<PAGE>

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

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

                                   FORM 10-QSB

           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2003

                                       OR

          |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
            For the Transition Period from ___________ to ___________

                        Commission File Number: 333-64430

                      MEDICAL LICENSING INTERNATIONAL CORP.
             (Exact name of Registrant as specified in its charter)

             Delaware                              33-0820923
 (State or other jurisdiction of          (I.R.S. Employer Identification No.)
  incorporation or organization)

                       300 St. Sacrement Street, Suite 414
                            Montreal, Quebec H2Y 1X4
          (Address of principal executive offices, including zip code)

                                 (514) 286-0909
              (Registrant's telephone number, including area code)

                            Molichem Medicines, Inc.
               100 Europa Drive, Suite 421, Chapel Hill, NC 27517
            (Former Name, Former Address, and Former Fiscal year if
                           Changed Since Last Report)

         Check whether the Registrant  (1) has filed all reports  required to be
filed by Section 13 or 15(d) of the  Securities  Exchange Act of 1934 during the
preceding 12 months,  and (2) has been subject to such filing  requirements  for
the past 90 days. Yes [X] No [ ]

       The number of shares of the  Registrant's  common  stock  outstanding  at
August 15, 2003 was 10,824,005.

       Transitional Small Business Disclosure Format:Yes [ ]  No [X]

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



<PAGE>



                      MEDICAL LICENSING INTERNATIONAL CORP.
                  JUNE 30, 2003 QUARTERLY REPORT ON FORM 10-QSB
                                TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                                                        PAGE

<S>               <C>                                                                                   <C>
                  Special Note Regarding Forward Looking Statements .....................................3

                          PART I FINANCIAL INFORMATION

Item 1.           Financial Statements ..................................................................4
Item 2.           Management's Discussion and Analysis
                  of Financial Condition and Results of Operations......................................11
Item 3            Controls and Procedures...............................................................15

                            PART II OTHER INFORMATION

Item 2.           Changes in Securities and Use of Proceeds.............................................15
Item 6.           Exhibits and Reports on Form 8-K......................................................15



</TABLE>

                                       2
<PAGE>




                SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

         To the extent that the information  presented in this Quarterly  Report
on Form  10-QSB  for the  quarter  ended  June  30,  2003,  discusses  financial
projections,  information  or  expectations  about our  products or markets,  or
otherwise   makes   statements   about  future  events,   such   statements  are
forward-looking.  We are making these forward-looking  statements in reliance on
the safe harbor  provisions of the Private  Securities  Litigation Reform Act of
1995.   Although  we  believe   that  the   expectations   reflected   in  these
forward-looking  statements  are based on  reasonable  assumptions,  there are a
number of risks and  uncertainties  that could  cause  actual  results to differ
materially from such forward-looking  statements.  These risks and uncertainties
are described,  among other places in this Quarterly  Report,  in  "Management's
Discussion and Analysis of Financial Condition and Results of Operations".

          In addition, we disclaim any obligations to update any forward-looking
statements to reflect events or  circumstances  after the date of this Quarterly
Report.  When considering such  forward-looking  statements,  you should keep in
mind the risks  referenced  above and the other  cautionary  statements  in this
Quarterly Report.


                                       3
<PAGE>




<TABLE>
<CAPTION>

                         PART I - FINANCIAL INFORMATION

ITEM 1.           FINANCIAL STATEMENTS                                                                         PAGE
                                                                                                               ----


<S>     <C>                                                                                                      <C>
         Balance Sheet as of June 30, 2003 (unaudited)
         and December 31, 2002....................................................................................5

         Statements of Operations (unaudited)
         for the three and six months ended June 30, 2003 and 2002................................................6

         Statements of Cash Flows (unaudited)
         for the six months ended June 30, 2003 and 2002..........................................................7

         Notes to Financial Statements (unaudited)................................................................8

</TABLE>





                                       4
<PAGE>



                                           MEDICAL LICENSING INTERNATIONAL CORP
                                                     BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                        June 30, 2003         December 31, 2002
                                                                      -------------------     ------------------------
                                                                         (Unaudited)
                                    ASSETS
<S>                                                                   <C>                                     <C>

