|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 June 30, 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 22,169,161           shares of Common Stock
outstanding at August 1, 2000.



|Paracelsian, Inc. and Subsidiary
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|PART I.  FINANCIAL INFORMATION        Item 1.	Financial Statements                                                                                                                                  
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|Consolidated         Balance Sheet as of June 30, 2000
(Unaudited)                                                                                                                                   
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|Consolidated Statements         of Operations for the three months and nine months ended June 30, 2000                 and 1999 and the cumulative period from inception to June 30, 2000 (Unaudited)
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|Consolidated Statements         of Cash
Flows for the nine months ended June 30, 2000 and 1999        and the cumulative period from inception to June 30, 2000 (Unaudited)                          
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|Notes to Consolidated         Financial Statements (Unaudited)                                                                                                                                       
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|Item. 2  Managements         Discussion and Analysis of
Financial Condition and Results of Operations                                                                                              
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|PART II  OTHER         INFORMATION                                                                                                                                                                  
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|Item 1  Legal
Proceedings                                                                                                                                                                           
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|Item 6  Exhibits         and Reports of Form 8-K                                                                                                                                                    
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|Signatures                                                                                                                                                                                           



|Paracelsian, Inc. and Subsidiary (A Development Stage Company)
Consolidated Balance Sheet          June 30, 2000          (Unaudited)
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|Current Assets:                                                                                                                      
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|Equipment, net                                                                                                                       
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|Other Assets:                                                                                                                        
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|Current Liabilities:                                                                                                                 
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|Long-term Liabilities:                                                                                                               
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|Stockholders Equity (Deficit)                                                                                                       
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|Additional paid-in-capital                                                                                                           
|Deficit accumulated during the development stage                                                                                     
|Treasury stock, at cost; 265,478                                                                                                     
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|See accompanying notes to consolidated financial statements.                                                                         





|Paracelsian, Inc. and Subsidiary(A Development Stage Company
)          Consolidated Statements of Operations          For the three months and nine months ended June 30, 2000 and 1999,          And the cumulative period from inception to June 30, 2000          (Unaudited)
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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                                                                                                                                                                                                            



|Paracelsian, Inc. and Subsidiary(A Development Stage Company)           Consolidated Statements of Operations          For the three months and nine months ended June 30, 2000 and 1999,          And the cumulative period from inception
to June 30, 2000          (Unaudited)
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|Cash flows         from operating activities:                                                                                                                                                                                                                                    
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|Cash flows         from investing activities:                                                                                                                                                                                                                                    
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|Cash flows         from financing activities:                                 |                                                                                      |          |                                                   |         
|----------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | -------- | ------------------------------------------------- | --------
|                                                                              | Sale of common         stock, initial public offering, net of costs                  |          | -                                                 | -       
|                                                                              | Sale of common
      and preferred stock, net of costs                               |          | -                                                 | 745,980 
|                                                                              | Proceeds from         the exercise of warrants                                       |          | -                                                 | -       
|                                                                              | Proceeds from         the exercise of options                                        |          | -                                                 | 31,400  
|                                                                              | Purchase of         treasury stock                                                   |          | -                                                 | -       
|                                                                              | Cost of warrant         dividend                                                     |          | -                                                 | -       
|                                                                              | Increase in
equipment contract                                                       |          | -                                                 | -       
|                                                                              | Conversion         of debt to common stock                                           |          | 500,000                                           | -       
|                                                                              | Payment on         capital lease obligations                                         |          | (7,674)                                           | (6,651) 
|                                                                              | (Decrease)         increase in notes payable                                         |          | 280,673                                           | (41,640)
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|                                                                              |                                                                                      |          | Net cash         provided by financing activities |         
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|Net increase         (decrease) in cash and cash equivalents                  |                                                                                      | (70,593) | (141,223)                                         | 2,161   
|Cash and cash         equivalents, beginning of period                        |                                                                                      | (72,754) | 250,542                                           | -       
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|Cash and cash         equivalents, end of period                              |                                                                                      | 2,161    | $109,319                                          | 2,161   
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|Supplemental         disclosures:                                             |                                                                                      |          |                                                   |         
|                                                                              | Cash paid during         the period for interest                                     | $        | 4,599                                             | 4,189   
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|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 |          | -                                                 | 270,617 
|                                                                              | Purchase of         equipment                                                        |          | -                                                 | -       
|                                                                              | Issuance of         common stock for licensing and Technology rights                 |          | -                                                 | -       
|                                                                              |                                                                                      |          | -                                                 | -       
|See accompanying         notes to consolidated financial statements          



