**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-QSB**

**x**
**      QUARTERLY REPORT UNDER SECTION 13 OR 15(d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**0-9314**

**ACCESS      PHARMACEUTICALS, INC.**

|  **Delaware**                            |  **83-0221517  **                                    |
|-----------------------------------------------|---------------------------------------------------------------------|
|  (State                of Incorporation) |  (I.R.S. Employer                I.D.                No.) |

**2600      Stemmons Frwy, Suite 176, Dallas, TX 75207 **

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**ACCESS      PHARMACEUTICALS, INC.**

**INDEX**

| PART I - FINANCIAL INFORMATION           |  Page                No.                                                                                                                                                                  |
|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Item                1.   |  Condensed Consolidated Financial Statements:                                                                                                                                             |   |
|                                     |  Condensed                Consolidated Balance Sheets at March                31, 2007 (unaudited) and   December 31, 2006                (audited)                        |  25 |
|                                     |  Condensed                Consolidated Statements of Operations (unaudited) for the three                months                ended March 31, 2007 and March 31, 2006 26            |  26 |
|                                     |  Condensed                Consolidated Statements of Cash Flows (unaudited) for                the  three                months ended March 31, 2007 and March 31, 2006 27 |  27 |
|                                     |  Notes to Unaudited Condensed Consolidated Financial Statements                                                                                                                      |  28 |
|  Item                2.        | Management's Discussion and Analysis              or              Plan              of Operation                                                                                               |  2 |
| Item                3.                   |  Controls and Procedures                                                                                                                                                                  |  11 |
|                                | Risk Factors                                                                                                                                                                              |  11 |
|                                     |                                                                                                                                                                                           |   |
|  PART II - OTHER INFORMATION        |                                                                                                                                                                                           |
|  Item                1              | Legal Proceedings                                                                                                                                                                              |  22 |
|  Item                2              | Unregistered Sales of Equity Securities              and              Use of Proceeds                                                                                                     |  22 |
|  Item                3         |  Defaults Upon Senior Securities                                                                                                                                                     |  22 |
|  Item                4              |  Submission of Matters to a Vote of              Security Holders                                                                                                                    |  22 |
|  Item                5              |  Other Information                                                                                                                                                                   |  22 |
|  Item                6.             |   Exhibits                                                                                                                                                                      |  23 |
|  SIGNATURES                         |                                                                                                                                                                                           |  24 |

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**PART      I -FINANCIAL INFORMATION**

*This      Quarterly Report (including the information incorporated by reference) contains      forward-looking statements within the meaning of Section 27A of the Securities      Act of 1933, as amended, and Section 21E of the Securities Exchange Act of      1934,      as amended, that involve risks and uncertainties including, but not limited      to      the uncertainties associated with research and development activities, clinical      trials, our ability to raise capital, the timing of and our ability to achieve      regulatory approvals, dependence on others to market our licensed products,      collaborations, future cash flow, the timing and receipt of licensing and      milestone revenues, the future success of our marketed products and products      in      development, our sales projections, and the sales projections of our licensing      partners, our ability to achieve licensing milestones and other risks described      below as well as those discussed elsewhere in this Quarterly Report, documents      incorporated by reference and other documents and reports that we file      periodically with the Securities and Exchange Commission. These statements      include, without limitation, statements relating to our ability to continue      as a      going concern, anticipated product approvals and timing thereof, product      opportunities, clinical trials and U.S. Food and Drug Administration (“FDA”)      applications, as well as our drug development strategy, our clinical development      organization, expectations regarding our rate of technological developments      and      competition, our plan not to establish an internal marketing organization,      our      expectations regarding minimizing development risk and developing and      introducing technology, the size of our targeted markets, the terms of future      licensing arrangements, our ability to secure additional financing for our      operations and our expected cash burn rate. These statements relate to future      events or our future financial performance. In some cases, you can identify      forward-looking statements by terminology such as “may,” “will,” “should,”“expects,” “plans,” “could,” “anticipates,” “believes,” “estimates,” “predicts,”“potential” or “continue” or the negative of such terms or other comparable      terminology. These statements are only predictions and involve known and unknown      risks, uncertainties and other factors, including the risks outlined under“Risk      Factors,” that may cause our or our industry’s actual results, levels of      activity, performance or achievements to be materially different from any future      results, levels or activity, performance or achievements expressed or implied      by      such forward-looking statements.*