Current assets:
      Cash and equivalents                                            $           27,437      $               304,178
      Accounts receivable                                                              -                          300
      Prepaid assets                                                                   -                       69,231
                                                                      -------------------     ------------------------
              Total current assets                                                27,437                      373,709

Fixed assets, net                                                                      -                       38,020

Other assets                                                                           -                        7,515
                                                                      -------------------     ------------------------
                                                                      $           27,437      $               419,244
                                                                      ===================     ========================


             LIABILITIES AND STOCKHOLDERS DEFICIENCY

Current liabilities
      Accounts payable                                                $                -      $               819,270

      Accrued expenses                                                            46,075                       20,122
                                                                      -------------------     ------------------------
              Total current liabilities                                           46,075                      839,392

Stockholders' deficiency:
      Preferred stock - $0.0001 par value,  20,000,000 shares  authorized,  none
              issued and outstanding at June 30, 2003 and December 31, 2002            -                            -
      Common  stock  -  $0.0001  par  value,   80,000,000   shares   authorized,
              10,824,005  and 18,679,287  shares issued and  outstanding at June
              30, 2003 and December 31, 2002 respectively                          1,082                        1,868
      Additional paid in capital                                               1,940,983                    4,043,243
      Accumulated deficit                                                     (1,960,703)                  (4,465,259)
                                                                      -------------------     ------------------------
              Total stockholders' deficiency                                     (18,638)                    (420,148)
                                                                      -------------------     ------------------------
                                                                      $           27,437      $               419,244
                                                                      ===================     ========================
</TABLE>


                 See notes to consolidated financial statements

                                        5

<PAGE>



                                          MEDICAL LICENSING INTERNATIONAL CORP.
                                                STATEMENTS OF OPERATIONS




<TABLE>
<CAPTION>


                                                        Six Months Ended June 30,                 Three Months Ended June 30,
                                                        2003                  2002                 2003                  2002
                                                  -----------------     -----------------    -----------------     ----------------
                                                    (Unaudited)            (Unaudited)          (Unaudited)         (Unaudited)
                                                                           (Restated)                                (Restated)

<S>                                               <C>                   <C>                  <C>                   <C>
General and administrative expenses               $         24,279      $        562,387     $            891      $        182,243
                                                  -----------------     -----------------    -----------------     ----------------
Loss from continuing operations                             24,279               562,387                  891               182,243
                                                  -----------------     -----------------    -----------------     ----------------
Loss from discontinued operations                          266,189             1,283,891              154,777               787,298
                                                  -----------------     -----------------    -----------------     ----------------
Loss before income taxes                                   290,468             1,846,278              155,668               969,541

Income taxes                                                     -                                          -
                                                  -----------------     -----------------    -----------------     ----------------
Net  loss                                         $        290,468      $      1,846,278     $        155,668      $        969,541
                                                  =================     =================    =================     ================


Basic and diluted net loss to common shareholders:
       Net loss per share -
             continuing operations                $               *     $            0.03    $               *     $           0.01
       Net loss per share -
             discontinued operations              $            0.02     $            0.07    $            0.01     $           0.04
                                                  -----------------     -----------------    -----------------     ----------------



             Net loss to common shareholder       $            0.02     $            0.10    $            0.01     $           0.05
                                                  =================     =================    =================     ================

Basic and diluted weighted average
     common shares outstanding                          14,729,946            18,590,889            15,054,059           18,679,287
                                                  ================      ================     ==================    ================

</TABLE>

  *  - Amount is less than $0.01

                 See notes to consolidated financial statements

                                       6
<PAGE>



                                      MEDICAL LICENSING INTERNATIONAL CORP.
                                             STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                       Six Months Ended June 30,
                                                                       2003                 2002
                                                                  ----------------     ----------------
                                                                    (Unaudited)          (Unaudited)
<S>                                                               <C>                  <C>
Cash flow from operating activities:
      Net loss                                                    $     (290,468)      $   (1,846,278)
      Adjustments to reconcile net loss to net cash
         provided (used) by operating activities:
                  Depreciation and amortization                                -                4,481
                  Amortization of deferred stock
                  compensation                                                 -               22,166
      Changes in operating assets and liabilities:
          Accounts receivable                                                  -               76,994
          Prepaid expenses                                                     -              (20,765)
          Accounts payable                                                     -               45,931
          Accrued expenses                                               (33,466)             (13,000)
          Deferred revenue                                                     -             (180,000)
                                                                  ----------------     ----------------
      Net cash used in operating activities                             (323,934)          (1,910,471)
      Net cash used in discontinued operations                           (52,807)                   -
                                                                  ----------------     ----------------
                                                                        (376,741)          (1,910,471)
                                                                  ----------------     ----------------

