<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549
                                   FORM 10-Q

(Mark One)

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

     For the quarterly period ended    September 30, 2000
                                       ------------------

                                       or

( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from ____________________ to ____________________

Commission File Number                0-6533
                                      ------

                           BOSTON LIFE SCIENCES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Delaware                                  87-0277826
--------------------------------                -------------------
(State or other jurisdiction of                    (IRS Employer
incorporation or organization)                  Identification No.)



137 Newbury Street, 8th Floor, Boston, Massachusetts    02116
----------------------------------------------------  ----------
     (Address of principal executive offices)         (Zip code)


                                 (617) 425-0200
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
--------------------------------------------------------------------------
(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 preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                   (X)    Yes                     ( )    No

As of November 10, 2000 there were 20,720,638 shares of Common Stock
outstanding.
<PAGE>

                           BOSTON LIFE SCIENCES, INC.

                               INDEX TO FORM 10-Q


<TABLE>
<CAPTION>

                                                            Page (s)
                                                            --------
<S>                                                       <C>

Part I - Financial Information

  Item 1 - Financial Statements (Unaudited)

       Consolidated Balance Sheets as of September 30, 2000             1
       and December 31, 1999

       Consolidated Statements of Operations for the three and          2
       nine months ended September 30, 2000 and 1999, and for the
       period from inception (October 16, 1992) to September 30, 2000

       Consolidated Statements of Cash Flows for the nine months        3
       ended September 30, 2000 and 1999, and for the period from
       inception (October 16, 1992) to September 30, 2000

       Notes to Consolidated Financial Statements                       4 - 6

  Item 2 - Management's Discussion and Analysis of Financial            7 - 10
        Condition and Results of Operations

  Item 3 - Quantitative and Qualitative Disclosures about Market Risk   10

Part II - Other Information

  Item 1 - Legal Proceedings                                            11

  Item 2 - Changes in Securities                                        11

  Item 3 - Defaults Upon Senior Securities                              11

  Item 4 - Submission of Matters to a Vote of Security Holders          11

  Item 5 - Other Information                                            11

  Item 6 - Exhibits and Reports on Form 8-K                             11

Signatures                                                              12
</TABLE>
<PAGE>

Part I - Financial Information
Item 1 - Financial Statements

                           Boston Life Sciences, Inc.
                        (A Development Stage Enterprise)

                          Consolidated Balance Sheets
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                           September 30,             December 31,
                                                                               2000                      1999
                                                                      ---------------------     ---------------------
<S>                                                                     <C>                       <C>
Assets
Current assets:
  Cash and cash equivalents                                                    $  1,526,774              $    260,134
  Short-term investments                                                         20,173,151                14,690,308
  Other current assets                                                              356,556                   599,943
                                                                      ---------------------     ---------------------
      Total current assets                                                       22,056,481                15,550,385
Fixed assets, net                                                                    45,059                    10,796
Other assets                                                                        194,292                   511,031
                                                                      ---------------------     ---------------------
      Total assets                                                             $ 22,295,832              $ 16,072,212
                                                                      =====================     =====================

Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable and accrued expenses                                        $  1,975,004              $  1,803,667

8% convertible redeemable debentures                                                      -                 4,647,192
Series C convertible redeemable preferred stock, $.01 par value;
 475,000 shares authorized; 53,669 shares issued and outstanding at
 December 31, 1999                                                                        -                 1,046,546

Stockholders' equity:
  Series A convertible preferred stock, $.01 par value; 15,000 shares
   authorized; 4,983 shares issued and outstanding at December 31,
   1999                                                                                   -                        50
  Common stock, $.01 par value; 40,000,000 shares authorized;
   20,720,638 and 16,280,473 shares issued and outstanding at
   September 30, 2000 and December 31, 1999, respectively                           207,206                   162,805
  Additional paid-in capital                                                     83,661,199                63,093,089
  Accumulated other comprehensive loss                                             (220,011)                 (553,157)
  Deficit accumulated during development stage                                  (63,327,566)              (54,127,980)
                                                                      ---------------------     ---------------------
      Total stockholders' equity                                                 20,320,828                 8,574,807
                                                                      ---------------------     ---------------------
      Total liabilities and stockholders' equity                               $ 22,295,832              $ 16,072,212
                                                                      =====================     =====================
</TABLE>



