SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB



(Mark one)

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934.

For the period ended December 31, 1998.

[ ]  Transition  Report  Pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934.

For the transition period from __ to__.

Commission File Number:                                                  0-16128


                              TUTOGEN MEDICAL, INC.
             (Exact name of registrant as specified in its charter)

Florida                                                           59-3100165
(State or other Jurisdiction of                               (I.R.S. Employer
Incorporation or Organization)                               Identification No.)


1719 Route 10, Suite 314, Parsippany, New Jersey                        07054
(Address of Principal Executive Offices)                              (Zip Code)


Registrant's telephone number, including area code:               (973) 359-8444


Securities registered pursuant to Section 12(b) of the Act:                 None


Securities registered pursuant to Section 12(g) of the Act:


     Common Stock, par value $.01
           (Title of Class)          (Name of Each Exchange on Which Registered)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  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__.

As of  February  1, 1999 there  were  outstanding  10,658,214  shares of Tutogen
Medical, Inc. Common Stock, par value $0.01.



<PAGE>


                     TUTOGEN MEDICAL, INC. AND SUBSIDIARIES

                                      INDEX


PART I.             Financial Information.

        ITEM 1.     Financial Statements.

                    Consolidated Balance Sheets - December 31, 1998            1
                    and September 30, 1998.

                    Consolidated Statements of Operations for                  2
                    the three  months  ended  December  31,
                    1998 and 1997.

                    Consolidated Statements of Cash Flows for                  3
                    the three  months  ended  December  31,
                    1998 and 1997.

                    Notes to Consolidated Financial Statements.                4

        ITEM 2.     Management's Discussion and Analysis of Financial          6
                    Condition and Results of Operations.

PART II.            Other Information.


        ITEM 6.     Exhibits and Reports on Form 8-K                           8

SIGNATURES                                                                     9

<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements.



                     TUTOGEN MEDICAL, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (in thousands)


                                                     (unaudited)    (audited)
                                                     December 31,  September 30,
                                                        1998           1998
                                                     -----------   ------------
ASSETS

Current Assets
    Cash and cash equivalents                          $   515       $   357
    Accounts receivable                                  1,308         1,685
    Inventories                                          4,471         4,435
    Other current assets                                   221           173
                                                       -------       -------
                                                         6,515         6,650

Property, plant and equipment, net                       3,007         2,995

Intangible and other assets, net                           515           596
                                                       -------       -------
TOTAL ASSETS                                           $10,037       $10,241
                                                       =======       =======


LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
    Accounts payable                                   $ 1,062       $ 1,010
    Accrued interest                                        58           189
    Other accrued expenses                               1,029           953
    Revolving credit arrangements                          623           895
    Current portion of long-term debt                      234           162
                                                       -------       -------
                                                         3,006         3,209

Other Liabilities
    Long-term debt                                       3,553         3,644
    Other long-term obligations                             17            17

Shareholders' Equity                                     3,461         3,371
                                                       -------       -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY             $10,037       $10,241
                                                       =======       =======



See accompanying Notes to Consolidated Financial Statements.


                                        1


<PAGE>


                     TUTOGEN MEDICAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands except per share data)


                                                Three Months Ended December 31,
                                                -------------------------------
                                                    1998                1997
                                                -----------         -----------
OPERATING REVENUES
          Revenue                               $     2,503         $     1,942
          Cost of revenue                             1,450               1,162
                                                -----------         -----------

             Gross margin                             1,053                 780


OPERATING EXPENSES
         General and administrative                     453                 387
         Distribution and marketing                     412                 292
         Research and development                        81                  66
         Depreciation and amortization                  124                 183
                                                -----------         -----------
                                                      1,070                 928

Operating loss                                          (17)               (148)


Other income                                             (9)                (10)
Interest expense                                         90                  94
                                                -----------         -----------
                                                         81                  84

Net loss before income taxes                            (98)               (232)

Income taxes                                             --                  --
                                                -----------         -----------

NET LOSS                                        $       (98)        $      (232)
                                                ===========         ===========

Average common shares outstanding                 5,377,964           4,430,906
                                                ===========         ===========

Net loss per share                              $     (0.02)        $     (0.05)
                                                ===========         ===========



See accompanying Notes to Consolidated Financial Statements



                                        2

<PAGE>

                     TUTOGEN MEDICAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)


<TABLE>
<CAPTION>
                                                                  Three Months Ended December 31,
                                                                  -------------------------------
                                                                       1998            1997
                                                                      -------         -------
<S>                                                                   <C>             <C>     
Cash flows from operating activities
Net loss                                                              $   (98)        $  (232)
Adjustments to reconcile net loss to net cash
  used in operating activities:
  Depreciation and amortization                                           182             210
  Changes in assets and liabilities:
     Accounts receivable                                                  377             183
     Inventories                                                          (36)           (378)
     Other current assets                                                 (48)             27
     Accounts payable and accrued liabilities                             186            (678)
                                                                      -------         -------
        Net cash provided by (used) in operating activities               563            (868)