Cash flows from investing activities:
      Purchases of property and equipment                                      -              (13,245)
                                                                  ----------------     ----------------

Cash flows from financing activities:
      Deferred financing costs                                                  -              (25,000)
      Issuance of common stock                                            100,000            1,500,000
                                                                 ------------------    ----------------
          Net cash provided (used) by financing activities                100,000            1,475,000
                                                                 ------------------    ----------------

Net increase (decrease) in cash and cash equivalents                     (276,741)            (448,716)

Cash and cash equivalents, beginning of period                            304,178            1,481,881
                                                                  -----------------    ----------------

Cash and cash equivalents, end of period                          $        27,437      $     1,033,165
                                                                  =================    ================

Supplemental disclosure of cash flow information: Cash paid for:
          Interest
                                                                  $           385      $         13,000
                                                                  =================    ================
          Taxes                                                   $            -       $          1,256
                                                                  =================    ================
Non-cash transactions:
      Net obligations disposed of through spin-off of
          Molichem R&D, Inc. May 6, 2003                          $       591,978      $              -
                                                                  =================    ================
</TABLE>

                 See notes to consolidated financial statements

                                       7

<PAGE>


                      Medical Licensing International Corp.
                          Notes to Financial Statements
                                   (Unaudited)


1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

         ORGANIZATION  AND  DESCRIPTION  OF THE  BUSINESS - Since its  inception
         until the spin-off of its operating  subsidiary on May 5, 2003, Medical
         Licensing  International  Corp.  (the  "Company") was known as Molichem
         Medicines,  Inc., and operated as an early stage pharmaceutical company
         focused on the discovery,  development and marketing of  pharmaceutical
         products  for  the  treatment  of  serious   respiratory   and  related
         conditions.    The   Company    conducted    these    development   and
         commercialization   activities  through  its  wholly  owned  subsidiary
         Molichem R&D, Inc. ("Molichem R&D"). On May 5, 2003, 100 percent of the
         stock of MoliChem R&D was transferred to Lantibio, Inc. in exchange for
         13,355,282  shares of common  stock of the  Company  held by  Lantibio,
         Inc.,  and  a  license  agreement   providing  certain  rights  to  the
         intellectual  property held by MoliChem  R&D. In  connection  with this
         transaction  all  of  the  Company's   assets  and   liabilities   were
         transferred  to  MoliChem  R&D,  after which the  Company's  operations
         consist solely of holding a license from Molichem R&D, and  maintaining
         its status as a public reporting entity.

         Molichem R&D, was  incorporated on December 22, 1995 in North Carolina.
         On January 18, 2001,  Molichem R&D acquired  Cortez  Development,  Ltd.
         ("Cortez") in a reverse merger in which Molichem R&D was the accounting
         acquirer and Cortez was the legal acquirer.  Cortez was incorporated on
         July 20,  1998  under  the laws of the  State  of  Delaware  and had no
         operations  prior to the  reverse  merger.  Cortez  changed its name to
         Molichem Medicines,  Inc. after completion of the merger. Subsequent to
         the reverse  merger,  Molichem R&D became a wholly-owned  subsidiary of
         Molichem Medicines, Inc.

         BASIS OF PRESENTATION - The accompanying financial statements have been
         prepared  on  a  going  concern  basis,  which  assumes  continuity  of
         operations and realization of assets and satisfaction of liabilities in
         the ordinary course of business. As shown in the accompanying financial
         statements,  the Company  incurred a net loss of  $290,468  for the six
         months ended June 30, 2003, and used cash from continuing operations of
         $359,851  for  that  period.  As set  forth  in Note 6,  following  the
         transfer of assets and  liabilities to Lantibio,  Inc., the Company had
         no assets or liabilities,  and no revenue generating operations.  These
         circumstances  raise  substantial  doubt as to the Company's ability to
         continue  to  operate  as a going  concern.  The  Company's  ability to
         continue  as a going  concern is  dependent  upon its ability to obtain
         additional  financing  and  initiate  operations  that will  ultimately
         generate  cash  flows.  The  Company  plans to  pursue  equity  or debt
         financing  to fund  the cost of its  basic  infrastructure  and  future
         operations.  In the event the  Company  is unable to obtain  additional
         financing  or  generate  cash  from  operations,   it  might  not  have
         sufficient  funds to permit the  Company to  continue  to operate for a
         year following June 30, 2003.

