SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-K

            -----
              X    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
            -----     OF THE SECURITIES EXCHANGE ACT OF 1934


                      FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997
                                     -- or --
            -----
                   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
            -----       OF THE SECURITIES EXCHANGE ACT OF 1934

                        FOR THE TRANSITION PERIOD FROM      TO
                                                       ----    ----

                                ---------------
                                     0-25250
                             COMMISSION FILE NUMBER

                            OSTEX INTERNATIONAL, INC.
              EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER

                               STATE OF WASHINGTON
          STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION

                                   91-1450247
                      I.R.S. EMPLOYER IDENTIFICATION NUMBER

          2203 AIRPORT WAY SOUTH, SUITE 400, SEATTLE, WASHINGTON 98134
                                  206-292-8082
           ADDRESS AND TELEPHONE NUMBER OF PRINCIPAL EXECUTIVE OFFICES

                                ---------------

          Securities registered pursuant to Section 12(b) of the Act:
                    (none)                        (none)
                TITLE OF CLASS        EACH EXCHANGE ON WHICH REGISTERED

           Securities registered pursuant to Section 12(g) of the Act:
                          COMMON STOCK, $.01 PAR VALUE
                                 TITLE OF CLASS
                                ---------------

    Indicate  by  checkmark  whether  the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter  period that the
registrant was required to file such reports),              Yes [ X ]   
and (2) has been subject to such filing requirements for 
the past 90 days.                                           No  [   ]


    Indicate by check mark if disclosure of delinquent  filers  pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the  best  of  registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K.                                    [   ]    

                                ---------------

    The  aggregate  market  value of the  voting  and  non-voting  stock held by
non-affiliates  of the  registrant  was  approximately  $23,308,000 on March 17,
1998, based on the per-share closing price of $2.28 on the Nasdaq Stock Market.

                The number of shares of Common Stock outstanding as of March 27,
1998 was 12,696,250.

                                ---------------
                       DOCUMENTS INCORPORATED BY REFERENCE

(1) Portions of the  Registrant's  Annual Report to Shareholders  for the fiscal
year ended December 31, 1997 is  incorporated  by reference into Part I, Part II
and Part III of this Form 10-K. 
(2)  Portions of the  Registrant's  Proxy  Statement  for the  Registrant's
Annual  Shareholders  Meeting  to be held  Monday,  May 18,  1998,  to be  filed
pursuant to Regulation  14A is  incorporated  by reference into Part III of this
Form 10-K.




<PAGE>



                            OSTEX INTERNATIONAL, INC.

                               INDEX TO FORM 10-K

                                     PART I

                                                               PAGE
                                                               ----
ITEM 1 -   BUSINESS                                              2

ITEM 1A -  RISK FACTORS                                          4

ITEM 1B -  EXECUTIVE OFFICERS OF THE REGISTRANT                  8

ITEM 2 -   PROPERTIES                                            9

ITEM 3 -   LEGAL PROCEEDINGS                                     9

ITEM 4 -   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS   9

                                     PART II

ITEM 5 -   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED 
           SHAREHOLDER MATTERS                                   10

ITEM 6 -   SELECTED FINANCIAL DATA                               10

ITEM 7 -   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
           CONDITION AND RESULTS OF OPERATIONS                   10

ITEM 8 -   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA           10

ITEM 9 -   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 
           ACCOUNTING AND FINANCIAL DISCLOSURE                   10

                                    PART III

ITEM 10 -  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT    11

ITEM 11 -  EXECUTIVE COMPENSATION                                11

ITEM 12 -  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS 
           AND MANAGEMENT                                        11

ITEM 13 -  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS        11

                                     PART IV

ITEM 14 -  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS 
           ON FORM 8-K                                           12

SIGNATURES                                                       16





<PAGE>




<PAGE>



For the purpose of this Form 10-K,  the following  capitalized  terms shall have
the following meanings:

       "Company" or "Ostex" shall mean Ostex International, Inc., a Washington 
       corporation;

       "Annual Report to Shareholders"  shall mean the annual report to 
shareholders of Ostex  International, Inc. for the year ended December 31, 
1997; and

       "Proxy   Statement"   shall  mean  the  proxy   statement  for  the  1998
shareholders  meeting of Ostex  International,  Inc. to be held Monday,  May 18,
1998, to be filed with the Securities and Exchange Commission (the "Commission")
pursuant to Regulation 14A.




                                     PART I

ITEM 1.    BUSINESS

       Ostex was incorporated in the State of Washington in 1989. The Company is
engaged in the  discovery  and  commercialization  of products  associated  with
osteoporosis and other collagen-related  diseases. The Company believes that its
lead product, the OSTEOMARK -registered trademark- test, incorporates 
breakthrough technology in the area of bone resorption  measurement.  Ostex
has   formed   collaborative   relationships   with   leading   diagnostic   and
pharmaceutical  companies to aid in the  commercialization  of Osteomark.  As of
December 31, 1997, the Company had 56 employees.

       Osteoporosis is a significant  health problem.  According to the National
Osteoporosis  Foundation (the "NOF"),  osteoporosis  afflicts  approximately  28
million people in the U.S. alone. Additionally millions of people are at risk of
skeletal  degradation  associated  with  Paget's  disease of bone,  cancer  that
metastasizes  to  bone,  hyperparathyroidism  (overactivity  of the  parathyroid
gland, characterized by a reduction of bone mass) and renal osteodystrophy.  In
spite  of  the  serious  human  and  economic  consequences  of  these  diseases
(according  to the NOF, the direct  healthcare  and indirect  lost  productivity
costs of osteoporosis  exceed $10 billion annually in the U.S.  alone),  medical
intervention usually commences only after pain, immobility,  fractures, or other
symptoms have appeared. The Company expects the osteoporosis  therapeutic market
will increase significantly.  The Company also believes new therapeutic products
are under development for osteoporosis, some of which are in late-stage clinical
trials,  and  that  the  Osteomark  test can be used to  effectively  predict  a
patient's  response to osteoporosis  therapy and monitor existing  therapies and
other therapies which may be developed.

