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

                                   FORM 10-QSB

(Mark One)

|X|   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

                For the Quarterly Period Ended December 31, 2004

|_|   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

              For the Transition Period from _________ to _________

                         Commission file number: 0-32835

                          GAMMACAN INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)

             Delaware                                     33-0956433
 (State or other jurisdiction of               (IRS Employer Identification No.)
  incorporation or organization)

                              11 Ben Gurion Street
                           54100 Givat Shmuel, Israel
                    (Address of principal executive offices)

                                  972 3 5774475
              (Registrant's telephone number, including area code)

             (Former name, former address and former fiscal year, if
                           changed since last report)

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 past 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 |_|

      APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
                           THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act
of 1934 after the distribution of securities under a plan confirmed by a court.
Yes |_|         No |_|

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the registrant's classes of
common equity, as of the latest practicable date: 26,231,510 shares issued and
outstanding as of January 31, 2005.
<PAGE>

ITEM 1. - FINANCIAL STATEMENTS


                           GAMMACAN INTERNATIONAL INC.
                    (Formerly- San Jose International, Inc.)
                          (A Development Stage Company)

                          INTERIM FINANCIAL STATEMENTS
                             AS OF DECEMBER 31, 2004


                                      2
<PAGE>

                           GAMMACAN INTERNATIONAL INC.
                    (Formerly- San Jose International, Inc.)
                          (A Development Stage Company)

                          INTERIM FINANCIAL STATEMENTS
                             AS OF DECEMBER 31, 2004

                                TABLE OF CONTENTS

                                                                          Page
Balance sheet                                                             F-2
Statement of operations                                                   F-3
Statement of stockholder's equity                                         F-4
Statement of cash flows                                                   F-5
Notes to the financial statements                                         F-6-10

<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                    (Formerly- San Jose International, Inc.)
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                                                                               December 31,    September 30,
                                                                                   2004           2004
                                                                                (Unaudited)      (Audited)
                                                                               ------------    ------------
                                   A s s e t s
<S>                                                                            <C>             <C>
CURRENT ASSETS:
     Cash and cash equivalent                                                  $  1,529,265    $    705,868
     Prepaid expenses                                                                52,661          11,029
     Other                                                                           14,060           5,971
                                                                               ------------    ------------
           T o t a l  current assets                                              1,595,986         722,868
                                                                               ------------    ------------

PROPERTY AND EQUIPMENT, net                                                          11,126           3,899
                                                                               ------------    ------------
           T o t a l  assets                                                   $  1,607,112    $    726,767
                                                                               ============    ============

                      Liabilities and stockholders' equity
CURRENT LIABILITIES:
    Accounts payable                                                           $    120,161    $    140,901
    Payroll and related expenses                                                     25,517          16,317
                                                                               ------------    ------------
           T o t a l  current liabilities                                           145,678         157,218
                                                                               ------------    ------------
STOCKHOLDERS' EQUITY:
    Preferred stock, ($ 0.0001 par value, 20,000,000 shares authorized:
       none issued and outstanding)
    Common stock ($ 0.0001 par value, 100,000,000 authorized, 26,199,510 and
       25,221,510 shares issued and outstanding as of December 31, 2004 and
       September 30, 2004,
       respectively)                                                                  2,619           2,522
    Additional paid-in capital                                                    1,809,512         941,619
     Warrants                                                                       406,123         139,494
    Deficit accumulated during development stage                                   (756,820)       (514,086)
                                                                               ------------    ------------
           T o t a l  stockholders' equity                                        1,461,434         569,549
                                                                               ------------    ------------
           T o t a l  liabilities and stockholders' equity                     $  1,607,112    $    726,767
                                                                               ============    ============
</TABLE>

The accompanying notes are an integral part of these condensed financial
statements.


