<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                 X  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
                ---    THE SECURITIES EXCHANGE ACT OF 1934

                 For the nine month period ended APRIL 30, 2003

                --- TRANSITION REPORT UNDER SECTION 13 or 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                   For the transition period from _____to_____

                        Commission file number 000-23399

                               NOVADEL PHARMA INC.
        (Exact name of small business issuer as specified in its charter)

                Delaware                                 22-2407152
     (State or other jurisdiction of                  (I.R.S. Employer
      incorporation or organization                 Identification No.)

           31 State Highway 12
         Flemington, New Jersey                            08822
(Address of Principal Executive Offices)                 (Zip Code)

                                  (908)782-3431
                           (Issuer's telephone number)

     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. Yes X No ___

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

     Check whether the registrant 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.  17,762,161 shares of common
stock outstanding as of June 15, 2003.

           TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE):

                                 YES    NO  X
                                    ---    ---


<PAGE>


                               NOVADEL PHARMA INC.

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                  April 30        July 31,
                                                                                    2003            2002
                                                                                ------------    -----------
                                                                                 (UNAUDITED)       (NOTE 1)
                            ASSETS
CURRENT ASSETS:
<S>                                                                               <C>             <C>
 Cash                                                                           $  2,596,000    $  3,314,000
 Accounts receivable - trade, less allowance for
  doubtful accounts of $88,000 at  April 30, 2003 and
  July 31, 2002                                                                         --             1,000
 Prepaid expenses and other current assets                                           131,000          96,000
                                                                                ------------    ------------
       Total Current Assets                                                        2,727,000       3,411,000
                                                                                ------------    ------------
FURNITURE, FIXTURES, AND EQUIPMENT, LESS
  ACCUMULATED DEPRECIATION                                                           559,000         406,000

OTHER ASSETS                                                                         356,000          22,000
                                                                                ------------    ------------
                                                                                $  3,642,000    $  3,839,000
                                                                                ============    ============
  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

CURRENT LIABILITIES:
  Accounts payable-trade                                                        $    247,000    $    125,000
  Accrued expenses and other current liabilities                                     500,000         191,000
                                                                                ------------    ------------
   Total Current Liabilities                                                         747,000         316,000
                                                                                ------------    ------------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIENCY):
   Preferred stock, $.01 par value:
      Authorized 1,000,000 shares, none issued
   Common stock, $.001 par value:
      Authorized - 50,000,000 shares
       Issued and outstanding 16,411,842 and 14,448,817;
       respectively                                                                   16,000          14,000
   Additional paid-in capital                                                     17,046,000      13,322,000
   Accumulated Deficit                                                           (14,167,000)     (9,813,000)
                                                                                ------------    ------------
       Total Stockholders' Equity (Deficiency)                                     2,895,000       3,523,000
                                                                                ------------    ------------
                                                                                $  3,642,000    $  3,839,000
                                                                                ============    ============
</TABLE>



See accompanying notes to financial statements.

                                       2

<PAGE>



                               NOVADEL PHARMA INC.

                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                             Three Months Ended                              Nine Months Ended
                                                  April 30,                                     April 30,
                                   ----------------------------------------------------------------------------------
                                         2003                    2002                  2003                   2002
                                    -------------           ------------           ------------           ------------
<S>                                 <C>                    <C>                    <C>                     <C>
CONSULTING REVENUES                          --             $     81,000                   --             $    335,000

CONSULTING, SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES                 878,000              2,139,000              4,478,000              3,011,000
                                     ------------           ------------           ------------           ------------
LOSS FROM OPERATIONS                     (878,000)            (2,058,000)            (4,478,000)            (2,676,000)

BUY-OUT OF CONSULTANT'S

CONTRACT                                     --                     --                     --                  (32,000)

INTEREST INCOME                             7,000                 17,000                 40,000                 32,000
                                     ------------           ------------           ------------           ------------
NET LOSS BEFORE TAXES                    (871,000)            (2,041,000)            (4,438,000)            (2,676,000)

DEFFERED INCOME TAX BENEFIT                  --                     --                   84,000                 88,000
                                     ------------           ------------           ------------           ------------
NET LOSS                             $   (871,000)          $ (2,041,000)          $ (4,354,000)          $ (2,588,000)
                                     ============           ============           ============           ============
BASIC AND DILUTED LOSS PER SHARE     $       (.06)          $       (.15)          $       (.30)          $       (.25)
                                     ============           ============           ============           ============
SHARES USED IN COMPUTATION OF
  BASIC  AND DILUTED LOSS PER
  SHARE                                15,155,662             13,432,765             14,731,391             10,332,959
                                     ============           ============           ============           ============
</TABLE>


See accompanying notes to financial statements.