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

                                       1
<PAGE>

                           Boston Life Sciences, Inc.
                        (A Development Stage Enterprise)

                     Consolidated Statements of Operations
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                                                   From Inception
                                                                                                     (October 16,
                                            Three Months Ended              Nine Months Ended          1992) to
                                               September 30,                  September 30,         September 30,
                                           2000            1999           2000            1999           2000
                                      ----------------------------------------------------------------------------
<S>                                   <C>         <C>         <C>       <C>         <C>            <C>
Revenues                               $         -     $   200,000    $         -     $    200,000   $    900,000
Operating expenses:
 Research and development                2,608,037       1,845,258      7,230,012        4,605,672     39,282,588
 General and administrative                692,068         682,872      2,364,902        2,001,897     15,281,571
 Purchased in-process research and
  development                                    -       1,725,000              -        1,725,000     12,146,544
                                      ----------------------------------------------------------------------------
   Total operating expenses              3,300,105       4,253,130      9,594,914        8,332,569     66,710,703
                                      ----------------------------------------------------------------------------

   Loss from operations                (3,300,105)      (4,053,130)    (9,594,914)      (8,132,569)   (65,810,703)
Interest expense                                -         (214,063)      (344,870)        (214,063)    (2,252,457)
Interest income                           379,868          190,558        740,198          555,170      4,735,594
                                      ----------------------------------------------------------------------------

   Net loss                           $(2,920,237)     $(4,076,635)   $(9,199,586)    $ (7,791,462)  $(63,327,566)
                                      ============================================================================


Calculation of net loss available to
 common shareholders:
   Net loss                           $(2,920,237)     $(4,076,635)   $(9,199,586)    $ (7,791,462)
   Preferred stock preferences                  -                -              -       (4,240,000)
                                      -------------------------------------------------------------
   Net loss available to common
    shareholders                      $(2,920,237)     $(4,076,635)   $(9,199,586)    $(12,031,462)
                                      =============================================================


Calculation of basic and diluted net
 loss per share available to common
 shareholders:
   Net loss per share                 $     (0.14)     $    (0.27)    $     (0.48)    $      (0.54)
   Preferred stock preferences per
    share                                       -               -               -            (0.30)
                                      -------------------------------------------------------------
   Basic and diluted net loss per
    share available to common
    shareholders                      $     (0.14)     $     (0.27)   $     (0.48)    $      (0.84)
                                      =============================================================

Weighted average shares outstanding    20,618,442       14,894,266     19,041,358       14,253,961
                                      =============================================================


</TABLE>


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

                                       2

<PAGE>

                           Boston Life Sciences, Inc.
                        (A Development Stage Enterprise)

                     Consolidated Statements of Cash Flows
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                                               From Inception
                                                                                                (October 16,
                                                                 Nine Months Ended                1992) to
                                                                   September 30,                September 30,
                                                            2000                1999                2000
                                                      --------------     ---------------     ------------------
<S>                                                     <C>              <C>                   <C>

Cash flows from operating activities:
 Net loss                                               $ (9,199,586)        $(7,791,462)        $(63,327,566)
 Adjustments to reconcile net loss to net cash used
  for operating activities:
  Purchased in-process research and development                    -           1,725,000           12,146,544
  Write-off of acquired technology                                 -                   -            3,500,000
  Debenture interest expense                                 142,861                   -              142,861
  Compensation charge related to options and warrants        320,993             115,000            2,136,163
  Accretion of discount on convertible debentures            189,632             214,063              436,824
  Amortization and depreciation                               21,884              11,185            1,513,266
  Changes in current assets and liabilities:
   Decrease in other current assets                          243,387             310,139              307,269
   Increase (decrease) in accounts payable and
    accrued expenses                                         346,337             (37,127)           1,202,339
                                                      --------------     ---------------     ----------------
Net cash used for operating activities                    (7,934,492)         (5,453,202)         (41,942,300)
                                                      --------------     ---------------     ----------------

