**UNITED        STATES **

**SECURITIES        AND EXCHANGE COMMISSION**
** **

**Washington,        D.C. 20549**

**FORM        10-Q/A**

**(Amendment        No. 3)**

**x**
**QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF        1934**

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

*   *
**000-52691**

**MODIGENE        INC. **

| **Nevada**                                                                                           |   | **20-0854033**                                       |
|------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|
| (State                  or other jurisdictionof incorporation                  or organization) |   | (I.R.S.                  Employer IdentificationNo.) |
|                                                                                                 |   |                                                 |
| **3                  Sapir Street, Weizmann****Science                  Park**                       |   |                                                 |
| **Nes-Ziona,                  Israel**                                                               |   | **74140**                                            |
| (Address                  of principal executiveoffices)                                             |   | (Zip                  Code)                          |

**(866)        644-7811**

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| Large accelerated filer |  ̈                                                                                             | Accelerated Filer              |  ̈ |
|-----------------------------------|----------------------------------------------------------------------------------------------------|-------------------------------------|--------|
| Non-accelerated filer        |  ̈  (Do not check if a smaller reporting company) | Smaller reporting company | x      |

*** ***

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**EXPLANATORY        NOTE**

*** ***

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**PART        I – FINANCIAL INFORMATION**

**ITEM        1.**
**Financial        Statements.**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                                                                                                                                                         |   | March 31, |        | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|-------------------|--------|
|                                                                                                                                                                                                                                                                                         |   | 2008           |        | 2007              |   |
|                                                                                                                                                                                                                                                                                         |   | (Unaudited)    |        | (Restated)        |   |
| **ASSETS**                                                                                                                                                                                                                                                                              |   |           |        |              |   |   |   |
| **Current                  Assets:**                                                                                                                                                                                                                                                         |   |           |        |              |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                   |   | $              | 12,830,017  |              | $      | 11,455,807 |   |
| Accounts                  receivable and prepaid expenses                                                                                                                                                                                                                                    |   |           | 108,897     |              |   | 506,144 |   |
| Restricted                  cash                                                                                                                                                                                                                                                             |   |           | 93,618      |              |   | 61,838 |   |
| **Total                  current assets**                                                                                                                                                                                                                                                    |   |           | 13,032,532  |              |   | 12,023,789 |   |
| **Property                  and equipment, net**                                                                                                                                                                                                                                             |   |           | 232,871     |              |   | 175,428 |   |
| **Long-term                  Assets:**                                                                                                                                                                                                                                                       |   |           |        |              |   |   |   |
| Severance                  pay fund                                                                                                                                                                                                                                                          |   |           | 58,695      |              |   | 33,685 |   |
| Long                  term deposit                                                                                                                                                                                                                                                           |   |           | 2,951       |              |   | 2,951 |   |
| **Total                  long term assets**                                                                                                                                                                                                                                                  |   |           | 61,646      |              |   | 36,636 |   |
| **Total                  assets**                                                                                                                                                                                                                                                            |   | $              | 13,327,049  |              | $      | 12,235,853 |   |
|                                                                                                                                                                                                                                                                                         |   |           |        |              |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                                                              |   |           |        |              |   |   |   |
| **Current                  Liabilities:**                                                                                                                                                                                                                                                    |   |           |        |              |   |   |   |
| Short-term                  bank credit                                                                                                                                                                                                                                                      |   | $              | -           |              | $      | 1,886 |   |
| Trade                  payables                                                                                                                                                                                                                                                              |   |           | 83,981      |              |   | 142,462 |   |
| Related                  party payables                                                                                                                                                                                                                                                      |   |           | 25,938      |              |   | 19,365 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                                                                      |   |           | 168,173     |              |   | 167,218 |   |
| **Total                  current liabilities**                                                                                                                                                                                                                                               |   |           | 278,092     |              |   | 330,931 |   |
| **Accrued                  severance pay**                                                                                                                                                                                                                                                   |   |           | 65,293      |              |   | 42,552 |   |
| **Commitments                  and contingent liabilities**                                                                                                                                                                                                                                  |   |           |        |              |   |   |   |
| **Shareholders’                  equity:**                                                                                                                                                                                                                                             |   |           |        |              |   |   |   |
| Stock                  capital -                                                                                                                                                                                                                                                             |   |           |        |              |   |   |   |
| Preferred                  stock of $ 0.00001 par value –10,000,000                  shares of preferred stock authorized, 800,000 issued and                  outstanding                                                                                                             |   |           | 8           |              |   | - |   |
| Common                  stock of $ 0.00001 par value –300,000,000                  shares of common stock authorized35,549,028                  and 35,435,266 shares issued and outstanding as of March 31, 2008                  and                  December 31,2007, respectively |   |           | 355         |              |   | 354 |   |
| Additional                  paid-in capital *                                                                                                                                                                                                                                                |   |           | 26,604,103  |              |   | 24,368,587 |   |
| (Deficit)                  accumulated during the development stage *                                                                                                                                                                                                                        |   |           | (13,620,802 | )                 |   | (12,506,571 | ) |
| **Total                  shareholders’ equity**                                                                                                                                                                                                                                        |   |           | 12,983,664  |              |   | 11,862,370 |   |
| **Total                  liabilities and shareholders’ equity**                                                                                                                                                                                                                        |   | $              | 13,327,049  |              | $      | 12,235,853 |   |