       The Company is the exclusive licensee of the Osteomark technology,  known
clinically  as the NTx assay,  which is a urine test that can aid in  healthcare
decision-making  at  early  menopause  and  beyond.  The  Osteomark  assay  is a
non-invasive  diagnostic  test which  quantitatively  indicates the level of
bone  resorption.  Individuals  who are losing bone collagen at accelerated
rates may indicate a condition  which  typically  results in  osteoporosis.  The
Company  believes that early  identification  of high levels of bone  resorption
provides the opportunity to predict skeletal  response (bone mineral density) to
hormonal resorptive therapy in postmenopausal  women and helps prevent the onset
of  osteoporosis.  The  Company  also  believes  that the  Osteomark  assay aids
clinicians   in   monitoring   the  effects  of   antiresorptive   therapies  in
postmenopausal  women,  as well as in  older  patients  who  have  already  lost
significant bone mass.

       On May  8,  1995,  the  Company's  Osteomark  assay  became  commercially
available in the United States as a urinary  assay that provides a  quantitative
measure of the excretion of cross-linked N-telopeptides of Type I collagen (NTx)
as an indicator of human bone resorption,  and in July 1996 the Company received
expanded claims from the Food and Drug Administration (the "FDA") for the assay.
The 1996 claims allow that an Osteomark test measurement,  if taken prior to the
initiation  of  hormonal  antiresorptive  therapy,  can be utilized to predict a
patient's  response to that  therapy,  in terms of its effect on  bone
mineral  density.  Additionally,  the claims allow that the test can be used for
therapeutic  monitoring of antiresorptive  therapies in postmenopausal women, as
well as individuals  diagnosed with  osteoporosis and Paget's  disease,  and for
therapeutic  monitoring  of  estrogen-suppressing  therapies.  In March 1998 the
claims were further  expanded by allowing  that, in addition to the 1996 claims,
an Osteomark test  measurement  can identify the  probability  for a decrease in
bone mineral density in postmenopausal women taking calcium supplements
relative to those treated with antiresorptive therapy.

<PAGE>

       The Company is manufacturing  and marketing the Osteomark assay initially
in an  Enzyme-linked  Immunosorbent  Assay  ("ELISA")  format for testing  urine
samples.  Worldwide  promotion of the Osteomark  test kits is also  supported by
Johnson & Johnson Clinical Diagnostics,  Inc. ("Johnson & Johnson"). In 1995 the
Company entered into research,  development,  license and supply agreements with
Johnson &  Johnson.  These  agreements  grant  Johnson  &  Johnson a license  to
manufacture,  sell and distribute certain products using Ostex's bone resorption
technology.  Currently,  Johnson & Johnson  distributes in the United States and
certain foreign  countries the Osteomark assay in the existing  microtiter plate
format and is adapting the urine assay for use with its automated analyzer.  The
companies  intend to adapt the serum assay for use on  high-speed,  high volume,
automated instruments typically used in large clinical laboratories.  Ostex will
receive  royalties on Johnson & Johnson's  sales of products  incorporating  the
Ostex technology.

       Under the Johnson & Johnson license agreement,  the Company has the right
to license its technology for use on automated  instruments to one other company
in addition  to Johnson & Johnson.  The Company is  currently  evaluating  other
potential  collaborators  to adapt  the  Osteomark  assay  to  other  high-speed
automated instruments.

       In the year ended  December 31, 1997,  the  Company's  largest  customer,
Johnson & Johnson,  accounted for  approximately  24% of the  Company's  product
sales  and  research  testing   services.   The  termination  of  the  Company's
relationship  with Johnson & Johnson could have a material adverse effect on the
Company's results of operations.

       Ostex has also entered into a research and  development  agreement  and a
license agreement with Mochida Pharmaceutical Co., Ltd. ("Mochida"),  a Japanese
pharmaceutical  company,  for the  commercialization  of the Osteomark  assay in
Japan.  Under the research and development  agreement,  Mochida has an option to
license the NTx serum assay and has paid Ostex $3,350,000 in development fees to
date.  Future  payments of $750,000  under the  agreement  are  contingent  upon
Mochida's decision to exercise its option.  Under the license  agreement,  Ostex
granted Mochida  exclusive  marketing and  distribution  rights to certain Ostex
products in Japan.  Since 1992,  Mochida has paid Ostex  $2,500,000 in licensing
fees for the  Osteomark  assay.  In January 1998 Mochida  launched the Osteomark
assay in Japan for the management of patients with  hyperparathyroidism  and for
patients with  metastatic  bone tumors.  Ostex will to sell Mochida the critical
reagents to be assembled into finished products in Japan by Mochida.

       The Company also plans to develop the Osteomark  assay in other  formats,
including  formats suitable for use in the physician's  office.  The Company has
entered into agreements with Hologic,  Inc.  ("Hologic"),  a worldwide leader in
X-ray and ultrasound bone  densitometers  used to measure bone density to assist
in the diagnosis and monitoring of  osteoporosis  and other bone  diseases,  and
Metrika,  Inc.  ("Metrika"),  a diagnostic device company,  to develop physician
office "point-of-care" Osteomark assay devices.

         The Company and Metrika are  developing  a  point-of-care  NTx test as
an indicator of bone resorption  which uses a hand-held,  fully  disposable
device that computes NTx values and displays them digitally. Additionally, Ostex
and Hologic are developing a low-cost point-of-care NTx test for bone resorption
based on the Osteomark assay pursuant to a joint  development  agreement.  Under
this agreement, the companies,  working with Serex, Inc. ("Serex"), will develop
and  market  a  point-of-care   Osteomark  test,  utilizing  Serex's  strip-test
technology and a hand-held, battery-operated meter that computes NTx values upon
insertion of the strip.  Ostex  believes  that the joint product will reduce the
cost and simplify the process of obtaining patient results.

       OSTEOMARK  and OSTEX are  registered  United  States  trademarks of Ostex
International,  Inc. The Company has also registered its OSTEOMARK  trademark in
42 other countries. Additional trademark applications are pending.

       The Company's collagen resorption assay technology is covered by 17 U. S.
patents,  2 European  patents,  2  Australian  patents,  and  patents in Canada,
Ireland, Spain, Hong Kong, and Singapore. The European patents are in opposition
proceedings  before the European Patent Office.  Additional patent  applications
are pending in Japan and elsewhere.

       The Company's  research and development  expenditures,  all of which were
funded by the Company, totaled $4,470,000,  $3,163,000, and $3,200,000, in 1997,
1996, and 1995, respectively.


