SECURITIES AND EXCHANGE COMMISSION 
 
                   Washington, D. C.   20549 
 
                         FORM 10-QSB 
 
            Quarterly Report Under Section 13 or 15(d) 
              of The Securities Exchange Act of 1934 
 
 
For Quarter Ended: September 30, 1996      Commission file number:  0-24930 
 
       CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC. 
    (Exact name of registrant as specified in its charter) 
 
 
        Florida                                       59-3029743 
  (State or other jurisdiction               IRS Employer Identification No.  
   of incorporation or organization) 
 
 
    3713 S.W. 42nd Avenue, Suite 3, Gainesville, Florida, 32608-2531 
     (Address of principal executive offices)             (Zip Code) 
 
 
    Registrant's telephone number, including area code:   904-375-6822 
 
 
Former name, former address and former fiscal year, if changed since last  
report: N/A. 
 
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 
 
As of September 30, 1996, the Company had outstanding ***1,225,110*** shares 
of its common stock. 
<PAGE> 
 
 
 
 
PART I:  Financial Information

Item 1 - Financial Statement
                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.

                 QUARTERLY STATEMENTS FOR THE NINE MONTHS ENDED 
                         SEPTEMBER 30, 1996 AND 1995


CONTENTS                                                          PAGE

BALANCE SHEET                                                      1-2
STATEMENTS OF OPERATIONS                                            3
STATEMENTS OF CASH FLOWS                                           4-5
NOTES TO FINANCIAL STATEMENTS                                     6-12





<PAGE>
<TABLE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                              BALANCE SHEET
                            SEPTEMBER 30, 1996
                               (Unaudited)
<CAPTION>



                                 ASSETS
<S>                                                           <C>
CURRENT ASSETS
    Cash and Cash Equivalents                                 $ 14,560
    Accounts Receivable                                         28,486
    Inventory                                                   78,687
    Deposits and Prepaid Expenses                                3,367
    Note Receivable - Employee, Current Portion                  4,633
                                                              ________
  TOTAL CURRENT ASSETS                                         129,733
                                                              ________
  PROPERTY AND EQUIPMENT
    Furniture and Equipment                                     48,928
    Leasehold Improvements                                      24,800
                                                              ________
                                                                73,728
    Less:  Accumulated Depreciation                             37,206
                                                              ________
  TOTAL PROPERTY AND EQUIPMENT                                  36,522
                                                              ________
  OTHER ASSETS
    Note Receivable - Employee, Less Current Portion             2,207
    Deposits and Other                                           2,599
    Advances to and Investment in Joint Venture                 40,360
    License Fee                                                 25,000
    Deferred Offering Costs                                    127,371
                                                              ________
  TOTAL OTHER ASSETS                                           197,537
                                                              ________
TOTAL ASSETS                                                  $363,792
                                                              ========
</TABLE>





                            (CONTINUED)

                                -1-
<PAGE>
<TABLE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                              BALANCE SHEET
                            SEPTEMBER 30, 1996
                               (Unaudited)
                               (CONCLUDED)
<CAPTION>


                   LIABILITIES AND STOCKHOLDERS' EQUITY
<S>                                                       <C>
  CURRENT LIABILITIES
    Accounts Payable and Accrued Expenses                 $     7,422
    Note Payable on Line-of-Credit                             52,200
    Payable to Officer                                          1,465
                                                          ___________
  TOTAL CURRENT LIABILITIES                                    61,087

  COMMON STOCK SUBJECT TO REPURCHASE
    Common Stock, Par Value $.0001 Per Share, 
      100,000 Shares Authorized, 25,000 Shares 
      Issued and Outstanding,                                   6,250
                                                          ___________

  STOCKHOLDERS' EQUITY
    Voting Common Stock, Par Value $.0001 Per Share, 
    10,000,000 Shares Authorized, 1,225,110 Shares 
    Issued and Outstanding,    Non-Voting Common Stock,
    Par Value $.0001 Per Share, 10,000,000 Shares 
    Authorized, 0 Shares Issued                                   122
    Additional Paid-In Capital                              1,670,682
    Common Stock Issued for Future Services                   (19,937)
    Accumulated Deficit                                    (1,354,412)
                                                          ___________
  TOTAL STOCKHOLDERS' EQUITY                                  296,455
                                                          ___________


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $   363,792
                                                          ===========

</TABLE>



             See Accompanying Notes to Financial Statements.

