SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
                       -----------------------------------


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1999


                           Commission File No. 0-15360


                        BIOJECT MEDICAL TECHNOLOGIES INC.
             (Exact name of registrant as specified in its charter)



               Oregon                                  93-1099680
- --------------------------------------         -----------------------------
   (Jurisdiction of incorporation)              (I.R.S. identification no.)

       7620 SW Bridgeport Road
          Portland, Oregon                                97224
- --------------------------------------         -----------------------------
(Address of principal executive offices)               (Zip code)


                                 (503) 639-7221
             -------------------------------------------------------
              (Registrant's telephone number, including areas 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 [ ]

     At June 30, 1999 there were 29,011,236  outstanding  shares of common stock
of the registrant.





PART I
FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The following  unaudited  consolidated  financial  statements of Bioject Medical
Technologies  Inc.  (BMTI),  an  Oregon   Corporation,   and  its  subsidiaries,
(together,  unless the context  otherwise  requires,  the  "Company")  have been
prepared  pursuant to the rules and  regulations  of the Securities and Exchange
Commission.  The Company's needle-free operations are conducted by Bioject Inc.,
an Oregon corporation, which is a wholly owned subsidiary of BMTI. The Company's
blood  glucose  monitoring   development   operations,   shown  as  Discontinued
Operations  in the  following  financial  statements,  have  been  conducted  by
Marathon Medical Technologies Inc. ("Marathon")  (formerly Bioject JV Subsidiary
Inc.),  an Oregon  corporation and an 80.1% owned  (wholly-owned  as of June 30,
1999) subsidiary of BMTI.

The following 10-Q report reflects the consolidated results of operations,  cash
flows and financial  position for the first quarter of the year ending March 31,
2000.  The  results  of  operations  for  interim  periods  are not  necessarily
indicative of the results to be expected for the year.

     -    Consolidated Statements of Operations for the quarters ended
          June 30, 1999 and June 30, 1998

     -    Consolidated Balance Sheets dated June 30, 1999 and March 31, 1999

     -    Consolidated Statements of Cash Flows for the quarters ended
          June 30, 1999 and June 30, 1998






         BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS


                                                   Three Months Ended
                                                        June 30,
                                                   1999           1998
                                                       (Unaudited)
                                               -------------------------
REVENUES:
     Net sales of products                       $ 112,682     $ 142,411
     Licensing/technology fees                     100,000       138,001
                                               -----------     ---------
                                                   212,682       280,412
                                               -----------   -----------
OPERATING EXPENSES:
     Manufacturing                                 361,445       271,014
     Research and development                      253,784       244,586
     Selling, general and administrative           601,600       608,630
                                               -----------   -----------
     Total operating expenses                    1,216,829     1,124,230
                                               -----------   -----------
     Operating loss                             (1,004,147)     (843,818)
       Other income                                 16,967        22,712
                                               -----------    ----------
     Loss from continuing operations
        before taxes                              (987,180)     (821,106)
     Provision for income taxes                         --            --
                                               -----------   -----------
     Loss from continuing operations
       before preferred stock dividend            (987,180)     (821,106)

     Preferred stock dividend                     (374,836)     (346,350)
                                               -----------   -----------
Loss from continuing operations
    allocable to common shareholders            (1,362,016)   (1,167,456)

Loss from discontinued operations
    allocable to common shareholders              (449,786)     (985,649)

Gain on sale of discontinued operations          2,852,666            --
                                               -----------   -----------
Net income/(loss) allocable to
    common shareholders                         $1,040,864   ($2,153,105)
                                               ===========   ===========
Net income/(loss) per common share
    Basic                                             0.04        ($0.08)
                                               ===========   ===========
    Diluted                                           0.04        ($0.08)
                                               ===========   ===========
Shares used in per share calculation            29,011,236    26,912,231
                                               ===========   ===========


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.






        BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
                 CONSOLIDATED BALANCE SHEETS

                                                    June 30,        March 31,
                                                      1999            1999
                                                           (Unaudited)
                                                   --------------------------
ASSETS
- ------------------------------------------
CURRENT ASSETS:
     Cash and cash equivalents                     $ 1,368,900    $ 1,274,311
     Accounts receivable, net                          127,619        305,064
     Stock subscription receivable                          --      2,400,000
     Inventories                                     1,212,941      1,251,186
     Other current assets                               61,726         53,599
     Current assets of discontinued operations       4,018,000        597,000
                                                     ---------    -----------
   Total current assets                              6,789,186      5,881,160

PROPERTY AND EQUIPMENT, at cost:
     Machinery and equipment                         2,187,774      2,235,733
     Production molds                                2,154,446      2,051,697
     Furniture and fixtures                            179,376        170,436
     Leasehold improvements                             94,115         94,115
                                                   -----------    -----------
                                                     4,615,711      4,551,981
     Less - Accumulated depreciation                (2,791,405)    (2,615,536)
                                                    -----------    -----------
                                                     1,824,306      1,936,445

OTHER ASSETS                                           539,769        535,092
NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS               --        238,583
                                                   -----------    -----------
                                                   $ 9,153,261    $ 8,591,280
                                                   ===========    ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- --------------------------------------------
CURRENT LIABILITIES:
     Accounts payable                              $   257,109    $   190,676
     Accrued payroll                                   135,507        135,445
     Other accrued liabilities                          44,524         54,388
     Current liabilities of
        discontinued operations                      1,552,553      2,462,906
                                                   -----------    -----------
   Total current liabilities                         1,989,693      2,843,415


