UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549

                                FORM 10-QSB

(Mark One)

 X    Quarterly report under Section 13 or 15(d) of the Securities
===   Exchange Act of 1934

          For the quarterly period ended        June 30, 2000
                                               ----------------

      Transition report under Section 13 or 15(d) of the Securities
===   Exchange Act of 1934

          For the transition period from _____________ to ______________

     Commission File Number: 0-12627
                             -------

                    MEDICAL DISCOVERIES, INC.
-------------------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in Its Charter)

            Utah                                87-0407858
-------------------------------------------------------------------------
(State or other jurisdiction        (I.R.S. Employer Identification No.)
of incorporation or organization)


       1800 South West Temple, Suite 304, Salt Lake City, Utah 84115
-------------------------------------------------------------------------
              (Address of principal executive offices)


                        (801) 463-9311
-------------------------------------------------------------------------
                  (Issuer's Telephone Number)

                              N/A
-------------------------------------------------------------------------
        (Former Name, Former Address and Former Fiscal Year,
                  if Changed Since Last Report)

     Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the 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.                                            X  Yes     No
                                                        ===     ===

        APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
           PROCEEDINGS DURING THE PRECEDING FIVE YEARS


     Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13, or 15(d) of the Exchange Act
after the distribution of securities under a plan confirmed by a court.
                                                           Yes     No
                                                        ===     ===
                APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: 26,656,959
                                                             -----------
as of July 31, 2000.
      ------------------

     Transitional Small Business Disclosure Format (check one)

                                                           Yes   X No
                                                        ===     ===
<PAGE>
                            PART I
                    FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The following consolidated financial statements are filed with this report:

     Balance Sheet as of June 30, 2000 (unaudited) and December 31, 1999
     (unaudited)

     Statements of Operations for the three-month and six-month periods
     ended June 30,  2000 (unaudited) and June 30, 1999 (unaudited) and
     cumulative amounts since inception through June  30, 2000 (unaudited)

     Statements of Cash Flows for the six-month periods ended
     June 30, 2000 (unaudited) and June 30, 1999 (unaudited) and
     cumulative amounts since inception through June 30, 2000 (unaudited)

     Notes to Unaudited Consolidated Financial Statements

<PAGE>
                   MEDICAL DISCOVERIES, INC.
                 (A DEVELOPMENT STAGE COMPANY)
             CONDENSED CONSOLIDATED BALANCE SHEET
           AS OF JUNE 30, 2000 AND DECEMBER 31, 1999
                          (UNAUDITED)

                                       June 30, 2000      December 31, 1999
                                       --------------     ------------------
CURRENT ASSETS
        Cash                            $      209               $  10,152
        Inventory                           96,859                  99,370
                                         ----------              ----------
          Total Current Assets              97,068                 109,522

PROPERTY AND EQUIPMENT
        Equipment                          108,521                 108,521
        Less: Accumulated depreciation     (84,984)                (79,328)
                                         ----------              ----------
          Net Property and Equipment        23,537                  29,193

OTHER ASSETS                                     0                     900
                                         ----------              ----------

Total Assets                            $  120,605               $ 139,615
                                        ===========              ==========
CURRENT LIABILITIES
     Accounts payable                   $1,782,279              $1,780,811
     Accrued interest                      137,154                 108,154
     Current maturities of:
        Notes payable                      455,807                 387,807
        Convertible notes payable          200,983                 200,983
                                         ----------              ----------
          Total Current Liabilities      2,576,223               2,477,755

STOCKHOLDERS' EQUITY
     Common Stock, no par value,
        authorized 100,000,000           9,913,837               9,913,837
        shares; 26,656,959 shares
        issued and outstanding at
        June 30, 2000
     Retained deficit                  (12,256,955)            (12,139,477)
     Subscription receivables             (112,500)               (112,500)
                                        -----------             -----------
     Total Stockholders' Equity         (2,455,618)             (2,338,140)
                                        -----------             -----------

TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY                $   120,605              $  139,615
                                       ============             ===========
<PAGE>
<TABLE>
<CAPTION>