                                   -2-
<PAGE>
<TABLE>
                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
<CAPTION>
                                  Three Months          Nine Months
                                     Ended                Ended
                                 September 30,         September 30,
                                1996      1995        1996     1995
<S>                          <C>        <C>        <C>        <C>
Product Sales                $  53,527  $  16,082  $ 200,340  $199,580
Cost of Products Sold            7,712      8,940     22,252    38,045
                             _________  _________  _________  ________
GROSS PROFIT                    45,815      7,142    178,088   161,535
                             _________  _________  _________  ________
OPERATING EXPENSES
  Advertising                    1,275     16,050      8,107    37,449
  Depreciation and Amortization  9,229      4,350     40,278    13,051
  Consulting Fees                   --         --      1,501     6,000
  Office Expenses                8,396      8,822     25,803    31,486
  Professional Fees              4,763     23,810     25,146    76,725
  Travel and Entertainment       1,637      1,566     10,748     6,291
  Rent                           5,373      5,148     16,119    15,789
  Research and Development Costs 2,050      1,850      5,983    15,430
  Salaries and Benefits         37,024     27,690     94,177   109,977
  Taxes and Licenses             3,477      2,722     11,019    11,096
  Bad Debts                         --         --         --        48
                             _________  _________  _________  ________
TOTAL OPERATING EXPENSES        73,224     92,008    238,881   323,342
                             _________  _________  _________  ________
INCOME (LOSS) FROM  OPERATIONS (27,409)   (84,866)   (60,793) (161,807)
                             _________  _________  _________  ________
OTHER INCOME (EXPENSE)
  Investment and Other Income    1,024      2,285      1,991    9,104
  Gain Due to Change in 
    Redemption Price on Common 
    Stock Subject to Repurchase  3,125         --         --       --
  Equity in Loss from 
    Unconsolidated Subsidiary      (35)    (5,046)    (9,134) (15,014)
  Interest Expense              (1,243)       (44)    (2,515)     (44)
                             _________  _________  _________  ________
TOTAL OTHER INCOME (EXPENSE)     2,871     (2,805)    (9,658)  (5,954)
                             _________  _________  _________  ________
NET INCOME (LOSS)            $ (24,538) $ (87,671) $ (70,451) $(167,761)
                             =========  =========  =========  =========
NET INCOME (LOSS) PER 
  COMMON SHARE               $    (.02) $    (.09) $    (.06) $    (.17)
                             =========  =========  =========  =========
WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING  1,183,803  1,008,700  1,127,178  1,013,096
                             =========  =========  =========  =========
</TABLE>
              See Accompanying Notes to Financial Statements.

                                    -3-
<PAGE>
<TABLE>
                 CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                        STATEMENTS OF CASH FLOWS
             INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                                (Unaudited)
<CAPTION>


                                                       Nine Months
                                                   Ended September 30,
                                                    1996        1995
<S>                                              <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Loss                                       $(70,451)    $(167,761)
                                                 ________     _________
  Adjustments to Reconcile Net Loss to Net 
    Cash Used for Operating Activities:
      Depreciation and Amortization                40,278        13,051
      Deferred Compensation Earned                  4,312            --
      Equity in Loss of Unconsolidated
        Joint Venture                               9,134        15,014
      Stock Issued for Services                     9,000        18,375
      Decrease in Accounts Receivable               8,342           115
      Increase in Inventory                          (406)       (9,003)
      Decrease in Deposits and Prepaid 
        Expenses                                   15,492         1,863 
      Increase in Deferred Costs                  (40,615)           --
      Decrease in Accounts Payable and
        Accrued Expenses                          (38,198)       (8,300)
                                                 ________     _________
      Total Adjustments                             7,339        31,115
                                                 ________     _________
NET CASH USED FOR OPERATING ACTIVITIES            (63,112)     (136,646)
                                                 ________     _________
CASH FLOWS FROM INVESTING ACTIVITIES
  Advances to Joint Venture                       (17,000)      (32,000)
  Repayment of Employee Loan                        5,302            --
  Purchase of Equipment and Leasehold
    Improvements                                     (530)      (26,837)
  Cash Paid for License                                --       (47,976)
  Cash Loan to Employee                            (2,142)      (11,018)
                                                 ________     _________ 
NET CASH USED IN INVESTING ACTIVITIES             (14,370)     (117,831)
                                                 ________     _________
</TABLE>

                                (CONTINUED)

                                    -4-
<PAGE>
<TABLE>
               CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                        STATEMENTS OF CASH FLOWS
             INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                                (Unaudited)
                                (CONCLUDED)
<CAPTION>
 