                                       3

<PAGE>
                               NOVADEL PHARMA INC.

           STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                   Common Stock
                                          --------------------------------
                                                                                                                     Stockholders'
                                                                   Par             Paid-in           Accumulated        Equity
                                             Shares               Value            Capital             Deficit       (Deficiency)
                                          ------------        ------------      ------------        ------------     ------------
<S>                                         <C>               <C>               <C>                 <C>              <C>
BALANCE, JULY 31, 2002                      14,448,817        $     14,000      $ 13,322,000        $ (9,813,000)    $  3,523,000
NINE  MONTHS ENDED APRIL 30, 2003                 --
Stock issued in connection with private      1,863,333               1,000         2,510,000                 --         2,511,000
 placements, net of costs
Shares issued for Warrants exercised            99,692               1,000             9,000                 --            10,000
Options issued for services                       --                  --           1,198,000                 --         1,198,000
Warrants issued for services                      --                  --               7,000                 --             7,000
  Net Loss                                        --                  --                --            (4,354,,000)     (4,354,000)
                                          ------------        ------------      ------------        -------------    ------------
BALANCE, APRIL 30, 2003                     16,411,842        $     16,000      $ 17,046,000        $ (14,167,000)   $  2,895,000
                                          ============        ============      ============        =============    ============
</TABLE>



See accompanying notes to financial statements.


                                       4

<PAGE>


                               NOVADEL PHARMA INC.

                             STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                       Nine Months Ended
                                                                                            April 30,
                                                                            --------------------------------------
                                                                                2003                      2002
                                                                            -----------               ------------
CASH FLOW FROM OPERATING ACTIVITIES:
<S>                                                                         <C>                        <C>
Net  (loss)                                                                 $(4,354,000)               $(2,588,000)
Adjustments to reconcile net income (loss) to net cash
  flows from operating activities:
  Warrants issued for Services                                                    7,000                     47,000
  Options Issued for Services                                                 1,198,000                  1,348,000
  Shares issued for Warrants exercised                                           10,000                       --
  Depreciation & Amortization                                                   111,000                     45,000
  Allowance for Doubtful Accounts                                                  --                       89,000
Changes in operating assets and liabilities:
  Accounts receivable                                                             1,000                    (94,000)
  Prepaid expenses and other current assets                                     (35,000)                   (22,000)
  Demand note receivable, officer                                                  --                       60,000
  Due from joint venture partner for reimbursable expenses                         --                       (4,000)
  Other Assets                                                                 (334,000)                    (1,000)
  Accounts payable - trade                                                      122,000                    191,000
  Accrued expenses and other current liabilities                                309,000                    119,000
                                                                            -----------                -----------
Net cash flows from operating activities                                     (2,965,000)                  (810,000)
                                                                            -----------                -----------
CASH FLOWS FROM INVESTING ACTIVITIES -
 Purchase of property and equipment                                            (264,000)                  (179,000)
                                                                            -----------                -----------
CASH FLOWS FROM FINANCING ACTIVITIES -
 Proceeds received from issuance of common
  stock through a private placement offering                                  2,511,000                  4,934,000
                                                                            -----------                -----------
NET CHANGE IN CASH                                                             (718,000)                 3,945,000

CASH, BEGINNING OF PERIOD                                                     3,314,000                    585,000
                                                                            -----------                -----------
CASH, END OF PERIOD                                                         $ 2,596,000                $ 4,530,000
                                                                            ===========                ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
 Interest paid                                                              $      --                  $      --
                                                                            ===========                ===========
 Income taxes paid                                                          $      --                  $      --
                                                                            ===========                ===========
</TABLE>



See accompanying notes to financial statements.



                                       5

<PAGE>



                               NOVADEL PHARMA INC.
                          NOTES TO FINANCIAL STATEMENTS


NOTE 1   -        BASIS OF PRESENTATION:

                  The balance sheet at the end of the preceding  fiscal year has
                  been derived from the audited  balance sheet  contained in the
                  Company's  Form  10-KSB  and  is  presented  for   comparative
                  purposes. All other financial statements are unaudited. In the
                  opinion of  management,  all  adjustments,  which include only
                  normal recurring  adjustments  necessary to present fairly the
                  financial  position,  results of operations and cash flows for
                  all  periods   presented,   have  been  made  in  the  interim
                  statements.  Results of operations for interim periods are not
                  necessarily  indicative  of the  operating  results for a full
                  year.