*Although      we believe that the expectations reflected in the forward-looking statements      are      reasonable, we cannot guarantee future results, levels of activity, performance      or achievements. We are under no duty to update any of the forward-looking      statements after the date of filing this Form 10-QSB to conform such statements      to actual results.*

**ITEM      1**
**FINANCIAL      STATEMENTS**

**ITEM      2**
**MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**

**OVERVIEW**

----

**Products**

**ACCESS      DRUG PORTFOLIO**

| **Compound**                                                             |   | **Originator**                   |   |  **Technology** |   | **Indication** |   | **FDA                Filing**          |   | **Clinical****Stage                (1)** |
|--------------------------------------------------------------------------|--------|----------------------------------|--------|----------------------|--------|----------------|--------|----------------------------------------|--------|------------------------------------------|
| Cancer                                                                   |   |                             |   |                 |   |           |   |                                   |   |                                     |
| MuGard™                                                            |   | Access                           |   | Mucoadhesiveliquid   |   | Mucositis      |   | 510(k)                                 |   | Marketing                clearance       |
| ProLindacTM                (PolymerPlatinate,                AP5346) (2) |   | Access                - U London |   | Syntheticpolymer     |   | Cancer         |   | Clinical                Development(3) |   | Phase                II                  |
| Oral                Insulin                                              |   | Access                           |   | Cobalamin            |   | Diabetes       |   | Research                               |   | Pre-Clinical                             |
| Oral                Delivery System                                      |   | Access                           |   | Cobalamin            |   | Various        |   | Research                               |   | Pre-Clinical                             |
| Cobalamin-Targeted                Therapeutics                           |   | Access                           |   | Cobalamin            |   | Anti-tumor     |   | Research                               |   | Pre-Clinical                             |

**Approved      Products**

----

**Products      in Development Status**

----

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**RECENT      EVENTS**

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**LIQUIDITY      AND CAPITAL RESOURCES**

***.***
** **
** **

----

----

**FIRST      QUARTER 2007 COMPARED TO FIRST QUARTER 2006**

|   | · | lower                costs for product manufacturing for ProLindac™ ($247,000). Product                manufacturing was completed early in 2006 which we believe is adequate                to                supply drug product for all of our current ovarian cancer                trial; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | lower                costs of clinical trials for ProLindac™ ($137,000). We incurred start-up                costs for the clinical trial in early 2006;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other                net decreases ($8,000). |
|--------|--------|----------------------------------------------|

----

|   | · | higher                salary related expenses due to stock option expenses                ($203,000); |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | higher                investor relations expenses ($133,000) due to our increased investor                relations efforts; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased                salary and related expenses due to the hiring of a business development                officer ($47,000); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | higher                franchise taxes ($34,000); |
|--------|--------|--------------------------------------------------|

|   | · | higher                patent costs ($28,000); and |
|--------|--------|---------------------------------------------------|

**Recent      Accounting Pronouncements **

*Fair      Value Measurements *
*,*

----

*The      Fair Value Option for Financial Assets and Financial Liabilities Including      an      amendment of FASB Statement No. 115 *
*,*

**ITEM      3**
**CONTROLS      AND PROCEDURES**

**RISK      FACTORS**

**Although      Access and Somanta expect that the merger will result in benefits to the      combined company, the combined company may not realize those benefits because      of      integration and other challenges. **

