UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

(Mark One)[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2007

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE 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
|incorporation or organization)  |  | No.)                        

Kiryat Ono MallAzorim Center A39 Jerusalem St.,55423 Kiryat Ono, Israel(Address of principal executive offices)

+ 972 3 7382616(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 [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [   ] No [X]

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: 44,958,917 shares issued and outstanding as of February 1, 2008.

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GAMMACAN INTERNATIONAL, INC.FORM 10-QSBTABLE OF CONTENTS

|PART I                                                       |  | 1 
|------------------------------------------------------------ |  | --
|ITEM 1 - FINANCIAL STATEMENTS                                |  | 1 
|ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF     |  |   
|OPERATION                                                    |  | 12
|ITEM 3A(T) - CONTROLS AND
 PROCEDURES                        |  | 20
|PART II                                                      |  | 21
|ITEM 1 - LEGAL PROCEEDINGS                                   |  | 21
|ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF  |  |   
|PROCEEDS                                                     |  | 21
|ITEM 3 - DEFAULTS UPON SENIOR SECURITIES                     |  | 21
|ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |  | 21
|ITEM 5 - OTHER INFORMATION                                   |  | 21
|ITEM 6 - EXHIBITS                                            |  | 22

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PART I

ITEM 1 - FINANCIAL STATEMENTS

GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)INTERIM FINANCIAL STATEMENTSAS OF DECEMBER 31, 2007TABLE OF CONTENTS

|                                              |  | Page
|--------------------------------------------- |  | ----
|                                             
|CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   |  |     
|(unaudited) :                                 |  |     
|Balance sheets                                |  | 2   
|Statements of operations                      |  | 3   
|Statements of changes in stockholders equity |  | 4   
|Statements of cash flows                      |  | 5   
|Notes to financial statements                 |  | 6-11







1

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                 |  | December 31, |             | September 30, |  
|---------------------------------------------------------------- |  | ------------ | ----------- | ------------- | -
|                                                                 |  | 2007         |             | 2007          |  
|                                                                 |  | (Unaudited)  |             | (Audited)     |  
|A s s e t s                                                      |  |              |             |               |  
|CURRENT ASSETS:                                                  |  |              |             |               |  
|Cash and cash equivalents                                        |  | $            | 3,117,969   |               | $
|Prepaid expenses                                                 |  |              | 49,101      |               |  
|Other                                                            |  |              | 45,382      |               |  
|T o t a l current assets                                         |  |              | 3,212,452   |               |  
|                                                                
|FUNDS IN RESPECT OF EMPLOYEE RIGHTS UPON                         |  |              |             |               |  
|RETIREMENT                                                       |  |              | 31,377      |               |  
|LONG TERM DEPOSITS                                               |  |              | 18,530      |               |  
|PROPERTY AND EQUIPMENT, NET                                      |  |              | 27,775      |               |  
|T o t a l assets                                                 |  | $            | 3,290,134   |               | $
|                                                                
|Liabilities and stockholders' equity                             |  |              |             |               |  
|CURRENT LIABILITIES:                                             |  |              |             |               |  
|Accounts payable                                                 |  | $            | 1,063,281   |               | $
|Payroll and related accruals                                     |  |              | 96,772      |               |  
|T o t a l current liabilities                                    |  |              | 1,160,053   |               |  
|                                                                
|LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT                    |  |              | 52,825      |               |  
|                                                                
|STOCKHOLDERS EQUITY:                                            |  |              |             |               |  
|Preferred stock, $ 0.0001 par value (20,000,000 shares           |  |              |             |               |  
|authorized; none issued and outstanding)                         |  |              |             |               |  
|Common stock, $ 0.0001 par value (200,000,000 authorized shares; |  |              |             |               |  
|44,958,917 and 44,958,917 shares issued and                      |  |              |             |               |  
|outstanding as of December 31, 2007 and September 30, 2007,      |  |              |             |               |  
|respectively)                                                    |  |              | 4,495       |               |  
|Additional paid-in capital                                       |  |              | 9,075,398   |               |  
|Warrants                                                         |  |              | 3,203,600   |               |  
|Deficit accumulated during the development stage                 |  |              | (10,206,237 | )             |  
|Services not yet rendered                                        |  |              | -           |               |  
|T o t a l stockholders' equity                                   |  |              | 2,077,256   |               |  
|T o t a l liabilities and stockholders equity                   |  | $            | 3,290,134   |               | $

The accompanying notes are an integral part of the financial statements.

2

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GAMMACAN INTERNATIONAL, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US $, except share data)

|                                    |  |                    |            |              |  |             |            |   |  | Period from
|----------------------------------- |  | ------------------ | ---------- | ------------ |  | ----------- | ---------- | - |  | -----------
|                                    |  |                    |            |              |  |             |            |   |  | October 6, 
|                                    |  |                    |            |              |  |             |            |   |  | 1998*      
|                                    |  | Three months ended |            | through     
|                                    |  | December 31        |            | December 31,
|                                    |  | 2007               |            | 2006         |  | 2007       
|                                    |  | (Unaudited)        |            | (Unaudited)  |  | (Unaudited)
|                                   
|RESEARCH AND DEVELOPMENT COSTS      |  | $                  | 514,490    |              |  | $           | 167,972    |   |  | $          
|GENERAL AND ADMINISTRATIVE EXPENSES |  |                    | 752,827    |              |  |             | 632,866    |   |  |            
|OPERATING LOSS                      |  |                    | 1,267,317  |              |  |             | 800,838    |   |  |            
|FINANCIAL INCOME                    |  |                    | (38,140    | )            |  |             | (4,827     | ) |  |            
|FINANCIAL EXPENSES                  |  |                    | 20,873     |              |  |             | 7,048      |   |  |            
|LOSS BEFORE TAXES ON INCOME         |  |                    | 1,250,050  |              |  |             | 803,059    |   |  |            
|TAXES ON INCOME                     |  |                    | -          |              |  |             | 4,356      |   |  |            
|LOSS FROM OPERATIONS OF THE COMPANY |  |                    |            |              |  |             |            |   |  |            
|AND ITS CONSOLIDATED SUBSIDIARY     |  |                    | 1,250,050  |              |  |             | 807,415    |   |  |            
|MINORITY INTERESTS IN LOSSES OF A   |  |                    |            |              |  |             |            |   |  |            
|SUBSIDIARY                          |  |                    | -          |              |  |             | -          |   |  |            
|NET LOSS FOR THE PERIOD             |  | $                  | (1,250,050 | )            |  | $           | (807,415   | ) |  | $          
|BASIC AND DILUTED LOSS PER          |  |                    |            |              |  |             |            |   |  |            
|COMMON SHARE                        |  | $                  | (0.03      | )            |  | $           | (0.03      | ) |  |            
|WEIGHTED AVERAGE NUMBER OF COMMON   |  |                    |            |              |  |             |            |   |  |            
|SHARE USED IN COMPUTING BASIC AND   |  |                    |            |              |  |             |            |   |  |            
|DILUTED LOSS PER COMMON SHARE       |  |                    | 44,958,917 |              |  |             | 28,475,161 |   |  |            

* Incorporation date, see note 1a.

