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, 1998


                           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, 1998 there were 27,808,493  outstanding  shares of common stock
of the registrant.


<PAGE>


PART I
FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The following  unaudited  consolidated  financial  statements of Bioject Medical
Technologies Inc. (BMT), 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  injection  operations  are conducted by Bioject Inc.
(BI), an Oregon  corporation  formed in February  1985,  which is a wholly owned
subsidiary  of BMT,  and its blood  glucose  monitoring  technology  development
operations  are  conducted  by  Bioject JV  Subsidiary  Inc.  ("JV"),  an Oregon
corporation formed in October 1997, which is owned 80.1% by BMT.

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,
1999.  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, 1998 and June 30, 1997

     -    Consolidated Balance Sheets dated June 30, 1998 and March 31, 1998

     -    Consolidated Statements of Cash Flows for the quarters ended
          June 30, 1998 and June 30, 1997



<PAGE>


         BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS


                                                   Three Months Ended
                                                        June 30,
                                                  1998            1997
                                                       (Unaudited)
                                               -------------------------


REVENUES:

     Net sales of products                     $ 142,411       $ 342,614
     Licensing/technology fees                   138,001         125,000
                                               -----------     ---------
                                                 280,412         467,614
                                               -----------   -----------
EXPENSES:

     Manufacturing                                271,014        458,994
     Research and development                   1,057,717        253,982
     Selling, general and administrative          781,148        753,842
                                               -----------   -----------
     Total operating expenses                   2,109,879      1,466,818
                                               -----------   -----------
     Operating loss                            (1,829,467)      (999,204)
       Other income                                22,712          6,630
                                                ----------    ----------
     Loss before taxes                         (1,806,755)    (  992,574)
     Provision for income taxes                         -              -
                                               -----------   -----------
     Net Loss                                  (1,806,755)    (  992,574)
     Preferred stock dividend                     346,350              -
                                               ------------    ----------
Net loss allocable to
common shareholders                           ($2,153,105)     ($992,574)
                                               ============   ===========

Basic and diluted net loss per
common share                                       ($0.08)        ($0.05)
                                               ===========    ===========

Shares used in per share calculation            26,912,231     19,789,582
                                               ===========   ===========


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



<PAGE>


        BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
                 CONSOLIDATED BALANCE SHEETS
                          
                                                 June 30,        March 31,
                                                   1998            1998
                                                (Unaudited)
                                                --------------------------
ASSETS
------------------------------------------
CURRENT ASSETS:
     Cash and cash equivalents                  $ 2,578,789    $ 1,900,839
     Accounts receivable, net                        93,906        153,721
     Inventories                                  2,069,834      1,891,970
     Other current assets                            83,039         75,292
                                                  ---------    -----------
   Total current assets                           4,825,568      4,021,822

PROPERTY AND EQUIPMENT, at cost:
     Machinery and equipment                      2,367,671      2,241,904
     Production molds                             1,945,267      1,945,267
     Furniture and fixtures                         179,654        158,477
     Leasehold improvements                          94,115         94,115
                                                -----------    -----------
                                                  4,586,707      4,439,763
     Less - Accumulated depreciation             (2,108,502)    (1,947,006)
                                                -----------    -----------
                                                  2,478,205      2,492,757
OTHER ASSETS                                        475,466        463,031
                                                -----------    -----------
                                                $ 7,779,239    $ 6,977,610
                                                ===========    ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------
CURRENT LIABILITIES:
     Accounts payable                           $   424,008    $   497,180
     Accrued payroll                                201,763        218,424
     Other accrued liabilities                      996,657        277,122
     Deferred revenue                               124,999         10,000
                                                -----------    -----------
   Total current liabilities                      1,747,427      1,002,726


SHAREHOLDERS' EQUITY:
Preferred stock, no par,  10,000,000 shares
     authorized;  issued and outstanding
     Series A Convertible-692,694 shares,
       $15 stated value                           8,153,639      7,826,157
     Series B Convertible -134,333 shares,
       $15 stated value                           1,510,157      1,491,289
     Common stock, no par, 100,000,000
       shares authorized; issued and
       outstanding 27,808,493 shares at
       June 30, 1998 and 25,503,038 at
       March 31, 1998                            49,420,980     47,557,297
     Accumulated deficit                        (53,052,964)   (50,899,859)
                                                -----------    -----------
   Total shareholders' equity                     6,031,812      5,974,884
                                                -----------    -----------
                                                $ 7,779,239    $ 6,977,610
                                                ===========    ===========

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



<PAGE>


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


                                                       Three Months Ended
                                                           June 30,
                                                      1998           1997
                                                          (Unaudited) 
                                                --------------------------