                                      F-2
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                    (Formerly- San Jose International, Inc.)
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                                              Period from
                                                Three months ended            October 6,
                                                    December 31               1998* through
                                             ----------------------------     December 31,
                                                2004            2003              2004
                                             ------------    ------------    ------------
<S>                                          <C>             <C>            <C>
RESEARCH AND DEVELOPMENT COSTS               $     51,366    $         -    $    218,358
GENERAL AND ADMINISTRATIVE EXPENSES               192,510              36         551,979
FINANCIAL INCOME, NET                              (1,142)                         (1,142)
MINORITY INTERESTS IN LOSSES OF SUBSIDIARY                                        (12,375)
                                             ------------    ------------    ------------
NET LOSS FOR THE PERIOD                      $   (242,734)   $        (36)   $   (756,820)
                                             ============    ============    ============
BASIC AND DILUTED LOSS PER 1000
    COMMON SHARES                            $      (9.44)   $      (0.00)
                                             ============    ============
WEIGHTED AVERAGE NUMBER OF COMMON
    SHARES USED IN COMPUTING BASIC AND
    DILUTED LOSS PER COMMON SHARE              25,710,510      56,281,500
                                             ============    ============
</TABLE>

                        * Incorporation date, see note 1.

The accompanying notes are an integral part of these condensed financial
statements.


                                      F-3
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                    (Formerly- San Jose International, Inc.)
                          (A Development Stage Company)
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                          Common                       Additional
                                                            Common        stock                        Paid-in
                                                            Stock         amount         Warrants      Capital
                                                           ----------    -----------    -----------   -----------
<S>                                                        <C>           <C>            <C>           <C>
Beginning balance                                                  --    $        --    $        --   $        --
Stock issued for cash on October 6, 1998                    1,650,000            165                         (155)
Stock issued for cash on October 9, 1998                    2,722,500            272                         (107)
Stock issued for cash on October 10, 1998                     198,000             20                          100
Stock issued for services on December 1, 1998               9,900,000            990                        2,010
Stock issued for cash on April 7, 1999                        561,000             56                          284
Net loss
                                                           ----------    -----------    -----------   -----------
Balance at September 30, 1999 (audit)                      15,031,500          1,503                        2,132
Stock issued for cash on September 30, 2000                41,250,000          4,125                          875
                                                           ----------    -----------    -----------   -----------
Balance at September 30, 2000 (audit)                      56,281,500          5,628                        3,007
Net loss
                                                           ----------    -----------    -----------   -----------
Balance at September 30, 2001 (audit)                      56,281,500          5,628                        3,007
Net loss
                                                           ----------    -----------    -----------   -----------
Balance at September 30, 2002 (audit)                      56,281,500          5,628                        3,007
Contributed capital                                                                                         7,025
Net loss
                                                           ----------    -----------    -----------   -----------
Balance at September 30, 2003 (audit)                      56,281,500          5,628                       10,032
Cancellation of shares at June 8, 2004                    (32,284,988)        (3,228)                       3,228
Economic value of exercised option                                                                         62,600
Common stock and warrants issued on August 13, 2004         1,224,998            122        139,494       779,134
Gain on issuance of subsidiary stock on August 17, 2004                                                    86,625
Net loss
                                                           ----------    -----------    -----------   -----------
Balance at September 30, 2004 (audit)                      25,221,510          2,522        139,494       941,619
Common stock and warrants issued on November 11, 2004         978,000             97        266,629       867,893
Net loss
                                                           ----------    -----------    -----------   -----------
Balance at December 31, 2004 (unaudit)                     26,199,510    $     2,619    $   406,123   $ 1,809,512
                                                           ==========    ===========    ===========   ===========

<CAPTION>


                                                        Deficit
                                                        accumulated
                                                        during
                                                        development
                                                        stage            Total
                                                        -----------    -----------
<S>                                                     <C>            <C>
Beginning balance                                       $        --    $        --
Stock issued for cash on October 6, 1998                                        19
Stock issued for cash on October 9, 1998                                       165
Stock issued for cash on October 10, 1998                                      120
Stock issued for services on December 1, 1998                                3,000
Stock issued for cash on April 7, 1999                                         340
Net loss                                                     (3,444)        (3,444)
                                                        -----------    -----------
Balance at September 30, 1999 (audit)                        (3,444)           191
Stock issued for cash on September 30, 2000                                  5,000
                                                        -----------    -----------
Balance at September 30, 2000 (audit)                        (3,444)         5,191
Net loss                                                     (3,108)        (3,108)
                                                        -----------    -----------
Balance at September 30, 2001 (audit)                        (6,552)         2,083
Net loss                                                     (4,231)        (4,231)
                                                        -----------    -----------
Balance at September 30, 2002 (audit)                       (10,783)        (2,148)
Contributed capital                                                          7,025
Net loss                                                     (4,857)        (4,857)
                                                        -----------    -----------
Balance at September 30, 2003 (audit)                       (15,640)            20
Cancellation of shares at June 8, 2004
Economic value of exercised option                                          62,600
Common stock and warrants issued on August 13, 2004                        918,750
Gain on issuance of subsidiary stock on August 17, 2004                     86,625
Net loss                                                   (498,446)      (498,446)
                                                        -----------    -----------
Balance at September 30, 2004 (audit)                      (514,086)       569,549
Common stock and warrants issued on November 11, 2004                    1,134,619
Net loss                                                   (242,734)      (242,734)
                                                        -----------    -----------
Balance at December 31, 2004 (unaudit)                  $  (756,820)   $ 1,461,434
                                                        ===========    ===========
</TABLE>