Cash flows from investing activities:
 Cash acquired through merger                                      -                   -            1,758,037
 Purchases of fixed assets                                   (43,770)             (9,233)            (312,850)
 Increase in other assets                                     (2,903)           (180,196)            (352,789)
 Purchases of short-term investments                     (15,563,293)         (7,318,466)         (73,289,713)
 Sales and maturities of short-term investments           10,413,596           4,364,235           52,896,551
                                                      --------------     ---------------     ----------------
Net cash used for investing activities                    (5,196,370)         (3,143,660)         (19,300,764)
                                                      --------------     ---------------     ----------------

Cash flows from financing activities:
 Proceeds from issuance of common stock                   14,476,925           3,574,709           31,249,182
 Proceeds from issuance of preferred stock                         -           6,150,000           27,022,170
 Preferred stock conversion inducement                             -                   -             (600,564)
 Proceeds from issuance of notes payable                           -                   -            2,585,000
 Proceeds from issuance of convertible debentures                  -           8,000,000            9,000,000
 Principal payments of notes payable                               -                   -           (2,796,467)
 Payments of financing costs                                 (79,423)         (1,184,761)          (3,689,483)
                                                      --------------     ---------------     ----------------
Net cash provided by financing activities                 14,397,502          16,539,948           62,769,838
                                                      --------------     ---------------     ----------------

Net increase in cash and cash equivalents                  1,266,640           7,943,086            1,526,774
Cash and cash equivalents, beginning of period               260,134              71,834                    -
                                                      --------------     ---------------     ----------------
Cash and cash equivalents, end of period                $  1,526,774         $ 8,014,920         $  1,526,774
                                                      ==============     ===============     ================

Supplemental cash flow disclosures:
 Non cash transactions (see note 3)
</TABLE>

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

                                       3
<PAGE>

                           Boston Life Sciences, Inc.
                        (A Development Stage Enterprise)

             Notes to Consolidated Financial Statements (Unaudited)

                               September 30, 2000


1. Basis of Presentation

   The accompanying unaudited consolidated financial statements have been
   prepared in accordance with generally accepted accounting principles for
   interim financial information and pursuant to the rules and regulations of
   the Securities and Exchange Commission. Accordingly, these financial
   statements do not include all of the information and footnotes required by
   generally accepted accounting principles for complete financial statements.

   The interim unaudited consolidated financial statements contained herein
   include, in management's opinion, all adjustments (consisting of normal
   recurring adjustments) necessary for a fair presentation of the financial
   position, results of operations, and cash flows for the periods presented.
   The results of operations for the interim period shown on this report are not
   necessarily indicative of results for a full year. These financial statements
   should be read in conjunction with the Company's consolidated financial
   statements and notes for the year ended December 31, 1999 included in the
   Company's Annual Report on Form 10-K.

   The Company has reclassified Therafectin related expenses to research and
   development expenses including the $3,500,000 write-off of acquired
   technology recognized in the Consolidated Statement of Operations in 1999.

2. Net Loss Per Share

   Basic and diluted net loss per share available to common stockholders has
   been calculated by dividing net loss, adjusted for preferred stock
   preferences, by the weighted average number of common shares outstanding
   during the period. All potential common shares have been excluded from the
   calculation of weighted average common shares outstanding since their
   inclusion would be anti-dilutive.

   Stock options and warrants to purchase approximately 6.9 million and
   approximately 6.3 million shares of common stock were outstanding at
   September 30, 2000 and 1999, respectively, but were not included in the
   computation of diluted net loss per common share because they were anti-
   dilutive. Also excluded were approximately 1.1 million shares of common stock
   issuable upon the conversion of Series A and Series C preferred stock
   outstanding at September 30, 1999. The exercise of those stock options and
   warrants outstanding at September 30, 2000, which could generate proceeds to
   the Company of up to $40 million, could potentially dilute earnings per share
   in the future.

