----

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| T | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------------|

| For the quarterly period ended | June 30, 2009 |
|--------------------------------|---------------|

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

| ORTHOLOGIC CORP.                                       |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Delaware                                                        | 86-0585310                        |
|-----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization)  | (IRS Employer Identification No.) |
|                                                            |                              |
| 1275 W. Washington Street,  Suite 101, Tempe, Arizona | 85281                             |
| (Address of principal executive offices)                        | (Zip Code)                        |

| (602) 286-5520 |
|----------------|

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

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ORTHO

|                           |                      |                                                                                         | Page No. |
|--------------------------------|---------------------------|----------------------------------------------------------------------------------------------|----------|
| Part I                         | Financial Information     |                                                                                         |     |
|                           |                      |                                                                                         |     |
|                           | Item 1.                   | Financial Statements (Unaudited)                                                             |     |   |
|                           |                      |                                                                                         |     |   |
|                           |                      | Condensed Balance Sheets as of June 30, 2009 and December 31, 2008                           | 3        |   |
|                           |                      |                                                                                         |     |   |
|                           |                      | Condensed Statements of Operations for the three and six months ended June 30, 2009 and 2008 | 4        |   |
|                           |                      |                                                                                         |     |   |
|                           |                      | Condensed Statements of Cash Flows for the six months ended June 30, 2009 and 2008           | 5        |   |
|                           |                      |                                                                                         |     |   |
|                           |                      | Notes to Condensed Financial Statements                                                      | 6        |   |
|                           |                      |                                                                                         |     |   |
|                           | Item 2.                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations  | 11       |   |
|                           |                      |                                                                                         |     |   |
|                           | Item 4.                   | Controls and Procedures                                                                      | 14       |   |
|                           |                      |                                                                                         |     |   |
| Part II    | Other Information         |                                                                                         |     |
|                           |                      |                                                                                         |     |
|                           | Item 1A.   | Risk Factors                                                                                 | 14       |   |
|                           |                      |                                                                                         |     |   |
|                           | Item 4.                   | Submission of Matters to A Vote of Security Holders                                          | 15       |   |
|                           |                      |                                                                                         |     |   |
|                           | Item 6.                   | Exhibits                                                                                     | 15       |   |

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Index

ORTH

|                                                                                                   |   | June 30, |     |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|-------------------|--------|
|                                                                                                   |   | 2009          |     |   | 2008              |   |
|                                                                                                   |   | (Unaudited)   |     |   |              |   |
| ASSETS                                                                                                 |   |          |     |   |              |   |
| Current assets                                                                                         |   |          |     |   |              |   |
| Cash and cash equivalents                                                                              |   | $             | 14,731   |   |              | $      | 23,088 |   |
| Short-term investments                                                                                 |   |          | 26,347   |   |              |   | 22,675 |   |
| Prepaids and other current assets                                                                      |   |          | 835      |   |              |   | 1,094 |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| Total current assets                                                                                   |   |          | 41,913   |   |              |   | 46,857 |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| Furniture and equipment, net                                                                           |   |          | 376      |   |              |   | 436 |   |
| Long-term investments                                                                                  |   |          | -        |   |              |   | 2,221 |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| Total assets                                                                                           |   | $             | 42,289   |   |              | $      | 49,514 |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                   |   |          |     |   |              |   |   |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| Current liabilities                                                                                    |   |          |     |   |              |   |   |   |
| Accounts payable                                                                                       |   | $             | 995      |   |              | $      | 1,063 |   |
| Accrued compensation                                                                                   |   |          | 442      |   |              |   | 648 |   |
| Other accrued liabilities                                                                              |   |          | 416      |   |              |   | 281 |   |
| Total current liabilities                                                                              |   |          | 1,853    |   |              |   | 1,992 |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| Stockholders' Equity                                                                                   |   |          |     |   |              |   |   |   |
| Common Stock  $.0005 par value;                                                              |   |          |     |   |              |   |   |   |
| 100,000,000 shares authorized; 40,775,411 in 2009 and 40,775,411 in 2008 shares issued and outstanding |   |          | 20       |   |              |   | 20 |   |
| Additional paid-in capital                                                                             |   |          | 188,492  |   |              |   | 188,314 |   |
| Accumulated deficit                                                                                    |   |          | (148,076 | )      |              |   | (140,812 | ) |
| Total stockholders' equity                                                                             |   |          | 40,436   |   |              |   | 47,522 |   |
|                                                                                                   |   |          |     |   |              |   |   |   |
| Total liabilities and stockholders' equity                                                             |   | $             | 42,289   |   |              | $      | 49,514 |   |