The accompanying notes are an integral part of these condensed financial
statements.


                                      F-4
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                    (Formerly - San Jose International, Inc.)
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                   Period from
                                                           Three months ended     October 6, 1998*
                                                             December 31            through
                                                    ----------------------------   December 31,
                                                        2004            2003             2004
                                                    ------------    ------------   ------------
<S>                                                 <C>             <C>            <C>
CASH FLOWS FROM OPERATING
    ACTIVITIES:
    Net loss                                        $   (242,734)   $        (36)  $   (756,820)
    Adjustments required to reconcile net loss to
       net cash used in operating activities:
       Depreciation                                          285                            344
       Common stock issued for services                                                   3,000
       Minority interests in losses of subsidiary                                       (12,375)
       Acquisition of research and development in
           Process                                                                      100,000
       Option exercise costs                                                             62,600

    Changes in assets and liabilities:
       Increase in prepaid expenses                      (41,632)                       (52,661)
       Increase in other current assets                   (8,089)                       (14,060)
       Increase (decrease) in current liabilities        (11,540)             16        144,678
                                                    ------------    ------------   ------------
    Net cash used in operating activities               (303,710)            (20)      (525,294)
                                                    ------------    ------------   ------------
CASH FLOWS FROM INVESTING ACTIVITIES -
    purchase of property and equipment                    (7,512)                       (11,470)
                                                    ------------                   ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Issuance of common stock and warrants              1,134,619                      2,053,710
    Contribution to additional paid in capital                                           12,319
                                                    ------------                   ------------
    Net cash provided by financing activities          1,134,619                      2,066,029
                                                    ------------    ------------   ------------
    Net increase (decrease) in cash                      823,397             (20)            --
CASH AND CASH EQUIVALENT AT
    BEGINNING OF PERIOD                                  705,868              20             --
                                                    ------------    ------------   ------------
CASH AND CASH EQUIVALENT AT
    END OF PERIOD                                   $  1,529,265    $         --   $  1,529,265
                                                    ============    ============   ============
</TABLE>

                        * Incorporation date, see note 1.

The accompanying notes are an integral part of these condensed financial
statements.


                                      F-5
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                          (A Development Stage Company)
          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004
                                   (Unaudited)

NOTE 1. - ORGANIZATION AND DESCRIPTION OF BUSINESS

              GammaCan International Inc. (A Development Stage Company; "the
              Company") was incorporated on October 6, 1998, under the laws of
              the State of Delaware, as San Jose International, Inc. The Company
              has no significant revenues and no material operations and in
              accordance with Statement of financial Accounting Standard
              ("SFAS") No. 7 "Accounting and Reporting by Development Stage
              enterprises", the Company is considered a development stage
              company.

              Through December 31, 2004, the Company has incurred losses in an
              aggregate amount of $756,820. Such losses have resulted from the
              Company's activities as a development stage company. The Company's
              management estimated that it would be able to finance its
              operations from the cash raised in August and November 2004 until
              September 30, 2005. Continuation of the Company's current
              operations after utilizing the mentioned reserves until September
              30, 2005, is dependent upon obtaining financial support from
              investors until profitable results are achieved.

              On August 19, 2004, the name of the company was changed from "San
              Jose International, Inc." into "GammaCan International Inc.".

