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 QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002


                     Commission File Number 0-9314


                     ACCESS PHARMACEUTICALS, INC.
          ------------------------------------------------------
          (Exact name of registrant as specified in its charter)


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

             2600 Stemmons Frwy, Suite 176, Dallas, TX 75207
             -----------------------------------------------
                (Address of principal executive offices)

                    Telephone Number  (214) 905-5100

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 requirement for the past 90 days.

Yes  X    No
   -----    -----

Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act).

Yes       No  X
   -----    -----

The number of shares outstanding of each of the issuer's classes of
common stock, as of November 14, 2002 was 13,160,043 shares of common
stock, $0.01 par value per share.


                      Total No. of Pages    18
                                          ------


                    PART I -- FINANCIAL INFORMATION

ITEM 1  FINANCIAL STATEMENTS

The response to this Item is submitted as a separate section of this report.

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

OVERVIEW

We are an emerging pharmaceutical company focused on developing both novel
low development risk product candidates and technologies with longer-term
major product opportunities. We are a Delaware corporation in the
development stage.

Together with our subsidiaries, we have proprietary patents or rights to
six drug delivery technology platforms: synthetic polymer targeted delivery,
vitamin mediated targeted delivery (including oral), bioerodible hydrogel
technology, nanoparticles and nanoparticle networks, Residerm(R) A topical
delivery technology and carbohydrate targeting technology. In addition we
hold patents relating to the use of amlexanox for the treatment of mucosal
and skin disorders.

We use our proprietary technology to develop products and product candidates.
Our patents protect our marketed products, amlexanox 5% paste (marketed under
the trade name Aphthasol(R)) and Zindaclin(R), and our products that are
currently in the development phase, polymer platinate (AP 5280), DACH
platinum (AP 5346), OraDisc(TM) and our mucositis technology.

On July 22, 2002, we acquired from GlaxoSmithKline the patents, trademarks
and technology covering the use of amlexanox for the treatment of mucosal and
skin disorders. The two major components of the acquisition are the US
marketing rights to amlexanox 5% paste which is currently marketed for the
treatment of canker sores under the trademark Aphthasol(R), and the remaining
worldwide marketing rights for this indication which were the subject of a
prior licensing agreement between the companies. Under the terms of the
agreement, we made an initial upfront payment of $750,000, and we will make
additional payments of $250,000 on January 22, 2003, $250,000 on July 22, 2002
and future possible milestone payments based on the commercial success of
amlexanox. The commercial terms of our prior mucositis agreement between
the companies, which granted us worldwide rights for this indication,
will remain in place.

We contract with third party contract research organizations to complete our
large clinical trials and for data management of all of our clinical trials.
Generally, we manage the smaller Phase I and II trials ourselves. Currently,
we have one Phase I and one Phase III trial in process and a Phase I and
Phase III trial planned for early next year.

                                   2

Except for the historical information contained herein, the following
discussions and certain statements in this Form 10-Q are forward-looking
statements that involve risks and uncertainties. In addition to the risks
and uncertainties set forth in this Form 10-Q, other factors could cause
actual results to differ materially, including but not limited to
uncertainties associated with research and development activities,
clinical trials, our ability to raise capital, the integration of acquired
companies and technologies, the timing of regulatory approvals, dependence
on others, collaborations, future cash flow, the timing and receipt of
licensing revenues, the future success of our marketed products, amlexanox
5% paste and Zindaclin(R) and product candidates including the polymer
platinates, and other risks detailed in our reports filed under
the Securities Exchange Act of 1934, as amended, including but not limited
to our Annual Report on Form 10-K for the year ended December 31, 2001.

Since our inception, we have devoted our resources primarily to fund our
research and development programs. We have been unprofitable since inception
and to date have received limited revenues from the sale of products. We
cannot assure you that we will be able to generate sufficient product
revenues to attain profitability on a sustained basis or at all. We may
incur losses for the next several years as we continue to invest in product
research and development, preclinical studies, clinical trials and regulatory
compliance. As of September 30, 2002, our accumulated deficit was $44,958,000,
of which $8,894,000 was the result of the write-off of excess
purchase price.

OTHER DEVELOPMENTS

Our recently created wholly-owned subsidiary, Access Pharmaceuticals Australia
Pty. Limited acquired the targeted therapeutic technology business of Biotech
Australia Pty. Ltd under an Asset Sale Agreement dated February 26, 2002. Under
the terms of the Asset Sale Agreement, Access Pharmaceuticals Australia Pty.
Limited acquired the patents to three targeted therapeutics technologies and
retained the scientific group that has developed this technology. The total
consideration payable by us will be paid in a combination of cash and stock
over a three-year period and is dependent on the achievement of certain
technology milestones. We paid $500,000 at closing and an additional total
of up to $525,000 will be paid over a three-year period. Additionally, up to
$350,000 may be payable by us if events occur that result in certain new
agreements. We also issued as consideration 172,584 shares of our common
stock and warrants to purchase 25,000 shares of our common stock at an
exercise price of $5.00 per share. The stock issued is subject to
restriction and cannot be sold until February 27, 2003.