<PAGE>

       The Company's foreign product sales, all to  non-affiliates,  totaled 
$652,000,  $370,000,  $528,000,  in 1997, 1996 and 1995, respectively.  
Foreign sales were primarily to Europe and Japan.

         The Company is in the latter stages of adapting the Osteomark  assay to
a serum format. The Company believes that the use of a serum NTx test provides a
number of advantages to testing  laboratories,  including the elimination of the
requirement  to  normalize  NTx  values  to  creatinine   concentration  and  to
ultimately  perform NTx testing on random  access,  automated  analyzers.  Ostex
plans to  initiate  clinical  studies  of its serum NTx test in an ELISA  format
during the second quarter of 1998.

         The Company is  developing  an assay for Type II collagen  degradation.
This  type  of  collagen   is  a  primary   constituent   of  joint   cartilage.
Osteoarthritis,  a  degenerative  disease of joint  cartilage,  affects  over 15
million  people in the United  states  alone.  The  disease  first  appears in a
limited  number  of  joints.  The  first  symptom,   joint  pain,  occurs  after
substantial  cartilage damage has taken place.  Eventually,  pain and tenderness
increase and the joint  motion  becomes  diminished.  The Ostex Type II collagen
assay under development has been designed to allow reliable  monitoring of joint
cartilage  changes for validating the  effectiveness of drugs under  development
and for identifying patients with early-stage  disease. In addition,  similar to
the Osteomark assay used in connection with  osteoporosis,  the Company believes
that the Type II assay will aid in the  clinical  management  of  osteoarthritis
patients by monitoring the effectiveness of therapy.

         Ostex  is  investigating  the use of its NTx  test  in  cancer  patient
management. Independent researchers have shown that the level of bone resorption
increases  significantly when cancer metastasizes to bone. A patient's NTx level
may be useful to identify  cancer  patients  with high bone  turnover  who might
warrant a bone scan to confirm  the stage  (degree  of  spread) of the  disease.
The  American  Cancer  Society  estimated  that over  200,000  new cases of
prostate  cancer would be diagnosed in 1997,  with 60%-80%  progressing  to bone
metastases.

         Ostex is also in the early stages of  developing an assay for measuring
Type III collagen degradation. Type III collagen is a significant constituent of
blood vessels such as coronary arteries.  Measuring  degradation of this type of
collagen may be useful in identifying cardiovascular disease.

ITEM 1A. RISK FACTORS

     When   used  in  this   discussion,   the  words   "believes,"   "intends,"
anticipates,"  "plans to" and "expects" and similar  expressions are intended to
qualify as  forward-looking  statements.  Such statements are subject to certain
risks and  uncertainties  and there are a number of important factors that could
cause actual results to differ  materially from those  projected.  These factors
include, among others, the factors described under "Management's  Discussion and
Analysis of Financial  Condition and Results of  Operations--Other  Factors that
May Affect  Operating  Results" in the Company's  Annual Report to  Shareholders
(which  discussion  has been  incorporated  herein  by  reference)  and the risk
factors set forth below.  Readers are cautioned  not to place undue  reliance on
such  forward-looking  statements,  which speak only as of the date hereof.  The
Company  undertakes  no  obligation  to  release  publicly  the  results  of any
revisions to such forward-looking  statements that may be made to reflect events
or  circumstances  after  the  date  hereof  or to  reflect  the  occurrence  of
unanticipated events.

UNCERTAINTY OF MARKET ACCEPTANCE

       The Company's  lead product,  the Osteomark  assay,  became  commercially
available  in May 1995 in the  United  States  and  sales of this  product  have
increased  over time.  However,  there can be no  assurance  that the  Company's
Osteomark  assay or any of its  other  products  will gain  acceptance  from the
medical community, clinical or hospital laboratories,  physicians or patients as
readily as other forms of diagnosis or any newly developed diagnostic. There can
be no  assurance  that the Company  will be able to develop  significant  market
share for its products,  or any market share at all. Inability of the Company to
achieve market  acceptance for its products would have a material adverse effect
on the Company's business, financial condition and results of operation.

DEPENDENCE ON CORE TECHNOLOGY; UNCERTAINTY OF ADAPTATION TO DIFFERENT FORMATS

       The Company currently relies exclusively upon its core technology for the
development  of  diagnostic  products  associated  with  osteoporosis  and other
collagen-related  diseases.  There can be no assurance  that  competitors of the
Company  will  not  be  successful  in  developing  new  or  more  efficient  or
cost-effective  diagnostics  that are more readily  accepted  than the Company's
products.  The Company is in the process of undertaking  ongoing and significant
additional  research  and  development  to adapt  its core  technology  to serum
testing and to different formats,  instruments and other delivery platforms that
currently  exist or may be developed.  In  particular,  additional  research and
development  will be  required  to adapt  its  core  technology  to  high-speed,
high-volume  automated instruments typically used in large clinical laboratories


<PAGE>

or  companies  through  which the  Company may seek to expand the market for its
products.  There can be no  assurance  that the Company  will be  successful  in
adapting and further  developing  its core  technology  to meet such needs.  The
Company is developing physician office adaptations of its core technology. There
can be no assurance  that the Company or its  development  partners  will either
successfully develop or obtain required regulatory approval for a cost-effective
instrument  for  physician  office use. In  addition,  technological  changes or
medical advancements could diminish or eliminate the commercial viability of the
Osteomark assay or future products based upon the Company's core technology. The
failure to adapt the Company's core technology to different formats, instruments
and  other  delivery   platforms,   or  otherwise  to  commercialize  such  core
technology,  would have a material  adverse  effect on the  Company's  business,
financial condition and results of operation.

RELIANCE ON COLLABORATIVE AGREEMENTS AND CERTAIN RELATIONSHIPS

     The Company has entered into  collaborative  or  co-promotional  agreements
with several  partners,  including,  among others,  Johnson & Johnson,  Mochida,
Hologic,  Wyeth-Ayerst  Laboratories,and Metrika and intends to appoint a second
international  distributor for its NTx test on automated instruments.  The level
of each partner's involvement and support and the amount and timing of resources
that these  collaborators  devote to these activities are not within the control
of the Company and can significantly impact the Company's ability to achieve its
objectives.  There can be no  assurance  that these  collaborators  will perform
their  contractual  obligations  as expected or that the Company will derive any
additional  revenue from such  arrangements.  Moreover,  the  agreements  may be
terminated under certain circumstances. The Company expects to rely on these and
additional  agreements to develop and commercialize  its future products.  There
can be no  assurance  that  the  Company  will be able to  negotiate  acceptable
collaborative  agreements in the future or that such new  agreements or existing
agreements will be successful.  In addition,  there can be no assurance that the
parties to the agreements will not pursue alternative technologies.