----

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                           |   |                                           |       | Period from              |   |
|----------------------------------------------------------------|--------|------------------------------------------------|------------|-------------------------------|--------|
|                                                           |   |                                           |       | May 31, 2005        |   |
|                                                           |   | For the three months ended |       | (date of inception) |   |
|                                                           |   | March 31,                                 |       | to March 31,        |   |
|                                                           |   | 2008                                           |       | 2007                          |   | 2008 |   |
|                                                           |   | (Unaudited)                                    |       | (Unaudited)                   |   | (Restated) |   |
| **Revenues**                                                   |   | $                                              | -          |                          | $      | - |   | $ | - |   |
|                                                           |   |                                           |       |                          |   |   |   |   |   |   |
| **Operating                  expenses:**                       |   |                                           |       |                          |   |   |   |   |   |   |
|                                                           |   |                                           |       |                          |   |   |   |   |   |   |
| In-process                  research and development write-off |   |                                           | -          |                          |   | - |   |   | *                  3,222,831 |   |
| Research                  and development, net                 |   |                                           | 740,510    |                          |   | 228,394 |   |   | 3,504,856 |   |
| General                  and administrative                    |   |                                           | 608,802    |                          |   | 234,261 |   |   | 7,516,361 |   |
|                                                           |   |                                           | 1,349,312  |                          |   | 462,655 |   |   | *                  14,244,048 |   |
|                                                           |   |                                           |       |                          |   |   |   |   |   |   |
| Operating                  (loss)                              |   |                                           | (1,349,312 | )                             |   | (462,655 | ) |   | *(14,244,048 | ) |
|                                                           |   |                                           |       |                          |   |   |   |   |   |   |
| Financial                  income                              |   |                                           | 235,659    |                          |   | 3,072 |   |   | 638,997 |   |
| Financial                  (expenses)                          |   |                                           | (578       | )                             |   | (26,898 | ) |   | (15,751 | ) |
| Net                  (loss)                                    |   | $                                              | (1,114,231 | )                             | $      | (486,481 | ) | $ | *(13,620,802 | ) |
|                                                           |   |                                           |       |                          |   |   |   |   |   |   |
| (Loss)                  per share (basic & diluted)        |   | $                                              | (0.03      | )                             | $      | (0.04 | ) | $ | *                  (0.67 | ) |
|                                                           |   |                                           |       |                          |   |   |   |   |   |   |
| Weighted                  average number of shares outstanding |   |                                           | 35,473,187 |                          |   | 13,588,552 |   |   | 20,468,444 |   |