NOTE 2. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

              a.    Basis of accounting

                    The accompanying unaudited consolidated financial statements
                    of the Company and its subsidiary GammaCan Ltd. ( "the
                    Subsidiary ") have been prepared in accordance with
                    accounting principles generally accepted in the United
                    States for interim financial information and with the
                    instructions to Form 10-QSB and Item 310 of Regulation S-B.
                    Accordingly, they do not include all of the information and
                    footnotes required by accounting principles generally
                    accepted in the United States for complete financial
                    statements.

                    In the opinion of management, all adjustments (consisting of
                    normal recurring accruals) considered necessary for a fair
                    presentation have been included. Operating results for the
                    three-month period ended December 31, 2004, are not
                    necessarily indicative of the results that may be expected
                    for the year ended September 30, 2005. For further
                    information, refer to the financial statements and footnotes
                    thereto included in the consolidated annual report on Form
                    10-KSB for the year ended September 30, 2004.


                                      F-6
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                          (A Development Stage Company)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

NOTE 2. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

              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 reported
                    amounts of assets and liabilities and disclosure of
                    contingent assets and liabilities at the date of the
                    financial statements and the reported amounts of revenues
                    and expenses during the reporting period. Actual results
                    could differ from those estimates.

              c.    Cash equivalents

                    The Company and its subsidiary consider all highly liquid
                    investments, which include short-term bank deposits (up to
                    three months from date of deposit) that are not restricted
                    as to withdrawal or use, to be cash equivalents.

              d. Principles of consolidation

                    The consolidated financial statements include the accounts
                    of the Company and its subsidiary. All material intercompany
                    transactions and balances have been eliminated in
                    consolidation.

              e.    Loss per share

                    Basic and diluted net losses per common share are presented
                    in accordance with FAS No. 128 "Earning per share"
                    ("FAS128"), for all periods presented. Outstanding share
                    options and warrants have been excluded from the calculation
                    of the diluted loss per share because all such securities
                    are antidilutive for all periods presented. The total number
                    of common stocks related outstanding options and warrants,
                    excluded from the calculations of diluted net loss was
                    3,652,998 for the period ended December 31, 2004.

              f. Stock based compensation

                    The Company accounts for employee stock based compensation
                    in accordance with Accounting Principles Board Opinion No.
                    25 "Accounting for Stock Issued to Employees" ("APB 25") and
                    related interpretations. In accordance with FAS 123 -
                    "Accounting for Stock-Based Compensation" ("FAS 123"), the
                    Company discloses pro forma data assuming the Company had
                    accounted for employee stock option grants using the fair
                    value-based method defined in FAS 123.

                                      F-7
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                          (A Development Stage Company)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

NOTE 2. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

                    The following table illustrates the pro - forma effect on
                    net loss and loss per common share assuming the Company had
                    applied the fair value recognition provisions of FAS 123 to
                    its stock-based employee compensation for the three months
                    ended December 31, 2004:
<TABLE>
<CAPTION>
<S>                                                                                      <C>
                         Net loss as reported                                            $(242,734)
                         Deduct: stock based employee compensation
                             expense determined under fair value
                             method for all awards, net of related tax effects            (231,504)
                                                                                         ---------
                         Pro forma loss                                                  $(474,238)
                                                                                         =========
                         Net loss per 1000 common shares:
                         Basic and diluted - as reported                                   $(9.44)
                                                                                         =========
                         Basic and diluted - pro forma                                    $(18.45)
                                                                                         =========
</TABLE>

