00   8.9

                                     12/10/98          51,000           1.375       4.000      3.00   8.9

Jeffrey L. Kaiser                    12/10/98          51,000           1.375       4.000      2.00   8.9

                                     12/10/98          51,000           1.375       4.000      3.00   8.9

Alan L. Marquardt                    12/10/98          51,000           1.375       3.125      2.00   9.3

                                     12/10/98          51,000           1.375       3.125      3.00   9.3

Keith W.L. Ward                      12/10/98          51,000           1.375       4.000      2.00   8.9

                                     12/10/98          51,000           1.375       4.000      3.00   8.9
</TABLE>


COMPENSATION COMMITTEE REPORT ON THE OPTION EXCHANGE PROGRAM

        After considering various alternatives to address employee retention and
motivation, the Compensation Committee approved the Option Exchange Program in
December 1998. Pursuant to the Option Exchange Program, all current employees
including the Executive Officers and certain consultants holding outstanding
options to purchase the Common Stock of the Company with an exercise price in
excess of $2.50 per share were offered the opportunity to exchange such options
for new non-statutory and/or incentive stock options. The exercise price for
one-half of the new options will be $2.00 per share, and the exercise price for
the remaining half of the new options will be $3.00 per share, both of which
were above the then current market price on the date of regrant of $1.375 per
share. All new stock options issued pursuant to the Option Exchange Program were
issued under the 1994 Stock Plan. Each such new option will be on the same terms
as the surrendered option (including number of shares, vesting and expiration
date) except, in the case of Executive Officers, the number of shares underlying
the new option is reduced by 15%. All optionees receiving new options in the
Option Exchange Program were required to agree not to exercise their new
options, except upon optionee's involuntary termination, death, or disability or
upon the occurrence of a merger of the Company or a sale of substantially all of
the Company's assets in which such new options are not assumed, for a period of
six months ending June 13, 1999. A total of 1,616,929 shares of stock options
were exchanged in the Option Exchange Program.

        Stock options are intended to provide incentives to the Company's
officers, employees and consultants. The Compensation Committee believes that
such equity incentives are a significant factor in the Company's ability to
attract, retain and motivate service providers who are critical to the Company's
long-term success. The disparity between the original exercise prices of the
Company's outstanding stock options and the market price for the Common Stock
did not provide, in the judgment of the Compensation Committee, a meaningful
incentive or retention device to those holding stock options and, therefore, the
Compensation 




                                       9
<PAGE>   10

Committee determined that offering the Option Exchange Program was in the best
interest of the Company and its stockholders.

                                        RESPECTFULLY SUBMITTED
                                        BY THE COMPENSATION COMMITTEE:

                                              Jack W. Lasersohn
                                              Gary E. Nei
                                              Elizabeth H. Weatherman


EMPLOYMENT AGREEMENTS

        In the first quarter of 1998, the Company has entered into employment
agreements with all of its Executive Officers who joined the Company in 1997 and
1998. The Company's employment agreement with Dr. Spraker provides for an annual
base compensation of $240,000 as of the date of hire, subject to annual
increases upon Compensation Committee of the Board of Director's approval, as
well as participation in the Company's bonus, stock option and fringe benefit
programs. In addition, the agreement contains stock option acceleration
provisions related to a change of control of the Company. Dr. Spraker's
agreement also contains severance provisions that under certain circumstances
could entitle Dr. Spraker to receive a lump-sum cash severance payment equal to
his then current annual compensation.

        The Company's employment agreement with Mr. Brandt provides for an
annual base compensation of $168,000 in 1997 which is subject to annual
increases upon board approval, participation in the Company's bonus, stock
option and fringe benefit programs, and severance continuation for up to thirty
months (as of March 31, 1999) following termination of employment without cause.

        The Company's employment agreement with Mr. Kaiser provides for an
annual base compensation of $140,000 as of the date of hire, subject to annual
increases upon board approval, along with participation in the Company's bonus,
stock option and fringe benefit programs.