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss applicable to common
       shareholders                             ($2,153,105)     ($992,574)
     Adjustments to net loss:
       Depreciation and amortization                171,237        107,505
       Contributed capital for services              13,818              -
       Preferred stock dividends                    346,350
     Net changes in assets and liabilities:
       Accounts receivable                           59,815         95,986
       Inventories                                 (177,864)        67,351
       Other current assets                          (7,747)       (36,018)
       Accounts payable                             (73,173)      (138,125)
       Accrued payroll                              (16,661)       (61,465)
       Other accrued liabilities                    719,535         31,006
       Deferred revenue                             114,999       (125,000)
                                                -----------    -----------
     Net cash used in operating activities       (1,002,796)    (1,051,334)
                                                -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Property and equipment                        (146,944)      ( 10,228)
     Other assets                                  ( 22,175)      ( 11,070)
                                                 -----------    -----------
     Net cash used in investing activities         (169,119)      ( 21,298)
                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Cash proceeds from common stock              1,849,865        750,000
                                                 ----------      ----------
     Net cash provided by financing activities:   1,849,865        750,000
                                                 ----------      ----------

CASH AND CASH EQUIVALENTS:
     Net increase (decrease) in cash and
       cash equivalents                             677,950       (322,632)
     Cash and cash equivalents at beginning
       of period                                  1,900,839      2,116,478
                                                -----------    -----------
     Cash and cash equivalents at end
       of period                                $ 2,578,789    $ 1,793,846
                                                ===========    ===========

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



<PAGE>


               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. ("BMT"),
an Oregon Corporation, and its wholly owned subsidiary,  Bioject Inc., an Oregon
Corporation  ("BI"), and its 80.1% owned subsidiary,  Bioject JV Subsidiary Inc.
("JV"), an Oregon corporation.  All significant  intercompany  transactions have
been eliminated. Although Bioject Inc. commenced operations in 1985, the Company
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. Bioject JV Subsidiary Inc. was formed in October 1997 in connection
with a joint  venture  arrangement  with Elan  Corporation,  plc  ("Elan").  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  Corporation,  plc ("Elan") for the development and
commercialization  of certain  blood  glucose  monitoring  technology  which the
Company  licensed  from Elan.  The blood glucose  monitoring  technology is also
subject to  government  regulation  in the U.S. by the FDA and abroad by various
agencies.

The Company's  revenues to date have been derived  primarily  from licensing and
technology fees for the needle-free  injection technology and more recently from
sales of the Biojector  2000 system and Biojector  syringes to public health and
flu immunization clinics. Future revenues will depend upon acceptance and use by
healthcare  providers of the  Company's  needle-free  injection  technology  and
successful  development,  regulatory approval and market acceptance of its blood
glucose  monitoring  technology.  Uncertainties  over government  regulation and
competition  in  the  healthcare   industry  may  impact   healthcare   provider
expenditures  and third party  payer  reimbursements.  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.

<PAGE>

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,
                                       1998            1998
                                    ----------      ----------

    Raw Materials                   $  703,778      $  754,715
    Work in Process                      9,763           9,763
    Finished Goods                   1,356,293       1,127,492
                                    ----------      ----------
                                    $2,069,834      $1,891,970
                                    ==========      ==========


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 earnings per share
calculations as their effect would have been antidilutive:

  Three Months Ended June 30,             1998             1997
                                       ----------       ---------
    Warrants and stock options          9,594,642       6,927,681
    Convertible preferred stock         8,270,270               -
                                       ----------       ---------
                                       17,864,912       6,927,681
                                       ==========       ==========

3.   RELATED PARTY TRANSACTION

A significant  portion of the expenses of the blood glucose monitoring  business
segment  are  incurred  by Elan and billed to the  Company  under a  contractual
arrangement between the two companies.  Included in other accrued liabilities at
June 30, 1998 is approximately $754,000 owed to Elan under this arrangement.

<PAGE>

4.   SEGMENT INFORMATION

The Company has adopted  the  segment  reporting  requirements  of SFAS No. 131,
Disclosures about Segments of an Enterprise and Related Information. At present,
the Company has two reportable  segments which offer different  products and are
managed  separately.  Each business requires different  technology and marketing
strategies.  The following sets forth the unaudited results of operations of the
Company for its two segments of  operations - needle-free  injection  technology
and blood glucose monitoring technology (in thousands):