                                       4
<PAGE>

                           Boston Life Sciences, Inc.
                        (A Development Stage Enterprise)

             Notes to Consolidated Financial Statements (Unaudited)


3.  Supplemental Disclosure of Non-cash Investing and Financing Activities

    During the nine months ended September 30, 2000, the Company issued 87,121
    and 300,614 shares of common stock resulting from the conversion of 4,983
    and 53,669 shares of Series A and Series C preferred stock, respectively.
    During the nine months ended September 30, 2000, the Company also issued
    1,585,416 shares of common stock resulting from the conversion of
    convertible debentures with a face value of $8 million and the payment of
    accrued interest of approximately $318,000 in the form of shares of common
    stock. The carrying value of the debentures plus the accrued interest
    thereon, net of deferred financing costs of approximately $307,000, was
    reclassified to additional paid-in capital upon conversion of the debentures
    and the payment of accrued interest. During the nine months ended September
    30, 1999, the Company issued 206,296 and 588,975 shares of common stock
    resulting from the conversion of 11,763 and 117,795 shares of Series A and
    Series C preferred stock, respectively.

4.  Comprehensive Loss

    The Company had total comprehensive loss of $2,728,246 and $4,149,094 for
    the three months ended September 30, 2000 and 1999, respectively. For the
    nine months ended September 30, 2000 and 1999, total comprehensive loss was
    $8,866,440 and $8,260,839, respectively.

5.  Financing Activities

    In June 2000, the Company completed a private placement of 1,405,956 shares
    of common stock, which raised approximately $9.9 million in net proceeds. In
    connection with the financing, the Company issued 200,000 warrants to
    purchase common stock at $10.00 per share and 300,000 warrants to purchase
    common stock at $8.00 per share.

    In September 1999, the Company issued $8 million in convertible debentures,
    which raised approximately $7.4 million in net proceeds. In connection with
    the financing, the Company issued 970,000 warrants to purchase common stock
    at $5.75 per share and 720,000 warrants to purchase common stock at $8.25
    per share.

    In February 1999, the Company completed a private placement of Series C
    convertible preferred stock, $.01 par value, which raised approximately $5.6
    million in net proceeds.

    In February 1999, the Company completed a private placement of 647,668
    shares of common stock, which raised approximately $2.3 million in net
    proceeds.

                                       5
<PAGE>

                           Boston Life Sciences, Inc.
                        (A Development Stage Enterprise)

             Notes to Consolidated Financial Statements (Unaudited)


6.  Acquisition of Fusion Toxin Technology

    In September 1999, the Company finalized an agreement with MTR Technologies,
    Inc. ("MTR") under which it acquired an option to acquire the licensing
    rights to certain technology covering fusion toxins for the treatment of a
    wide variety of solid tumors, as well as multiple sclerosis and allergies.
    The technology was invented by scientists at Hadassah Medical School of the
    Hebrew University in Jerusalem, and was initially licensed to MTR by Yissum
    Research Development Company of the Hebrew University in Jerusalem
    ("Yissum"). The Company issued 232,000 shares of common stock and 216,000
    warrants exercisable to purchase the Company's common stock at an exercise
    price of $4.25 per share as consideration for the option. The fair value of
    such consideration of $1,725,000 was recognized in the Consolidated
    Statement of Operations for the nine months ended September 30, 1999 as
    purchased in-process research and development. The Company elected not to
    exercise its option rights which expired in May 2000.

7.  Accounting Pronouncements

    In December 1999, the Securities and Exchange Commission ("SEC") issued
    Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
    Statements" ("SAB 101"), which was amended in March 2000 by Staff Accounting
    Bulletin No. 101B, "Amendment: Revenue Recognition in Financial Statements,"
    and is effective for the Company's quarter ending December 31, 2000 and all
    future quarters. SAB 101 clarifies the SEC's views related to revenue
    recognition and disclosure. The Company does not expect the provisions of
    SAB 101 to have a material effect on the Company's financial position or
    results of operations.

