|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 March 31, 2000.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                          
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|(State or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | (I.R.S. Employer Identification No.)
|222 Langmuir Laboratories, Cornell Technology Park,           Ithaca, New York                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 14850                               
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|(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 20,838,154             shares of Common Stock outstanding
at May 1, 2000.



|(1)        Paracelsian, Inc. and Subsidiary        Index                                                                                                                                             
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|                                                                                                                                                                                                     
|PART I.  FINANCIAL INFORMATION        Item 1.	Financial Statements                                                                                                                                  
|                                                                                                                                                                                                     
|Consolidated Balance         Sheet as of March 31, 2000 (Unaudited)                                                                                                                                  
|                                                                                                                                                                                                     
|Consolidated         Statements of Operations for the three months
and six months ended March         31, 2000        and 1999 and the cumulative period from inception to March 31, 2000 (Unaudited)
|                                                                                                                                                                                                     
|Consolidated         Statements of Cash Flows for the six months ended March 31, 2000
and 1999 and the cumulative period from inception to March 31, 2000 (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                                                                                                                                                                                           



|(2)Paracelsian, Inc. and Subsidiary(A Development Stage Company)          Consolidated Balance Sheet          March 31, 2000          (Unaudited)
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|Current Assets:                                                                                                                                  
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|Equipment, net                                                                                                                                   
|                                                                                                                                                 
|Other Assets:                                                                                                                                    
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|Current Liabilities:                                                                                                                             
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|Long-term Liabilities:                                                                                                                           
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|Commitments and Contigency                                                                                                                       
|                                                                                                                                                 
|Stockholders Equity                                                                                                                             
|                                                                                                                                                 
|                                                                                                                                                 
|Additional paid-in-capital                                                                                                                       
|Deficit accumulated during the development stage                                                                                                 
|Treasury stock, at cost; 265,478                                                                                                                 
|                                                                                                                                                 
|                                                                                                                                                 
|See accompanying notes to consolidated financial statements.                                                                                     





|(3)          Paracelsian, Inc. and Subsidiary        (A
Development Stage Company)          Consolidated Statements of Operations          For the three months and six months ended March, 2000 and 1999,          And the cumulative period from inception to March 31, 2000          (Unaudited)
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|                                                                                                                                                                                                                                                                                                   
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|                                                                                                                                                                                                                                                                                                   
|Revenues                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                   
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|                                                                                                                                                                                                                                                                                                   
|Operating expenses:                                                                                                                                                                                                                                                                                
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|                                                                                                                                                                                                                                                                                                   
|Interest income, net                                                                                                                                                                                                                                                                               
|Gain on sale of assets                                                                                                                                                                                                                                                                             
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|See
accompanying           notes to consolidated financial statements.                                                                                                                                                                                                                             

(4)

Paracelsian, Inc. and Subsidiary

(A Development Stage Company)  Consolidated Statements of Cash Flows  For the six months ended March 31, 2000 and 1999,  And the cumulative period from inception to
March 31, 2000  (Unaudited)

