|UNITED
STATES      SECURITIES AND EXCHANGE COMMISSION      WASHINGTON, D.C. 20549            FORM. 10-QSB                  [ X ]	QUARTERLY REPORTS UNDER SECTION 13 OR 15(D) OF         THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER         31, 1999.      OR            [ ]	QUARTERLY
REPORTS UNDER SECTION 13 OR 15(d) OF THE         SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________         TO ______________.                    Commission File No. 0-19844      -----------            PARACELSIAN, INC.      -----------------
-------------------------------------      (Exact name of small business issuer as specified in its         charter)
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|Delaware                                                                                                           |  | 16-1399565                          
|------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------
|-----------                                                                                                        |  | --------------------                
|(State or other       jurisdiction of incorporation or organization)                                               |  | (I.R.S. Employer Identification No.)
|222 Langmuir       Laboratories, Cornell Technology Park, Ithaca, New York                                         |  | 14850                               
|-------------------------------------------------------------------------                                          |  | --------------------                
|(Address         of
principal executive offices)                                                                   |  | Zip Code                            
|                                                                                                                   |  |                                     
|Issuer's           telephone number: (607) 257-4224          -----------------------------------------------------



|Check whether the issuer (1) filed
all reports required         to be filed by Section 13 or 15(d) of the Securities Exchange Act during         the past 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 [ ]             There         were 20,677,783 shares of Common Stock outstanding at
February 23, 2000.            Paracelsian,         Inc. and Subsidiary            Index
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|PART I. 
FINANCIAL         INFORMATION      Item 1.	Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Consolidated Balance Sheet
    as of December 31, 1999 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Consolidated Statements         of
Operations for the three months ended December 31, 1999and 1998 and the         cumulative period from inception to December 31, 1999 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                  
|Consolidated Statements         of Cash Flows for the three months ended December 31, 1999and 1998 and the         cumulative period from inception to December 31, 1999 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                  
|Notes to Consolidated         Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Item. 2  Managements         Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                               
|PART II  OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Item 1  Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Item 6  Exhibits         and Reports of Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Signatures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Paracelsian, Inc. and Subsidiary(A Development Stage Company)      Consolidated Balance Sheet      December 31, 1999      (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                 

|                                                 |                                                             | December 31,
|------------------------------------------------ | ----------------------------------------------------------- | ------------
|                                                 |                                                             | 1999        
|                                                 | Assets                                                      |             
|Current Assets:                                  |                                                            
|                                                 | Cash and cash equivalents                                   | $7,814      
|                                                 | Inventory                                                   | 171,689     
|                                                 | Prepaid
expenses and other current assets                   | 53,512      
|                                                 | Total current assets                                        | 233,015     
|                                                 |                                                             |             
|Equipment, net                                   | 187,846                                                    
|                                                 |                                                             |             
|Other Assets:                                    |                                                            
|                                                 | TCM extracts on-hand                                        | 116,784     
|                                                 | Patents and trademarks, net                                 | 218,244     
|                                                 | Note receivable                                             | 148,750     
|                                                 |                                                             | 483,778     
|                                                 |                                                             | $904,639    
|                                                 |                                                             |             
|                                                 | Liabilities and Stockholders Equity                        |             
|Current Liabilities:                             |                                                            
|                                                 | Accounts payable                                            | $267,882    
|                                                 | Accrued expenses                                            | 101,363     
|                                                 | Current
portion of capital lease obligation                 | 10,545      
|                                                 | Current portion of notes payable                            | 267,721     
|                                                 |                                                             |             
|                                                 | Total current liabilities                                   | 647,511     
|                                                 |                                                             |             
|Long-term Liabilities:                           |                                                            
|                                                 | Deferred Revenue                                            | 57,000      
|                                                 | Long-term portion of capital lease obligation               | 6,389       
|                                                 | Long-term portion of notes payable                          | 13,321      
|                                                 | Total current and long-term liabilities                     | 724,221     
|                                                 |                                                             |             
|Stockholders Equity                             |                                                            
|                                                 | Common Stock, $.01 par value; 35,000,000 shares authorized; |             
|                                                 | 20,671,783 shares outstanding at         December 1999      | 206,718     
|Additional
paid-in-capital                       | 24,332,929                                                 
|Deficit accumulated during the development stage | (23,016,714)                                               
|Treasury stock, at cost; 265,478                 | (1,342,515)                                                
|                                                 | Total stockholders equity                                  | 180,418     
|                                                 |                                                             | $904,639    