----

Index

ORTHOL

|                                                                                         |   | Three months ended June 30, |   |   | Six months ended June 30, |   |   | As a Development Stage Company |   |
|----------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|--------|--------------------------------|--------|
|                                                                                         |   |                             |   |   |                           |   |   |                           |   |   |   |   |   | August 5, 2004 - |   |
|                                                                                         |   | 2009                             |   |   | 2008                           |   |   | 2009                           |   |   | 2008 |   |   | June 30, 2009 |   |
|                                                                                         |   |                             |   |   |                           |   |   |                           |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                                                           |   |                             |   |   |                           |   |   |                           |   |   |   |   |   |   |   |
| General and administrative                                                                   |   | $                                | 761    |   |                           | $      | 742    |                           |   | $ | 1,568 |   |   | $ | 1,563 |   |   | $ | 21,643 |   |
| Research and development                                                                     |   |                             | 2,579  |   |                           |   | 2,586  |                           |   |   | 6,187 |   |   |   | 5,028 |   |   |   | 79,706 |   |
| Purchased in-process research and development                                                |   |                             | -      |   |                           |   | -      |                           |   |   | - |   |   |   | - |   |   |   | 34,311 |   |
| Other                                                                                        |   |                             | -      |   |                           |   | -      |                           |   |   | - |   |   |   | - |   |   |   | (375 | ) |
| Total operating expenses                                                                     |   |                             | 3,340  |   |                           |   | 3,328  |                           |   |   | 7,755 |   |   |   | 6,591 |   |   |   | 135,285 |   |
|                                                                                         |   |                             |   |   |                           |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and other income, net                                                               |   |                             | (224   | )      |                           |   | (565   | )                              |   |   | (491 | ) |   |   | (1,171 | ) |   |   | (13,125 | ) |
| Loss from continuing operations                                                              |   |                             | 3,116  |   |                           |   | 2,763  |                           |   |   | 7,264 |   |   |   | 5,420 |   |   |   | 122,160 |   |
| Income tax benefit                                                                           |   |                             | -      |   |                           |   | -      |                           |   |   | - |   |   |   | - |   |   |   | (7 | ) |
| Loss from continuing operations                                                              |   |                             | 3,116  |   |                           |   | 2,763  |                           |   |   | 7,264 |   |   |   | 5,420 |   |   |   | 122,153 |   |
| Discontinued operations - net gain on sale of the bone device business, net of taxes of $267 |   |                             | -      |   |                           |   | -      |                           |   |   | - |   |   |   | - |   |   |   | (2,202 | ) |
| NET LOSS                                                                                     |   | $                                | 3,116  |   |                           | $      | 2,763  |                           |   | $ | 7,264 |   |   | $ | 5,420 |   |   | $ | 119,951 |   |
| Per Share Information:                                                                       |   |                             |   |   |                           |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss, basic and diluted                                                                  |   | $                                | 0.08   |   |                           | $      | 0.07   |                           |   | $ | 0.18 |   |   | $ | 0.13 |   |   |   |   |   |
| Basic and diluted shares outstanding                                                         |   |                             | 40,775 |   |                           |   | 41,186 |                           |   |   | 40,775 |   |   |   | 41,415 |   |   |   |   |   |

