**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        DC 20549**

**FORM        10-QSB**

**0-9314**

**ACCESS        PHARMACEUTICALS, INC.**

|  **Delaware**                                       |  **83-0221517   **                                            |
|----------------------------------------------------------|-----------------------------------------------------------------------------------|
|  (State                  or Other Jurisdiction      |  (I.R.S. Employer                  Identification                  No.) |
|  of                  Incorporation or Organization) |                                                                              |

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

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**ACCESS        PHARMACEUTICALS, INC.**

**INDEX**

|                                             |                           |   |                                                                                         |  Page No. |   |
|--------------------------------------------------|--------------------------------|--------|----------------------------------------------------------------------------------------------|----------------|--------|
|   PART I - FINANCIAL INFORMATION       |                           |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  Item                  1. |   | Condensed                  Consolidated Financial Statements:                                |           |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |                           |   | Condensed                  Consolidated Balance Sheets at                                    |           |   |
|                                             |                           |   | June                  30, 2007 (unaudited) and December 31, 2006 (audited)                   | 24             |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |                           |   | Condensed Consolidated Statements of Operations                (unaudited) for the           |           |   |
|                                             |                           |   | three                  and                  six months ended June 30, 2007 and June 30, 2006 | 25             |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |                           |   | Condensed Consolidated Statements of Cash Flows                (unaudited) for the           |           |   |
|                                             |                           |   | six months ended June 30, 2007 and June 30, 2006                                        |  26       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |                           |   | Notes to Unaudited Condensed Consolidated Financial                Statements           |  27       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  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                                                                            |  21       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  Item                  2. |   | Unregistered Sales of Equity Securities and Use of                Proceeds              |  21       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  Item                  3. |   | Defaults Upon Senior Securities                                                         |  21       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  Item                  4. |   | Submission of Matters to a Vote of Security Holders                                     |  21       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  Item                  5. |   | Other Information                                                                       |  22       |   |
|                                             |                           |   |                                                                                         |           |   |
|                                             |  Item                  6. |   | Exhibits                                                                                |  22       |   |
|                                             |                           |   |                                                                                         |           |   |
|  SIGNATURES                                 |  23                       |   |

----

**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, our ability to close the Somanta merger        and,        if it closes, our ability to integrate Somanta’s business with ours, 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        PRODUCT PORTFOLIO**

| **Compound**                                                                 |   | **Originator**                     |   |  **Technology** |   | **Indication** |   | **FDA                  Filing**          |   | **Clinical****Stage                  (1)** |
|------------------------------------------------------------------------------|--------|------------------------------------|--------|----------------------|--------|----------------|--------|------------------------------------------|--------|--------------------------------------------|
|                                                                         |   |                               |   |                 |   |           |   |                                     |   |                                       |
| 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**

----

----

**RECENT        EVENTS**

**LIQUIDITY        AND CAPITAL RESOURCES**

----

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

----

----

**SECOND        QUARTER 2007 COMPARED TO SECOND QUARTER 2006**

| ·   | higher                salary and related cost due to the hiring of additional scientific                staff                ($41,000); and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | other                net increases ($16,000). |
|--------------------|-----------------------------------------------|
| ·   | higher                salary related expenses due to stock option expenses                ($305,000); |
|--------------------|-------------------------------------------------------------------------------------------------------|
| ·   | higher                investor relations expenses ($87,000) due to our increased investor                relations efforts; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|
| ·   | higher                legal expenses ($60,000); and |
|--------------------|-----------------------------------------------------|
| ·   | other                net increases ($48,000). |
|--------------------|-----------------------------------------------|

----

**SIX        MONTHS ENDED JUNE 30, 2007 COMPARED TO SIX MONTHS ENDED JUNE 30,        2006**

| ·   | lower                costs for product manufacturing for ProLindac ($412,000). Product                manufacturing was completed early in 2006 which we believe is adequate                to                supply drug product for our current ovarian cancer                trial; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | lower                costs of clinical trials for ProLindac                ($118,000). We incurred start-up costs for the clinical trial in                early                2006; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | other                net decreases ($14,000). |
|--------------------|-----------------------------------------------|
| ·   | higher                salary related expenses due mainly to stock option expenses                ($532,000); |
|--------------------|--------------------------------------------------------------------------------------------------------------|
| ·   | higher                investor relations expenses ($220,000) due to our increased investor                relations efforts; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|
| ·   | higher                franchise taxes ($50,000); |
|--------------------|--------------------------------------------------|
| ·   | higher                patent expenses ($45,000); |
|--------------------|--------------------------------------------------|
| ·   | higher                legal expenses ($40,000); and |
|--------------------|-----------------------------------------------------|
| ·   | other                net increases ($36,000). |
|--------------------|-----------------------------------------------|

