UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter ended September 30, 2000 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: 2-89332 INTERFERON SCIENCES RESEARCH PARTNERS, LTD. (Exact Name of Registrant as Specified in its Charter) New Jersey 22-2502556 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 783 Jersey Avenue, New Brunswick, New Jersey 08901 (Address of principal executive offices) (Zip code) (732) 249 - 3250 (Registrant's telephone number, including area code) 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 ___

INTERFERON SCIENCES RESEARCH PARTNERS, LTD. TABLE OF CONTENTS Page No. Part I. Financial Information: Condensed Balance Sheets--~~June~~September 30, 2000 and December 31, 1999 ...............................................................................1 Condensed Statements of Operations--Three Months and ~~Six~~Nine Months Ended ~~June~~September 30, 2000 and 1999....................................................................~~.....~~2 Condensed Statements of Cash Flows-- ~~Six~~Nine Months Ended ~~June~~September 30, 2000 and 1999........................................................~~......~~3 Notes to Condensed Financial Statements ................................................................4 Management's Discussion and Analysis of Financial Condition and Results of Operations ...............................................................5-6 Part II. Other Information ..................................................................................7 Signatures ...................................................................................................8

INTERFERON SCIENCES RESEARCH PARTNERS, LTD. PART I. FINANCIAL INFORMATION CONDENSED BALANCE SHEETS ~~June~~September 30, December 31, 2000 1999 (Unaudited) ------------ ------------ ASSETS Total assets $ --- $ --- ========= ========= LIABILITIES AND PARTNERS' CAPITAL Partners' capital Limited partners $ --- $ --- General partner --- --- --------- --------- Total partners' capital --- --- --------- --------- Total liabilities and partners' capital $ --- $ --- ========= ========= The accompanying notes are an integral part of these condensed financial statements.

INTERFERON SCIENCES RESEARCH PARTNERS, LTD. CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended ~~Six~~Nine Months Ended ~~June~~September 30, ~~June~~September 30, ------------------- ---------------- 2000 1999 2000 1999 ---- ---- ---- ---- Net income (loss) $ --- $ --- $ --- $ --- ===== ===== ===== ===== Net income (loss) - Limited Partners $ --- $ --- $ --- $ --- Net income (loss) - General Partner --- --- --- --- ----- ----- ----- ----- Net income (loss) $ --- $ --- $ --- $ --- ===== ===== ===== ===== Net income (loss) Net income (loss) per unit per unit ----------------- ----------------- Basic and diluted income (loss) per unit - Limited Partners (1038.7 units outstanding) $ --- $ --- $ --- $ --- ===== ===== ===== ===== The accompanying notes are an integral part of these condensed financial statements.

INTERFERON SCIENCES RESEARCH PARTNERS, LTD. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) ~~Six~~Nine Months Ended ~~June~~September 30, ------------------- 2000 1999 ---- ---- Net change in cash $ --- $ --- --------- ---------- Cash at beginning of period $ --- $ --- ---------- ---------- Cash at end of period $ --- $ --- ---------- ---------- The accompanying notes are an integral part of these condensed financial statements.