         The  accompanying   unaudited  consolidated  financial  statements  and
         related  footnotes  have  been  prepared  pursuant  to  the  rules  and
         regulations of the Securities and Exchange  Commission for Form 10-QSB.
         Accordingly,  they do not include all of the  information and footnotes
         required  by  accounting  principles  generally  accepted in the United
         States of America 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.  It is
         suggested that these financial  statements be read in conjunction  with
         the  financial   statements  and  footnotes  thereto  included  in  the
         Company's  Annual  Report on Form  10-KSB  for the  fiscal  year  ended
         December 31, 2002.  The results of operations  for the six months ended
         June 30, 2003 are not necessarily  indicative of the operating  results
         that may be expected for the fiscal year ending December 31, 2003.


                                       8
<PAGE>

         The  accompanying  financial  statements  include  the  accounts of the
         Company and its wholly owned subsidiary up to the date of spin-off. All
         significant intercompany balances and transactions have been eliminated
         in  consolidation.  Comparative  financial  data has been  restated  to
         reflect the operating results of the segment of the Company spun off on
         May 6, 2003 as operating  results  from  discontinued  operations.  The
         Company  previously  accounted  for the results of its  operations as a
         development  stage  enterprise  as  such is  defined  in  Statement  of
         Financial  Accounting Standard ("SFAS") No. 7. The Company is no longer
         a development stage enterprise  effective May 5, 2003, the date it spun
         off Molichem R&D.

         The  accompanying  financial  statements  include  the  accounts of the
         Company and its wholly owned  subsidiary up until May 5, 2003, the date
         of the spin-off. All significant intercompany balances and transactions
         have been eliminated in consolidation.

         RECENTLY ISSUED ACCOUNTING STANDARDS:


         -        In April  2003,  the FASB  issued  SFAS No. 149 ("SFAS  149"),
                  "Amendment  of Statement  133 on  Derivative  Instruments  and
                  Hedging Activities." This statement amends SFAS 133 to provide
                  clarification  on the  financial  accounting  and reporting of
                  derivative  instruments  and hedging  activities  and requires
                  contracts with similar  characteristics to be accounted for on
                  a comparable basis. The Company is in the process of assessing
                  the effect of SFAS 149 and does not expect the adoption of the
                  statement,  which will be effective for contracts entered into
                  or modified after June 30, 2003, to have a material  effect on
                  its financial position or results of operations.

         -        In May  2003,  the FASB  issued  SFAS No.  150  ("SFAS  150"),
                  "Accounting   for   Certain    Financial    Instruments   with
                  Characteristics  of both  Liabilities  and  Equity."  SFAS 150
                  establishes standards on the classification and measurement of
                  financial instruments with characteristics of both liabilities
                  and  equity.  SFAS 150 will  become  effective  for  financial
                  instruments  entered into or modified  after May 31, 2003. The
                  adoption  of SFAS  150 has not had a  material  effect  on the
                  Company's financial position or results of operations.

         Management does not believe that recently issued, but not yet effective
         accounting  pronouncements  if currently  adopted would have a material
         effect on the accompanying financial statements.