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|   | • |   | unanticipated                issues in integrating information, communications and other systems; |
|--------|---------|--------|---------------------------------------------------------------------------------------------------|

|   | • |   | retaining                key employees; |
|--------|---------|--------|-----------------------------------------|

|   | • |   | consolidating                corporate and administrative infrastructures; |
|--------|---------|--------|----------------------------------------------------------------------------|

|   | • |   | the                diversion of management’s attention from ongoing business concerns; and |
|--------|---------|--------|--------------------------------------------------------------------------------------------------|

|   | • |   | coordinating                geographically separate organizations. |
|--------|---------|--------|--------------------------------------------------------------------|

**Without      obtaining adequate capital funding, we may not be able to continue as a going      concern.**

**We      have experienced a history of losses, we expect to incur future losses and      we      may be unable to obtain necessary additional capital to fund operations in      the      future.**

** **

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**We      do not have operating revenue and we may never attain      profitability.**

**We      may not be able to pay our debt and other obligations and our assets may be      seized as a result.**

----

**We      may not successfully commercialize our drug candidates.**

|   | · | some                or all of our drug candidates may be found to be unsafe or ineffective                or                otherwise fail to meet applicable regulatory standards or receive                necessary regulatory clearances; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                drug candidates, if safe and effective, may be too difficult to develop                into commercially viable drugs; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | it                may be difficult to manufacture or market our drug candidates on                a large                scale; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | · | proprietary                rights of third parties may preclude us from marketing our drug                candidates; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | third                parties may market superior or equivalent                drugs. |
|--------|--------|--------------------------------------------------------------------------------------|

**The      success of our research and development activities, upon which we primarily      focus, is uncertain.**

**We      may be unable to successfully develop, market, or commercialize our products      or      our product candidates without establishing new relationships and maintaining      current relationships.**

----

**We      may be unable to successfully manufacture our products and our product      candidates in clinical quantities or for commercial purposes without the      assistance of contract manufacturers, which may be difficult for us to obtain      and maintain.**

**We      are subject to extensive governmental regulation which increases our cost of      doing business and may affect our ability to commercialize any new products      that      we may develop.**

----

|   | · | A                mucoadhesive liquid technology product, MuGard™, has received marketing                approval by the FDA. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ProLindac™                is currently in a Phase II trial in Europe and a Phase II trial in                the                US. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ProLindac™                has been approved for an additional Phase I trial in the US by the                FDA. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | Cobalamin™                mediated delivery technology is currently in the pre-clinical                phase. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | We                also have other products in the preclinical                phase. |
|--------|--------|-------------------------------------------------------------------------------------|

**The      uncertainty associated with preclinical and clinical testing may affect our      ability to successfully commercialize new products.**

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**We      may incur substantial product liability expenses due to the use or misuse of      our      products for which we may be unable to obtain insurance      coverage.**

**We      may incur significant liabilities if we fail to comply with stringent      environmental regulations or if we did not comply with these regulations in      the      past.**

**Intense      competition may limit our ability to successfully develop and market commercial      products.**

----

**Our      ability to successfully develop and commercialize our drug candidates will      substantially depend upon the availability of reimbursement funds for the costs      of the resulting drugs and related treatments.**

**The      market may not accept any pharmaceutical products that we successfully      develop.**

----

**Trends      toward managed health care and downward price pressures on medical products      and      services may limit our ability to profitably sell any drugs that we may      develop.**

|   | · | third-party                payers' increasing challenges to the prices charged for medical products                and services; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                trend toward managed health care in the United States and the concurrent                growth of HMOs and similar organizations that can control or significantly                influence the purchase of healthcare services and products;                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | legislative                proposals to reform healthcare or reduce government insurance                programs. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

**We      may not be successful in protecting our intellectual property and proprietary      rights.**

|   | · | Mucoadhesive                technology in 2021, |
|--------|--------|-------------------------------------------------|

|   | · | ProLindac™                in 2021, |
|--------|--------|------------------------------------------|

|   | · | Cobalamin                mediated technology between 2007 and                2019 |
|--------|--------|-----------------------------------------------------------------------------------|