----

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                               |   |                                           |       | Period from              |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|-------------------------------|--------|
|                                                                                               |   |                                           |       | May 31, 2005        |   |
|                                                                                               |   | For the three months ended |       | (date of inception) |   |
|                                                                                               |   | March 31,                                 |       | to March 31,        |   |
|                                                                                               |   | 2008                                           |       | 2007                          |   | 2008 |   |
|                                                                                               |   | (Unaudited)                                    |       | (Unaudited)                   |   |   |   |
| **Cash                    flows from operating activities**                                        |   |                                           |       |                          |   |   |   |   |   |   |
| Net                    cash (used in) operating activities                                         |   | $                                              | (522,404   | )                             | $      | (522,336 | ) | $ | (4,621,070 | ) |
|                                                                                               |   |                                           |       |                          |   |   |   |   |   |   |
| **Cash                    flows from investing activities**                                        |   |                                           |       |                          |   |   |   |   |   |   |
| Purchase                    of property and equipment                                              |   |                                           | (69,720    | )                             |   | (4,345 | ) |   | (286,524 | ) |
| Payment                    for the acquisition of ModigeneTech Ltd.                                |   |                                           | -          |                          |   | - |   |   | (474,837 | ) |
| Long                    term deposit                                                               |   |                                           | -          |                          |   | - |   |   | (2,951 | ) |
| Restricted                    cash                                                                 |   |                                           | (31,780    | )                             |   | (2,929 | ) |   | (93,618 | ) |
| Net                    cash (used in) investing activities                                         |   |                                           | (101,500   | )                             |   | (7,274 | ) |   | (857,930 | ) |
|                                                                                               |   |                                           |       |                          |   |   |   |   |   |   |
| **Cash                    flows from financing activities**                                        |   |                                           |       |                          |   |   |   |   |   |   |
| Short                    term bank credit                                                          |   |                                           | (1,886     | )                             |   | 17,402 |   |   | (2,842 | ) |
| Proceeds                    from loans                                                             |   |                                           | -          |                          |   | - |   |   | 173,000 |   |
| Principal                    payment of loans                                                      |   |                                           | -          |                          |   | - |   |   | (173,000 | ) |
| Proceeds                    from issuance of shares                                                |   |                                           | 2,000,000  |                          |   |   |   |   | 18,311,859 |   |
| Net                    cash provided by (used in) financing activities                             |   |                                           | 1,998,114  |                          |   | 17,402 |   |   | 18,309,017 |   |
| **(Decrease)                    increase in cash and cash equivalents**                            |   |                                           | 1,374,210  |                          |   | (512,208 | ) |   | 12,830,017 |   |
| **Cash                    and cash equivalents at the beginning of the                    period** |   |                                           | 11,455,807 |                          |   | 785,165 |   |   | - |   |
| **Cash                    and cash equivalents at the end of the period**                          |   | $                                              | 12,830,017 |                          | $      | 272,957 |   | $ | 12,830,017 |   |
|                                                                                               |   |                                           |       |                          |   |   |   |   |   |   |
| Cash                    paid for income taxes                                                      |   | $                                              | -          |                          | $      | - |   | $ | - |   |
| Cash                    paid for interest expense                                                  |   | $                                              | 578        |                          | $      | 2,937 |   | $ | 15,751 |   |

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| **NOTE                  1:-** | **GENERAL** |
|-------------------------------|-------------|
|                          |        |
|                          | **a.**      | **General:** |
|                          |        |   |
|                          |        | Modigene                  Inc. (the “Company”) was formed on August 22, 2003 under the laws of the                  state of Nevada. The Company is engaged in the development of therapeutic                  proteins with extended half-lifes, through its subsidiary, ModigeneTech                  Ltd. (“ModigeneTech”). |
|                          |        |   |
|                          |        | The                  Company is devoting substantially all of its efforts toward conducting                  research and development activities. The Company’s activities also include                  raising capital, recruiting personnel and building infrastructure.                  In the                  course of such activities, the Company has sustained operating                  losses and                  expects such losses to continue for the foreseeable future. The                  Company                  has not generated any revenues or product sales and has not achieved                  profitable operations or positive cash flow from operations. The                  Company’s                  deficit accumulated during the development stage aggregated $13,620,802                  through March 31, 2008. There is no assurance that profitable operations,                  if ever achieved, could be sustained on a continuing basis. The                  Company                  raised $2 million in a private placement, see note b. below. The                  Company                  believes that its current cash sources will enable the continuance                  of the                  Company’s activities for at least a year with no need of additional                  fundraising, |
|                          |        |   |
|                          | **b.**      | On                  March 25, 2008, the Company entered into a Securities Purchase                  Agreement                  (the “Purchase Agreement”) with a group of related parties (the                  “Investors”). The Purchase Agreement provides that the Company will                  sell to the Investors, and the Investors will purchase from the                  Company,                  800,000 shares of non registered Series A preferred stock, $0.00001                  par                  value per share (the “Series A Preferred Stock”), at $2.50 per share, for                  an aggregate purchase price of $2,000,000. The Series A Preferred                  Stock is                  convertible during the period beginning March 1, 2009 though March                  25,                  2012, without payment of any additional consideration, into non                  registered                  Common Stock, $0.00001 par value per share (the “Common Stock”) based on a                  conversion ratio equal to one share of Common Stock per share of                  Series A                  Preferred Stock. In the event that the market capitalization of                  the                  Company equals or exceeds $150,000,000 during any forty-five days                  within a                  consecutive ninety day period, the conversion ratio will adjust                  to five                  shares of Common Stock per share of Series A Preferred Stock. The                  conversion ratio in effect will be proportionately adjusted for                  subdivisions, combinations, consolidations and similar corporate                  events.                  If not previously converted, the Series A Preferred Stock will                  automatically be converted into Common Stock, at the applicable                  exchange                  ratio, on March 25, 2012. |
|                          |        |   |
|                          | **c.**      | On                  March 25, 2008, simultaneously with the closing of the transaction                  under                  the Securities Purchase Agreement, the Company entered into a Credit                  Agreement with the Investors. Under this line of credit, the Company                  may,                  at its discretion, borrow up to $10,000,000, which proceeds may                  be used                  for working capital or general corporate purposes of the Company,                  as                  approved by our board of directors (the “Board”). The maturity date for                  the line of credit is March 25, 2009, unless (i) the Company has                  borrowed                  any funds under the line of credit prior to March 25, 2009, or                  (ii) the                  Company elects to extend the line of credit. In either of such                  events the                  maturity date will be extended until March 25, 2013. Upon the maturity                  date, as the same may be extended, the Company is obligated to                  repay all                  outstanding borrowings, together with any accrued interest, and                  the line                  of credit will terminate. |