The three patented targeted therapeutic technologies acquired in this
transaction are:

*  folate conjugates of polymer therapeutics to enhance tumor delivery
by targeting folate receptors which are upregulated in certain tumor types;

*  the use of vitamin B12 to target the transcobalamin II receptor which is
upregulated in numerous diseases including cancer, rheumatoid arthritis and
certain neurological and autoimmune disorders; and

*  oral delivery of a wide variety of molecules, which cannot otherwise be
orally administered, using the active transport mechanism which transports
vitamin B12 into the systemic circulation.

                                   3

In addition, we acquired through the acquisition an internal capability
to perform biological studies which we previously out-sourced. We expect
that this capability will enhance our ability to identify lead compounds
more rapidly and develop the necessary preclinical data for regulatory
filings.

Research Projects, Products and Products in Development

                        ACCESS DRUG PORTFOLIO


                                     Licensing                                 Clinical
Compound                 Originator   Partner    Indication       FDA Filing   Stage(1)
- ------------------------ ---------- ----------- --------------- ------------- ---------
                                                               
Cancer
- ------
Polymer Platinate         Access-         -      Anti-tumor     Development(7)  Phase I
  (AP5280) (2)            U London

Polymer Platinate         Access-         -      Colorectal     Development     Pre-Clinical
  (AP5346) (2)            U London                 cancer

Mucositis technology      Access          -       Mucositis          IND        Phase III

Topical Delivery
- ----------------
Amlexanox (3)             Takeda       Strakan,   Aphthous           NDA        Approved
                                     Esteve, Meda  ulcers
                                       Mipharm
                                    Pharmascience

OraDisc(TM)               Access       Strakan,   Aphthous           IND        Phase III
  Amlexanox (3)                      Esteve, Meda  ulcers
  Biodegradable                        Mipharm
  Polymer Disc                      Pharmascience

Residerm (R) A            Access       Strakan,     Acne             PLA(8)     Approved(9)
  Zinc Clindamycin(4)                 Fujisawa

Vitamin Mediated Delivery
- -------------------------
Oral Delivery System      Access           -       Various         Research     Pre-Clinical

Folate Targeted           Access           -      Anti-tumor       Research     Pre-Clinical
  Therapeutics

Vitamin B12 Targeted      Access           -      Anti-tumor       Research     Pre-Clinical
  Therapeutics

Antiviral
- ---------
Anti viral compound(5)(6)   NIH            -         HIV           Development  Pre-Clinical

Anti viral compound (6)  Rockefeller       -      HTLV type I      Development  Pre-Clinical
                                                    and II


(1)  For more information, see "Government Regulation" in our Annual Report
on Form 10-K for the year ended December 31, 2001.

(2)  Licensed from the School of Pharmacy, The University of London. Subject
to royalty and milestone payments.

(3)  Acquired from GlaxoSmithKline. Amlexanox licensing agreements have
been executed with the following parties for the prevention and treatment
of aphthous ulcers:

                                   4

*  Strakan Limited for UK and Ireland manufacturing and marketing rights.

*  Laboratories Dr. Esteve SA for Spain, Portugal and Greece manufacturing and
   marketing rights.

*  Mipharm SpA for Italy, Switzerland, Turkey and Lebanon manufacturing and
   marketing rights.

*  Meda, AB for Scandinavia, the Baltic states and Iceland marketing rights.

*  Pharmascience Inc. for Canada manufacturing and marketing rights.

(4)  Licensed worldwide manufacturing and marketing rights to Strakan who
sublicensed to Fujisawa GmbH for continental Europe marketing rights.

(5)  Licensed from NIH subject to royalty and milestone payments.

(6)  Licensed from The Rockefeller University subject to royalty and milestone
payments.

(7)  Clinical studies being conducted in Europe prior to an FDA filing.

(8)  United Kingdom equivalent of an NDA.

(9)  Marketing approval received from the Medicines Control Agency in the U.K.
and product launched in March 2002.

LIQUIDITY AND CAPITAL RESOURCES

Working capital as of September 30, 2002 was $9,657,000 representing a decrease
in working capital of $8,862,000 as compared to working capital as of December
31, 2001 of $18,519,000. The decrease in working capital was due to the loss
from operations for the first three quarters of 2002 and payments for the
acquisition of the drug delivery assets of Biotech Australia Pty. Limited and
the purchase of patents, licenses, technology and marketing rights to
Aphthasol(R), amlexanox 5% paste, from GlaxoSmithKline.