                                                        Nine Months
                                                     Ended September 30,
                                                     1996         1995
<S>                                             <C>          <C>
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds From Issuance of Common Stock,
    Net of Offering Costs                           3,025            --
  Cash Paid for Treasury Stock                         --       (10,417)
  Proceeds from Line-of-Credit                     49,700         2,000
  Proceeds from Loan Payable to Officer             1,465            --
  Payments on Line-of-Credit                       (2,500)           --
  Payment to Stockholder on Loan                   (6,421)           --
                                                 ________     _________
NET CASH PROVIDED (USED) BY FINANCING 
  ACTIVITIES                                       45,269        (8,417)

NET DECREASE IN CASH AND CASH EQUIVALENTS         (32,213)     (262,894)
CASH AND CASH EQUIVALENTS, Beginning of Period     46,773       390,396
                                                 ________     _________
CASH AND CASH EQUIVALENTS, End of Period         $ 14,560     $ 127,502
                                                 ========     =========


SUPPLEMENTAL DISCLOSURE OF CASH FLOW 
  INFORMATION
    Cash Paid During the Period For:
      Interest                                  $  2,515      $      44
SUPPLEMENTAL DISCLOSURE OF NONCASH
  INVESTING AND FINANCING ACTIVITY
    Common Stock Issued for Services            $ 21,000      $      --
    Contribution by Stockholder                 $  6,000      $      --

</TABLE>











              See Accompanying Notes to Financial Statements.

                                    -5-
<PAGE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)




The information presented herein as of September 30, 1996, and for the 
three and nine months ended September 30, 1996 and 1995, is unaudited. 


NOTE 1 - BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance 
with generally accepted accounting principles for interim financial 
information and with the instructions to Form 10-QSB and Rule 10-01 of 
Regulations S-X. Accordingly, they do not include all of the 
information and footnotes required by generally accepted accounting 
principles for complete financial statements. In the opinion of 
management, all adjustments (consisting of normal required adjustments) 
considered necessary for a fair presentation have been included.  
Operating results for the nine month period ended September 30, 1996, 
are not necessarily indicative of the results that may be expected for 
the year ending December 31, 1996. For further information, refer to the 
financial statements and footnotes thereto included in the Company's 
annual report on Form 10-KSB for the year ended December 31, 1995.


NOTE 2 - COMMITMENTS

Effective January 1, 1995, the Company obtained an exclusive right to 
market a dietary supplement in the United States for three years. The 
Company agreed to pay approximately $60,000 for this right.  The 
agreement allows the Company to recover this fee through discounts on 
inventory purchased through December 31, 1997.  Prior to December 31, 
1995, the amortization of this license fee was recognized as discounts 
were received.  However, after consultation with the Securities and 
Exchange Commission, the license fee is now being amortized on a 
straight-line basis over the three year period of the contract.  The 
total accumulated amortization expense under the straight line method 
since the inception of the contract is $35,000.  Since $7,200 had been 
recorded as of December 31, 1995, the remaining $27,800 has been 
recognized as amortization expense for the nine month period ended 
September 30, 1996.

On August 1, 1994, the Company entered into a five year consulting 
agreement (renewable annually by mutual agreement) with Yellen 
Associates (Yellen), an unrelated company. Yellen agreed to provide 
ideas for new products in the nutritional, geriatric, and related 
health fields; to find companies and/or products suitable for 
acquisition; to find products suitable for manufacture and/or 


                                 -6-
<PAGE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)
                               (CONTINUED)



NOTE 2 - COMMITMENTS (continued)

distribution; and to secure customers for Company products. All 
products offered by Yellen and accepted by the Company will belong 
exclusively to the Company with all related rights. In return, the 
Company agreed to pay Yellen $2,000 per month for nine months. In May 
1995, the Company discontinued its monthly payment to Yellen in 
accordance with the agreement. Additionally, the Company will pay 
Yellen royalties of up to 5% of sales for products acquired through 
Yellen, or Cyclodextrin sales made by Yellen for three to five years. 
The Company also agreed to sell to Yellen over a period of three years 
from August 1, 1994, up to 30,000 shares of Company stock at a 
discount of 50% of the market price quoted at the time of purchase, 
contingent upon the amount of commissions and royalties.  The conditions 
were not met, therefore, the Company is not obligated to sell shares to 
Yellen at the agreed upon discount.

On July 7, 1994, the Company entered into a five year noncancelable 
operating lease for office space, commencing October 1994.  The Company 
has an option to rent additional space and a purchase option in which 
ten percent of the lease payments may be applied to the purchase price.