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| **NOTE                  1:-** | **GENERAL**                  (continued) The                  Company is obligated to pay interest on outstanding borrowings                  under the                  line of credit at a 10% annual rate. In the event the Company determines                  to draw on the line of credit, or the Company elects to extend                  the                  maturity date until March 25, 2013, the Company will issue the                  Investors                  5-year warrants to purchase 1,500,000 shares of the Company’s                  non-registered Common Stock, having an exercise price of $0.99                  per                  share. |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| **NOTE                  2:-** | **SIGNIFICANT                  ACCOUNTING POLICIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                          | **a.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Basis                  of presentation:** |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | The                  accompanying unaudited financial statements of the Company are                  presented                  in accordance with the requirements for Form 10-Q and Article 10                  of                  Regulation S-X. Certain information and footnote disclosures normally                  included in financial statements prepared in accordance with accounting                  principles generally accepted in the United States of America (“US GAAP’)                  have been condensed or omitted pursuant to such SEC rules and regulations.                  In the opinion of management, all adjustments (consisting of normal                  recurring adjustments) considered necessary for a fair presentation                  have                  been made. The results for these interim periods are not necessarily                  indicative of the results for the entire year. The accompanying                  financial                  statements should be read in conjunction with the December 31,                  2007                  financial statements and the notes thereto included in the Company’s                  Report on Form 10-KSB/A filed in August 2008. |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          | **b.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Principles                  of consolidation:** |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | The                  consolidated financial statements include the accounts of the Company                  and                  its wholly-owned subsidiaries Modigene Inc., a Delaware corporation                  (“Modigene Delaware”) and ModigeneTech. Intercompany transactions and                  balances have been eliminated upon consolidation. |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          | **c.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Loss                  per share:** |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Basic                  and diluted losses per share are presented in accordance with FASB                  issued                  SFAS no. 128 “Earnings per share” (“SFAS 128”). Outstanding share options                  and warrants have been excluded from the calculation of the diluted                  loss                  per share because all such securities are antidilutive. |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| **NOTE                  3:-** | **SHAREHOLDERS’                  EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                          | **a.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Rights                  of Common Stock:** |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | The                  holders of Common Stock are entitled to one vote per share on all                  matters                  submitted to a vote of the stockholders, including the election                  of                  directors. Subject to any preferential rights of any outstanding                  series of                  preferred stock created by the company’s Board of Directors (the “Board”)                  from time to time, the common stockholders will be entitled to                  such cash                  dividends as may be declared from time to time by the Board from                  funds                  available. Subject to any preferential rights of any outstanding                  series of                  preferred stock, upon liquidation, dissolution or winding up of                  the                  Company, the common stockholders will be entitled to receive pro                  rata all                  assets available for distribution to such holders. |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                          | **b.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | On                  February 29, 2008 Mr. Havron Abraham, the Company’s Chief Executive                  Officer, exercised 113,762 employee stock options into 113,762                  Common                  Stock. The options were granted in connection with the merger of                  Modigene                  Delaware with a wholly-owned subsidiary of the Company, in exchange                  for                  employee stock options to acquire 66,666 shares of Modigene Delaware                  common stock at $0.0001 per share. The total value of the shares                  issued                  was $102,386. |