    In June 1998, the Financial Accounting Standards Board ("FASB") issued
    Statement of Financial Accounting Standards No. 133, "Accounting for
    Derivative Instruments and Hedging Activities" ("SFAS 133"), which was
    amended by SFAS No. 137 and SFAS No. 138 and is effective for all fiscal
    quarters of fiscal years beginning after June 15, 2000. The statement
    requires that all derivative investments be recorded in the balance sheet at
    fair value. Changes in the fair value of derivatives are recorded each
    period in current earnings or comprehensive income depending on whether a
    derivative is designated as part of a hedge transaction, and the type of
    hedge transaction. The Company does not expect the adoption of the statement
    to have a material effect on its financial statements.

                                       6
<PAGE>

Item 2.               Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                              (September 30, 2000)


     This Quarterly Report on Form 10-Q containS forward-looking statements.
Specifically, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.  Without
limiting the foregoing, the words "believes," "anticipates," "plans," "expects,"
and similar expressions are intended to identify forward-looking statements.
There are a number of meaningful factors that could cause the Company's actual
results to differ materially from those indicated by any such forward-looking
statements.  These factors include, without limitation, the duration and results
of clinical trials and their effect on the Food & Drug Administration ("FDA")
regulatory process, uncertainties regarding receipt of approvals for any
possible products and any commercial acceptance of such products, possible
difficulties with obtaining necessary patent protection, and uncertainties
regarding the outcome of any of the Company's collaborations or alliances with
third parties.  Other factors include those set forth under the caption
"Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999 and the documents referred to under such caption.

Results of Operations

 Overview

     The Company is a biotechnology company engaged in the research and
development of novel therapeutic and diagnostic products to treat chronic
debilitating diseases such as cancer, central nervous system disorders and
autoimmune diseases.  The Company expects that its research and development
costs will continue to increase as the Company attempts to gain regulatory
approval for commercial introduction of its proposed products.  At September 30,
2000, the Company is considered a "development stage enterprise" as defined in
Statement of Financial Accounting Standards No. 7.

 Three Months Ended September 30, 2000 and 1999

     The Company's net loss was $2,920,237 during the three months ended
September 30, 2000 as compared with $4,076,635 during the three months ended
September 30, 1999.  Net loss per common share equaled $0.14 per share for the
2000 period as compared to $0.27 per share for the 1999 period.  The lower net
loss in the 2000 period was primarily due to a purchased in-process research and
development charge in the 1999 period of $1,725,000, partially offset by higher
research and development expenses in the 2000 period.

     Revenue was zero for the three months ended September 30, 2000 as compared
with $200,000 for the three months ended September 30, 1999.  In September 1999,
the Company announced that it had entered into a development and licensing
agreement with a major pharmaceutical company to develop a major sector of the
Company's transcription factor technology.  Under the terms of the agreement,
the pharmaceutical company will screen its small molecule collection for
potential inhibitors of the transcription factor, with the goal of developing a
small molecule therapeutic drug for the treatment of a wide range of allergies
and asthma.  The Company will also receive royalties on eventual sales of any
product derived from the development effort.  The Company received a one-time
payment upon the execution of the development and licensing agreement which was
recognized as revenue because the Company has no remaining performance
obligations.

     Research and development expenses were $2,608,037 during the three months
ended September 30, 2000 as compared with $1,845,258 during the three months
ended September 30, 1999.  The higher level of expenses during the 2000 period
reflects the continued maturation and development of the

                                       7
<PAGE>

Company's technologies.  The increase was primarily related to the development
of a GMP manufacturing process for one technology, costs associated with a phase
II clinical trial, and higher pre-clinical manufacturing costs for another
technology.

     General and administrative expenses were $692,068 during the three months
ended September 30, 2000 as compared with $682,872 during the three months ended
September 30, 1999.

     Interest income was $379,868 during the three months ended September 30,
2000 as compared with $190,558 during the three months ended September 30, 1999.
The increase was primarily due to higher average cash, cash equivalent, and
short-term investment balances during the 2000 period as compared to the 1999
period.  Interest expense was zero during the three months ended September 30,
2000 as compared with $214,063 during the three months ended September 30, 1999.
The 1999 expense represents a non-cash charge associated with the accretion of
the carrying amount of the convertible debentures to their maturity value over
the term of the debentures.