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**Our      business could suffer if we lose the services of, or fail to attract, key      personnel**
**.      **

**An      investment in our common stock may be less attractive because it is not traded      on a recognized public market.**

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**Ownership      of our shares is concentrated in the hands of a few investors which could limit      the ability of our other stockholders to influence the direction of the      company.**

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**Substantial      sales of our common stock could lower our stock price.**

**Failure      to achieve and maintain effective internal controls could have a material      adverse effect on our business. **

**PART      II -- OTHER INFORMATION**

**ITEM      1     **
**LEGAL      PROCEEDINGS**

**ITEM      2    **
**UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**ITEM      3**
**DEFAULTS      UPON SENIOR SECURITIES**

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

**ITEM      5**
**    OTHER      INFORMATION**

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| **ITEM                6** | **     EXHIBITS** |
|---------------------------|--------------------------------------------|

|   | 2.2 | Agreement                and Plan of Merger, by and among Access Pharmaceuticals, Inc., Somanta                Acquisition Corporation, Somanta Pharmaceuticals, Inc. Somanta                Incorporated and Somanta Limited, dated April 18, 2007. (Incorporated                by                reference to Exhibit 2.1 to our Form 8-K dated April 18,                2007) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.35 | 2007                Special Stock Option Plan and Agreement, dated January 4, 2007, by                and                between us and Stephen R. Seiler, President and Chief Executive                Officer |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.36 | Employment                Agreement, dated January 4, 2007 by and between us and Stephen R.                Seiler,                President and Chief Executive                Officer |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 10.37 | Amendment                to 7.0% (Subject to Adjustment) Convertible Promissory Notes Due                April 28,                2007, dated April 24, 2007 by and between us and Oracle Partners                LP and                affiliates |
|--------|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 10.38 | Amendment                to Amended and Restated 7.5% Secured Convertible Promissory Notes                Due                April 27, 2007, dated April 26, 2007 by and between us and SCO Capital                Partners LLC, Beach Capital LLC and Lake End Capital                LLC |
|--------|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 10.39 | Amendment                To Investor Rights Agreements, dated April 30, 2007 by and between                us and                SCO Capital Partners LLC and Lake End Capital                LLC |
|--------|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification                of Chief Executive Officer of Access Pharmaceuticals, Inc. pursuant                to                Rule 13a-14(a)/15d-14(a) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                of Chief Financial Officer of Access Pharmaceuticals, Inc. pursuant                to                Rule 13a-14(a)/15d-14(a) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1* | Certification                of Chief Executive Officer of Access Pharmaceuticals, Inc. pursuant                to 18                U.S.C. Section 1350 |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2* | Certification                of Chief Financial Officer of Access Pharmaceuticals, Inc. pursuant                to 18                U.S.C. Section 1350 |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

| Date:  | May,                15 2007 | By:                                                         | /s/                Stephen R. Seiler   |
|--------|-----------------------------|-------------------------------------------------------------|----------------------------------------|
|   |                        | Stephen                R. Seiler                            |
|   |                        | President                and Chief Executive Officer        |
|   |                        | (Principal                Executive Officer)                |
|   |                        |                                                        |
| Date:  | May,                15 2007 | By:                                                         | /s/                Stephen B. Thompson |
|   |                        | Stephen                B. Thompson                          |
|   |                        | Vice                President and Chief Financial Officer   |
|   |                        | (Principal                Financial and Accounting Officer) |
|   |                        |                                                        |