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| **NOTE                  3:-** | **SHAREHOLDERS’                  EQUITY**(continued) |
|-------------------------------|------------------------------------------------------------|
|                          |                                                       |   |
|                          | **c.**                                                     | **Rights                  of Series A Preferred Stock:** |
|                          |                                                       |   |
|                          |                                                       | The                  Company has approved the designation of 800,000 shares of its preferred                  stock as the Series A Preferred Stock. Each holder of shares of                  Series A                  Preferred Stock shall be entitled, at the option of such holder,                  to                  convert all, but not less than all, of the shares of Series A Preferred                  Stock then held by such holder, at any time and from time to time                  beginning on March 1, 2009 and ending on March 25, 2012 (the “Conversion                  Deadline”), without the payment of any additional consideration, into                  Common Stock at the applicable conversion price discussed in note                  1b. If                  any holder of shares of Series A Preferred Stock has not exercised                  his,                  her or its right to convert the shares of Series A Preferred Stock                  then                  held by such holder on or prior to the Conversion Deadline, then                  at the                  Conversion Deadline all such shares of Series A Preferred Stock                  will                  automatically convert, without the payment of any additional                  consideration, into Common Stock at the applicable conversion price                  discussed above. The holders of Series A Preferred Stock (and the                  holders                  of any other class or series of preferred stock that may have similar                  voting rights) will vote on an as-if-converted basis with the holders                  of                  Common Stock and any other class or series of preferred stock or                  Common                  Stock that by its terms, votes on an as-if-converted basis with                  the                  holders of Common Stock on all matters to be voted on by stockholders                  of                  the Company. Dividends will be payable only if, when and as declared                  by                  the Board, and, if declared, any such dividends will be non-cumulative.                  Such dividends, if any, will be paid out of, and to the extent                  of, any                  assets legally available therefore. No dividends will be declared                  or paid                  on the Common Stock, unless a dividend, payable in the same consideration                  or manner, is simultaneously declared or paid, as the case may                  be, on each                  share of Series A Preferred Stock. In the event of liquidation                  of the                  Company, the entire remaining assets and funds of the Company legally                  available for distribution, if any, shall be distributed pro rata                  among the holders of the Series A Preferred Stock, the Common Stock                  and                  any other classes entitled to participate with Common Stock in                  proportion                  to the shares of Common Stock then held by them and the shares                  of Common                  Stock which they then have the right to acquire upon conversion                  of the                  capital stock held by them as of the date of such                  liquidation. |
|                          |                                                       |   |
|                          | **d.**                                                     | **Option                  plan:** |
|                          |                                                       |   |
|                          |                                                       | The                  Company issued stock options to purchase shares of Common Stock                  under the                  2005 Stock Incentive Plan (the “2005 Plan”) and under the 2007 Equity                  Incentive Plan (the “2007 Plan”). The Company accounts for stock based                  compensation using the fair value recognition provisions of SFAS                  No. 123R                  (revised 2004), “Share Based Payment”.  The                  fair value of each stock option is estimated based upon grant date                  fair                  value using the Black-Scholes option-pricing model. The following                  weighted                  average assumptions used for the options granted during the year                  2008 are                  as follows: (i) annual dividends of $0.00, (ii) expected volatility                  of                  79.3%, (iii) risk-free interest rate of 2.98% , and (iv) expected                  average                  option lives of 10 years. |

----

| **NOTE                  3:-** | **SHAREHOLDERS’                  EQUITY (continued)** |
|-------------------------------|-------------------------------------------------------------|
|                          |                                                        |
|                          | **d.**                                                      | **Option                  plan (continued):** |
|                          |                                                        |   |
|                          |                                                        | A                  summary of the stock options granted under the 2005 and 2007 Plans                  is as                  follows: |

|                                                          |   | March 31, 2008 |                         |
|---------------------------------------------------------------|--------|--------------------------|------------------------------|
|                                                          |   | Numberof Options    |                         | Weighted AverageExercise Price |   |
|                                                          |   |                     |                         |   |   |
| Outstanding                    at the beginning of the period |   |                     | 2,437,795                    |   | $ | 1.23 |   |
| Exercised                                                     |   |                     | (                    113,762 | ) | $ | 0.0006 |   |
| Issued                    under the 2007 plan                 |   |                     | 1,975,000                    |   | $ | 0.90 |   |
| Forfeited                                                     |   |                     | (                    25,000  | )  | $ | 2.00 |   |
| Outstanding                    at the end of the period       |   |                     | 4,274,033                    |   | $ | 1.10 |   |
|                                                          |   |                     |                         |   |   |   |   |
| Options                    exercisable                        |   |                     | 1,754,033                    |   | $ | 0.88 |   |