See accompanying notes to consolidated financial statements

Paracelsian, Inc. and Subsidiary

(A
Development Stage Company)

Consolidated Statements of Operations

For the three months ended December 31, 1999 and 1998,

And the cumulative period from inception to December 31, 1999

(Unaudited)



|                       |                                                      | Three Months         Ended | Cumulative  
|---------------------- | ---------------------------------------------------- | -------------------------- | ------------
|                       |                                                      | Period from               
|                       |                                                      | Inception to              
|                       |                                                      | December 31,               | December 31,
|Revenues               | 1999                                                 | 1998                       | 1999        
|                       |                                                      |                            |             
|                       | Marketing rights                                     | $ 50,389                   | -           
|                       | Products                                             | 1,138                      | 1,705       
|                       | Product Testing                                      | 25,520                     | 10,260      
|                       | Product royalties                                    | -                          | -           
|                       | Subscription revenue                                 | -                          | -           
|                       |                                                      |                            |             
|                       | Total
Revenues                                       | 77,047                     | 11,965      
|                       |                                                      |                            |             
|Operating expenses:    |                                                      |                            |             
|                       | Research and product engineering                     | 154,003                    | 173,577     
|                       | General and administrative                           | 298,582                    | 341,483     
|                       | Product launch costs                                 | -                          | -           
|                       | Cost of products sold                                | -                          | -           
|                       |                                                      |                            |             
|                       | Total Operating expenses                             | 452,585                    | 515,060     
|                       |                                                      |                            |             
|                       | Loss from operations during the development stage    | (375,538)                  | (503,095)   
|                       |                                                      |                            |             
|Interest income, net   | 16,312                                               | -                          | 521,275     
|Gain on sale of assets | -                                                    | -                          | 38,488      
|                       |                                                      |                            |             
|                       | Net loss during the development stage                | $(359,226)                 | (503,095)   
|                       |                                                      |                            |             
|                       | Basic and diluted net loss per share of common stock | $ (.02)                    | (.03)       
|                       |                                                      |                            |             
|                       | Weighted average number
of Common                    |                            |             
|                       | Shares       outstanding                             | 19,797,522                 | 18,093,430  
|                       |                                                      |                            |             



See accompanying notes to consolidated financial statements.





Paracelsian, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Cash Flows

For the three months ended December 31, 1999 and 1998,

And the cumulative period from inception to December 31, 1999

(Unaudited)



