FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

          For Quarter Ended August 31, 1999 Commission File Number 0-7405

                          MEDISCIENCE TECHNOLOGY CORP.
--------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Certificate of Incorporation)

                                   New Jersey
--------------------------------------------------------------------------------
(State or other jurisdiction on incorporation or organization)

                                   22-1937826
--------------------------------------------------------------------------------
(I.R.S. Employer Identification Number)

                1235 Folkstone Way, Cherry Hill, New Jersey 08034
--------------------------------------------------------------------------------
(Address of principal executive offices)

(Registrant's telephone number, including area code)  609-428-7952

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 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  [   ]

Registrant has not been involved in bankruptcy  proceedings during the preceding
five years.

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of August 31, 1999.

            Title of Class                  Number of Shares Outstanding
            --------------                  ----------------------------

Common Stock, par value                             35,576,130
$.01 per share

Preferred Stock, par value                               2,074
$.01 per share
<PAGE>
                          MEDISCIENCE TECHNOLOGY CORP.

                                 AUGUST 31, 1999

                                      INDEX



PART I.          Financial Information

Item 1.          Financial Statements

                 Balance Sheets as at August 31, 1999 (Unaudited) and
                 February 28, 1999

                 Statement of Operations for the Six and Three Months ended
                 August 31, 1999 (Unaudited) and August 31, 1998 (Unaudited)

                 Statement of Cash Flows for the Six Months ended August 31,
                 1999 (Unaudited) and August 31, 1998 (Unaudited)

                 Statement of Stockholders' Equity for the Six Months ended
                 August 31, 1999 (Unaudited)

                 Exhibit to Statements of Operations
                 Notes to Financial Statements

Item 2.          Management's Plan of Operation

PART II.         Other Information

Item 1.          Legal Proceedings

Item 2.          Changes in Securities

Item 3.          Defaults Upon Senior Securities

Item 4.          Submission of Matters to Vote of Security Holders

Item 5.          Other Information

Item 6.          Exhibits and Reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
                                     MEDISCIENCE TECHNOLOGY CORP.
                                           BALANCE SHEETS


                                                                August 31, 1999
                                                                  (Unaudited)     February 28, 1999
                                                                 ------------     -----------------
<S>                                                              <C>                <C>
                                     ASSETS

CURRENT ASSETS
         Cash and Cash Equivalents                               $      1,745       $     24,940
         Other Assets                                                  20,191             20,191
                                                                 ------------       ------------
                  Total Current Assets                                 21,936             45,131
                                                                 ------------       ------------
PROPERTY, PLANT AND EQUIPMENT
         Net of Accumulated Depreciation $192,480                      11,497             14,408
           August 31, 1999; 189,570 - February 28, 1999
                                                                 ------------       ------------

TOTAL ASSETS                                                     $     33,433       $     59,539
                                                                 ============       ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
         Accounts Payable                                        $     50,441       $     47,108
         Other Accrued Liabilities                                  1,618,038          1,421,207
         Officer and Other Loans                                       81,630             64,109
                                                                 ------------       ------------
                  Total Current Liabilities                         1,750,109          1,532,424
                                                                 ------------       ------------
STOCKHOLDERS' EQUITY
         Preferred Stock - $.01 Par Value; Authorized                      21                 21
           50,000 Shrs; Outstanding 2,074 Shrs;
           (Preference on Liquidation $20,740)
         Common Stock $.01 Par Value, Authorized                      355,761            352,761
           39,950,000 Shares; Outstanding 35,576,130 Shares
         Additional Paid-in Capital                                18,021,917         17,796,811
         Accumulated Deficit                                      (20,094,375)       (19,622,478)
                                                                 ------------       ------------
                  Total Stockholders' Equity (Deficiency)          (1,716,676)        (1,472,885)
                                                                 ------------       ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                         $     33,433       $     59,539
                                                                 ============       ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                           MEDISCIENCE TECHNOLOGY CORP.
                                              STATEMENT OF OPERATIONS

                                FOR THE SIX MONTHS ENDED AUGUST 31, 1999 AND 1998

                                                    (UNAUDITED)

                                                   SIX MONTHS                           THREE MONTHS
                                            1999                1998              1999                1998
                                        ------------       ------------       ------------       ------------
<S>                                     <C>                <C>                <C>                <C>
Net Sales                               $       --         $       --         $       --         $       --
Cost of Sales                                   --                 --                 --                 --
                                        ------------       ------------       ------------       ------------
Gross Profit                                    --                 --                 --                 --