Since inception, our expenses have significantly exceeded revenues, resulting
in an accumulated deficit as of September 30, 2002 of $44,958,000. We have
funded our operations primarily through private sales of common stock and
convertible notes. Contract research payments and licensing fees from
corporate alliances and mergers have also provided funding for operations.

We have incurred negative cash flows from operations since inception, and have
expended, and expect to continue to expend in the future, substantial funds to
complete our planned product development efforts. We expect that our existing
capital resources and payments expected to be received under executed license
agreements will be adequate to fund our current level of operations through
June 2004.

Our convertible notes are due in two parts, $8,050,000 is due on September 13,
2005 and $5,500,000 is due on September 13, 2006. The notes bear interest at
7.7% per annum with $1,041,000 of interest due annually on September 13th.
The notes have a fixed conversion price of $5.50 per share of common stock
and may be converted by the note holder or us under certain circumstances
as defined in the note. If the notes are not converted we will ha e to repay
the notes on the due dates.

We will expend substantial funds to conduct research and development programs,
preclinical studies and clinical trials of potential products, including
research and development with respect to our newly acquired technology and
those technologies we have developed. Our success, future capital
requirements and adequacy of available funds will depend on many factors,
including:

                                   5

*  the successful commercialization of amlexanox and Zindaclin(R);

*  the ability to establish and maintain collaborative arrangements with
   corporate partners for the research, development and commercialization
   of products;

*  the successful integration of our newly created subsidiary, Access
   Pharmaceuticals Australia Pty. Limited;

*  continued scientific progress in our research and development programs;

*  the magnitude, scope and results of preclinical testing and clinical trials;

*  the costs involved in filing, prosecuting and enforcing patent claims;

*  competing technological developments;

*  the cost of manufacturing and scale-up;

*  the ability to establish and maintain effective commercialization
   arrangements and activities; and

*  successful regulatory filings.

THIRD QUARTER 2002 COMPARED TO THIRD QUARTER 2001

Revenue in the third quarter of 2002 was $91,000, as compared to $11,000 in
the same period of 2001. We recognized revenue in both of the third quarters
from several licensing agreements that we are a party to for various
amlexanox projects. We also recognized $89,000 of revenue from a research
and development agreement. A comparable amount of expenses was also recorded.

Total research spending for the third quarter of 2002 was $2,181,000, as
compared to $1,295,000 for the corresponding period in 2001, an increase
of $886,000. The increase in expenses was the result of increases in the
following costs:

*  higher development costs of our OraDisc(TM) project ($700,000);

*  costs associated with our Australian subsidiary which we established in
   February 2002 ($145,000);

*  development costs associated with our bioerodible hydrogel and nanoparticles
   and nanoparticle networks technologies ($136,000); and

*  other net increases ($77,000).

The increase in expenses was partially offset by lower development costs
($172,000) for other amlexanox projects that were completed in 2001.

Research and development expenses included in the above projects reflected
increases in the following areas:

*  clinical development expenses ($481,000);

*  our Australian subsidiary ($145,000);

*  salaries ($137,000);

*  external development costs ($108,000); and

                                   6

*  other net increases ($15,000).

We expect research spending to remain higher than it has been in prior
quarters as we intend to hire additional scientific and staff, commence
additional clinical trials and accelerate preclinical development activities
as we continue to develop our product candidates.

Total general and administrative expenses were $449,000 for the third quarter
of 2002, a decrease of $8,000 as compared to the corresponding period in 2001.
The decrease in general and administrative expenses was due primarily to:

*  lower hiring expenses ($30,000);

*  lower shareholder expenses ($15,000); and

*  other net decreases ($23,000).

These decreases in general and administrative expenses were partially offset
by $60,000 in higher patent costs, due to new patent filings and the costs
associated with the acquired patents.

Depreciation and amortization was $136,000 for the third quarter of 2002 as
compared to $103,000 for the corresponding period in 2001 reflecting an
increase of $33,000 in overall expenses for the period. The increase in
depreciation and amortization is due to increased depreciation resulting
from additional capital assets and increased amortization due to patents
acquired in the Biotech Australia Pty. Limited transaction and patents
acquired from GlaxoSmithKline, offset by $61,500 in goodwill not being
amortized in 2002.

We adopted Financial Accounting Standard No. 142, "Goodwill and Other
Intangible Assets", in January 2002. Annual and quarterly goodwill
amortization of $246,000 and $61,500, respectively, will no longer be
recognized. In June 2002, we completed a transitional fair value based
impairment test of goodwill and no impairment losses resulted from the
impairment test. We will continue to test goodwill annually and when any
event occurs that may warrant a new test.

Total operating expenses in the third quarter of 2002 were $2,766,000 as
compared to total operating expenses of $1,855,000 for the corresponding
period in 2001.