        The Company's employment agreement with Mr. Ward provides for an
annual base compensation of $112,000 as of the date of hire, subject to annual
increases upon board approval, along with participation in the Company's bonus,
stock option and fringe benefit programs, including company provided 
contributions to a United Kingdom pension fund.

        The Company's employment agreement with Mr. Marquardt provides for an
annual base compensation of $147,000 as of the date of hire, subject to annual
increases upon board approval, and participation in the Company's bonus, stock
option and fringe benefit programs.

        In addition, the agreements for Messrs. Kaiser, Ward and Marquardt
contain stock option acceleration provisions in certain instances in which there
is a change of control of the Company.



                                       10

<PAGE>   11

                          BOARD COMPENSATION COMMITTEE
                        REPORT ON EXECUTIVE COMPENSATION

COMPENSATION PHILOSOPHY

        The objectives of the Company's executive compensation program are to
align compensation with business objectives and individual performance, and to
enable the Company to attract, retain and reward executive officers who
contribute to the long-term success of the Company. In seeking to achieve these
objectives the Company's executive compensation is based on the following
principles.

COMPETITIVE AND FAIR COMPENSATION

        The Company is committed to providing an executive compensation program
that helps attract and retain highly qualified executives. To ensure that
compensation is competitive, the Company compares its compensation practices
with those of comparable medical products and other relevant companies in a
similar stage of development.

SHORT-TERM CASH COMPENSATION

        Cash compensation consists of two components: annual salary and cash
incentive compensation. The annual salaries and cash incentives of the executive
officers are evaluated based upon corporate and individual performance. While
industry-wide practices are deemed to be important indicators of appropriate
compensations levels, the Compensation Committee believes the most important
considerations are individual and corporate performance in setting an
executive's base salary and cash incentive compensation.

        Corporate performance is evaluated by reviewing the extent to which
strategic and business planning goals and milestones are met. Individual
performance is evaluated by reviewing attainment of specific individual
objectives and milestones and the degree to which teamwork and Company values
are fostered. Cash incentive compensation is based upon the achievement of
functional, divisional and corporate goals as well as individual performance.

LONG-TERM INCENTIVE COMPENSATION

        Because not all short-term management accomplishments are directly
related to changes in short-term stockholder value, the Compensation Committee
believes that management should also have a long-term compensation component
related to increasing stockholder value. To assure that executive officers'
goals and accomplishments are linked with increasing stockholder value, the
Compensation Committee believes that the grant of options to purchase the
Company's Common Stock that become exercisable over an extended period of time
should be an integral part of the overall compensation philosophy.

COMPENSATION PROGRAM COMPONENTS

        Annual compensation for the Company's executive officers currently
consists of three elements: salary, cash incentive compensation and equity
participation. Executive officers are also entitled to participate in the same
benefit plans available to other employees.

        On an annual basis, goals for Company performance and individual goals
and objectives for each of the Company's executive officers (including the Chief
Executive Officer) are established by the Compensation Committee. Once a year,
all executive officers other than the Chief Executive Officer are evaluated by
the Chief Executive Officer on their performance with respect to their
individual goals and objectives. At that time, revised goals and objectives are
established, if appropriate. Based upon their performance relative to their
goals and 




                                       11
<PAGE>   12

objectives, the base salary of executive officers other than the Chief Executive
Officer generally is adjusted once per year by the Compensation Committee.

        On an annual basis, the Compensation Committee evaluates the achievement
of the annual goals and objectives established for the Chief Executive Officer
and his contribution to the Company.

        Stock option awards are designed to promote the identity of long-term
interests between the Company's employees and its stockholders and assist in the
retention of executives. The size of option grants is generally intended by the
Compensation Committee to reflect the executive's position with the Company and
his or her actual or potential contributions to the Company in relation to his
or her overall compensation. The Compensation Committee believes that stock
options have been and remain an excellent vehicle for compensating its
employees. Because the option exercise price of the employee is generally the
fair market value of the stock on the date of grant, employees recognize a gain
only if the value of the stock increases. Thus, employees with stock options are
rewarded for their efforts to improve the long-term value of the Common Stock.
Stock options, moreover, have been used to reward a significant portion of the
employees of the Company, not just at the executive officer level.

