**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**QUARTERLY      REPORT UNDER SECTION 13 or 15 (d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

*Commission      file number 333-63432*

**Organetix,      Inc. **

| Delaware                                       | 73-1556428                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

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**ORGANETIX,      INC.**

**A      Development Stage Company**

|                                                                                                                                                                                                                                              | **PAGE(S)** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| **PART                  I    FINANCIAL INFORMATION**                                                                                                                                                                               |        |
|                                                                                                                                                                                                                                              |        |
| Item                  1.    Financial Statements:                                                                                                                                                                                  |        |
|                                                                                                                                                                                                                                              |        |
| Balance                  Sheets - September 30, 2006 and December 31, 2005                                                                                                                                                                        | 3.          |
|                                                                                                                                                                                                                                              |        |
| Statements                  of Operations - Nine months and three months ended September 30,                  2006 and                  2005 and the Period from Inception (May 28, 2003) to September                  30,                  2006 | 4.          |
|                                                                                                                                                                                                                                              |        |
| Statements                  of Cash Flows - Nine months ended September 30, 2006 and 2005 and                  the                                                                                                                                |        |
| Period                  from Inception (May 28, 2003) to September 30, 2006                                                                                                                                                                       | 5.          |
|                                                                                                                                                                                                                                              |        |
| Notes                  to Interim Financial Statements                                                                                                                                                                                            | 7.          |
|                                                                                                                                                                                                                                              |        |
| Item                  2.    Management’s Discussion and Analysis of Financial                  Condition and Results of Operations                                                                                           | 9.          |
|                                                                                                                                                                                                                                              |        |
| Item                  3.    Controls and Procedures                                                                                                                                                                                | 11.         |
|                                                                                                                                                                                                                                              |        |
|                                                                                                                                                                                                                                              |        |
| **PART                  II   OTHER INFORMATION**                                                                                                                                                                                   |        |
|                                                                                                                                                                                                                                              |        |
| Signatures                                                                                                                                                                                                                                        | 12.         |
|                                                                                                                                                                                                                                              |        |
| Exhibits                                                                                                                                                                                                                                          | 13.         |

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**PART      1 - FINANCIAL INFORMATION**

**ITEM      1 - FINANCIAL STATEMENTS**

|                                                                         |   | September                  30, |       | December                  31, |   |
|------------------------------------------------------------------------------|--------|--------------------------------|------------|-------------------------------|--------|
|                                                                         |   | 2006                           |       | 2005                          |   |
|                                                                         |   | (Unaudited)                    |       |                          |   |
|                                                                         |   |                           |       |                          |   |
| ASSETS                                                                       |   |                           |       |                          |   |
|                                                                         |   |                           |       |                          |   |
| CURRENT                  ASSETS                                              |   |                           |       |                          |   |
| Cash                                                                         |   | $                              | -          |                          | $      | 3,279 |   |
| Prepaid                  expenses                                            |   |                           | -          |                          |   | 18,859 |   |
|  Total                  Current Assets                                  |   |                           | -          |                          |   | 22,138 |   |
|                                                                         |   |                           |       |                          |   |   |   |
| TRANSPORTATION                  EQUIPMENT, net of accumulated                |   |                           |       |                          |   |   |   |
| depreciation                  of $0 (unaudited) and $15,000, respectively    |   |                           | -          |                          |   | 15,000 |   |
|                                                                         |   |                           |       |                          |   |   |   |
| LICENSE                  AGREEMENT, net of accumulated amortization of       |   |                           |       |                          |   |   |   |
| $                  0                  (unaudited) and $153,250, respectively |   |                           | -          |                          |   | 2,036,750 |   |
|                                                                         |   |                           |       |                          |   |   |   |
| Total                  Assets                                           |   | $                              | -          |                          | $      | 2,073,888 |   |
|                                                                         |   |                           |       |                          |   |   |   |
|                                                                         |   |                           |       |                          |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                        |   |                           |       |                          |   |   |   |
|                                                                         |   |                           |       |                          |   |   |   |
| CURRENT                  LIABILITIES                                         |   |                           |       |                          |   |   |   |
| Convertible                  note payable                                    |   | $                              | -          |                          | $      | 150,000 |   |
| Note                  payable to individual                                  |   |                           | -          |                          |   | 16,200 |   |
| Accounts                  payable                                            |   |                           | -          |                          |   | 157,152 |   |
| Accrued                  salaries to officers                                |   |                           | -          |                          |   | 483,966 |   |
| Interest                  payable                                            |   |                           | -          |                          |   | 15,720 |   |
| Due                  to related parties                                      |   |                           | -          |                          |   | 161,480 |   |
| Total                  Current Liabilities                              |   |                           | -          |                          |   | 984,518 |   |
|                                                                         |   |                           |       |                          |   |   |   |
| STOCKHOLDERS'                  EQUITY                                        |   |                           |       |                          |   |   |   |
| Common                  stock, par value $0.0001, authorized                 |   |                           |       |                          |   |   |   |
| 150,000,000                  shares, issued and outstanding             |   |                           |       |                          |   |   |   |
| 62,882,447                  and 86,382,447 at September 30, 2006        |   |                           |       |                          |   |   |   |
| (unaudited)                  and December 31, 2005, respectively        |   |                           | 6,288      |                          |   | 8,638 |   |
| Additional                  paid in capital                                  |   |                           | 4,012,449  |                          |   | 3,985,099 |   |
| Deficit                  accumulated during the development stage            |   |                           | (4,018,737 | )                             |   | (2,904,367 | ) |
| Total                  Stockholders' Equity                             |   |                           | -          |                          |   | 1,089,370 |   |
|                                                                         |   |                           |       |                          |   |   |   |
| Total                  Liabilities and Stockholders' Equity             |   |                           | -          |                          |   | 2,073,888 |   |
|                                                                         |   |                           |       |                          |   |   |   |
|                                                                         |   |                           |       |                          |   |   |   |
|                                                                              |   |                           |       |                          |   |   |   |