SHAREHOLDERS' EQUITY:
Preferred stock, no par, 10,000,000 shares
     authorized; issued and outstanding
     Series A Convertible - 692,694 shares,
       $15 stated value                             11,515,852      9,163,025
     Series B Convertible - 134,333 shares,
       $15 stated value                                     --      1,566,762
     Series C Convertible - 391,830 shares,
        No stated value                              2,400,000      2,400,000
     Common stock, no par, 100,000,000
       shares authorized; issued and
       outstanding 29 011,236 shares at
       June 30, 1999 and 29,011,236 at
       March 31, 1999                               50,182,885     50,594,111
     Accumulated deficit                           (56,935,169)   (57,976,033)
                                                   -----------    -----------
   Total shareholders' equity                        7,163,568      5,747,865
                                                   -----------    -----------
                                                   $ 9,153,261    $ 8,591,280
                                                   ===========    ===========

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.






         BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                          Three Months Ended
                                                              June 30,
                                                         1999           1998
                                                             (Unaudited)
                                                     --------------------------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss) applicable to common to
       shareholders                                 $1,040,864    ($2,153,105)

   Adjustments to reconcile net income (loss)
       to net cash used in  operating
       activities from continuing operations:
     Net loss from discontinued operations             449,786        985,649
     Gain on sale of discontinued operations        (2,852,666)            --
     Depreciation and amortization                     185,610        167,732
     Contributed capital for services                       --         13,818
     Preferred stock dividends                         374,836        346,350
   Net changes in assets and liabilities:
     Accounts receivable                               177,445         59,815
     Inventories                                        38,245       (177,864)
     Other current assets                               (8,127)        (7,747)
     Accounts payable                                   66,434        (73,173)
     Accrued payroll                                        62        (16,661)
     Other accrued liabilities                          (9,862)       (56,080)
     Deferred revenue                                       --        114,999
                                                   ------------    -----------
   Net cash used in operating activities
     of continuing operations                         (537,373)      (796,260)
   Net cash used in operating activities
     of discontinued operations                     (1,415,177)      (206,536)
                                                   ------------    -----------
   Net cash  used in operating activities           (1,952,550)    (1,002,796)
                                                   ------------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of Marathon Stock                         (331,456)            --
   Capital expenditures of
     continuing operations                              (6,987)       (18,591)
   Capital expenditures of
     discontinued operations                                --       (128,353)
   Other assets                                        (14,418)      ( 22,175)
                                                   ------------    -----------
   Net cash used in investing activities              (352,861)      (169,119)
                                                   ------------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash proceeds from common stock                          --      1,849,865
   Cash proceeds from the sale of Series C
     preferred stock                                 2,400,000             --
                                                   ------------    -----------
   Net cash provided by financing activities:        2,400,000      1,849,865
                                                   ------------    -----------

CASH AND CASH EQUIVALENTS:
   Net increase in cash and
     cash equivalents                                   94,589        677,950
   Cash and cash equivalents at beginning
     of period                                       1,274,311      1,900,839
                                                   ------------    -----------
   Cash and cash equivalents at end
     of period                                     $ 1,368,900    $ 2,578,789
                                                   ============    ===========

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.





               BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   THE COMPANY

The consolidated  financial statements of Bioject Medical Technologies Inc. (the
"Company"),  include the accounts of Bioject Medical Technologies Inc. ("BMTI"),
an Oregon Corporation, and its wholly owned subsidiary,  Bioject Inc., an Oregon
Corporation  ("Bioject"),  and its wholly  owned  subsidiary,  Marathon  Medical
Technologies,  ("Marathon")  (formerly  Bioject JV Subsidiary  Inc.),  an Oregon
corporation.  All significant  intercompany  transactions  have been eliminated.
Although Bioject Inc. commenced  operations in 1985, BMTI was formed in December
1992 for the purpose of acquiring  all of the capital  stock of Bioject  Medical
Systems Ltd., a Company organized under the laws of British Columbia, Canada, in
a stock-for-stock  exchange in order to establish a U.S. domestic corporation as
the publicly  traded parent company for Bioject Inc. and Bioject Medical Systems
Ltd.  Bioject  Medical  Systems Ltd.  was  terminated  in fiscal 1997.  Marathon
Medical  Technologies  Inc. was formed in October 1997.  At that time,  Marathon
acquired the license to certain continuous blood glucose  monitoring  technology
from  Elan  Corporation,   plc.  ("Elan")  and  entered  into  a  joint  venture
arrangement with Elan to develop and commercialize the blood glucose  monitoring
technology.  On June 30, 1999, Marathon completed the sale of its license to the
blood glucose monitoring technology. In connection with the sale of the license,
BMTI  acquired  Elan's 19.9%  ownership of the stock of Marathon.  BMTI now owns
100% of Marathon's  stock.  Marathon's  operations are reported as "Discontinued
Operations" in the financial statements and other financial information included
as a part of this report.  All references to the Company include Bioject Medical
Technologies Inc. and its subsidiaries, unless the context requires otherwise.