2.       DISCONTINUED OPERATIONS

         On May 5, 2003 the  Company  exchanged  100 percent of the stock of its
         wholly owned  subsidiary,  MoliChem R&D, Inc., for 13,355,282 shares of
         the Company's  stock owned by  Lantibios,  Inc., a company owned by the
         former  President and certain former  shareholders of the Company.  The
         Company also received a non-exclusive license (the "License Agreement")
         to develop,  market, and sell certain products  incorporating  MoliChem
         R&D, Inc.'s compounds Moli56A and Moli56B.  The License Agreement has a
         ten year term,  provides for annual  licensing fees of $1.00 payable by
         the Company on each  anniversary of the License  Agreement,  a one time
         continuation  payment of $500,000  payable on the first  anniversary of
         the  License  Agreement,  a one time  milestone  payment of  $2,000,000
         payable  by the  Company  within 60 days of the  approval  of a product
         incorporating the technology encompassed by the License Agreement,  and
         annual royalty  payments equal to 6 percent of net sales related to the
         technology encompassed by the License Agreement.  In addition,  options
         to purchase a total of 1,637,114  shares of common stock were cancelled
         in connection  with the  transaction.  In connection with the spin-off,
         all of the assets and  liabilities  of MoliChem  Medicines,  Inc.  were
         transferred  to MoliChem R&D, Inc. The Company does not expect to incur
         further costs in connection with the spin-off subsequent to the balance
         sheet date.


                                       9
<PAGE>



3.       EQUITY

         In May 2003,  the Company issued  5,500,000  shares of common stock for
$100,000.




                                       10
<PAGE>




ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

       The  following  discussion  of our  financial  condition  and  results of
operations  should be read in conjunction with the financial  statements and the
notes to those  statements  included  elsewhere in this  report.  In May 2003 we
exchanged all of the stock of our  subsidiary  MoliChem R&D, Inc. for 13,355,282
shares of our stock  owned by  Lantibio,  Inc.,  a company  owned by the  former
president and certain  former  shareholders  of ours. As a result of the sale of
Molichem R&D,  Inc.,  the financial data for the three and six months ended June
30,  2002 has been  restated.  We also  received  a  non-execlusive  license  to
develop,  market, and sell certain products incorporating  MoliChem, R&D, Inc.'s
compounds  Moli56A and  Moli56B.  Prior to the  exchange,  all of the assets and
liabilities of MoliChem  Medicines,  Inc. were transferred to MoliChem R&D, Inc.
This sale of our operating subsidiary brought to an end our proposed business as
a  pharmaceutical  company.  Accordingly,  the discussion  below is primarily of
historical significance only.

BACKGROUND

       We were  incorporated in the state of Delaware on July 20, 1998 under the
name of Cortez Development,  Ltd.  ("Cortez").  Our name was changed to MoliChem
Medicines,  Inc. on February 21, 2001,  following a reverse  merger  effected on
January 18, 2001. On January 18, 2001, MoliChem R&D acquired Cortez in a reverse
merger in which  Molichem R&D, Inc. was the  accounting  acquirer and Cortez was
the legal  acquirer.  MoliChem R&D, Inc. was  incorporated in the state of North
Carolina on December  21, 1995 under the name of MoliChem  Medicines,  Inc.  Its
name was changed to MoliChem R&D, Inc. on April 6, 2001. In  furtherance  of our
May 2003 sale of Molichem R&D Inc.,  and our change in business  operations,  on
June 25, 2003 we changed our name to Medical  Licensing  International  Corp. We
have had no operating revenues since our inception.

SIGNIFICANT DEVELOPMENTS IMPACTING OPERATIONS

TERMINATION OF INTERMUNE JOINT DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

         In the  second  quarter  of 2001 we  entered  into  an  agreement  with
InterMune, Inc. for the joint development and commercialization of Moli1901 (the
"Agreement").  Under the terms of the  Agreement  we and  InterMune  shared  the
rights to the Moli1901 technology,  and each party contributed 50 percent of the
of research and  development  costs  related to  Moli1901.  The  Agreement  also
provided  for  payments  to us by  InterMune  upon  the  attainment  of  certain
milestones.  In  December  2002 the  agreement  was  terminated  and we obtained
exclusive  rights to the  Moli1901  technology  in  exchange  for the release of
InterMune of all obligations  related to the Agreement.  We also assumed certain
financial obligations that would have been shared under the Agreement.

RESEARCH AND DEVELOPMENT ACTIVITIES

       Since we began  operations  in December  1995,  through  MoliChem  R&D we
devoted  substantially  all of our resources to the discovery and development of
pharmaceutical products for the treatment of pulmonary diseases and generated no
revenues from product sales. In addition,  we engaged in development  activities
for a product for the treatment of sepsis based on our two compounds Moli56A and
Moli56B.  We had one product candidate,  Moli1901 (commonly known as Duramycin),
in Phase I clinical  trials,  while Moli56A and Moli56B were in the pre-clinical
trials  stage of  development.  We also began  research  to  develop  additional
products  based on the structure of Moli1901,  but no  additional  products were
ever developed by us.