Rent expense under the foregoing lease and all other operating leases 
was $5,373 and $5,148 for the three months ended September 30, 1996 and 
1995, respectively, and was $16,119 and $15,789 for the nine months 
ended September 30, 1996 and 1995, respectively.

In July of 1996, the Company registered Form SB-2 with the Securities and 
Exchange Commission for a proposed securities offering of 250,000 shares of 
common stock and 125,000 common stock purchase warrants with a combined 
proposed maximum aggregate offering price of $1,250,500.

On January 1, 1996, the Company resolved to issued 48,000 shares of its 
common stock to various unrelated parties for services performed in 
connection with the Company's anticipated self-underwritten stock 
offering as noted above.  Furthermore, two of these parties acknowledge 
that in the event the gross proceeds of the offering are less than 
$500,000, then one-half of their shares (20,000) shall be returned to 
the Company.  The shares issued will bear a restrictive legend.  The Company 
valued the 48,000 shares at $12,000 which is approximately 50% 






                                 -7-
<PAGE>
               CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)
                               (CONTINUED)



NOTE 2 - COMMITMENTS (continued)

less than the bid price at the date of issuance.  The quoted market price was 
not used to value the stock since the stock does not trade freely in an 
established market.  Of these shares, $47,000 were issued on August 19, 1996.  
The other 1,000 shares will not be issued.

For the three month period ended March 31, 1996, which was previously 
reported, only $5,000 of the total cost of these professional fees was
deferred.  Since all the costs associated with these shares are directly 
attributable to the proposed offering, the remaining $7,000 was reclassified 
as a deferred charge in the three month period ended September 30, 1996.  In 
addition, all other specific incremental professional fees incurred in the 
second and third quarters of 1996 which are clearly and directly attributable 
to the Company's effort to obtain equity financing have been deferred.  Of 
these additional fees, $5,135 was reported as an expense for the three months 
ended March 31, 1996.  This amount was reclassed as a deferred charge in the 
second quarter.  The total amount of professional fees deferred for the three 
months ended September 30, 1996 is $16,104.  The total amount deferred for the 
nine months ended September 30, 1996 is $42,153.  These deferred professional 
costs will be offset against the net proceeds of the offering.


The Company entered into an agreement with Cyclop h.f. (Cyclops), a company 
located in Reykjavik, Iceland, in May 1996 to secure limited exclusivity to 
certain inventions embodied in patents owned by Cyclops for the purpose of 
creating an organization that will commercialize products using those 
inventions.  In consideration, the Company agrees to share equally with 
Cyclops the net profits derived from products commercialized by CTD or 
affiliates of the Company that use the inventions.  Further, contingent on the 
successful completion of equity financing in the amount of at least 
$5,000,000, the Company agrees to pay Cyclops $30,000 per month.  This 
agreement may be cancelled by Cyclops at any time after September 1, 1996 with 
30 day notification.  As of September 30, 1996, no cancellation notice was 
received by CTD.

In January 1996, the Company entered into an agreement with Geller 
International Associates (Geller), an unrelated company, to provide various 
public relation services.  In return, the Company agreed to pay Geller $2,000 
per month plus out-of-pocket expenses with the first three months being 
guaranteed.  In addition, the Company agreed to pay Geller 



                                 -8-
<PAGE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)
                               (CONTINUED)



NOTE 2 - COMMITMENTS (concluded)

1% of net moneys received as a result of Geller's efforts to secure funding 
for the current public offering.  The total amount paid to Geller to date was 
$10,461 of which $4,660 was recorded as a consulting fee during the first 
quarter of 1996.

Since all the services performed by Geller to date represent activities for 
the purpose of promoting the current public offering, the total consulting 
fees paid to Geller to date were deferred in the second quarter of 1996.  In 
addition, Rick Stratton, president of CTD, gave Geller $6,000 worth of CTD 
stock on behalf of the Company to provide the above mentioned services.  The 
value of the stock given was recorded as a contribution to the Company and the 
related expense to Geller was deferred.

The agreement was cancelled at the end of the initial three months.

In January 1996, the Company entered into an agreement with Diversified 
Corporate Consulting Group, L.C., an unrelated company, to provide consulting 
services to be completed within 12 months.  In return, the Company agreed to 
pay Diversified a) a $10,000 non-refundable initial fee, and b) common stock 
of the Company, in a quantity equal to 10% of all outstanding common stock, in 
lieu of document licensing fees and of required cash payments for up to an 
aggregate of 260 hours of hourly consulting and licensing fees.  The common 
stock issued to Diversified on July 29, 1996, under this agreement was 110,010 
shares.