|                |   |                     |   | Remaining Weightedaverage contractual life |   |                     |   |
|---------------------|--------|--------------------------|--------|-----------------------------------------------------------|--------|--------------------------|--------|
| Exercise Price |   | Options Outstanding |   | (years)                                                   |   | Options Exercisable |   |
|                |   |                     |   |                                                      |   |                     |   |
| $                   | 0.879  |                     |   | 1,268,887                                                 |   |                     | 7.97   |   |   | 1,268,887 |   |
| $                   | 0.90   |                     |   | 1,950,000                                                 |   |                     | 9.92   |   |   | - |   |
| $                   | 0.93   |                     |   | 25,000                                                    |   |                     | 9.93   |   |   | - |   |
| $                   | 1.32   |                     |   | 435,146                                                   |   |                     | 4.92   |   |   | 435,146 |   |
| $                   | 2.00   |                     |   | 475,000                                                   |   |                     | 9.11   |   |   | - |   |
| $                   | 2.50   |                     |   | 120,000                                                   |   |                     | 4.95   |   |   | 50,000 |   |
|                |   |                     |   | 4,274,033                                                 |   |                     | 8.61   |   |   | 1,754,033 |   |

** **

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| **NOTE                    4:-** | **AMENDED                    FINANCIAL STATEMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                            | On                    May 13, 2008 The Company filed its Interim Report on Form 10-Q                    for the                    three months ended March 31, 2008.  On June 13, 2008, the Company                    received a comment letter from the United States Securities and                    Exchange                    Commission (“SEC”).  As part of the Company’s response to the comment                    letter, an Amendment to the Form 10-Q is filed to amend the accounting                    treatment of the reverse acquisition from                    purchase accounting to                    a recapitalization. On                    May 9, 2007 the Company, entered into a Merger Agreement. In                    accordance with Statement of Financial Accounting Standards No.                    141, the                    Company has amended its 2007 financial statements to record the                    Merger as                    a recapitalization. The merger was a Reverse Acquisition. The                    following                    financial statements line items were affected by the                    restatement: |

|                                                                                                          |   | **Originally reported** |                      | **Amended** |   | **Differences**                |    |
|---------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------------------------|-------------|--------|--------------------------------|---------|
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| **Balance                    Sheets:**                                                                   |   |                         |                      |        |   |                           |    |   |   |   |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| Additional                    paid-in capital                                                                 |   | $                            | 37,604,112                |        | $      | 26,604,103                     |    | $ | 11,000,009 |   |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| (Deficit)                    accumulated during the development stage                                         |   | $                            | (24,620,811               | )      | $      | (13,620,802                    | )  | $ | (11,000,009 | ) |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| **Statements                    of Operations:**                                                              |   |                         |                      |        |   |                           |    |   |   |   |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| For                    the Period from May 31, 2005 (date of inception) to March 31,                    2008: |   |                         |                      |        |   |                           |    |   |   |   |
| In-process                    research and development write-off                                              |   | $                            | (14,222,840               | )           | $      | (                    3,222,831 | )       | $ | (11,000,009 | ) |
| Operating                    (loss)                                                                           |   | $                            | (25,244,057               | )           | $      | (14,244,048                    | )       | $ | (11,000,009 | ) |
| Net                    (loss)                                                                                 |   | $                            | (24,620,811               | )           | $      | (13,620,802                    | )       | $ | (11,000,009 | ) |
| (Loss)                    per share (basic & diluted)                                                     |   | $                            | (                    1.20 | )           | $      | (                    0.67      | )       | $ | (                    0.53 | ) |

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**ITEM          2. **
**Management’s          Discussion and Analysis of Financial Condition and Results of          Operations.**