**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. **

----

|   | • |   | 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.**

----

**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.**

**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.**

| • | Antigenics                  and Regulon are developing liposomal platinum                  formulations; |
|---------|----------------------------------------------------------------------------------------------------------|

| • | Spectrum                  Pharmaceuticals and GPC Biotech are developing oral platinum                  formulations; |
|---------|-----------------------------------------------------------------------------------------------------------------------|

| • | Poniard                  Pharmaceuticals is developing both iv and oral platinum                  formulations; |
|---------|-----------------------------------------------------------------------------------------------------------------|

| • | Nanocarrier                  and Debio are developing micellar nanoparticle platinum formulations;                  and |
|---------|-------------------------------------------------------------------------------------------------------------------------|

| • | American                  Pharmaceutical Partners, Cell Therapeutics, Daiichi, and Enzon                  are                  developing alternate drugs in combination with polymers and other                  drug                  delivery systems. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**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 |
|--------------------|--------------------------------------------------------------------|

**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.**

----

**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.**

----

**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**

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

**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) |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.40 | Amendment                  to 7.0% (Subject to Adjustment) Convertible Promissory Notes Due                  July 27,                  2007, dated July 25, 2007 by and between us and Oracle Partners                  LP and                  affiliates |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.41 | Amendment                  to Amended and Restated 7.5% Secured Convertible Promissory Notes                  Due July                  26, 2007, dated July 25, 2007 by and between us and SCO Capital                  Partners                  LLC, Beach Capital LLC and Lake End Capital                  LLC |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.42 | Note                  Purchase Agreement dated April 26, 2007 between us and Somanta                  Pharmaceuticals, Inc. |
|-------|-----------------------------------------------------------------------------------------------------------------------------|

| 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 |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

| Date:  | August                  14 2007  | By:                                                          | /s/                  Stephen R. Seiler   |
|--------|----------------------------------|--------------------------------------------------------------|------------------------------------------|
|   |                             | Stephen                  R. Seiler                           |
|   |                             | President                  and Chief Executive Officer       |
|   |                             | (Principal                  Executive Officer)               |
|   |                             |                                                         |
| Date:  | August                  14, 2007 | By:                                                          | /s/                  Stephen B. Thompson |
|   |                             | Stephen                  B. Thompson                         |
|   |                             | Vice                  President and Chief Financial Officer  |
|   |                             | (Principal                  Financial and Accounting Officer |
|   |                             |                                                         |

----

**Access        Pharmaceuticals, Inc. and Subsidiaries**

| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | June                  30, 2007(unaudied) |                                                                 |  December                  31, 2006(audited) |                      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|----------------------------------------------------------------------|---------------------------------------------------|---------------------------|
| Current                  assetsCash                  and cash equivalents Short                  term investments, at costReceivables                  Prepaid                  expenses and other current asset                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                         | 170,0001,730,000208,000517,000                                       |                                              | $          | 1,194,0003,195,000359,000283,000 |   |
| Total                  current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                     | 2,625,000                                                            |                                              |                      | 5,031,000 |   |
|  Property                  and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                     | 190,000                                                              |                                              |                      | 212,000 |   |
|  Debt                  issuance costs, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                     | -                                                                    |                                              |                      | 158,000 |   |
|  Patents,                  net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | 794,000                                                              |                                              |                      | 878,000 |   |
|  Licenses,                  net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | -                                                                    |                                              |                      | 25,000 |   |
|  Other                  assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | 25,000                                                               |                                              |                      | 122,000 |   |
|  Total                  assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                        | 3,634,000                                                            |                                              | $                         | 6,426,000 |   |
|  LIABILITIES                  AND STOCKHOLDERS' DEFICIT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |                                                                 |                                              |                      |   |   |
| Current                  liabilitiesAccounts                  payable and accrued expensesAccrued                  interest payableDeferred                  revenuesCurrent                  portion of long-term debt, net of discount $0 at     June                  30, 2007 and $2,062,000 at December 31, 2006                                                                                                                                                                                                                                                                                                         |   | $                    | 1,350,0001,217,000173,000 10,895,000                            |                                              | $     | 1,226,000581,000173,000 8,833,000 |   |
|  Total                  current                  liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     | 13,635,000                                                           |                                              |                      | 10,813,000 |   |
|                      Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                     | 5,500,000                                                            |                                              |                      | 5,500,00 |   |
|      Total                  liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                     | 19,135,000                                                           |                                              |                      | 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,                  3,541,394 at June 30, 2007 and 3,535,108 at    December                  31,                  2006Additional                  paid-in capitalNotes                  receivable from stockholdersTreasury                  stock, at cost - 163 sharesAccumulated                  deficit   |   |                                     |  -  35,00069,421,000(1,045,000(4,000(83,908,000  | )))                                          |                      | -  35,00068,799,000(1,045,000(4,000(77,672,000  | )))  |
|  Total                  stockholders' deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                     | (15,501,000                                                     | )                                                 |                      | (9,887,000  | ) |
|      Total                  liabilities and stockholders' deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                        | 3,634,000                                                            |                                              | $                         | 6,426,000 |   |