Cash flows from investing activities
   Purchase of property, plant and equipment                             (128)            (19)
                                                                      -------         -------
      Net cash used in investing activities                              (128)            (19)

Cash flows from financing activities
    Issuance of stock                                                      --           4,185
    Repayment of short-term borrowings                                     --          (3,937)
    (Repayment of) proceeds from revolving credit arrangements           (272)             78
    Repayment of long-term debt                                           (19)            (48)
                                                                      -------         -------
         Net cash provided by financing activities                       (291)            278

Effect of exchange rate changes on cash                                    14              73

Net decrease in cash and cash equivalents                                 158            (536)

Cash and cash equivalents at beginning of period                          357             777
                                                                      -------         -------

Cash and cash equivalents at end of period                            $   515         $   241
                                                                      =======         =======

---------------------------------------------------------------------------------------------

Supplemental cash flow disclosures
      Interest paid                                                   $    90         $    30
                                                                      =======         =======

Schedule of noncash financing activities:
      Issuance of common stock for interest
                                                                      $   189         $    --
                                                                      =======         =======
</TABLE>


See accompanying Notes to Consolidated Financial Statements


                                        3

<PAGE>


                     TUTOGEN MEDICAL, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 1998
                        (in thousands, except share data)

(1)  OPERATIONS AND ORGANIZATION

     Tutogen  Medical,  Inc.  along  with its  consolidated  subsidiaries  ("the
     Company")  processes,  manufactures  and  distributes  worldwide  specialty
     surgical  products  and  provides  tissue  processing  services  for neuro,
     orthopedic,    cardiovascular,    reconstructive   and   general   surgical
     applications.  The Company's core business is processing human donor tissue
     ("allografts") utilizing its patented Tutoplast(R) process for distribution
     to hospitals and surgeons.  At the Annual  Meeting of  shareholders  of the
     Company held on March 30, 1998,  the  Company's  shareholders  approved the
     proposal to change the name of the Company from "Biodynamics International,
     Inc." to "Tutogen Medical, Inc."


(2)  SIGNIFICANT ACCOUNTING POLICIES

     The accompanying unaudited consolidated financial statements of the Company
     and the unaudited results of operations and cash flows for the three months
     ended  December  31, 1998 and 1997 have been  prepared in  conformity  with
     generally accepted accounting  principles for interim financial  reporting.
     Accordingly,  they do not include all of the information and notes required
     by  generally  accepted   accounting   principles  for  complete  financial
     statements.  In the opinion of  management,  all  adjustments  necessary in
     order to make the  financial  statements  not  misleading  have been  made.
     Operating  results for the three  months  ended  December  31, 1998 are not
     necessarily  indicative of the results which may be expected for the fiscal
     year ending September 30, 1999. The interim financial  statements should be
     read in conjunction with the audited  consolidated  financial statements of
     the Company for the year ended September 30, 1998.


(3)  INVENTORIES

     Major classes of inventory at December 31, 1998 and September 30, 1998 were
     as follows:

                                                December 31,   September 30,
                                                   1998            1998

          Raw materials                           $ 1,601          $ 1,473
          Work in process                           2,641            2,729
          Finished goods                            1,186            1,249

          Less reserves for obsolescence             (957)          (1,016)
                                                  -------          -------
                                                  $ 4,471          $ 4,435
                                                  -------          -------

                                        4

<PAGE>



(4)  SUBSEQUENT EVENT

     On January 28, 1999, one of the Company's institutional investors converted
     its Convertible Debenture and accrued interest and expenses  (approximately
     $2,162)  into  4,600,507   shares  of  the  Company's   common  stock.   In
     consideration  of the  agreement  to  convert,  the  Company  issued to the
     investor  149,334 common shares as prepayment for one years interest on the
     Debenture  and agreed to amend its  outstanding  Stock  Purchase  Warrants,
     totaling 1,353,957,  by reducing the exercise price from $2.50 per share to
     $1.50 per share if such  warrants  are  exercised  prior to June 30,  2000,
     after which date such warrants shall revert to their initial terms.

     Subsequent to the quarter ended December 31, 1998, this same  institutional
     investor and a Director of the Company  purchased 300,000 Units and 100,000
     Units, respectively,  at $1.00 per Unit, each Unit consisting of one common
     share of the Company and one Common Stock Purchase Warrant,  expiring March
     31, 2000, at an exercise price of $1.50 per share.