**Amended          Financial Statements**

|                                                                                                          |   | **Originally reported** |                      | **Amended** |   | **Differences**                |    |
|---------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------------------------|-------------|--------|--------------------------------|---------|
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| **Balance                    Sheets:**                                                                   |   |                         |                      |        |   |                           |    |   |   |   |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| Additional                    paid-in capital                                                                 |   | $                            | 37,604,112                |        | $      | 26,604,103                     |    | $ | 11,000,009 |   |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| (Deficit)                    accumulated during the development stage                                         |   | $                            | (24,620,811               | )      | $      | (13,620,802                    | )  | $ | (11,000,009 | ) |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| **Statements                    of Operations:**                                                              |   |                         |                      |        |   |                           |    |   |   |   |
|                                                                                                          |   |                         |                      |        |   |                           |    |   |   |   |
| For                    the Period from May 31, 2005 (date of inception) to March 31,                    2008: |   |                         |                      |        |   |                           |    |   |   |   |
| In-process                    research and development write-off                                              |   | $                            | (14,222,840               | )           | $      | (                    3,222,831 | )       | $ | (11,000,009 | ) |
| Operating                    (loss)                                                                           |   | $                            | (25,244,057               | )           | $      | (14,244,048                    | )       | $ | (11,000,009 | ) |
| Net                    (loss)                                                                                 |   | $                            | (24,620,811               | )           | $      | (13,620,802                    | )       | $ | (11,000,009 | ) |
| (Loss)                    per share (basic & diluted)                                                     |   | $                            | (                    1.20 | )           | $      | (                    0.67      | )       | $ | (                    0.53 | ) |

**Note          Regarding Forward-Looking Statements**

*Our          disclosure and analysis in this Quarterly Report on Form 10-Q *
*contains          forward-looking statements within the meaning of Section 27A of the          Securities Act of 1933 and Section 21E of the Securities Exchange Act of          1934. You can identify such forward-looking statements by the words “expects,”“intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “goal,”“assumes,” “targets” and similar expressions and/or the use of future tense or          conditional constructions (such as “will,” “may,” “could,” “should” and the          like). In the normal course of business, Modigene Inc. (“Modigene” or the“Company”), in an effort to help keep its stockholders and the public informed          about the Company may, from time to time, issue such forward-looking statements,          either orally or in writing. Generally, these statements relate to business          plans strategies or opportunities, and/or projected or anticipated benefits          or          other consequences of such plans, strategies, or opportunities, including          anticipated revenues or earnings. Modigene bases the forward-looking statements          on its current expectations, estimates and projections. Modigene cautions          you          that these statements are not guarantees of future performance and involve          risks, uncertainties and assumptions that Modigene cannot predict. In addition,          Modigene has based many of these forward-looking statements on assumptions          about          future events that may prove to be inaccurate. Therefore, the actual results          of          future events described in such forward-looking statements in this Management’s          Discussion and Analysis, or elsewhere, could differ materially from those          stated          in such forward-looking statements. *

**Management’s          Discussion and Analysis of Financial Condition and Results of          Operations**

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**Historical          Note**

**Results          of Operation**

***Critical          Accounting Policies***

*Use          of Estimates:*

*Financial          Statements in United States Dollars:*
** **

*Principles          of Consolidation:*

*Cash          Equivalents:*

*Property          and Equipment:*

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|                                                  |   | %      |   |
|-------------------------------------------------------|--------|--------|--------|
|                                                  |   |   |   |
| Office                    furniture and equipment     |   |   | 6      |   |
|                                                  |   |   |        |   |
| Laboratory                    equipment               |   |   | 15     |   |
|                                                  |   |   |        |   |
| Computers                    and electronic equipment |   |   | 33     |   |
|                                                  |   |   |        |   |
| Leasehold                    improvements             |   |   | 25     |   |

** **

*Research          and Development Costs and Participation:*

*Severance          Pay:*

*Income          Taxes:*

*Concentrations          of Credit Risk:*

*Fair          Value of Financial Instruments:*

*Royalty-bearing          Grants:*

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*Loss          per Share: *

***Revenue***

***Research          and Development Expense***

|  | **·** | internal                          costs associated with research and development                          activities; |
|--|------------|-----------------------------------------------------------------------------------------------------------------------|

|  | **·** | payments                      made to third party contract research organizations, contract                      manufacturers, investigative sites, and                      consultants; |
|--|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **·** | manufacturing                      development costs; |
|--|------------|-------------------------------------------------------|