----

**Access        Pharmaceuticals, Inc. and Subsidiaries**

|                                                                                                              |   |   | Three                  months ended |         | Six                  months ended |                      |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------------|-----------------------------------|---------------------------|
|                                                                                                              |   |   | June                  30,           |         |                              | June                  30, |   |
|                                                                                                              |   |   | 2007                                |         |                              | 2006                      |   |   | 2007 |   |   | 2006 |   |
|                                                                                                              |   |   |                                |         |                              |                      |   |   |   |   |   |   |   |
|                  Expenses                                                                               |   |   |                                |         |                              |                      |   |   |   |   |   |   |   |
|   Research                  and development                                                             |   | $      | 523,000                             |         | $                                 | 634,000                   |   | $ | 936,000 |   | $ | 1,390,000 |   |
| General                  and administrative                                                                       |   |   | 1,113,000                           |         |                              | 663,000                   |   |   | 2,252,000 |   |   | 1,329,000 |   |
| Depreciation                  and amortization                                                                    |   |   | 74,000                              |         |                              | 77,000                    |   |   | 149,000 |   |   | 154,000 |   |
| Total                  expenses                                                                                   |   |   | 1,710,000                           |         |                              | 1,374,000                 |   |   | 3,337,000 |   |   | 2,873,000 |   |
|                                                                                                              |   |   |                                |         |                              |                      |   |   |   |   |   |   |   |
| Loss                  from operations                                                                             |   |   | (1,710,000                          | )            |                              | (1,374,000                | ) |   | (3,337,000 | ) |   | (2,873,000 | ) |
|                                                                                                              |   |   |                                |         |                              |                      |   |   |   |   |   |   |   |
| Interest                  and miscellaneous income                                                                |   |   | 25,000                              |         |                              | 100,000                   |   |   | 60,000 |   |   | 192,000 |   |
| Interest                  and other expense                                                                       |   |   | (424,000                            | )            |                              | (1,969,000                | ) |   | (2,959,000 | ) |   | (3,268,000 | ) |
| Unrealized                  gain (loss) on fair value ofwarrants                  and conversion feature          |   |   |  -                             |    |                              | (88,000                   | ) |   | - |    |   | (2,238,000 | ) |
|                                                                                                              |   |   | (399,000                       | )       |                              | (1,957,000           | ) |   | (2,899,000  | ) |  | (5,314,000  | ) |
|  Net                  loss                                                                                   |   | $      | (2,109,000                          | )            | $                                 | (3,331,000                | ) | $ | (6,236,000 | ) | $ | (8,187,000 | ) |
|                                                                                                              |   |   |                                |         |                              |                      |   |   |   |   |   |   |   |
| Basic                  and diluted loss per common shareNet                  loss allocable to commonshareholders |   | $      | (0.60                               | )            | $                                 | (0.94                     | ) | $ | (1.76 | ) | $ | (2.32 | ) |
|                                                                                                              |   |   |                                |         |                              |                      |   |   |   |   |   |   |   |
| Weighted                  average basic and dilutedcommon                  shares outstanding                     |   |   | 3,538,409                           |         |                              | 3,530,931                 |   |   | 3,536,812 |   |   | 3,529,887 |   |

----

**Access        Pharmaceuticals, Inc. and Subsidiaries**

|                                                                                                      |   | Six                  months ended June 30, |       |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                                                      |   |                                       | 2007       |   |   | 2006 |   |
| Cash                  flows from operating activities:                                                    |   |                                       |       |   |   |   |   |
| Net                  loss                                                                                 |   | $                                          | (6,236,000 | ) | $ | (8,187,000 | ) |
| Adjustments                  to reconcile net loss to cash used in                  operating activities: |   |                                       |       |   |   |   |   |
| Depreciation                  and amortization                                                       |   |                                       | 149,000    |   |   | 154,000 |   |