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**Access      Pharmaceuticals, Inc. and Subsidiaries**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      | March                31, 2007                                   |      |                      | December                31,2006                                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|----------------------------------------------------------------------|-----------|---------------------------|----------------------------------------------------------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                      | (unaudited)                                                          |      |                      | (audited)                                                            |   |
|  Current                assetsCash                and cash equivalents   Short                term investments, at cost  Receivables                  Prepaid                expenses and other current assets                                                                                                                                                                                                                                                                                          |   |   $             | 359,0002,724,000356,000357,000                                       |      |   $             | 1,194,0003,195,000359,000283,000                                     |   |
|  Total                current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      | 3,796,000                                                       |      |                      | 5,031,000                                                       |   |
| Property                and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      | 207,000                                                              |      |                      | 212,000                                                              |   |
| Debt                issuance costs, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                      | -                                                                    |      |                      | 158,000                                                              |   |
| Patents,                net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                      | 836,000                                                              |      |                      | 878,000                                                              |   |
| Licenses,                net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      | 12,000                                                               |      |                      | 25,000                                                               |   |
| Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                      | 25,000                                                               |      |                      | 122,000                                                              |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                         | 4,876,000                                                            |      | $                         | 6,426,000                                                            |   |
| LIABILITIES                AND STOCKHOLDERS' DEFICIT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      |                                                                 |      |                      |                                                                 |   |
|  Current                liabilitiesAccounts                payable and accrued expensesAccrued                interest payableDeferred                revenuesCurrent                portion of long-term debt, net of discount $101,000 atMarch                31, 2007 and $2,062,000 at December 31, 2006                                                                                                                                                                                                                          |   | $     | 1,232,000899,000173,000 10,794,000                              |      | $     | 1,226,000581,000173,000 8,833,000                               |   |
|  Total                current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      | 13,098,000                                                      |      |                      | 10,813,000                                                      |   |
|  Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                      | 5,500,000                                                            |      |                      | 5,500,000                                                            |   |
| Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                      | 18,598,000                                                           |      |                      | 16,313,000                                                           |   |
| Commitments                and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      | -                                                                    |      |                      | -                                                                    |   |
|  Stockholders'                deficitPreferred                stock - $.01 par value; authorized 2,000,000 shares;none                issued or outstandingCommon                stock - $.01 par value; authorized 100,000,000 shares;  issued,                3,535,358 at March 31, 2007 and 3,535,108 atDecember                31, 2006Additional                paid-in capitalNotes                receivable from stockholdersTreasury                stock, at cost - 163 sharesAccumulated                deficit |   |                      |   -  35,00069,091,000(1,045,000(4,000(81,799,000 | )))  |                      |   -  35,00068,799,000(1,045,000(4,000(77,672,000 | ))))   |
|  Total                stockholders' deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                      | (13,722,000                                                     | )         |                      | (9,887,000                                                      | )      |
| Total                liabilities and stockholders' deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                         | 4,876,000                                                            |      | $                         | 6,426,000                                                            |   |

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**Access      Pharmaceuticals, Inc. and Subsidiaries**

|                                                                                                           |   |  Three                Months ended March 31, |        |
|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|-------------|
|                                                                                                           |   | 2007                                              |        | 2006 |   |
| Expenses                                                                                                  |   |                                              |        |   |   |
| Research                and development                                                                        |   | $                                                 | 413,000     |   | $ | 756,000 |   |
| General                and administrative                                                                      |   |                                              | 1,139,000   |   |   | 666,000 |   |
| Depreciation                and amortization                                                                   |   |                                              | 75,000      |   |   | 77,000 |   |
| Total                expenses                                                                                  |   |                                              | 1,627,000   |   |   | 1,499,000 |   |
|                                                                                                           |   |                                              |        |   |   |   |   |
| Loss                from operations                                                                            |   |                                              | (1,627,000  | ) |   | (1,499,000 | ) |
|                                                                                                           |   |                                              |        |   |   |   |   |
| Interest                and miscellaneous income                                                               |   |                                              | 35,000      |   |   | 92,000 |   |
| Interest                and other expense                                                                      |   |                                              | (2,535,000  | ) |   | (1,299,000 | ) |
| Unrealized                loss on fair value of warrants                                                       |   |                                              | -(2,500,000 | ) |   | (2,150,000(3,357,000 | )) |
|  Net                loss                                                                                  |   | $                                                 | (4,127,000  | ) | $ | (4,856,000 | ) |
|                                                                                                           |   |                                              |        |   |   |   |   |
| Basic                and diluted loss per common shareNet                loss allocable to common stockholders |   | $                                                 | (1.17       | ) | $ | (1.38 | ) |
|                                                                                                           |   |                                              |        |   |   |   |   |
| Weighted                average basic and dilutedcommon                shares outstanding                      |   |                                              | 3,535,197   |   |   | 3,528,831 |   |
|                                                                                                           |   |                                              |        |   |   |   |   |
|                                                                                                           |   |                                              |        |   |   |   |   |