                  The  accompanying  financial  statements  have  been  prepared
                  assuming  that the Company will  continue as a going  concern.
                  Before the end of the calendar  year, it will be necessary for
                  the Company to obtain additional financing and/or consummate a
                  strategic alliance with a well-funded business partner.  There
                  are a  number  of  risks  and  uncertainties  related  to  the
                  Company's   attempt  to  complete  a  financing  or  strategic
                  partnering  arrangement  that are  outside  the control of the
                  Company.  We may not be able to successfully obtain additional
                  financing on terms acceptable to the Company, or at all. These
                  uncertainties  raise  substantial  doubt  as to the  Company's
                  ability to continue as a going concern.

                  Footnote disclosures normally included in financial statements
                  prepared in  accordance  with  generally  accepted  accounting
                  principles  have been omitted in accordance with the published
                  rules  and   regulations   of  the   Securities  and  Exchange
                  Commission.  The financial statements in this report should be
                  read in  conjunction  with the financial  statements and notes
                  thereto  included  in the Form  10-KSB of NOVADEL  PHARMA INC.
                  (the "Company"), for the year ended July 31, 2002.

NOTE 2   -        PREPAID EXPENSES AND OTHER CURRENT ASSETS:

                  Approximately $86,000 of prepaid supplies;  $41,000 of prepaid
                  insurance;  $2,000  of  employee  loan and  $2000 of other are
                  included in the $131,000 total.

                  OTHER ASSETS:

                  Approximately  $351,000 of security  deposits  are included in
                  the $354,000 total. The remainder is other assets.

                  ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES:

                  Approximately  $221,000 of accrued payroll and related payroll
                  taxes;  $168,000 of accrued employee  vacation and $104,000 of
                  accrued  legal  and  professional  fees  are  included  in the
                  $500,000  total.  The remainder is other accrued  expenses and
                  other current liabilities.

NOTE 3 -          PRIVATE PLACEMENT:

                  During  April  2003,  the  Company  received  net  proceeds of
                  approximately  $2,511,000  from a total of 27.95  Units of the
                  Company's  securities.   Each  Unit  consisted  of  sixty  six
                  thousand, six hundred, sixty seven (66,667) common shares, par
                  value $.001, and sixteen  thousand,  six hundred,  sixty seven
                  (16,667)  warrants.   Each  warrant  entitled  the  holder  to
                  purchase an additional  share of the company's common stock at
                  an exercise price of $2.00 within five (5) years. The terms of
                  the  placement  provide  that  if at any  time  following  the
                  closing of the offering and continuing for a period of two (2)
                  years  thereafter we offer shares of our common stock for sale
                  in a capital raising transaction, we will permit the investors
                  to purchase  such number of shares of common stock to maintain
                  their pro rata  ownership  percentages of NovaDel and that if,
                  at any timed  following  the  closing  of the  offering  for a
                  period  of one  year,  we sold  shares  of  common  stock in a
                  capital raising  transaction (of at least $1 million) at a per
                  share  price less than $1.50,  we will issue to the  investors
                  additional  shares of common stock (so that they would receive
                  their original shares at such lower price).  The sale price of
                  each Unit was  $100,000  ($1.50 per share).  (See also notes 4
                  and 7) As partial  compensation  to the placement  agent,  the
                  Company  became  obligated  to  issue to the  placement  agent
                  warrants to purchase  93,167  shares of the  Company's  common
                  stock at an exercise  price of $1.65 per share.  The  warrants
                  have a term of five (5) years.

                                       6

<PAGE>


NOTE 4 -          STOCK OPTIONS AND WARRANTS:

                  The  Company  follows  the  intrinsic   method  of  Accounting
                  Principles Board Opinion No. 25,  "Accounting for Stock Issued
                  to  Employees"  (APB  25)  and  related   interpretations   in
                  accounting  for  its  employee  stock  options   because,   as
                  discussed   below,   Financial   Accounting   Standards  Board
                  Statement No. 123,  "Accounting for Stock-Based  Compensation"
                  (FAS 123)  requires use of option  valuation  models that were
                  not developed for use in valuing  employee stock options.  FAS
                  123 permits a company to elect to follow the intrinsic  method
                  of APB 25 rather than the  alternative  fair value  accounting
                  provided  under FAS 123, but requires pro forma net income and
                  earnings  per  share  disclosures  as  well as  various  other
                  disclosures not required under APB 25 for companies  following
                  APB 25. The  Company has  adopted  the  disclosure  provisions
                  required under Financial  Accounting standards Board Statement
                  No. 148, "Accounting for Stock-Based  Compensation  Transition
                  and Disclosure"  (FAS 148). Under APB 25, because the exercise
                  price of the Company's  stock options  equals the market price
                  of the underlying  stock on the date of grant, no compensation
                  expense was recognized.

