SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[  X  ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                            SECURITIES ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998

                                       OR

[      ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
EXCHANGE ACT OF 1934

           FOR THE TRANSITION PERIOD FROM _______________ TO __________________
                                 EUROMED, INC.
             (Exact name of registrant as specified in its charter)

                         COMMISSION FILE NUMBER 0-27720

<TABLE>
<S>                                                                                       <C>              

                                 NEVADA                                                    88-0317700
                     (State or other jurisdiction of                                    (I.R.S. Employer
                     incorporation or organization)                                    Identification No.)


                       8214 Westchester, Suite 500
                               DALLAS, TX                                                     75225
                (Address of principal executive offices)                                   (Zip Code)
</TABLE>

                                 (214) 220-0693
              (Registrant's telephone number, including area code)

           Indicate  by check  mark  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),  and (2) has been subject to such
filing requirements for the past 90 days.

                                    Yes No X

As of  December 01, 1997, there were 1,407,000 shares outstanding of the 
registrant's common stock, $0.01 par value.
     





<PAGE>


                                      INDEX

                          PART I. FINANCIAL INFORMATION

                                                                        PAGE NO.
                                                                 --------------

ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED):
<TABLE>
<S>                                                                                             <C>     
 

                  Balance Sheets -
                           December 31, 1997 and September 30, 1998                                 3

                  Statements of Operations - 
                           Three months and nine months ended September 30, 1997 and 1998           4

                  Statements of Cash Flows -
                           Nine months ended September 30, 1997 and 1998                            5

                  Notes to Financial Statements                                                     6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS7


                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS                                                                          9

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                        10

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                                            11
</TABLE>
 











<PAGE>




                                                                      1
                                  EUROMED, INC.

                                 BALANCE SHEETS
<TABLE>
<CAPTION>


                                                                       December 31,          September 30,
                                                                            1997                     1998
                                                                                               (Unaudited)

                                     ASSETS
<S>                                                                     <C>                  <C>

Current Assets
     Cash                                                                $   232,170         $   299,900
     Receivables -
         Proceeds from sale of subsidiary                                    670,000               -
         Due from EuroMed Europe, B.V.                                       300,000             300,000
         12% Unsecured note receivable, due
              November 6, 1998                                                    -               300,000
     Prepaid assets                                                                   -            25,000
                                                                       ----------------      ------------

         TOTAL CURRENT ASSETS                                              1,202,170               924,900
                                                                       -----------           -----------

         TOTAL ASSETS                                                    $ 1,202,170           $   924,900
                                                                  ===========                    ===========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Accounts payable and accrued liabilities                          $     88,223          $            -
                                                                       ------------          --------------

         TOTAL CURRENT LIABILITIES                                           88,223                      -
                                                                            --------------

Stockholders' Equity
     Common Stock, par value $.01 per share;
         20,000,000 shares authorized; 1,430,000
         shares issued and outstanding                                       14,300                14,300
     Additional paid-in capital                                          10,167,138            10,167,138
     Retained (deficit)                                                  (8,935,241)           (9,124,288)
                                                                        -----------           -----------
                                                                           1,246,197            1,057,150
     Less:  23,000 Treasury Shares, at cost                                 (132,250)            (132,250)
                                                                                   ------------

         TOTAL STOCKHOLDERS' EQUITY                                        1,113,947              924,900
                                                                                       -------------
         TOTAL LIABILITIES AND
           STOCKHOLDERS' EQUITY                                          $ 1,202,170           $   924,900
                                                                           ===========        ===========

</TABLE>



                            See accompanying notes to
                             financial statements.

                                  EUROMED, INC.

                            STATEMENTS OF OPERATIONS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                     Three months ended                Nine months ended
                                                 September 30,    September 30,     September 30,    September 30
                                                         1997       1998               1997               1998
                                                 ------------------                 ------------------------------------   - --
<S>                                                  <C>                    <C>             <C>      <C>

Sales                                                $            - $              $             - $
Cost of goods sold                                                -                              -
                                                     -------------- -------------  ---------------

   Gross profit                                               -                -                 -            -

Selling, general and administrative expenses              147,839         60,240           591,359     (189,047)
                                                     ------------    -----------      ------------   ----------
Operating Profit (Loss)                                (147,839)         (60,240)         (591,359)    (189,047)

Income tax (expense) benefit                                           -               -                 -               -
                                                     ----------------------------------- ----------------- ---------------

(Loss) from continuing operations                      (147,839)         (60,240)         (591,359)    (189,047)