The accompanying notes are an integral part of the financial statements.

3

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY(US $, except share data)

|                                           |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  | Deficit     |             |   |  |   |         |   |  |  
|------------------------------------------ |  | ----------- | - | ------ | ------ | -------- | - | ------- | ------- | ---------- | ----------- | -------- | --------- | -------- |  | ----------- | ----------- | - |  | - | ------- | - |  | -
|                                           |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  | accumulated |             |   |  |   |         |   |  |  
|                                           |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  | during      |             |   |  |   |         |   |  |  
|                                           |  |             |   |        | Common |          |   |         |         | Additional |             | the      |           | Services |  |             |             |  
|                                           |  | Number of   |   | Stock  |        |          |   |         | paid-in |            | development |          | not yet   |          |  |             |            
|                                           |  | Shares      |   | Amount |        | Warrants |   | capital |         | stage      |             | rendered |           | Total   
|Changes during the period from             |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|October 6, 1998 (date of incorporation)    |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|to September 30, 2005 (audited)            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|Common stock and warrants                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|issued for cash                            |  | 57,506,498  |   |        | $      | 5,750    |   |         | $       | 139,494    |             | $        | 782,141   |          |  | $           | -           |   |  | $ | -       |   |  | $
|Contributed capital                        |  |             |   |        |        |          |   |         |         |            |             |          | 7,025     |          |  |             |             |   |  |   |         |   |  |  
|Cancellation of shares at June 8, 2004     |  | (32,284,988 | ) |        |        | (3,228   | ) |         |         |            |             |          | 3,228     |          |  |             |             |   |  |   |         |   |  |  
|Gain on issuance of subsidiary             |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|Stock to third party                       |  |             |   |        |        |          |   |         |         |            |             |          | 86,625    |          |  |             |             |   |  |   |         |   |  |  
|Common stock and warrants                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|issued for cash on November 11,            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|2004, net of issuance costs                |  | 978,000     |   |        |        | 97       |   |         |         | 367,892    |             |          | 766,630   |          |  |             |             |   |  |   |         |   |  |  
|Common stock and warrants                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|issued for cash on January 25,             |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|2005, net of issuance costs                |  | 32,000      |   |        |        | 3        |   |         |         | 12,037     |             |          | 24,760    |          |  |             |             |   |  |   |         |   |  |  
|Issuance of warrants to Consultants'       |  |             |   |        |        |          |   |         |         |            |             |          | 97,192    |          |  |             |             |   |  |   |         |   |  |  
|Net loss                                   |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             | (1,712,618  | ) |  |   |         |   |  |  
|Balance at September 30, 2005 (audited)    |  | 26,231,510  |   |        |        | 2,622    |   |         |         | 519,423    |             |          | 1,767,601 |          |  |             | (1,712,618  | ) |  |   | -       |   |  |  
|Common stock and warrants                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|issued for cash on October 31,             |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|2005, net of issuance costs                |  | 666,666     |   |        |        | 67       |   |         |         | 72,410     |             |          | 365,670   |          |  |             |             |   |  |   |         |   |  |  
|Common stock and warrants                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|issued for cash on December 20,            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|2005, net of issuance costs                |  | 1,555,556   |   |        |        | 156      |   |         |         | 269,641    |             |          | 804,998   |          |  |             |             |   |  |   |         |   |  |  
|Options issued to employees and            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|directors                                  |  |             |   |        |        |          |   |         |         |            |             |          | 163,517   |          |  |             |             |   |  |   |         |   |  |  
|Options and warrants issued to non-        |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|employees                                  |  |             |   |        |        |          |   |         |         |            |             |          | 70,498    |          |  |             |             |   |  |   |         |   |  |  
|Net loss                                   |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             | (2,064,795  | ) |  |   |         |   |  |  
|Balance at September 30, 2006 (audited)    |  | 28,453,732  |   |        |        | 2,845    |   |         |         | 861,474    |             |          | 3,172,284 |          |  |             | (3,777,413  | ) |  |   | -       |   |  |  
|Common stock and warrants                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|issued for cash on February 27,            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|2007, net of issuance costs                |  | 16,250,000  |   |        |        | 1,625    |   |         |         | 2,231,459  |             |          | 3,652,640 |          |  |             |             |   |  |   |         |   |  |  
|Common stock issued as part of the         |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|prepayment of the convertible promissory   |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|note                                       |  | 33,753      |   |        |        | 3        |   |         |         |            |             |          | 13,498    |          |  |             |             |   |  |   |         |   |  |  
|Amendment of warrants exercise price       |  |             |   |        |        |          |   |         |         | 110,667    |             |          | (110,667  | )        |  |             |             |   |  |   |         |   |  |  
|Stock based compensation expenses:         |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|Common stock issued for services           |  | 221,432     |   |        |        | 22       |   |         |         |            |             |          | 149,978   |          |  |             |             |   |  |   |         |   |  |  
|Services not yet rendered                  |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   | (20,000 | ) |  |  
|Options issued to employees and            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|directors                                  |  |             |   |        |        |          |   |         |         |            |             |          | 1,713,169 |          |  |             |             |   |  |   |         |   |  |  
|Options and warrants issued to non-        |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|employees                                  |  |             |   |        |        |          |   |         |         |            |             |          | 378,028   |          |  |             |             |   |  |   |         |   |  |  
|Net loss                                   |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             | (5,178,774  | ) |  |   |         |   |  |  
|Balance at September 30, 2007 (audited)    |  | 44,958,917  |   |        |        | 4,495    |   |         |         | 3,203,600  |             |          | 8,968,930 |          |  |             | (8,956,187  | ) |  |   | (20,000 | ) |  |  
|Fully accretion in respect of services not |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|yet rendered                               |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   | 20,000  |   |  |  
|Options issued to employees and            |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|directors                                  |  |             |   |        |        |          |   |         |         |            |             |          | 74,435    |          |  |             |             |   |  |   |         |   |  |  
|Options and warrants issued to non-        |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             |             |   |  |   |         |   |  |  
|employees                                  |  |             |   |        |        |          |   |         |         |            |             |          | 32,033    |          |  |             |             |   |  |   |         |   |  |  
|Net loss                                   |  |             |   |        |        |          |   |         |         |            |             |          |           |          |  |             | (1,250,050  | ) |  |   |         |   |  |  
|Balance at December 31, 2007 (un-audited)  |  | 44,958,917  |   |        |        | 4,495    |   |         |         | 3,203,600  |             |          | 9,075,398 |          |  |             | (10,206,237 | ) |  | $ | -       |   |  |  