                  Pro forma  information  regarding  net income and earnings per
                  share  is  required  by FAS  123  and FAS  148,  and has  been
                  determined  as if the Company had  accounted  for its employee
                  stock options under the fair value method of that Statement.

                  The Black-Scholes option valuation model was developed for use
                  in estimating  the fair value of traded  options which have no
                  vesting restrictions and are fully transferable.  In addition,
                  options   valuation   models   require  the  input  of  highly
                  subjective  input  assumptions  including  the expected  stock
                  price volatility. Because the Company's employee stock options
                  have  characteristics  significantly  different  from those of
                  traded options,  and because  changes in the subjective  input
                  assumptions can materially affect the fair value estimate,  in
                  management's  opinion,  the existing models do not necessarily
                  provide a reliable  measure of the fair value of its  employee
                  stock options.

                  For  purposes of pro forma  disclosures,  the  estimated  fair
                  value of options is  amortized  to expense  over the  options'
                  vesting period. The Company's pro forma information follows:


<TABLE>
<CAPTION>
                                                                    3 Months Ended                        9 Months Ended
                                                                       April 30,                            April 30,
                                                          ----------------------------------------------------------------------
                                                               2003               2002              2003                 2002
                                                           -------------      -----------       -------------        -----------
<S>                                                        <C>               <C>                <C>                  <C>
Net Loss, as reported                                      $  (871,000)       $                  $ (4,554,000)       $(2,588,000)
                                                                                                                      (2,041,000)
Stock-based employee compensation expense                     (238,000)              --              (437,000)        (1,439,000)
under fair value method, net of related tax effects
                                                           -----------        -----------        ------------        -----------
Pro forma net loss                                         $(1,109,000)       $(2,041,000)       $(4,791,00)         $(4,027,000)
                                                           ===========        ===========        ============        ===========
Loss per share:
            Basic and diluted, as reported                 $      (.06)       $      (.15)       $       (.30)       $      (.25)
                                                           ===========        ===========        ============        ===========
           Basic and diluted, pro forma                    $      (.07)       $      (.15)       $       (.33)       $      (.39)
                                                           ===========        ===========        ============        ===========
</TABLE>


                  In October 2002,  the Company  issued 75,000 options under the
                  1998  Option  Plan and  200,000  Non-Plan  options to its then
                  President. These options vested immediately,  have an exercise
                  price of $1.30 and expire during October 2007.

                  In November 2002,  the Company  decided to extend for one year
                  the expiration  date of its publicly  traded Warrants (i.e. to
                  November  18,  2003).  All other  provisions  of the  Warrants
                  remain unchanged.


                                       7
<PAGE>


                  In December  2002,  pursuant to an employment  agreement  with
                  Gary A. Shangold,  M.D. (see Note 5, below) 1,000,000  options
                  were issued at an  exercise  price of $1.93 per share with a 5
                  year life.  The options vest and become  exercisable  in three
                  equal annual installments commencing December 1, 2003

                  During March 2003, the Company granted an aggregate of 140,000
                  stock   options   under  the   Company's   1998  Option  Plan,
                  exercisable  at $1.51 per share for a term of five (5)  years,
                  to nine (9) employees.

                  In March 2003,  the board issued  10,000 stock options to each
                  of two (2)  directors  under the  Company's  1998 Option Plan.
                  These options have an exercise  price of $1.51 and a term of 5
                  years.

                  In March 2003,  the board issued 100,000  Non-Plan  options to
                  each of two new independent  directors.  These options have an
                  exercise price of $1.51 and a term of 5 years.