The  Company  commenced  operations  in 1985  for  the  purpose  of  developing,
manufacturing and distributing a new drug delivery system.  Since its formation,
the Company has been engaged principally in organizational,  financing, research
and development,  and marketing activities.  In the last quarter of fiscal 1993,
the Company launched U.S. distribution of its Biojector 2000 system primarily to
the hospital and large clinic market.  The Company's  products and manufacturing
operations are subject to extensive government regulation,  both in the U.S. and
abroad.  In the U.S., the development,  manufacture,  marketing and promotion of
medical devices is regulated by the Food and Drug  Administration  ("FDA") under
the Federal  Food,  Drug,  and  Cosmetic  Act  ("FFDCA").  In 1987,  the Company
received  clearance  from the FDA under Section  510(k) of the FFDCA to market a
hand-held  CO2-powered  needle-free  injection system. In June 1994, the Company
received  clearance from the FDA under Section 510(k) to market a version of its
Biojector  2000 system in a  configuration  targeted  at high  volume  injection
applications.  In October  1996,  the Company  received  510(k)  clearance for a
needle-free  disposable vial access device.  In March 1997, the Company received
additional  510(k)  clearance for certain  enhancements  to its  Biojector  2000
system.  On March 23,1998,  the Company entered into a transaction  with Vitajet
Corporation  ("Vitajet") whereby the Company acquired,  along with certain other
assets,   the  rights  to  the   Vitajet(R),   a   spring-powered,   needle-free
self-injection device which currently has regulatory clearance for administering
injections of insulin.  On September 30, 1997, the Company  entered into a joint
venture agreement with Elan for the development and commercialization of certain
blood glucose  monitoring  technology  which the Company  licensed from Elan. On
June 30,  1999,  Marathon  completed a sale of the license to the blood  glucose
monitoring   technology,   along  with  certain  fixed  assets  related  to  the
development of that technology.






Since its  inception the Company has incurred  operating  losses and at June 30,
1999, has an accumulated  deficit of  approximately  $57 million.  The Company's
revenues to date have been derived  primarily from licensing and technology fees
for the jet injection technology and from limited product sales of the Biojector
2000 system and Biojector syringes.  The product sales were principally sales to
dealers to stock  their  inventories.  More  recently,  the Company has sold its
products to end-users,  primarily  public health clinics for vaccinations and to
nursing  organizations  for flu  immunization.  Future revenues will depend upon
acceptance  and use by  healthcare  providers  and on the  Company  successfully
entering  into  license  and supply  agreements  with major  pharmaceutical  and
biotechnology   companies.   Uncertainties   over   government   regulation  and
competition  in  the  healthcare   industry  may  impact   healthcare   provider
expenditures and third party payer reimbursements and, accordingly,  the Company
cannot predict what impact, if any,  subsequent  healthcare reforms and industry
trends  might  have on its  business.  In the  future  the  Company is likely to
require substantial  additional  financing.  Failure to obtain such financing on
favorable terms could adversely affect the Company's business.


2.   ACCOUNTING POLICIES

INVENTORIES

Inventories  are stated at the lower of cost or market.  Cost is determined in a
manner which approximates the first-in,  first out (FIFO) method. Costs utilized
for inventory  valuation  purposes  include labor,  materials and  manufacturing
overhead. Net inventories consist of the following:

                                     June 30,        March 31,
                                       1999            1999
                                    ----------      ----------
    Raw Materials                   $  303,233      $  289,214
    Work in Process                      2,866              --
    Finished Goods                     906,842         961,972
                                    ----------      ----------
                                    $1,212,941      $1,251,186
                                    ==========      ==========


USE OF ESTIMATES
The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities  at the date of the
financial  statements and the reported  amounts of revenues and expenses  during
the reporting period. Actual results could differ from those estimates.


RECLASSIFICATIONS
Certain reclassifications have been made to the prior year's expenses to conform
to the current year's presentation.






NET LOSS PER SHARE
The following  common stock  equivalents are excluded from diluted income (loss)
per share calculations as their effect would have been antidilutive:


  Three Months Ended June 30,             1999             1998
                                       ----------       ---------
    Warrants and stock options         12,669,997       9,594,642
    Convertible preferred stock        11,708,931       8,270,270
                                       ----------      ----------
                                       24,378,928      17,864,912
                                       ==========      ==========

3.   DISCONTINUED OPERATIONS

In May 1999,  rather  than  continue  to fund the cost of its  development,  the
Company entered into  negotiations to sell Marathon's  blood glucose  monitoring
technology,  and certain fixed assets related to developing the technology, to a
third party.  The sale was completed on June 30, 1999. The gross proceeds of the
sale was $4  million.  The gain  realized  on the  sale was  approximately  $2.9
million,  net of associated expenses of the transaction and a $500,000 provision
for expenses to wind-up Marathon's  operations.  Accordingly  Marathon's assets,
liabilities,  loss from operations,  gain on sale and cash flows are reported as
Discontinued Operations in the accompanying financial statements.

The terms of the sale of the blood glucose  monitoring  technology  also provide
for the  Company to receive a royalty on net sales of future  products,  if any,
which may be developed in the future from the licensed technology. The agreement
calls for a royalty of three percent of net sales until the Company has received
total royalty payments of $10 million. The agreement then calls for a royalty of
one  percent of net sales  thereafter.  There can be no  assurance  that  future
products  will be  successfully  developed  from the  blood  glucose  monitoring
technology or that such products, if developed, will be commercially successful.