Loss from operations in the third quarter of 2002 was $2,675,000 as compared
to a loss of $1,844,000 for the corresponding period in 2001.

Interest and miscellaneous income was $132,000 for the third quarter of 2002
as compared to $386,000 for the corresponding period in 2001, a decrease
$254,000. The decrease in interest income was due to lower cash balances
and lower interest rates in 2002 as compared to 2001.

Interest expense was $315,000 for the third quarter of 2002 as compared to
$286,000 for the corresponding period in 2001, an increase of $29,000. The
increase in interest expense was due to higher interest accrued on the $13.5
million convertible notes and the note payable ($495,000) we entered into in
September 2001.

Net loss in the third quarter of 2002 was $2,858,000, or a $0.22 basic and
diluted loss per common share, compared with a loss of $1,744,000, or a $0.13
basic and diluted loss per common share for

                                   7

the corresponding period in 2001.

NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO NINE MONTHS
ENDED SEPTEMBER 30, 2001

Revenue in the first nine months of 2002 was $470,000, as compared to $232,000
in the corresponding period of 2001. We recognized upfront licensing fees for
the exclusive marketing rights for Zindaclin(R) for continental Europe which
was granted in May 2002. Also, we recognized revenue in each of the first
nine month periods from several licensing agreements that we are a party to
for various amlexanox projects. We also recognized $89,000 revenue from a
research and development agreement. A comparable amount of expenses was also
recorded during this period.

Total research spending for the first nine months of 2002 was $5,215,000, as
compared to $3,330,000 for the corresponding period in 2001, an increase of
$1,885,000. The increase in expenses was the result of increases in the
following costs:

*  higher development costs for our OraDisc(TM) ($1,369,000) program and our
   polymer platinate programs ($689,000);

*  costs associated with our Australian subsidiary which we established in
   February 2002 ($234,000); and

*  other net increases ($8,000).

The increase in expenses was partially offset by lower net development costs
for other amlexanox projects ($415,000) that were completed in 2001.

Research and development expenses included in the above projects reflected
increases in the following areas:

*  external development costs ($846,000);

*  clinical development expenses ($460,000);

*  salaries ($443,000);

*  our Australian subsidiary ($234,000); and

*  other net increases ($75,000).

These expenses were partially offset by lower scientific consulting expenses
in the nine months ended September 30, 2002 ($173,000).

Total general and administrative expenses were $1,519,000 for the first nine
months of 2002, an increase of $163,000 as compared to the corresponding
period in 2001. The increase in general and administrative expenses was due
primarily to the following:

*  higher compensation expenses ($128,000) principally due to the hiring of
   additional staff;

*  higher rent ($69,000);

*  higher professional fees ($27,000);

*  higher equipment rental ($21,000); and

*  other net increases ($27,000).

                                   8

These general and administrative expense increases were partially offset by:

*  lower other employee costs ($59,000); and

*  lower royalties ($50,000).

Depreciation and amortization was $292,000 for the first nine months of 2002
as compared to $304,000 for the corresponding period in 2001. The decrease in
amortization was due to goodwill not being amortized in 2002 ($185,000),
partially offset by an increase in depreciation due to additional capital
 assets and amortization of patents acquired in the Biotech Australia Pty.
Limited transaction and from GlaxoSmithKline.

Total operating expenses in the first nine months of 2002 were $7,026,000 as
compared to total operating expenses of $4,990,000 for the corresponding
period in 2001.

Loss from operations in the first nine months of 2002 was $6,556,000 as
compared to a loss of $4,758,000 for the corresponding period in 2001.

Interest and miscellaneous income was $473,000 for the first nine months of
2002 as compared to $1,178,000 for the corresponding period in 2001, a
decrease of $705,000. The decrease in interest income was due to lower cash
balances and lower interest rates in 2002 as compared with 2001.

Interest expense was $949,000 for the first nine months of 2002 as compared
to $852,000 for the corresponding period in 2001, an increase of $97,000. The
increase in interest expense was due to higher interest accrued on the $13.5
million convertible notes and the note payable ($495,000) we entered into in
September 2001.

Net loss in the first nine months of 2002 was $7,032,000, or a $0.54 basic and
diluted loss per common share, compared with a loss of $4,432,000, or a $0.34
basic and diluted loss per common share for the corresponding period in 2001.

ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our market risks at September 30, 2002, have not changed significantly from
those discussed in Item 7(a) of our Form 10-K for the year ended December 31,
2001, on file with the Securities and Exchange Commission.