       In the year ended  December 31, 1997,  the  Company's  largest  customer,
Johnson & Johnson,  accounted for  approximately  24% of the  Company's  product
sales  and  research  testing   services.   The  termination  of  the  Company's
relationship  with Johnson & Johnson could have a material adverse effect on the
Company's results of operations.

LIMITED SALES AND MARKETING EXPERIENCE

       The Company has limited experience in sales,  marketing and distribution.
To market any of its products directly, the Company must develop and implement a
substantial  marketing and sales effort with technical  expertise and supporting
distribution capability.  The Company intends to continue to market and sell its
products in the U.S.  through  national  distributors  and its own limited sales
force and to market and sell its products in other markets through  distributors
or collaborative  arrangements.  There can be no assurance that the Company will
be able to establish effective sales and distribution capabilities or that it or
its  collaborators  will be  successful  in gaining  market  acceptance  for the
Company's  products or that the  Company  will  achieve or maintain  significant
market share for its products.

DEPENDENCE ON LICENSED PATENTS AND PROPRIETARY RIGHTS

       The Company's  success depends,  in large part, on its current and future
patent position  relating to its core technology.  The Company's patent position
involves  complex  legal and factual  questions.  The  Company is the  exclusive
licensee  of certain  patents  within and  outside of the U.S.  relating  to the
Company's core technology. The Company is dependent upon the Washington Research
Foundation  (the  "WRF") for the filing and  prosecution  of patents  and patent
applications licensed to the Company.  Claims made under patent applications may
be  denied  or  significantly  narrowed,  and  issued  patents  may not  provide
significant commercial protection to the Company. There is no assurance that the
Company's patents will not be successfully challenged or circumvented by others.
The Company could incur substantial costs in proceedings  before the U.S. Patent
Office, including interference proceedings.  These proceedings could also result
in adverse  decisions  as to the  patentability  of the  Company's  licensed  or
assigned  inventions.  There can be no assurance that the Company's  products do
not or will not  infringe  on the patent or  proprietary  rights of others.  The
Company may be required  to obtain  additional  licenses to the patents or other
proprietary  rights of others.  The Company may also require  licenses  from the
inventors of certain  processes,  technologies  and delivery formats in order to
successfully  market certain  products.  There can be no assurance that any such
licenses would be made available on terms acceptable to the Company,  if at all.
If the  Company  needs and cannot or does not  obtain  such  licenses,  it could
encounter delays in product  introductions  while it attempts to circumvent such
patents or the  development,  manufacture,  or sale of products  requiring  such
licenses  could be  precluded.  The Company  believes  there will continue to be
significant  litigation in the industry  regarding patent and other intellectual
property rights.


<PAGE>

       The Company is aware of competitors that are developing products that may
be covered by claims  made in patents  or patent  applications  of the  Company.
Because certain foreign patents are subject to third-party  opposition following
the date of grant of such patents,  there can be no assurance that claims of the
Company's foreign patents,  once granted,  will survive such opposition  without
cancellation  or  significant   modification.   Because  U.S.  applications  are
confidential  until a patent  issues,  the  Company  cannot be assured  that its
patent  claims  have  priority  in the  U.S.  or  will  be  entitled  to  patent
protection.

       The Company also relies on trade secrets and other unpatented proprietary
technology.  No assurance can be given that the Company can meaningfully protect
its rights in such unpatented  technology or that others will not  independently
develop substantially equivalent products and processes or otherwise gain access
to the Company's technology.  The Company seeks to protect its trade secrets and
proprietary  know-how,  in  part,  with  confidentiality   agreements  with  its
employees and consultants.  There can be no assurance that these agreements will
not be breached, that the Company will have adequate remedies for any breach, or
that  the  Company's  trade  secrets  will  not  otherwise  become  known  or be
independently  developed  by  competitors.  In addition,  protracted  and costly
litigation  may be necessary to enforce and  determine the scope and validity of
the Company's proprietary rights.

LENGTHY REGULATORY PROCESSES AND UNCERTAINTY OF REGULATORY APPROVALS

       The process of obtaining FDA and other required regulatory  clearance can
be lengthy and expensive.  The time required for FDA approvals is uncertain, and
often depends on the type,  complexity and novelty of the product.  There can be
no  assurance  that the FDA will act  favorably  or quickly in its review of any
submission  by  the  Company,  and  significant  difficulties  or  costs  may be
encountered  by the  Company in its efforts to obtain FDA clearance  that could
delay or preclude the Company from  marketing its products.  Furthermore,  there
can be no assurance that the FDA will not request the  development of additional
data following original  submissions,  causing the Company to incur further cost
and delay.  Nor can there be any  assurance  that the FDA will not  restrict the
intended use of a submitted product as a condition for clearance.

       If the FDA  concludes  that a device is not  substantially  equivalent to
another legally marketed device, submission of a pre-market approval application
("PMA") will be required.  If the FDA  indicates  that a PMA is required for any
product of the Company,  the application  will require  submission of results of
clinical studies and manufacturing  information,  and likely a review by a panel
of experts  outside of the FDA.  Clinical  studies would need to be conducted in
accordance  with FDA  requirements.  The failure to comply  would  result in the
FDA's refusal to accept the data or the imposition of regulatory sanctions.  FDA
review of a PMA application can take significantly longer than that for a 510(k)
"device"   premarket   notification   procedure  to   demonstrate   "substantial
equivalence"  to a legally  marketed  product.  Further,  if a company wishes to
propose  modifications  to a  product  subsequent  to  FDA  approval  of  a  PMA
application, including changes in indications or other significant modifications
to labeling,  or modifications  to the  manufacturing  process,  or if a company
wishes to change its  manufacturing  facility,  a PMA  supplement  must first be
submitted to the FDA for its review and approval.