|                                                                              |                                                                                             | Six           Months Ended           March 31, | Cumulative           Period from Inception to March 31,                 
|----------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------------------------------------------------
|                                                                              |                                                                                             |                                                |                                                                         
|Cash flows         from operating activities:                                 |                                                                                             | 2000                                           | 1999                                                                    
|                                                                              |                                                                                             |                                                |                                                                         
|                                                                              | Net loss                                                                                    | $                                              | (696,423)                                                               
|                                                                              | Adjustments         to
reconcile net loss to net cash used in operating activities          |                                                |                                                                         
|                                                                              |                                                                                             | Gain on         the sale of assets             |                                                                         
|                                                                              |                                                                                             | Non-cash         compensation expense          |                                                                         
|                                                                              |                                                                                             | Other non-cash         expenses                |                                                                         
|                                                                              |                                                                                             | Depreciation         and amortization          |                                                                         
|                                                                              |                                                                                             | Changes         in assets and liabilities      |                                                                         
|                                                                              |                                                                                             |                                                |                                                                         
|                                                                              |                                                                                             |                                                | (Increase)         in inventory                                         
|                                                                              |                                                                                             |                                                | (Increase)         decrease in prepaid expenses and other current assets
|                                                                              |                                                                                             |                                                | Increase         in accounts payable                                    
|                                                                              |                                                                                             |                                                | (Decrease)         in deferred revenue                                  
|                                                                              |                                                                                             |                                                | (Decrease)         increase in accrued expenses                         
|                                                                              |                                                                                             |                                                |                                                                         
|                                                                              |                                                                                             |                                                | Net cash         used in operating activities                           
|                                                                              |                                                                                             |                                                |                                                                         
|Cash flows         from investing activities:                                 |                                                                                             |                                                |                                                                         
|                                                                              | Purchase         of equipment                                                               |                                                | -                                                                       
|                                                                              | Proceeds         from sale of equipment                                                     |                                                | -                                                                       
|                                                                              | Acquisition         of licensed technology                                                  |                                                | -                                                                       
|                                                                              | Acquisition         of patents and
trademarks                                               |                                                | -                                                                       
|                                                                              | Acquisition         of New Century Nutrition newsletter                                     |                                                | -                                                                       
|                                                                              | Acquisition         of option for East West Herbs, Ltd. and related acquisition costs       |                                                | -                                                                       
|                                                                              | Loan to         East West Herbs, Ltd.                                                       |                                                | -                                                                       
|                                                                              | Proceeds         from East West Herbs, Ltd.                                                 |                                                | -                                                                       
|                                                                              |                                                                                             |                                                |                                                                         
|                                                                              |                                                                                             |                                                | Net cash used         in investing activities                           
|                                                                              |                                                                                             |                                                |                                                                         
|(5)                                                                           |                                                                                             |                                                |                                                                         
|                                                                              |                                                                                             |                                                |                                                                         
|Cash flows         from financing activities:                                 |                                                                                             |                                                |                                                                         
|                                                                              | Sale         of common stock, initial public offering, net of costs                         |                                                | -                                                                       
|                                                                              | Sale of common         and
preferred stock, net of costs                                    |                                                | -                                                                       
|                                                                              | Proceeds from         the exercise of warrants                                              |                                                | -                                                                       
|                                                                              | Proceeds from         the exercise of options                                               |                                                | -                                                                       
|                                                                              | Purchase         of treasury stock                                                          |                                                | -                                                                       
|                                                                              | Cost of warrant         dividend                                                            |                                                | -                                                                       
|                                                                              | Payment on         equipment contract                                                       |                                                | -                                                                       
|                                                                              | Payment on         capital lease obligations                                                |                                                | (5,782)                                                                 
|                                                                              | (Decrease)         increase in notes payable                                                |                                                | 541,491                                                                 
|                                                                              |                                                                                             |                                                |                                                                         
|                                                                              |                                                                                             |                                                | Net cash         provided by financing activities                       
|                                                                              |                                                                                             |                                                |                                                                         
|Net increase         (decrease) in cash and cash equivalents                  |                                                                                             | (31,742)                                       | (141,504)                                                               
|Cash and cash
        equivalents, beginning of period                        |                                                                                             | (72,754)                                       | 250,542                                                                 
|                                                                              |                                                                                             |                                                |                                                                         
|Cash and cash         equivalents, end of
period                              |                                                                                             | 41,012                                         | $109,038                                                                
|                                                                              |                                                                                             |                                                |                                                                         
|                                                                              |                                                                                             |                                                |                                                                         
|Supplemental
    disclosures:                                                 |                                                                                             |                                                |                                                                         
|                                                                              | Cash paid during         the period for interest                                            | $                                              | 3,421                                                                   
|                                                                              |                                                                                             |                                                |                                                                         
|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                                                               |                                                | -                                                                       
|                                                                              | Issuance of         common stock for licensing and Technology rights                        |                                                | -                                                                       
|                                                                              |                                                                                             |                                                | -                                                                       
|See accompanying
 notes to consolidated financial statements                 