                                Needle-free Injection   Blood glucose Monitoring
                                Three Months Ended       Three Months Ended
                                    June 30,                    June 30,
                                 ------------------        -------------------
                                  1998        1997           1998       1997
                                 -------    -------        --------   -------
   REVENUES:
     Net sales of products     $ 142,411   $342,614        $     0    $  0
     Licensing/technology fees   138,001    125,000              0       0
                                 -------    -------        --------   --------
                                 280,412    467,614              0       0
                                 -------    -------        --------   --------
   EXPENSES:
     Manufacturing               271,014    458,994              0       0
     Research & development      244,586    253,982        813,131       0
     Selling, general
      & administrative           608,630    753,842        172,518       0
                               ---------  ---------       --------    ------
     Total operating expenses  1,124,230  1,466,818        985,649       0
                               ---------  ---------       ---------   ------

   Operating loss              (843,818)  (999,204)       (985,649)      0
      Other income               22,712      6,630               0       0
                               ---------  ---------       --------    ------
   Loss before taxes           (821,106)  (992,574)       (985,649)      0
   Provision for income taxes         0          0               0       0
                                 -------     ------       --------   -------
   Net loss                   $(821,106) $(992,574)      $(985,649)   $  0
                              ========== ===========     ==========  =======

At June 30, 1998, the blood glucose monitoring business segment had net property
and equipment,  at cost, of $98,683 and accounts payable and accrued expenses of
approximately  $754,000.  The blood glucose  monitoring  business segment had no
other  significant  assets or liabilities at June 30, 1998.  Accordingly,  after
separating the blood glucose monitoring business segment assets and liabilities,
the accompanying  consolidated  balance sheets effectively  represent the assets
and liabilities of the needle-free  injection  business segment.  In the future,
certain  proceeds  from  the sale of  equity  or  issuance  of debt by JV may be
restricted  to JV  operations.  To the extent that they meet  certain  reporting
requirements,  the separate assets, liabilities and equity of the parent and its
subsidiary will be appropriately disclosed.

5.   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 1999.  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.

<PAGE>

6.   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/A for the year ended March
31, 1998.


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

OVERVIEW

The Company  continues to focus on maintaining its  penetration  into the public
health  and  flu  immunization  markets  with  its  Biojector  2000  needle-free
injection  system.  The Company is also  directing its sales efforts at creating
sales of the Biojector 2000 system to the U.S.  military.  At the same time, the
Company  is  actively  seeking   relationships  with  major  pharmaceutical  and
biotechnology  companies in key niche markets to market its needle-free products
for specific applications and to develop other application-specific  devices and
companion syringes.

Subsequent to quarter end, in July 1998,  the Company  entered into an agreement
with  Merck  & Co,  Inc.  ("Merck"),  a  worldwide  leader  in the  development,
manufacture  and sale of a broad range of human and animal  health  products and
services.  The agreement provides Merck the rights to use the Biojector 2000 jet
injection  system with selected Merck vaccines.  The Company  believes that this
agreement is the first step in establishing a long-term relationship between the
two companies  whereby Merck will use the  Company's  needle-free  technology in
connection  with certain of its  vaccines.  There can be no assurance  that such
long-term relationship will be established. (See "Forward Looking Statements").

Also  subsequent  to quarter  end,  in July 1998,  the  Company  entered  into a
collaborative  research  agreement with  GeneMedicine,  Inc.  ("GeneMedicine") a
developer of gene medicines and genetic  vaccine  technologies  for treatment or
prevention  of a  wide  range  of  diseases.  This  collaboration  involves  the
continued  refinement of the Biojector  2000 jet injection  system  coupled with
GeneMedicine's unique gene-based delivery platforms to create a combined product
that will enhance the delivery and activity of plasmid-based  genetic  vaccines.
The agreement  contemplates that combined products  developed as a result of the
research  collaboration  will be marketed to third party corporate  partners for
commercialization  and sale rather than being  commercialized  or sold by either
Bioject  or  GeneMedicine.  There  can be no  assurance  that the  collaborative

<PAGE>

alliance will result in marketable products. Further, should marketable products
be  developed  as a  result  of  the  collaborative  alliance,  there  can be no
assurance that the companies will be successful  either at locating  appropriate
third party corporate partners or at entering into the necessary agreements with
those  partners  to  commercialize  and sell the  products  so  developed.  (See
"Forward Looking Statements").  Additionally, should such products be developed,
there can be no  assurance  that they will  receive  the  required  governmental
clearance.