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**Access      Pharmaceuticals, Inc. and Subsidiaries**

|                                                                                                  |   | Three                Months ended March 31, |       |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                                                                  |   | 2007                                        |       | 2006 |   |
| Cash                flows from operating activities:                                                  |   |                                        |       |   |   |   |   |
| Net                loss                                                                               |   | $                                           | (4,127,000 | ) | $ | (4,856,000 | ) |
| Adjustments                to reconcile net loss to cash used in                operating activities: |   |                                        |       |   |   |   |   |
| Depreciation                and amortization                                                     |   |                                        | 75,000     |   |   | 77,000 |   |
| Stock                option expense                                                                   |   |                                        | 292,000    |   |   | 95,000 |   |
| Stock                expense                                                                          |   |                                        | -          |   |   | 23,000 |   |
| Amortization                of debt costs and discounts                                               |   |                                        | 2,215,000  |   |   | 986,000 |   |
| Unrealized                loss on fair value of warrants                                              |   |                                        | -          |   |   | 2,150,000 |   |
| Change                in operating assets and liabilities:                                            |   |                                        |       |   |   | - |   |
| Receivables                                                                                           |   |                                        | 3,000      |   |   | - |   |
|    Prepaid                expenses and other current assets                            |   |                                        | (74,000    | ) |   | 58,000 |   |
| Other                assets                                                                           |   |                                        | 1,000      |   |   | 35,000 |   |
| Accounts                payable and accrued expenses                                                  |   |                                        | 6,000      |   |   | (150,000 | ) |
| Accrued                interest payable                                                               |   |                                        | 318,000    |   |   | 235,000 |   |
| Net                cash used in operating activities                                                  |   |                                        | (1,291,000 | ) |   | (1,347,000 | ) |
|                                                                                                  |   |                                        |       |   |   |   |   |
| Cash                flows from investing activities:                                                  |   |                                        |       |   |   |   |   |
| Capital                expenditures                                                                   |   |                                        | (15,000    | ) |   | - |   |
| Redemptions                of short term investments and certificates                of deposit       |   |                                        | 471,000    |   |   | (34,000 | ) |
| Net                cash provided by (used in) investing activities                                    |   |                                        | 456,000    |   |   | (34,000 | ) |
|                                                                                                  |   |                                        |       |   |   |   |   |
| Cash                flows from financing activities:                                                  |   |                                        |       |   |   |   |   |
| Payments                of notes payable                                                              |   |                                        | -          |   |   | (37,000 | ) |
| Proceeds                from secured convertible notes payable                                        |   |                                        | -          |   |   | 4,532,000 |   |
| Net                cash provided by financing activities                                              |   |                                        | -          |   |   | 4,495,000 |   |
|                                                                                                  |   |                                        |       |   |   |   |   |
| Net                (decrease) increase in cash and cash equivalents                                   |   |                                        | (835,000   | ) |   | 3,114,000 |   |
| Cash                and cash equivalents at beginning of period                                       |   |                                        | 1,194,000  |   |   | 349,000 |   |
| Cash                and cash equivalents at end of period                                             |   | $                                           | 359,000    |   | $ | 3,463,000 |   |
|                                                                                                  |   |                                        |       |   |   |   |   |
| *Supplemental                cash flow information:*                                                  |   |                                        |       |   |   |   |   |
| *Cash                paid for interest*                                                               |   | $                                           | 2,000      |   | $ | 2,000 |   |
|                                                                                                  |   |                                        |       |   |   |   |   |
|                                                                                                  |   |                                        |       |   |   |   |   |
|                                                                                                  |   |                                        |       |   |   |   |   |