|(6)Paracelsian, Inc. and Subsidiary(A Development Stage Company)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2000(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 or           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.        2. 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.        (7)        As shown in the accompanying financial statements,           the Company incurred a net loss of approximately $696,000 for the six           months ended March
31, 2000 and had a working capital deficit of approximately           $763,000 at March 31, 2000. Management believes that revenues from its           Ah-IMMUNOASSAYTM, its BioFITTM program, 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 $3.9 million. These resources will be used to; 1) retire short           term financing used to provide support for operational and development           costs, 2) increase production of
Ah-IMMUNOASSAYTM Kits, 3) establish           e-commerce websites for the sale of Traditional Chinese Medicines, 4)           develop our BioFITTM Program in China and 5) provide working capital.           Management believes that the
combination of additional capital combined           with increased revenues will enable the Company to continue its operations.        Stock Options        Stock options were granted           in March of 2000 to existing employees of the
Company. The grants were           equal in value to 10% of their salary, exercisable at market prices.        Stock Issuances        On February 25, 2000           a prior private placement was completed resulting in the
issuance of           112,778 shares of Common Stock for no additional consideration.        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 March
31, 2000.        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 lives 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 Estimate
s                 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.        (8)        ITEM 2.		Managements Discussion and Analysis of           Financial Condition and Results of Operations        Six months Ended March 31,
2000 as compared to the        Six months Ended March 31, 1999        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.        On July 20,1999 the Company signed a Development Agreement with Kubota           Corporation, a Japanese Corporation, for the sale of the Companys           patented Ah-IMMUNOASSAYTM for use in the monitoring of municipal
  waste incinerators in Japan for dioxin contamination.        The Company signed a final Licensing Agreement on January 21, 2000           with Kubota Corporation for the sale of Paracelsians Ah-IMMUNOASSAYTM           in the Japanese market and began manufacturing and selling kits to
Kubota.           This 'bioassay' based kit is rugged, user-friendly, portable, analytically           sensitive, and low cost when compared with existing methodology. The           agreement with Kubota will provide revenues from the sale of kits and
      royalties.        On April 20, 2000 Paracelsian signed a Letter of Intent with a company           in China to cooperate in the development of a facility for the high           volume manufacture of Paracelsians Ah-IMMUNOASSAYTM Kits.
The Letter of Intent with Beijing Health-Way Management Company is a           significant step in Paracelsians strategy to establish low cost           manufacturing capability in China that is sufficient for meeting potentially           high
demand from Kubota Corporation in Japan and from other markets           in Asia and Europe. Health-Way Management Company will engage in the           construction of the manufacturing facility for the Ah-IMMUNOASSAYTM           Kits, that will also
provide for research and development of methodologies           of a similar nature, in cooperation with Paracelsian.        "The near-term market for dioxin testing in Japan is $400-$600 million           annually, and Kubota believes that a screening method such as Paracelsians           Ah-IMMUNOASSAYTM has the potential to capture 25% of that
market           in two years if such screening detection methods are officially approved           for use," said Mr. Yasuo Kobayashi, Kubotas Deputy Manager of           Technology Development. "Since announcing our license agreement with
 Paracelsian, more than 50 companies have contacted Kubota regarding           their interest in Paracelsians technology  we are very pleased           to be partnering with Paracelsian in the commercialization of this technology,"
concluded Mr. Kobayashi.        The Company also signed a contract with Government & Export Sales           Specialists (GESS) on October 18, 1999, to provide additional potential           business partners for the Ah-IMMUNOASSAYTM kits. GESS is a consulting
      firm engaged in the transfer of environmental technology throughout           the world. They have substantial experience and a deep network of personal           and business contacts in the environmental and supplement markets.        In addition to Kubota, there are other parties now expressing an interest           in purchasing and/or marketing this technology. These include groups           in China (potentially a very large market), South Korea, Europe (also
  a large market), and California. In addition, we are exploring with           the U.S. Embassy and Vietnamese representatives the possibility of surveying           the relatively serious environmental problem incurred by the Agent Orange
experience during the Vietnam War.        In Europe, we have already signed a contract with a company in Belgium,           Cypress Diagnostics, to explore application of our kit to the analysis           of various kinds of food samples. This company will market our product
   to all European Community countries plus other European countries and           have estimated a potential need for 16,000 tests per month (approximately           1500 kits per month, or $750,000 per month), if the preliminary research           on
this kit is satisfactory. It also should be noted that the Belgian           group has agreed to collaborate with the Japanese group in sharing their           research data on sample analyses.        In July 1998, the Company entered into an agreement with R. P. Scherer           North America that establishes them as the marketing and distribution           agent for the BioFITTM certification program in the dietary supplement