NOTE 3 - COMMON STOCK TRANSACTIONS

During 1994, the Company adopted a non-qualified employee stock plan and 
in December 1994 issued 25,000 shares to employees for future services. 
The shares are nontransferable by the employees for five years. During 
years three through five, the employee may request the Company to 
purchase all or part of the shares at 50% of the current market price 
of the stock at that date.

The Company valued the 25,000 shares at $37,500, which is approximately 
50% less than the bid price at the date of issuance.  The quoted market 
price was not used to value the stock since the stock does not trade 
freely in an established market and, thus, a market price could not 
accurately be established. The Company recorded the $37,500 as stock 
issued for future services, which is classified as a reduction to 
stockholders' equity in the accompanying financial statements. The 


                                 -9-
<PAGE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)
                               (CONTINUED)



NOTE 3 - COMMON STOCK TRANSACTIONS (concluded)

Company is amortizing this amount to expense over five years on the 
straight-line basis, the estimated benefit period of the future 
services. Any unamortized amount will be charged to expense if an 
employee terminates their employment with the Company. The Company 
expensed $1,438 and $875 under this plan for the three months ended 
September 30, 1996 and 1995, respectively, and expensed $4,312 and 
$18,375 for the nine months ended September 30, 1996 and 1995.

In June 1995, the Company purchased 10,000 shares of its own common 
stock for $25,000 from a former employee, payable over the next twelve 
months. This stock was held in treasury and reissued under the employee 
stock plan as noted above.  As of September 30, 1996, all amounts have 
been paid and no further payable is due.

Effective November 15, 1995, the Company adopted an employee stock purchase 
plan.  Under this plan, employees may purchase shares of Company stock up to 
the amount of their gross pay for the period.  These shares will be restricted 
from sale for two years, therefore they will be sold to employees at 50% of 
the most recent trading price at the date of purchase.  This plan will expire 
at the next private/public offering of Company stock.  As of September 30, 
1996, employees had purchased 33,400 shares for $9,953 under this plan.  These 
shares were issued on September 6, 1996.

On April 26, 1996, the Company resolved to authorize the issuance of 16,000 
shares of voting common stock to Rick Stratton, President, as a bonus for 
services rendered to the Company.  These shares were issued on August 15, 
1996.

In the second quarter of 1996, the Company amended its Articles of 
Incorporation whereby the number of voting shares authorized was increased 
from 5,000,000 to 10,000,000.  In addition, non-voting common shares were 
created.  The total amount of non-voting common shares authorized is 
10,000,000.


NOTE 4 - COMMON STOCK SUBJECT TO REPURCHASE

As detailed in Note 3 above, the Company established a nonqualified 
employee stock plan in 1994, and issued shares under this plan in 
December, 1994.  Also, as noted above, the stock issued under this 
Plan is redeemable by the Company at the option of the employee, at 


                                 -10-
<PAGE>
                CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)
                               (CONTINUED)



NOTE 4 - COMMON STOCK SUBJECT TO REPURCHASE (concluded)

50% of the then current market value.  The employee can demand 
redemption at any time beginning on the first day of the third year 
after issuance ending five years after issuance.

The Company has reserved 100,000 of its common shares authorized of 
5,000,000 to be used under this Plan.

The common stock subject to repurchase is reflected on the balance sheet
at 50% of the market value as of the balance sheet date.  Changes in the 
redemption amount are recognized in the accompanying statement of operations 
as "Gain due to change in redemption price on common stock subject to 
repurchase."

Common stock subject to repurchase are redeemable by the holder as follows:

          Year Ending                          Shares   Amount
             1996                                  --   $   --
             1997                              15,000    5,625
             1998                              10,000    3,750
                                               ______   ______
          Total                                25,000   $9,375
                                               ======   ======


NOTE 5 - MAJOR CUSTOMERS

Sales to four customers for the nine months ended September 30, 1996, 
comprised approximately 70% of total sales. Sales to four customers were 85% 
of total sales for the nine months ended September 30, 1995.


NOTE 6- LINE OF CREDIT

The Company has a $75,000 line of credit with a bank. Interest is due 
monthly at prime plus 2%. Any outstanding principal and interest is 
due on October 31, 1996. The line is collateralized by accounts receivable and 
inventory.  As of September 30, 1996, there is $52,200 outstanding on this 
line-of-credit.  Total interest expense of $2,398 was recorded related to this 
line-of-credit for the nine months ended September 30, 1996.