                  During  April  2003,  the  Company  received  net  proceeds of
                  approximately  $2,560,000  from a total of 27.95  Units of the
                  Company's  securities.   Each  Unit  consisted  of  sixty  six
                  thousand, six hundred, sixty seven (66,667) common shares, par
                  value $.001, and sixteen  thousand,  six hundred,  sixty seven
                  (16,667)  warrants.   Each  warrant  entitled  the  holder  to
                  purchase an additional  share of the company's common stock at
                  an exercise  price of $2.00  within  five (5) years.  The sale
                  price of each Unit was $100,000  ($1.50 per share).  (See also
                  notes 3 and 7) As partial compensation to the placement agent,
                  the Company became  obligated to issue to the placement  agent
                  warrants to purchase  93,167  shares of the  Company's  common
                  stock at an exercise  price of $1.65 per share.  The  warrants
                  have a term of five (5) years.

Note 5 -          Deferred income tax benefit:

                  During  December  2002,  the  Company  received  approximately
                  $84,000  as  consideration   for  transferring   approximately
                  $1,116,000 of New Jersey net  operating  loss tax benefit to a
                  third party corporation  buyer. The Technology Tax Certificate
                  Transfer Program for transferring net operating loss and R & D
                  tax  benefits  is the  responsibility  of New Jersey  Economic
                  Development Authority.

Note 6 -          Contracts:

                  In  December  2002,  the  Company  entered  into a  three-year
                  employment  agreement with Gary A. Shangold,  M.D. pursuant to
                  which he agreed to serve as the Company's  President and Chief
                  Executive  Officer.  The Company agreed to pay Dr. Shangold an
                  annual  base  salary of  $350,000  and a  guaranteed  bonus of
                  $150,000.  In addition,  Dr.  Shangold is eligible to receive:
                  (i) an annual  discretionary  bonus of up to  $262,500,  which
                  shall be determined at the sole  discretion of the Board;  and
                  (ii) an investment and fee bonus equal to 5% of all amounts up
                  to an aggregate of $7,500,000 (i.e., $375,000) invested in, or
                  earned  by,  the  Company  during  his term.  The  Company  is
                  obligated to pay Dr.  Shangold at least  $200,000 on or before
                  June 30, 2003.  Such investment and fee bonus shall be reduced
                  by certain  proceeds  received by Dr. Shangold from his former
                  employer.  Pursuant to the  agreement,  Dr.  Shangold was also
                  granted  Non-Plan  options  (see Note 3,  above)  to  purchase
                  1,000,000 shares of the Company's common stock (at an exercise
                  price of $1.93 per share) which vest over a three year period.
                  Such options have a term of five (5) years.

                  In March 2003,  the Company  entered  into a 10 year lease for
                  approximately   31,200  sq.   feet  of   office,   laboratory,
                  manufacturing   and  warehouse   space.   These  premises  are
                  presently being fitted-out. Occupancy should begin, in stages,
                  during  the  third   quarter   2003.   When  fully   occupied,
                  anticipated to be during the 4th quarter 2003, the annual rent
                  will be approximately  $300,000 plus a proportionate  share of
                  real estate taxes and common areas.


                                       8
<PAGE>


                  In  April  2003,  the  Company  entered  into  a  license  and
                  development agreement with Manhattan Pharmaceuticals, Inc. for
                  the worldwide,  exclusive rights to the Company's  proprietary
                  lingual   spray    technology   to   deliver    Propofol   for
                  pre-procedural  sedation. The terms of the agreement calls for
                  certain  milestone and other payments,  the first of which was
                  received during June 2003.


Note 7 -          Subsequent Events:

                  In May 2003, the Company entered into a three-year  employment
                  agreement  with  Barry  Cohen  pursuant  to which he agreed to
                  serve as the  Company's  Vice  President,  New  Business & New
                  Product  Development.  The Company  agreed to pay Mr. Cohen an
                  annual base salary of $185,000. Pursuant to the agreement, Mr.
                  Cohen was also  granted  Plan options to purchase up to 75,000
                  shares of the Company's  common stock at an exercise  price of
                  $2.04 per share  (110% of the fair  market  value on the grant
                  date) which  vest,  subject to  conditions,  over a three year
                  period. Such options have a term of ten (10) years.

