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# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

# FORM 10-Q

(Mark One)

[X]  Quarterly Report Pursuant to Section 13 or
15(d) of the Secutities Exchange Act of 1934

For the quarterly period ended September 30,
2002, or

[  ] Transition Report Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from  to

Commission file number 0-21615

# BOSTON BIOMEDICA, INC.(Exact Name of Registrant as Specified in its Charter)

Massachusetts           

             
             
             
             
  04-2652826
          
(State or other Jurisdiction of        
             
             
             
             
             
             
            
(I.R.S. Employer          
          
           
Incorporation or Organization)     
             
             
             
             
             
             
           
 Identification No.)

375 West Street,        
             
             
            
             
             
             
             
             
             
             
     
West Bridgewater, Massachusetts           
           
           

             
             
  02379-1040
    (Address of Principal Executive Offices)
            
            
             
             
             
             
             


(Zip Code)

Registrants telephone number, including area
code(508) 580-1900

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X]     No [  ]

The number of shares outstanding of the Registrants common
 stock as of November 1, 2002, was 6,786,335.

---

Part I  FINANCIAL INFORMATION
  Item 1. Financial Statements
    Consolidated Statements of Operations:
        Three and Nine Months Ended September 30, 2002
    Balance Sheet
    Statement of Cash Flows
    Notes to Financial Statements
  Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Item 3. Quantitative and Qualitative Disclosures About Market Risk
  Item 4. Controls and Procedures

Part II  OTHER INFORMATION
  Item 1. Legal Proceedings
  Item 2. Changes in Securities and Use of Proceeds
  Item 3. Defaults Upon Senior Securities
  Item 4. Submission of Matters to a Vote of Security Holders
  Item 5. Other Information
  Item 6. Exhibits and Reports on Form 8-K
  Signatures and Certifications

# BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

The accompanying notes are an integral part of the
Consolidated Financial Statements

# BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)

The accompanying notes are an integral part of the
Consolidated Financial Statements

# BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

The accompanying notes are an integral part of the
Consolidated Financial Statements

# BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

## (1) Basis of
Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally
accepted accounting principles for the interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements. In the opinion of management, all
adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have
been included. Operating results for the three and nine months ended September 30, 2002 are not necessarily
indicative of the results that may be expected for the year ending December 31, 2002. For further information,
refer to the consolidated financial statements and footnotes thereto included in the Form 10-K filing for the
fiscal year ended December 31, 2001 for Boston Biomedica, Inc. and Subsidiaries (the Company or Boston
Biomedica) and the Companys Form 10-Q filings for the three months ended March 31, 2002 and three and six
months ended June 30, 2002, respectively.

Certain amounts  included in the prior years  financial  statements  have been  reclassified to conform to the
current years presentation.

In February 2001, the Company sold the business and certain assets and liabilities of BBI Clinical Laboratories,
Inc. (BBICL), a wholly-owned subsidiary of the Company, to a third party in conjunction with its decision to
exit the clinical laboratory business segment.  The accompanying financial statements present BBICLs remaining
net liabilities and results of operations as discontinued operations.

## (2) Recent
Accounting Standards

Statement of Financial  Accounting  Standards  No. 142,  Goodwill  and Other  Intangible  Assets (SFAS 142),
became effective for the Company  beginning January 1, 2002. SFAS 142 requires,  among other things,  the cessation
of the  amortization  of goodwill.  In addition,  the standard  includes  provisions  for the  reclassification  of
certain  existing  recognized  intangibles  as goodwill,  reassessment  of the useful lives of existing  recognized
intangibles,  reclassification  of certain  intangibles out of previously  reported goodwill and the identification
of reporting  units for purposes of assessing  potential  future  impairments  of goodwill.  SFAS 142 also required
the Company to complete a transitional  goodwill  impairment  test six months from the date of adoption.  This test
was performed in the second  quarter and resulted in no goodwill  impairment.  In  accordance  with the adoption of
this pronouncement,  the Company ceased amortization of approximately  $227,000 of goodwill  (approximately  $5,400
quarterly)  attributable to its BBI Source Scientific,  Inc. subsidiary.  The Companys remaining intangible assets
as of January 1, 2002 relate to trademarks,  license and patent costs, and accordingly,  amortization of such costs
over their remaining  estimated useful lives is included in the accompanying  financial  statements for all periods
presented.

Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" (SFAS 143), is
effective January 1, 2003. SFAS 143 addresses the financial accounting and reporting for obligations and
retirement costs related to the retirement of tangible long-lived assets. The adoption of SFAS 143 is not
expected to have a significant impact on the Companys financial statements.

Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets" (SFAS 144), became effective January 1, 2002. SFAS 144 supersedes FASB Statement No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," and the accounting and
reporting provisions relating to the disposal of long-lived assets.  The adoption of SFAS 144 did not have a
significant impact on the Companys financial statements.