The accompanying notes are an integral part of the financial statements.

4

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                    |  |                                |            |                          |      |           |          |   |  | Period from           
|------------------------------------------------------------------- |  | ------------------------------ | ---------- | ------------------------ | ---- | --------- | -------- | - |  | ----------------------
|                                                                    |  |                                |            |                          |      |           |          |   |  | October
            6,
|                                                                    |  | Three months
            ended |            | 1998*
            to    
|                                                                    |  | December
            31,       |            | December
            31,
|                                                                    |  | 2007                           | 2006       |                          | 2007
|                                                                    |  | Unaudited                      |            | Unaudited                |      | Unaudited
|                                                                   
|CASH FLOWS FROM OPERATING
          ACTIVITIES:                     |  |                                |            |                          |      |           |          |   |  |                       
|Net loss for
        the period                                     |  | $                              | (1,250,050 | )                        |      | $         | (807,415 | ) |  | $                     
|Adjustments
        required to reconcile net loss to net cash used |  |                                |            |                          |      |           |          |   |  |                       
|in
        operating activities:                                    |  |                                |            |                          |      |           |          |   |  |                       
|Income
        and expenses not involving cash flows:               |  |                                |            |                          |      |           |          |   |  |                       
|Depreciation                                                        |  |                                | 1,575      |                          |      |           | 2,075    |   |  |                       
|Exchange
        differences on long term deposits                  |  |                                | 60         |                          |      |           |          |   |  |                       
|Common
        stock issued for services                            |  |                                | 20,000     |                          |      |           | 30,000   |   |  |                       
|Minority
        interests in losses of a subsidiary                |  |                                | -          |                          |      |           | -        |   |  |                       
|Write
        off of in process research and development            |  |                                | -          |                          |      |           | -        |   |  |                       
|Employees
        and consultants stock based compensation expenses |  |                                | 106,468    |                          |      |           | 312,727  |   |  |                       
|Increase
        in liability for employee rights upon retirement   |  |                                | 7,398      |                          |      |           | 6,808    |   |  |                       
|Changes
        in operating assets and liabilities:                |  |                                |            |                          |      |           |          |   |  |                       
|Increase
        in prepaid expenses                                |  |                                | (39,250    | )                        |      |           | (33,750  | ) |  |                       
|Decrease
        (increase) in other current assets                 |  |                                | 1,889      |                          |      |           | 7,755    |   |  |                       
|Increase
        in current liabilities                             |  |                                | 232,315    |                          |      |           | 115,639  |   |  |                       
|Net
        cash used in operating activities                       |  |                                | (919,595   | )                        |      |           | (366,161 | ) |  |                       
|                                                                   
|CASH FLOWS FROM INVESTING
          ACTIVITIES -                    |  |                                |            |                          |      |           |          |   |  |                       
|Decrease
        (increase) in long term deposits                   |  |                                | -          |                          |      |           | 208      |   |  |                       
|Funds
        in respect of employee rights upon retirement         |  |                                | (8,007     | )                        |      |           | (5,664   | ) |  |                       
|Purchase
        of property and equipment                          |  |                                | (3,012     | )                        |      |           | (576     | ) |  |                       
|Net
        cash used in investing activities                       |  |                                | (11,019    | )                        |      |           | (6,032   | ) |  |                       
|                                                                   
|                                                                   
|CASH FLOWS FROM FINANCING
          ACTIVITIES:                     |  |                                |            |                          |      |           |          |   |  |                       
|Issuance
        of convertible promissory note                     |  |                                | -          |                          |      |           | 350,000  |   |  |                       
|Issuance
        of common stock and warrants net of issuance costs |  |                                | -          |                          |      |           | -        |   |  |                       
|Net
        cash provided by financing activities                   |  |                                | -          |                          |      |           | 350,000  |   |  |                       
|INCREASE (DECREASE) IN
          CASH AND CASH                      |  |                                |            |                          |      |           |          |   |  |                       
|EQUIVALENTS                                                         |  |                                | (930,614   | )                        |      |           | (22,193  | ) |  |                       
|BALANCE OF CASH AND CASH
          EQUIVALENTS AT                   |  |                                |            |                          |      |           |          |   |  |                       
|BEGINNING
          OF PERIOD                                       |  |                                | 4,048,583  |                          |      |           | 538,738  |   |  |                       
|BALANCE OF CASH AND CASH
          EQUIVALENTS                      |  |                                |            |                          |      |           |          |   |  |                       
|AT END OF
          PERIOD                                          |  | $                              | 3,117,969  |                          |      | $         | 516,545  |   |  | $                     

* Incorporation date, see note 1a.The accompanying notes are an integral part of the financial statements.