General and Administrative Expense           446,428            333,006            149,752            178,573
Product Development Expense                    5,000            167,257               --               78,127
Advertising, Travel and Marketing             20,601             15,041              8,783              8,182
                                        ------------       ------------       ------------       ------------
         Total Expenses                      472,029            515,304            158,535           (264,882)
                                        ------------       ------------       ------------       ------------
Other Income                                     132                 68                  4               --
                                        ------------       ------------       ------------       ------------
Net Loss                                $   (471,897)      $   (515,236)      $   (158,531)      $   (264,882)
                                        ============       ============       ============       ============
Net Loss Per Common Share               $      (0.02)      $      (0.02)      $      (0.01)      $      (0.01)
                                        ============       ============       ============       ============
Weighted Average Number of
   Shares of Common Stock
   Outstanding                            35,451,130         34,976,951         35,542,797         35,010,285
                                        ============       ============       ============       ============

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                           MEDISCIENCE TECHNOLOGY CORP.

                                              STATEMENT OF CASH FLOWS

                                 FOR THE SIX MONTHS ENDED AUGUST 31, 1999 AND 1998

                                                    (UNAUDITED)

                                                                                        1999            1998
                                                                                     ---------       ---------
<S>                                                                                  <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
         Net Loss                                                                    $(471,897)      $(515,236)
         Adjustment for Item Not Requiring Cash Outlay
                  Depreciation                                                           2,911           5,999
                  Stock Issued for Services                                             53,075            --
                  Issuance of Warrants                                                 164,031            --
                                                                                     ---------       ---------
                     Subtotal                                                         (251,880)       (509,237)

         Changes in Assets and Liabilities:
                  Decrease in Other Assets                                                --            14,931
                  Increase (Decrease) in Accounts Payable                                3,333           7,710
                  Increase (Decrease) in Other Accrued Liabilities                     196,831         430,761
                  Increase (Decrease) in Officer and Others Loans                       17,521            --
                                                                                     ---------       ---------
                     Net Cash Flows Provided by (Used for) Operating Activities        (34,195)        (55,835)
                                                                                     ---------       ---------

CASH FLOWS FROM INVESTING ACTIVITIES                                                      --              --
                                                                                     ---------       ---------

CASH FLOWS FROM FINANCING ACTIVITIES
        Proceeds From Issuance of Common Stock                                          11,000          50,000
                                                                                     ---------       ---------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                       (23,195)         (5,835)
CASH AND CASH EQUIVALENTS
         Beginning Balance                                                              24,940          21,240
                                                                                     ---------       ---------
         Ending Balance                                                              $   1,745       $  15,405
                                                                                     =========       =========

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                           MEDISCIENCE TECHNOLOGY CORP.

                                         STATEMENT OF STOCKHOLDERS' EQUITY

                                     FOR THE SIX MONTHS ENDED AUGUST 31, 1999

                                                    (UNAUDITED)

                                                 Preferred Stock                        Common Stock
                                                 Number of Shares   Preferred Stock   Number of Shares   Common Stock
                                                 -----------------  ----------------  -----------------  --------------
<S>                                              <C>                <C>               <C>                <C>
Balance February 28, 1999                                   2,074               $21         35,276,130        $352,761
Issuance of Common Stock for                            -                  -                   250,000           2,500
Cash and Services
Issuance of Common Stock for Services                   -                  -                    50,000             500
Issuance of Warrants                                    -                  -                 -                 -
Net Loss for the Six
         Months Ended August 31, 1999
                                                 -----------------  ----------------  -----------------  --------------
Balance August 31, 1999                                     2,074               $21         35,576,130        $355,761
                                                 =================  ================  =================  ==============


<CAPTION>
                                                   Additional Paid
                                                     in Capital        Accumulated Deficit
                                                  ------------------  ---------------------
<S>                                               <C>                 <C>
Balance February 28, 1999                               $17,796,811          $(19,622,478)
Issuance of Common Stock for                                 52,200            -
Cash and Services
Issuance of Common Stock for Services                         8,875            -
Issuance of Warrants                                        164,031            -
Net Loss for the Six
         Months Ended August 31, 1999                                            (471,897)
                                                  ------------------  ---------------------
Balance August 31, 1999                                 $18,021,917          $(20,094,375)
                                                  ==================  =====================
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                        EXHIBIT TO STATEMENTS OF OPERATIONS

                                   WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING



                          Common Stock                                                                 Weighted
                         $.01 Par Value            Common Stock              Number of              Average Number
                           Issued and               Equivalents                Shares               of Shares
                          Outstanding                                       Outstanding              Outstanding
                       -------------------         --------------         -----------------        -----------------
<S>                        <C>                      <C>                      <C>                     <C>
March 1999                 35,276,130                    -                   35,276,130
April 1999                 35,326,130                    -                   35,326,130
May 1999                   35,526,130                    -                   35,526,130
June 1999                  35,526,130                    -                   35,526,130
July 1999                  35,526,130                    -                   35,526,130
August 1999                35,576,130                    -                   35,576,130              35,451,130
</TABLE>