4.   RELATED PARTY TRANSACTIONS

In connection  with the sale of the blood  glucose  monitoring  technology,  the
company  entered into an agreement  with Elan to purchase its 19.9% common stock
interest  in  Marathon.  The  purchase  price of Elan's  minority  interest  was
$331,456 and has been accounted for by the purchase  method of  accounting.  The
fair  market  value of the  minority  interest  at June 30,  1999,  was zero and
accordingly,  the full  amount of the  purchase  price has been  expensed in the
current period.


5.   CHANGES IN SHAREHOLDERS' EQUITY

In connection with the Company's  purchase of Elan's  interest in Marathon,  the
Company  and Elan  agreed to certain  changes in Elan's  equity  holdings in the
Company.  Elan  exchanged its Series B Convertible  Preferred  Stock  ("Series B
Stock"), which would have been convertible into a minimum of 1.34 million shares
of the Company's  common stock without  additional cash payments,  for a Warrant
that expires June 30, 2006 (the  "Warrant"),  to purchase 3.79 million shares of
Bioject's  common stock for $1.50 per share. The Company has the right to redeem
the Warrant if it is  exercised  prior to June 30,  2004.  Under the  redemption
provisions,  if Elan notifies the Company that it intends to exercise all or any
part of the Warrant to acquire  stock in the Company,  the Company has the right
to redeem  the  Warrant  by paying  Elan cash of $2.015  million,  the  original
issuance price of the Series B Stock, plus accrued interest at fifteen per cent,
compounded  semi-annually  from June 30, 1999.  If Elan chooses to exercise less
than  all of the  shares  covered  by the  Warrant,  Bioject  may  exercise  its
redemption right either for all of the shares covered by the warrant or for only
that  portion  being  exercised,  in  which  case the  payment  is  prorated  in
proportion to the portion of the warrant being exercised.





Also in connection  with the Company's  purchase of Elan's interest in Marathon,
the Company and Elan agreed to certain  changes in the terms of Elan's  Series A
Convertible  Preferred  Stock  ("Series A Stock").  The modified terms fixed the
conversion  price of the Series A Stock at $1.50,  eliminating a prior provision
that,  in certain  circumstances,  allowed the Series A Stock to be converted at
80% of the then current fair market value of the Company's  stock, if such value
was less than $1.50.  The terms were also modified to give the Company the right
to redeem the Series A Stock for cash within ninety days of receiving  notice of
the intent to redeem all or part of the Series A Stock into common  stock of the
Company.  The  redemption  price is the original  issuance price of the Series A
Stock being converted plus  accumulated  preferred stock dividends  thereon from
the date of issuance of the Series A Stock.

As described above,  under certain  conditions the original terms of issuance of
the Series A Stock  would have  allowed  the stock to be  converted  into common
stock of the  Company at a price  which  would be at a 20%  discount  to the par
value of the Series A Stock.  The same  provisions  applied to conversion of the
Series B Stock.  The value of this inherent  dividend was recorded as a discount
to  preferred  stock and an increase  to common  stock,  originally  totaling $3
million,  and was to be accreted as additional  preferred  stock  dividends on a
straight-line  basis from March 2, 1998,  until mandatory  conversion on October
15, 2004.  The  combination of exchanging the Series B Stock for the Warrant and
fixing the  conversion  price of the Series A Stock at $1.50 has  eliminated the
opportunity  for either  class of preferred  stock to be  converted  into common
stock of the Company at a discount to its par value. Accordingly, the unaccreted
portion of the inherent  dividend at June 30, 1999, in the amount of $2,396,225,
has been  recorded as a decrease to common stock and an increase in the carrying
values of the  Series A and B Stock.  Modifying  the terms of the Series A Stock
requires  shareholder  approval of an  amendment  to the  Company's  Articles of
Incorporation. Amended Articles of Incorporation, reflecting the modified terms,
are being referred to the Company's shareholders at the Company's annual meeting
in September,  1999. The accompanying  consolidated financial statements reflect
the amended Series A Stock terms as if the amended Articles of Incorporation had
already been adopted.

After  increasing  the carrying  value of the Series B Stock for the  unaccreted
inherent dividend attributable to that stock, its carrying value was $1,985,000,
the original issuance price of the Series B Stock, net of costs of issuance.  In
connection with the exchange of the Series B Stock for the Warrant, the carrying
value of the Series B stock was reduced to zero and common  stock was  increased
by $1,985,000.


6.   NEW ACCOUNTING PRONOUNCEMENT

In June 1997, the FASB issued  Statement of Financial  Accounting  Standards No.
130, "Reporting  Comprehensive  Income" ("SFAS 130"). This statement establishes
standards for reporting and displaying  comprehensive  income and its components
in a full set of general purpose financial statements. The objective of SFAS 130
is to report a measure of all changes in the equity of an enterprise that result
from   transactions   and  other  economic  events  of  the  period  other  than
transactions with owners.  The Company adopted SFAS 130 during the first quarter
of fiscal 1998.  Comprehensive  loss did not differ from currently  reported net
loss in the periods presented.