5

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - GENERAL

a.
	OperationGammaCan International, Inc. (A Development Stage Company) was incorporated on October 6, 1998, under the laws of the State of Delaware, under the name of San Jose International, Inc. Unless the context
indicates otherwise, references to the Company refer to GammaCan International, Inc. and its Israeli subsidiary, GammaCan Ltd (the Subsidiary).The Company is engaged in research
    and development in the biotechnology field and is considered a development
    stage company in accordance with Statement of Financial Accounting Standard
    (SFAS) No. 7 Accounting and Reporting by Development Stage Enterprises.The Companys lead product candidate, VitiGam, is an anti-cancer immunotherapy derived entirely from the plasma of donors with vitiligo, a benign skin condition affecting up to 2% of the general
population. The Company is developing VitiGam to treat melanoma. The Company has demonstrated that plasma from individuals with vitiligo contains anti-melanoma activities, and the Company is seeking to develop VitiGam for the treatment
of Stage III and Stage IV melanoma.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, 2007 of $10,206,237, as well as negative cash flow
    from operating activities. Based upon the Companys existing spending
    commitments, the Company may not have sufficient cash resources to meet its
    liquidity requirements through  September 30, 2008. Accordingly, these factors
    raise substantial doubt about the Company's ability to continue as a going
    concern. Management is in the process of evaluating various financing alternatives
    as the Company will need to finance future  research and development activities
    and general and administrative expenses through fund raising in the public
    or private equity markets. Although there is no assurance that the Company
    will be successful with those initiatives, management expects  to secure
    the necessary financing as a result of ongoing financing discussions with
    third party investors and existing shareholders.These financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. The Company's continuation as a going concern is dependent on its
ability to obtain additional financing as may be required and ultimately to attain profitability.


6

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 1 - GENERAL(continued):

b.
	Unaudited interim financial informationThe accompanying unaudited financial statements of the Company and the 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. 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, 2007.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, 2007, are not necessarily indicative of the results that may be expected for the year ended September 30, 2008.c.
	Income taxIn June 2006, the FASB issued Interpretation
    No. 48, Accounting for Uncertainty in Income Taxes (FIN
    48). FIN 48 clarifies the accounting for uncertainty in income taxes
    recognized in  an enterprise's financial statements in accordance with Statement
    of Financial Accounting Standards No. 109, Accounting for Income Taxes (FAS
    109). This interpretation prescribes a minimum recognition threshold
    a tax position  is required to meet before being recognized in the financial
    statements. FIN 48 also provides guidance on derecognition of tax positions,
    classification on the balance sheet, interest and penalties, accounting in
    interim periods, disclosure, and  transition. The Company adopted FIN 48
    effective October 1, 2007. FIN 48 requires significant judgment in determining
    what constitutes an individual tax position as well as assessing the outcome
    of each tax position. Changes in judgment as to  recognition or measurement
    of tax positions can materially affect the estimate of the effective tax
    rate and consequently, affect the operating results of the Company. The Company
    had no unrecognized tax benefits as of October 1, 2007. The result of  the
    implementation of FIN 48 did not have any impact on the Companys financial
    statements. The Company recognizes interest and penalties related to its
    tax contingencies as income tax expense. As of October 1, 2007, the Company
    recorded
$30,000 of penalties related to tax contingencies.As of October 1, 2007, the Company is subject to Israeli income tax examinations and to U.S. Federal income tax examinations for the tax years of 2004 through 2007. As of December 31, 2007, the Company did
not record any change to its unrecognized tax benefits.


7

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 1 - GENERAL(continued):

d.
	Recently issued accounting pronouncements1.
	In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair
      Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework and
gives guidance regarding the methods used for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods
within those fiscal years (October 1, 2008, for the Company). The Company is currently assessing the impact that SFAS 157 may have on its results of operations and financial position.2.
	In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, The
      Fair Value Option for Financial Assets and Financial Liabilities - Including
      an amendment of FASB Statement No. 115 (SFAS 159). SFAS 159 is expected to expand the use of fair value accounting but does not affect existing standards which require certain assets or liabilities to be carried at fair value. The objective of
SFAS 159 is to improve financial reporting by providing companies with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting
provisions. Under SFAS 159, a company may choose, at its initial application or at other specified election dates, to measure eligible items at fair value and report unrealized gains and losses on items for which the fair value option has been
elected in earnings at each subsequent reporting date. SFAS 159 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years (October 1, 2008, for the Company). If the
company is to elect the fair value option for its existing assets and liabilities, the effect as of the adoption date, shall be reported as a cumulative- effect adjustment to the opening balance of retained earnings. The Company is currently
assessing the impact that SFAS 159 may have on its financial position.3.
	In December 2007, the FASB issued Statement
    of Financial Accounting Standards No. 141 (revised 2007), Business
     Combinations (“SFAS 141(R)”). SFAS 141(R) changes
     the accounting for business combinations, including the measurement of acquirer
     shares issued in consideration for a business combination, the recognition
     of contingent consideration, the accounting for contingencies, the recognition
     of capitalized in-process research and development, the accounting for acquisition-related
     restructuring cost accruals, the treatment of acquisition related transaction
     costs and the recognition of changes in the acquirers income tax valuation
     allowance and income tax uncertainties. SFAS 141(R) applies prospectively
     to business combinations for which the acquisition date is on or after the
     beginning of the first annual reporting period beginning on or after December
     15, 2008. Early application is prohibited. The Company will be required
     to adopt SFAS 141(R) on October 1, 2009.


8

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 1 - GENERAL(continued):

4.
	In December 2007, the FASB issued SFAS No. 160, NoncontrollingInterestsin Consolidated
Financial Statements, an Amendment of ARB No. 51(SFAS 160). SFAS 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. An ownership interest in subsidiaries held by parties other than the parent should be presented in the consolidated statement of financial position within equity, but separate from the parent's equity. SFAS 160 requires that changes in a
parent's ownership interest while the parent retains its controlling financial interest in its subsidiary should be accounted for similarly as equity transactions. When a subsidiary is deconsolidated, any retained noncontrolling equity investment in
the former subsidiary should be initially measured at fair value, with any gain or loss recognized in earnings. SFAS 160 requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the
noncontrolling interest. It also requires disclosure, on the face of the consolidated income statement, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interests. SFAS 160 is effective for fiscal years
(including interim periods within those fiscal years) beginning on or after December 15, 2008 (October 1, 2009 for the Company). Earlier adoption is prohibited. The statement shall be applied prospectively as of the beginning of the fiscal year in
which it is initially applied, except for the presentation and disclosure requirement which shall be applied retrospectively for all periods presented. The Company is currently evaluating the impact SFAS 160 will have on its consolidated financial
statements.5.
	In June 2007, the Emerging Issues Task Force (EITF) reached Issue No. 07- 03, Accounting
      for Nonrefundable Advance Payments for Goods or Services Received to Be
      Used in Future Research and Development Activities (EITF No. 07-03). EITF No. 07-03 requires that nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities be deferred and amortized over the
period that the goods are delivered or the related services are performed, subject to an assessment of recoverability. The provisions of EITF 07-03 will be effective for financial statements issued for fiscal years beginning after December 15, 2007,
and interim periods within those fiscal years (October 1, 2008, for the Company). The provisions of EITF No. 07-03 are applicable for new contracts entered into on or after the effective date. Earlier application is not permitted.