Through  its joint  venture  with Elan the  Company is  actively  engaged in the
development of its continuous blood glucose monitoring technology.  To date, the
Company has continued testing and development of a clinical prototype.  In April
1998,  a  small,  human  clinical  study  with a  prototype  of the  device  was
conducted.  The prototype device was used to monitor the blood glucose levels of
six  diabetes  patients for fifteen  continuous  hours.  The system  tracked the
patients' actual blood glucose levels against whole blood reference samples with
significant  levels of  accuracy.  The Company is planning  further  preliminary
clinical studies as development of the product  continues.  Based on the results
of these studies, the Company will then plan and conduct comprehensive  clinical
trials of the monitoring  system which are intended to support its  applications
to the FDA to market the product in the United  States.  (See  "Forward  Looking
Statements")

The  Company's  revenues  to date have not been  sufficient  to cover  operating
expenses.  The  Company  believes  that  sales  volumes  will  increase  as  its
needle-free injection products achieve greater market penetration,  both through
continued direct sales efforts and through corporate marketing relationships. If
sales  volume  increases  and  can be  coupled  with  further  reduction  of the
Company's  product  costs,  its cost of goods with  respect  to the  needle-free
injection  products as a percentage  of sales will decrease and the Company will
realize positive margins.  However, in addition to funding the operations of its
needle-free  injection  business,  the Company is  required to fund  substantial
research and  development  costs  associated  with  developing the blood glucose
monitoring  technology.  Since no revenue from blood glucose monitoring products
is expected for a number of years,  the Company  expects  larger  losses  unless
sales of the  Biojector  2000  increase  substantially.  (See  "Forward  Looking
Statements") The level of sales required to generate net income will be affected
by a number of factors  including  the pricing of the  Company's  products,  its
ability to attain volume  purchasing  and  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 be  able  to  successfully
implement  additional  manufacturing  cost  reductions  or sell its  needle-free
injection products at prices or in volumes  sufficient to achieve  profitability
or to offset  increases in the Company's  research and  development  expenses or
other costs should they occur.

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)  timing  of new  product  introductions  by the  Company  and its
competition,  (ii) the cost and length of time required to complete  development
and  commercialization  of, and gain regulatory  clearance for the blood glucose
monitoring  technology,  (iii)  length  of time to  close  product  sales,  (iv)
customer  budget  cycles,   (v)  success  in  implementing   manufacturing  cost
reductions,  (vi) uncertainties and changes in customer purchases due to changes
third  party  reimbursement  policies  and  overall  market  pressure to contain
increases in  healthcare  spending,  and (vii) the timing and amount of payments
under technology development and licensing agreements.

<PAGE>

During fiscal 1999,  the Company will continue to focus its efforts on expanding
sales of existing  products,  commencing  manufacture  and sale of the  Vitajet,
commencing  manufacture  and  sale  of the  B4000  Self-Injector  if  regulatory
clearance is obtained, reducing the cost of its products, continuing development
and  cooperation  in pursuing  regulatory  clearance  of a 1.5 ml.  injector for
Hoffmann-La Roche, developing the blood glucose monitoring technology,  pursuing
product licensing and development opportunities under the Merck and GeneMedicine
agreements,  pursuing  additional  alliances with  pharmaceutical  companies and
conserving  its financial  resources.  The Company does not expect to report net
income from operations in fiscal 1999. (See "Forward Looking Statements")


RESULTS OF OPERATIONS

QUARTER  ENDED JUNE 30,  1998  COMPARED TO QUARTER  ENDED JUNE 30, 1997  Product
sales decreased from $343,000 in the first quarter of fiscal 1998 to $142,000 in
the first  quarter of fiscal  1999.  The sales  decrease was due to smaller than
expected flu season  reorders,  principally  from one major  municipal  customer
which had sufficient  supplies of the Company's  products carrying over from the
prior year to satisfy its requirements  through the current immunization season.
License and  technology  revenues  increased to $138,000 in the current  quarter
compared  to  $125,000  in the  same  quarter  a year ago due to the  timing  of
recognizing revenue relating to strategic partner development payments.

Manufacturing  expense  decreased  from the first  quarter of fiscal 1998 to the
first  quarter of fiscal  1999 by  $188,000  due to lower  unit  sales  volumes,
resulting  in a lower  cost  of  goods  sold,  coupled  with  higher  levels  of
production which resulted in higher  absorption of  manufacturing  overhead into
inventory. Research and development expense increased from $254,000 in the first
quarter of fiscal 1998 to $1.06 million in the first quarter of fiscal 1999. The
increase was due primarily to the Company assuming responsibility,  beginning in
the current quarter,  for funding the research and development cost of the blood
glucose  monitoring  technology.  The Company incurred  $813,000 of research and
development costs in the current quarter to develop the blood glucose monitoring
technology  as compared to no spending in the same quarter a year ago.  Selling,
general and administrative  expense increased from $754,000 in the first quarter
of fiscal 1998 to $781,000 in the first quarter of fiscal 1999.  Selling expense
for the current quarter decreased by $167,000 when compared with the same period
a year ago, a result of  reductions  in the  Company's  direct sales force.  The
savings in selling expenses were offset by a $194,000 increase in administrative
spending,  primarily  relating to  administrative  costs of the Company's  blood
glucose  monitoring  development  operations.  The overall  result was a $27,000
increase in selling  general and  administrative  expense for the quarter  ended
June 30, 1998 as compared to the quarter ended June 30, 1997.