|                                                                                      |                      |              | Cumulative  
|------------------------------------------------------------------------------------- | -------------------- | ------------ | ------------
|                                                                                      |                      |              | Period from 
|                                                                                      | Three Months Ended   | Inception to
|                                                                                      | December         31, | December 31,
|Cash flows from       operating activities:                                           | 1999                 | 1998         | 1999        
|                                                                                      |                      |              |             
|Net loss                                                                              | $(359,226)           | (503,095)    | (20,888,715)
|Adjustments to reconcile net loss to net cash used in                                 |                      |              |             
|operating activities                                                                  |                      |              |             
|Gain on the sale of assets                                                            | -                    | -            | (6,968)     
|Non-cash compensation expense                                                         | 15,000               | 29,763       | 1,420,070   
|Other non-cash expenses                                                               |                      |              | 2,071,985   
|Depreciation and amortization                                                         | 59,325               | 107,325      | 2,165,641   
|Changes in assets and liabilities                                                     | -                    | -            | -           
|(Increase)         decrease in inventory                                              | -                    | -            | (171,689)   
|(Increase)         decrease in prepaid expenses                                       | -                    | -            | -           
|and         other current assets                                                      | (2,474)              | 27,954       | (53,512)    
|(Decrease)         increase in accounts payable                                       | 118,979              | 36,068       | 267,882     
|(Decrease)         increase in deferred revenue                                       | -                    | -            | 57,000      
|(Decrease)         increase in accrued expenses                                       | (107,669)            | 11,226       | 101,363     
|                                                                                      |                      |              |             
|Net cash used in operating activities                                                 | (276,065)            | (290,759)    | (15,036,941)
|                                                                                      |                      |              |             
|Cash flows from       investing activities:                                           | -                    | -            |             
|Purchase of equipment                                                                 | -                    | -            | (737,168)   
|Proceeds from sale of equipment                                                       | -                    | -            | 26,968      
|Acquisition of licensed technology                                                    | -                    | -            | (53,656)    
|Acquisition of patents and trademarks                                                 | (1,998)              | (6,141)      | (487,620)   
|Acquisition of New Century Nutrition newsletter                                       | -                    | -            | (350,000)   
|Acquisition of option for East West Herbs, Ltd. and related acquisition         costs | -                    | -            | (92,866)    
|                                                                                      | -                    | -            | -           
|Loan to East West Herbs, Ltd.                                                         | -                    | -            | (340,000)   
|Proceeds from loan to East West Herbs, Ltd.                                           | -                    | -            | 42,500      
|                                                                                      |                      |              |             
|Net cash used in investing activities                                                 | (1,998)              | (6,141)      | (1,991,842) 
|                                                                                      |                      |              |             
|Cash flows from       financing activities:                                           | -                    | -            | -           
|Sale of common
stock, initial public offering, net of costs                           | -                    | -            | 5,124,014   
|Sale of common and preferred stock, net of costs                                      | -                    | 250,000      | 11,776,089  
|Proceeds from the exercise of warrants                                                | -                    | -            | 1,186,295   
|Proceeds from the exercise of options                                                 | -                    | -            | 68,900      
|Purchase of treasury stock                                                            | -                    | -            | (1,342,515) 
|Cost of warrant dividend                                                              | -                    | -            | (63,102)    
|Increase in capital lease obligations and notes payable                               | -                    | -            | 115,868     
|Payment on capital lease obligations                                                  | (7,515)              | (1,545)      | (18,279)    
|(Decrease) increase in notes payable                                                  | 220,638              | (13,073)     | 189,327     
|                                                                                      |                      |              |             
|Net cash (used in) provided by         financing activities                           | 224,182              | 235,382      | 17,036,597  
|                                                                                      |                      |              |             
|Net increase       (decrease) in cash and cash equivalents                            | (64,940)             | (61,518)     | 7,814       
|Cash and cash       equivalents, beginning of period                                  | 72,754               | 250,542      | -           
|                                                                                      |                      |              |             
|Cash and cash       equivalents, end of period                                        | $ 7,814              | $189,024     | 7,814       
|                                                                                      |                      |              |             

See accompanying notes
to consolidated financial statements.



Paracelsian, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Cash Flows

For the nine months ended Decemberr 30, 1999 and 1998,

And the cumulative period from inception to December 30, 1999

(Unaudited)



|                                                                      |                                                                                             | Three Months Ended        December 31 | Cumulative  
|--------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ------------------------------------- | ------------
|                                                                      |                                                                                             | Period from                          
|                                                                      |                                                                                             | Inception to                         
|                                                                      |                                                                                             |                                       | December 31,
|                                                                      |                                                                                             |                                       | 1999        
|                                                                      |                                                                                             |                                       |             
|Supplemental disclosures:                                             |                                                                                             |                                       |             
|                                                                      | Cash paid during the period for interest                                                    | $                                     | 1,585       
|                                                                      |                                                                                             |                                       |             
|Supplemental disclosure
of non-cash investing & financing activities: |                                                                                             |                                       |             
|                                                                      | Fair value of assets acquired, net of cash acquired                                         | $                                     | -           
|                                                                      | Less  liabilities assumed                                                                  |                                       | -           
|                                                                      | Less        issuance of common stock                                                       |                                       | -           
|                                                                      | Net cash paid                                                                               | $                                     | -           
|                                                                      | Warrant dividend                                                                            |                                       |             
|                                                                      | Issuance of common stock/warrants for services and to reduce short-term         liabilities |                                       | -           
|                                                                      | Purchase       of equipment                                                                 |                                       | -           
|                                                                      | Purchase of officer stock subscription receivable                                           |                                       | -           
|                                                                      | Issuance of common stock for licensing and  Technology rights                               | $                                     | -           