EXTENSIVE CONTINUING GOVERNMENT REGULATION

       The research,  development,  manufacturing and marketing of the Company's
products are subject to extensive continuing regulation by numerous governmental
authorities  in the U.S.  and certain  other  countries,  and the  Company,  its
products,  and its manufacturing  facilities are subject to continual review and
periodic  inspection.  The regulatory  standards for  manufacturing  are applied
stringently by the FDA. Discovery of previously unknown problems with a product,
manufacturer,  or  facility  may  result  in  restrictions  on such  product  or
manufacturer  or facility,  including  warning  letters,  fines,  suspensions of
regulatory  approvals,  product  recalls,  operating  restrictions,   delays  in
obtaining new product approvals,  withdrawal of the product from the market, and
criminal prosecution. Other violations of FDA requirements can result in similar
penalties.  The Company is also  subject to numerous  environmental,  health and
workplace  safety laws and  regulations,  including those  governing  laboratory
procedures,  exposure to blood-borne pathogens, and the handling of biohazardous
materials.  Any violation of, and the cost of  compliance  with,  these laws and
regulations  could  adversely  impact the Company's  operations.  The Company is
unable to predict the extent or likelihood of adverse government regulation that
might arise from future U.S. or foreign government action.


<PAGE>

LIMITED MANUFACTURING EXPERIENCE

         The Company is developing adaptations of its core technology for use in
physicians'  offices and  depends  upon the  efforts of  collaborators  for this
development.  Such  adaptations  have not been  completed  and  there  can be no
assurance  that, if  developed,  such  adaptations  could be  manufactured  in a
commercially  viable manner.  Unless the Company  develops  additional  in-house
manufacturing  capability for such  products,  it will be dependent upon outside
sources for the manufacture of such products. There can be no assurance that the
Company's reliance on others for the manufacture of its products will not result
in problems with product supply.  Interruptions  in the availability of products
could delay or prevent the development and commercial marketing of the Company's
products.

HISTORY OF LOSSES AND LIMITED OPERATING HISTORY

       The Company has a limited  operating  history and had a retained  deficit
through  December 31, 1997 of $24,128,000.  For the year-end  December 31, 1997,
the Company had a net loss of $2,264,000 ($8,464,000,  excluding a non-recurring
receipt of $6,200,000 from the settlement of a dispute with Boehringer  Mannheim
GmbH. The Company expects to incur additional substantial costs as it continues
with its operations, marketing efforts, research and development activities, and
clinical  trials.  The Company  expects to  continue  to incur  losses in future
periods and the Company is unable to predict  when,  if at all, it will  achieve
profitability.

FUTURE CAPITAL NEEDS AND UNCERTAINTY OF ADDITIONAL FINANCING

       The Company will continue to require  substantial  funds for research and
development, general and administration,  and the marketing of its products. The
amount of the Company's future capital requirements will depend on many factors,
including  the status of the  development  of its  products,  the time and costs
involved  in  obtaining  regulatory  approvals,  the costs  involved  in filing,
prosecuting  and enforcing  patent claims,  competing  technological  and market
developments,  the ability of the Company to maintain existing collaborative and
licensing  arrangements,  and  the  ability  of the  Company  to  establish  new
collaborative and licensing arrangements.  The Company expects that its existing
capital  resources will be sufficient to fund the Company's  activities  through
1999. However,  the Company may be required to seek additional  financing before
the end of 1999.  There  can be no  assurance  that  additional  funds,  whether
through  additional  financings,   collaborative   arrangements  with  corporate
sponsors or other sources,  will be available,  if at all, in a timely manner or
on terms  acceptable to the Company.  If adequate funds are not  available,  the
Company  may be required to delay,  scale back or  eliminate  one or more of its
programs  or obtain  funds  through  arrangements  that are  unfavorable  to the
Company.

INTENSE COMPETITIVE ENVIRONMENT

       Competition   from   biotechnology   companies,   diagnostic   companies,
pharmaceutical  companies and research and academic  institutions is intense.  A
number of diagnostic  tests and  procedures,  and other  non-invasive  tests for
osteoporosis  and  other  bone  disorders  currently  exist  and  others  are in
development, and the manufacturers of these tests will continue to improve them.
In addition,  the diagnostic industry is subject to rapid technological  change.
There can be no assurance  that the  Company's  competitors  will not succeed in
developing  products that are more  effective  than those which have been or are
being  developed  by the  Company  or which  would  render  the  Company's  core
technology obsolete or non-competitive.  Many of the Company's  competitors have
substantially greater financial, technical and human resources than the Company.
In addition, many of these competitors have significantly greater experience and
resources than the Company in undertaking  clinical trials and other  regulatory
approval  procedures  as  well  as  in  marketing  and  achieving  manufacturing
efficiencies.   There  are  also   small   companies,   academic   institutions,
governmental  agencies  and other  research  organizations  that are  conducting
research in the area of osteoporosis and other collagen-related  diseases. These
entities  may also  market  commercial  products  either on their own or through
collaborative  efforts.  The Company's  competitors may develop technologies and
products that are  available  for sale prior to the  Company's  products or at a
lower cost or with better  technical  characteristics  rendering  the  Company's
products less competitive.

DEPENDENCE ON THERAPEUTICS DEVELOPED BY OTHERS

       Acceptance of and demand for the diagnostic  products that the Company is
developing  will be affected by the need  perceived  by  physicians  to diagnose
bone,  cartilage and connective  tissue disorders for the purposes of treatment.
There  are  currently  a limited  number  of  therapies  that are  effective  in
preventing osteoporosis or other bone, cartilage or connective tissue disorders,
or in treating these disorders once diagnosed. In the event new therapies do not
receive regulatory approval or experience delayed market acceptance, the Company
could be adversely affected.  Unfavorable  publicity concerning a product of the

<PAGE>

Company or  therapeutic  products  for  osteoporosis  could also have an adverse
effect on the  Company's  ability to obtain  regulatory  approvals or to achieve
market acceptance.