                  During May 2003, the Company completed a private placement and
                  received  additional net proceeds of approximately  $1,850,000
                  from the  placement of a total of 20.05 Units of the Company's
                  securities.  Each Unit  consisted of sixty six  thousand,  six
                  hundred,  sixty seven (66,667) common shares, par value $.001,
                  and  sixteen  thousand,  six  hundred,  sixty  seven  (16,667)
                  warrants.  Each  warrant  entitles  the holder to  purchase an
                  additional  share of the company's common stock at an exercise
                  price of $2.00  within five (5) years.  The sale price of each
                  Unit  was  $100,000  ($1.50  per  share).  The  terms  of  the
                  placement provide that if at any time following the closing of
                  the  offering  and  continuing  for a period  of two (2) years
                  thereafter  we offer  shares of our common stock for sale in a
                  capital raising  transaction,  we will permit the investors to
                  purchase  such  number of shares of common  stock to  maintain
                  their pro rata  ownership  percentages of NovaDel and that if,
                  at any timed  following  the  closing  of the  offering  for a
                  period  of one  year,  we sold  shares  of  common  stock in a
                  capital raising  transaction (of at least $1 million) at a per
                  share  price less than $1.50,  we will issue to the  investors
                  additional  shares of common stock (so that they would receive
                  their original  shares at such lower price).  For this portion
                  of the private  placement,  the placement agent  received,  as
                  additional  compensation,  warrants to purchase an  additional
                  66,850  shares of the  Company's  common  stock at an exercise
                  price of $1.65 per share.  These  warrants have a term of five
                  (5) years. "See also note 4".


                                       9
<PAGE>

                               NOVADEL PHARMA INC.

Part I, Item 2.  Management's Discussion and Analysis

Novadel  Pharma  inc., a Delaware  corporation  (the  "Company"),  is engaged in
development of novel  application drug delivery  systems for presently  marketed
prescription and over-the-counter ("OTC") drugs and has been a consultant to the
pharmaceutical  industry.  Since  1992,  the  Company  has used  its  consulting
revenues to fund its own product development activities.

Since its  inception,  substantially  all of the  Company's  revenues  have been
derived  from its  consulting  activities.  The  Company  has had a  history  of
recurring losses from operation,  giving rise to an accumulated deficit at April
30, 2003 of approximately  $14,167,000.  For the 9 months ending April 30, 2003,
the Company has had no revenue  from  consulting  as the Company has shifted its
emphasis  away  from  product  development  consulting  for its  clients  and to
development of its own products.

For the  reasons  stated  above,  the  Company  anticipates  that it will  incur
substantial  operating  expenses in connection  with the testing and approval of
its  proposed  delivery  systems,  and  expects  these  expenses  will result in
continuing and significant  operating  losses until such time, if ever, that the
Company is able to achieve adequate sales levels.

In view of the Company's very limited  resources,  its anticipated  expenses and
the  competitive  environment  in which the  Company  operates,  there can be no
assurance  that its  operations  will be sustained  for the duration of the next
fiscal year.

RESULTS OF OPERATIONS

THE NINE MONTHS  ENDED APRIL 2003 [THE "2003  PERIOD"] AND APRIL 2002 [THE "2002
PERIOD"]

Operating  revenues for the 2003 Period decreased  approximately  $335,000 to $0
from $335,000 for the 2002 Period.

Total costs and expenses for the 2003 Period increased approximately  $1,435,000
or 47% to $4,478,000 from $3,043,000 for the 2002 Period. This increase includes
approximately:  $665,000  in  payroll  expenses  primarily  due to the hiring of
additional  employees  and an increase of the vacation pay accrual;  $362,000 in
legal & professional  fees;  $140,000 in laboratory testing and clinical studies
costs;  $129,000 in  consultants  fees  primarily  due to a non-cash  charge for
options issued to consultants; $66,000 in depreciation and amortization expenses
due to the  earlier  purchases  of  internal  laboratory  equipment;  $51,000 in
employee  recruiting;  $47,000 in insurance expenses due to additional employees
and generally increased premiums; $28,000 in inside laboratory expenses; $17,000
in trade  show and  conference  expenses;  $12,000  in  office  expenses  due to
additional  employees;   $11,000  in  automobile  expenses;  $11,000  in  travel
expenses;  $10,000 in outside  services  primarily  due to  environmental  waste
removal costs and $9,000 in rent expenses.

Costs and  expenses  decreases  for the 2003  period,  as  compared  to the 2002
period, includes approximately:  $89,000 in bad debt expense; $32,000 in buy-out
of contract  with a  consultant;  $8,000 in sample  purchases  primarily  due to
returns of earlier purchases and $6,000 in meetings and memberships.

Interest income  increased  approximately  $8,000 or 25% to $40,000 for the 2003
Period  from  $32,000  for the 2002  Period  due to an  increased  average  cash
balance.