|See accompanying notes to consolidated financial statementsParacelsian, Inc. and Subsidiary(A Development Stage Company)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                   December 31, 1999             (Unaudited)      1.	BASIS OF PRESENTATION:      The consolidated financial statements included herein         have been prepared in accordance with
generally accepted accounting principles         without audit, pursuant to the rules and regulations of the Securities         and Exchange Commission applicable to quarterly reporting on Form 10-QSB         and reflect, in the opinion of the Company,
all adjustments necessary         to present fairly the financial position and results of operations for         Paracelsian, Inc. and its consolidated subsidiary. All such adjustments         are of a normal and recurring nature. Certain information and
footnote         disclosures normally included in financial statements, prepared in accordance         with generally accepted accounting principles, have been condensed of         omitted as permitted by such regulations. These consolidated financial
    statements and related notes should be read in conjunction with the consolidated         financial statements and related notes included in the Companys         Annual Report on Form 10-KSB for the fiscal year ended September 30, 1999.      ORGANIZATION, BUSINESS, AND RISK FACTORS:Organization and Business             Paracelsian, Inc. (the "Company") is a bio-science and technology         company that
utilizes its proprietary screening technology to identify         novel therapeutic compounds from herbal and other botanical sources and         to define and/or confirm the biological mechanisms through which traditional         herbs and other
botanicals provide the therapeutic or functional benefits         suggested by their traditional use. This technology has been developed         by the Company to identify potential products that inhibit the biological         signals generated by
targeted cells that result in controlled or uncontrolled         growth and division. The Companys screening technology evaluates         the effects of herbal and other botanical products on intracellular signals         referred to as "Signal
Transduction Technology."      Cell division is one of the basic steps in biology for         normal growth of tissues to support life. The Companys technology         enables researchers to observe signal transduction and measure the effects
of chemicals contained in synthetic or natural compounds, and chemicals         occurring in nature such as herbs and combinations of herbal extracts,         on cell division. In the course of these observations, the Company can         distinguish the
effects of such chemicals on targeted cells, thereby screening         compounds to identify those with promising favorable therapeutic effects.         ("This proprietary technology, including the components, methods,         procedures and know-how
employed in this screening process, is referred         to herein as the "Screening Technology")            In October 1994, Pacific Liaisons (Pacific), a partnership         engaged in identifying and acquiring biologically active drugs, natural         products and foods from Eastern Asia, merged with
a wholly-owned subsidiary         of the Company and the Company now maintains a large library of natural         medicinal extracts. These extracts are being processed with the Companys         screening technology to identify potential candidates
for drug or dietary         supplement development. The Company also has access to the informational         database related to the medicinal extracts, which contains, among other         things, a history of the usage of each extract.      Development Stage Company and Risk Factors             The Company is considered to be a development stage company as defined         in Statement of Financial Accounting Standards No. 7, "Accounting         and
Reporting by Development Stage Enterprises." Since inception,         the Company has been primarily engaged in research, product engineering         and raising capital.      The Company, as a development stage enterprise, has yet         to generate significant revenues and has no assurance of substantial future         revenues. The Company is subject to a number of risks that may affect
its ability to become an operating enterprise or impact its ability to         remain in existence, including risks related to successful development         and marketing of its products, patent protection of proprietary technology,         government
regulation, competition from substitute products (including         technologies that may not yet have been developed), dependence on key         employees and the need to obtain additional funds that may not be available         to it.            As shown in the accompanying financial statements, the         Company incurred a net loss of approximately $359,000 for the three months         ended December 31, 1999 and had a working capital
deficit of approximately         $414,000 at December 31, 1999. Management believes that revenues from         its BioFIT program, its Ah-Immunoassay, its Internet project and the sales         of its inventory will be sufficient throughout the year to
enable the         Company to achieve positive cash flow during 2000. BioSignia, Inc., the         Companys largest shareholder, has advanced interim funds into 2000.         Management is currently seeking a capital infusion of at least $1 million
       to strengthen its working capital position and bridge its needs until         the revenue stream is sustained. Management believes that the combination         of additional capital combined with increased revenues will enable the         Company
to continue its operations.      3.	SIGNIFICANT ACCOUNTING POLICIES:      Consolidation             The consolidated financial statements of the Company include the accounts         of Paracelsian, Inc. and its wholly owned subsidiary ParaComm,
Inc. formerly         known as Para Acquisition Corp. All intercompany balances and transactions         have been eliminated.      Cash and Cash Equivalents             Cash equivalents consist of highly liquid investments with an original         maturity of three months or less. The Company had no cash equivalents         as of December 31, 1999.