1998 COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER

        The amount and means of determining Dr. Spraker's base annual salary for
1998 was fixed by the terms of his employment agreement with the Company. Dr.
Spraker was appointed as President and CEO in May 1997. His employment agreement
provided for an annual base salary of $240,000, subject to yearly review, and
such incentive bonus payments as the Compensation Committee may from time to
time determine.

        In February 1999, the Company paid a cash bonus of $101,100 to its Chief
Executive Officer. The Compensation Committee intended for this bonus to
represent compensation for such officer's contributions to the development and
achievements of the Company through December 31, 1998.

        The objectives achieved by the Company which the Compensation Committee
determined to be significant in determining Dr. Spraker's 1998 salary and cash
incentive payment included clinical trial and regulatory progress of the
Company's On-Command products, corporate financial performance for fiscal 1998
and certain other items. The Compensation Committee expects that it will
continue to review the CEO's salary on an annual basis and will adjust his
compensation based upon the achievement of goals and objectives set for the
Company.

COMPLIANCE WITH INTERNAL REVENUE CODE SECTION 162(m)

        The Compensation Committee has not yet adopted a policy on the 1993
amendment to the Internal Revenue Code of 1986, as amended (the "Code"),
disallowing deduction on compensation in excess of $1 million for certain
executives of public companies. The Company believes that options granted under
the 1994 Stock Plan are exempt from the limitation, and other compensation
expected to be paid during fiscal year 1999 is below the compensation
limitation.

                                        RESPECTFULLY SUBMITTED
                                        BY THE COMPENSATION COMMITTEE:

                                               Jack W. Lasersohn
                                               Gary E. Nei
                                               Elizabeth H. Weatherman



                                       12
<PAGE>   13

                          STOCKHOLDER PERFORMANCE GRAPH

        The following graph compares the performance of the Company's Common
Stock to the Nasdaq Stock Market Total Return Index for U.S. Companies (the
"Nasdaq Stock Market - U.S. Index") and the Hambrecht & Quist Growth Index ("H&Q
Growth Index") over the period from the time of the Company's initial public
offering of Common Stock on October 24, 1996 to December 31, 1998. The graph
assumes that the value of an investment in the Company's Common Stock and each
index was $100 at October 24, 1996 and that all dividends were reinvested.

                              [PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
TOTAL RETURN ANALYSIS
                                        10/24/96        12/31/96        12/31/97        12/31/98
                                        --------        --------        --------        --------
<S>                                     <C>             <C>             <C>             <C>
UROQUEST MEDICAL CORPORATION            $100.00         $112.50         $ 43.75         $ 16.67
HAMBRECHT & QUIST GROWTH INDEX          $100.00         $ 97.86         $100.20         $145.33
NASDAQ COMPOSITE (US)                   $100.00         $105.65         $129.04         $180.91
</TABLE>

 

        The information contained in the Stock Performance Graph shall not be
deemed to be "soliciting material" or to be filed with the SEC, nor shall such
information be incorporated by reference into any future filing under the
Securities Act or the Exchange Act, except to the extent the Company
specifically incorporates it by reference into such filing.




                                       13
<PAGE>   14

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

        The following table sets forth information known to the Company with
respect to the beneficial ownership of its Common Stock as of March 31, 1999,
for (i) each person who is known by the Company to own beneficially more than 5%
of the Common Stock, (ii) each of the Company's directors, (iii) each of the
Named Executive Officers of the Company and (iv) all directors and executive
officers as a group:


<TABLE>
<CAPTION>
                                                                      Approximate
                                                Shares Beneficially    Percent of
Name of Beneficial Owner                              Owned(1)          Total(2)
------------------------                        -------------------   ------------
<S>                                                  <C>                 <C>  
Warburg, Pincus Investors, L.P.(3)..............     3,188,571           25.6%
  466 Lexington Ave., 10th Floor
  New York, NY 10017