ITEM 4  CONTROLS AND PROCEDURES

(a) Evaluation Of Disclosure Controls And Procedures:   Within the 90 days
prior to the date of this report, we carried out an evaluation, under the
supervision and with the participation of the our management, including our
Chief Executive Officer and Chief Financial Officer, of the effectiveness of
the design and operation of our disclosure controls and procedures pursuant
to Exchange Act Rule 13a-14. Based upon that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that our disclosure controls
and procedures are effective in timely alerting them to material information
relating to us (including our subsidiaries) required to be

                                   9

included in our periodic Securities and Exchange Commission filings.

(b) Changes In Internal Controls:  There were no significant changes in our
internal controls or to our knowledge, in other factors that could
significantly affect such internal controls subsequent to the date of their
evaluation.


                     PART II -- OTHER INFORMATION

ITEM 1  LEGAL PROCEEDINGS

The Company is not a party to any material legal proceedings.

ITEM 2  CHANGES IN SECURITIES

None.

ITEM 3  DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5  OTHER INFORMATION

None

ITEM 6  EXHIBITS AND REPORTS ON FORM 8-K

Exhibits:  10.27 Asset Sale Agreement between Block Drug Company, Inc. and
           us dated July 22, 2002. (Confidential Treatment Requested)

Reports on Form 8-K:  None

                                   10

                              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.



                              ACCESS PHARMACEUTICALS, INC.


Date: November 14, 2002       By: /s/ Kerry P. Gray
                                 -------------------------
                                 Kerry P. Gray
                                 President and Chief Executive Officer

Date: November 14, 2002       By: /s/ Stephen B. Thompson
                                 -------------------------
                                 Stephen B. Thompson
                                 Vice President and Chief Financial Officer


                                   11

                            CERTIFICATIONS

I, Kerry P. Gray, the President and Chief Executive Officer of Access
Pharmaceuticals, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of
   Access Pharmaceuticals, Inc.;

2. Based on my knowledge, this quarterly report on 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 periods 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 audit
   committee of the 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 weakness 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.

Date: November 13, 2002

/s/ Kerry P. Gray
- -----------------
Kerry P. Gray
President and Chief Executive Officer

                                  12

                            CERTIFICATIONS

I, Stephen B. Thompson, the Chief Financial Officer of Access Pharmaceuticals,
Inc. certify that:

1. I have reviewed this quarterly report on Form 10-Q of Access
   Pharmaceuticals, 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 periods 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 14d-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 weakness 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.

Date: November 13, 2002

/s/ Stephen B. Thompson
- -----------------------
Stephen B. Thompson
Chief Financial Officer

                                  13

             Access Pharmaceuticals, Inc. and Subsidiaries
                      (a development stage company)

                  Condensed Consolidated Balance Sheets



     ASSETS                              September 30, 2002  December 31, 2001
                                           --------------      --------------
                                            (unaudited)
                                                        
Current assets
 Cash and cash equivalents                 $  1,845,000        $  7,426,000
 Short term investments, at cost              9,800,000          12,700,000
 Accounts receivable                            136,000              83,000
 Accrued interest receivable                     90,000             110,000
 Prepaid expenses and other current assets      782,000             611,000
                                           --------------      --------------
                                             12,653,000          20,930,000

Property and equipment, net                     763,000             477,000

Debt issuance costs, net                        542,000             679,000

Patents, net                                  2,859,000                   -

Licenses, net                                   690,000             774,000

Goodwill, net                                 1,868,000           1,868,000

Other assets                                    656,000             759,000
                                           --------------      --------------
Total assets                               $ 20,031,000        $ 25,487,000
                                           ==============      ==============

 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
 Accounts payable and accrued expenses     $  1,655,000        $  1,486,000
 Accrued interest payable                        49,000             310,000
 Deferred revenues                              476,000             508,000
 Current portion of note payable and
   future obligations                           816,000             107,000
                                           --------------      --------------
          Total current liabilities           2,996,000           2,411,000

Long-term obligations for
   purchased patents                            303,000                   -
Note payable, net of current portion            383,000             468,000
Convertible notes                            13,530,000          13,530,000
                                           --------------      --------------
          Total liabilities                  17,212,000          16,409,000
                                           --------------      --------------

Commitments and contingencies                         -                   -

Stockholders' equity
 Preferred stock - $.01 par value;
   authorized 2,000,000 shares;
   none issued or outstanding                         -                   -
 Common stock - $.01 par value;
   authorized 50,000,000 shares;
   issued, 13,160,043 at September 30, 2002
   and 12,909,344 at December 31, 2001          132,000             132,000
 Additional paid-in capital                  48,992,000          48,057,000
 Notes receivable from stockholders          (1,045,000)         (1,045,000)
 Unamortized value of restricted stock
   grants                                      (298,000)           (154,000)
 Treasury stock, at cost - 819 shares            (4,000)             (4,000)
 Other comprehensive loss                       (18,000)                  -
 Deficit accumulated during the
   development stage                        (44,940,000)        (37,908,000)
                                           --------------      --------------
        Total stockholders' equity            2,819,000           9,078,000
                                           --------------      --------------

Total liabilities and
   stockholders' equity                    $ 20,031,000        $ 25,487,000
                                           ==============      =============

       The accompanying notes are an integral part of these statements.