      Research and Product Engineering             Company-sponsored research and product engineering expenditures         have been charged to expense as incurred. These costs consist primarily         of employee
salaries and direct laboratory costs. The cost of extracts         used in research and development activities is expensed as consumed.      Net Loss Per Share             Basic loss per share is computed by dividing the net         loss by the weighted-average number of common shares outstanding during         the period. The Companys
basic and diluted per share amounts are         the same since the assumed exercise of stock options and warrants are         anti-dilutive.      Patents and Trademarks             The Company has acquired or applied for certain patent         and trademark rights. Costs associated with the acquisition and application         for these rights have
been capitalized and are being amortized on the         straight-line method over the estimated legal life of the assets which         range from 15 to 17 years.      Equipment and Depreciation             Equipment is stated at cost and is depreciated over the estimated useful         lives of the assets using the straight-line method.      Use of Estimates      
       The preparation of the consolidated financial statements         in conformity with generally accepted accounting principles requires management         to make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosures of contingent assets and liabilities         at the date of the financial statements. Estimates also affect the reported         amounts of revenues and expenses during the reporting period. Actual results
  could differ from those estimates.                        ITEM 2.		Managements Discussion and Analysis of Financial         Condition and Results of Operations      Three months Ended December 31, 1999
as compared to the      Three months Ended December 31, 1998      As a development stage enterprise, the Company, since         inception, has been primarily engaged in research, product
engineering,         and capital formation. As such, the Company has not generated significant         revenues to date on a recurring basis.            The Company has now completed development of its BioFIT         (Bio Functional Integrity Tested) "functional" Quality assurance         program for herbal and
other complex natural products. This unique quality         assurance program is able to certify consistent bio-functionality of herbal         and other dietary supplements. This new "functional" approach         to quality assurance will
assist consumers in selecting herbs and other         botanical and complex natural products, including nutraceuticals, based         on their demonstrated biological activity, rather than relying, as in         the past, on a chemical analysis of their
principal constituents. Chemicals         analysis has not been demonstrated to be a consistent measure of functionality         for herbal products, and often presumed actives or marker compounds used         for standardization do not predict biological
activity. The BioFIT         certification ensures that products exhibit a high enough level of biological         activity in mechanisms relevant to the claimed product benefit, when compared         to products used in successful clinical trials,
to suggest that the product         will deliver on its benefit claims.            The Company filed a broad patent application covering         its unique approach to quality assurance in July of 1998. The patent application         is being prosecuted by
Kenyon & Kenyon of New York, one of the nations         most respected law firms specializing in intellectual property.            In July 1998, the Company entered into an agreement with         R.P. Scherer North America that establishes them as the exclusive marketing         and distribution agent for
the BioFIT certification program in the         dietary supplement and OTC market segments in North America. The agreement         provided for payments to the Company for development of assay systems,         for product certifications, for batch to
batch testing and for royalties         on the sale of BioFIT products. This agreement has now been modified         to limit R.P. Scherer exclusivity only to the softgel delivery system.         The Company will continue to receive royalties on the
sale of all BioFIT         certified products by R.P. Scherer and will continue to be paid for batch         to batch testing. However, the Company is now free to pursue arrangements         with all manufacturers selling other types of delivery
forms including         tablets, two part hard shells, foods and beverages, as well as with raw         material manufacturers. This dramatically increases the Companys         potential revenue and, in the case of finished goods manufacturers,
allows         the Company to receive royalties based on a higher selling price than         that at which its royalties from R.P. Scherer would have been based.            The Company has initiated testing for several raw material         suppliers and finished goods manufacturers. Revenues derived from testing         are increasing and the
Company expects that requests for testing will         continue to increase in the coming months. The Company is also in active         discussions with several sellers of finished dietary supplements and sellers         of raw materials and expects
BioFIT certified products on store shelves         later this year.            On July 20,1999 the Company signed a Development Agreement         with Kubota Corporation to further develop The Companys patented         Ah-IMMUNOASSAY for use in
the monitoring of municipal waste incinerators         in Japan. The Company signed a final Licensing Agreement with the Kubota         Corporation on January 18, 2000 for the sale of the Companys Ah-IMMUNOASSAY         in the Japanese market.
The Ah-IMMUNOASSAY is used to detect dioxin         contamination in the environment. The Licensing Agreement provides the         Company with licensing fees and a royalty on sales in the Japanese market.         In return, the Company provides