                                  -11-
<PAGE>
                 CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)
                               (CONCLUDED)



NOTE 7 - JOINT VENTURE

Effective May 1, 1995, the Company entered into a joint venture 
agreement with Ocumed, Inc. (Ocumed), an unrelated company. The joint 
venture is organized as Ocudex, Inc. (Ocudex) with the Company and 
Ocumed each owning 50% of Ocudex. The Company has committed to funding 
Ocudex up to $120,000 over the next twelve months. The Company has 
advanced Ocudex $51,000 as of September 30, 1996.

The Company accounts for its investment in the Ocudex joint venture 
using the equity method of accounting whereby its investment is 
carried at cost, including advances, adjusted for the Company's share 
of earnings and losses.  The Company experienced a realized loss
associated with this investment of $35 and $9,134 for the three and nine 
months ended September 30, 1996, respectively.































                                 -12-
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  

Management Discussion and Analysis

Liquidity and Capital Resources

As of September 30, 1996 the Company's liquidity as measured by its total 
current assets leveled off at $125,100; down by  7% from the previous quarter 
and 32% for the same 9 month period in 1995. The difference from the same 
period in 1995 is clearly attributable to the reduction in cash and cash 
equivalents while the 2Q/96 to 3Q/96 drop is simply part of the volatility of 
the company's A/R. Two -thirds of current assets is in inventory; while this 
inventory is quite stable in terms of shelf-life, the Company has not been 
successful in establishing distribution channels for its sale. It is the 
movement of this inventory that will determine whether the company is 
profitable for the year. Cash available was $14,560, compared to $6,602 at the 
end of the second quarter, 1996.

The Company has established substantial inventory of Garlessence and does not 
expect to expend more than an additional $10,000 in incidental costs to 
distribute the product before substantial distributor sales are realized.  In 
the first nine months of 1996 the company sold directly less than $1,000 of 
Garlessence. Before the end of the year the Company is looking to move the 
Garlessence in bulk to overseas bulk purchasers or in a U.S. promotion with a 
local start-up multi-level marketing organization. The Company has postponed 
purchasing additional inventory of Garlessence until sales reach levels to 
support such purchases.  Therefore, no new expenditures are anticipated for 
Garlessence(trademark) or Appromote(trademark) until sales revenue is 
generated to cover such expenditures.

However, should the rate of expansion and volume of sales increase 
substantially, the Company would require additional funds to finance inventory 
and accounts receivable and to fund increased costs of advertising and 
marketing, among other things. To meet the financial needs of expected future 
growth, the Company has registered with the SEC to sell in a public offering 
in 1996 and 1997. $1.25 million worth of common shares and warrants of the 
company.  In addition, in June of 1995, the Company obtained a $75,000 line of 
credit from a commercial bank.  As of September 30, 1996, there is a $52,200 
outstanding balance on this line of credit.

On January 1, 1996, the Company resolved to issue 48,000 shares of its common 
stock to various unrelated parties for services performed in connection with 
the Company's anticipated self-underwritten stock offering as noted above.  
Furthermore, two of these parties acknowledge that in the event the gross 
proceeds of the offering are less than $500,000, then one-half of their shares 
(20,000) shall be returned to the Company.  The shares issued will bear a 
restrictive legend.  The Company valued the 48,000 shares at $12,000 which is 
approximately 50% less than the bid price at the date of issuance.  The quoted 
market price was not used to value the stock since the stock does not trade 
freely in an established market.  Of these shares, 47,000 were issued on 
August 15, 1996.  The other 1,000 will not be issued.

On July 7, 1994 the Company entered into a five-year lease for 3,000 square 
feet of space for an office, laboratory, and manufacturing plant.  The Company 
moved into the building during October 1994.  Rent payments are $18,000 in 
year one, $18,900 in year two, $19,484 in year three, $20,844 in year four, 
and $21,888 in year five.  Rent for year two has been prepaid and earns 
interest at 9% on the balance not yet applied each month.  The Company also 
has a purchase option on this space in which ten percent of the lease payments 
may be applied to the purchase price.  The Company may exercise an option to 
lease an additional 3,000 square feet of adjoining space.  The Company houses 
its administrative offices, laboratory, and manufacturing facility in this 
complex, utilizing an aggregate of approximately 1,650 square feet.  This 
facility has been built, and can be expanded, according to "GMP" (good 
manufacturing practices) specifications in anticipation of the commercial 
needs of the markets the Company serves.  During 1994 and 1995, the Company 
expended significant effort and $65,000 in capital improvements to complete 
the facility.  The remaining 1,350 square feet of space is for pilot plant 
manufacturing and an analytical laboratory.  However, this expansion will 
require additional funding and there is no assurance that any additional 
funding will be available.  Management has no immediate plans for this 
expansion.

