AMENDMENT NO. 1

                                       To

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

           (X) QUARTERLY REPORT PURSUANT TO SECTION 13 0R 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended March 31, 1998

                                       OR

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                  For the transition period from _____ to _____


                         Commission file number 0-28434
                   ------------------------------------------


                                  DIATIDE, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


              Delaware                                     04-3078258
--------------------------------------------------------------------------------
(State or other jurisdiction of incorporation  (IRS Employer Identification No.)
             or organization)


            Nine Delta Drive, Londonderry, NH                           03053
--------------------------------------------------------------------------------
         (Address of principal executive offices)                     (Zip Code)


                                  603-437-8970
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports 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.   Yes  X    No 
                        ---      ---

The number of shares outstanding of each of the issuer's classes of common stock
as of


                 Class                             Outstanding at May 5, 1998
                 -----                             --------------------------

      Common Stock, $0.001 par value                       10,559,971



                                     Page 1
<PAGE>

                                EXPLANATORY NOTE


         On May 15, 1998 at 12:50 p.m. EST the Registrant, Diatide Inc., filed
Form 10-Q with the Securities and Exchange Commission via EDGAR (SEC Accession
number 0001029869-98-000675). Subsequent to that filing two changes have been
made to page 5 (Consensed Statements Of Cash Flows). Those are the only material
changes between this filing and the previously filed 10-Q.




<PAGE>

                                  DIATIDE, INC.
                          (A Development Stage Company)
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
   
                                                                                                 For the Period
                                                                                                February 6, 1990
                                                                                                    (date of
                                                          Three Months Ended March 31,           inception) to
                                                    -----------------------------------------       March 31,
                                                          1998                   1997                 1998
                                                    -------------------   -------------------   -------------------
<S>                                                <C>                   <C>                   <C>
Operating activities:
Net loss                                            $      (3,082,539)    $      (2,695,313)    $     (48,252,501)
Adjustments to reconcile net loss to
    cash used in operating activities:
        Depreciation and amortization                         112,765               115,703             1,886,182
        Cancellation of accrued interest                           --                    --               111,438
        Amortization of deferred compensation                  34,164                83,115               732,205
        Compensation associated with stock option 
          grants                                               30,300                15,000               289,185
        Changes in operating assets and                      
          liabilities                                        (311,154)             (641,472)            2,288,141
                                                    -------------------   -------------------   -------------------
           Cash used in operating activities               (3,216,464)           (3,122,967)          (42,945,350)

Investing activities:
Additions to property and equipment                           (32,820)              (52,490)           (2,774,695)
Purchases of marketable securities                           (966,837)           (3,997,069)          (35,586,419)
Sales of marketable securities                              4,550,000             4,500,000            25,494,953
                                                    -------------------   -------------------   -------------------
           Cash provided by (used in) investing             
              activities                                    3,550,343               450,441           (12,866,161)

Financing activities:
Sale of preferred stock                                            --                    --            39,808,914
Issuance of convertible notes                                      --                    --             3,508,464
Repayment of convertible notes                                     --                    --              (315,000)
Issuance of long-term debt                                         --                    --               900,518
Repayment of long-term obligations                               (941)                 (288)             (907,641)
Sale of common stock                                           42,576                40,044            17,049,767
Repurchase of common stock                                         --                    --                   (24)
                                                    -------------------   -------------------   -------------------
           Cash provided by financing activities               41,635                39,756            60,044,998
                                                    -------------------   -------------------   -------------------

Net increase (decrease) in cash and cash                     
   equivalents                                                375,514            (2,632,770)            4,233,487

Cash and cash equivalents at beginning of period            3,857,973             6,004,207                    --
                                                    -------------------   -------------------   -------------------
Cash and cash equivalents at end of period          $       4,233,487     $       3,371,437     $       4,233,487
                                                    ===================   ===================   ===================

Noncash transactions:
        Acquisition of equipment through capital
          lease obligation                          $              --     $              --     $          19,358
        Conversion of convertible notes and
          accrued interest to preferred stock       $              --     $              --     $       3,304,902
        Deferred compensation associated with
          stock options issued at less than fair      
          value                                     $              --     $              --     $       1,075,969
    
</TABLE>


See Notes to Condensed Financial Statements.


                                     Page 5
<PAGE>



                                  DIATIDE, INC.
                                    FORM 10-Q
                                 March 31, 1998


                                   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.


                       DIATIDE, INC.


DATE: May 14, 1998     BY: /s/ Daniel F. Harrington
                           _____________________________________________________
                           Daniel F. Harrington
                           Vice President, Chief Financial Officer and Treasurer
                           (Principal Financial Officer)




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