<PAGE>
                          MEDISCIENCE TECHNOLOGY CORP.
                          NOTES TO FINANCIAL STATEMENTS

                                 AUGUST 31, 1999
                                   (UNAUDITED)

NOTE 1 RESULTS OF OPERATIONS

         The financial  statements,  in the opinion of  management,  include all
adjustments and accruals necessary for a fair presentation.

         The results of operations for each interim  period are not  necessarily
indicative of results to be expected for the year due to the unpredictability of
market factors, product development, competition and sales in general.

NOTE 2  OTHER ACCRUED LIABILITIES

         Other accrued liabilities consist of the following:

Legal and Professional Fees                              $  206,100
Research & Development                                      458,484
Salaries, Consulting and Other                              953,454
                                                         -----------
                                                         $1,618,038
                                                         ===========


<PAGE>
                     MANAGEMENT'S PLAN OF OPERATION

The  Company's  mission is to discover,  develop and market novel and  effective
photonic   technologies  for  the  early  detection  of  cancer.  The  focus  of
Mediscience's  devices is aimed toward less invasive,  faster, more accurate and
more cost effective cancer diagnosis.

Mediscience's   primary   area   of   concentration   is  on   development   and
commercialization  of its patented Tissue Fluorescence  Spectroscopy  technology
which uses light for non-invasive and minimally  invasive detection of cancer in
humans,  in  vivo  (in  the  body).  Its  secondary  focus  is on  research  and
development of its Optical  Imaging  technology  which uses laser light to image
dense tissue without exposing the body to harmful ionizing irradiation.

The Company has successfully  conducted pre clinical  investigations with tissue
from the upper  aerodigestive  tract,  the cervix,  the breast and the colon.  A
human  clinical  feasibility  study  was  successfully  completed  for the upper
aerodigestive  tract and  additional  human  clinical  feasibility  studies  are
scheduled for the breast and esophagus. Other possible application opportunities
will be evaluated  during 1999 and pre clinical  evaluations  are expected to be
undertaken  for the  more  promising  opportunities  before  moving  on to human
clinical studies.

The Phase I  clinical  feasibility  study of the upper  aerodigestive  tract was
carried out at Memorial  Sloan-Kettering  under the Principle  Investigation  of
Stimson P. Schantz,  M.D., Associate Professor of Surgery and Director of Cancer
Prevention.  It was  established  in  this  study  that  the  Company's  CD Scan
prototype product is able to distinguish  between cancerous and normal tissue in
the oral cavity using its native tissue fluorescence spectroscopy technology.

At least two other clinical studies are continuing  into1999.  One such clinical
study is  focused on  diagnosis  of breast  cancer  using the  Company's  second
prototype  product,  CD Ratiometer.  This clinical  study is being  conducted at
Massachusetts  General  Hospital under the Principle  Investigation of Daniel B.
Kopans,  M.D.,  Associate  Professor of Radiology,  Harvard  Medical  School and
Section Head,  Breast  Imaging,  Massachusetts  General  Hospital.  The clinical
feasibility  study is sponsored by Mediscience  and will be partially  funded by
the United  States  Army  Medical  Research  Acquisition  Activity.  The second,
planned,  phase I clinical feasibility study will be done at New York Hospital's
Cornell  Medical  Center to assess the  potential  utility of  Mediscience's  CD
Ratiometer with fiberoptic  probe adapted to a flexible  endoscope  furnished by
Pentax Precision Instrument Corporation for monitoring Barrett's Esophagus.

In  addition  to working on its own,  Mediscience  is also  seeking  one or more
corporate alliance arrangements to jointly develop specific end use applications
for  its  technologies.  The  Company  is  also  selectively  considering  other
non-medical   applications  of  its  technology   through  possible   partnering
arrangements.

Mediscience  subcontracts  its research and  development  through an arrangement
with the City  University of New York.  Dr. Robert  Alfano,  a consultant to the
Company,  distinguished  professor  of science and  engineering  at CUNY and the
inventor  of  the  technology,  supervises  the  Company's  research  as  CUNY's
Principal  Investigator.  As a result of the contract research relationship with
CUNY, the Company  either owns or holds  exclusive  licenses to 22 U.S.  patents
plus in 1 in Japan,  for a total of 23 and has exclusive rights to an additional
20 U.S.patents pending.