 Nine Months Ended September 30, 2000 and 1999

     The Company's net loss was $9,199,586 during the nine months ended
September 30, 2000 as compared with $7,791,462 during the nine months ended
September 30, 1999.  Net loss per common share, excluding preferred stock
preferences, equaled $0.48 per share for the 2000 period as compared to $0.54
per share for the 1999 period.  The higher net loss in the 2000 period was
primarily due to higher research and development costs, partially offset by a
purchased in-process research and development charge in the 1999 period of
$1,725,000.

     The net loss available to common stockholders for the 1999 period,
including preferred stock preferences of $4,240,000, totaled $12,031,462.  Net
loss per common share available to common stockholders for the 1999 period,
including $0.30 attributable to preferred stock preferences, totaled $0.84.  In
February 1999, the Company completed a private placement of Series C convertible
preferred stock and warrants.  Based on the market price of the Company's stock
on the date of issuance, the preferred stock had a beneficial conversion feature
with an intrinsic value of approximately $1.9 million and the warrants had a
fair value of approximately $1.8 million, which amounts are included in the
preferred stock preferences.

     Revenue was zero for the nine months ended September 30, 2000 as compared
with $200,000 for the nine months ended September 30, 1999.  In September 1999,
the Company announced that it had entered into a development and licensing
agreement with a major pharmaceutical company to develop a major sector of the
Company's transcription factor technology.  Under the terms of the agreement,
the pharmaceutical company will screen its small molecule collection for
potential inhibitors of the transcription factor, with the goal of developing a
small molecule therapeutic drug for the treatment of a wide range of allergies
and asthma.  The Company will also receive royalties on eventual sales of any
product derived from the development effort.  The Company received a one-time
payment upon the execution of the development and licensing agreement which was
recognized as revenue because the Company has no remaining performance
obligations.

     Research and development expenses were $7,230,012 during the nine months
ended September 30, 2000 as compared with $4,605,672 during the nine months
ended September 30, 1999.  The higher level of expenses during the 2000 period
reflects the continued maturation and development of the Company's technologies.
The increase was primarily attributable to higher clinical trial expenses and
increased product manufacturing costs.  During the 2000 period, a phase II
clinical trial was initiated and the Company incurred higher costs for a phase
III clinical trial that was in process during both periods.  The Company also
incurred higher product manufacturing costs during the 2000 period related to
the

                                       8
<PAGE>

establishment of a GMP manufacturing process for one technology and higher pre-
clinical manufacturing scale-up costs for another technology.

     General and administrative expenses were $2,364,902 during the nine months
ended September 30, 2000 as compared with $2,001,897 during the nine months
ended September 30, 1999.  This increase was primarily due to higher non-
recurring, non-cash professional service costs during the 2000 period.  These
costs, representing the fair value (as determined under the Black Scholes
pricing model) of warrants and options issued to purchase shares of common
stock, totaled $320,993 during the 2000 period as compared with $115,000 during
the 1999 period.

     Interest income was $740,198 during the nine months ended September 30,
2000 as compared with $555,170 during the nine months ended September 30, 1999.
The increase was primarily due to higher average cash, cash equivalent, and
short-term investment balances during the 2000 period as compared to the 1999
period.   Interest expense was $344,870 during the nine months ended September
30, 2000 as compared with $214,063 during the nine months ended September 30,
1999.  The increase was primarily due to a higher daily average balance on the
$8 million of 8% convertible debentures during the 2000 period.  The debentures
were issued in September 1999 and were converted into common stock in February
and March 2000.