Deferred  income  tax  benefit  for the 2003  period was  approximately  $84,000
compared to approximately  $88,000 for the 2002 period.  These benefits resulted
from the sale of the Company's New Jersey net operating losses.

The resulting net loss for the 2003 Period was $4,354,000 (net loss per share of
$0.30)  compared to a net loss of  $2,588,000  (net loss per share of $0.25) for
the 2002 Period.


                                       10
<PAGE>



THE THREE MONTHS ENDED APRIL 2003 [THE "2003  PERIOD"] AND APRIL 2002 [THE "2002
PERIOD"]

Operating  revenues for the 2003 Period  decreased  approximately  $81,000 to $0
from $81,000 for the 2002 Period.

Total costs and expenses for the 2003 Period decreased approximately  $1,261,000
or 59% to $878,000 from $2,139,000 for the 2002 Period.  This decrease  includes
approximately:  $1,369,000  in  consultants  fees;  $18,000 in travel  expenses;
$12,000 in trade  shows and  conferences  and $7,000 in  laboratory  testing and
clinical studies expenses.

Costs and  expenses  increases  for the 2003  period,  as  compared  to the 2002
period, includes approximately: $145,000 in payroll expense primarily due to the
hiring of  additional  employees  and an increase of the  vacation  pay accrual;
$42,000 in legal & professional  fees;  $20,000 in depreciation and amortization
expense  due to the  earlier  purchases  of internal  laboratory  equipment  and
$13,000 in public company expenses due to increased directors' fees.

Interest income  decreased  approximately  $10,000 or 59% to $7,000 for the 2003
period from $17,000 for the 2002 period due to a decreased average cash balance.

The  resulting  net loss for the 2003 Period was $871,000 (net loss per share of
$0.06)  compared to a net loss of  $2,041,000  (net loss per share of $0.15) for
the 2002 Period.

LIQUIDITY AND CAPITAL RESOURCES

Net cash  used in  operating  activities  approximated  $2,965,000  for the 2003
Period  compared  to net cash  used in  operating  activities  of  approximately
$810,000 for the 2002 Period. Net cash used in operating activities for both the
2003 and 2002 periods was primarily  attributable  to the net loss of $4,354,000
and  $2,588,000,  respectively.  For the  2003  period,  $264,000  was  used for
investing  activities  compared to $179,000  for the 2002  Period.  For the 2003
period, $2,511,000 was received from financing activities compared to $4,934,000
for the 2002 period. Total cash flow for the 2003 period decreased approximately
$718,000 as compared to a $3,945,000 increase for the 2002 period.

In  May 2003, the Company completed its private placement, raising an additional
$2,006,000  of equity (see note 7). Before the end of the calendar year, it will
be  necessary for the Company to obtain additional financing and/or consummate a
strategic  alliance  with  a well funded business partner. There are a number of
risks and uncertainties related to the Company's attempt to complete a financing
or strategic partnering arrangement that are outside the control of the Company.
We  may  not  be  able  to  successfully  obtain  additional  financing on terms
acceptable  to  the  Company,  or  at all. These uncertainties raise substantial
doubt  as to the Company's ability to continue as a going concern. The Company's
auditors have qualified their audit opinion with regard to the Company's ability
to  continue  as  a  going  concern.

INFLATION

The Company does not believe  that  inflation  has had a material  effect on its
results  of  operations  during  the past three  fiscal  years.  There can be no
assurance  that the Company's  business will not be affected by inflation in the
future.

Part 1, Item 3.  Controls and Procedures

Within the 90-day period prior to the date of this report,  our Chief  Executive
Officer and Chief  Financial  Officer  performed an evaluation of our disclosure
controls and  procedures,  which have been designed to permit us to  effectively
identify and timely  disclose  important  information.  They  concluded that the
controls and procedures  were effective.  Since the date of the  evaluation,  we
have made no  significant  changes in our internal  controls or in other factors
that could significantly affect our internal controls.



                                       11
<PAGE>




                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

               None

Item 2.  Changes in Securities

         During April 2003, the Company received gross proceeds of approximately
         $2,795,000  from  the  placement  of a  total  of  27.95  Units  of the
         Company's securities.  Each Unit consisted of sixty six thousand,   six
         hundred,  sixty  seven  (66,667)  common shares,  par value $.001,  and
         sixteen thousand,   six hundred,   sixty seven (16,667) warrants.  Each
         warrant  entitled  the holder to  purchase an  additional  share of the
         company's  common  stock at an exercise  price of $2.00 within five (5)
         years. The sale price of each Unit was $100,000 ($1.50 per share).  The
         placement agent (Paramount Capital) was paid  compensation of seven and
         one  half  percent (7.5%) of the gross proceeds (($209,625) plus a  non
         accountable  expense  allowance  of $25,000  and  160,017  warrants  to
         purchase additional shares of the Company's common stock at an exercise
         price of $2.00 within five years.