In July 2002, the FASB issued SFAS 146, "Accounting for Costs Associated with Exit or Disposal Activities." SFAS
146 requires that a liability for a cost associated with an exit or disposal activity be recognized at its fair
market value when the liability is incurred, rather than at the date of an entity's commitment to an exit plan.
The provisions of SFAS 146 are effective for exit or disposal activities that are initiated after December 31,
2002. The adoption of SFAS 146 is not expected to have a material effect on the Company's financial statements.

## (3)
Inventories

## (4) Segment
Reporting and Related Information

Operating segments are components of an enterprise for which separate  financial  information is available that
is  evaluated  regularly  by  senior  management  in  deciding  how to  allocate  resources  and in  assessing  the
performance of each segment.  The Company is organized  into segments  along  business lines and senior  management
regularly reviews financial results for all business lines, focusing primarily on revenue and operating income.

The Company had four  operating  segments as of September 30, 2002.  The  Diagnostics  segment  serves the
worldwide in vitro  diagnostics  industry,  including users and regulators of their test kits, with quality control
products,  and test kit components.  The Biotech segment is a research and development center providing support for
the other BBI business units, as well as contract  research,  molecular and cell biology  services,  and repository
services for the government and life sciences  industry.  The Laboratory  Instrumentation  segment sells diagnostic
instruments  primarily to the worldwide in vitro diagnostic  industry on an OEM basis,  and also performs  in-house
instrument  servicing.  The PCT  segment  consists of  research  and  development  primarily  in  pressure  cycling
technology  ("PCT").  The Company  performs  research in the development of PCT, with particular focus in the areas
of nucleic acid extraction and pathogen  inactivation.  While the PCT segments research and development  operation
does not currently have any significant  product or service  revenue,  the Company  announced the  availability for
commercial  sale of its PCT  products in late  September  of 2002.  Revenue to date in the PCT segment  consists of
both private and public (NIH) funding of segment  research.  Most of the expenditures  incurred by this segment are
for research and development  expenses,  general  management  expenses and patent costs. See Note 7 with respect to
discontinued operations which are no longer classified as an operating segment of the Company.

The Companys underlying accounting records are maintained on a legal entity basis for government and public
reporting requirements.  Inter-segment sales are recorded on a "third party best price" basis and are significant
in measuring segment operating results. The following segment information has been prepared in accordance with
the internal accounting policies of the Company, as described above.

Operating segment revenue
 was as follows:

Operating segment (loss) income was as follows:

Identifiable corporate and operating segment assets are all located in the United States as follows:

## (5)
Computation of Net Income (Loss) per Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common
shares outstanding.  Diluted earnings per share is computed by dividing net income (loss) by the weighted average
number of common shares outstanding plus additional common shares that would have been outstanding if potentially
dilutive common shares had been issued.  For the purposes of this calculation, stock options are considered
common stock equivalents in periods in which they have a dilutive effect.  Stock options that are antidilutive
are excluded from the calculation.  Potentially dilutive securities having a net effect of 132,855 and 215,259
common shares, for the three and nine months ended September 30, 2002 and 479,839 and 951,119 common shares, for
the three and nine months ended September 30, 2001, were not included in the computation of diluted earnings per
share because to do so would have been antidilutive.

The earnings (loss) per share computation for the first nine months of 2002 reflects the issuance of 600,000
additional shares of common stock in the first quarter of 2002 to a group of investors; these shares were
subscribed to and paid for in December 2001. The income (loss) per share computation for the first nine months of
2001 reflects both the issuance of 801,325 additional shares of common stock in the first quarter of 2001, as
certain holders of the Debentures exercised their rights to convert $1,210,000 of such Debentures into shares of
the Companys common stock, and the issuance of 139,051 additional shares of common stock associated with the
exercise of stock options and warrants, and purchases made pursuant to the employee stock purchase plan.  In
addition, on June 15, 2001 the Company and Paradigm Group, LLC entered into an agreement to permanently settle
their disputes.  Under the terms of the agreement, Paradigm Group, LLC rescinded their exercise of the common
stock purchase warrants, which have since expired, and the Company retains the 500,000 shares associated with
their exercise. These shares were included in the total shares outstanding as well as in the calculation of
earnings (loss) per share from February 17, 2000 (the date of exercise) through June 15, 2001 (the date of the
agreement).  In the third quarter of 2001 the Company took the necessary measures to cancel these shares and
restore these shares to authorized only status.

## (6) Related Party Transaction

As of December 31, 2001, the Company had entered into a one year loan of $525,000 to its Chief Executive Officer
(CEO), renewable at the Companys option, and collateralized by 90,000 of his shares of Boston Biomedica common
stock.  Interest on the loan was payable monthly at the annual rate of 7%. The loan is shown on the balance sheet
as a decrease to stockholders equity as of December 31, 2001.  In January 2002, the loan was repaid in full. The
loan was replaced by the Companys pledge of a $1,000,000 interest bearing deposit at a financial institution to
provide additional security for loans in the aggregate amount of $2,418,000 from the financial institution to an
entity controlled by the CEO.  The loans are personally guaranteed by the CEO.  The Companys pledge is secured
by a junior subordinated interest in the collateral provided by the CEO to the financial institution. Such
collateral includes all of his real property and common stock holdings in Boston Biomedica, Inc.  The original
loan and subsequent pledge of $1,000,000 were made to assist the CEO in refinancing indebtedness related to,
among other things, his divorce settlement and to enable him to avoid the need to sell his common stock holdings
in Boston Biomedica, Inc. on the open market to satisfy his debts.  The Companys Board of Directors and, with
respect to the decision to pledge the $1,000,000 cash collateral, a special committee of the independent
directors, evaluated a number of alternatives and concluded that the original loan to the CEO and the subsequent
pledge were the best alternative and in the best interests of the Companys stockholders because it would, among
other things, avoid selling pressure on the Companys common stock and relieve the financial pressures on the CEO
that could otherwise divert his attention from the Company.  The Companys pledge of the $1,000,000 deposit is
reflected on the Companys balance sheet as restricted cash.