On August 1, 1994, the Company entered into a five-year consulting agreement 
(renewable annually by mutual agreement) with Yellen Associates ("Yellen"), an 
unrelated company.  Yellen agreed to provide ideas for new products in the 
nutritional, geriatric, and related health fields; to find companies and/or 
products suitable for acquisition; to find products suitable for manufacture 
and/or distribution; and to secure customers for Company products.  All 
products offered by Yellen and accepted by the Company will belong exclusively 
to the Company with all related rights.  The conditions of that agreement 
remaining at this time are that the Company will pay Yellen royalties of up to 
5% of sales for products acquired through Yellen, or cyclodextrin sales made 
by Yellen.   The Company also agreed to sell to Yellen over a period of three 
years from August 1, 1994, up to 30,000 shares of Company stock at a discount 
of 50% of the market price quoted at the time of purchases, contingent upon 
the amount of commissions and royalties.  The conditions were not met, 
therefore the company is no longer obligated to sell shares to Yellen at the 
agreed upon discount.

Effective January 1, 1995, the Company obtained an exclusive right to market a 
dietary supplement in the United States for three years. The Company agreed to 
pay approximately $60,000 for this right.  The agreement allows the Company to 
recover this fee through discounts on inventory purchased through December 31, 
1997.  Prior to December 31, 1995, the amortization of this license fee was 
recognized as discounts were received.  However, after consultation with the 
Securities and Exchange  Commission, the license fee is now being amortized on 
a straight-line basis over the three year period of the contract.  The total 
accumulated amortization expense under the straight line method since the 
inception of the contract is $35,000.  Since $7,200 had been recorded as of 
December 31, 1995, the remaining $27,800 has been recognized as amortization 
expense in the first nine months of 1996.

On May 1, 1995 the Company entered into a joint venture operating as Ocudex, 
Inc.  The Company and Ocumed, Inc., an unrelated company, each own 50% of 
Ocudex.  The Company has agreed to fund on a best efforts basis up to $10,000 
per month for not more than 12 months.  CTD had advanced Ocudex $34,000 in 
1995 on which it realized an operating loss of $1,505, but a taxable profit of 
$63.  As of September 30, 1996, the Company advanced Ocudex an additional 
$17,000 and has realized a loss of $9,134 for the first nine months of 1996.  
The Company intends to apply additional funds during 1996 to be used for 
inventory and production costs and also to defray the costs of raising equity 
capital that will allow Ocudex to obtain FDA approval for proprietary 
cyclodextrin-improved generic ophthalmic drugs using cyclodextrin complexes 
brought to it by CTD.  The initial and immediate benefit of successfully 
obtaining such funding will be to allow CTD to book a net asset value that 
will qualify it for NASDAQ small cap listing.  As of September 30, 1996 there 
have been no sales recorded by Ocudex of these products.

The Company entered into an agreement with Cyclops h.f. (Cyclops), a company 
located in Reykjavik, Iceland, in May 1996 to secure limited exclusivity to 
certain inventions embodied in patents owned by Cyclops for the purpose of 
creating an organization that will commercialize products using those 
inventions.  In consideration, the Company agrees to share equally with 
Cyclops the net profits derived from products commercialized by CTD or 
affiliates of the Company that use the inventions.  Further, contingent on the 
successful completion of equity financing in the amount of at least 
$5,000,000, the Company agrees to pay Cyclops $30,000 per month.  This 
agreement may be canceled by Cyclops at any time after September 1, 1996 with 
30 day notification.  No notification of cancellation has been received as of 
September 30, 1996.

In January 1996, the Company entered into an agreement with Geller 
International Associates (Geller), an unrelated company, to provide various 
public relation services.  In return, the Company agreed to pay Geller $2,000 
per month plus out-of-pocket expenses with the first three months being 
guaranteed.  In addition, the Company agreed to secure funding for the current 
public offering.  The total amount paid to Geller for the six months ending 
June 30, 1996 was $10,461.  The agreement was cancelled in May 1996, with no 
further amounts paid or due to Geller.

The Company purchased 10,000 shares of its own common stock for $25,000 from a 
former employee on May 3, 1995 payable over the following 12 months.  As of 
June 30, 1996, that obligation has been paid in full.

In the second quarter of 1996, the Company amended its Articles of 
Incorporation whereby the number of voting shares authorized was increased 
from 5,000,000 to 10,000,000.  In addition, non-voting common shares were 
created.  The total amount of non-voting common shares authorized is 
10,000,000.