----

Index

ORTH

|                                                     |   | Six months ended |    |   | As a Development Stage Company |   |
|----------------------------------------------------------|--------|------------------|---------|--------|--------------------------------|--------|
|                                                     |   | June 30,    |    |   | August 5th 2004 -         |   |
|                                                     |   | 2009             |    |   | 2008                           |   |   | June 30, 2009 |   |
| OPERATING ACTIVITIES                                     |   |             |    |   |                           |   |   |   |   |
| Net loss                                                 |   | $                | (7,264  | )      |                           | $      | (5,420 | ) |   | $ | (119,951 | ) |
| Non cash items:                                          |   |             |    |   |                           |   |   |   |   |   |   |   |
| Deferred tax expense                                     |   |             | -       |   |                           |   | - |   |   |   | 770 |   |
| Depreciation and amortization                            |   |             | 63      |   |                           |   | 69 |   |   |   | 3,628 |   |
| Non-cash stock compensation                              |   |             | 178     |   |                           |   | 170 |   |   |   | 4,239 |   |
| Gain on sale of bone device business                     |   |             | -       |   |                           |   | - |   |   |   | (2,298 | ) |
| In-process research and development                      |   |             | -       |   |                           |   | - |   |   |   | 34,311 |   |
| Change in other operating items:                         |   |             |    |   |                           |   |   |   |   |   |   |   |
| Prepaids and other current assets                        |   |             | 259     |   |                           |   | (235 | ) |   |   | 873 |   |
| Accounts payable                                         |   |             | (68     | )      |                           |   | 12 |   |   |   | 24 |   |
| Accrued liabilities                                      |   |             | (71     | )      |                           |   | (332 | ) |   |   | (2,156 | ) |
| Cash flows used in operating activities                  |   |             | (6,903  | )      |                           |   | (5,736 | ) |   |   | (80,560 | ) |
| INVESTING ACTIVITIES                                     |   |             |    |   |                           |   |   |   |   |   |   |   |
| Expenditures for furniture and equipment, net            |   |             | (3      | )      |                           |   | (69 | ) |   |   | (946 | ) |
| Proceeds from sale of assets                             |   |             | -       |   |                           |   | - |   |   |   | 7,000 |   |
| Cash paid for assets of AzERx/CBI                        |   |             | -       |   |                           |   | - |   |   |   | (4,058 | ) |
| Cash paid for patent assignment rights                   |   |             | -       |   |                           |   | - |   |   |   | (650 | ) |
| Purchases of investments                                 |   |             | (14,774 | )      |                           |   | (19,842 | ) |   |   | (241,820 | ) |
| Maturities of investments                                |   |             | 13,323  |   |                           |   | 12,908 |   |   |   | 273,411 |   |
| Cash flows (used in) provided by investing activities    |   |             | (1,454  | )      |                           |   | (7,003 | ) |   |   | 32,937 |   |
| FINANCING ACTIVITIES                                     |   |             |    |   |                           |   |   |   |   |   |   |   |
| Net proceeds from stock option exercises                 |   |             | -       |   |                           |   | - |   |   |   | 4,612 |   |
| Net proceeds from sale of stock                          |   |             | -       |   |                           |   | - |   |   |   | 3,376 |   |
| Common stock purchases                                   |   |             | -       |   |                           |   | (856 | ) |   |   | (1,041 | ) |
| Cash flows (used in) provided by financing activities    |   |             | -       |   |                           |   | (856 | ) |   |   | 6,947 |   |
|                                                     |   |             |    |   |                           |   |   |   |   |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                |   |             | (8,357  | )      |                           |   | (13,595 | ) |   |   | (40,676 | ) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD           |   |             | 23,088  |   |                           |   | 20,943 |   |   |   | 55,407 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                 |   | $                | 14,731  |   |                           | $      | 7,348 |   |   | $ | 14,731 |   |
|                                                     |   |             |    |   |                           |   |   |   |   |   |   |   |
| Supplemental Disclosure of Non-Cash Investing Activities |   |             |    |   |                           |   |   |   |   | AzERx and CBI |   |
| AzERx/CBI Acquisitions                                   |   |             |    |   |                           |   |   |   |   |   |   |   |
| Current assets acquired                                  |   |             |    |   |                           |   |   |   |   | $ | 29 |   |
| Patents acquired                                         |   |             |    |   |                           |   |   |   |   |   | 2,142 |   |
| Liabilities acquired, and accrued acquisition costs      |   |             |    |   |                           |   |   |   |   |   | (457 | ) |
| Original investment reversal                             |   |             |    |   |                           |   |   |   |   |   | (750 | ) |
| In-process research and development acquired             |   |             |    |   |                           |   |   |   |   |   | 34,311 |   |
| Common stock issued for acquisition                      |   |             |    |   |                           |   |   |   |   |   | (31,217 | ) |
| Cash paid for acquisition                                |   |             |    |   |                           |   |   |   |   | $ | 4,058 |   |