----

|                                                   |   |                                |       |                               |   |                           |   |        |       |                  For                  the Period |   |
|--------------------------------------------------------|--------|-------------------------------------|------------|------------------------------------|--------|--------------------------------|--------|-------------|------------|-------------------------------------------------------|--------|
|                                                   |   |                                |       |                               |   |                           |   |        |       | From                  Inception                       |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       | (May                  28,                             |   |
|                                                   |   | Three                  Months Ended |       | Nine                  Months Ended |   | 2003)                  to      |   |
|                                                   |   | September                  30,      |       | September                  30,     |   | September                  30, |   |
|                                                   |   | 2006                                |       | 2005                               |   | 2006                           |   | 2005        |       |  2006                                            |   |
|                                                   |   | (Unaudited)                         |       | (Unaudited)                        |   | (Unaudited)                    |   | (Unaudited) |       | (Unaudited)                                           |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |
| REVENUES                                               |   | $                                   | -          |                               | $      | -                              |   | $           | -          |                                                  | $      | - |   | $ | - |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| COSTS                  AND EXPENSES                    |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| Operating                  expenses- research facility |   |                                | -          |                               |   | 19,236                         |   |        | 36,600     |                                                  |   | 59,862 |   |   | 247,659 |   |
| Research                  and development expenses     |   |                                | -          |                               |   | 93,861                         |   |        | 132,139    |                                                  |   | 303,608 |   |   | 1,249,157 |   |
| Consulting                  fees                       |   |                                | -          |                               |   | 45,000                         |   |        | 90,000     |                                                  |   | 135,000 |   |   | 468,528 |   |
| Professional                  fees                     |   |                                | 25,000     |                               |   | 15,000                         |   |        | 55,296     |                                                  |   | 83,408 |   |   | 365,796 |   |
| Travel                  and accomodations              |   |                                | -          |                               |   | 5,906                          |   |        | 9,654      |                                                  |   | 24,152 |   |   | 130,362 |   |
| Telephone                                              |   |                                | 228        |                               |   | 3,705                          |   |        | 3,056      |                                                  |   | 7,311 |   |   | 35,528 |   |
| Interest                  expense                      |   |                                | -          |                               |   | 11,315                         |   |        | 9,157      |                                                  |   | 34,223 |   |   | 47,547 |   |
| Insurance                                              |   |                                | -          |                               |   | 3,507                          |   |        | 22,816     |                                                  |   | 10,641 |   |   | 104,188 |   |
| Rent                                                   |   |                                | -          |                               |   | 492                            |   |        | 7,545      |                                                  |   | 1,404 |   |   | 40,611 |   |
| Shipping                  expense                      |   |                                | -          |                               |   | 16,093                         |   |        | 1,112      |                                                  |   | 51,554 |   |   | 7,255 |   |
| Office                  and other expense              |   |                                | 1,986      |                               |   | 23,217                         |   |        | 31,065     |                                                  |   | 23,217 |   |   | 166,703 |   |
| Marketing                  and public relations        |   |                                | -          |                               |   | 81,598                         |   |        | 676        |                                                  |   | 142,611 |   |   | 271,900 |   |
| Depreciation                  and amortization expense |   |                                | -          |                               |   | 16,188                         |   |        | 32,375     |                                                  |   | 48,563 |   |   | 200,625 |   |
| Loss                  on disposition of assets         |   |                                | 682,878    |                               |   | -                              |   |        | 682,878    |                                                  |   | - |   |   | 682,878 |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
|  Total                  Costs and Expenses        |   |                                | 710,092    |                               |   | 335,118                        |   |        | 1,114,369  |                                                  |   | 925,554 |   |   | 4,018,737 |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| NET                  LOSS                              |   | $                                   | (710,092   | )                                  | $      | (335,118                       | )      | $           | (1,114,369 | )                                                     | $      | (925,554 | ) | $ | (4,018,737 | ) |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| NET                  LOSS PER COMMON                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| SHARE                  (Basic and Diluted)        |   |                                | ($0.01     | )                                  |   | ($0.00                         | )      |        | ($0.01     | )                                                     |   | ($0.03 | ) |   |   |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE SHARES               |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
| OUTSTANDING                                       |   |                                | 76,311,018 |                               |   | 85,317,230                     |   |        | 83,012,962 |                                                  |   | 34,731,492 |   |   |   |   |
|                                                   |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |
|                                                        |   |                                |       |                               |   |                           |   |        |       |                                                  |   |   |   |   |   |   |