              g. Recently issued accounting pronouncements
                    In December 2004, the Financial Accounting Standards Board
                    ("FASB") issued the revised Statement of Financial
                    Accounting Standards ("FAS") No. 123, Share-Based Payment
                    (FAS 123R), which addresses the accounting for share-based
                    payment transactions in which the Company obtains employee
                    services in exchange for (a) equity instruments of the
                    Company or (b) liabilities that are based on the fair value
                    of the Company's equity instruments or that may be settled
                    by the issuance of such equity instruments. This Statement
                    eliminates the ability to account for employee share-based
                    payment transactions using APB Opinion No. 25, Accounting
                    for Stock Issued to Employees, and requires instead that
                    such transactions be accounted for using the grant-date fair
                    value based method. This Statement will be effective as of
                    the beginning of the first interim or annual reporting
                    period that begins after December 15, 2005, for small
                    business issuers (January 1, 2006 for the Company). Early
                    adoption of FAS 123R is encouraged. This Statement applies
                    to all awards granted or modified after the Statement's
                    effective date. In addition, compensation cost for the
                    unvested portion of previously granted awards that remain
                    outstanding on the Statement's effective date shall be
                    recognized on or after the effective date, as the related
                    services are rendered, based on the awards' grant-date fair
                    value as previously calculated for the pro-forma disclosure
                    under FAS 123.
                    The Company estimates that the cumulative effect of adopting
                    FAS 123R as of its adoption date by the Company (January 1,
                    2006), based on the awards outstanding as of December 31,
                    2004, will be approximately $1,150,000. This estimate does
                    not include the impact of additional awards, which may be
                    granted, or forfeitures, which may occur subsequent to
                    December 31, 2004 and prior to our adoption of FAS 123R. The
                    Company expects that upon the adoption of FAS 123R, the
                    Company will apply the modified prospective application
                    transition method, as permitted by the Statement. Under such
                    transition method, upon the adoption of FAS 123R, the
                    Company's financial statements for periods prior to the
                    effective date of the Statement will not be restated.


                                      F-8
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                          (A Development Stage Company)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

NOTE 3. - GOING CONCERN

              The accompanying financial statements have been prepared assuming
              that the Company will continue as a going concern. The Company has
              net losses for the period from inception (October 6, 1998) through
              December 31, 2004 of $756,820. The Company's continuation as a
              going concern is dependent on its ability to meet its obligations,
              to obtain additional financing as may be required and ultimately
              to attain profitability. These financial statements do not include
              any adjustments that might result from the outcome of this
              uncertainty. See also note 1.

NOTE 4. - RELATED PARTY TRANSACTIONS

              On November 4, 2004, the Subsidiary entered into a consulting
              agreement with PBD Ltd., a company controlled by a related party
              (the "Consultant"). Pursuant to the terms of the agreement, the
              Subsidiary will pay the Consultant a total fee of $50,000 for the
              services provided as detailed in the agreement. Mainly the
              services include:

            o     Summary of pre-clinical data and collection of historical
                  research data.
            o     Preparation of clinical trial.
            o     Oncologists survey for cancer indication.
            o     Survey of complementary technologies o Survey of potential
                  IVIg collaborators
            o     Initiation of contacts with potential partners.

              The work has been completed and the sum of $50,000 paid to the
              Consultant is included in "General & administrative expenses ".

              Additionally, it was also agreed that the Subsidiary shall
              reimburse the Consultant for out of pocket expenses incurred in
              connection with the performance of its duties under the agreement
              only if it has been approved in writing by the Subsidiary. The
              expenses of hiring a clinical expert to advise on the specifics of
              the protocol , for a total cost that will not exceed $8,000 ,was
              approved by the Subsidiary .

NOTE 5. - STOCK TRANSACTIONS

              On November 11, 2004 the Company entered into subscription
              agreements for the sale of 978,000 units at a purchase price of
              $1.25 per unit for a total consideration of $1,222,500. Each unit
              consisted of one common share and one share purchase warrant. Each
              share purchase warrant entitles the holder to purchase one
              additional common share for a period of two years after the date
              of the subscription agreement at an exercise price of $1.50 in the
              first 15 months and $2.00 for the next nine months. The fair value
              of the warrants estimated by using the Black & Scholes
              option-pricing model is $266,629.


                                      F-9
<PAGE>

                   GAMMACAN INTERNATIONAL INC. AND SUBSIDIARY
                          (A Development Stage Company)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

NOTE 6. - SUBSEQUENT EVENTS

              On January 25, 2005 the Company entered into a subscription
              agreement for the sale of 32,000 units at a purchase price of
              $1.25 per unit for a total consideration of $40,000. Each unit
              consisted of one common share and one share purchase warrant. Each
              share purchase warrant entitles the holder to purchase one
              additional common share for a period of two years after the date
              of the subscription agreement at an exercise price of $1.50 in the
              first 15 months and $2.00 for the next nine months. The fair value
              of the warrants estimated by using the Black & Scholes
              option-pricing model is approximately $9,000.