9

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 1 - GENERAL(continued):

6.
	In December 2007, the FASB ratified
    EITF Issue No. 07-01,  Accounting
      for Collaborative Arrangements (EITF 07-01).
      EITF 07-01 defines collaborative arrangements and establishes reporting
      requirements for  transactions between participants in a collaborative
      arrangement and between participants in the arrangement and third parties.
      EITF 07-01 also establishes the appropriate income statement presentation
      and classification for joint operating  activities and payments between
      participants, as well as the sufficiency of the disclosures related to
      these arrangements. EITF 07-01 is effective for fiscal years beginning
      after December 15, 2008 (October 1, 2009, for the Company). EITF 07-01
       shall be applied using modified version of retrospective transition for
      those arrangements in place at the effective date. An entity should report
      the effects of applying this Issue as a change in accounting principle
      through retrospective application to all prior periods presented for all
      arrangements existing as of the  effective date, unless it is impracticable
      to apply the effects of the change retrospectively. The Company is
      currently assessing the impact that EITF 07-01 may have on its results
      of operations and financial position.


NOTE 2 - COMMITMENTS:

a.
	On December 13, 2007, the Company entered into a Share Purchase Agreement effective as of November 26, 2007 with ARP Biomed, Ltd. (ARP). The Share Purchase Agreement provides that subject to fulfillment of certain closing conditions, including the receipt of an Israeli tax ruling, ARP will sell to the Company 12.5% of the issued and outstanding shares of the
Subsidiary such that at closing the Company will own 100% of the issued and outstanding shares of the Subsidiary. In consideration for such sale, the Company agreed to issue to ARP, at closing, 2,697,535 shares of its common stock, valued at
$1,348,768, calculated based upon the average of the closing price for the period which is two days before and after November 26, 2007, a warrant to acquire 1,123,973 shares of its common stock and an additional warrant to acquire 449,589 shares
of its common stock, both valued at $549,705 using the Black Scholes option-pricing model.The acquisition is to be accounted for by the purchase method. The purchase price will be allocated to in-process Research and Development.b.
	On December 23, 2007, the Subsidiary
    signed an Amendment to the Research and Licensing Agreement (the Amendment)
     with Tel Hashomer Medical Research Infrastructure and Services Ltd (THM).
     On February 11, 2008, the Amendment was amended and restated. The Amendment
     reduces the future license fees payable under the THM Agreement and clarifies,
     among other things, the nature of research activities pursuant to the THM
     Agreement. Further, the research period under the THM Agreement has been
     extended for a two year period, commencing January 1, 2007, and the research
     funding for this period totals $500,000.In connection with the Amendment the Company issued to THM warrants to acquire 500,000 shares of its common stock, exercisable, commencing December 31, 2008, at $0.40 per share. The fair value of these
warrants as of December 31, 2007 was $137,554, using the Black Scholes option-pricing model and was based on the following assumptions: dividend yield of 0% for all years; expected volatility of 85%; risk-free interest rates of 3.45%; and
expected lives of 5 years.Pursuant to certain conditions, the Company will
      issue to THM an additional warrant to acquire 250,000 shares of its common
      stock at an exercise price equal to the closing price of the Companys
      common stock on the date of issuance of such warrant.


10

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GAMMACAN INTERNATIONAL, INC.(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENT

> Following are transactions that took place during the quarter ended December 31, 2007:

a.
	On October 30, 2007, 225,000 options were granted to a new member of the Board of Directors, at an exercise price of $0.41 per share with one third vesting on each of the first, second and third
anniversary of the date of grant. The fair value of these options on the date of grant was $65,881, using the Black Scholes option-pricing model and was based on the following assumptions: dividend yield of 0% for all years; expected volatility
of 86%; risk-free interest rates of 4.16%; and expected lives of 5.38 years.b.
	On October 30, 2007, a director of
    the Company resigned from the Companys Board of Directors. The departing director is continuing to serve the Company as a consultant. The
departing directors 225,000 options, previously granted, will continue to vest and be exercisable under the terms of the original option agreements.The fair value of the unvested portion of these options as of December 31, 2007 was $49,705, using the Black Scholes option-pricing model and was based on the following assumptions: dividend yield of 0%
for all years; expected volatility of 85%; risk-free interest rates of 3.45%; and expected lives of 5.22 years. The fair value of the options will be revalued over the related service periods and recognized over the vesting periods using the
accelerated method based on multiple option award approach.


NOTE 4- RELATED PARTIES - TRANSACTIONS:

> On November 30, 2007, the employment agreement with a related party, who served as the Vice President of Corporate Development, was terminated.

NOTE 5 - LOSS PER SHARE:

> The total number of common stock options and warrants
>     excluded from the calculations of diluted net loss was 25,197,558 for the
>     three months ended December 31, 2007 (6,317,775 for the three months ended
>     December 31, 2006).

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

The following informationshouldbe read in conjunction with the financial statements and notes thereto
appearing elsewhere in this Quarterly Report.

We have included in this Quarterly Report certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning our business,
operations and financial condition. Forward-looking statements consist of all non-historical information, and the analysis of historicalinformation,
including the references in this Quarterly Report to future revenues, collaborative agreements, future expense growth, future credit exposure, earnings before interest, taxes, depreciation and amortization, future profitability, anticipated cash
resources, anticipated capital expenditures, capital requirements, and the Companys plans for future periods. In addition, the words could, expects, anticipates, objective, plan,
may affect, may depend, believes, estimates, projects and similar words and phrases are also intended to identify such forward-looking statements.

Actual results could differ materially from those projected in our forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things,
unanticipated technological difficulties, the length, scope and outcome of our clinical trial, costs related to intellectual property, cost of manufacturing and higher consulting costs, product demand, changes in domestic and foreign economic,
market and regulatory conditions, the inherent uncertainty of financial estimates and projections, the uncertainties involved in certain legal proceedings, instabilities arising fromterroristactions and responses thereto, and other considerations described as Risk Factors in other filings by the Company with the SEC. Such factors may also cause substantial
volatility in the market price of our common stock. All such forward-looking statements are current only as of the date on which such statements were made. We do not undertake any obligation to publicly update any forward-looking statement to
reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

As used in this Quarterly Report, theterms"we", "us", "our", "Company" and "GammaCan" mean GammaCan International, Inc. and
our subsidiary, GammaCan, Ltd., unless otherwise indicated.