## (7)
Disposition of Assets

In February 2001, the Company exited the clinical laboratory testing services market and sold the business and
certain assets of BBI Clinical Laboratories, Inc., a wholly-owned subsidiary of the Company, to a third party for
an adjusted purchase price of $8,958,000.   The Company has retained certain other assets and liabilities of
BBICL, primarily property, plant and equipment, together with the facility lease subsequent to the closing date,
which the Company is attempting to sublease.  The Company has written down all of the retained assets not
otherwise redistributed to other business units to their estimated net realizable value.  In accordance with a
transition services agreement, the Company operated the clinical laboratory testing business on behalf of the
buyer during the period February 20, 2001 through December 2001, although most operations ceased activity by the
end of June 2001; substantially all costs associated with operating the business subsequent to the closing date
were borne by the purchaser.

The Company adjusted its estimated liabilities based upon third quarter developments and accordingly, the Company
revised its estimate of accrued liabilities to exit the clinical laboratory testing business. The liability was
reduced to $855,000 as of  September 30, 2002.  The major component of this remaining accrual is estimated lease
exit and facility related costs ($532,000) with the remainder for health care claims, other regulatory audit
adjustments, and for other miscellaneous costs associated with exiting this business segment.

The Company recorded a gain of $4,334,000 net of taxes of $969,000 in the fiscal year ended 2001,and recorded an
additional after tax gain of $225,000 in the third quarter of 2002;  the gain may be subject to future
adjustments as the Company completes the process of exiting this business and permanently closing the facility.
The remaining closing costs include an estimate to dispose of any remaining assets and retire all existing
liabilities including the facility lease.  The Company utilized certain prior period net operating loss
carryforwards, previously reserved for by the Company, to partially offset the income tax effect of this gain.
All financial data presented in the accompanying financial statements reflects discontinued operations of this
segment of the business for all periods presented.

In summary, revenues from discontinued operations, net of intercompany eliminations, were $973,000, in the period
January 1, 2001 to February 20, 2001.  Operating income (loss) from discontinued operations were $0 for the three
and nine months ended September 30, 2002 and  $0 and ($136,000) for the three and nine months ended September 30,
2001, respectively.  Income (loss) from discontinued operations was $225,000 for the three and nine months ended
September 30, 2002 and $0 and $3,964,000 for the three and nine months ended September 30, 2001 respectively.

## ITEM 2.  MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION
                AND RESULTS OF OPERATIONS

## Overview

In February 2001, the Company exited the clinical laboratory testing services market and sold the business and
certain assets of BBI Clinical Laboratories, Inc., a wholly-owned subsidiary of the Company, to a third party for
an adjusted purchase price of $8,958,000.    Additional information relative to this transaction is contained
hereunder in the caption entitled Discontinued Operations included in Results of Operations for the three and
nine months ended September 30, 2002 and 2001.

## Critical Accounting Policies

The significant accounting policies utilized by the Company in the preparation of the accompanying financial
statements are set forth in Part I, Item 7 of the Companys Form 10-K for the year ended December 31, 2001, under
the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations. There have
been no changes to these policies since December 31, 2001, except as noted in the following paragraph.

Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (SFAS 142), became
effective for the Company beginning January 1, 2002.  SFAS 142 requires, among other things, the cessation of the
amortization of goodwill.  In addition, the standard includes provisions for the reclassification of certain
existing recognized intangibles as goodwill, reassessment of the useful lives of existing recognized intangibles,
reclassification of certain intangibles out of previously reported goodwill and the identification of reporting
units for purposes of assessing potential future impairments of goodwill.  SFAS 142 also required the Company to
complete a transitional goodwill impairment test six months from the date of adoption.  This test was performed
in the second quarter and resulted in no goodwill impairment.  In accordance with the adoption of this
pronouncement, the Company ceased amortization of approximately $227,000 of goodwill (approximately $5,400
quarterly) attributable to its BBI Source Scientific, Inc. subsidiary.  The Companys remaining intangible assets
as of January 1, 2002 relate to trademarks, license and patent costs, and accordingly, amortization of such costs
over their remaining estimated useful lives is included in the accompanying financial statements for all periods
presented.