              According to a board of directors' resolution from January 11,
              2005 the following are entitled to receive option under the 2004
              Employees and Consultant Stock Option Plan:

            o     50,000 options to each of the three board members.
            o     Up to 68,000 options to a consultant, as a success bonus based
                  on certain milestones.
            o     50,000 options to each of two scientific advisors.

                                      F-10
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

We currently have no revenue from operations, we are in a start-up phase with
our existing assets and we have no significant assets, tangible or intangible.
There can be no assurance that we will generate revenues in the future, or that
we will be able to operate profitably in the future, if at all. We have incurred
net losses in each fiscal year since inception of our operations.

Our initial focus over the next several years is to demonstrate efficacy of IVIG
cancer immunotherapy in human clinical trials. Efficacy is the ability of a drug
or other treatment to produce the desired result when taken by its intended
users. If ultimately proven to be successful, and there can be no assurance that
it will be, we could be well-positioned to enter a licensing agreement with a
major pharmaceutical partner for commercial market development and sales.

We plan to begin enrolling patients in the first two quarters of 2005, for a
Phase II study using IVIG immunotherapy for a range of metastatic cancers. Since
IVIG is an established, safe therapy, we will not be required to conduct Phase I
studies. Phase II clinical trials will be conducted at no less than two medical
centers in Israel. It is expected to take at least six months to enroll
patients. We are planning on including several different cancers in the trial,
and preliminary results should be available during the first year of trial. We
may decide to continue to monitor patients for an extended period of time in
order to observe positive and negative effects arising at a later stage. If
successful or promising, and at this preliminary stage there is no assurance
they will be, results of these clinical trials will be used to enter into
discussions with a major pharmaceutical partner to work with us to potentially
commercialize the products.

We expect that it will take a number of years to receive final approval and
registration of an IVIg preparation for use as an anti-cancer reagent. However,
the company's strategy is to collaborate with a suitable IVIg manufacturer and
license them the rights to use IVIg as an anti-cancer agent, wherefore the
company's expected revenue stream is not entirely dependent upon the
registration of the IVIg products.

We are also contemplating to conduct additional clinical trials to test new
formulations of IVIG and to test IVIG immunotherapies for different cancers at
different stages of disease progression with varying dosages and routes of
administration. Our goal is to partner with a pharmaceutical company to conduct
these further Phase II and Phase III trials, in order to attain broad-based
regulatory approval.

Long Term Business Strategy

As noted previously, if IVIG shows significant promise thorough clinical trials,
we plan to ultimately seek a strategic commercial partner, or partners, with
extensive experience in commercialization and marketing of cancer drugs and or
therapeutic proteins. It is envisaged that the partner, or partners, would be
responsible for ensuring regulatory approvals and registrations in a timely
manner and for the penetration of the IVIG immunotherapies to the market. This
planned strategic partnership, or partnerships, could provide a marketing and
sales infrastructure for our products as well as financial and operational
support for global trials and other FDA requirements concerning future clinical
development. Our future strategic partner, or partners, could also provide
capital and expertise that would enable the partnership to develop new
formulations of IVIG cancer immunotherapy suitable for patients at different
stages of disease progression as well as IVIg derivatives.

Other Research and Development Plans


                                       3
<PAGE>

In addition to conducting early-stage clinical trials, we plan to conduct
research to develop alternative delivery systems, to determine the optimal
dosage for different patient groups and to investigate alternative sources of
immunoglobulin other than human plasma. We plan to conduct research to isolate
the fraction of IVIG, which is responsible for its anti-metastatic effects and
to develop a potential synthetic version of IVIG. These formulations will be
suitable for:

      o     Low-dose, preventative therapy for disease-free, high-risk
            individuals,
      o     Strong dose for use in conjunction with surgery and other cancer
            treatments, and
      o     Maintenance dose for use to prevent recurrence of cancer growth.
      o     Others

Our plan is to patent any successful inventions resulting from our further
research activities.

                              Other Strategic Plans

We are considering additional alternatives for expanding our pipeline of
putative drugs in order to create a well balanced portfolio of future products.