INTERFERON SCIENCES RESEARCH PARTNERS, LTD. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) Note 1. Basis of Presentation The financial information included herein is unaudited. Such information, however, reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of the General Partner necessary for a fair statement of the results for the interim periods. The results for interim periods are not necessarily indicative of results to be expected for the year. Note 2. Related Party Transactions During 1984, the Partnership and Interferon Sciences, Inc. (ISI) entered into several agreements including a Development Contract whereby substantially all of the net proceeds of the 1984 sale of Partnership Units were paid to ISI in periodic payments over the term of the Partnership's development program. Such payments were used to fund research and development and clinical trials necessary for obtaining regulatory approval with respect to a topical formulation containing recombinant alpha interferon for the treatment of herpes genitalis (Alferon(R) Gel). Through 1986, the Partnership paid ISI $4,555,000, under this agreement. Through 1990, the General Partner, Interferon Sciences Development Corporation (ISD), contributed $1,997,000, to the Partnership, which used such funds to pay for additional research and development for the benefit of the Partnership. Beginning in 1992, ISI commenced further development of Alferon Gel using ISI's natural source multi-species alpha interferon (Alferon N Gel) in place of recombinant interferon, however, ISI currently does not plan to continue the development of Alferon N Gel. Note 3. Interferon Sciences Development Corporation and Interferon Sciences,Inc. ISD, the General Partner, is a wholly owned subsidiary of ISI. From September 1986 through October 1990, ISD's total capitalization was used to fund Partnership expenses. ISD was totally dependent upon ISI for capital to be able to fund the Partnership during this period and is totally dependent on ISI for future capital. Beginning in 1992, ISI commenced development of ALFERON N Gel using its own funds. ISI has had continuing losses from operations and has an accumulated deficit which raise substantial doubt about its ability to continue as a going concern and therefore there is substantial doubt about the partnership's ability to continue as a going concern. The Partnership is dependent on the General Partner for on-going financial support to cover incidental costs of retaining the Partnership. Such costs are paid by ISI and, as they are deminimus, are not reflected on the accompanying financial statements. INTERFERON SCIENCES RESEARCH PARTNERS, LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Financial Condition and Liquidity As of September 30, 1986, the Partnership had exhausted all of its available funds for the funding of research and development of Alferon Gel. The General Partner agreed to contribute up to an additional $433,000, under certain conditions, to continue the research. Such amount was based on the number of units sold in the offering. Notwithstanding that commitment, from September 1986 to October 1990, the General Partner contributed $1,997,000 towards the cost of such research. During May 1987, ISI filed a Product License Application with the Food and Drug Administration (FDA) for approval to market Alferon Gel. This filing was supplemented in 1989 with an updated clinical summary and a comprehensive statistical analysis of the completed trials. At a meeting with the FDA in February 1990, the FDA indicated that additional process development and clinical trials would be necessary prior to approval of Alferon Gel. ISI believed, at that time, that the costs to complete the required process development and clinical trials would be substantial, and there could be no assurance that the clinical trials would be successful. As a result of the above events, in March 1992, ISI withdrew its FDA Product License Application for Alferon Gel containing recombinant interferon. The General Partner does not anticipate that the Partnership will receive any revenues in 2000. In addition, the Partnership is not in a position to incur additional expenses since it has exhausted all its available funds. The Partnership is ultimately reliant upon ISI for funding. ISI has had continuing losses from operations and has an accumulated deficit. As a result, the independent auditors' report on ISI's consolidated financial statements as of and for the year ended December 31, 1999 contained an explanatory paragraph indicating that there was substantial doubt about ISI's ability to continue as a going concern. ISI does not presently intend to exploit ALFERON Gel (the Partnership Product). ISI had focused its clinical efforts on ALFERON N Gel, a formulation containing ISI's natural alpha interferon (interferon alfa-n3) which was developed for the topical treatment of viral diseases and cancers affecting the skin and mucosal tissues. A Phase 2 pilot clinical trial utilizing its reformulated ALFERON N Gel has been completed for the treatment of cervical dysplasia. Under the terms of the Partnership Agreement, a royalty may be payable to the Partnership by reason of the commercial exploitation of ALFERON N Gel to the extent that it utilizes any of the Partnership Technology, which royalty will be adjusted based upon the proportional funding contributions to the development of ALFERON N Gel by the Partnership and ISI. ISI currently does not plan to continue the development of ALFERON N GEL. However, if ISI obtains substantial additional financing in the future, or a sponsor can be secured, ISI may exploit ALFERON N Gel for herpes genitalis which may entitle the Partnership to a royalty in respect to a product which competes with the Partnership Product. This royalty will be adjusted based upon the proportional funding contributions to the development of ALFERON N Gel by the Partnership and ISI. Results of Operations The Partnership was inactive during the nine months ended September 30, 2000 and 1999, and has generated no revenue nor incurred any expense during these periods. The Partnership is dependent on the General Partner for on-going financial support to cover incidental costs of retaining the Partnership. INTERFERON SCIENCES RESEARCH PARTNERS, LTD. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27.0 Financial Data Schedule - September 30, 2000. (b) Reports on Form 8-K There were no reports on Form 8-K filed during the three months ended September 30, 2000. INTERFERON SCIENCES RESEARCH PARTNERS, LTD. September 30, 2000 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed in its behalf by the undersigned thereunto duly authorized. Interferon Sciences Research Partners, Ltd., A Limited Partnership (Registrant) By: Interferon Sciences Development Corporation - General Partner DATE: November 14, 2000 By: /s/ Samuel H. Ronel, Ph.D. --------------------------- Samuel H. Ronel, Ph.D. President DATE: November 14, 2000 By: /s/ Donald W. Anderson ----------------------- Donald W. Anderson Controller

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