## RESULTS OF OPERATIONSTHREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

Revenue

Total revenue from continuing operations increased 8.6%, or $467,000, to $5,876,000 in the third quarter of 2002
from $5,409,000 in the third quarter of 2001. The increase in revenue was the result of a decrease in product
revenue of 15.7%, or $533,000, to $2,868,000 in the third quarter of 2002 from $3,401,000 in the third quarter of
2001, offset by a 49.9% increase in service revenue or $1,000,000, to $3,008,000 in the third quarter of 2002
from $2,008,000 in the third quarter of 2001.

Product  Revenue.   The decline in product revenue of the Diagnostics segment was due primarily to postponed orders as the current
economic downturn in the in-vitro diagnostic industry hurt customer test kit sales and new test development.

Service  Revenue.              The $1,000,000 increase in service revenue was related to strong activity in two service contracts related to HIV
vaccine development and Hepatitis C work at the Biotech segment; the former resulted in increased revenue for the
Biotech segment as the result of increased activity from a subcontractor.

Gross Profit

Overall gross profit decreased 8.4%, or $184,000, to $2,018,000 in the third quarter of 2002 from $2,202,000 in
the third quarter of 2001.  Product gross profit decreased 24.9%, or $439,000, to $1,326,000 in the third quarter
of 2002 from $1,765,000 in the third quarter of 2001; product gross margin declined to 46.2% in the third quarter
of 2002 from 51.9% in the third quarter of 2001.  Services gross profit increased $255,000 or 58.3% to $692,000
in the third quarter of 2002 from $437,000 in the third quarter of 2001, while service gross margin increased to
23.0% in the third quarter of 2002 from 21.8% in the third quarter of 2001.

Product Gross Margin

The decrease in product gross margin at the Diagnostics segment was primarily due to an unfavorable product mix
shift coupled with a 15.7% decrease in product revenue.

Service Gross Margin

The service gross margin increase was due to increased service revenues at the Biotech segment associated with
increased work on two vaccine contracts.

Research and Development

Research and development expenditures increased 31.8%, or $171,000, to $708,000 in the third quarter of 2002 from
$537,000 in the third quarter of 2001.  The increased level of expenditures was associated with ongoing PCT
related projects including optimization protocols for various tissue types.  In addition, there was an increase
in development work on AccuChartPlus, a web based data management software for AccuRun customers.

Selling and Marketing

Selling and marketing expenses increased by 6.8%, or $51,000, to $804,000 in the third quarter of 2002 from
$753,000 in the third quarter of 2001, as the Company continued to incur additional new sales, marketing and
promotion costs associated with the commercial launch of the PCT Barocycler.

General and Administrative

General and administrative costs decreased 5.0%, or $54,000, to $1,016,000 in the third quarter of 2002 from
$1,070,000 in the third quarter of 2001, due to a one time credit associated with a telecommunications claim.

Operating Income (Loss) from continuing operations

Operating income (loss) from continuing operations amounted to $(510,000) in the third quarter of 2002 compared
to an operating (loss) of $(157,000) in the third quarter of 2001. The Diagnostics segments operating income
decreased to $206,000 in the third quarter of 2002 from $477,000 in the third quarter of 2001, associated with a
18.0% decrease in product revenue at the Diagnostics segment as explained above.  The Biotech segments operating
loss decreased to $(29,000) in the third quarter of 2002 from $(52,000) in the third quarter of 2001, due to
higher revenues associated with work on two vaccine contracts.  The operating loss of the PCT segment increased
to $(490,000) in the third quarter of 2002 from $(417,000) in the same period of 2001 due to patent costs and
increased research and development costs associated with the final phases of product development and advanced
prototype manufacture, and a higher level of sales, marketing and promotion related expenses associated with the
commercial launch of the PCT Barocycler.  The Laboratory Instrumentation segments operating loss increased to
$(197,000) from $(165,000);  this segment recorded a 4.8% decline in revenue associated with a lower level of
instrument development services and a declining backlog, coupled with increased costs associated with a facility
lease renewal effective in 2002.

Interest Expense

Net interest expense, primarily from the Companys outstanding mortgage, was relatively unchanged in the third
quarter of 2002 as compared to the third quarter of 2001.

Income Taxes

In the year 2000, the Company established a full valuation allowance for its deferred tax assets in accordance
with Statement of Financial Accounting Standards No. 109 and in consideration of three consecutive years of
losses; accordingly, the Company has not recognized an income tax benefit associated with the loss from
continuing operations in the third quarter of 2002.

Loss from Continuing Operations

Loss from continuing operations amounted to $567,000 for the quarter ended September 30, 2002 as compared to a
loss of $211,000 for the quarter ended September 30, 2001, as a result of the items discussed above.

Income from Discontinued Operations

The Company adjusted its estimate of remaining accrued liabilities to exit the clinical laboratory testing
business based upon third quarter developments.    The liability was reduced to $855,000 as of September 30,
2002.  The major component of this remaining accrual is estimated lease exit and facility related costs
($532,000) with the remainder for health care claims, other regulatory audit adjustments, and for other
miscellaneous costs associated with exiting this business segment. This resulted in recording an after tax gain
of $225,000 in the third quarter of 2002.