SIGNIFICANT SOURCES OF REVENUE


                                       11
<PAGE>

GRANT REVENUE

       Prior to 2001,  our  revenues  were  derived  from grants from the Cystic
Fibrosis  Foundation and the National  Institutes of Health to develop  Moli1901
for the treatment of cystic  fibrosis.  We received no grant revenue  during the
three months ended June 30, 2003 and 2002.  Through June 30, 2003, we received a
total of  approximately  $1,717,000 in revenue  under these grants.  Our primary
source of revenue during 2002 was derived from payments from InterMune, Inc. for
the sharing of development costs related to Moli1901.

REVENUE FROM JOINT DEVELOPMENT AGREEMENT

       In the  second  quarter  of  2001  we  entered  into  an  agreement  with
InterMune,  Inc. for the joint  development  and  commercialization  of Moli1901
under which we received $1,450,000 as an up-front  non-refundable  payment. This
payment  provided  InterMune  with a  worldwide  co-exclusive  license  for  the
Moli1901  technology,  including  all  information  related to Moli1901  and its
patents.  . Under this agreement,  we and InterMune,  Inc. agreed to share costs
incurred  subsequent  to the date of the  agreement  related to  furthering  the
clinical  development  and  commercialization  of Moli1901.  The agreement  also
provided for additional payments to us by InterMune, Inc. for the achievement of
certain milestones, and the sharing of revenues from product sales. Prior to the
termination of the Agreement in December 2002, the up-front  payments under this
agreement of $1,450,000 and a payment from InterMune,  Inc.  received in 2000 in
connection  with our  agreement  not to seek  another  development  partner  for
Moli1901 of $50,000 were being  recognized as revenue ratably over the estimated
fifty-month period from the effective date of the Agreement through the expected
date our first product was approved for sale. Upon termination of the Agreement,
the remaining deferred revenue was recognized.

MILESTONE PAYMENTS AND PRODUCT REVENUES

         We were entitled to receive additional revenues related to each product
developed  under the  Agreement  as certain  milestones  in the  development  of
Moli1901 were achieved. No milestone payments were ever earned or received.

SIGNIFICANT ELEMENTS OF COST

       Through June 30, 2003 our expenses consisted  primarily of costs incurred
in research and development related to Moli1901,  and general and administrative
costs associated with our operations.

RESEARCH AND DEVELOPMENT COSTS

       Research and  development  costs included  primarily costs related to the
development of Moli1901, Moli56A and development costs related to our library of
stable polypeptides.  These costs consisted primarily of amounts paid to outside
contractors for the manufacture and testing of the Moli1901 compound, toxicology
studies, consultation regarding regulatory and other matters, and the conduct of
clinical research studies. Research and development costs also included the cost
of our  personnel  involved  in product  development,  the legal and other costs
incurred to secure and maintain our  intellectual  property,  and indirect costs
associated  with  our  research  activities.  We did  not  operate  research  or
manufacturing  facilities,  and thus internal facility costs associated with our
product development efforts were historically immaterial.


GENERAL AND ADMINISTRATIVE COSTS

       The major components of general and  administrative  costs were personnel
costs,  infrastructure costs such as rent and utilities,  legal and professional
fees related to general corporate matters, accounting fees, and travel costs.


CRITICAL ACCOUNTING POLICIES AND ESTIMATES


The  preparation  of  financial  statements  requires  our  management  to  make
estimates and assumptions in a number of areas,  including  revenue  recognition
and  reporting of research  and  development  costs.  Management  evaluates  the
reasonableness of those estimates and assumptions on an ongoing basis, and makes
changes as deemed  appropriate.  In the  opinion  of  management,  the  critical
accounting  policies and underlying  estimates described in its Annual Report on
Form 10-KSB for the fiscal year ended  December 31, 2002 continue to be relevant
to the  financial  statements  and  disclosures  included in this Report on Form
10-QSB.