Elizabeth H. Weatherman(4)......................     3,188,571           25.6%
  Warburg, Pincus Investors, L.P. 
  466 Lexington Ave., 10th Floor
  New York, NY 10017

Thomas E. Brandt................................     1,605,029           12.9%

Richard C. Davis, M.D.(5).......................       979,153            7.8%

Jack W. Lasersohn(6)............................       354,285            2.8%

Terry E. Spraker, Ph.D. ........................            --            *

Gary E. Nei(7)..................................       105,716            *

Jeffrey L. Kaiser...............................         9,537            *

Keith W. L. Ward................................         9,090            *

Alan Marquardt..................................            --            *

All directors and executive officers as a 
group (9 persons)(8)............................     6,251,381           49.4%
</TABLE>

----------

*       Less than 1%

(1)     Unless otherwise indicated in these footnotes, or pursuant to applicable
        state community property laws, each stockholder has sole voting and
        investment power with respect to the shares beneficially owned.

(2)     Percentages are determined based upon 12,452,522 shares of Common Stock
        outstanding on March 31, 1999 together with the applicable warrants and
        options exercisable within 60 days of March 31, 1999 for such
        stockholder.

(3)     Represents 3,188,571 shares of Common Stock held by Warburg, Pincus
        Investors, L.P. ("Warburg"). The sole general partner of Warburg is
        Warburg, Pincus & Co., a New York general partnership ("WP"). E.M.
        Warburg, Pincus & Co., LLC, a New York limited liability company ("EM
        Warburg"), manages Warburg. The members of EM Warburg are substantially
        the same as the partners of WP. Lionel I. Pincus is the managing partner
        of WP and the managing member of EM Warburg and may be deemed to control
        both WP and EM Warburg. WP has a 20% interest in the profits of Warburg
        as the general partner. Elizabeth H. Weatherman, a director of the
        Company, is a Managing Director and member of EM Warburg, and a general
        partner of WP. As such, Ms. Weatherman may be deemed to have an indirect
        pecuniary interest (within the meaning of Rule 16a-1 under the
        Securities Exchange Act of 1934, as amended (the "Exchange Act")) in an
        indeterminate portion of the shares beneficially owned by Warburg and
        WP.

(4)     All of the shares indicated as owned by Ms. Weatherman are owned
        directly by Warburg and are included because of Ms. Weatherman's
        affiliation with Warburg. As such, Ms. Weatherman may be deemed to have
        an indirect pecuniary interest in an indeterminate portion of the shares
        beneficially owned by Warburg. Ms. Weatherman disclaims beneficial
        ownership of these shares within the meaning of Rule 13d-3 under the
        Exchange Act.



                                       14
<PAGE>   15


(5)     Represents 873,318 shares of Common Stock, 871,318 shares of which are
        held by The Richard C. Davis, Jr. 1993 Revocable Trust, of which Dr.
        Davis is a trustee and over which Dr. Davis has investment and voting
        control. The remaining 2,000 shares are owned by Mrs. Elizabeth K.
        Davis, wife of Dr. Davis. Dr. Davis disclaims beneficial ownership of
        these shares. Also includes 105,835 shares of Common Stock issuable upon
        exercise of stock options exercisable within 60 days of March 31, 1999.

(6)     Represents 354,285 shares of Common Stock held by Vertical Fund
        Associates, L.P. ("Vertical"). The sole general partner of Vertical is
        The Vertical Group, L.P. ("Vertical Group"). Jack W. Lasersohn, a
        director of the Company, is a General Partner of the Vertical Group. As
        such, Mr. Lasersohn may be deemed to have an indirect pecuniary interest
        in an indeterminate portion of the shares beneficially owned by Vertical
        Group. Mr. Lasersohn disclaims beneficial ownership of these shares
        within the meaning of Rule 13d-3 under the Exchange Act.