Net Income (Loss)

The  Company  had a net  (loss) of  $(342,000)  in the third  quarter  of 2002 as  compared  to a net (loss) of
$(211,000)  in the third quarter of 2001.  The third quarter of 2002 included a gain of $225,000 from  discontinued
operations.

## RESULTS OF OPERATIONSNINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

Revenue

Total revenue from continuing operations increased 5.0%, or $794,000, to $16,685,000 in the first nine months of
2002 from $15,891,000 in the first nine months of 2001. The increase in revenue was the result of a 19.9%
increase in service revenue or $1,206,000, to $7,253,000 in the first nine months of 2002 from $6,047,000 in the
first nine months, partially offset by a decline in product revenue of 4.2%, or $411,000, to $9,432,000 in the
first nine months of 2002 from $9,843,000 in the first nine months of 2001.

Product  Revenue.   The decrease of $411,000 in product revenue was due primarily to postponed orders in the current economic
downturn in the in-vitro diagnostic industry at the Diagnostic segment, coupled with decreases of product sales
at the Biotech segment and lower instrument sales at the Laboratory Instrumentation segment (the latter segment
experienced strong sales to existing customers in the first half of 2001).

Service  Revenue.              The $1,206,000 increase in service revenue was primarily related to strong activity in two service contracts
related to HIV vaccine development and Hepatitis C work at the Biotech segment (the former resulting from
increased revenue for the Biotech segment as the result of increased activity from a subcontractor),  and
increased grant revenue at the Companys PCT segment.

Gross Profit

Overall gross profit decreased 4.3%, or $281,000, to $6,281,000 in the first nine months of 2002 from $6,562,000
in the first nine months of 2001.  Product gross profit decreased 10.0%, or $509,000, to $4,599,000 in the first
nine months of 2002 from $5,108,000 in the first nine months of 2001;  product gross margin declined to 48.8% in
the first nine months of 2002 from 51.9% in the first nine months 2001.  Services gross profit increased to
$1,682,000 in the first nine months of 2002 from $1,454,000 in the first nine months of 2001, while service gross
margin decreased to 23.2% in the first nine months of 2002 from 24.0% in the first nine months of 2001.

Product Gross Margin

A decrease in product gross margin was associated with increased sales of higher margin catalog products in the
first nine months of 2001 at the Diagnostics segment and higher raw material costs in the first nine months of
2002, a decrease in high margin product sales at the Biotech segment in the first nine months of 2002, and lower
revenues from instrument sales over a relatively fixed cost structure (which includes increased costs associated
with a facility lease renewal effective in 2002) at the Laboratory Instrumentation segment.

Service Gross Margin

The service gross margin decrease was due to increased service revenues associated with the PCT segment and
increased activity associated with two service contracts related to HIV vaccine development and Hepatitis C work
at the Biotech segment.  This increase was offset by an unfavorable mix shift to lower margin
government contracts combined with a lower level of billable hours associated with government reimbursable
contract work and higher facility operating costs at the Biotech segment in the first nine months of 2002.

Research and Development

Research and development expenditures increased 23.6%, or $401,000, to $2,097,000 in the first nine months of
2002 from $1,696,000 in the first nine months of 2001.  The increased level of expenditures was associated with
ongoing PCT related projects including optimization protocols for various tissue types.  In addition, there was
an increase in development work on AccuChart Plus, a web based data management software for AccuRun customers.

Selling and Marketing

Selling and marketing expenses increased by 15.5%, or $340,000, to $2,534,000 in the first nine months of 2002
from $2,194,000 in the first nine months of 2001.  The Company incurred significant marketing and promotion
related costs in the first nine months of 2002 primarily associated with its introduction of the PCT Barocycler
at the Pittsburgh Conference industry trade show and related ongoing sales, marketing and promotion efforts
associated with the commercial launch of the PCT Barocycler.

General and Administrative

General and  administrative  costs increased 8.4%, or $252,000,  to $3,242,000 in the first nine months of 2002
from  $2,990,000 in the first nine months of 2001,  due primarily to higher than expected  health care and facility
costs  incurred  in the  first  nine  months  of 2002  partially  offset  by a one time  credit  associated  with a
telecommunications  claim,  whereas in the first nine months of 2001,  the Company  benefited by the reversal of an
$80,000 legal expense accrual  associated  with the June 2001 legal  settlement  reached with Paradigm Group,  LLC.
In the second  quarter of 2001,  the Company  increased its  provision for doubtful  accounts by $82,000 based on a
significant deterioration in the financial condition of a customer in its Diagnostics segment.