                                   14

             Access Pharmaceuticals, Inc. and Subsidiaries
                        (a development stage company)

             Condensed Consolidated Statements of Operations
                              (unaudited)


                                                                                          February 24,
                                     Three months ended           Nine months ended           1988
                                        September 30,               September 30,        (inception) to
                                  --------------------------  --------------------------
                                      2002          2001          2002          2001     September 30, 2002
                                  ------------  ------------  ------------  ------------  -------------
                                                                          
Revenues
Research and development          $    89,000   $         -   $    89,000   $         -   $  2,800,000
Option income                               -             -             -             -      2,164,000
Licensing revenues                      2,000        11,000       381,000       232,000      1,056,000
                                  ------------  ------------  ------------  ------------  -------------
Total revenues                         91,000        11,000       470,000       232,000      6,020,000

Expenses
Research and development            2,181,000     1,295,000     5,215,000     3,330,000     25,369,000
General and administrative            449,000       457,000     1,519,000     1,356,000     15,139,000
Depreciation and amortization         136,000       103,000       292,000       304,000      2,686,000
Write-off of excess purchase price          -             -             -             -      8,894,000
                                  ------------  ------------  ------------  ------------  -------------
Total expenses                      2,766,000     1,855,000     7,026,000     4,990,000     52,088,000
                                  ------------  ------------  ------------  ------------  -------------
Loss from operations               (2,675,000)   (1,844,000)   (6,556,000)   (4,758,000)   (46,068,000)

Other income (expense)
Interest and miscellaneous income     132,000       386,000       473,000     1,178,000      3,781,000
Interest and debt expense            (315,000)     (286,000)     (949,000)     (852,000)    (2,653,000)
                                  ------------  ------------  ------------  ------------  -------------
                                     (183,000)      100,000      (476,000)      326,000      1,128,000
                                  ------------  ------------  ------------  ------------  -------------
Net loss                          $(2,858,000)  $(1,744,000)  $(7,032,000)  $(4,432,000)  $(44,940,000)
                                  ============  ============  ============  ============  =============

Basic and diluted loss per
  common share                         $(0.22)       $(0.13)       $(0.54)       $(0.34)
                                  ============  ============  ============  ============

Weighted average basic and diluted
  common shares outstanding        13,160,043    12,860,114    13,085,505    12,854,170
                                  ============  ============  ============  ============


Net loss                          $(2,858,000)  $(1,744,000)  $(7,032,000)  $(4,432,000)
Other comprehensive loss
  Foreign currency translation
  adjustment                          (18,000)            -       (18,000)            -
                                  ------------  ------------  ------------  ------------
Comprehensive loss                $(2,876,000)  $(1,744,000)  $(7,050,000)  $(4,432,000)
                                  ============  ============  ============  ============


        The accompanying notes are an integral part of these statements.

                                   15

              Access Pharmaceuticals, Inc. and Subsidiaries
                     (a development stage company)

              Condensed Consolidated Statements of Cash Flows
                              (unaudited)


                                                                      February 24,
                                      Nine months ended September 30,      1988
                                        ----------------------------    (inception) to
                                              2002          2001     September 30, 2002
                                          ------------  ------------  --------------
                                                             
Cash flows form operating activities:
Net loss                                  $(7,032,000)  $(4,432,000)  $(44,940,000)
 Adjustments to reconcile net loss to
 cash used in operating activities:
  Write-off of excess purchase price                -             -      8,894,000
  Warrants issued in payment of
    consulting expenses                        37,000        41,000      1,007,000
  Research expenses related to
    common stock granted                            -             -        100,000
  Amortization of restricted
    stock grants                               46,000             -         73,000
  Depreciation and amortization               292,000       304,000      2,686,000
  Amortization of debt costs                  137,000       137,000        373,000
  Deferred revenue                            (32,000)      (32,000)       366,000
  Other long-term obligations                  29,000             -         29,000
  Change in operating assets and
      liabilities:
    Accounts receivable                       (53,000)       55,000       (137,000)
    Accrued interest receivable                20,000        65,000        (90,000)
    Prepaid expenses and
      other current assets                   (171,000)       44,000       (783,000)
    Licenses                                        -             -       (525,000)
    Other assets                              103,000        (1,000)        96,000
    Accounts payable and
      accrued expenses                        169,000       (47,000)       893,000
    Accrued interest payable                 (261,000)     (234,000)        49,000
                                          ------------  ------------  -------------
Net cash used in operating activities      (6,716,000)   (4,100,000)   (31,909,000)
                                          ------------  ------------  -------------

