<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 three month period ended OCTOBER 31, 2002

               ____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.  14,534,739 shares of common
stock outstanding as of October 31, 2002.

           TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE):

                                 YES___  NO X_



<PAGE>

                               NOVADEL PHARMA INC.

                                 BALANCE SHEETS
<TABLE>
<CAPTION>


                                                                  October 31      July 31,
                                                                    2002           2002
                                                                  (Unaudited)     (Note 1)
                                                               -------------- -------------
<S>                                                                  <C>            <C>
                                  ASSETS
CURRENT ASSETS:
  Cash                                                          $  2,211,000   $ 3,314,000
  Accounts receivable - trade, less allowance for
    doubtful accounts of $88,000 at October 31, 2002 and
    July 31, 2002                                                          0         1,000
  Prepaid expenses and other current assets                          111,000        96,000
                                                               -------------- -------------
            Total Current Assets                                   2,322,000     3,411,000
                                                               -------------- -------------

FURNITURE, FIXTURES, AND EQUIPMENT, LESS
  ACCUMULATED DEPRECIATION                                           478,000       406,000

OTHER ASSETS                                                          23,000        22,000
                                                               -------------- -------------
                                                                $  2,823,000   $ 3,839,000
                                                               ============== =============
           LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

CURRENT LIABILITIES:
  Accounts payable-trade                                        $    183,000   $   125,000
  Accrued expenses and other current liabilities                     251,000       191,000
                                                               -------------- -------------
    Total Current Liabilities                                        434,000       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  14,534,739 and 14,448,817;
           respectively                                               15,000        14,000
   Additional paid-in capital                                     13,901,000    13,322,000
   Accumulated Deficit                                           (11,527,000)   (9,813,000)
                                                               -------------- -------------
           Total Stockholders' Equity (Deficiency)                 2,389,000     3,523,000
                                                               -------------- -------------
                                                                $  2,823,000   $ 3,839,000
                                                               ============== =============
</TABLE>

See accompanying notes to financial statements.

                                        2

<PAGE>

                               NOVADEL PHARMA INC.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                        Three Months Ended
                                            October 31
                                         2002         2001
                                     ------------  -----------
<S>                                     <C>           <C>


CONSULTING REVENUES                  $         0   $   72,000

CONSULTING, SELLING, GENERAL AND
    ADMINISTRATIVE EXPENSES            1,729,000      324,000
                                     ------------  -----------

LOSS FROM OPERATIONS                  (1,729,000)    (252,000)

INTEREST INCOME                           15,000        5,000
                                     ------------  -----------

NET LOSS                             $(1,714,000)  $ (247,000)
                                     ============  ===========

BASIC AND DILUTED LOSS PER SHARE     $      (.12)  $     (.03)
                                     ============  ===========
SHARES USED IN COMPUTATION OF BASIC
     AND DILUTED LOSS PER SHARE       14,509,523    7,724,900
                                     ============  ===========

</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
THREE MONTHS ENDED OCTOBER
 31, 2002  -
Shares issued for Warrants exercised       85,922    1,000       (1,000)             -              -
Options issued for services                     -        -      573,000              -        573,000
Warrants issued for services                    -        -        7,000              -          7,000
  Net Loss                                      -        -            -     (1,714,000)    (1,714,000)
                                      -----------  -------  ------------  -------------  -------------
BALANCE, October 31, 2002              14,534,739  $15,000  $13,901,000   $(11,527,000)  $  2,389,000
                                      ===========  =======  ============  =============  =============
</TABLE>



See accompanying notes to financial statements.

                                        4

<PAGE>
                               NOVADEL PHARMA INC.

                             STATEMENT OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                         Three Months Ended
                                                                             October 31
                                                                     -------------------------
                                                                         2002         2001
                                                                     ------------  -----------
<S>                                                                      <C>           <C>
CASH FLOW FROM OPERATING ACTIVITIES:
  Net loss                                                           $(1,714,000)  $ (247,000)
  Adjustments to reconcile net income (loss) to net cash
      flows from operating activities:
      Options issued for services                                        573,000            -
      Warrants issued for services                                         7,000            -
      Depreciation and amortization                                       37,000       12,000
      Changes in operating assets and liabilities:
           Accounts receivable                                             1,000     (143,000)
           Prepaid expenses and other current assets                     (15,000)       7,000
           Due from Joint Venture partner for reimbursable expenses            -       (4,000)
           Accounts payable - trade                                       58,000       26,000
           Accrued expenses and other current liabilities                 60,000      142,000
                                                                     ------------  -----------
          Net cash flows from operating activities                   $  (993,000)  $( 207,000)
                                                                     ------------  -----------


CASH FLOWS FROM INVESTING ACTIVITIES -
  Purchase of property and equipment                                    (110,000)     (15,000)
                                                                     ------------  -----------
       Net cash flows from investing activities                         (110,000)  $  (15,000)
                                                                     ------------  -----------

NET CHANGE IN CASH                                                    (1,103,000)  $( 222,000)
CASH, BEGINNING OF PERIOD                                              3,314,000      585,000
                                                                     ------------  -----------
CASH, END OF PERIOD                                                    2,211,000   $  363,000
                                                                     ============  ===========
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. The Company
               believes that its current cash levels together with revenues from
               operations,  will  be sufficient to satisfy its cash requirements
               for the next five (5) months. However, beyond this point there is
               substantial  doubt  about  the  Company's  ability  to  continue
               operations  without  obtaining  additional  financing  and/or
               consummating  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  $71,000 of prepaid supplies, approximately $15,000
               of  prepaid  insurance  and approximately $8,000 of employee loan
               are  included  in  the  $111,000  total.  The  remainder is other
               prepaid  expenses.