Operating Income (Loss) from Continuing Operations

Operating  (loss)  from  continuing  operations  amounted  to  $(1,593,000)  in the first  nine  months of 2002
compared  to an  operating  (loss) of  $(318,000)  in the first  nine  months of 2001.  The  Diagnostics  segments
operating  income  decreased to $893,000 in the first nine months of 2002 from  $1,146,000 in the first nine months
2001 due to a decline in product  revenues  coupled  with a lower  product  gross  margin.  The  Biotech  segments
operating  loss  increased to $(405,000) in the first nine months of 2002 from  $(143,000) in the first nine months
of 2001,  primarily  due to both  increased  research and  development  costs and sales and  marketing  costs.  The
operating loss of the PCT segment  increased to  $(1,729,000)  in the first nine months of 2002 from  $(999,000) in
the first nine months of 2001 due to increased  research and development  costs associated with the final phases of
product  development  and advanced  prototype  manufacture  and increased  sales,  promotion  and  marketing  costs
associated with the commercial launch in late September of 2002 of the PCT Barocycler .

Interest Expense

Net interest  expense  decreased  to $155,000 in the first nine months of 2002 from  $326,000 in the first nine
months of 2001. The Company redeemed the remaining  $2,040,000  (face value) of outstanding 3% Senior  Subordinated
Convertible  Debentures  (Debentures),  which were originally  issued in August 2000, plus accrued interest and a
premium of  $190,000  (which was charged to interest  expense) in the first nine months of 2001.  Interest  expense
in the first nine months of 2001 also included  interest on the Companys  line of credit,  which was terminated by
the Company in February  2001.  Both the first nine months of 2002 and 2001 included  interest  expense  associated
with the Companys outstanding mortgage.

Income Taxes

In the year 2000, the Company established a full valuation allowance for its deferred tax assets in accordance
with Statement of Financial Accounting Standards No. 109 and in consideration of three consecutive years of
losses; accordingly, the Company has not recognized an income tax benefit associated with the loss from
continuing operations in the first nine months of 2002 and 2001, as these tax assets have been fully reserved
for.  The Company made estimated state tax payments of approximately $16,000 in the first nine months of 2001.

Loss from Continuing Operations

Loss from continuing operations amounted to $1,748,000 for the nine months ended September 30, 2002 as compared
to a loss of $659,000 for the nine months ended September 30, 2001 as a result of the items discussed above.

Discontinued Operations

On February 20, 2001, the Company sold the business and certain assets and liabilities of its wholly-owned
subsidiary BBICL to a third party.  The Company retained certain other assets and liabilities of BBICL, primarily
property, plant and equipment, together with the facility lease subsequent to the closing date, which the Company
is attempting to sublease.  The Company wrote down all of the retained assets not otherwise redistributed to
other business units to their estimated net realizable value.

The Company adjusted its estimate of remaining accrued liabilities to exit the clinical laboratory testing
business based upon third quarter developments.  The liability was reduced to $855,000 as of  September 30,
2002.  The major component of this remaining accrual is estimated lease exit and facility related costs
($532,000) with the remainder for health care claims, other regulatory audit adjustments, and for other
miscellaneous costs associated with exiting this business segment.  Accordingly, based upon this revised estimate
of remaining liabilities, the Company recorded an after tax gain of $225,000 in the third quarter of 2002.

Revenues from discontinued operations, net of intercompany eliminations, were $973,000, in the period January 1,
2001 to February 20, 2001.  Operating (losses) from discontinued operations was $0 for the three and nine months
ended September 30, 2002 and were $0 and $(136,000) for the three and nine months ended September 30, 2001,
respectively. The Company recorded a gain of $4,334,000, net of taxes of $969,000, in 2001.  Income (loss) from
discontinued operations was $225,000 for the three and nine months ended September 30, 2002 as discussed above,
and $0 and $3,964,000 for the three and nine months ended September 30, 2001, respectively. The Company utilized
prior period net operating loss carryforwards, previously reserved for by the Company in year 2000, to partially
offset the tax effect of this gain.  Additionally, the Company took a tax benefit of $564,000 related to stock
option exercises that was not previously recorded as the Company was in a loss position; this tax benefit was
recorded as a credit to additional paid-in capital in the first quarter of 2001.

In accordance with a transition services agreement, the Company operated the clinical laboratory business on
behalf of the buyer during the period February 20, 2001 through December 2001 although most operations ceased
activity by the end of June 2001. All of the revenues generated by, and substantially all costs associated with
operating the business subsequent to the closing date of the transaction are the responsibility of the purchaser.
A portion of the proceeds from this sale were used to redeem all outstanding Debentures and to retire the
Companys line of credit in the first quarter of 2001.

Net Income (Loss)

The Company had a net (loss) of ($1,523,000) in the first nine months of 2002 as compared to net income of
$3,305,000 in the first nine months of 2001.  The first nine months of 2002 included an after-tax gain of
$225,000 from discontinued operations, whereas in the first nine months of 2001, the Company recorded an
after-tax gain of $3,964,000 associated with discontinued operations.

## LIQUIDITY AND
FINANCIAL CONDITION

At September 30th, 2002, the Company had cash and cash equivalents of $2,023,872, including restricted cash of
$1,010,659, compared to cash of $2,857,916 at December 31, 2001. The company has had operating losses from
continuing operations of $1,593,000 and $491,000 and has experienced negative cash flows from operations of
$263,000 and $55,000 for the nine month period ended September 30, 2002 and the year ended December 2001,
respectively.  In addition, it is anticipated there may be additional working capital requirements in connection
with PCT Barocycler sales and marketing activities. Management has met its recent historical cash flow needs
by managing its working capital and utilizing proceeds from the February 2001 sale of one of its business
segments. It plans to manage its future liquidity needs through cost reductions and additional selling
initiatives.   Towards this end, the Company implemented in late October of 2002 specific cost reduction measures
in order to return the company to cash flow positive operations.

