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             FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

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

                                   -----------

                                  FORM 10-Q SB

     [X]            QUARTERLY REPORT PER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                       FOR THE PERIOD ENDED MARCH 31, 1997

                                    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 0-9860



                        BIOSEARCH MEDICAL PRODUCTS, INC.
             ------------------------------------------------------ 
             (Exact name of registrant as specified in its charter)



          NEW JERSEY                                    22-2090421
 -------------------------------                   ----------------------
 (State or other jurisdiction of                    (I.R.S. Employer
 incorporation or organization)                    Identification Number)



 35 INDUSTRIAL PARKWAY, SOMERVILLE, NEW JERSEY                 08876-1276
 ---------------------------------------------               --------------
    (Address of principal executive offices)                 (Zip Code + 4)


Registrant's telephone number, including area code:   (908) 722-5000


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

Indicate the number of shares outstanding of each of the issuers classes of
Common Stock, as of the close of the period covered by this report.

                       CLASS OUTSTANDING AT MARCH 31, 1997

                    Common Stock without par value 2,202,878

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


<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.


                              INDEX TO FORM 10-Q SB
                                 MARCH 31, 1996

                                                                       PAGE NO.
                                                                       --------
PART I - FINANCIAL INFORMATION

   Condensed Balance Sheet at March 31, 1997 (unaudited)
     and December 31, 1996. ...........................................    3-4


   Condensed Statements of Operations (unaudited)
     for the three month periods ended
     March 31, 1997 and March 31, 1996. ...............................      5


   Condensed Statements of Cash Flows (unaudited)
     for the three month periods ended
     March 31, 1997 and March 31, 1996. ...............................      6


   Notes to (unaudited) Condensed
     Financial Statements. ............................................    7-8


   Management's Discussion and Analysis of the Financial
     Condition and the Results of Operations. .........................   9-10

PART II - OTHER INFORMATION

   Signatures. ........................................................     11


                                       2

<PAGE>


                                     PART I

                          ITEM I - FINANCIAL STATEMENTS

                        BIOSEARCH MEDICAL PRODUCTS, INC.

                            CONDENSED BALANCE SHEETS

                                     ASSETS

                                                    MARCH 31,       DECEMBER 31,
                                                       1997           1996(1)
                                                    ---------       -----------
                                                   (Unaudited)
CURRENT ASSETS:
  Cash and cash equivalents ....................   $   46,486        $  321,376
  Trade receivables ............................       98,776           182,247
  Inventories (note 2) .........................      497,902           513,551
  Other assets .................................       35,698            30,665
                                                   ----------        ----------
    TOTAL CURRENT ASSETS .......................      678,862         1,047,839
PROPERTY, PLANT AND EQUIPMENT, (NET) ...........    1,442,796         1,451,805
OTHER ASSETS ...................................       10,726            13,580
                                                   ----------        ----------
    TOTAL ASSETS ...............................   $2,132,385        $2,513,224
                                                   ==========        ==========

--------

(1) - Derived from audited financial statements.


                      See accompanying notes to unaudited
                        condensed financial statements.


                                       3

<PAGE>


                                     PART I

                          ITEM I - FINANCIAL STATEMENTS

                        BIOSEARCH MEDICAL PRODUCTS, INC.

                            CONDENSED BALANCE SHEETS

                                     ASSETS

                                                    MARCH 31,       DECEMBER 31,
                                                      1997            1996(1)
                                                    ---------       -----------
                                                    (Unaudited)
CURRENT ASSETS:
  Cash and cash equivalents ....................   $   46,486        $  321,376
  Trade receivables ............................       98,776           182,247
  Inventories (note 2) .........................      497,902           513,551
  Other assets .................................       35,698            30,665
                                                   ----------        ----------
    TOTAL CURRENT ASSETS .......................      678,862         1,047,839
PROPERTY, PLANT AND EQUIPMENT, (NET) ...........    1,442,796         1,451,805
OTHER ASSETS ...................................       10,726            13,580
                                                   ----------        ----------
    TOTAL ASSETS ...............................   $2,132,385        $2,513,224
                                                   ==========        ==========

--------

(1) - Derived from audited financial statements.


                      See accompanying notes to unaudited
                        condensed financial statements.


                                       3

<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.