                            MEDICAL DISCOVERIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
  FOR THE PERIODS ENDED JUNE 30, 2000 AND JUNE 30, 1999 AND CUMULATIVE AMOUNTS
                                   (UNAUDITED)



                                                                                              Cumulative
                              For the three months             For the six months            Amounts since
                                 ended June 30,                  ended June 30,               November 20,
                            ------------------------------   -----------------------------   1991 (date of
                                  2000               1999          2000              1999       inception)
                            -----------        -----------   -----------       -----------   -------------
<S>                         <C>                <C>           <C>               <C>           <C>
REVENUE
  Revenue and fees          $        0         $        0    $    7,620        $        0    $    134 229
  Interest                           0                  0             0                 0          23,406
                            -----------        -----------   -----------       -----------   -------------
    Total Revenue                    0                  0         7,620                 0         150,015

COST OF GOODS SOLD                   0                  0         2,511                 0          10,261
                            -----------        -----------   -----------       -----------   -------------
GROSS MARGIN                         0                  0         5,109                 0         147,374

EXPENSES
  License                            0                  0             0                 0       1,001,500
  Research and development           0            306,736             0           365,373       2,272,535
  General and administrative    43,132             79,144        92,691           182,791       7,953,033
                            -----------        -----------   -----------       -----------   -------------
     Total Expenses             43,132            385,880        92,691           548,164      11,227,068
                            -----------        -----------   -----------       -----------   -------------
NET LOSS FROM OPERATIONS      ( 43,132)          (385,880)     ( 87,582)         (548,164)    (11,079,694)

OTHER INCOME / (EXPENSE)       (15,265)           (14,364)      (29,897)          (58,758)       (224,725)
                            -----------        -----------   -----------       -----------   -------------

LOSS BEFORE INCOME TAXES      ( 58,397)          (400,244)     (117,479)         (606,922)    (11,304,419)
  AND EXTRAORDINARY ITEM

INCOME TAXES                         0                  0             0                 0               0
                            -----------        -----------   -----------       -----------   -------------
LOSS BEFORE EXTRAORDINARY     ( 58,397)          (400,244)     (117,479)         (606,922)    (11,550,796)
  ITEM

FORGIVENESS OF DEBT                  0                  0             0                 0       1,235,536
                            -----------        -----------   -----------       -----------   -------------
NET LOSS                    $ ( 58,397)        $ (400,244)   $ (117,479)       $ (606,922)   $(10,068,883)
                            ===========        ===========   ===========       ===========   =============

INCOME / (LOSS) PER SHARE
  Loss from continuing
  operations                $    (0.00)        $    (0.02)   $    (0.00)       $    (0.02)   $      (0.57)
  Gain from debt
  forgiveness                     0.00               0.00          0.00              0.00            0.06
                            -----------        -----------   -----------       -----------   -------------
  Income / (loss) per
  share                     $    (0.00)        $    (0.02)   $    (0.00)       $    (0.02)   $      (0.51)
                            ===========        ===========   ===========       ===========   =============

WEIGHTED AVERAGE NUMBER
  OF SHARES                  26,657,000         26,480,000    26,657,000        26,477,000      19,879,000
                            ===========        ===========   ===========       ===========   =============
</TABLE>



<PAGE>
                           MEDICAL DISCOVERIES, INC.
                         (A DEVELOPMENT STAGE COMPANY)
                CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
  FOR THE PERIODS ENDED JUNE 30, 2000 AND JUNE 30, 1999 AND CUMULATIVE AMOUNTS
                                 (UNAUDITED)

                                                                 Cumulative
                                    For the six months          Amounts since
                                      ended June 30,            November 20,
                                   -------------------------    1991 (date of
                                       2000         1999         inception)
                                   -----------   -----------    -------------
OPERATING ACTIVITIES
  Net income (loss) for the
    period                         $ (117,478)   $ (606,922)    $(10,857,378)
  Add non-cash items
    Common stock options issued
      for services                                                 2,556,890
    Common stock issued for
      services and license                  0        30,000        3,559,986
    Reduction of legal costs                0             0         (130,000)
    Depreciation                        5,656         5,981           86,443
    Loss on disposal of equipment           0             0           30,364
    Gain on debt restructuring              0             0       (1,235,536)
    Write-off receivables                   0             0          193,965
    Decrease (increase) in:
      Receivables                           0          (106)           7,529
      Inventory                         2,511        (2,595)        ( 96,859)
      Prepaid Expenses                      0         8,232                0
      Other assets                        900           509                0
    Increase (decrease) in:
      Accounts payable                  1,468       373,334        1,626,370
      Accrued expenses                 29,000        (2,561)         158,635
                                    ----------   -----------    ------------
Net Cash from Operations              (77,943)     (194,128)      (4,114,649)