Cash flows from investing activities:
 Capital expenditures                        (387,000)     (317,000)    (2,051,000)
 Sales of capital equipment                         -             -         15,000
 Purchases (redemptions) of short term
   investments and certificates
   of deposit, net                          2,900,000     4,094,000    (10,400,000)
 Purchase of businesses, net of
   cash acquired                           (1,312,000)            -     (1,538,000)
 Other investing activities                   (18,000)            -       (168,000)
                                          ------------  ------------  -------------
Net cash provided by (used in)
  investing activities                      1,183,000     3,777,000    (14,142,000)
                                          ------------  ------------  -------------

Cash flows from financing activities:
 Proceeds from notes payable
   and obligations                                  -       600,000      1,321,000
 Payments of notes payable                    (80,000)            -       (855,000)
 Purchase of treasury stock                         -             -       (754,000)
 Cash acquired in merger with Chemex                -             -      1,587,000
 Notes receivable from shareholders                 -             -     (1,045,000)
 Proceeds from convertible note, net                -             -     12,615,000
 Proceeds from stock issuances, net            32,000        31,000     35,027,000
                                          ------------  ------------  -------------
Net cash provided by (used in)
  financing activities                        (48,000)      631,000     47,896,000
                                          ------------  ------------  -------------
Net increase (decrease) in cash
  and cash equivalents                     (5,581,000)      308,000      1,845,000

Cash and cash equivalents at
  beginning of period                       7,426,000     8,415,000              -
                                          ------------  ------------  -------------
Cash and cash equivalents at
  end of period                            $1,845,000    $8,723,000     $1,845,000
                                          ============  ============  =============

          The accompanying notes are an integral part of these statements.

                                   16

            Access Pharmaceuticals, Inc. and Subsidiaries
                   (a development stage company)

              Notes to Condensed Consolidated Financial Statements
                 Nine Months Ended September 30, 2002 and 2001
                              (unaudited)

(1)  Interim Financial Statements

The condensed consolidated balance sheets as of September 30, 2002, the
condensed consolidated statements of operations for the three and nine months
ended September 30, 2002 and 2001, and the condensed consolidated statements
of cash flows for the nine months ended September 30, 2002 and 2001 were
prepared by management without audit. In the opinion of management, all
adjustments, consisting only of normal recurring adjustments, except as
otherwise disclosed, necessary for the fair presentation of the financial
position, results of operations, and changes in financial position for such
periods, have been made.

Certain amounts have been reclassified to conform with current period
classification.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
financial statements be read in conjunction with the financial statements and
notes thereto included in our Annual Report on Form 10-K for the year ended
December 31, 2001. The results of operations for the period ended September
30, 2002 are not necessarily indicative of the operating results which may be
expected for a full year. The consolidated balance sheet as of December 31,
2001 contains financial information taken from the audited financial
statements as of that date.

(2)  Acquisitions

Our recently created wholly-owned subsidiary, Access Pharmaceuticals
Australia Pty. Limited acquired the targeted therapeutic technology business
of Biotech Australia Pty. Ltd under an Asset Sale Agreement dated February
26, 2002. Under the terms of the Asset Sale Agreement, Access Pharmaceuticals
Australia Pty. Limited acquired the patents to three targeted therapeutics
technologies and retained the scientific group that has developed this
technology. The total consideration payable by us will be paid in a
combination of cash and stock over a three-year period and is dependent on
the achievement of certain technology milestones. We paid $500,000 at closing
and an additional total of up to $525,000 will be paid over a three-year
period. Additionally up to $350,000 may be payable if events occur that
result in certain new agreements. We also issued as consideration 172,584
shares of our common stock (valued at $633,000) and warrants to purchase
25,000 shares of our common stock at an exercise price of $5.00 per share
(valued at $43,000 using Black-Scholes option pricing model). The stock
issued is subject to restriction and cannot be sold until February 27, 2003.

The three patented targeted therapeutic technologies acquired in this
transaction are:

                                   17

2)  Acquisition - continued

*  folate conjugates of polymer therapeutics to enhance tumor delivery
   by targeting folate receptors which are upregulated in certain tumor types;

*  the use of vitamin B12 to target the transcobalamin II receptor which
   is upregulated in numerous diseases including cancer, rheumatoid
   arthritis and certain neurological and autoimmune disorders; and

*  oral delivery of a wide variety of molecules, which cannot otherwise
   be orally administered, using the active transport mechanism which
   transports vitamin B12 into the systemic circulation.

The cost of the acquisition has been assigned to patents and will be
amortized over the useful life of the patents.