      and Over the Counter market segments in North America. R. P. Scherer           is the worlds top maker of softgels used to encase drugs and vitamins.           The firm has operations in the U.S. and 11 other countries. 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 BioFITTM products.        (9)        On January 6, 2000 the Company signed a License and Service Agreement           making ExtractsPlus the first supplier of raw materials to offer BioFITTM
"Certified Bioactive" herbal products. ExtractsPlus supplies the finest           quality products from worldwide markets to North American pharmaceutical           and nutritional supplement manufacturers. With technical, educational,           sales and
delivery personnel, ExtractsPlus is a full service distributor.           Under the Agreement, Paracelsian will provide testing services to ExtractsPlus           both for certification of existing products and the development of new           products.
ExtractsPlus will use the Companys BioFITTM "Certified           Bioactive" logo in conjunction with the marketing and sale of the ExtractsPlus           line of herbal products. ExtractsPlus will pay the Company an annual           marketing
fee and spend an amount equal to or greater than that fee           to promote the BioFITTM program through its own marketing programs.           In addition, Paracelsian will receive payment for certification and           batch-to-batch testing,
along with a royalty on the sale of products           bearing the BioFITTM logo.        Representatives from Paracelsian visited China from April 12th through           the 18th. Dr. T. Colin Campbell, President and CEO of Paracelsian has           worked with key people and groups in China for the last 20 years. A
group was formed to further develop websites for the sale of Traditional           Chinese Medicines. Representatives from Paracelsian and from China form           the group. A final business structure is being developed and a complete
agreement is expected by the end of May 2000.        Results of Operations                 The Companys net loss for the second quarter of           fiscal 2000 was approximately $337,000 compared to $476,000 in the second
quarter of fiscal 1999. Revenues for the three month period were $91,000           in 2000 as compared to $109,000 in 1999. These revenues are not representative           of the Companys future plans and expectations. Operating expenses
for the three month period were approximately $429,000 compared to $585,000           for the first fiscal quarter of the prior year. The decrease of $156,000           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 March 31, 2000, the Company had cash of $41,012 and a net working           capital deficit of $763,000. 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 now seeking financing of           $3.9 million.
These resources will be used to; 1) retire short term           financing used to provide support for operational and development costs,           2) increase production of Ah-IMMUNOASSAYTM Kits, 3) establish e-commerce           websites for the
sale of Traditional Chinese Medicines, 4) develop our           BioFITTM Program in China and 5) provide working capital. Management           believes that the additional financings coupled with its expected revenues           from the
Ah-IMMUNOASSAYTM, the BioFITTM program, 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 April 28, 2000 the Company announced that Noriyoshi Inoue has accepted           an invitation to serve on the Companys Board. Mr. Inoues           appointment
to the Board lasts until the annual shareholders meeting           on June 15, 2000, when he will stand for election. Mr. Inoue is currently           a consultant. Prior to that he was Deputy General Manager and International           Marketing Manager
at the Kubota Corporation.        The management of the Company will be focusing their efforts on producing           ongoing revenues and controlling expenses.        Employee Agreements        On January 24, 2000 an Employment Agreement was signed
between Paracelsian,           Inc. and T. Colin Campbell as Chief Executive Officer. The initial term           of employment is for one year and on each anniversary the term shall           automatically be extended for an additional one-year period
unless written           notice from the Company or the Officer is received 45 days prior to           the anniversary date. Compensation is set within the Agreement and the           Officer is granted the right to purchase shares of Common Stock based
        on certain terms.        On February 1, 2000 a similar Employment Agreement was signed between           Paracelsian, Inc. and Gary G. Chabot as Chief Financial Officer. Compensation           is set within the Agreement and the Officer is granted the right to
     purchase shares of Common Stock based on certain terms related to continuous           service.        Short-Term Advances        BioSignia, Inc., the Company's largest shareholder, has advanced interim           funds to the Company for working capital purposes. The Company agrees           to repay the funds, together with
interest at an annual rate of 10%,           at the earlier of 30 days from the date of the advance or the receipt           by the Company of proceeds from the sale of stock. Through March 31,           2000 $562,154 has been advanced, including accrued
interest.        Forward Looking Statements        Certain statements in this Form 10-Q "Management's Discussion and Analysis           of Financial Condition and Results of Operations" constitute "forward           looking statements" within
the meaning of the Private Securities Litigation           Reform act of 1995. Such forward looking statements involve known and           unknown risks, uncertainties and other factors which may cause the actual           results, performance or
achievements of the Company to be materially           different from any future results, performance or achievements expressed           or implied by such forward looking statements. Such factors include,           among others, the following: success
of operating initiative, advertising           and promotional efforts, acceptance of new product offerings, availability,           changes in business strategy or development plan, availability and terms           of capital, labor and employee benefit
costs, and other factors specifically           referred to in this 10-Q.        (10)        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.        (12)        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	May 12, 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(11)
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