                            CONDENSED BALANCE SHEETS
                                   (continued)

                      LIABILITIES AND SHAREHOLDERS' EQUITY


                                                     MARCH 31      DECEMBER 31
                                                      1997           1996(1)
                                                    ---------      -----------
                                                   (Unaudited)
CURRENT LIABILITIES:
  Current maturities of L/T debt ..............    $    36,788     $    36,788
  Customer deposit ............................          --               --
  Accounts payable ............................        156,503         185,653
  Accrued liabilities .........................         42,778         131,693
                                                   -----------     -----------
    TOTAL CURRENT LIABILITIES .................        236,069         354,134
LONG-TERM DEBT (NOTE 3) .......................        654,253         662,734
                                                   -----------     -----------
    TOTAL LIABILITIES .........................    $   890,322     $ 1,016,868
                                                   ===========     ===========

SHAREHOLDERS' EQUITY:
  Common Stock, no par value; 5,000,000
    shares authorized; issued 2,202,878
    at March 31, 1997, and
    at December 31, 1996. .....................    $11,129,954     $11,129,954

  Accumulated deficit .........................     (9,856,652)     (9,602,359)

  Treasury stock, at cost;
    7,940 at March 31, 1997 and
    at December 31, 1996. .....................        (31,239)        (31,239)
                                                   -----------     -----------
    TOTAL SHAREHOLDERS' EQUITY ................      1,242,063       1,496,356
                                                   -----------     -----------
                                                   $ 2,132,385     $ 2,513,224
                                                   ===========     ===========

--------

(1) - Derived from audited financial statements.


                      See accompanying notes to unaudited
                        condensed financial statements.


                                       4

<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                                THREE MONTHS ENDED
                                                     MARCH 31,
                                          -----------------------------
                                              1997               1996
                                          ----------         ----------
Revenues, net ....................        $  274,962         $  592,686
Cost of goods sold ...............           267,730            556,687
                                          ----------         ----------
Gross profit .....................             7,232             35,999
Selling, general and                                         
  administrative costs ...........           242,661            297,617
                                          ----------         ----------
Operating loss ...................          (235,429)          (261,618)
Other income/(expense):                                      
  Interest expense ...............           (19,067)           (16,958)
  Other, net .....................               202                (93)
                                             (18,865)           (17,051)
                                          ----------         ----------
NET INCOME/(LOSS) ................        $ (254,294)        $ (287,669)
                                          ==========         ==========
INCOME/(LOSS) PER COMMON SHARE:                              
                                                             
Net income/(loss) per common share        $     (.12)        $     (.13)
                                          ==========         ==========
Weighted average number                                      
  of common shares ...............         2,202,878          2,202,808
                                          ==========         ==========
                                                         
                       See accompanying notes to unaudited
                         condensed financial statements.

                                       5

<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

<TABLE>
<CAPTION>

                                                                  THREE MONTHS ENDED
                                                                       MARCH 31,
                                                               --------------------------
                                                                  1997            1996
                                                               ---------       ----------
<S>                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss) .......................................      $(254,294)      $(278,669)
Adjustments to reconcile net income/(loss)                                     
  to net cash provided by/(used in) operating activities:                      
    Depreciation and amortization .......................         23,380          20,550
        Sub total .......................................         22,380          20,550
                                                               ---------       ---------
Changes in assets and liabilities:                                             
  Decrease/(increase) in accounts receivable ............         83,472        (240,688)
  Decrease/(increase) in inventory ......................         15,649          83,590
  Increase in other current assets ......................         (5,033)        (26,444)
  Decrease/(increase) in other assets ...................          2,854         155,675
  Increase in accounts payable ..........................        (29,150)         55,612
  Decrease in other liabilities                                                
    and customer deposits ...............................        (88,915)       (107,913)
                                                               ---------       ---------
        Sub total .......................................        (21,123)        (80,168)
                                                               ---------       ---------
Total adjustments .......................................          1,257         (59,618)
                                                               ---------       ---------
Net cash provided by/(used in) operating activities .....       (253,037)       (338,287)
                                                               ---------       ---------
CASH FLOWS FROM INVESTING ACTIVITIES:                                          
  Capital expenditures ..................................        (13,371)        (44,677)

Net cash used in investing activities ...................        (13,371)        (44,677)
                                                               ---------       ---------
CASH FLOWS FROM FINANCING ACTIVITIES:                                          
  Principal payments on long-term borrowing .............         (8,481)         (7,524)
                                                               ---------       ---------
Net cash used in financing activities ...................         (8,481)         (7,524)
                                                               ---------       ---------
Net (decrease)/increase in cash                                                
  and cash equivalents ..................................       (274,889)       (390,488)
                                                                               
Cash & equivalents at beginning of period ...............        321,376         568,092
                                                               ---------       ---------
Cash & equivalents at end of period .....................      $  46,487       $ 177,604
                                                               =========       =========
                                                                            

</TABLE>

                       See accompanying notes to unaudited
                         condensed financial statements


                                       6

<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1. BASIS OF PRESENTATION

     The accounting policies followed by the Company are set forth in Note 1 of
Notes to Financial Statements in the 1996 Annual Report on Form 10-K.

     In the opinion of the management of the Company, the accompanying condensed
financial statements contain only normal and recurring adjustments necessary for
the fair presentation of the Company's financial position as of March 31, 1997
and the results of operations for the three month periods ended March 31, 1997
and March 31, 1996 and the statement of cash flows for the three month periods
ended March 31, 1997 and March 31, 1996.

     The results of operations for the three month period ended March 31, 1997
are not necessarily indicative of the results to be expected for a succeeding
quarter or for the full year.