|Paracelsian, Inc. and Subsidiary         (A Development           Stage Company)        NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS           June 30, 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.         As shown           in the accompanying financial statements, the Company incurred a net           loss of approximately $1,242,000 for the nine months ended June 30,
2000 and had a working capital deficit of approximately $682,000 at           June 30, 2000. Management believes that revenues from its Ah-IMMUNOASSAY,           its BioFIT program, 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. On August 9, 2000 the Company received           an equity
investment of $500,000 in a private placement. The Company           also issued warrants that could result in additional investment of $1.5           million by December 31, 2000. Management believes that the combination           of additional capital
combined with increased revenues will enable the           Company to continue its operations.        ITEM           2.		Management's Discussion and Analysis of Financial Condition           and Results of Operations           Nine months ended June 30,
2000 as compared to the           Nine months ended June 30, 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-IMMUNOASSAY
           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-IMMUNOASSAY 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-IMMUNOASSAY 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-IMMUNOASSAY Kits, that will also provide for research and development           of methodologies of a similar nature, in cooperation with Paracelsian.        On June 15, 2000 The           Company announced that in accordance with the License Agreement, Kubota           agreed to pay the $150,000 License Fee. This payment signifies Kubota's
        acceptance of the Ah-IMMUNOASSAY Kit. Kubota and Paracelsian will           now focus their efforts to market, sell and distribute the kit throughout           Japan. On June 17, 2000 Kubota placed an initial order for 120 Ah-
Immunoassay           Kits.        Since announcing the           license agreement with Paracelsian, more than 50 companies have contacted           Kubota regarding their interest in Paracelsian's technology.
        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-IMMUNOASSAY 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 the United States,
        Israel, China (potentially a very large market), South Korea, and Europe           (also a large market). 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 BioFIT
 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 BioFIT products. On
January           6, 2000 the Company signed a License and Service Agreement making ExtractsPlus           the first supplier of raw materials to offer BioFIT "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 BioFIT "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
BioFIT 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 BioFIT logo.        Results           of Operations        The Company's           net loss for the third
quarter of fiscal 2000 was approximately $545,000           compared to $552,000 in the third quarter of fiscal 1999. Revenues for           the three-month period were $196,000 in 2000 as compared to $52,000           in 1999. The $144,000 increase in
revenues is attributable to the sales           to Kubota for the Ah-IMMUNOASSAY Kits. Operating expenses for           the three-month period were approximately $741,000 compared to $612,000           for the second fiscal quarter of the prior
year. The increase of $129,000           is due to a one-time charge to income for the extraction and cleanup           procedures for use with an Immunoassay. The management team is continuing           to operate with modest staff levels and has been
focusing on continuing           to conserve resources, increasing its customer base and generating revenues.        Liquidity & Capital           Resources        As of June 30, 2000,           the Company had cash of $2,161 and a
net working capital deficit of           $682,000. 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. On August 9, 2000 the Company received an equity investment           of $500,000 in a private placement transaction. In addition to the sale           of common stock, Paracelsian issued warrants in the
transaction that           could result in additional investment of $1.5 million by December 31           of this year if the warrants are exercised in full. These resources           will be used to increase the customer base along with the production
       of the Ah-IMMUNOASSAY Kits and provide working capital. Management           believes that the additional financing coupled with its expected revenues           from the Ah-IMMUNOASSAY, the BioFIT program, and the sale
of its inventory of Andrographolide will enable the Company to increase           sales, to further improve its operating efficiency and to continue its           operations into the future.        Management and The           Board        The management of the           Company will be focusing their efforts on
growing its customer base,           producing ongoing revenues and controlling expenses.        Redeemable Common           Stock Purchase Warrants        There are 1,736,870           Redeemable Common Stock
Purchase Warrants outstanding. On June 19, 2000           the Board of Directors approved to lower the exercise price on the outstanding           warrants to $.50 per share. The unexercised warrants will expire on           September 7, 2000.        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. On June 19, 2000, the Board of Directors agreed           to accept BioSignia's offer to convert $500,000 of debt into common           stock of Paracelsian at $.40 per share. Through June 30, 2000
$324,994           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.        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	Aug 14, 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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