                                       12
<PAGE>

FINANCIAL POSITION

       Our balance sheet at June 30, 2003 continued to  demonstrate  our lack of
liquidity.  Cash at June 30, 2003 had  declined to $27,437 from $87,299 at March
31, 2003 and from $304,178 at December 31, 2002. Although our operating expenses
were  significantly  lower during the three months ended June 30, 2003 than they
were during the three  months  ended June 30,  2002,  our lack of  revenue,  and
payment of  liabilities  resulted in a decline in cash of $59,862 from the March
31, 2003 balance and $276,741 from the December 31, 2002 balance.

       Accounts payable and accrued expenses liabilities decreased from $839,392
at  December  31,  2002 to  $46,075  at June 30,  2003.  The  majority  of these
liabilities were amounts owed to outside  contract  research  organizations  for
research conducted during 2002.

RESULTS OF OPERATIONS

THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2003 AND 2002

REVENUE

Revenue for the three and six month  periods  ended June 30, 2003 was $0 and $0,
respectively.  This  compares to $441,756 and  $867,341,  respectively,  for the
three-and  six-month periods ended June 30, 2002. All of the revenue  recognized
during 2002 resulted from the joint development agreement with InterMune,  Inc.,
and no grant  revenue  was  recognized  during  the  year.  That  agreement  was
terminated on December 2002.

Included in revenue  from joint  development  agreement is  amortization  of the
deferred  up-front  payments under the joint  development and  commercialization
agreement  with  InterMune  of $90,000 and  $180,000 for the three and six month
periods ended June 30, 2002.


GENERAL AND ADMINISTRATIVE COSTS

General  and  administrative  costs were $891 and  $24,279 for the three and six
months  ended June 30, 2003  compared to $182,243 and $562,387 for the three and
six months ended June 30, 2002. This decrease  reflects lower  personnel  costs,
professional fees,  accounting fees and travel costs resulting from scaling back
all of our  operations  during 2003,  and the  reduction of  administration  and
support costs.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization  expenses were nominal for the three and six month
periods ended June 30, 2003.  For the three and six month periods ended June 30,
2002 depreciation and amortization expenses were $2,554 and $4,481 respectively.

LOSS FROM OPERATIONS

Net loss for three and six month  periods  ended June 30, 2003 was  $155,668 and
$290,468,  respectively.  Net loss for three month and six month  periods  ended
June 30, 2002 was $969,541 and $1,846,278 respectively. The decrease in net loss
was due to the scaling back of our operations that commenced in December 2002.


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LIQUIDITY AND CAPITAL RESOURCES

As discussed above, the sale of MoliChem R&D in May 2003, the resulting  license
agreement,   and  the  termination  of  our  joint  development  agreement  with
InterMune,  Inc. has significantly changed our business strategy. As of June 30,
2003, the scope of our operations is  significantly  reduced,  and we anticipate
significantly reduced costs of operations given our current structure.  However,
we anticipate the need to raise  additional  capital during 2003 to maintain our
status as a public reporting company, and to develop and execute a business plan
that may include the acquisition of additional  technologies  or entities.  This
may  involve  sales of our equity or debt  securities  in merger or  acquisition
transactions.

We incurred a net loss of $155,668 in the  quarter  ended June 30,  2003.  As of
June 30,  2003 we have no planned  sources of revenue  and expect to continue to
incur losses in the future.

At June 30, 2003 we had no commercial  commitments and  contractual  obligations
that required us to incur expenses in the future.


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<PAGE>




ITEM 3.  CONTROLS AND PROCEDURES

Our principal  executive  officer and principal  financial officer evaluated the
effectiveness  of our disclosure  controls and procedures as of a date within 90
days prior to the filing of this report. Based on this evaluation, our principal
executive  officer and  principal  financial  officer  have  concluded  that our
controls and procedures are effective in providing reasonable assurance that the
information required to be disclosed in this report is accurate and complete and
has been recorded,  processed,  summarized  and reported  within the time period
required  for  the  filing  of  this  report.  Subsequent  to the  date  of this
evaluation, there have not been any significant changes in our internal controls
or, to our  knowledge,  in other  factors  that could  significantly  affect our
internal controls.