In June 1998, the FASB issued  Statement of Financial  Accounting  Standards No.
133,  "Accounting  for Derivative  Instruments  and Hedging  Activities"  ("SFAS
133").  SFAS  133  establishes   accounting  and  reporting  standards  for  all
derivative  instruments.  SFAS 133 is effective for fiscal years beginning after
June 15,  1999.  The  Company  does not have  any  derivative  instruments  and,
accordingly,  the  adoption  of SFAS 133 will have no  impact  on the  Company's
financial position or results of operations.


7.   BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

The accompanying, unaudited consolidated financial statements do not include all
information and footnote  disclosures  normally included in an audited financial
statement. However, in the opinion of management, all adjustments (which include
only normal,  recurring  adjustments)  necessary to present fairly the financial
position,  cash flows, and results of operations have been made. It is suggested
that these  statements  be read in  conjunction  with the  financial  statements
included in the  Company's  Annual  Report on Form 10-K for the year ended March
31, 1999.


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

OVERVIEW

The Company is targeting its direct sales efforts  toward:  i) sales to existing
markets,  specifically  flu immunization  providers,  public health agencies and
public school systems; ii) sales in states such as California, where the Company
believes that  needle-syringe  safety  legislation makes the Company's  products
more price  competitive;  and iii)  sales to the U.S.  military.  Sales  through
distributors will target the home  self-injection  market. The Company will also
focus  sales and  marketing  efforts  on  entering  into  licensing  and  supply
arrangements with leading  pharmaceutical and biotechnology  companies for whose
products  the   Biojector   technology   provides   either   increased   medical
effectiveness  or a higher  degree of market  acceptance.  See  "Forward-Looking
Statements."

The Company's  revenues to date have not been sufficient to cover  manufacturing
and  operating  expenses.  However,  the Company  believes  that if its products
attain  significantly  greater  general market  acceptance and if the Company is
able to enter into large volume supply agreements with major  pharmaceutical and
biotechnology  companies,  the Company's  product  sales volume would  increase.
Significantly  higher  product  sales volume should allow the Company to realize
volume-related manufacturing cost efficiencies.  This, in turn, should result in
a reduced costs of goods as a percentage of sales,  which could eventually allow
the Company to achieve positive gross profit. The Company believes that positive
gross profit from product sales, together with licensing and technology revenues
from  agreements  entered  into  with  large  pharmaceutical  and  biotechnology
companies would eventually allow the Company to operate profitably. The level of
revenues required to generate net income will be affected by a number of factors
including the mix of revenues between product sales and licensing and technology
fees, pricing of the Company's  products,  its ability to attain  volume-related







and automation-related  manufacturing efficiencies,  and the impact of inflation
on the  Company's  manufacturing  and  other  operating  costs.  There can be no
assurance that the Company will achieve  sufficient  cost reductions or sell its
products at prices or in volumes  sufficient to achieve  profitability or offset
increases  in its costs  should they occur.  Further,  there can be no assurance
that, in the future,  the Company will be able to interest major  pharmaceutical
or  biotechnology  companies  in entering  licensing or supply  agreements.  See
"Forward-Looking Statements."

The Company's clinical research efforts are aimed primarily at clinical research
collaborations  in the  area of  DNA-based  vaccines  and  medications.  Product
development  efforts  are  focused  primarily  in  three  areas:  i)  developing
self-injectors  targeted  for the home use  market;  ii)  developing  pre-filled
syringes for use with the B-2000 and with other needle-free  injectors presently
being  developed;  and iii) further  developing the intradermal  adapter for the
B-2000.

Revenues  and  results of  operations  have  fluctuated  and can be  expected to
continue to  fluctuate  significantly  from  quarter to quarter and from year to
year.  Various  factors  may  affect  quarterly  and  yearly  operating  results
including: i) length of time to close product sales; ii) customer budget cycles;
iii)  implementing  cost reduction  measures;  iv)  uncertainties and changes in
product  sales due to third  party  payer  policies  and  proposals  relating to
healthcare  cost  containment;  v) timing and amount of payments under licensing
and  technology  development   agreements;   and  vii)  timing  of  new  product
introductions by the Company and its competition. The Company does not expect to
report  net  income  from  operations  in  fiscal  2000.  See   "Forward-Looking
Statements."


RESULTS OF OPERATIONS
QUARTER ENDED JUNE 30, 1999 COMPARED TO QUARTER ENDED JUNE 30, 1998

Product  sales  decreased  from  $142,000 in the first quarter of fiscal 1999 to
$113,000 in the first  quarter of fiscal 2000 due to decreases in the unit sales
volumes of both B-2000  devices and syringes.  License and  technology  revenues
decreased  to $100,000 in the current  quarter  compared to $138,000 in the same
quarter a year  ago.  This is due to that fact  that  licensing  and  technology
revenues in the first quarter of fiscal 2000 result from  different  agreements,
containing different terms, with different parties than licensing and technology
revenues in the same quarter a year ago.

Manufacturing expense increased by $90,000 from the first quarter of fiscal 1999
to the first quarter of fiscal 2000. On account of excess  inventories of B-2000
devices  and  Biojector  syringes  the  Company  did  not  manufacture  material
quantities of new products in the quarter ended June 30, 1999.  This resulted in
approximately  $91,000 less manufacturing  overhead being absorbed and accounted
for the  increase  in  manufacturing  cost for the first  quarter of fiscal 2000
compared to the same quarter a year ago.  The Company  believes  that  inventory
on-hand of B-2000  devices and syringes  will,  in most product  categories,  be
sufficient to meet product demand through fiscal 2000. Accordingly,  the Company
does not foresee a return to high manufacturing  volumes of either the B-2000 or
related   syringes   during  the  current  fiscal  year.  See   "Forward-Looking
Statements."