INVESTING ACTIVITIES
  Purchases of equipment                    0             0         (132,184)
  Payments received on note
    receivable                              0             0          130,000
                                    ----------   -----------    ------------
Net Cash from Investing Activities          0             0           (2,184)

FINANCING ACTIVITIES
  Increase in notes payable            68,000       160,000          601,613
  Payment of notes payable                  0       (50,000)        (188,004)
  Increase in notes payable                 0             0          316,700
  Equity contributed                        0             0          131,374
  Proceeds from issuance of
     common stock                           0             0        3,255,359
                                    ----------   -----------    ------------
    Net Cash from Financing
      Activities                       68,000       110,000        4,117,042
                                    ----------   -----------    ------------
NET INCREASE / (DECREASE) IN CASH     ( 9,943)      (84,128)             209

CASH, BEGINNING PERIOD                 10,152        84,847                0
                                    ----------   -----------    ------------
CASH ENDING PERIOD                  $     209    $      719     $        209
                                    ==========   ===========    ============
<PAGE>
                          MEDICAL DISCOVERIES, INC.

                        NOTES TO FINANCIAL STATEMENTS
                               June 30, 2000

NOTES TO UNAUDITED FINANCIAL STATEMENTS


The unaudited financial statements include the accounts of Medical
Discoveries, Inc. and include all adjustments which are, in the opinion
of management, necessary to present fairly the financial position as of
June 30, 2000 and the results of operations and changes in financial
position for the three-month and six-month periods ended June 30, 2000.
The results of operations for the three-month and six-month periods ended
June 30, 2000 are not necessarily indicative of the results to be expected
for the entire year.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

OPERATIONS AND LIQUIDITY.

MDI booked  $7,620  revenue for the  three-month  period from January 1, 2000 to
March 31, 2000 and $0 revenue  for the  three-month  period  ended June 30, 2000
compared to $ 0 revenue for the three month period from January 1, 1999 to March
31, 1999 and $0 revenue for the  three-month  period  ended June 30,  1999.  The
revenue  resulted from sales of MDI HealthCare  Systems  (MDI-HCS)  inventory to
Advanced Sales Corporation  ("ASC"). ASC has initiated sales of MDI-HCS products
as described in "Related Events" below.

MDI spent $0 in research  and  development  costs during the first six months of
2000  compared  to  $365,373  for the same  period in last year.  The absence of
research and development work during the first six months of 2000 is a result of
the  unavailability  of funds to conduct  research.  MDI reduced its General and
Administrative  expense to $92,691 from  $182,791.  Funds to support  operations
came from loans from MDI's investment  partner described in "Subsequent  Events"
below.

The Funding for on-going  operations is discussed in the "Additional  Funding is
Required" section below.


ADDITIONAL FUNDING IS REQUIRED

Management  intends  to raise  substantial  additional  funds in  private  stock
offerings  in  the  near  future  in  order  to  meet  its   near-term   funding

<PAGE>

requirements.   In  the  future,   management  anticipates  the  need  to  raise
substantial   additional  funds  in  public  stock  offerings  as  well.  It  is
anticipated  that  shareholders may experience  substantial  dilution due to the
current financial  position of the Company.  The funds to be raised will be used
in the  following  areas:  1) the launch of MDl-HCS,  2) continued  research for
MDI-P, 3) payment and payment  arrangements  for the Company's  obligations,  4)
commencement of payment of salaries to Company personnel, and 5) at such time as
funds become available, payment of prior debts of the Company.