In 1995, the Company sponsored validation testing at the University of Florida
on a new cyclodextrin-based veterinary euthanasia product; approximately 
$12,500 has been spent in the initial studies required to test this new 
product. No additional expenses were incurred for the new cyclodextrin-based 
veterinary euthanasia product in the first quarter.  Additional formulation 
work and efficacy validation will be done along with the writing and 
submission of the patent protecting the invention.  The Company spent $1,375 
on this work in the second quarter of 1996.  No expenses were incurred during 
the third quarter for this work.

The Company continues to explore the acquisition and development of new 
products through licensing and joint ventures with and without cyclodextrins 
to increase sales.  In an agreement with Cyclops h.f. of Reykjavik, Iceland, 
effective May 22, 1996 and continuing for not more than 12 continuous months, 
the Company has obtained a Right of First Refusal (ROFR) to the ophthalmic 
inventions in U.S. Patent 5,472,959.  CTD intends to secure the rights to such 
products for Ocudex, Inc - its first joint venture company.

Results of Operations

Sales of cyclodextrins and related manufactured complexes have historically 
been volatile.  Sales are primarily to large pharmaceutical and food companies 
for research and development purposes.  Sales have also been concentrated 
among a few large customers.  Product sales were $54,317 and $16,082 for the 
three months ended September 30, 1996 and 1995, respectively and were $200,340 
and $199,580 for the nine months ended September 30, 1996 and 1995. The 
Company is now reproducing the sales levels of a year ago.  Such volatility 
will continue to make the Company's cash use planning from quarter to quarter 
difficult.  The Company is making consistent progress to moderate the 
volatility by expanding its product line to more routinely purchased products.
The Company expects to increase sales of Garlessence in 1996.  Although sales 
have been much slower developing than anticipated, as they grow, they will 
provide not only a substantial increase in sales revenues but stability as 
well.

The Company was able to increase its gross profit margin for the first nine 
months of 1996 to 89%, compared to 81% for the same period in 1995. The future 
sales of Garlessence at a gross profit of approximately 25% will contribute to 
overall profitability, but at a substantial reduction in gross profit 
percentage for the year.

During the first nine months of 1996, the Company achieved an overall decrease 
in expenses of 27% from the comparable first nine month period of 1995.  This 
reduction was achieved by reducing salary expenses, office expenses, 
professional fees, and advertising expenses across the board. These expense 
reductions were implemented while still expanding our sales base, developing 
new products, and implementing our strategy of creating operational affiliates 
that will use cyclodextrins in herbal medicines and wastewater remediation.


<PAGE> 
PART II: Other Information 
 
 
Item 6.  Exhibits and Reports on Form 8-K 
 
None. 
 
(a)  Exhibits 
 
Exhibit     Description                                             Page 
 
   (2)      Plan of Acquisition, Reorganization, Arrangement, 
            Liquidation or Succession                                None 
 
   (3)      Articles of Incorporation and By-Laws: 
            (i) Certificate of Incorporation filed August 9, 1990,  
            incorporated by reference to the Company's Form 10-SB 
            filed with the U.S. Securities and Exchange Commission 
            February 1, 1994. 
 
            (ii)  By-Laws incorporated by reference to the Company's  
            Form 10-SB filed with the U.S. Securities and Exchange 
            Commission February 1, 1994. 
 
            (iii) Certificates of Amendment to the Articles of 
            Incorporation filed November 18, 1993, and September 24, 
            1993, incorporated by reference to the Company's Form 10-SB 
            filed with the U.S. Securities and Exchange Commission 
            February 1, 1994. 
 
   (4)      Instruments defining the Rights of Security Holders      None 
 
   (10)     Material Contracts                                       None 
 
   (12)     Statement re: Computation of Per Share Earnings           
 
  (15)      Letter re: Unaudited Interim Financial Information       None 
 
  (18)      Letter re: Change in Accounting Principles               None 
 
  (19)      Report Furnished to Security Holders                     None 
 
  (22)      Published Report re: Matters Submitted to Vote of 
            Security Holders                                         None 
 
  (23)      Consents of Experts and Counsel                          None 
 
  (24)      Power of Attorney                                        None 
 
  (27)     Financial Data Schedule 
 
  (99)      Additional Exhibits                                      None 
 
(b) Reports on Form 8-K                                              None 
<PAGE> 
	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. 
 
 
Dated:  November 14, 1996 
 
                                          C. E. RICK STRATTAN 
                                          C. E. RICK STRATTAN 
                                          President, Chief Executive Officer, 
                                          Chief Financial Officer