Net cash used in operations for the nine months ended September 30, 2002 was $263,000 as compared to $160,000
during the same period last year.   The operational use of cash during the first nine months of 2002 was
primarily the result of the year to date operating loss incurred in the first nine months of 2002 and the buildup
of PCT raw materials inventory offset by an increase in trade accounts payable primarily associated with work on
two large government contracts which occurred in the third quarter of 2002.  The first nine months of 2001
included the receipt of an income tax refund offset by the operating loss incurred in the first nine months of
2001, a buildup of inventory, the reversal of non-cash interest expense and declines in both accounts payable and
accrued expenses.

Net cash used in investing activities for the nine months ended September 30, 2002 was $578,000 compared to
$206,000 during the same period last year. The increase of cash used for investing in the first nine months of
2002 was due to the purchase of a DNA Sequencer at the Companys Biotech subsidiary and the construction of
several preproduction PCT Barocyclers as demonstration units.

Cash used in financing activities for the nine months ended September 30, 2002 was $397,000 compared to cash used
of $7,479,000 during the same period last year.  As discussed further below, the Company pledged $1,000,000 via a
deposit in an interest bearing account at a financial institution in the first nine months of 2002; this was
partially offset by repayment to the Company of a loan by its Chief Executive Officer (CEO).  In the first nine
months of 2001, the Company used proceeds from the sale of certain assets of BBICL to pay off in full the
remaining $5,762,635 balance on its line of credit and all remaining outstanding 3% Senior Subordinated
Convertible Debentures and issued a loan to the CEO as discussed further hereunder.

As of December 31, 2001, the Company had entered into a one year loan of $525,000 to its CEO, renewable at the
Companys option, and collateralized by 90,000 of his shares of Boston Biomedica common stock; $350,000 had been
loaned as of September 30, 2001.  Interest on the loan was payable monthly at the annual rate of 7%.  As of
December 31, 2001, the loan is shown on the balance sheet as a decrease to stockholders equity.  In January 2002,
the loan was repaid in full. The loan was replaced by the Companys pledge of a $1,000,000 interest bearing
deposit at a financial institution to provide additional security for loans in the aggregate amount of $2,418,000
from the financial institution to an entity controlled by the CEO.  The loans are personally guaranteed by the
CEO.  The Companys pledge is secured by a junior subordinated interest in the collateral provided by the CEO to
the financial institution. Such collateral includes all of his real property and common stock holdings in Boston
Biomedica, Inc.  The original loan and subsequent pledge of $1,000,000 were made to assist the CEO in refinancing
indebtedness related to, among other things, his divorce settlement and to enable him to avoid the need to sell
his common stock holdings in Boston Biomedica, Inc. on the open market to satisfy his debts.  The Companys Board
of Directors and, with respect to the decision to pledge the $1,000,000 cash collateral, a special committee of
the independent directors, evaluated a number of alternatives and concluded that the original loan to the CEO and
the subsequent pledge were the best alternative and in the best interests of the Companys stockholders because
it would, among other things, avoid selling pressure on the Companys common stock and relieve the financial
pressures on the CEO that could otherwise divert his attention from the Company.

Based on current forecasts, management believes that the company has sufficient liquidity to finance operations
for the next 12 months. Management's forecasts involve assumptions that could prove to be incorrect. If the
company continues to incur operating losses or negative cash flows, it may need to raise additional funds. There
can be no assurance that these funds will be available when required on terms acceptable to the company, if at
all. If adequate funds are not available when needed, the Company may be required to further reduce its fixed
costs and delay, scale back, or eliminate certain of its activities, any of which could have a material adverse
long term effect on its business, financial condition or results of operations. The Company is considering
various sources of additional financing, including but not limited to, strategic alliances and private placements
of debt or equity securities, which could result in dilution to the Company's stockholders. On October 25, 2002,
the Company retained an investment banking firm to advise the Company in the evaluation of strategic
opportunities aimed at increasing shareholder value and liquidity by increasing the capital needed for growth.

## CONTRACTUAL OBLIGATIONS

As of September 30, 2002, there have been no significant changes in the Companys contractual obligations previously
disclosed as of December 31, 2001.

## FORWARD-LOOKING
STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements concerning the Company's financial
performance and business operations. The Company wishes to caution readers of this Quarterly Report on Form 10-Q
that actual results might differ materially from those projected in any forward-looking statements.