Research and development expense increased from $245,000 in the first quarter of
fiscal  1999 to  $254,000  in the first  quarter of fiscal  2000.  The  increase
resulted  from  higher  consulting  expenses  and  increased  costs  related  to
prototype development.






Selling,  general and  administrative  expenses  remained  relatively  constant,
decreasing  slightly  from  $609,000  in the first  quarter  of  fiscal  1999 to
$602,000 in the first  quarter of fiscal 2000.  Selling  expense for the quarter
ended June 30, 1999  increased by $23,000 when  compared with the same quarter a
year ago,  primarily as a result of increased  compensation and travel expenses.
General and  administrative  spending  decreased  by $30,000,  primarily  due to
decreased recruiting and investor relations expenses.

Other income  consists of earnings on  available  cash  balances and  fluctuates
based on available cash balances.

Loss from  discontinued  operations  is the  operating  loss from the  Company's
former  operations  to  develop  and  commercialize   blood  glucose  monitoring
technology,  the  license  to which was sold in June 1999.  Expenses  related to
discontinued  operations  declined  from  $986,000 in the quarter ended June 30,
1998 to $450,000 in the quarter ended June 30, 1999.  The decline is a result of
decreased  spending on research and development as the Company  contemplated the
sale of the license.

Gain on sale of discontinued  operations is the gain recognized from the sale of
the Company's  blood  glucose  monitoring  technology,  and certain fixed assets
related to developing the technology,  to a third party.  The sale was completed
on June 30,  1999.  The  gross  proceeds  of the sale was $4  million.  The gain
realized on the sale was approximately $2.9 million,  net of associated expenses
of the transaction and a $500,000  provision for expenses to wind-up  Marathon's
operations.


LIQUIDITY AND CAPITAL RESOURCES

Since its inception in 1985,  the Company has financed its  operations,  working
capital  needs and capital  expenditures  primarily  from private  placements of
securities,  exercises of stock options and warrants, proceeds received from its
initial public  offering in 1986,  proceeds  received from a public  offering of
common stock in November 1993,  licensing and  technology  revenues and revenues
from sales of products.  Net proceeds  received from issuance of securities from
inception through June 30, 1999 totaled approximately $62.1 million.

Cash, cash  equivalents and marketable  securities  totaled $1.4 million at June
30, 1999  compared to $1.3  million at March 31,  1999.  The  increase  resulted
primarily  from cash proceeds  received from issuance of the Company's  Series C
Preferred  Stock  and a  minority  interest  capital  contribution  to  Marathon
Medical,  offset  by  operating  cash  requirements,  capital  asset  purchases,
increases  in  product   inventories   and   reduction  in  certain  short  term
liabilities.

The Company had stock subscriptions receivable totaling approximately $3 million
at March 31, 1999. In April 1999,  the Company  received $2.4 million in payment
of a  subscription  to the  Company's  Series C Preferred  Stock and $597,000 in
payment of a subscription to a minority interest in the common stock of Marathon
Medical.  Both stock  subscriptions were from Elan pursuant to the provisions of
the 1997 securities  purchase agreement between the Company and Elan. The use of
the  proceeds  from both  stock  purchases  was  restricted  to paying  Marathon
Medical's obligations and operating expenses.






The Company  believes that its current cash  position,  combined with  revenues,
other cash  receipts,  and net proceeds from the sale of the glucose  monitoring
technology will be sufficient to fund the Company's operations through the first
quarter of fiscal 2001. In addition,  the Company is considering other potential
financing  alternatives.   Even  if  the  Company  is  successful  in  obtaining
additional  financing,  unforeseen  costs and expenses or lower than anticipated
cash receipts from product sales or research and  development  activities  could
accelerate  or  increase  the  financing  requirements.  The  Company  has  been
successful  in  raising  required  financing  in  the  past  and  believes  that
sufficient funds will be available to fund future operations. However, there can
be no assurance  that the Company's  efforts will be successful and there can be
no  assurance  that such  financing  will be  available  on terms  which are not
significantly  dilutive  to  existing  shareholders.  Failure  to obtain  needed
additional  capital  on  terms  acceptable  to the  Company,  or at  all,  would
significantly  restrict the Company's operations and ability to continue product
development and growth and materially  adversely affect the Company's  business.
The  Company  has no  banking  line of  credit  or other  established  source of
borrowing.  See "Forward Looking Statements."


YEAR 2000  ISSUES The Company is in the process of  assessing  and  implementing
remedial  action  with  regard  to  potential  Year  2000  ("Y2K")  issues.  The
assessment  includes  steps to review and  obtain  vendor  certification  of Y2K
compliance  of current  systems,  testing  system  compliance  and  implementing
corrective action where necessary.  A Y2K team composed of manager-level members
from Manufacturing,  Purchasing,  Information Services and Finance is continuing
to conduct the assessment. Assessment of the compliance of all critical systems,
plans for remedial  action,  if any, and  estimates of the cost of such remedial
action have been  completed.  The cost to address the  Company's Y2K issues have
been  estimated to be immaterial  and funds  expended are expected to be derived
from normal  maintenance and upgrade  operating  budgets.  See  "Forward-Looking
Statements."