UNCERTAINTY OF HEALTHCARE REIMBURSEMENT

       The Company's  ability to commercialize  its products will depend in part
on the extent to which  reimbursement  for the cost of such products and related
treatment will be available from third-party  payors,  such as government health
administration   authorities,   private  health  coverage   insurers  and  other
organizations.  The  status of the scope of  healthcare  programs  worldwide  is
uncertain and there can be no assurance that adequate  third-party coverage will
be available for the Company to maintain price levels sufficient for realization
of an appropriate return on its investment in product  development.  Third-party
payors are increasingly  challenging the price and cost effectiveness of medical
products and services.  If the Company succeeds in bringing one or more products
to the market,  there can be no assurance that these products will be considered
cost  effective  and that  reimbursement  to the  consumer  will be available or
sufficient to allow the Company to sell its products on a competitive basis.

VOLATILITY OF STOCK PRICE

       The volatility of the Company's stock price has been significant since it
first became  publicly  traded in January 1995.  The stock market may experience
significant price and volume fluctuations unrelated to the operating performance
of particular companies. Factors such as any loss of key management, the results
of the Company's clinical trials or those of its competitors, adverse regulatory
actions or decisions, evidence regarding the safety or efficacy of the Company's
products or those of its competitors, announcements of technological innovations
or new  products by the  Company or its  competitors,  governmental  regulation,
developments  with respect to patents or other  proprietary  rights,  product or
patent  litigation or public  concern as to the safety of products  developed by
the  Company  may have a volatile  effect on the market  price of the  Company's
Common Stock.


ITEM 1B.   EXECUTIVE OFFICERS OF THE REGISTRANT

The executive officers of the Company and their ages are as follows:

NAME                      AGE                POSITION
-----                     ---                --------
Thomas A. Bologna         49       President and Chief Executive Officer

Thomas F. Broderick       49       Vice President, Patent and General Counsel

Donna J. DeLong           49       Vice President, Marketing

Robert M. Littauer        49       Senior Vice President, Finance and 
                                   Administration and Secretary

Nancy J.S. Mallinak       36       Vice President, Regulatory and Clinical 
                                   Affairs

William K. Strelke        44       Vice President, Sales

       There were no family relationships  between any executive officers of the
Company.

       THOMAS A. BOLOGNA  joined the Company in July 1997 as the  President  and
Chief Executive Officer and as a member of the Board of Directors.  From January
1996  until  July  1997  Mr.  Bologna  was a  principal  in  Healthcare  Venture
Associates, a consulting firm. From January 1994 to January 1996 Mr. Bologna was
President and Chief  Executive  Officer for Scriptgen  Pharmaceuticals,  Inc., a
biotechnology  company  with  proprietary  drug  screening  technology  that  is
developing  orally active drugs to regulate gene expression,  and from July 1987
to January  1994 Mr.  Bologna  was the  Chairman of the Board of  Directors  and


<PAGE>

President and Chief Executive Officer of Gen-Probe Incorporated, a biotechnology
company  commercializing   genetic-probe-based  technology  for  diagnostic  and
therapeutic applications.

       THOMAS F.  BRODERICK  was named the Vice  President,  Patent and  General
Counsel  in  November  1997.  Mr.  Broderick  was Vice  President,  Intellectual
Property from March 1997 to November 1997 and was Patent Counsel for the Company
from April 1996 to March 1997.  From 1989 to March  1996,  Mr.  Broderick  was a
partner at the patent law firm of Christensen,  O'Connor,  Johnson & Kindness in
Seattle, Washington.

       DONNA  DELONG  joined the  Company in  February  1998 as Vice  President,
Marketing.  From May 1996 to February  1998,  Ms. DeLong was Senior  Director of
Marketing at Chiron Diagnostics,  a division of Chiron Corporation, a healthcare
company;  from  October  1993 to April of 1996,  Ms.  DeLong was the Director of
Marketing at Neopath Inc., a medical diagnostics  company;  and from May 1990 to
October 1993 Ms.  DeLong was the  Director of  Marketing  at Sanofi  Diagnostics
Pasteur, a medical diagnostics company.

       ROBERT M.  LITTAUER  joined the Company in September  1996 as Senior Vice
President, Finance and Administration, and was appointed the Corporate Secretary
in November  1997.  From 1987 to September  1996,  Mr.  Littauer was Senior Vice
President,  Chief  Financial  Officer  and  Treasurer  of NeoRx  Corporation,  a
biotechnology   company   developing   therapeutic   products   for  cancer  and
cardiovascular diseases.

       NANCY J.S.  MALLINAK was named Vice  President,  Regulatory  and Clinical
Affairs of the Company in February 1997. Ms.  Mallinak was Director,  Regulatory
and  Clinical  Affairs for the Company  from June 1995 to February  1997 and was
Manager,  Regulatory and Clinical  Affairs for the Company from December 1992 to
June 1995. From June 1989 to December 1992, Ms.  Mallinak was Manager,  Clinical
Product  Development in the Diagnostics Group of Baxter  International,  Inc., a
general healthcare company.

       WILLIAM K. STRELKE was named Vice  President,  Sales in November 1997. Mr
Strelke was Vice  President,  Sales and  Marketing  for the Company from October
1994 to  November  1997,  and was the  Director of Sales and  Marketing  for the
Company from January 1994 to October 1994.  Prior to joining Ostex,  Mr. Strelke
served  from March 1993 to  January  1994 at  Mitchell  International,  Inc.,  a
healthcare  facility design and construction  consulting  company,  where he was
Vice  President  and Regional  Director.  From  January 1983 to March 1993,  Mr.
Strelke held various  positions with  responsibility  for sales and distribution
management  with  the  Scientific  Products  Division  of  Baxter  International
(previously American Hospital Supply Corporation), a general healthcare company.


ITEM 2.     PROPERTIES

       The  Company's  research  laboratories,   manufacturing  operations,  and
administrative  offices are located in Seattle,  Washington.  The Company leases
approximately  32,000  square  feet of space in Seattle  under a lease that will
expire in 2005. The Seattle facility has adequate capacity for the Company's 
present needs.


ITEM 3.     LEGAL PROCEEDINGS

       Information   regarding  Legal  Proceedings  is  incorporated  herein  by
reference to note 11 in the "Notes to Financial  Statements"  on pages 32 and 33
of the Annual Report to Shareholders.


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

       No matters  were  submitted to a vote of  shareholders  during the fourth
quarter ended December 31, 1997.