                                       5


<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS (in thousands)

Results of Operations

Net Loss

Net loss for the three months  ended  December 31, 1998 totaled $98 or $0.02 per
share as compared to a net loss of $232 or $0.05 per share for the same period a
year ago. The decrease in net loss is directly  attributed  to a 29% increase in
revenues and an increase in gross margins from 40% to 42%.

Revenue and Cost of Revenue

Revenue for the three months ended  December  31, 1998  increased  29% to $2,503
from $1,942 for the  comparable  period.  The US operation more than doubled its
revenue to $907 from $375 for the same period last year. This is a direct result
of its  strategic  alliances  with the  Mentor  Corporation  and IOP,  Inc.  The
International  operation had a revenue increase in local currency of 9% from the
same period last year.

Gross margins for the three months ended December 31, 1998 increased to 42% from
40% for the comparable period last year. The increase is primarily  attributable
to higher throughputs at both the US and International operations.

General and Administrative

General and  administrative  expenses  increased 17% for the three months ending
December 31, 1998,  from the  comparable  period last year.  The increase is due
primarily to an increase in headcount and legal and consulting expenses.

Distribution and Marketing

Distribution  and marketing  expenses  increased 41% for the three months ending
December  31,  1998,  from the  comparable  period  last year.  The  increase is
primarily associated with the building of a direct sales force in Germany.

Research and Development

Research and  development  expenses  increased  23% for the three months  ending
December 31, 1998, from the comparable  period last year. The increase is due to
the expansion of the R & D effort in Germany.

Depreciation and Amortization

Depreciation and amortization decreased 32% for the three months ending December
31, 1998 from the comparable period last year. The reduction in depreciation and
amortization  is attributed to  substantial  write-downs of intangible and fixed
assets taken,  primarily due to the discontinued  international  suture business
during 1997.


                                        6

<PAGE>


Interest Expense

Interest expense declined 4% for the three months ending December 31, 1998, from
the  comparable  period last year.  Future  reductions  are expected as a direct
result of the  capital  restructuring  which  was  completed  subsequent  to the
quarter ended  December 31, 1998. The  restructuring  included the conversion of
$2,074 of long-term debt to common stock.

Liquidity and Capital Resources

At December 31, 1998 and September  30, 1998 the Company had working  capital of
$3,509  and  $3,441,  respectively.   The  Company  maintains  revolving  credit
facilities totaling DM 2,360 (approximately  $1,400) with three German banks. At
December 31, 1998 the Company had borrowed $623 against these lines.

In the past the Company has relied upon its available  working capital lines and
institutional  investors to fund operational cash flow, when needed.  Subsequent
to the quarter  ended  December 31,  1998,  one of the  Company's  institutional
investors  and a Director of the  Company  purchased  300,000  Units and 100,000
Units, respectively, at $1.00 per Unit, each Unit consisting of one common share
of the Company and one Common Stock Purchase  Warrant,  expiring March 31, 2000,
at an exercise price of $1.50 per share. In addition,  the Company is continuing
to seek other  investors to infuse  additional  capital into the Company.  While
management  believes that it will be  successful in securing new funding,  there
can be no  assurances  that it will be able to do so. Lack of new funding  along
with the inability to increase processing revenues could result in a curtailment
of operations in the future.

The Company's  ability to generate  positive  operational cash flow is dependent
upon increasing processing revenues through increased recoveries by tissue banks
in the U.S. and Europe,  and the development of additional  markets and surgical
applications  worldwide.  While the Company  believes  that it continues to make
progress  in  both  these  areas,  there  can  be no  assurances  that  changing
governmental  regulations  will not have a material adverse effect on results of
operations and cash flow.

Year 2000 Compliance

The Company has completed a review of its information  systems and  applications
and has concluded that it is year 2000 compliant.  The Company believes that its
vendors  and other  third  parties  on whom it relies  will be timely  converted
and/or have no Year 2000 issues.  However,  there can be no  assurance  that the
systems of other companies on which the Company relies will be timely  converted
or that any such failure to convert by another company would not have an adverse
effect on the Company.  None of the Company's products or manufacturing  systems
will be affected by the Year 2000 issue.


                                        7

<PAGE>

     PART II. OTHER INFORMATION

     Item 6.   Exhibits and Reports on Form 8-K.

               Exhibits

               No. 27    Financial Data Schedule

               No  reports  on Form 8-K were  filed by the  Company  during  the
               quarter ended December 31, 1998.



                                        8

<PAGE>

SIGNATURES

Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
undersigned, thereunto duly authorized.

                                                     Tutogen Medical, Inc.



   Date:  February 5, 1998                           /s/ Karl H. Meister
                                                     ---------------------------
                                                     President and Chief 
                                                     Executive Officer



   Date:  February 5, 1998                           /s/ George Lombardi    
                                                     ---------------------------
                                                     Chief Financial Officer
                                                     (Principal Financial and 
                                                     Accounting Officer)


                                        9