Kubota with an exclusive license to manufacture         and distribute the Ah-IMMUNOASSAY in Japan.      The Company is also actively involved in discussions with         private businesses in Belgium, Korea and with the Ministry of Health and         other government agencies in the Peoples
Republic of China regarding development         and implementation of the Ah-IMMUNOASSAY to monitor food, water and         soil, in addition to municipal waste incinerators. The Company expects         these discussions to be fruitful and result in
further applications for         its technology with associated revenues some time in the year 2000.            In 2000 the Company will complete discussions with two         leading health care agencies of the government of the Peoples Republic         of China. These discussions,
it is expected, will lead to a unique alliance         leading to the worlds most complete and unique Internet site for         information, services and products combining the wisdom of Traditional         Chinese Medicine with the latest cutting
edge Western nutritional science.      Results of Operation             The Companys net loss for the first quarter
of fiscal 2000 was         approximately $359,000 compared to $503,000 in the first quarter of fiscal         1999. Revenues for the three month period were $77,000 in 1999 as compared         to $12,000 in 1998. The increase in revenues is primarily due
to $50,000         from the Kubota Corporation related to the Ah-IMMUNOASSAY technology.         These revenues are not representative of the Companys future plans         and expectations. Operating expenses for the three month period were
approximately         $453,000 compared to $515,000 for the first fiscal quarter of the prior         year. The decrease of $63,000 is due to managements commitment to         utilize its resources in the most efficient manner. The management team
      is continuing to operate with modest staff levels and has been focusing         on continuing to conserve resources, and generating revenues.      Liquidity & Capital Resources             As of December 31, 1999, the Company had cash of $7,800 and a net working         capital deficit of $414,000. Management believes that it can continue         to raise additional
capital through private placements, to support its         operations until such time as the revenue stream is sufficient to realize         positive cash flow in 2000. The Company is actively pursuing additional         capital of $1 million to $1.5
million to provide resources to strengthen         its working capital position until sufficient revenues are achieved. Management         believes that the additional financings coupled with its expected revenues         from the BioFITTM program,
the Ah-Immunoassay, the Internet Program         and the sale of its inventory of Andrographolide will enable the Company,         (1) to further increase its operating efficiency; and (2) to continue         its operations into the future.      Management and The Board             On January 31, 2000 the Company announced that Dr. T. Colin Campbell         was named Chairman, CEO & President. Dr. Campbell replaces Bernard         M. Landes, who served as
Chairman, CEO and President the previous two         years. Dr. Campbell served on the Board of Directors of the Company for         several years prior to taking this new position. On February 8, 2000 the         Company announced that Dr. Max Shaibe has
accepted an invitation to serve         on the Companys Board. Dr. Shaibes appointment to the Board         lasts until the annual shareholders meeting on June 12, 2000, when         he will stand for election. Dr. Shaibes
background includes significant         positions in academia, government and the private sector. Perhaps most         noteworthy, Dr. Shaibe is a co-inventor of the Internet. In addition Gary         G. Chabot has joined the Company as the Chief
Financial Officer.      The management of the Company will be focusing their efforts on producing         ongoing revenues and controlling expenses.      PART II		OTHER INFORMATION      Item 1.		Legal Proceedings      Hadyk, et al. V. John G. Babish, et al.             In addition to routine litigation that is incidental to its business,         the Company is a party to the following litigation:      Hadyk, et al.
V. John G. Babish,         et al.: This case was commenced in New York State Supreme Court (Onondaga         County) in June 1993 by certain persons, individually and doing business         as In Vitro Bioanalytic Systems, against the Company, Dr. John G. Babish,         a former
officer and director of the Company, and Edward Heslop, a founding         shareholder of the Company, primarily as an action for money damages and         injunctive relief against the Company for alleged misappropriation of         proprietary
information and unfair competition. The plaintiffs allege,         among other things, that in 1990, prior to the Companys incorporation,         a partnership has been formed with Messrs. Babish and Heslop to commercialize         products that the
Company was developing. Damages, an accounting and an         injunction are being sought against the Company. By decision dated September         14, 1994, the Court dismissed certain of the plaintiffs claims against         the Company while
permitting a claim alleging unfair competition to proceed.         Discovery has been temporarily stayed pending resolution of a motion for         summary judgment brought by certain of the Companys co-defendants.         That motion, if
successful, will fully resolve the case in favor of the         Company. The Company believes that the suit against it is without merit         and intends to defend the case vigorously.            Item 6(a)	  Exhibits      None      Item 6(b)	  Reports on Form 8-K      None      SIGNATURES      In accordance with Section 13 or 15         (d) of the Securities and Exchange Act, the registrant caused this report         to be signed on its behalf by the undersigned, thereunto
duly authorized.      Date	March 3, 2000      PARACELSIAN, INC.       By:/s/         T. COLIN CAMPBELL         -------------------------------------         T. Colin Campbell         President,         Chief Executive Officer            By/s/         GARY G. CHABOT         ---------------------------------         Gary G. Chabot         Principal Accounting Officer
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