Item 3.  Defaults Upon Senior Securities

               N/A

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

             On  March  28,  2003,   the  Company  held  an  annual  meeting  of
             stockholders to vote on the election of directors, the ratification
             of the  Company's  independent  auditors  and an  amendment  to the
             Company's 1998 Stock Option Plan. Of the  14,548,509  shares of the
             Company's Common Stock entitled to vote at the meeting,  holders of
             11,643,462  shares were  present in person or were  represented  by
             proxy at the meeting.

             The directors  elected at the meeting and the results of the voting
             were as follows:

                                                        For          Withheld
                                                     ----------     ---------
             Gary A. Shangold, M.D                   11,643,462         0
             Harry A. Dugger III, Ph.D               11,643,462         0
             John H. Klein                           11,643,462         0
             Robert F. Schaul, Esq                   11,643,462         0
             William F. Hamilton, Ph.D               11,643,462         0
             Lawrence J. Kessel, M.D., FACP          11,643,462         0

             The above  represented all of the directors of the Company on March
             28, 2003.

             The shares  voted  regarding  the Board of  Directors'  proposal to
             select  the  accounting  firm of Wiss & Company,  LLP,  to serve as
             independent auditors of the Company, were as follows:

             For:                   11,640,962
             Against:                        0
             Abstain:                    2,500

             The shares  voted  regarding  the Board of  Directors'  proposal to
             amend the Company's 1998 Stock Option Plan, were as follows:

             For:                   11,488,162
             Against:                  155,300
             Abstain:                        0

Item 5.  Other Information

               N/A


                                       12
<PAGE>


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


         (a)   List of Exhibits

<TABLE>
<CAPTION>
<S>                            <C>
               Exhibit 10.28    Lease  Agreement  dated March 19, 2003,  between
                                the Company and Macedo Business Park, II, L.L.C.

               Exhibit 10.29    Amendment #1 of Lease Agreement dated March 19,
                                2003, between the Company and Macedo Business
                                Park, II, L.L.C.

               Exhibit 10.30    Employment Agreement dated May 23, 2003, between the
                                Company and Barry C. Cohen.

               Exhibit 11.      Statement re: computation of earnings per share for
                                the nine months ended April 30, 2003

               Exhibit  99.1.   Certification of Chief Executive Officer and
                                Chief Financial Officer

          b)   Reports on Form 8-K

               None

</TABLE>




                                       13
<PAGE>

                                   SIGNATURES

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



                               NOVADEL PHARMA INC



Dated:                             By:
June 18, 2003                               /S/ GARY SANGOLD, M.D.
                                            ----------------------
                                            Gary Shangold, M.D., President
                                            (Principal Executive Officer)



Dated:                             By:
June 18, 2003                               /S/ DONALD J. DEITMAN
                                            ---------------------
                                            Donald J. Deitman
                                            Chief Financial Officer





                                       14
<PAGE>


                                  CERTIFICATION

I, GARY SHANGOLD, M.D., certify that:

1. I have reviewed this quarterly report on Form 10-QSB of NovaDel Pharma Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) Designed  such  disclosure  controls and  procedures  to ensure that
material  information  relating to the  registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         b) Evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date"); and

         c)  Presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date.

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

         a) All significant  deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors and material weaknesses in internal controls; and

         b) Any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:       June 18, 2003


Gary Shangold, M.D.
President & Chief Executive Officer

/s/ GARY A. SHANGOLD, M.D.
--------------------------
     (Signature)


                                       15
<PAGE>



                                  CERTIFICATION

I, DONALD J. DEITMAN, certify that:


1. I have reviewed this quarterly report on Form 10-QSB of NovaDel Pharma Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) Designed  such  disclosure  controls and  procedures  to ensure that
material  information  relating to the  registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         b) Evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date"); and

         c)  Presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date.

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

         a) All significant  deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors and material weaknesses in internal controls; and

         b) Any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:    June 18, 2003

Donald J. Deitman
Chief Financial Officer


/s/ DONALD J. DEITMAN
-----------------------
 (Signature)



                                       16
<PAGE>