Discontinued operations:
   Loss from discontinued operations                   (271,051)               -          (713,695)           -
   Estimated loss on disposal of
       discontinued operations                           (918,986)               -       (918,986)               -
                                                     -----------------------------    -----------  ---------------

       Net (loss)                                    $(1,337,876)     $  (60,240)      $(2,224,040)  $ (189,047)
                                                     ===========      ==========       ===========   ==========

Weighted Average Number of
   Common Shares Outstanding                           2,300,000       1,430,000         3,320,000    1,430,000
                                                     ===========      ==========       ===========   ==========
(Loss) per share:
   Continuing operations                             $     (.06) $       (.04)          $    (.18)     $   (.13)
   Discontinued operations -
       Loss on operations                                  (.12)               -              (.21)           -
       Estimated loss on disposal of
           discontinued operations                            (.40)            -              (.28)            -
                                                     ------------- -------------    -------------- -------------

               Total                                 $        (.58) $       (.04)    $        (.67)$       (.13)
                                                     =============  ============     ============= ============

 
</TABLE>











                            See accompanying notes to
                             financial statements.



<PAGE>


                         EUROMED, INC. AND SUBSIDIARIES

                            STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)
<TABLE>
<S>                                                                      <C>                     <C>       

                                                                                        Nine months ended
                                                                       September 30,             September 30,
                                                                             1997                         1998
                                                                       -----------------         -------------

CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss) from continuing operations                                     $(591,359)             $(189,047)

Changes in operating assets and liabilities:
     Prepaid expenses                                                         5,590                  (25,000)
     Accounts payable                                                       151,075                  (88,223)
                                                                          ---------               ----------

         Net cash (used in) continuing operations                          (434,694)                (302,270)
                                                                            ---------                 ---------

     Net cash provided by discontinued operations                        407,937                              -
                                                                       ---------                 --------------

         Net cash (used in) operating activities                            (26,757)                (302,270)
                                                                         ----------                ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Proceeds from sale of subsidiary                                             -                  670,000
     Note receivable advance                                                      -                 (300,000)
                                                                       ------------                ---------

         Net cash provided by investing activities                                -                370,000
                                                                       ------------              ---------

Net increase (decrease) in cash and cash equivalents                        (26,757)                67,730

Cash and cash equivalents
     at the beginning of the nine month period                               26,757                  232,170
                                                                         ----------                ---------

Cash and cash equivalents
     at the end of the nine month period                               $          -              $ 299,900
                                                                       ============              =========

Cash paid during the nine month period:
     Interest                                                          $          -              $          -
     Income taxes                                                      $          -               $      -

</TABLE>






                            See accompanying notes to
                             financial statements.



<PAGE>


                         EUROMED, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 1998


a.   Interim Financial Statements

The consolidated  financial information for the interim periods presented herein
has  not  been  audited  by  independent  accountants,  but  in the  opinion  of
management,  all adjustments  (consisting only of normal recurring  adjustments)
necessary for a fair presentation of the condensed  consolidated  balance sheets
and the  condensed  consolidated  statements  of earnings  and cash flows at the
dates and for the periods  indicated  have been made.  Results of operations for
interim periods are not necessarily  indicative of results of operations for the
respective full years.

b.   Description of business

EuroMed had no business operations from November 1997 to September 30, 1998. The
expenses  incurred are directors'  fees and other general  expenses  required to
maintain the corporate shell. The Board of Directors is currently  searching for
appropriate business acquisitions.

c.   Net Loss Per Share

Net loss per share is  computed  using  the  weighted  average  number of shares
outstanding during the period;  however,  the net loss per share computations do
not  include  the  exercise  of  the  outstanding  stock  warrants  due  to  the
antidilutive effect.








<PAGE>

ITEM 2 MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
OF OPERATIONS.

GENERAL

Swiss  Nassau  Corporation  was  incorporated  on May 17,  1994 in the  state of
Nevada,  United States of America,  with  authorized and issued share capital of
1,000 shares of common stock with no par value (the "Common Stock).  On June 15,
1994,  computer  equipment  with  estimated  value of $4,998 was  contributed in
exchange for all of the shares of Swiss Nassau Corporation. On October 20, 1995,
Swiss Nassau Corporation  changed its name into EuroMed,  Inc. ("EuroMed" or the
"Company")  and increased its authorized  shares to 20,000,000  shares of Common
Stock with a new par value of $0.01 per share,  and 5,000,000  preferred  shares
with a par value of $0.01 per share. On October 20, 1995, EuroMed, Inc. effected
a 150 for 1 stock split of its Common Stock.