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

On a segment basis, the needle-free  injection operations reported a net loss of
$821,000  for the  quarter-ended  June  30,  1998 as  compared  to a net loss of
$993,000  for the quarter  ended June 30,  1997.  The  improved  performance  is
primarily  the result of reduced  spending the area of sales and  marketing  and
higher interest earned on comparatively higher cash balances.

<PAGE>

The blood glucose  monitoring  business  segment reported a net loss of $986,000
for the  quarter  ended  June 30,  1998.  Due to the  recent  formation  of this
business  segment,  there was no  corresponding  operating  result for the first
quarter of fiscal 1998.


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, 1998 totaled approximately $46.5 million.

During the first quarter of fiscal 1999 the Company raised  approximately  $1.85
million  from  issuance  of capital  stock.  $1.56  million  of that  amount was
proceeds  from the  exercise  of warrants  issued in  connection  with  previous
private  placements of the Company's common stock and $290,000 was proceeds from
the exercise of stock options. Subsequent to the end of the quarter, during July
1998, the Company received additional proceeds from the exercise of warrants and
stock  options  totaling  approximately  $645,000.  A  portion  of the  warrants
exercised in the current  quarter were issued in a private  placement  and would
have expired in June 2002.  These were  exercised in exchange for the  Company's
commitment to issue  147,850 new warrants with an expiration  date of March 2003
and at an exercise price of $1.348 per share.

Cash, cash  equivalents and marketable  securities  totaled $2.6 million at June
30, 1998 compared to $1.9 million at March 31, 1998. The increase
resulted  primarily  from cash proceeds  received from issuance of the Company's
common stock pursuant to warrant and stock option  exercises offset by operating
cash requirements, capital asset purchases, increases in product inventories and
reduction in certain short term liabilities.

Inventories increased from $1.9 million at March 31, 1998 to $2.1 million
at June 30,  1998 due to the  volume of units sold being less than the volume of
units produced.

The Company  believes that its current cash  position,  combined with  revenues,
other cash  receipts,  proceeds from the exercise of stock warrants and options,
proceeds  from the issuance of the  Company's  Series C preferred  stock to Elan
pursuant to  agreements  entered into in  connection  with the joint venture and
proceeds from the purchase by Elan of additional stock in JV, will be sufficient
to fund the  Company's  operations  through the end of fiscal 1999. In addition,
the Company is considering a number of other potential  financing  alternatives.
Even if the Company is successful in raising  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 additional 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")

<PAGE>

GOVERNMENTAL REGULATION

No clearances from the FDA have been obtained for marketing of the blood glucose
monitoring  technology  presently being developed by the Company. The Company is
researching and has not finally  determined which FDA device  clearances will be
required with respect to any products developed based on this technology.  Based
upon FDA clearance of a prior product,  the Company  believed that the FDA would
allow the blood  glucose  monitor to be  cleared  for  marketing  under a 510(k)
premarket  notification.  If a medical  device  does not  qualify for the 510(k)
procedure,  the manufacturer must file a premarket approval ("PMA") application.
A PMA must show that the device is safe and  effective  and is  generally a more
complex  submission than a 510(k)  notification.  A PMA typically  requires more
extensive  testing  before  regulatory  filing and a longer FDA review  process.
MiniMed,  Inc.,  developer of a continuous  glucose sensor system which had been
submitted to the FDA for clearance  under a 510(k)  notification  was advised in
July  1998  that the FDA  would  require  regulatory  submission  under  the PMA
regulatory pathway. Because the Company has allowed a significant amount of time
in its product  development  schedule for  submitting to the FDA for  regulatory
clearance,  it  believes  that if the FDA  requires a PMA  rather  than a 510(k)
submission,  the  overall  product  development  schedule  may not be  adversely
affected.  (See  "Forward  Looking  Statements")  Whatever  level of  regulatory
submission  is required,  the Company  anticipates  that  extensive  testing and
regulatory  review will be required of the Company's  blood  glucose  monitoring
product.  There can be no assurance that the regulatory  review process will not
cause significant delays in the product development  schedule or that regulatory
clearance will be obtained at all.