SUBSEQUENT EVENTS

On June  16,  2000,  the  Board of MDI  approved  a  resolution  to  accept  the
investment proposal from an outside investment group based on a letter of intent
signed in October 1999 and  disclosed in the  Company's  previous  10KSB for the
1999 fiscal year. The agreement between MDI and the outside investment group was
executed in July 2000. The letter of intent provides for a joint venture between
MDI and the outside investment group to sell MDI-HCS products.  The entity to be
created by the joint venture is Advanced Sales Corporation or ASC as noted above
in the Operations and Liquidity section. The outside investment group has formed
Advanced Sales  Corporation and in anticipation of the joint venture  agreement,
MDI and ASC executed an agreement in the fourth  quarter of 1999 that allows ASC
to market MDI-HCS products.  The term of this agreement was for 120 days and was
renewable  on a  monthly  basis.  The  agreement  was an  interim  step  pending
completion of joint venture  agreement  between MDI and the outside  investm ent
group.

The Company plans for the joint venture to generate cash for further development
of MDI-P.  MDI has also initiated  discussions  with the investment  group for a
direct investment in MDI. Under the terms of the agreement, the investment group
will provide  funds of $750,000 to the joint  venture and will extend a $150,000
line of credit to MDI (of which the Company has drawn $100,000). MDI will assign
all rights it owns in HCS products to the joint venture. MDI will own 42 percent
of the joint venture. The investment group will receive 25,000,000 shares of MDI
stock. The investment group signed the joint venture agreement in July 2000.

Scott Wood, the Company's chief financial officer and acting president, resigned
effective  July 31, 2000.  Mr. Wood  remains  available to the Company on an "as
needed" basis.

RELATED EVENTS

ASC (the JV  company  of which MDI holds a 42 percent  ownership)  has  launched
sales of MDI-HCS products.  ASC introduced  several HCS products at a trade show
in Las Vegas in June 2000. Reception for the MDI-HCS products was positive.  ASC
recorded  sales of a little more than $3,000 during the  three-day  show and was
able to sign many distributors.

ADDITIONAL FUNDING IS REQUIRED

Management  intends  to raise  substantial  additional  funds in  private  stock
offerings  in  the  near  future  in  order  to  meet  its   near-term   funding
requirements.   In  the  future,   management  anticipates  the  need  to  raise

<PAGE>

substantial  additional funds in public stock offerings as well. The funds to be
raised will be used in the following  areas: 1) additional  testing of MDI-P, 2)
submission of an IND Application with the FDA for it novel  Anti-HIV/AIDS  drug,
3) payment  of the MDI Trust Fund  obligations,  4)  commencement  of payment of
salaries to Company  personnel,  and 5) at such time as funds become  available,
the prior debts of the Company.

FORWARD LOOKING STATEMENTS

With the exception of the actual reported financial results and other historical
information,  the statements made in the Management's Discussion and Analysis of
Financial  Condition and Results of Operations  and elsewhere in this report are
forward  looking  statements  that involve  risks and  uncertainties  that could
affect actual future results. Such risks and uncertainties  include, but are not
limited to: the  regulatory  environment,  the technical and  engineering  risks
associated  with new product  development,  the  availability  of  funding,  the
cooperation  of the Company's  creditors,  the ability of the Company to attract
and retain competent  personnel,  market  acceptance of MDI products,  favorable
negotiations  with  partners in the  proposed  joint  venture,  the  presence of
possible competitors, and competing technologies.


PART II
                         OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The Company is not currently involved in any litigation and there has been
no change in any with regard to any potential legal dispute since the
filing of the Company's 10Q for the quarter ended March 31, 2000.


ITEM 2.  CHANGES IN SECURITIES

     N/A


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     N/A


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     N/A


ITEM 5.  OTHER INFORMATION

     N/A

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)     Exhibits required by Item 601 of Regulation S-B.

     The following are exhibits to this Form 10-QSB.

EXHIBIT NUMBER     DESCRIPTION
--------------     -----------

27                 Financial Data Schedule.

     (b)  Reports on Form 8-K

          N/A
<PAGE>
SIGNATURES

     In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                       MEDICAL DISCOVERIES, INC.



Date:August 30, 2000                   /s/ David Walker
                                       ---------------------------
                                       Chairman of the Board
                                       Officer