Factors which might cause actual  results to differ  materially  from those  projected in the  forward-looking
statements  contained  herein include the following:  due to operational,  scientific or technical  difficulties in
the  implementation  of its  strategies  and  changes  in  customer  demand,  the  Companys  sales to IVD test kit
manufacturers  and sales of ACCURUN  and other  quality  control  products  may  decline;  the  Company  may not be
successful in developing  Pressure Cycling  Technology into  commercially  viable products and services,  including
those in the areas of sample  preparation  and  inactivation,  or such  activities  may take longer than  currently
expected;  demand for commercial  applications of PCT may not materialize as expected;  Pressure Cycling Technology
may also not be adaptable to any other  commercially  viable  applications;  certain  Pressure  Cycling  Technology
applications  may not fall within the claims of the Company's  eight issued U.S.  patents;  individuals  and groups
utilizing  Pressure  Cycling  Technology  may not be required to license  such  technology  from the  Company;  the
Companys  inability to develop the end-user market for quality control products;  the Companys  inability to grow
the sales of Source  Scientific,  Inc. to the extent  anticipated;  the uncertainty of the renewal and full funding
of contracts  with National  Institutes of Health (NIH);  the Companys  inability to obtain an adequate  supply of
the unique and rare  specimens  of plasma and serum  necessary  for  certain of its  products;  the  potential  for
significant  reductions  in  purchases by any of the  Company's  major  customers;  and if expenses are higher than
anticipated,  or if revenues are lower than anticipated,  the Company will require  additional  capital sooner than
expected and there can be no assurance  that the Company  will be able to obtain  additional  financing or capital,
or that it will be  successful  in  eliminating  or scaling  back certain of its  activities.  Certain of these and
other factors which might cause actual results to differ  materially  from those projected are more fully set forth
under the caption "Risk Factors" in the Company's most recent  Registration  Statements on Form S-3 (SEC File No.s
333-94379  and  333-46426)  and in its annual  report on Form 10-K for the year  ended  December  31,  2001 and its
quarterly reports on Form 10-Q for the quarter ended March 31, 2002 and for the quarter ended June 30, 2002.

## ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the reported market risks since December 31, 2001.

## ITEM 4.
CONTROLS AND PROCEDURES

Within the 90-day period prior to the date of this report, the Companys Chief Executive Officer and Principal
Financial Officer performed an evaluation of the effectiveness of the Companys disclosure controls and
procedures (as defined in SEC Rule 13a-14), which have been designed to ensure that material information related
to the Company is timely disclosed.  Based upon that evaluation, they concluded that the disclosure controls and
procedures were effective.

Since the last evaluation of the Companys internal controls and procedures for financial reporting, the Company
has made no significant changes in those internal controls and procedures or in other factors that could
significantly affect the Companys internal controls and procedures for financial reporting.

## PART II. OTHER
INFORMATION

## ITEM 1. LEGAL
PROCEEDINGS

Not Applicable

## ITEM 2.
CHANGES IN SECURITIES AND USE OF PROCEEDS

Not Applicable

## ITEM 3.
DEFAULTS UPON SENIOR SECURITIES

Not Applicable

## ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable

## ITEM 5. OTHER
INFORMATION

Not Applicable

## ITEM 6.
EXHIBITS AND REPORTS ON FORM 8K

## (a) Exhibits

## (b) Reports on Form 8-K.

There were no reports filed by the Company on Form 8-K in the third quarter of 2002.

# SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.

BOSTON BIOMEDICA, INC.


           
             
             
             
             
             
             
             
    (Registrant)



        Date:  
November 13, 2002    
             
             
             
         
By:/s/ Kevin W. Quinlan


          
             
             
             
             
             
             
     Kevin W. Quinlan,
          
             
             
             
             
             
             
     President and Chief Operating Officer and Treasurer
          
             
             
             
             
             
             
     (Principal Accounting and Financial Officer)

# CERTIFICATIONS

I, Richard T. Schumacher, Chairman and Chief Executive Officer, certify that:

(1)        I have reviewed this quarterly report on
Form 10-Q of Boston Biomedica, Inc.

(2)        Based on my knowledge, this quarterly report
does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered
by this quarterly report;

(3)        Based on my knowledge, the financial
statements, and other financial information included in this quarterly report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this
quarterly report.

(4)        The registrant's other certifying officers
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and we have:

(a)        
Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this
quarterly report is being prepared.

(b)        
Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and

(c)        
Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

(5)        
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

(a)        
All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have identified for the registrant's auditors any
material weaknesses in internal controls; and

(b)        
Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant's internal controls; and

(6)        
The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies
and material weaknesses.

# CERTIFICATIONS

I, Kevin W. Quinlan, President and Chief Operating Officer and Treasurer, certify that:

(1)        I have reviewed this quarterly report on
Form 10-Q of Boston Biomedica, Inc.

(2)        Based on my knowledge, this quarterly report
does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered
by this quarterly report;

(3)        Based on my knowledge, the financial
statements, and other financial information included in this quarterly report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this
quarterly report.

(4)        The registrant's other certifying officers
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and we have:

(a)        
Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this
quarterly report is being prepared.

(b)        
Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and

(c)        
Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

(5)        
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

(a)        
All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have identified for the registrant's auditors any
material weaknesses in internal controls; and

(b)        
Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant's internal controls; and

(6)        
The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies
and material weaknesses.