               ACCRUED  EXPENSES  AND  OTHER  CURRENT  LIABILITIES:

               Approximately  $143,000  of  accrued  clinical  study  costs,
               approximately $66,000 of accrued employee vacation, approximately
               $20,000  of accrued legal and professional fees and approximately
               $11,000 of accrued payroll and related payroll taxes are included
               in  the  $251,000  total. The remainder is other accrued expenses
               and  other  current  liabilities.

NOTE  3  -     STOCK  OPTIONS  AND  WARRANTS:

               In October 2002, the Company issued 75,000 options under the 1998
               option  plan and 200,000 non-plan options to its president. These
               options  vest  immediately,  have  an exercise price of $1.30 and
               expire  during  October  2007.

               In  November  2002,  the  Company  extended  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.

                                        6

<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
October  31, 2002 of approximately $11,527,000.  Revenues from consulting may be
expected to continue to decline in the future as the Company shifts its emphasis
away from product development consulting for its clients and towards 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.

RESULTS  OF  OPERATIONS

THE  THREE  MONTHS  ENDED OCTOBER 2002 [THE "2002 PERIOD"] AND OCTOBER 2001 [THE
"2001  PERIOD"]

Operating  revenues  for  the  2002 Period decreased approximately $72,000 to $0
from  $72,000  for  the  2001  Period.

Total  costs and expenses for the 2002 Period increased approximately $1,405,000
to  $1,729,000  from  $324,000  for  the  2001  Period.  This  increase includes
approximately:  $783,000  in outside consultant fees primarily due to a non-cash
charge of approximately $580,000 for options and warrants issued to consultants;
$208,000  in  legal  & professional fees;  $148,000 in payroll expense primarily
due  to  additional  employees  and the establishment of a vacation pay accrual;
$140,000  in  laboratory  testing  and  clinical  studies  costs;  $25,000  in
depreciation  and  amortization  expense due to the earlier purchase of internal
laboratory  equipment;  $22,000  in  insurance  expenses;  $16,000 in laboratory
expenses  due  to  additional  lab  employees  requiring additional supplies and
services;  $10,000  in office expenses due to increased activities and a Company
name  change; $9,000 increase in travel expenses; and a $7,000 increase in rent.

Interest  income  increased approximately $10,000 to $15,000 for the 2002 Period
from  $5,000  for  the  2001  Period  due  to an increased average cash balance.

The resulting net loss for the 2002 Period was $1,714,000 compared to a net loss
of  $247,000  for  the  2001  Period.

LIQUIDITY  AND  CAPITAL  RESOURCES

Net  cash used in operating activities approximated $967,000 for the 2002 Period
compared  to net cash used in operating activities of approximately $207,000 for
the  2001  Period.  Net  cash used in operating activities for both the 2002 and
2001  periods  was  primarily  attributable  to  the  net loss of $1,714,000 and
$247,000,  respectively.  For  the  2002 Period, approximately $110,000 was used
for  investing activities compared to approximately $15,000 for the 2001 Period.
For  the  2002  period, approximately $26,000 was used for financing activities.
Total  cash  flow  for  the  2002  period  decreased approximately $1,103,000 as
compared  to  a  $222,000  decrease  for  the  2001  period.

The  Company  believes that it currently has sufficient cash to satisfy its cash
requirements  for  at  least  the  next  five  (5)  months.

                                        7

<PAGE>

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.



                           PART II.  OTHER INFORMATION

Item 1.     Legal Proceedings

            None

Item 2.     Changes in Securities

            In  August  2002,  the  Company  issued  85,922  common shares to
            satisfy  the  cashless  exercise  of  136,482  warrants.

Item 3.     Defaults Upon Senior Securities

            N/A

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

            N/A

Item 5.     Other Information

            N/A

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


            (a)  List of Exhibits

                 Exhibit 11.    Statement re: computation of earnings per share
                                for  the  three  months ended October 31, 2002

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

             b)  Reports on Form 8-K

                 None

                                        8

<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:  December 10, 2002               By:  /s/ Harry A. Dugger, III
        -----------------                    -----------------------------------
                                             Harry  A.  Dugger,  III,  President
                                             (Principal  Executive  Officer)



Dated:  December 10, 2002               By:  /s/  Donald J. Deitman
       ------------------                    -----------------------------------
                                             Donald  J.  Deitman
                                             Chief  Financial  Officer








                                        9


<PAGE>

                                  CERTIFICATION

I, Harry A. Dugger III, Ph.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:  December 10, 2002
       -----------------

Harry A. Dugger III, Ph.D
President & Chief Executive Officer

/s/ Harry A. Dugger III
-----------------------
     (Signature)

                                       10

<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: December 10, 2002
      -----------------

Donald J. Deitman
Chief Financial Officer

/s/ Donald J. Deitman
---------------------
    (Signature)

                                       11


<PAGE>