----

**ORGANETIX,        INC. **

**(A          Development Stage Company)**

**NOTES          TO FINANCIAL STATEMENTS**

**June          30, 2006**

|                                                                       |   |                                   |        |                                     |   | For                      the Period                      From                        Inception                        (May                          28, 2003) |   |
|----------------------------------------------------------------------------|--------|----------------------------------------|-------------|------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                       |   | Nine                      Months Ended |        | to                                       |   |
|                                                                       |   | September                      30,     |        |  September                      30, |   |
|                                                                       |   | 2006                                   |        | 2005                                     |   |  2006                                                                                                                                                    |   |
|                                                                       |   | (Unaudited)                            |        | (Unaudited)                              |   | (Unaudited)                                                                                                                                                   |   |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |
| CASH                      FLOWS FROM OPERATING ACTIVITIES                  |   |                                   |        |                                     |   |                                                                                                                                                          |   |
| Net                      income (loss)                                |   |                                   | ($1,114,369 | )                                        |   | ($925,554                                                                                                                                                     | )      |   | (4,018,737 | ) |
| Adjustments                      to reconcile net income (loss) to net     |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| Cash                      provided by operating activities            |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| Depreciation                                                          |   |                                   | 32,375      |                                     |   | 48,563                                                                                                                                                        |   |   | 200,625 |   |
| Loss                      on disposition of assets                    |   |                                   | 682,878     |                                     |   | -                                                                                                                                                             |   |   | 682,878 |   |
| Compensatory                      shares                              |   |                                   | -           |                                     |   | 88,400                                                                                                                                                        |   |   | 324,111 |   |
| Changes                      in assets and liabilities:                    |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| (Increase)                      decrease in research and development  |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| supplies                                                              |   |                                   | -           |                                     |   | 15,167                                                                                                                                                        |   |   | - |   |
| (Increase)                      decrease in prepaid expenses          |   |                                   | (24,555     | )                                        |   | (15,678                                                                                                                                                       | )      |   | (43,414 | ) |
| Increase                      (decrease) in accounts payable          |   |                                   | 195,203     |                                     |   | 191,147                                                                                                                                                       |   |   | 352,356 |   |
| Increase                      (decrease) in accrued salaries          |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| to                      officers                                      |   |                                   | 150,000     |                                     |   | 135,000                                                                                                                                                       |   |   | 633,966 |   |
| Increase                      (decrease) in due to shareholders       |   |                                   | 42,793      |                                     |   |                                                                                                                                                          |   |   | 204,273 |   |
| Increase                      (decrease) in accrued interest          |   |                                   | 7,396       |                                     |   |                                                                                                                                                          |   |   | 23,116 |   |
|  Net                      cash used in operating activities           |   |                                   | (28,279     | )                                        |   | (462,955                                                                                                                                                      | )      |   | (1,640,826 | ) |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| CASH                      FLOWS FROM INVESTING ACTIVITIES                  |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| Payment                      regarding license                             |   |                                   | -           |                                     |   | -                                                                                                                                                             |   |   | (150,000 | ) |
| Capital                      expenditures                                  |   |                                   | -           |                                     |   | -                                                                                                                                                             |   |   | (30,000 | ) |
| Net                      cash used in investing activities            |   |                                   | -           |                                     |   | -                                                                                                                                                             |   |   | (180,000 | ) |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| CASH                      FLOWS FROM FINANCING ACTIVITIES                  |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| Issuance                      of common stock to founders                  |   |                                   | -           |                                     |   | -                                                                                                                                                             |   |   | 65,760 |   |
| Additional                      contribution of capital                    |   |                                   | 25,000      |                                     |   | 176,500                                                                                                                                                       |   |   | 1,288,866 |   |
| Cash                      received in merger                               |   |                                   | -           |                                     |   | -                                                                                                                                                             |   |   | 300,000 |   |
| Convertible                      note payable                              |   |                                   | -           |                                     |   | 150,000                                                                                                                                                       |   |   | 150,000 |   |
| Note                      payable to individual                            |   |                                   | -           |                                     |   | 84,325                                                                                                                                                        |   |   | 16,200 |   |
| Net                      cash provided by financing activities        |   |                                   | 25,000      |                                     |   | 410,825                                                                                                                                                       |   |   | 1,820,826 |   |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| INCREASE                      (DECREASE) IN CASH                           |   |                                   | (3,279      | )                                        |   | (52,130                                                                                                                                                       | )      |   | 0 |   |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| CASH                      AT BEGINNING OF PERIOD                           |   |                                   | 3,279       |                                     |   | 57,495                                                                                                                                                        |   |   | - |   |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
| CASH                      AT END OF PERIOD                                 |   | $                                      | -           |                                     | $      | 5,365                                                                                                                                                         |   | $ | - |   |
|                                                                       |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |
|                                                                            |   |                                   |        |                                     |   |                                                                                                                                                          |   |   |   |   |