2. INVENTORIES

                                           MARCH 31, 1996      DECEMBER 31, 1996
                                           --------------      -----------------
                                            (Unaudited)

    Finished Goods .......................   $126,454               $130,432
    Work In Process ......................    162,776                167,897
    Raw Materials ........................    208,672                215,222
                                             --------               --------
                                             $497,902               $513,551
                                             ========               ========

                                       7

<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

3. LONG-TERM DEBT

                                           MARCH 31, 1997     DECEMBER 31, 1996
                                           --------------     -----------------
                                            (Unaudited)

   Note payable - bank (a) ..............    $691,041            $699,522
   Less current maturities ..............      36,788              36,788
                                             --------            --------
   Long-term debt .......................    $654,253            $662,734
                                             ========            ========


---------

     (A) This note is secured by a first mortgage on the Company's Somerville,
New Jersey facility and miscellaneous equipment, and represents Economic
Development Authority ("EDA") funds. The note bears an interest rate of 75% of
prime with a minimum interest rate of 11.25% and a maximum interest rate of
22.5%. The principal is payable in varying monthly installments of principal and
interest, with the final payment April 1, 2007. The Company has not made any
payments since 2/26/97. The Summit Bank, by letter dated 4/18/97, notified the
Company it is in default, but has reserved any remedies at this time, however,
may not continue to do so.

4. COMMITMENTS AND CONTINGENCIES

     There are no claims or actions against the Company which will materially
effect its financial statements.


                                       8

<PAGE>


                        BIOSEARCH MEDICAL PRODUCTS, INC.

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

RESULTS OF OPERATIONS

     Revenues were $274,962 for the three months ended March 31, 1997, down
$317,724, or 54% compared to revenues of $592,686 for the prior year three month
period. OEM products sales were approximately 67% of revenues in the first
quarter 1997 compared to 83% for the same period in 1996. The decline in
revenues is due primarily termination of the Sherwood contract in early 1996,
which resulted in a sales decline of approximately $300,000 versus last year.
Total orders pending shipment at March 31, 1997 is $395,000, primarily OEM
orders, compared to $1,348,000 at December 31, 1996. This difference is also due
to the Sherwood contract as explained above.

     Gross profit of $7,232, or 3% was down $28,767, or 80% from the first
quarter 1996 comparable gross profit of $35,999, or 6%. The change in gross
profit is directly due to the low revenues as discussed above.

     Operating loss of $235,429 was $26,189, or 10% less than the operating loss
of $261,618 generated during the first quarter of 1996. These results were
mostly attributed to the cost containment procedures implemented and continued
in 1996 and further personnel layoffs in early 1997 offset by the significant
decline in sales.

     Net loss of $254,294 is $33,375 less than the loss of $287,669 from
continuing operations generated during the first quarter of 1996. The loss on
approximately $300,000 less in revenues, shows cost containment procedures are
working, however incresed sales volumes are needed to show a profit.

                                       9


<PAGE>

                        BIOSEARCH MEDICAL PRODUCTS, INC.

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

LIQUIDITY AND CAPITAL RESOURCES

     The Company's operating activities used $253,037 of cash during the first
quarter 1997 as compared to using $338,287 in 1996. Financing activities used
$8,481 for the three month period ended March 31, 1997 primarily due to
principal payments on debt. Investing activities used $13,371 for capital
expenditures. The net result of first quarter 1997 cash flow was a decrease of
$274,890 in cash and cash equivalents.

     For the three month period ended March 31, 1997 all assets and liabilities
used approximately $21,000 in cash.

     Management believes that the Company's financial condition at March 31,
1997 represents an uncertain base to conduct current operations. There is no
assurance that the Company's operations will generate sufficient cash flow to
meet its current obligations. The Company is in the process at this time of
looking into obtaining additional financing. To date, the Company has no
available line of credit.

     The Company received its ISO 9000 certification in late 1996 and its CE
mark is pending until the results of an audit by BSI (The Company's notifying
body) in September 1997 is finalized. The Company feels this certification will
open the European market to its products and allow it to build additional
relationships with other large medical products companies' who for whatever
reason, have not received their certification and wish to sell their products in
Europe. The Company is focusing all its efforts on its OEM business and its
intermittent urinary catheter product line.

     There is no assurance that the Company's revenue from its 1997 strategy
will attain the volumes needed to maintain long-term operations.


                                       10

<PAGE>


                                     PART II

                                   SIGNATURES

     Pursuantto 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.

                                      BIOSEARCH MEDICAL PRODUCTS, INC.
                                      
                                      
Dated: May 13, 1997                   /s/ MANFRED F. DYCK
                                      ----------------------------------
                                          Manfred F. Dyck
                                          President and Principal
                                          Executive Officer and Director
                                      
                                      
                                      
Dated: May 13, 1997                   /s/ ROBERT C. KELLER
                                      ----------------------------------
                                          Robert C. Keller
                                          Chief Financial Officer
                                      
                                
                                       11