On November  17,  1995,  all of the shares of  Galenica  B.V.  ("Galenica")  and
Confedera B.V. ("Confedera"),  both based in Oosterhout,  the Netherlands,  were
exchanged by the ultimate shareholder of both companies for all of the shares of
a newly-formed  company,  EuroMed Europe B.V. ("EuroMed Europe").  Prior to this
transaction Galenica and Confedera were owned by B.V. Wisteria  ("Wisteria"),  a
Netherlands limited liability company, which is owned by Pantapharma B.V., which
is owned by A. Francois  Hinnen.  All of the shares of EuroMed  Europe were then
exchanged for 1,850,000  shares of Common Stock.  Neither EuroMed Europe nor the
Company  had  any  operations,   and  these   transactions   were  completed  in
contemplation  of an initial public  offering  ("IPO") of shares of EuroMed.  In
March 1996 EuroMed  completed its IPO by selling  1,150,000 shares of its common
stock at $6.50 per share.  The  proceeds  of the IPO and  850,000  shares of its
common stock were used to acquire Mutarestes B.V. and Subsidiary  ("Mutarestes")
in July 1996 (estimated  acquisition price of $11,729,500).  Almost immediately,
upon completion of the acquisition of Mutarestes,  differences developed between
various officers,  directors and shareholders.  Mutarestes was subsequently sold
in July 1997 with a significant  loss being recognized and the 850,000 shares of
common stock being  returned to the Company.  In addition,  A.  Francois  Hinnen
returned 850,000 shares of common stock to the Company to mitigate the effect of
the loss on the Mutarestes transactions.

As a result of the failed  acquisition of Mutarestes and a significant change in
the Dutch law as it related to the wholesale price of pharmaceuticals, the Board
of  Directors  concluded  that it was in the best  interest of EuroMed to divest
itself of its  remaining  Dutch  pharmaceutical  operations.  In November  1997,
EuroMed Europe and its subsidiaries were sold.  EuroMed recognized a substantial
loss on the  disposal  of  EuroMed  Europe;  therefore,  the Board of  Directors
negotiated with A. Francois  Hinnen the return of 1,000,000  shares of EuroMed's
common  stock to lessen the  effects of the loss on disposal  for the  remaining
shareholders.

EuroMed currently has no business  operations;  however, its President and Board
of Directors are actively seeking appropriate business acquisitions.




<PAGE>


RESULTS OF OPERATIONS

         Three months ended  September  30, 1998  compared to three months ended
September  30, 1997 and nine months ended  September  30, 1998  compared to nine
months ended September 30, 1997.

         As of September 30, 1998 the Company had no sales. Selling, general and
administrative  expenses for the three and nine months ended  September 30, 1998
were  $60,240  and  $189,047,  respectively,  and were  comprised  primarily  of
directors  fees, and legal and  professional  fees incurred as part of the legal
proceedings described in Part II, Legal Proceedings.

         Selling,  general and  administrative  expenses  for the three and nine
months ended  September 30, 1997 were $147,839 and $591,359,  respectively,  and
were comprised  primarily of legal and professional fees incurred as part of the
legal proceedings the Company was involved in during those periods.

LIQUIDITY AND CAPITAL RESOURCES

         Cash (used in) continuing operations was ($302,270) for the nine months
ended September 30, 1998 compared with ($434,694) provided by operations for the
nine months ended September 30, 1997. This decrease is a result of reduced legal
and professional fees.

         Cash and cash equivalents at the end of the nine months ended September
30, 1998 was $299,900 compared with $0 at the end of nine months ended September
30, 1997.

         Management  is of the opinion  that the  proceeds  from the sale of the
discontinued  operations,  together with existing borrowing capacity,  should be
sufficient  to finance and sustain  operations at the present level for at least
six months.






<PAGE>


                                     PART II

Item 1.  Legal Proceedings

         The Company is still involved in three legal proceedings, two in Nevada
State  Court  and one in the  United  States  District  Court  for the  Northern
District  of Texas.  There has been no  substantive  activity  in the past three
months in the first Nevada suit filed by the Company  against  former  directors
Gregory Alan Gaylor and Robert Jansonius.

         The second legal  proceeding  is a lawsuit  filed by the Company in the
United States  District Court for the Northern  District of Texas against Gaylor
in which Final Judgment was awarded in favor of the Company against Gaylor,  and
Gaylor and Jan  Bouwman  (another  former  Company  Director)  were also held in
contempt of court for  intentionally  violating  the Final  Judgment and federal
securities laws.