All dollar amounts refer to US dollarsunlessotherwise indicated.

Overview

We are a development stage company and currently have no revenue from operations. Other than existing cash reserves and our intellectual property we have no significant assets, tangible or
intangible. Presently, we do not have sufficient cash resources to meet our liquidity requirements through September 30, 2008 and we expect to seek to raise additional funds during that time period. There can be no assurance that we will raise
additional funds on a timely basis, on terms acceptable to us or at all and 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.

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Plan of Operation

Short Term Business Strategy

We are a life science company focused on the development of immunotherapy and related approaches to treat cancer. Until recently, we have focused on the use of intravenous immunoglobulins, orIgGs, derived from human plasma to treat melanoma, prostate, and colon cancers. We believe that IgG therapy may be the basis of a more effective and efficient cancer treatment
both as a mono or a combination therapy as well as for adjuvant cancer treatments (IgGs used in concert with other proprietary pharmaceuticals). Our business objective is to become a recognized leader in the development of immunotherapy including
IgG-based therapies and related approaches to treat cancer.

IgG-based immunotherapy will require regulatory approval before being commercially marketed for human therapeutic use. Clinical trials generally include three phases that, together, may take several years to complete.
Phase I clinical studies are conducted primarily to establish safety and determine the maximum tolerated dose, orMTD. Phase II studies are designed to determine preliminary
efficacy and establish dosing. Phase III studies are conducted to demonstrate therapeutic efficacy in a statistically significant number of patients, at an optimal dose level, method or route of delivery into the body, and a schedule of
administration. Once clinical trials are successfully completed, products may receive regulatory approval.

We are pursuing the development of IgG-based technology to develop therapies for the treatment of melanoma, as well as therapies directed toward disrupting the blood supply to cancers, referred to as
anti-angiogenesis.

Melanoma:Our lead product candidate, VitiGam, is a first-in-class anti-cancer immunotherapy derived
entirely from the plasma of donors with vitiligo, a benign autoimmune skin condition affecting up to two percent of the general population. We have demonstrated that plasma from individuals with vitiligo contains anti-melanoma activities. Based on
this, we are developing VitiGam to initially address Stage III and Stage IV melanoma and possibly earlier stages of melanoma at a future time.

In June 2007, we completed a non-FDA Phase II clinical trial designed to test the safety and efficacy of standard IgG (collected and manufactured from general population donors,
which may have included donors with vitiligo) in patients with prostate cancer, colon cancer and melanoma. In this trial, no serious untoward effects of IgGs were noted. In one patient with melanoma, the cancer remained stable or improved over eight
cycles of therapy (approximately ten months).

In addition to the pre-clinical evidence we have accumulated using vitiligo-derived plasma; the above observations provide further validation for our plan to develop VitiGam.

We plan to file an Investigational New Drug Application, orIND, for VitiGam in the near future. We believe that
the FDA is well acquainted with IgG-based therapies and their safety profilesresulting from a long history of regulatory approvals of IgG-based products.

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In addition to VitiGam, we are also developing the following:

- Next
      generation (recombinant) VitiGam-
      VitiGam is currently manufactured as a mixture that largely consists of IgG molecules (antibodies of the IgG type). We anticipate that within this mixture, only a subset of IgG molecules will be responsible for the biological activity of
  VitiGam. Next generation VitiGam will be composed ofonly the IgGs required to exert the anti-melanoma effect, thereby creating a more effective
    compound. Identifying the relevant IgGs may also permit cost reductions; and
- Cancer vaccines based on VitiGam- An off-the-shelf cancer vaccine is considered a
silver bullet in cancer therapy. We anticipate that based on our evolving understanding of the specific IgG molecules responsible for the biological activity of VitiGam, we may be in a position to identify the corresponding
antigens that may be used to develop melanoma cancer vaccines.

Anti-angiogenesis:We are developing additional novel IgG-based therapies for cancer and other diseases.
These therapies are based on the disruption of the blood supply to cells. Our scientists have shown that several mechanisms may be involved in mediating the anti-cancer effects of IgG-based immunotherapies. Angiogenesis is one of a number of well
known pathways to deprive cells from their blood supply.

In June 2007, we announced the discovery of proprietary IgG sub-fractions in human plasma, which contain potent anti-angiogenic properties. These sub-fractions may be used for treatment of
disorders resulting from neovascularization (the formation of new blood vessels or angiogenesis).

We have established a pre-clinical development program to define and characterize these anti-angiogenic anti-cancer fractions and to test their biological activity in animal models. We believe
that successfully developed therapies derived from our novel IgG sub-fractions have the potential to address multi-billion dollar markets. For example, Avastin®, also known asbevacizumab, counteracts VEGF, a growth factor which stimulates neovascularization, and is used to treat colon and other cancers. Sales for Avastin® in 2006 were in excess of $2 billion.

We are also contemplating conducting additional clinical trials to test new formulations and/or combinations of IgG-based immunotherapy candidates and to test these formulations and/or methods
for different cancers at different stages of disease progression with varying dosages and routes of administration. To achieve this, we may elect to partner with a pharmaceutical company to conduct these further clinical trials, although there can
be no assurance that we will locate a pharmaceutical company able, or willing, to partner with us on terms commercially acceptable to us, in order to attain broad-based regulatory approval.

Although there can be no assurance that the FDA will approve VitiGam, or any other IgG immunotherapy candidate, we expect that, at a minimum, it will take a number of years to receive
final approval and registration for commercial use as an anti-cancer agent. Our strategy is to collaborate with a suitable partner, although there can be no assurance that we will locate a suitable partner, to support late stage (Phase III) clinical
development, registration and/or sales for our IgG-based cancer products.