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Index

ORTH

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Index

----

Index

| June 30, 2009                              |   |                |   |   | Gross unrealized |   |   | Gross unrealized |   |
|--------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Short-term investments                     |   | Amortized cost |   |   | Gain                  |   |   | Loss                  |   |   | Fair value |   |
|                                       |   |                |   |   |                  |   |   |                  |   |   |   |   |
| US Government Securities                   |   | $                   | 13,005 |   |                  | $      | 239    |                  |   | $ | (1 | ) |   | $ | 13,243 |   |
| Government-Sponsored Enterprise Securities |   |                | 2,118  |   |                  |   | 1      |                  |   |   | (5 | ) |   |   | 2,114 |   |
| Corporate Debt Securities                  |   |                | 11,224 |   |                  |   | 3      |                  |   |   | (74 | ) |   |   | 11,153 |   |
| Total short-term investments               |   | $                   | 26,347 |   |                  | $      | 243    |                  |   | $ | (80 | ) |   | $ | 26,510 |   |

----

Index

| December 31, 2008                          |   |                |   |   | Gross unrealized |   |   | Gross unrealized |   |
|--------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Short-term investments                     |   | Amortized cost |   |   | Gain                  |   |   | Loss                  |   |   | Fair value |   |
|                                       |   |                |   |   |                  |   |   |                  |   |   |   |   |
| US Government Securities                   |   | $                   | 19,310 |   |                  | $      | 548    |                  |   | $ | - |   |   | $ | 19,858 |   |
| Government-Sponsored Enterprise Securities |   |                | 2,967  |   |                  |   | -      |                  |   |   | (20 | ) |   |   | 2,947 |   |
| Corporate Debt Securities                  |   |                | 398    |   |                  |   | -      |                  |   |   | - |   |   |   | 398 |   |
| Total short-term investments               |   | $                   | 22,675 |   |                  | $      | 548    |                  |   | $ | (20 | ) |   | $ | 23,203 |   |

| December 31, 2008           |   |                |   |   | Gross unrealized |   |   | Gross unrealized |   |
|-----------------------------|--------|---------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Long-term investments       |   | Amortized cost |   |   | Gain                  |   |   | Loss                  |   |   | Fair value |   |
|                        |   |                |   |   |                  |   |   |                  |   |   |   |   |
| US Government Securities    |   | $                   | 2,221  |   |                  | $      | 104    |                  |   | $ | - |   |   | $ | 2,325 |   |
| Total long-term investments |   | $                   | 2,221  |   |                  | $      | 104    |                  |   | $ | - |   |   | $ | 2,325 |   |

----

Index

|                       |   | Three months ended |   |
|----------------------------|--------|--------------------|--------|
|                       |   | June 30, 2009 |   |
| Risk free interest rate    |   |               | 2.1    | % |
| Volatility                 |   |               | 65     | % |
| Expected term from vesting |   | 3.8 years          |   |
| Dividend yield             |   |               | 0      | % |