On July 22, 2002, we acquired from GlaxoSmithKline the patents,
trademarks and technology covering the use of amlexanox for the treatment of
mucosal and skin disorders. The two major components of the acquisition are
the US marketing rights to amlexanox 5% paste which is currently marketed for
the treatment of canker sores under the trademark Aphthasol(R), and the
remaining worldwide marketing rights for this indication which were the
subject of a prior licensing agreement between the companies. Under the terms
of the agreement, we made an initial upfront payment of $750,000, and
we will make additional payments of $250,000 on January 22, 2003 and
$250,000 on July 22, 2003 and future possible milestone payments based on
the commercial success of amlexanox. The commercial terms of our prior
mucositis agreement between the companies, which granted us worldwide rights
for this indication, will remain in place.

(3)  New Accounting Pronouncements

Effective January 1, 2002, we adopted Statement of Financial Accounting
Standards (SFAS) No. 141, Business Combinations, SFAS No. 142, Goodwill and
Intangible Assets, and SFAS No. 144, Accounting for Impairment or Disposal
of Long-Lived Assets.

SFAS No. 141 and SFAS No. 142
- -----------------------------
Major provisions of these statements and their effective dates are as follows:

*  intangible assets acquired in a business combination must be recorded
   separately from goodwill if they arise from contractual or other legal
   rights and are separable from the acquired entity and can be sold
   transferred, licensed, rented or exchanged, either individually or as
   part of a related contract, asset or liability;

*  effective January 1, 2002, all previously recognized goodwill and
   intangible assets with indefinite lives will no longer be subject to
   amortization;

                                   18

(3)  New Accounting Pronouncements - continued

*  effective January 1, 2002, goodwill and intangible assets with indefinite
lives will be tested for impairment annually or whenever there is an
impairment indicator; and

*  all acquired goodwill must be assigned to reporting units for purposes of
impairment testing and segment reporting.

We amortized goodwill assets acquired prior to July 1, 2001 until December
31, 2001. Beginning January 1, 2002, quarterly and annual goodwill
amortization is no longer recognized. In June 2002, we completed a
transitional fair value based impairment test of goodwill and no impairment
losses resulted from the impairment test. We will continue to test annually
and when any event occurs that may warrant a new test.


Intangible assets consist of the following (in thousands):




                                    September 30, 2002      December 31, 2001
                                 ----------------------- -----------------------
                                   Gross                   Gross
                                  carrying   Accumulated  carrying   Accumulated
                                   value    amortization   value    amortization
                                 ----------- ----------- ----------- -----------
                                                         
Amortizable intangible assets
  Patents                         $  2,966         107    $      -           -
  Licenses                           1,130         440       1,130         356
                                 ----------- ----------- ----------- -----------
    Total                         $  4,096         547       1,130         356
                                 =========== =========== =========== ===========

Intangible assets not subject to
  amortization

Goodwill                          $  2,464         596    $  2,464         596
                                 ----------- ----------- ----------- -----------
Total intangible assets not
  subject to amortization            2,464         596    $  2,464         596
                                 =========== =========== =========== ===========


                                   19


(3)  New Accounting Pronouncements - continued

Amortization expense related to intangible assets totaled $52,000 and
$90,000 during the three months ended and $109,000 and $270,000 during the
nine months ended September 30, 2002 and 2001, respectively. The aggregate
estimated amortization expense for intangible assets remaining as of
September 30, 2002 is as follows (in thousands):

         Remainder of 2002                         $          103
         2003                                                 412
         2004                                                 412
         2005                                                 412
         2006                                                 412
         Thereafter                                         1,798

         Total                                     $        3,549

Net loss and loss per share for the three and nine months ended September
30, 2002 and 2001, adjusted to exclude amortization expense, is as follows:



                                   Three months              Three months
                                ended September 30,       ended September 30,
                             ------------------------- -------------------------
                                 2002         2001         2002         2001
                             ------------ ------------ ------------ ------------
                                                        
Net loss
 Reported net loss allocable
  to common stockholders      $  (2,876)    $ (1,744)    $ (7,050)    $ (4,432)
Goodwill amortization                 -           62            -          185
                             ------------ ------------ ------------ ------------
Adjusted net loss allocable
  to common stockholders      $  (2,876)    $ (1,682)    $ (7,050)    $ (4,247)
                             ============ ============ ============ ============

Basic and diluted loss per share
 Reported basic and diluted
   loss per share             $    (.22)    $   (.13)    $   (.54)    $   (.34)
Goodwill amortization                 -            -            -          .01
                             ------------ ------------ ------------ ------------
Adjusted basic and diluted
  loss per share              $    (.22)    $   (.13)    $   (.54)    $   (.33)
                             ============ ============ ============ ============



SFAS No. 144

SFAS No. 144 addresses financial accounting and reporting for the impairment
or disposal of long-lived assets. The implementation of this standard did not
have an effect on our financial position, results of operations, or cash
flows.