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        March 31, 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
                                                        ===     ===
<PAGE>
                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 May 31, 2000.
      ---------------

     Transitional Small Business Disclosure Format (check one)

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

ITEM 1.  FINANCIAL STATEMENTS

The following financial statements are filed with this report:

     Balance Sheet as of March 31, 2000 (unaudited)

     Statements of Operations for the three-month periods ended
     March 31, 2000 (unaudited) and March 31, 1999 (unaudited)
     and since inception through March 31, 2000 (unaudited)

     Statements of Cash Flows for the three-month periods ended
     March 31, 2000 (unaudited) and March 31, 1999 (unaudited)
     and since inception through March 31, 2000 (unaudited)

     Notes to Unaudited Financial Statements
<PAGE>
                   MEDICAL DISCOVERIES, INC.
                 (A DEVELOPMENT STAGE COMPANY)
             CONDENSED CONSOLIDATED BALANCE SHEET
               AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
                                       March 31, 2000
                                       --------------
CURRENT ASSETS
<S>                                    <C>
        Cash                            $      563
        Inventory                           96,859
                                         ----------
          Total Current Assets              97,422

PROPERTY AND EQUIPMENT
        Equipment                          108,521
        Less: Accumulated depreciation     (82,099)
                                         ----------
          Net Property and Equipment        26,422
                                         ----------
Total Assets                            $  123,844
                                        ===========
CURRENT LIABILITIES
     Accounts payable                   $1,789,622
     Accrued expenses                      122,654
     Current maturities of:
        Notes payable                      407,807
        Convertible notes payable          200,983
                                         ----------
          Total Current Liabilities      2,521,066

STOCKHOLDERS' DEFICIT
     Common Stock, no par value,
        authorized 100,000,000           9,913,837
        shares; 26,656,959 shares
        issued and outstanding
     Retained deficit                  (12,198,559)
     Subscription receivables             (112,500)
                                        -----------
     Total Stockholders' Deficit        (2,397,222)
                                        -----------

TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY                $   123,844
                                       ============
</TABLE>
<PAGE>
                           MEDICAL DISCOVERIES, INC.
                         (A DEVELOPMENT STAGE COMPANY)
                           STATEMENT OF OPERATIONS
             FOR THE PERIODS ENDED MARCH 31, 2000 AND MARCH 31, 1999
                                 (UNAUDITED)
<TABLE>
<CAPTION>

                                                               Cumulative
                                For the three months          Amounts since
                                   ended March 31,            November 20,
                              --------------------------      1991 (date of
                                 2000             1999          inception)
                              ----------        ---------     -------------
REVENUE
<S>                           <C>               <C>           <C>
  Revenue and fees            $   7,620         $       0     $    134,229
  Interest                            0                 0           23,406
                              ----------        ----------    -------------
    Total Revenue                     0                 0          150,015

EXPENSES
  Cost of Sales               $   2,511         $       0     $     10,261
  License                             0                 0        1,001,500
  Research and development            0            58,637        2,272,291
  General and administrative     49,559           103,647        7,910,145
  Interest                       14,632            44,394          209,460
                              ----------        ----------    -------------
     Total Expenses              66,702           206,678       11,403,657
                              ----------        ----------    -------------
LOSS BEFORE INCOME TAXES       ( 59,082)         (206,678)     (11,246,022)
  AND EXTRAORDINARY ITEM

INCOME TAXES                          0                 0                0
                              ----------        ----------    -------------
LOSS BEFORE EXTRAORDINARY      ( 59,082)         (206,678)     (11,246,022)
  ITEM

FORGIVENESS OF DEBT                   0                 0        1,235,536
                              ----------        ----------    -------------
NET LOSS                      $( 59,082)        $(206,678)    $(10,010,486)
                              ==========        ==========    =============

INCOME / (LOSS) PER SHARE
  Loss from continuing
  operations                  $   (0.00)        $   (0.01)    $      (0.57)
  Gain from debt
  forgiveness                      0.00              0.00             0.06
                              ----------        -----------   -------------
  Income / (loss) per
  share                      $    (0.00)        $   (0.01)    $      (0.51)
                             ===========        ===========   =============

WEIGHTED AVERAGE NUMBER
  OF SHARES                  26,656,959         26,395,847      19,677,320
</TABLE>
                            ============      ==============  =============

<PAGE>
                           MEDICAL DISCOVERIES, INC.
                         (A DEVELOPMENT STAGE COMPANY)
                           STATEMENT OF CASH FLOWS
            FOR THE PERIODS ENDED MARCH 31, 2000 AND MARCH 31, 1999
                                 (UNAUDITED)
<TABLE>
<CAPTION>