(7)     Represents 105,716 shares of Common Stock issuable upon exercise of
        stock options exercisable within 60 days of March 31, 1999.

(8)     Includes 211,551 shares of Common Stock issuable upon exercise of stock
        options exercisable within 60 days of March 31, 1999.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

        Section 16(a) of the Securities Exchange Act of 1934, as amended,
requires the Company's officers and directors and persons owning ten percent of
the Company's Common Stock (collectively, "Reporting Persons") to file reports
of ownership with the Securities and Exchange Commission (the "SEC"). Reporting
Persons are required by SEC regulations to furnish the Company with copies of
all Section 16(a) forms filed.

        Based solely on its review of the copies of such forms received or
written representations from certain Reporting Persons, the Company believes
that, with respect to fiscal year 1998, all filing requirements applicable to
its Reporting Persons were complied with.


Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

        On January 9, 1998, a Note and a Security Agreement were made between
the Company and Richard C. David, M.D., the Director and Chairman of the Board
of the Company. Pursuant to the Note and Security Agreement, Dr. Davis borrowed
$350,000 from the Company and promised to pay to the Company thirty days after
demand the principal amount of the Note and interest on the unpaid principal
amount from the date of the Note until paid, at the rate of 5.6% per annum. The
repayment of the Note was secured by a pledge of 350,000 shares of the Company's
Common Stock owned by Dr. Davis. Dr. Davis repaid the principal amount of the
Note and the interest on March 30, 1998.

        On May 7, 1998, a Note and a Security Agreement were made between the
Company and Alan Marquardt, an officer of the Company. Pursuant to the Note and
Security Agreement, Mr. Marquardt borrowed $200,000 from the Company and
promised to pay to the Company upon the close of business on January 7, 2000 the
principal sum of the Note, which sum shall be free from interest for the term of
the Note. The repayment of the Note was secured by a pledge of 8,000 shares of
Boston Scientific Corporation's Common Stock owned by Mr. Marquardt.



                                       15
<PAGE>   16


                                   SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this amended Report to be
signed on its behalf by the undersigned, thereunto duly authorized in Menlo
Park, California, on the 30th day of April 1999.

                                        UroQuest Medical Corporation

                                        By: /s/ Terry E. Spraker, Ph.D.*
                                           -------------------------------------
                                           Terry E. Spraker, Ph.D.
                                           President and Chief Executive Officer


        Pursuant to the requirements of the Securities Exchange Act of 1934,
this amended Report has been signed by the following persons in the capacities
and on the dates indicated:

<TABLE>
<CAPTION>
            SIGNATURE                           TITLE                                      DATE
            ---------                           -----                                      ----
<S>                                  <C>                                               <C>
/s/ Terry E. Spraker, Ph.D.*         President, Chief Executive Officer                April 30, 1999
----------------------------------   and Director (Principal Executive Officer)
Terry E. Spraker, Ph.D.


/s/ Jeffrey L. Kaiser                Vice President, Chief Financial Officer,          April 30, 1999
----------------------------------   Secretary, and Treasurer (Principal Financial
Jeffrey L. Kaiser                    and Accounting Officer)


/s/ Tom E. Brandt*                   Director and Chief Operating Officer              April 30, 1999
----------------------------------
Tom E. Brandt


/s/ Richard C. Davis, Jr., M.D.*     Director, Chairman of the Board                   April 30, 1999
----------------------------------
Richard C. Davis, Jr., M.D.


/s/ Jack W. Lasersohn*               Director                                          April 30, 1999
----------------------------------
Jack W. Lasersohn


/s/ Gary E. Nei*                     Director                                          April 30, 1999
----------------------------------
Gary E. Nei


/s/ Elizabeth H. Weatherman*         Director                                          April 30, 1999
----------------------------------
Elizabeth H. Weatherman


*By:  /s/ Jeffrey L. Kaiser 
----------------------------------
      Jeffrey L. Kaiser
      Attorney-in-Fact
</TABLE>



                                       16