         On July 29,  1998,  the  Company  filed a second  motion  for  contempt
against  Gaylor and Bouwman  arising from their  continued  violation of federal
securities  laws;  specifically,  their  intentional  failure to file a Schedule
13(d) despite  their  control of more than 5% of the Company's  shares and their
intent to overthrow  management by filing a second receivership action in Nevada
against the Company on July 27, 1998,  as explained  below.  In response to this
second contempt motion,  Gaylor filed several motions attempting to overturn the
Final Judgment and the prior contempt  order,  and a motion to stay the contempt
proceedings.  On August  17,  1998,  the Fifth  Circuit  Court of  Appeals  also
dismissed  Gaylor's appeal of the first contempt order because he failed to file
an appellate brief with the court.

         In September 1998, a United States Magistrate Judge conducted a two day
evidentiary  hearing  on all of  these  matters,  and  recommended  that  all of
Gaylor's  motions be denied and that  Gaylor and  Bouwman be held in contempt of
court for a second  time.  The  contempt  recommendation  was issued  because of
Gaylor and Bouwman's intentional failure to file a Schedule 13(d), their failure
to satisfy the Final Judgment prior to soliciting further proxies,  and Gaylor's
failure to disclose the existence of the Final Judgment or his prior  indictment
by the State of New  Hampshire  for theft and  misappropriation  of  partnership
assets in an unrelated matter while soliciting  proxies.  As sanctions for their
continued  contempt of court, the Magistrate  Judge  recommended that Gaylor and
Bouwman be permanently  enjoined from voting or exercising control of any of the
Company's stock that they may own, or to which they have proxies,  including any
shares  or  proxies  acquired  in the  future.  Gaylor  was also  enjoined  from
contacting the Securities and Exchange  Commission,  or the Nasdaq Stock Market,
Inc.  regarding the Company or its  officers,  directors,  or attorneys  without
prior approval from the court.  The U.S.  Senior  District Judge has yet to rule
upon the Magistrate Judge's recommendations.

         The third  legal  proceeding  is a Nevada  lawsuit  filed by Gaylor and
Bouwman,  on behalf  of  themselves  and the  Company's  minority  shareholders,
against the Company in which a special master was appointed,  with the Company's
agreement,  to investigate Gaylor and Bouwman's allegations against the Company.
On July 27, 1998,  Gaylor and Bouwman  filed a second  receivership  application
against  the  Company  seeking to  overthrow  Company  management.  This  second
application  was based upon the same  allegations  made by Gaylor and Bouwman in
May 1997 in their  first  receivership  application,  despite  the Nevada  State
Court's  denial of the first  receivership  application.  On July 30, 1998,  the
special master issued a written  report  absolving the Company of any wrongdoing
with regard to Gaylor and Bouwman's  allegations.  After conducting a hearing on
Gaylor and Bouwman's second  receivership  application,  and after reviewing the
special master's  report,  the Nevada State Court denied all relief requested by
Gaylor and Bouwman in their  receivership  application.  On September  29, 1998,
Gaylor and Bouwman's  Nevada  counsel filed a motion with the Nevada State Court
to withdraw  from their  representation  of Gaylor,  Bouwman,  and the Company's
minority  shareholders.  The  Company  has taken  steps to execute  on  Gaylor's
portion of this Nevada lawsuit in partial  satisfaction of the approximately $16
million  that Gaylor owes the Company  pursuant to the Final  Judgment  from the
U.S. District Court for the Northern District of Texas.





<PAGE>


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits


                        Number and Description of Exhibit

Number       Exhibit Description


3.1          Restated Articles of Incorporation of the Registrant.(1)
3.2          Bylaws of the Registrant.(1)
4.1          Specimen Common Stock Certificate.(1)
27.1         Financial Data Schedule.(*)

             *     Filed herewith.

             (1)  Previously filed as an Exhibit to the company's Registration
Statement No. 33-80805 on Form S-1 and incorporated by herein
                                         reference.


(b)          Reports of Form 8-K


             None




<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.

EuroMed, Inc.

Dated: December 1, 1998


       Signature                                                Title




/s/ Elbert G. Tindell                                        President and
Elbert G. Tindell                                          Cahirman of the Board




/s/ Robert A. Shuey, III                                Chief Executive Officer,
Robert A. Shuey, III                                    Chief Financial Officer,
                                                         Treasurer and Director




<PAGE>


                                  Exhibit Index



Exhibit No.                     Description

27.1                            Financial Data Schedule.(*)


(*)                             Filed herewith