----

**ORGANETIX,          INC. **

**(A          Development Stage Company)**

**NOTES          TO FINANCIAL STATEMENTS**

**June          30, 2006**

|                                                                 |   |                                 |   |                             |   | For                    the Period                    From                      Inception (May                      28, 2003) |   |
|----------------------------------------------------------------------|--------|--------------------------------------|--------|----------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                 |   | Nine                    Months Ended |   | to                               |   |
|                                                                 |   | September                    30,     |   | September                    30, |   |
|                                                                 |   | 2006                                 |   | 2005                             |   | 2006                                                                                                                         |   |
|                                                                 |   | (Unaudited)                          |   | (Unaudited)                      |   | (Unaudited)                                                                                                                  |   |
|                                                                 |   |                                 |   |                             |   |                                                                                                                         |   |
| SUPPLEMENTAL                    DISCLOSURES OF CASH FLOW INFORMATION |   |                                 |   |                             |   |                                                                                                                         |   |
|                                                                 |   |                                 |   |                             |   |                                                                                                                         |   |
| NON-CASH                    FINANCING ACTIVITIES                     |   |                                 |   |                             |   |                                                                                                                         |   |
| Cancellation                    of common stock                      |   |                                 | 2,350  |                             |   |                                                                                                                         |   |   | 2,350 |   |
|                                                                 |   |                                 |   |                             |   |                                                                                                                         |   |   |   |   |
|                                                                 |   |                                 |   |                             |   |                                                                                                                         |   |   |   |   |
|                                                                 |   |                                 |   |                             |   |                                                                                                                         |   |   |   |   |
|                                                                 |   |                                 |   |                             |   |                                                                                                                         |   |   |   |   |
|                                                                      |   |                                 |   |                             |   |                                                                                                                         |   |   |   |   |

----

**ORGANETIX,      INC. **

**(A      Development Stage Company)**

**NOTES      TO FINANCIAL STATEMENTS**

**June      30, 2006**

**ORGANETIX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**September      30, 2006 **

----

**ORGANETIX,        INC. **

**(A        Development Stage Company)**

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2006**

**ORGANETIX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**September      30, 2006 **

----

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

**CAUTIONARY      STATEMENT REGARDING FORWARD LOOKING STATEMENTS **

**RESULTS      OF OPERATIONS **

**FUND      RAISING ACTIVITIES**

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**HISTORY**

**LEGAL      PROCEEDINGS **

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES **

***RECENT      ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY***

----

**ITEM      3 - CONTROLS AND PROCEDURES**

**Evaluation      of Disclosure Controls and Procedures**

**Changes      in internal controls**

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**PART      II**

**Item      1. Legal Proceedings**

**Item      2. Changes in Securities**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security Holders**

**Item      5. Other Information **

**Item      6. Exhibits**

**SIGNATURES**

**ORGANETIX,      INC.**

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