14

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Long Term Business Strategy

If our
    IgG-based cancer immunotherapy candidates show significant promise in clinical
    trials, and at this preliminary stage there can be no assurance that any
    such immunotherapy candidates will show significant promise, we plan to ultimately
    seek a strategic commercial partner, or
    partners, with extensive experience in the development, commercialization,
    and marketing of cancer drugs and/or other infused therapeutic proteins,
    although there can be no assurance that we will locate a  strategic commercial
    partner or partners on terms commercially acceptable to us. We anticipate
    such partner or partners would be responsible for, or substantially support,
    late stage clinical trials (Phase III) to ensure regulatory approvals and
     registrations in the appropriate territories in a timely manner. We further
    anticipate that the partner, or partners, would be responsible for sales
    and marketing of our IgG-based immunotherapies in certain agreed upon territories.
    Such planned  strategic partnership, or partnerships, may provide a marketing
    and sales infrastructure for our products as well as financial and operational
    support for global clinical trials, post marketing studies, label expansions
    and other regulatory  requirements concerning future clinical development
    in the United States and elsewhere. Any future strategic partner, or partners,
    may also provide capital and expertise that would enable the partnership
    to develop new formulations of IgG cancer  immunotherapy suitable for patients
    at different stages of disease progression as well as IgG derivatives. Under
    certain circumstances, we may determine to develop one or more of our IgG
    based cancer immunotherapies on our own, either world-wide or  in select
    territories.

Other Planned Research and Development Activities

In addition to conducting early-stage clinical trials, we plan to conduct pre-clinical research to accomplish the following:

- Further
deepen and broaden our understanding of the biology of our IgG products in cancer;
- Develop
alternative delivery systems and determine the optimal dosage for different patient groups;
- Investigate alternative sources of immunoglobulin other than human plasma;
- Develop novel IgG-based  therapies; and
- Develop successor products.

Our plan is to patent any successful inventions resulting from our future research activities and to exploit any other means that may exist to protect our future IgG anti-cancer therapies in the commercial markets;
although at this early stage there can be no assurance that there will be any successful inventions resulting from such research activities.

Other Planned Strategic Activities

In addition to developing our own IgG-based anti-cancer therapies drug portfolio, we are, on an on-going basis, considering in-licensing and other means of obtaining additional lead molecules of technologies to complement
and/or expand our current product portfolio. Our goal is to create a well-balanced product portfolio that includes lead molecules in different stages of development and addresses different medical needs.

15

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Critical accounting policies and estimates

Management's discussion and analysis of the financial condition and results of operations is based upon the consolidated financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, expenses and related
disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates and judgments. We base our estimates on various factors, including historical experience that we believe to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Going concern assumption

The accompanying financial statements have been prepared assuming that we will continue as a going concern. We have net losses for the period from inception (October 6, 1998) through December
31, 2007 of $10,206,237, as well as negative cash flow from operating activities. Based upon our existing spending commitments, we may not have sufficient cash resources to meet our liquidity requirements through September 30, 2008. Accordingly,
these factors raise substantial doubt about our ability to continue as a going concern. Management is in the process of evaluating various financing alternatives as we will need to finance future research and development activities and general and
administrative expenses through fund raising in the public or private equity markets. Although there is no assurance that we will be successful with those initiatives, management expects to secure the necessary financing as a result of ongoing
financing discussions with third party investors and existing shareholders.

The financial statements do not include any adjustments that may be necessary should we be unable to continue as a going concern. Our continuation as a going concern is dependent on our ability
to obtain additional financing as may be required and ultimately to attain profitability.

Valuation of options and warrants

We granted options to purchase shares of our common stock to employees and consultants and issued warrants in connection with fund raising.

On October 1, 2006 we adopted 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 we obtain employee services in exchange for (a) equity instruments of the
Company or (b) liabilities that are based on the fair value of our equity instruments or that may be settled by the issuance of such equity instruments. FAS 123R eliminates the ability to account for employee share-based payment transactions using
APB 25, and requires instead that such transactions be accounted for using the grant-date fair value based method.

16

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The fair value of each stock option grant was estimated at the date of grant using a Black-Scholes option pricing model. The volatility is based on a historical volatility, by statistical
analysis of the weekly share price for past periods. The expected term is the length of time until the expected dates of exercising the options, based on estimated data regarding employees exercise behavior.

FAS 123R 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 servicesarerendered, based on the awards grant-date fair
value as previously calculated for the pro-forma disclosure under FAS 123.

We applied the modified prospective application transition method, as permitted by the Statement. Under such transition method, upon the adoption of FAS 123R, our financial statements for
periods prior to the effective date of the Statement are not restated.

We account for equity instruments issued to third party service providers (non-employees) in accordance with the fair value based on an option-pricing model, pursuant to the guidance in EITF
96-18Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling Goods or
Services. The fair value of the options granted is revalued over the related service periods and recognized using the accelerated method.

Deferred income taxes

Deferred taxes are determined utilizing the assets and liabilities method based on the estimated future tax effects of differences between the financial accounting and tax bases of assets and
liabilities under the applicable tax laws. Deferred tax balances are computed using the tax rates expected to be in effect when those differences reverse. A valuation allowance in respect of deferred tax assets is provided if, based upon the weight
of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We have provided a full valuation allowance with respect to our deferred tax assets.

Regarding our Israeli subsidiary, Gammacan Ltd, paragraph 9(f) of FAS 109, Accounting for Income Taxes,
prohibits the recognition of deferred tax liabilities or assets that arise from differences between the financial reporting and tax bases of assets and liabilities that are measured from the local currency into dollars using historical exchange
rates, and that result from changes in exchange rates or indexing for tax purposes. Consequently, the above mentioned differences were not reflected in the computation of deferred tax assets and liabilities.

Income Taxes

We adopted FIN 48 effective
October 1, 2007. FIN 48 requires significant judgment in determining what constitutes
an individual tax position as well as assessing the outcome of each  tax position.
Changes in judgment as to recognition or measurement of tax positions can materially
affect the estimate of the effective tax rate and consequently, affect our operating
results. We had no unrecognized tax  benefits as of October
1, 2007. The result of the implementation of FIN 48 did not have any impact on
our financial statements.