                              Planned Expenditures

The estimate expenses referenced herein are in accordance with the business
plan. As the technology is still in the development stage, it can be expected
that there will be changes in some budgetary items. Our planned expenditures for
the next 12 months include:

Category                                                                  Amount

Research &Development                                                 $1,500,000
----------------------

Marketing and Business Development                                      $164,000
----------------------------------

General & Administrative Expenses                                       $617,000
----------------------------------

Total                                                                 $2,281,000

We are considering expanding and accelerating our planned clinical trials
program for IVIG. Ultimately, such a change may enable our company to
commercialize the product sooner if the trials prove to be successful. If we
decide to adjust our program, we anticipate that our related clinical trial
costs over the next 12 months would increase by approximately $1 million. The
decision to proceed will be based on several major factors, one of which is the
ability of our company to attract sufficient financing on acceptable terms.

Forward Looking Statements

This Management's Discussion and Analysis of Financial Condition and Results of
Operations includes a number of forward-looking statements that reflect
management's current views with respect to future events and financial
performance. Those statements include statements regarding the intent, belief or
current expectations of Gammacan and members of its management team as well as
the assumptions on which such statements are based. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of future

                                       4
<PAGE>

performance and involve risk and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking statements.
Readers are urged to carefully review and consider the various disclosures made
in this report and in our other reports filed with the Securities and Exchange
Commission. Important factors currently known to Management could cause actual
results to differ materially from those in forward-looking statements. We
undertake no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
in the future operating results over time. Gammacan believes that its
assumptions are based upon reasonable data derived from and known about its
business and operations and the business and operations of Gammacan. No
assurances are made that actual results of operations or the results of
GammaCan's future activities will not differ materially from its assumptions.


                                       5
<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

      a)    Evaluation of Disclosure Controls and Procedures. As of December 31,
            2004, the Company's management carried out an evaluation, under the
            supervision of the Company's Chief Executive Officer and the Chief
            Financial Officer, of the effectiveness of the design and operation
            of the Company's system of disclosure controls and procedures
            pursuant to the Securities and Exchange Act , Rule 13a-15(d) and
            15d-15(d) under the Exchange Act. Based upon that evaluation, the
            Chief Executive Officer and Chief Financial Officer concluded that
            the Company's disclosure controls and procedures were effective, as
            of the date of their evaluation, for the purposes of recording,
            processing, summarizing and timely reporting material information
            required to be disclosed in reports filed by the Company under the
            Securities Exchange Act of 1934.

      b)    Changes in internal controls. There were no changes in the Company's
            internal controls over financial reporting, that occurred during the
            period covered by this report that have materially affected, or are
            reasonably likely to materially effect, the Company's internal
            control over financial reporting.


                                       6
<PAGE>

                           PART II - OTHER INFORMATION

                                     PART II

ITEM 1   LEGAL PROCEEDINGS

From time to time the Company is subject to litigation incidental to its
business. Such claims, if successful, could exceed applicable insurance
coverage. The Company is not currently a party to any material legal
proceedings.

ITEM 2   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On November 11, 2004 we entered into subscription agreements for the sale of
978,000 units to 2 offshore investors and 5 accredited investors at a purchase
price of $1.25 per unit for total proceeds of $1,222,500. Each unit consists of
one common share and one share purchase warrant. Each share purchase warrant
entitles the holder to purchase one additional common share for a period of two
years after the date of the subscription agreement at an exercise price of $1.50
in the first 15 months and $2.00 for the next nine months. For each sale of
these units we relied on either the exemption from registration provided for
accredited investors pursuant to Rule 506 of Regulation D, or Regulation S
promulgated under the Securities Act of 1933, as amended.

ITEM 3    DEFAULTS 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   EXHIBITS

                31.1 - Certification of Principal Executive Officer pursuant to
                Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities
                and Exchange Act of 1934, as amended

                31.2 - Certification of Principal Financial Officer pursuant to
                Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities
                and Exchange Act of 1934, as amended

                32.1 - Certification pursuant to 18 U.S.C. Section 1350, as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002 (Chief Executive Officer)

                32.2 - Certification pursuant to 18 U.S.C. Section 1350, as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002 (Chief Financial Officer)


                                       7
<PAGE>

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                  GAMMACAN INTERNATIONAL, INC.

            February 11, 2005                     /s/ TOVI BEN ZEEV
                                                  ------------------------
                                                  Tovi Ben Zeev,
                                                  Chief Financial Officer