----

Index

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

|   | · | Evaluating AZX100 for medically and commercially significant applications, such as prevention of hypertrophic and keloid scarring, treatment of pulmonary disease and vascular intimal hyperplasia.  We are executing a development plan for this peptide which included filing an IND for dermal scarring in 2007 and commencement of Phase 1 safety studies in this indication in the first quarter of 2008.  OurPhase 1a study was completed in May 2008.  The study’s Safety Committee reviewing all safety-related aspects of the Phase 1a trial was satisfied with the profile of AZX100.  We initiated a second safety study in dermal scarring (Phase 1b), which was completed in the fourth quarter of 2008.  The study’s Safety Committee reviewing all safety-related aspects of the Phase 1b trial was satisfied with the profile of AZX100.  We commenced in the first quarter of 2009the AZX100 Phase 2 human clinical trials in keloid scar revision and dermal scarring following shoulder surgery.  We also continued to perform pre-clinical studies supporting multiple indications for AZX100. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Pre-clinical experiments investigating the potential of Chrysalin to modulate the health of endothelial tissue in blood vessels and other mechanism-of-action studies to support our strategy to partner our vascular product candidates.  We did not perform additional pre-clinical or clinical studies in fracture repair, wound healing, spine fusion, cartilage defect repair, dental bone repair or tendon repair.  In2009, we will continue studies to support our vascular partnering efforts. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

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Index

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Index

 4. 

1A.  

|   | · | unfavorable results of our product candidate development efforts; |
|--------|--------|-------------------------------------------------------------------|

|   | · | unfavorable results of our pre-clinical or clinical testing; |
|--------|--------|--------------------------------------------------------------|

|   | · | delays in obtaining, or failure to obtain FDA approvals; |
|--------|--------|----------------------------------------------------------|

|   | · | increased regulation by the FDA and other agencies; |
|--------|--------|-----------------------------------------------------|

|   | · | the introduction of competitive products; |
|--------|--------|-------------------------------------------|

|   | · | impairment of license, patent or other proprietary rights; |
|--------|--------|------------------------------------------------------------|

|   | · | failure to achieve market acceptance of our products; |
|--------|--------|-------------------------------------------------------|

|   | · | the impact of present and future collaborative agreements; |
|--------|--------|------------------------------------------------------------|

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Index

|   | · | failure to successfully implement our drug development strategy; and |
|--------|--------|----------------------------------------------------------------------|

|   | · | failure in the future to meet the requirements for continued listing on the NASDAQ Markets. |
|--------|--------|---------------------------------------------------------------------------------------------|

4.  Submission 

6.  

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Index

| Signature                                      | Title                                                                                        | Date            |
|------------------------------------------------|----------------------------------------------------------------------------------------------|-----------------|
|                                           |                                                                                         |            |
| /s/ John M. Holliman, IIIJohn M. Holliman, III | Executive Chairman(Principal Executive Officer)                                              | August 12, 2009 |
|                                           |                                                                                         |            |
|                                           |                                                                                         |            |
| /s/ Les M. TaegerLes M. Taeger                 | Senior Vice President and ChiefFinancial Officer(Principal Financial and Accounting Officer) | August 12, 2009 |

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Index

| ExhibitNo. | Description                                                                                                                     | Incorporated by Reference To: | FiledHerewith |
|------------|---------------------------------------------------------------------------------------------------------------------------------|-------------------------------|---------------|
|       |                                                                                                                            |                          |          |
| 31.1       | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a), as amended.                    |                          | X             |
|       |                                                                                                                            |                          |          |
| 31.2       | Certification of Principal Financial and Accounting Officer Pursuant to Securities Exchange Act Rule 13a-14(a), as amended      |                          | X             |
|       |                                                                                                                            |                          |          |
| 32         | Certification of Principal Executive Officer and Principal Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350* |                          |          |

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