|  | **·** | personnel-related                      expenses, including salaries, benefits, travel, and related                      costs for the                      personnel involved in the research and                      development; |
|--|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **·** | activities                      relating to the advancement of product candidates through preclinical                      studies and clinical trials; and |
|--|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **·** | facilities                      and other expenses, which include expenses for rent and maintenance                      of                      facilities, as well as laboratory and other                      supplies. |
|--|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | **·** | completion                      of such preclinical and clinical trials; |
|--|------------|--------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | receipt                      of necessary regulatory approvals; |
|--|------------|-----------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | the                      number of clinical sites included in the                      trials; |
|--|------------|------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | the                      length of time required to enroll suitable                      patients; |
|--|------------|----------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | the                      number of patients that ultimately participate in the                      trials; |
|--|------------|-------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | adverse                      medical events or side effects in treated                      patients; |
|--|------------|-------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | Lack                      of comparability with complementary                      technologies; |
|--|------------|--------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | obtaining                      capital necessary to fund operations, including the research                      and                      development efforts; and |
|--|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|  | **·** | the                      results of clinical trials. |
|--|------------|------------------------------------------------------|

***General          and Administrative Expense***

***Financial          Expense and Income***

|  | **·** | interest                      earned on the Company’s cash and cash                      equivalents; |
|--|------------|-------------------------------------------------------------------------------------------------------------|

|  | **·** | interest                      expense on short term bank credit and loan;                      and |
|--|------------|----------------------------------------------------------------------------------------------------|

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|  | **·** | expense                      or income resulting from fluctuations of the New Israeli Shekel,                      which a                      portion of the Company’s assets and liabilities are denominated in,                      against the United States Dollar and other foreign                      currencies. |
|--|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Stock-based          Compensation***

**Cash          Flows**

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**Funding        Requirements**

        candidates, we are unable to estimate the amounts of increased capital outlays        and operating expenditures associated with our current and anticipated clinical        trials. Our future capital requirements will depend on many factors, including        the progress and results of our clinical trials, the duration and cost of        discovery and preclinical development, and laboratory testing and clinical        trials for our product candidates, the timing and outcome of regulatory review        of our product candidates, the number and development requirements of other        product candidates that we pursue, and the costs of commercialization        activities, including product marketing, sales, and distribution. We do not        anticipate that we will generate product revenues for at least the next several        years. In the absence of additional funding, we expect continuing operating        losses to result in increases in our cash used in operations over the next        several years. To the extent that our capital resources are insufficient        to meet        our future capital requirements, we will need to finance our future cash        needs        through public or private equity offerings, debt financings, or corporate        collaboration and licensing arrangements. We currently do not have any        commitments for future external funding. We may need to raise additional        funds        more quickly if one or more of our assumptions proves to be incorrect or        if we        choose to expand our product development efforts more rapidly than we presently        anticipate, and we may decide to raise additional funds even before we need        them        if the conditions for raising capital are favorable. We may seek to sell        additional equity or debt securities or obtain a bank credit facility. The        sale        of additional equity or debt securities may result in dilution to our        shareholders. The incurrence of indebtedness would result in increased fixed        obligations and could also result in covenants that would restrict our        operations. Additional equity or debt financing, grants, or corporate        collaboration and licensing arrangements may not be available on acceptable        terms, if at all. If adequate funds are not available, we may be required        to        delay, reduce the scope of or eliminate our research and development programs,        reduce our planned commercialization efforts or obtain funds through        arrangements with collaborators or others that may require us to relinquish        rights to certain product candidates that we might otherwise seek to develop        or        commercialize independently.

**Effects        of Inflation and Currency Fluctuations**

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**Arrangements**

**Recently        Issued Accounting Pronouncements**

**ITEM        4T. **
**Controls        and Procedures.**

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**ITEM        6.**
**Exhibits.**

|  | 31.1 | Certification                      of Chief Executive Officer pursuant to Item 601(b)(31) of Regulation                      S-K                      (Filed herewith). |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31.2 | Certification                      of Chief Financial Officer pursuant to Item 601(b)(31) of Regulation                      S-K                      (Filed herewith). |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.1 | Certification                  of Chief Executive Officer pursuant to Item 601(b)(32) of Regulation                  S-K                  (Filed herewith). |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.2 | Certification                  of Principal Financial Officer pursuant to Item 601(b)(32) of Regulation                  S-B (Filed herewith). |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                        | MODIGENE                  INC.           |
|-----------------------------|------------------------------------------|
|                        |                                     |
| November 18, 2008 |                                          | /s/                  Abraham Havron |  |
| Date                        | Abraham                  Havron          |
|                        | Chief                  Executive Officer |

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