Consistent  with Section  10A(i)(2) of the  Securities  Exchange Act of 1934, as
added by Section 202 of the  Sarbanes-Oxley  Act of 2002, we are responsible for
listing  the  non-audit  services  approved  by our  Board  of  Directors  to be
performed by Rogoff & Company,  P.C., our external auditor.  Non-audit  services
are defined as services other than those provided in connection with an audit or
a review of our financial  statements.  Our Board of Directors currently has not
approved  the  engagement  of Rogoff & Company,  P.C. to perform  any  non-audit
services in 2003.

                           PART II--OTHER INFORMATION

ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

         In May 2003, we issued  5,500,000  shares to 5 persons  pursuant to our
May 5, 2003 Stock  Purchase  Agreement.  These shares were issued in reliance on
the exemption  from  registration  under Section 4(2) of the  Securities  Act of
1933, as amended.

         In May 2003, we entered into a Stock  Exchange  Agreement with Molichem
Medicines R&D, Inc., and Lantibio Inc. In connection therewith,  Lantibio,  Inc.
delivered  13,355,282  shares  of  our  common  stock  owned  by it  to  us  for
cancellation.

         From  July  2003  through  the  present  we have  engaged  in a private
offering of a minimum of 4,000,000  units and a maximum of 6,000,000  units at a
price of $.25 per unit.  Each unit consists of one share of our common stock and
one-half common stock purchase warrant. Each full warrant entitles the holder to
purchase  one  share of our  common  stock at a price of $.375  per  share for a
period of two  years  from  issuance.  As of August  13,  2003 we have  received
subscriptions  for an  aggregate  of  3,400,000  units.  The offers were made in
reliance on  Regulation  S or Section  4(2) of the  Securities  Act of 1933,  as
amended.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a)      Exhibits

The following exhibits are filed as a part of this report on Form 10-QSB:

    EXHIBIT NO.                                DESCRIPTION
       99.1                Certificate of Chief Executive and Financial Officer

(b)     Reports on Form 8-K

On April 9,  2003,  we filed a Form 8-K  dated  April 4,  2003.  Item 4  thereof
referred to the charge in our independent  certifying accountant from Deloitte &
Touche, LLP to Rogoff and Company,  P.C. On April 18, 2003, we filed a Form 8K/A
dated April 4, 2003 to clarify  certain  information  contained  in the April 9,
2003 filing.





                                       15

<PAGE>




                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange  Act of 1934,  the  Registrant  has duly  caused this Form 10-QSB to be
signed on its behalf by the undersigned, thereunto duly authorized.

       Dated: August 18, 2003        Medical Licensing International Corp.

                                     By: /S/ GILLES CLOUTIER
                                       ----------------------------------------
                                     Gilles Cloutier
                                     President, Chief Executive and Accounting
                                     Officer





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<PAGE>





                                 CERTIFICATIONS

         I, Gilles Cloutier, certify that:

1. I have reviewed  this  quarterly  report on Form 10-QSB of Medical  Licensing
International Corp.

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. I am responsible for  establishing  and maintaining  disclosure  controls and
procedures  (as  defined in  Exchange  Act Rules  13a-15(e)  and 15d-15) for the
registrant and have;

(a) Designed  such  disclosure  controls and  procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to me by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

(b) Evaluated the  effectiveness  of the  registrant's  disclosure  controls and
procedures and presented in this report my conclusions  about the  effectiveness
of the disclosure  controls and procedures,  as of the end of the period covered
by this report based on such evaluation; and

(c)  Disclosed in this report any change in the  registrant's  internal  control
over  financial  reporting  that  occurred  during  the  period  covered  by the
Quarterly  Report  that has  materially  affected,  or is  reasonably  likely to
materially affect, the registrant's  internal control over financial  reporting;
and

5. I have disclosed, based on my most recent evaluation of internal control over
financial  reporting,  to the  registrant's  auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

(a) All  significant  deficiencies  and  material  weaknesses  in the  design or
operation of internal  control over  financial  reporting  which are  reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize and report financial information; and

 Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrant's  internal control over financial
reporting.

     Date: August 18, 2003      By:      /S/ GILLES CLOUTIER
                                         --------------------------
                                         Gilles Cloutier
                                         Chief Executive and Financial Officer



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