The Company has a research agreement with Memorial  Sloan-Kettering Hospital for
investigation of its Tissue Fluorescence  Spectroscopy  technology and maintains
close  working  relationships  with  Columbia  Presbyterian  Hospital,  New York
Hospital's  Cornell  Medical  Center and  Massachusetts  General  Hospital.  The
Company had developed  three  prototype  products that employ the technology for
cancer diagnosis.  They include Cancer Detection Scan, CD Ratiometer and CD Map.
The CD Scan  product  prototype  is  oriented  toward  medical  research.  It is
designed to provide optical  scanning  capability of a broad spectrum of optical
wavelengths  for evaluation of tissue.  CD Ratiometer on the other hand is being
designed  as a simple,  compact  instrument  with  user  friendly  features  and
characteristics.  It is designed to optically  assess the scanned tissue only at
pre-established  optical  wavelengths  and report out  essentially  a yes, no or
maybe  result on a computer  screen,  instantaneously.  CD  Ratiometer  with its
anticipated  assortment of probe designs is expected to be the preferred product
for the medical practitioners use in the office or clinical setting. CD Map is a
vision  instrument that is being designed to optically  assess an area of tissue
rather than selective  individual points.  Although it is at an earlier stage of
design  than  either CD Scan or CD  Ratiometer,  it is  expected  to report  out
results similar to the CD Ratiometer but in pseudocolored  graphics (a "map") on
a computer screen distinguishing the normal areas from cancerous areas via color
differentiation.

The Company's ability to maintain its operations throughout its history has been
dependent  upon the  periodic  infusion  of capital and the  willingness  of its
creditors to accept payment beyond normal terms.

The ability of the Company to generate  significant  revenues from operations is
largely dependent upon obtaining  regulatory approval for the  commercialization
of its cancer detection  technology.  There can be no assurance as to whether or
when the various requisite  governmental approvals will be obtained or the terms
or scope of  these  approvals.  The  Company  intends  to  defray  the  costs of
obtaining  regulatory approval for the  commercialization  of such technology by
the  establishment  of clinical trial  arrangements  with medical  institutions,
similar to its agreement with Sloan  Kettering  Memorial  Hospital.  The Company
intends to continue to pursue the establishment of co-promotion arrangements for
the marketing,  distribution and commercial exploitation of its cancer detection
technology.  Such  arrangements,  if established,  may include up-front payments
sharing of sales revenues after  deduction of certain  expenses,  and/or product
development  funding.  Management of the Company  anticipates  that  substantial
resources  will be committed to a continuation  of its research and  development
efforts and to finance  government  regulatory  applications.  While  management
believes that the Company will obtain  sufficient funds to satisfy its liquidity
and capital  resource  needs for the short term, no assurances can be given that
additional  funding,  or  capital  from  other  sources,  such  as  co-promotion
arrangements, will be obtained on a satisfactory basis.
<PAGE>
                           PART II - OTHER INFORMATION

Item 1.    Legal Proceedings

           None

Item 2.    Changes in Securities

           None

Item 3.    Defaults Upon Senior Securities

           None

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

           None

Item 5.    Other Information

           On August 18, 1999 the board of  directors  unanimously  extended Mr.
           Katevatis's  existing contract  expiration date from March 5, 2002 to
           March 5, 2007,  maintaining  all other  original  contract  terms and
           conditions,  in recognition of his personal  financial  investment in
           the Company, the periodic voluntary  non-assertion of his contractual
           anti-dilution  rights  and  other  significant  consideration  to the
           Company.  On  August  18,  1999  Dr.  Alfano  agreed  to  extend  his
           agreement,  on the same original contract terms and conditions,  from
           its expiration date of March 5, 2002 to March 5, 2007.

Item 6.    Exhibits and Reports on Form 8-K

           None
<PAGE>
                                   SIGNATURES

PURSUANT TO THE  REQUIREMENTS  OF THE  SECURITIES  AND EXCHANGE ACT OF 1934, THE
REGISTRANT  HAS DULY  CAUSED  THIS  REPORT  TO BE  SIGNED  ON ITS  BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.

                                           MEDISCIENCE TECHNOLOGY CORP.
                                           ----------------------------
                                                   (REGISTRANT)

DATE: January 18, 2000                 By: /s/PETER KATEVATIS
                                           ---------------------------------
                                                 PETER KATEVATIS
                                                 Chairman/CEO

                                       By: /s/JOHN M. KENNEDY
                                           ---------------------------------
                                                 JOHN M. KENNEDY
                                                 Treasurer
                                                 Chief Accounting Officer