FORWARD LOOKING STATEMENTS

This  report  contains  "forward  looking  statements"  concerning,  among other
things,  the  Company's  strategic  relationships  with Merck and  GeneMedicine,
future  product  development  plans in the  blood  glucose  monitoring  business
segment,  anticipated  unit sales  volumes and cost  reduction  prospects in the
needle-free  business  segment,  expected  sufficiency of capital  resources and
future  sources  of working  capital,  that are made  within the  meaning of the
Private  Securities  Litigation  Reform  Act of 1995.  Certain  forward  looking
statements are identified with a cross-reference  to this section.  Such forward
looking  statements  involve known and unknown  risks,  uncertainties  and other
factors which may cause the actual  results,  performance or achievements of the
Company,  or  industry  results,  to be  materially  different  from any  future
results,  performance,  or  achievements  expressed  or implied by such  forward
looking  statements.  Such risks,  uncertainties  and factors  include,  without
limitation and inclusive of risks,  uncertainties and other factors contained in
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations - Overview" and "-Liquidity and Capital Resources" as well as: i) the
risk that  current  strategic  partnerships  will not  develop  into  long-term,
revenue-producing   relationships;  ii)  the  risk  that  research  and  product
development  efforts will not produce the desired  results;  iii)  uncertainties
relating to the time and cost required to complete research and development; iv)
uncertainties  related  to  obtaining  necessary  clinical  data and  regulatory
clearances;  v) dependence on the continued  performance of strategic  partners;
and vi) the availability of additional financing at times and in such amounts as
are necessary to continue to fund the Company's operations.  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/A
for the year ended March 31, 1998.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

<PAGE>

PART II
OTHER INFORMATION

Item 1.   Legal Proceedings

   None during the quarter ended June 30, 1998.


Item 2.   Changes in Securities

     In December  1996, the Company  completed two private  placements of units,
each unit  consisting  of one share of Common  Stock and one warrant to purchase
one share of Common Stock at an exercise price of $1.00. In June 1998,  warrants
to purchase 500,000 shares of Common Stock were exercised.

     In June and July 1997, the Company  completed a private placement of units,
each unit  consisting  of one share of Common  Stock and one warrant to purchase
one-half share of Common Stock at an exercise price of $0.71 per share. In April
1998, 1,478,490 shares were issued upon exercise of the warrants in exchange for
the Company's  commitment to issue 147,850 new warrants with an expiration  date
of March 2003 and at an exercise price of $1.348 per share.

     In  September  1997,  the  Company  issued to Raphael  L.L.C.  a warrant to
purchase a total of 100,000  shares of Common Stock of the Company at a price of
$0.85.  In June 1998,  warrants to purchase  20,000  shares of common stock were
exercised.

     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)  the  purchaser
represented  and the  Company  reasonably  believed  that the  purchaser  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,  (iii)  the  purchaser  was  provided  access to all  necessary  and
adequate  information  to enable the  purchaser to evaluate the  financial  risk
inherent in making an investments,  and (iv) the purchaser  represented  that it
was acquiring the shares for itself and not for distribution.

     Aggregate  proceeds  to the  Company  from the  warrant  exercises  totaled
approximately $1.56 million.

Item 3.   Defaults Upon Senior Securities

   None during the quarter ended June 30, 1998.

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

   None during the quarter ended June 30, 1998.

<PAGE>

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 10, 1999 for the Company's 1999 Annual Meeting.

     In the event a shareholder  does not notify the Company by June 22, 1999 of
an  intent  to be  present  at the 1999  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

   None during the quarter ended June 30, 1998.


EXHIBITS:

  27.1  Financial Data Schedule

REPORTS ON FORM 8-K:

  None during the quarter ended June 30, 1998.


                                    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 14, 1998              /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
[{"type": "10-Q", "sequence": "1", "description": "QUARTERLY REPORT AS JUNE 30, 1998", "secsgml_size_bytes": 47523}]
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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, 1998

                           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, 1998 there were 27,808,493  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. (BMT), 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  injection  operations  are conducted by Bioject Inc.
(BI), an Oregon  corporation  formed in February  1985,  which is a wholly owned
subsidiary  of BMT,  and its blood  glucose  monitoring  technology  development
operations  are  conducted  by  Bioject JV  Subsidiary  Inc.  ("JV"),  an Oregon
corporation formed in October 1997, which is owned 80.1% by BMT.