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Results of Operations

The following table summarizes certain statements of operations data for the Company for the three months period ended December 31, 2007 and 2006 (in US$):

|                                           |  | Three months ended
|------------------------------------------ |  | ------------------
|                                           |  | December 31,      
|Operating Data:                            |  | 2007              
|                                          
|Research and development costs             |  | $                 
|General and administrative expenses        |  |                   
|Financial expense (income), net            |  |                   
|Loss before tax on income                  |  |                   
|Taxes on Income                            |  |                   
|Net loss for the period                    |  | $                 
|                                          
|Loss per common share  basic and diluted  |  | $                 
|Weighted average common shares outstanding |  |                   

Research and development costs

Research and development expenses are the costs incurred in the process of our pre-clinical and our clinical trials. Clinical trial and pre-clinical expenses include regulatory consultant
compensation and fees, research expenses, purchase of plasma, the cost of manufacturing IgG and payments to medical centers for patient recruitment and treatment.

During the three months
ended December 31, 2007 and 2006, research and development expenses included,
among others, the cost of IgG used in the clinical trials and research work,
payments to  medical centers and research labs for clinical trial and pre-clinical
trial work, regulatory and scientific consultants compensation, costs related
to the maintenance of our registered patents, costs related to the filings of
patent applications as  well as salaries and related expenses of research and
development staff.

During the three months
ended December 31, 2007, research and development expenses totaled $514,490,
compared to $167,972 for the three months ended December 31, 2006. The increase
is  attributable to assay development as well as pre-clinical work related to
the filing of the IND for VitiGam.

General and administrative expenses

General and administrative expense includes the salaries and related expenses of our management, consulting costs, legal and professional fees, traveling, business development costs, insurance
expenses and other general costs.

For the three months
ended December 31, 2007, general and administrative expenses totaled $752,827
compared to $632,866 for the three months ended December 31, 2006. Costs incurred
related to General and administrative activities in the three months ended December
31, 2007 reflect an increase of professional, legal and consulting expenses and
an increase in general expenses such as office and maintenance expenses.

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Financial income/expense, net

During the three months ended December 31, 2007 and 2006, we generated interest income on available cash and cash equivalents balance as well as bank charges.

Liquidity and Capital Resources

Through December 31,
2007, we incurred losses in an aggregate amount of $10,206,237. We have financed
our operations from the private placements of equity and debt financing. Through
 December 31, 2007, we raised a total of $9,538,553, net of transaction costs,
 through private placements of equity. We anticipate that additional financing
 will be through similar sources. As of December 31, 2007, we had $3,117,969
 of  available cash, most of which is deposited in short term, interest bearing,
 bank deposits.

We anticipate we will need $6,125,000
    for the remainder of our fiscal year, and $9,614,000 for the twelve months
    following January 1, 2008.

Although
    we do not have material financing commitments, management is in the process
    of evaluating various financing alternatives as we will need to finance future
    research and development activities and general and administrative expenses
    through fund raising in the public or private equity markets. Although there
    is no assurance that we will be successful with those initiatives, management
    expects to secure the necessary financing as a result of ongoing financing
    discussions with third party investors and existing shareholders.

Off-Balance Sheet Arrangements
     We have no off-balance sheet arrangements.

Planned Expenditures

The estimated expenses referenced herein are in accordance with our business plan. As our 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 twelve months following January 1, 2008 are as follows:

|Category                          |  |   | Amount    |  
|--------------------------------- |  | - | --------- | -
|                                 
|Research & Development            |  | $ | 6,667,000 |  
|General & Administrative Expenses |  |   | 3,057,000 |  
|Finance Income, net               |  |   | (110,000  | )
|Total                             |  | $ | 9,614,000 |  

As previously indicated we are planning to file an IND with the FDA for VitiGamTM. Our ability to proceed with this IND application as well as
the commencement of the related clinical trial is dependent on several major factors including the ability to attract sufficient financing on terms acceptable to us.

Employment and Consulting Agreements

On November 30, 2007, the employment agreement with Vered Caplan, who served as the Vice President of Corporate Development, was terminated.

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ITEM 3A(T) - CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of December 31, 2007,
our management carried out an evaluation, under the supervision of our Chief
Executive Officer and the Chief Financial Officer, of the effectiveness of the
design and operation of our system of disclosure controls and procedures (as
defined by Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of
1934, as amended (the Exchange Act). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that our 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
us under the Exchange Act.

Changes in internal controls

Except as set forth below, there were no changes in our internal controls over financial reporting, that occurred during the quarter ended December 31, 2007 that have materially affected, or are reasonably likely to
materially effect, our internal control over financial reporting.

Commencing in
November 2007, we engaged the services of a former director of ours, Shmuel
Levi, to act as controller in the review of our financial statements in
connection with implementing and enforcing our internal financial and disclosure controls.

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PART II

ITEM 1 - LEGAL PROCEEDINGS

From time to time we
may become subject to litigation incidental to our business. We are not currently
a party to any legal proceedings.

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5 - OTHER INFORMATION

The following disclosure would have otherwise been filed on an amendment to Form 8-K under the heading Item 1.01  Entry into a Material Definitive Agreement.

As previously reported
under Item 8B of our Annual Report in Form 10-KSB for the year ended October
31, 2007, on December 23, 2007, our subsidiary, GammaCan Ltd. signed an Amendment
of the Research and Licensing Agreement (the Amendment)
with Tel HaShomerMedical Research Infrastructure and Services LTD. (THM)
originally entered into on December 13, 2005. On February 11, 2008, the Amendment
was amended and restated to make immaterial changes thereto.

The amended and restated Amendment is attached as an exhibit hereto and incorporated by reference herein.

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ITEM 6 - EXHIBITS

|Number |  | Exhibit                                                                                                                                                                                                                                                                 
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |  |                                                                                                                                                                                                                                                                         
|10.1   |  | Form of amended and restated Amendment to Research and Licensing Agreement effective as of December 23, 2007 between GammaCan
Ltd. and Tel HaShomer Medical Research Infrastructure and Services Ltd.*                                                                 
|       |  |                                                                                                                                                                                                                                                                         
|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 15d14(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)                                                                                                                        
|      
|*      |  | We have requested confidential treatment with respect to this exhibit. In the event that the
Commission should deny such request in whole or in part, such exhibit or the relevant
portions thereof shall be filed by amendment to this Quarterly Report on Form 10-QSB.

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

|                        |  |     | GAMMACAN INTERNATIONAL, INC.
|----------------------- |  | --- | ----------------------------
|                       
|                        |  |     | Registrant                  
|                       
|Date: February 14, 2008 |  | By: | /s/ Chaime Orlev            
|                        |  |     | Chaime Orlev                
|                        |  |     | Chief Financial Officer     

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