Liquidity and Capital Resources

     Since its inception, the Company has primarily satisfied its working
capital requirements from the sale of the Company's securities through private
placements. These private placements have included the sale of preferred stock
and common stock, as well as notes payable and convertible debentures. Each
private placement has included the issuance of warrants to purchase common
stock. A summary of financings completed during the three years ended September
30, 2000 is as follows:

<TABLE>
<CAPTION>
Date                   Net Proceeds Raised          Securities Issued
---------------------  ---------------------------- -----------------------
<S>                    <C>                           <C>
June 2000              $9.9 million                  Common stock

September 1999         $7.4 million                  Convertible debentures

February 1999          $2.3 million                  Common stock

February 1999          $5.6 million                  Preferred stock
</TABLE>

     In the future, the Company's working capital and capital requirements will
depend on numerous factors, including the progress of the Company's research and
development activities, the level of resources that the Company devotes to the
developmental, clinical, and regulatory aspects of its products, and the extent
to which the Company enters into collaborative relationships with pharmaceutical
and biotechnology companies.

     At September 30, 2000, the Company had available cash, cash equivalents and
short-term investments of approximately $21.7 million and working capital of
approximately $20.1 million.  The Company believes that the level of financial
resources available at September 30, 2000 will provide sufficient working
capital to meet its anticipated expenditures for more than the next twelve
months.  The Company may raise additional capital in the future through
collaborative agreements with other pharmaceutical or biotechnology companies,
debt financings, or equity offerings.  There can be no assurance, however, that
the Company will be successful or that additional funds will be available on
acceptable terms, if at all.

                                       9
<PAGE>

Accounting Pronouncements

     In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements"
("SAB 101"), which was amended in March 2000 by Staff Accounting Bulletin No.
101B, "Amendment: Revenue Recognition in Financial Statements," and is effective
for the Company's quarter ending December 31, 2000 and all future quarters.  SAB
101 clarifies the SEC's views related to revenue recognition and disclosure.
The Company does not expect the provisions of SAB 101 to have a material effect
on the Company's financial position or results of operations.

     In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities" ("SFAS 133"), which was amended by SFAS No.
137 and SFAS No. 138 and is effective for all fiscal quarters of fiscal years
beginning after June 15, 2000. The statement requires that all derivative
investments be recorded in the balance sheet at fair value. Changes in the fair
value of derivatives are recorded each period in current earnings or
comprehensive income depending on whether a derivative is designated as part of
a hedge transaction, and the type of hedge transaction. The Company does not
expect the adoption of the statement to have a material effect on its financial
statements.

Item 3 - Quantitative and Qualitative Disclosures about Market Risk

     There have been no material changes in the market risks reported in the
Company's Annual Report on Form 10-K for the year ended December 31, 1999.

                                       10
<PAGE>

                          PART II -- OTHER INFORMATION
                          ----------------------------


ITEM 1:   LEGAL PROCEEDINGS.
          -----------------

          None.

ITEM 2:   CHANGES IN SECURITIES.
          ---------------------

          None.

ITEM 3:   DEFAULTS UPON SENIOR SECURITIES.
          -------------------------------

          None.

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

          None.

ITEM 5:   OTHER INFORMATION.
          -----------------

          (a) Exhibits.

              None.

Item 6:   EXHIBITS AND REPORTS ON FORM 8-K.
          --------------------------------

          (a) Exhibits.

              27.1  Financial Data Schedule

          (b) Reports on Form 8-K: The Registrant filed the following reports on
              Form 8-K during the quarter ended September 30, 2000.


<TABLE>
<CAPTION>
                    Date of Report          Item Reported
                    ------------------      -------------
                    <S>                 <C>
                    July 27, 2000               5,7

</TABLE>




                                       11
<PAGE>

                                   SIGNATURES
                                   ----------


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                      BOSTON LIFE SCIENCES, INC.
                                      --------------------------
                                         (Registrant)


DATE:   November 13, 2000             /s/ S. David Hillson
                                      --------------------
                                      S. David Hillson
                                      President and Chief Executive Officer
                                      (Principal Executive Officer)

                                      /s/ Joseph Hernon
                                      ------------------
                                      Joseph Hernon
                                      Chief Financial Officer
                                      (Principal Financial and Accounting
                                        Officer)

                                       12