| Stock                  option expense                                                                    |   |   | 603,000    |   |   | 123,000    |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|------------|--------|
| Stock                  compensation expense                                                              |   |   | -          |   |   | 46,000     |   |
| Amortization                  of debt costs and discounts                                                |   |   | 2,316,000  |   |   | 2,588,000  |   |
| Unrealized                  loss on fair value of warrants andconversion                  feature        |   |   | -          |   |   | 2,238,000  |   |
| Change                  in operating assets and liabilities:                                             |   |   |       |   |   |       |   |
| Receivables                                                                                              |   |   | 151,000    |   |   | -          |   |
|    Prepaid                  expenses and other current assets                             |   |   | (234,000   | )      |   | 116,000    |   |
| Other                  assets                                                                            |   |   | 1,000      |   |   | 92,000     |   |
| Accounts                  payable and accrued expenses                                                   |   |   | 124,000    |   |   | (1,008,000 | )      |
| Accrued                  interest payable                                                                |   |   | 636,000    |   |   | 520,000    |   |
| Net                  cash used in operating activities                                                   |   |   | (2,490,000 | )      |   | (3,318,000 | )      |
|                                                                                                     |   |   |       |   |   |       |   |
| Cash                  flows from investing activities:                                                   |   |   |       |   |   |       |   |
| Capital                  expenditures                                                                    |   |   | (18,000    | )      |   | (3,000     | )      |
| Redemptions                  of short term investments and certificates                  of deposit, net |   |   | 1,465,000  |   |   | (63,000    | )      |
| Net                  cash provided by (used in) investing activities                                     |   |   | 1,447,000  |   |   | (66,000    | )      |
|                                                                                                     |   |   |       |   |   |       |   |
| Cash                  flows from financing activities:                                                   |   |   |       |   |   |       |   |
| Payments                  of notes payable                                                               |   |   | -          |   |   | (68,000    | )      |
| Proceeds                  from secured convertible notes payable                                         |   |   | -          |   |   | 4,532,000  |   |
| Exercise                  of stock options                                                               |   |   | 19,000     |   |   | -          |   |
| Net                  cash provided by financing activities                                               |   |   | 19,000     |   |   | 4,464,000  |   |
|                                                                                                     |   |   |       |   |   |       |   |
| Net                  (decrease) increase in cash and cash equivalents                                    |   |   | (1,024,000 | )      |   | 1,080,000  |   |
| Cash                  and cash equivalents at beginning of period                                        |   |   | 1,194,000  |   |   | 349,000    |   |
| Cash                  and cash equivalents at end of period                                              |   | $      | 170,000    |   | $      | 1,429,000  |   |
|                                                                                                     |   |   |       |   |   |       |   |
|                                                                                                     |   |   |       |   |   |       |   |
| *Supplemental                  cash flow information:*                                                   |   |   |       |   |   |       |   |
| *Cash                  paid for interest*                                                                |   | *$*    | *8,000*    |   | *$*    | *4,000*    |   |
|                                                                                                     |   |   |       |   |   |       |   |

----

**Access        Pharmaceuticals, Inc. and Subsidiaries**

**(1)**Interim        Financial Statements****

**(2)**
**Intangible        Assets**

|                                                                |   | June                  30, 2007 |           | December                  31, 2006 |          |
|---------------------------------------------------------------------|--------|--------------------------------|----------------|------------------------------------|---------------|
|                                                                |   | Grosscarryingvalue             |           |  Accumulatedamortization      |          | Grosscarryingvalue |   |  Accumulatedamortization |   |
| Amortizable                  intangible assets PatentsLicenses |   |  $              | 1,680500  |                               | $   | 886500  |   | $   | 1,680500  |   | $   | 802475  |   |
|      Total                                 |   |  $                        | 2,180     |                               | $             | 1,386  |   | $ | 2,180  |   | $ | 1,277  |   |

----

|  2007       |   |  $  84 |   |
|------------------|--------|-----------------------|--------|
|  2008       |   |   168       |   |
|  2009  |   |  168             |   |
|  2010       |   |  168             |   |
|  2011  |   |  168             |   |
|  Thereafter |   |   38        |   |
|             |   |                  |   |
|  Total      |   | $                     | 794    |   |

**(3)**
**Liquidity**

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

----

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

*,*

**(6)        Debt**

|                                                      |   | June                  30, 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                                                  |   |                           | -          |                               |   | (456,000 | ) |
|                                                      |   |                           | 10,395,000 |                               |   | 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                                                     |   | $                              | 16,395,000 |                               | $      | 14,333,000 |   |
|                                                      |   |                           |       |                               |   |   |   |
| Short                  term                               |   | $                              | 10,895,000 |                               | $      | 8,833,000 |   |
| Long                  term                                |   |                           | 5,500,000  |                               |   | 5,500,000 |   |
| Total                                                     |   | $                              | 16,395,000 |                               | $      | 14,333,000 |   |
|                                                      |   |                           |       |                               |   |   |   |

**(7)        Subsequent Events**

----