Products
The  Company's  products  do not  incorporate  either  application  or  embedded
software and are therefore not subject to Y2K issues.

Information Systems The Company utilizes packaged  application  software for all
critical information systems functions, which have been certified by the vendors
as  being  Y2K  compliant.  This  includes  financial  software,  operating  and
networking systems, application and data servers, PC and communications hardware
and core office  automation  software.  The company is in the process of testing
the reliability of the  application  software and expects this to be complete by
mid August. See "Forward-Looking Statements."

Manufacturing Systems
The Company has received  manufacturer  certification  of Y2K compliance for all
critical automated components used in manufacturing the Company's products.






Supplier Base
The Company has  implemented  a Y2K audit  program of suppliers  critical to the
Company's  operations.  These suppliers have certified Y2K compliance of systems
critical to maintaining a continuing source of supply to the Company.

Risk
The Company will be at risk from  external  infrastructure  failures  that could
arise  from  Y2K   failures,   including   failure  of   electrical   power  and
telecommunications.  Investigation and assessment of the risk of failure of such
infrastructure  is beyond the scope and  resources of the  Company.  The Company
intends to rely on vendor  certification  of Y2K compliance and does not plan to
audit vendor systems to test their compliance.  The Company will be at risk with
respect to vendors who certify  their systems as being Y2K compliant but who are
unable to deliver  potentially  critical supplies and services to the Company on
account of Y2K noncompliance.

Business  risks to the Company of not  successfully  identifying  Y2K issues and
undertaking  effective  remedial  action  include the inability to ship product,
delay or loss of revenue  and delay in  manufacturing  operations.  The  Company
believes  that  it has  successfully  identified  critical  Y2K  issues  and has
substantially  completed  required remedial action.  Other than risks created by
infrastructure  failures or by the Company's dealings with third parties,  where
the actions of such third parties are beyond the Company's control,  the Company
believes that it will have no material business risk from Y2K issues.  There can
be no  assurance  that  infrastructure  failures  will not  occur or that  third
parties,  over which the Company has no control will successfully  address their
own Y2K issues. See "Forward-Looking Statements."


FORWARD  LOOKING  STATEMENTS  This report  contains  forward-looking  statements
within the  meaning of the  Private  Securities  Litigation  Reform Act of 1995.
These  forward-looking  statements  concern,  among  other  things,  anticipated
revenues  from  product  sales  and  licensing  and  technology  fees,  expected
sufficiency  of capital  resources to meet the  Company's  future  requirements,
future  sources of working  capital,  and Year 2000 issues.  Paragraphs  of this
Report that  include  forward-looking  statements  are often  identified  with a
cross-reference  to  this  section.  Forward-looking  statements  are  based  on
expectations,  assumptions,  estimates and projections about the Company and the
industry in which the Company  operates  that involve  risks and  uncertainties.
These forward-looking  statements involve known and unknown risks, uncertainties
and other  factors  that may cause the  Company's  actual  results  or  industry
results  to  be  materially   different  from  the  results,   performance,   or
achievements discussed or implied in the forward-looking statements. These risks
and uncertainties  include the uncertainty of market acceptance of the Company's
jet  injection  products,   uncertain  successful  completion  of  research  and
development  projects,  the Company's  need to enter into  additional  strategic
corporate  licensing  arrangements,  the  Company's  history  of losses  and its
accumulated  deficit and need for additional  financing,  the Company's  limited
manufacturing  experience,  the  Company's  dependence  on  the  performance  of
existing and future  corporate  partners and other third parties,  uncertainties
related to regulation by the FDA and the need to obtain approval of new products
and their  application to additional drugs, the possibility of product liability
claims, dependence on key employees and the risks related to competition.

Forward-looking statements are based on the estimates and opinions of management
on the date the statements are made. The Company assumes no obligation to update
forward-looking  statements if conditions or management's  estimates or opinions
should change,  even if new information  becomes available or other events occur
in the future.  For a more detailed  description  and  discussion of such risks,
uncertainties  and other  factors,  readers of this  report are  referred to the
Company's  filings with the  Securities and Exchange  Commission,  including the
Company's Annual Report on Form 10-K for the year ended March 31, 1999.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.



PART II
OTHER INFORMATION

Item 1.   Legal Proceedings

     None during the quarter ended June 30, 1999.

Item 2.   Changes in Securities

     In May 1999, the Company issued to Petkevich & Partners L.L.C. a warrant to
purchase a total of 80,000  shares of Common  Stock of the company at a price of
$0.625.

The  warrants  and the shares  issued upon  exercise of the  warrants  have been
issued pursuant to an exemption from registration under Rule 506 of Regulation D
and Section 4(2) of the  Securities  Act. In relying upon such exemption (1) the
Company did not engage in any "general  solicitation," (ii) Petkevich & Partners
represented  and the  Company  reasonably  believed  that  it was an  accredited
investor and had such knowledge and experience in financial and business matters
such that it was capable of evaluating  the merits and risks of the  prospective
investment  and was able to bear the economic risk of such  investment,  and was
provided  access  to all  necessary  and  adequate  information  to  enable  the
purchaser to evaluate the financial risk inherent in making an investments,  and
(iii)  Petkevich & Partners  represented  that it was  acquiring  the shares for
itself and not for distribution.