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**Access      Pharmaceuticals, Inc. and Subsidiaries**

**Interim      Financial Statements**

**Intangible      Assets**

|                                                                   |   | March                31, 2007 |          | December                31, 2006 |           |
|------------------------------------------------------------------------|--------|-------------------------------|---------------|----------------------------------|----------------|
|                                                                   |   | Grosscarryingvalue            |          |  Accumulatedamortization    |           | Grosscarryingvalue |   |  Accumulatedamortization |   |
| Amortizable                intangible assets PatentsLicensesTotal |   | $  $                | 1,6805002,180 |                             | $  $ | 8444881,332 |   | $ $ | 1,6805002,180 |   | $  $ | 8024751,277 |   |
|                                                                   |   |                          |          |                             |           |   |   |   |   |   |   |   |   |

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|  2007       |   | $      | 138    |   |
|------------------|--------|--------|--------|--------|
|  2008       |   |   | 168    |   |
|  2009       |   |   | 168    |   |
|  2010       |   |   | 168    |   |
|  2011       |   |   | 168    |   |
|  Thereafter |   |   | 38     |   |
|             |   |   |   |   |
|  Total      |   | $      | 848    |   |

**Liquidity**

**(4)      **
**Stock      Based Compensation**

|   |                                   |         |                    |   |   |        |   |
|--------|----------------------------------------|--------------|-------------------------|--------|--------|-------------|--------|
|   |                                   |    | 3/31/07                 |   |   | 3/31/06     |   |
|   | Expected                life           |    | 4.3                yrs. |   |   | 2 yrs. |   |
|   | Risk                free interest rate |    | 4.66                    | %      |   | 4.72        | %      |
|   | Expected                volatility(a)  |    | 137                     | %      |   | 113         | %      |
|   | Expected                dividend yield |    | 0.0                     | %      |   | 0.0         | %      |
|   |                                   |         |                    |   |   |        |   |

----

| (a) | Reflects                movements in our stock price over the most recent historical period                equivalent to the expected life. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

**(5)      **
**Income      Taxes**

*,*

**(7)      Debt**

|                                                    |   | March                31,2007 |       | December                31,2006 |   |
|---------------------------------------------------------|--------|------------------------------|------------|---------------------------------|--------|
| Convertible                note - Oracle and affiliates |   | $                            | 4,015,000  |                            | $      | 4,015,000 |   |
| Convertible                note                         |   |                         | 5,500,000  |                            |   | 5,500,000 |   |
| Convertible                note                         |   |                         | 880,000    |                            |   | 880,000 |   |
|                                                    |   |                         | 10,395,000 |                            |   | 10,395,000 |   |
| Discount                                                |   |                         | (101,000   | )                               |   | (456,000 | ) |
|                                                    |   |                         | 10,294,000 |                            |   | 9,939,000 |   |
|                                                    |   |                         |       |                            |   |   |   |
| Convertible                note - SCO and affiliates    |   |                         | 6,000,000  |                            |   | 6,000,000 |   |
| Discount                                                |   |                         | -          |                            |   | (1,606,000 | ) |
|                                                    |   |                         | 6,000,000  |                            |   | 4,394,000 |   |
|                                                    |   |                         |       |                            |   |   |   |
| Total                                                   |   | $                            | 16,294,000 |                            | $      | 14,333,000 |   |
|                                                    |   |                         |       |                            |   |   |   |
| Short                term                               |   | $                            | 10,794,000 |                            | $      | 8,833,000 |   |
| Long                term                                |   |                         | 5,500,000  |                            |   | 5,500,000 |   |
| Total                                                   |   | $                            | 16,294,000 |                            | $      | 14,333,000 |   |
|                                                    |   |                         |       |                            |   |   |   |

----

**(8)      Subsequent Events**

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