<PAGE>





                                     PART II

ITEM 5.    MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED SHAREHOLDER MATTERS

       Information regarding the Common Stock trading activity for 1997 and 1996
is  incorporated  herein by reference to the  "Shareholder  Information  - Price
Range of Common Stock" on page 36 of the Annual Report to Shareholders, which is
included as Exhibit 13.0 to this Annual Report on Form 10-K.

       As of March 17,  1998,  there  were  12,696,250  shares  of Common  Stock
outstanding  held of record  by  approximately  154  shareholders.  The  Company
believes there are approximately 3,600 additional owners of Common Stock who own
shares held in street name.

       The Company has never paid cash dividends and has no present intention of
paying dividends in the foreseeable future.

       TRANSFER  AGENT AND REGISTRAR - The transfer  agent and registrar for the
Common Stock is ChaseMellon Shareholder Services, L.L.C., Seattle, Washington.


ITEM 6.    SELECTED FINANCIAL DATA

       The information required by this item is incorporated herein by reference
to "Selected  Financial  Data" on page 20 of the Annual Report to  Shareholders,
which is included as Exhibit 13.0 to this Annual Report on Form 10-K.


ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
           RESULTS OF OPERATIONS

       The information required by this item is incorporated herein by reference
to pages  21-23 of the  Annual  Report to  Shareholders,  which is  included  as
Exhibit 13.0 to this Annual Report on Form 10-K.

ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

       Not Applicable


ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

       The information required by this item is incorporated herein by reference
to the Financial Statements and "Notes to Financial  Statements" on pages 24-33,
and "Report of Independent Public  Accountants" on page 34, of the Annual Report
to Shareholders, which is included as Exhibit 13.0 to this Annual Report on Form
10-K.


ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND 
           FINANCIAL DISCLOSURE

       None.




<PAGE>



                                    PART III

ITEM 10.   DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

       a.  Directors

       The information  contained in the section entitled "Election of Directors
and  Director  Information"  of the Proxy  Statement is  incorporated  herein by
reference in response to this item.

       b.  Executive Officers of the Registrant

       Information  required by this item is  contained in Part I of this Annual
Report  on  Form  10-K  in  the  section  entitled  "Executive  Officers  of the
Registrant."

       c.  Compliance With Section 16(a)

       Information  contained in the section  entitled  "Compliance with Section
16(a) of the  Exchange  Act" of the Proxy  Statement is  incorporated  herein by
reference in response to this item.


ITEM 11.   EXECUTIVE COMPENSATION

       The   information   contained   in  the   section   entitled   "Executive
Compensation"  of the Proxy  Statement  is  incorporated  herein by reference in
response to this item.


ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

       The information  contained in the section entitled "Security Ownership of
Certain Beneficial Owners and Management" of the Proxy Statement is incorporated
herein by reference in response to this item.


ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

       The information contained in the section entitled "Compensation Committee
Interlocks and Insider  Participation"  of the Proxy  Statement is  incorporated
herein by reference in response to this item.





<PAGE>



                                     PART IV

ITEM 14.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

       (A) FINANCIAL STATEMENTS, FINANCIAL STATEMENT SCHEDULES AND EXHIBITS

       The  information  contained  in the  Financial  Statements  and "Notes to
Financial  Statements"  are  located  on pages  24-33 of the  Annual  Report  to
Shareholders and are listed below.  This information is included as Exhibit 13.0
to this Annual Report on Form 10-K.

                                                         Page within
       FINANCIAL STATEMENTS                             ANNUAL REPORT
       --------------------                             -------------
       Balance Sheets                                        24
       Statements of Operations                              25
       Statements of Cash Flows                              26
       Statements of Shareholders' Equity                    27
       Notes to Financial Statements                         28
       Report of Independent Public Accountants              34

       (B) REPORTS ON FORM 8-K

       None












<PAGE>


       (C)  EXHIBIT INDEX (13)

                                  EXHIBIT INDEX

       EXHIBIT NUMBER      DESCRIPTION
       --------------      -----------
       (8)   3.1           Articles of Incorporation, as amended, 
                           dated January 1997

       (1)   3.2           Bylaws, as amended

       (1)   4.1           Specimen Common Stock Certificate

       (1) 10.1A           Amended and Restated Stock Option Plan
       (1) 10.1B           Form of Employee Stock Option Agreement
       (1) 10.1C           Form of Director's Stock Option Agreement

       (9)  10.2           Amended and Restated Directors' Nonqualified Stock
                           Option Plan dated July 16, 1997

       (9)  10.3           Amended and Restated 1994 Stock Option Plan

                           Agreements with Hologic, Inc.
       (3)(12)10.4A         Co-Promotion and Sales Representation Agreement 
                              dated January 14, 1997
       (3)(12)10.4B         Joint Development, License and Supply Agreement 
                              dated January 14, 1997

       (1)  10.5           Form of  Indemnification Agreement with officers 
                           and directors

                           Agreement with Thomas A. Bologna
            10.7              Executive Employment Agreement dated July 16, 1997

                           Agreements with Mochida Pharmaceutical Co., Ltd.
       (1)10.12A              Research and Development Agreement dated August 
                              1992
       (1)10.12B              Osteomark License Agreement Dated August 1992

       (3)10.12D              Second Amendment to Osteomark License Agreement 
                              dated December 24, 1997

                           Agreements with the Washington Research Foundation
       (1)10.13A              Restated Exclusive License Agreement effective 
                              June 19, 1992 (Urinary Assay for Measuring Bone 
                              Resorption)
       (1)10.13B              Amendment to Restated Exclusive License Agreement
                              effective January 1, 1993
       (1)10.13C              Second Amendment effective June 2, 1994
       (1) 10.14              Exclusive License Agreement dated February 10, 
                              1994 (O-CSF)

                           Agreements with the University of Washington
       (3)(12)10.15A          Research Agreement dated July 1, 1996 (Molecular 
                              Markers of Connective Tissue Degradation)
       (3)(12)10.15B          Research Agreement dated October 1, 1996 (Role 
                              of O-CSF in Osteoclast Regulation)

       (1)10.16A           Know-How Transfer and Consulting Agreement dated 
                           September 18, 1989 with David R. Eyre, Ph.D.
       (1)10.16B           Extension and Amendment dated May 1, 1992

       (1) 10.19           Osteomark EIA Exclusive Distribution License 
                           Agreement dated March 28, 1994 with Technogenetics 
                           S.R.L. (division of Recordati Pharmaceutical)

       (1) 10.20           Osteomark EIA Distribution License Agreement dated 
                           July 12, 1994 with BRAHMS Diagnostic (formerly 
                           Henning Berlin GmbH)



<PAGE>



       EXHIBIT NUMBER      DESCRIPTION
       --------------      -----------   
       (1)10.23            Osteomark Agreement dated February 12, 1993, as 
                           amended May 10, 1994, with Nichols Institute 
                           Reference Laboratory

       (1)10.25            License Agreement dated July 8, 1994  with 
                           Endrocrine Sciences

       (1)10.26            License Agreement dated August 1994 with 
                           Pacific Biometrics, Inc.