     In June 1999 in connection  with the Company's  purchase of Elan's interest
in  Marathon,  the Company and Elan agreed to certain  changes in Elan's  equity
holdings in the Company.  Elan  exchanged  its Series B preferred  stock,  which
would  have  been  convertible  into a  minimum  of 1.34  million  shares of the
Company's  common  stock  without  any more cash  payments,  for a warrant  that
expires  June 30, 2006 (the  "Warrant"),  to  purchase  3.79  million  shares of
Bioject's  common stock for $1.50 per share. The Company has the right to redeem
the Warrant if it is  exercised  prior to June 30,  2004.  Under the  redemption
provisions,  if Elan notifies the Company that it intends to exercise all or any
part of the Warrant to acquire  stock in the Company,  the Company has the right
to redeem  the  Warrant  by paying  Elan cash of $2.015  million,  the  original
issuance price of the Series B preferred stock, plus accrued interest at fifteen
per cent,  compounded  semi-annually  from June 30,  1999.  If Elan  chooses  to
exercise  less  than all of the  shares  covered  by the  Warrant,  Bioject  may
exercise  its  redemption  right  either  for all of the  shares  covered by the
warrant or for only that portion being  exercised,  in which case the payment is
prorated in proportion to the portion of the warrant being exercised.

     Also in June 1999 the terms of Elan's Series A convertible  preferred stock
("Series A Stock") were modified.  The modified terms fixed the conversion price
of the Series A Stock at $1.50,  eliminating a prior  provision that, in certain
circumstances,  allowed  the Series A Stock to be  converted  at 80% of the then
current fair market value of the  Company's  stock,  if such value was less than
$1.50.  The terms were also modified to give the Company the right to redeem the
Series A Stock for cash within ninety days of receiving  notice of the intent to
convert all or part of the Series A Stock into common stock of the Company.  The
redemption  price is the  original  issuance  price of the Series A Stock  being
converted plus  accumulated  preferred stock dividends  thereon from the date of
issuance  of the  Series  A Stock.  Modifying  the  terms of the  Series A Stock
requires  shareholder  approval of an  amendment  to the  Company's  Articles of
Incorporation. Amended Articles of Incorporation, reflecting the modified terms,
are being presented for approval to the Company's  shareholders at the Company's
annual  meeting in September,  1999.  The  accompanying  consolidated  financial
statements  reflect the amended Series A Stock terms as if the amended  Articles
of Incorporation had already been adopted.


Item 3.   Defaults Upon Senior Securities

   None during the quarter ended June 30, 1999.

Item 4.   Submission of Matters to a Vote of Security Holders

   None during the quarter ended June 30, 1999.



Item 5.   Other Information

TIMELY SUBMISSION OF SHAREHOLDER PROPOSALS

     The Securities  and Exchange  Commission  ("SEC")  requires a registrant to
give shareholders  notice of deadlines for timely submission of certain types of
shareholder  proposals that  shareholders  wish to present for a vote on certain
SEC rules as they relate to the  registrant's  annual  meeting date and relevant
provisions  of its  articles  and  by-laws.  Set forth  below are the  deadlines
applicable to the Company's shareholders.  The Company's Board has not yet acted
to set the annual  meeting  date;  the  following  dates are based on an assumed
meeting date of September 14, 2000 for the Company's 2000 Annual Meeting.

     In the event a shareholder does not notify the Company by April 14, 2000 of
an  intent  to be  present  at the 2000  Annual  Meeting  in order to  present a
proposal  for a vote (other than a proposal for the  nomination  of a director),
the Company will have the right to exercise its discretionary  authority to vote
against the proposal, if presented,  without including any information about the
proposal in its proxy materials.


Item 6.   Exhibits and Reports on Form 8-K

EXHIBITS:


10.64     Agreement to Amend Securities Purchase Agreement and Certain Related
          Securities among Bioject Medical Technologies Inc., Elan International
          Services Ltd. and Marathon Medical Technologies Inc.

10.65     Assignment among Bioject Medical Technologies Inc., Elan
          Corporation plc. and JV Co.

10.66     Form of Series "P" Common Stock Purchase Warrant.

 27.1     Financial Data Schedule




REPORTS ON FORM 8-K:

          Form  8-K  filed  on April  20,  1999,  private  placement  with  Elan
International Services, Ltd. with exhibits 3.1.2 and 3.1.3.

          Form 8-K filed on June 25, 1999, press release  announcing  Hoffman-La
Roche withdrawal from joint marketing plan.

          Form 8-K filed on July 12, 1999, press release  announcing the sale of
Marathon's Medical's blood glucose monitoring technology to Medisys, plc.






                                    SIGNATURE


      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.



                                    BIOJECT MEDICAL TECHNOLOGIES INC.
                                    (Registrant)



Date:  August 12, 1999              /s/ James O'Shea
                                    ---------------------------------
                                    James O'Shea
                                    Chairman, Chief Executive Officer
                                    and President



                                    /s/ Michael A. Temple
                                    ---------------------------------
                                    Michael A. Temple
                                    Vice President and Chief Financial Officer