                                                                 Cumulative
                                    For the three months        Amounts since
                                      ended March 31,            November 20,
                                    --------------------        1991 (date of
                                       2000         1999         inception)
                                   -----------   -----------    -------------
OPERATING ACTIVITIES
  Net income (loss) for the
<S>                                <C>           <C>            <C>
    period                         $ ( 59,082)   $ (206,679)    $(10,798,982)
  Add non-cash items
    Common stock options issued
      for services                          0             0        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                        2,771         3,612           83,558
    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           205           (7,529)
      Inventory                        (2,511)      ( 7,473)        ( 96,859)
      Prepaid Expenses                      0         4,111                0
      Other assets                        900           509                0
    Increase (decrease) in:
      Accounts payable                  8,811        85,773        1,633,713
      Accrued expenses                (14,500)      (16,793)         144,135
                                    ----------   -----------    ------------
Net Cash from Operations             ( 29,589)     (107,145)      (4,066,295)

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            20,000       105,000          553,613
  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                       20,000        55,000        4,069,042
                                    ----------   -----------    ------------
NET INCREASE / (DECREASE) IN CASH     ( 9,589)      (52,145)             563

CASH, BEGINNING PERIOD                 10,152        84,847                0
                                    ----------   -----------    ------------
CASH ENDING PERIOD                  $     563    $   32,702     $        563
                                    ==========   ===========    ============
</TABLE>
<PAGE>

                          MEDICAL DISCOVERIES, INC.

                        NOTES TO FINANCIAL STATEMENTS
                               March 31, 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 March 31, 2000 and the
results of  operations  and changes in financial  position  for the  three-month
period  ended March 31,  2000.  The results of  operations  for the three months
ended  March  31,  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

Medical  Discoveries,  Inc. ("MDI") booked revenue of $7,620 for the period from
January 1, 2000 to March 31, 2000  compared to $0 in revenue for the same period
in  1999.   The  revenue   resulted  from  sales  of  MDI   HealthCare   Systems
("MDI-HCS")inventory  to Advanced  Sales  Corporation  ("ASC")  (see  Subsequent
Events below for an  explanation  of 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 three months of
2000  compared  to  $58,637  for the same  period in last year.  The  absence of
research and development  work during the first three months of 2000 is a result
of the unavailability of funds to conduct research.  MDI reduced its General and
Administrative  expense to $49,559 from  $103,647.  Funds to support  operations
came from loans from MDI's investment  partner described in "Subsequent  Events"
below.   Additional  funding  for  on-going   operations  is  discussed  in  the
"Additional Funding is Required" section below.
<PAGE>

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 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  investment
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  with the outside
investment  group,  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 previously drawn $76,000). 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.

RELATED EVENTS

ASC (the company that MDI holds a 42 percent ownership interest in) has launched
sales of MDI-HCS products.  ASC personnel attended the international  esthetics,
cosemetics  and spa conference  trade show in Las Vegas in June 2000.  Reception
for the MDI-HCS  products  was  positive and ASC had sales orders of over $4,500
during the three-day show.

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
substantial  additional funds in public stock offerings as well. The funds to be
raised will be used in the following  areas: 1) submission of an IND Application
with the FDA for it novel  Anti-HIV/AIDS  drug,  2) the  launch of  MDl-HCS.  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 INFORMATION

This report contains certain forward-looking statements and information relating
to the  Company  that  are  based  on the  beliefs  of  management  as  well  as
assumptions made by, and information  currently  available to, management.  When
used in this document,  the words "anticipate,"  "believe," "should," "project,"
"estimate,"  "expect," "intend" and similar  expressions,  as they relate to the
Company or its management, are intended to identify forward-looking  statements.
Such statements reflect the current view of the Company respecting future events
and are subject to certain risks, unce3rtainties, and assumptions, including the
risks and uncertainties noted throughout the document.  Although the Company has
attempted to identify  important  factors that could cause the actual results to
differ  materially,  there may be other factors that cause the forward statement
not to come true as anticipated,  believed,  projected,  expected,  or intended.
Should  one or more of  these  risks or  uncertainties  materialize,  or  should
underlying  assumptions  prove incorrect,  actual results may differ  materially
from those described  herein as  anticipated,  believed,  projected,  estimated,
expected, or intended.

General risk factors that my impact the Company's  operations include the market
acceptance of competitive products, obsolescence caused by new technologies, the
possible introduction by competitors of new products that claim to have many of
the advantages of the Company's  products at lower prices, the timing and market
acceptance of the Company's own new product introductions.

<PAGE>

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 10KSB for the year ended December 31, 1999.


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.
<PAGE>

     The following are exhibits to this Form 10-QSB.

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

27                 Financial Data Schedule.

     (b)  Reports on Form 8-K

          N/A

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: June 21, 2000                     /s/ David Walker
                                       ---------------------------
                                       Chairman of the Board