                           Lease Agreements
       (4)10.27A              Lease Agreement dated October 2, 1995, with David
                              A. Sabey and Sandra L. Sabey
       (8)10.27B              First Amendment of Lease dated October 15, 1996, 
                              with the City of Seattle,  successor-in-interest 
                              to David A. Sabey and Sandra L. Sabey

                           Agreements with Johnson & Johnson Clinical 
                           Diagnostics, Inc.
       (5)10.28A              Distribution Agreement dated June 7, 1995
       (5)10.28B              Research, Development, License and Supply 
                              Agreement dated June 7, 1995

       (4)10.29            Clinical Laboratory Services License and Supply 
                           Agreement dated October 25, 1995, with SmithKline 
                           Beecham Clinical Laboratories, Inc.
       
          10.30            Promotion Agreement dated September 30, 1997 with 
                           Wyeth-Ayerst Laboratories
  
       (6)10.31            Agreement with Laboratory Corporation of Americao 
                           Holdings (LabCorp), dated January 11, 1996

       (7)10.32            Joint Development, License and Co-Marketing 
                           Agreement dated April 10, 1997 with Metrika, Inc.

       (10)10.33           Form of CS First Boston Corporation Warrant

       (11)10.34           Form of Invemed Associates, Inc. Warrant

       (2)10.35            Shareholder Rights Agreement dated January 21, 1997

           13.0           Selected Financial Data,  Management's  Discussion and
                          Analysis  of  Financial   Condition   and  Results  of
                          Operations,  Financial  Statements  and  Notes  to the
                          Financial  Statements from the Company's Annual Report
                          to Shareholders for the year ended December 31, 1997

           23.1           Consent of Arthur Andersen LLP

           27.1           Financial Data Schedule

-----------------------------

(1)    Incorporated herein by reference from Item 16(a) of Registrant's 
Form S-1 Registration Statement as declared effective January 24, 1995 
(No. 33-86118).
(2)    Incorporated herein by reference to exhibit number 4.5 filed with Form 
8-A with the Commission in January 1997.
(3)    Confidential  treatment  requested.  Exhibit  omits  information  that 
has  been  filed  separately  with  the Commission.
(4)    Incorporated  herein by reference to exhibit of the same number  filed 
with Form 10-K with the  Commission  for the year ended December 31, 1995.
(5)    Incorporated  herein by reference to exhibit of the same number  filed 
with Form 10-Q with the  Commission  for the quarter ended June 30, 1995.
(6)    Incorporated  herein by reference to exhibit of the same number  filed 
with Form 10-Q with the  Commission  for the quarter ended March 31, 1996.
(7)    Incorporated  herein by reference to exhibit of the same number  filed 
with Form 10-Q with the  Commission  for the quarter ended September 30, 1997.
(8)      Incorporated  herein by  reference  to exhibit of the same number filed
 with Form 10-K with the  Commission  for the year  ended  December  31, 1996.
(9)    Incorporated  herein by  reference  to exhibit of the same number  filed
with Form S-8 with the  Commission  on January 13, 1998.
(10)     Incorporated  herein by reference to exhibit number 1.1A filed with the
Registrant's  Form S-1  Registration  Statement  as declared  effective 
January 24, 1995 (No. 33-86118).
(11)     Incorporated  herein by reference to exhibit number 1.1B filed with the
Registrant's  Form S-1  Registration  Statement  as declared  effective
January 24, 1995 (No. 33-86118).
(12)     Incorporated  herein by  reference to exhibits of the same number filed
with Form 10-K with the  Commission  for the year  ended  December  31, 1996, 
and as amended with Form 10-K/A on October 17, 1997.
(13) Copies of exhibits  may be  obtained  at  prescribed  rates from the Public
Reference Section of the Commission at 450 5th Street NW, Room 1024, Washington,
D.C. 20549, or through the Commission's  Edgar system located on the internet at
www.sec.gov.



<PAGE>




                                   SIGNATURES


    Pursuant  to the  requirements  of  Section  13 or 15(d)  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 on March 27, 1998.

                                               OSTEX INTERNATIONAL, INC.


                                               By  /S/ THOMAS A BOLOGNA
                                               ------------------------
                                                   Thomas A. Bologna
                                                  President and Chief
                                            Executive Officer and Director



    Pursuant to the  requirements  of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
Registrant and in the capacities and on the dates indicated.


      SIGNATURE                  CAPACITIES                   DATE
      ---------                  ----------                   ----
                               
/S/THOMAS A. BOLOGNA            President and
------------------------    Chief Executive Officer           March 27, 1998
 Thomas A. Bologna       (principal executive officer)


/S/ ROBERT M. LITTAUER    Senior Vice President, Finance
------------------------ and Administration and Secretary     March 27, 1998
  Robert M. Littauer     (principal financial and principal 
                               accounting officer)

                           
   /S/ THOMAS J. CABLE      Chairman of the Board
------------------------        of Directors                  March  27, 1998
   Thomas J. Cable             
                                  
 /S/ ELISABETH L. EVANS                           
------------------------                                      March 27, 1998
  Elisabeth L. Evans              Director


   /S/ DAVID R. EYRE              Director                    March 27, 1998
------------------------
     David R. Eyre

 /S/ FREDRIC J. FELDMAN
------------------------          Director                    March 27, 1998
   Fredric J. Feldman

  /S/ GREGORY D. PHELPS
------------------------          Director                    March 27, 1998
   Gregory D. Phelps


------------------------          Director                    March 27, 1998
    Gilbert S. Omenn

   /S/ JOHN H. TRIMMER            Director                    March 27, 1998
------------------------
     John H. Trimmer