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,
1999.  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, 1998 and June 30, 1997

     -    Consolidated Balance Sheets dated June 30, 1998 and March 31, 1998

     -    Consolidated Statements of Cash Flows for the quarters ended
          June 30, 1998 and June 30, 1997
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS

                                                   Three Months Ended
                                                        June 30,
                                                  1998            1997
                                                       (Unaudited)
                                               -------------------------

REVENUES:

     Net sales of products                     $ 142,411       $ 342,614
     Licensing/technology fees                   138,001         125,000
                                               -----------     ---------
                                                 280,412         467,614
                                               -----------   -----------
EXPENSES:

     Manufacturing                                271,014        458,994
     Research and development                   1,057,717        253,982
     Selling, general and administrative          781,148        753,842
                                               -----------   -----------
     Total operating expenses                   2,109,879      1,466,818
                                               -----------   -----------
     Operating loss                            (1,829,467)      (999,204)
       Other income                                22,712          6,630
                                                ----------    ----------
     Loss before taxes                         (1,806,755)    (  992,574)
     Provision for income taxes                         -              -
                                               -----------   -----------
     Net Loss                                  (1,806,755)    (  992,574)
     Preferred stock dividend                     346,350              -
                                               ------------    ----------
Net loss allocable to
common shareholders                           ($2,153,105)     ($992,574)
                                               ============   ===========

Basic and diluted net loss per
common share                                       ($0.08)        ($0.05)
                                               ===========    ===========

Shares used in per share calculation            26,912,231     19,789,582
                                               ===========   ===========

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,
                                                   1998            1998
                                                (Unaudited)
                                                --------------------------
ASSETS
------------------------------------------
CURRENT ASSETS:
     Cash and cash equivalents                  $ 2,578,789    $ 1,900,839
     Accounts receivable, net                        93,906        153,721
     Inventories                                  2,069,834      1,891,970
     Other current assets                            83,039         75,292
                                                  ---------    -----------
   Total current assets                           4,825,568      4,021,822

PROPERTY AND EQUIPMENT, at cost:
     Machinery and equipment                      2,367,671      2,241,904
     Production molds                             1,945,267      1,945,267
     Furniture and fixtures                         179,654        158,477
     Leasehold improvements                          94,115         94,115
                                                -----------    -----------
                                                  4,586,707      4,439,763
     Less - Accumulated depreciation             (2,108,502)    (1,947,006)
                                                -----------    -----------
                                                  2,478,205      2,492,757
OTHER ASSETS                                        475,466        463,031
                                                -----------    -----------
                                                $ 7,779,239    $ 6,977,610
                                                ===========    ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------
CURRENT LIABILITIES:
     Accounts payable                           $   424,008    $   497,180
     Accrued payroll                                201,763        218,424
     Other accrued liabilities                      996,657        277,122
     Deferred revenue                               124,999         10,000
                                                -----------    -----------
   Total current liabilities                      1,747,427      1,002,726

SHAREHOLDERS' EQUITY:
Preferred stock, no par,  10,000,000 shares
     authorized;  issued and outstanding
     Series A Convertible-692,694 shares,
       $15 stated value                           8,153,639      7,826,157
     Series B Convertible -134,333 shares,
       $15 stated value                           1,510,157      1,491,289
     Common stock, no par, 100,000,000
       shares authorized; issued and
       outstanding 27,808,493 shares at
       June 30, 1998 and 25,503,038 at
       March 31, 1998                            49,420,980     47,557,297
     Accumulated deficit                        (53,052,964)   (50,899,859)
                                                -----------    -----------
   Total shareholders' equity                     6,031,812      5,974,884
                                                -----------    -----------
                                                $ 7,779,239    $ 6,977,610
                                                ===========    ===========

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,
                                                      1998           1997
                                                          (Unaudited) 
                                                --------------------------

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss applicable to common
       shareholders                             ($2,153,105)     ($992,574)
     Adjustments to net loss:
       Depreciation and amortization                171,237        107,505
       Contributed capital for services              13,818              -
       Preferred stock dividends                    346,350
     Net changes in assets and liabilities:
       Accounts receivable                           59,815         95,986
       Inventories                                 (177,864)        67,351
       Other current assets                          (7,747)       (36,018)
       Accounts payable                             (73,173)      (138,125)
       Accrued payroll                              (16,661)       (61,465)
       Other accrued liabilities                    719,535         31,006
       Deferred revenue                             114,999       (125,000)
                                                -----------    -----------
     Net cash used in operating activities       (1,002,796)    (1,051,334)
                                                -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Property and equipment                        (146,944)      ( 10,228)
     Other assets                                  ( 22,175)      ( 11,070)
                                                 -----------    -----------
     Net cash used in investing activities         (169,119)      ( 21,298)
                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Cash proceeds from common stock              1,849,865        750,000
                                                 ----------      ----------
     Net cash provided by financing activities:   1,849,865        750,000
                                                 ----------      ----------

CASH AND CASH EQUIVALENTS:
     Net increase (decrease) in cash and
       cash equivalents                             677,950       (322,632)
     Cash and cash equivalents at beginning
       of period                                  1,900,839      2,116,478
                                                -----------    -----------
     Cash and cash equivalents at end
       of period                                $ 2,578,789    $ 1,793,846
                                                ===========    ===========

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. ("BMT"),
an Oregon Corporation, and its wholly owned subsidiary,  Bioject Inc., an Oregon
Corporation  ("BI"), and its 80.1% owned subsidiary,  Bioject JV Subsidiary Inc.
("JV"), an Oregon corporation.  All significant  intercompany  transactions have
been eliminated. Although Bioject Inc. commenced operations in 1985, the Company
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. Bioject JV Subsidiary Inc. was formed in October 1997 in connection
with a joint  venture  arrangement  with Elan  Corporation,  plc  ("Elan").  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  Corporation,  plc ("Elan") for the development and
commercialization  of certain  blood  glucose  monitoring  technology  which the
Company  licensed  from Elan.  The blood glucose  monitoring  technology is also
subject to  government  regulation  in the U.S. by the FDA and abroad by various
agencies.

The Company's  revenues to date have been derived  primarily  from licensing and
technology fees for the needle-free  injection technology and more recently from
sales of the Biojector  2000 system and Biojector  syringes to public health and
flu immunization clinics. Future revenues will depend upon acceptance and use by
healthcare  providers of the  Company's  needle-free  injection  technology  and
successful  development,  regulatory approval and market acceptance of its blood
glucose  monitoring  technology.  Uncertainties  over government  regulation and
competition  in  the  healthcare   industry  may  impact   healthcare   provider
expenditures  and third party  payer  reimbursements.  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,
                                       1998            1998
                                    ----------      ----------

    Raw Materials                   $  703,778      $  754,715
    Work in Process                      9,763           9,763
    Finished Goods                   1,356,293       1,127,492
                                    ----------      ----------
                                    $2,069,834      $1,891,970
                                    ==========      ==========

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 earnings per share
calculations as their effect would have been antidilutive:

  Three Months Ended June 30,             1998             1997
                                       ----------       ---------
    Warrants and stock options          9,594,642       6,927,681
    Convertible preferred stock         8,270,270               -
                                       ----------       ---------
                                       17,864,912       6,927,681
                                       ==========       ==========

3.   RELATED PARTY TRANSACTION

A significant  portion of the expenses of the blood glucose monitoring  business
segment  are  incurred  by Elan and billed to the  Company  under a  contractual
arrangement between the two companies.  Included in other accrued liabilities at
June 30, 1998 is approximately $754,000 owed to Elan under this arrangement.
4.   SEGMENT INFORMATION

The Company has adopted  the  segment  reporting  requirements  of SFAS No. 131,
Disclosures about Segments of an Enterprise and Related Information. At present,
the Company has two reportable  segments which offer different  products and are
managed  separately.  Each business requires different  technology and marketing
strategies.  The following sets forth the unaudited results of operations of the
Company for its two segments of  operations - needle-free  injection  technology
and blood glucose monitoring technology (in thousands):

                                Needle-free Injection   Blood glucose Monitoring
                                Three Months Ended       Three Months Ended
                                    June 30,                    June 30,
                                 ------------------        -------------------
                                  1998        1997           1998       1997
                                 -------    -------        --------   -------
   REVENUES:
     Net sales of products     $ 142,411   $342,614        $     0    $  0
     Licensing/technology fees   138,001    125,000              0       0
                                 -------    -------        --------   --------
                                 280,412    467,614              0       0
                                 -------    -------        --------   --------
   EXPENSES:
     Manufacturing               271,014    458,994              0       0
     Research & development      244,586    253,982        813,131       0
     Selling, general
      & administrative           608,630    753,842        172,518       0
                               ---------  ---------       --------    ------
     Total operating expenses  1,124,230  1,466,818        985,649       0
                               ---------  ---------       ---------   ------

   Operating loss              (843,818)  (999,204)       (985,649)      0
      Other income               22,712      6,630               0       0
                               ---------  ---------       --------    ------
   Loss before taxes           (821,106)  (992,574)       (985,649)      0
   Provision for income taxes         0          0               0       0
                                 -------     ------       --------   -------
   Net loss                   $(821,106) $(992,574)      $(985,649)   $  0
                              ========== ===========     ==========  =======

At June 30, 1998, the blood glucose monitoring business segment had net property
and equipment,  at cost, of $98,683 and accounts payable and accrued expenses of
approximately  $754,000.  The blood glucose  monitoring  business segment had no
other  significant  assets or liabilities at June 30, 1998.  Accordingly,  after
separating the blood glucose monitoring business segment assets and liabilities,
the accompanying  consolidated  balance sheets effectively  represent the assets
and liabilities of the needle-free  injection  business segment.  In the future,
certain  proceeds  from  the sale of  equity  or  issuance  of debt by JV may be
restricted  to JV  operations.  To the extent that they meet  certain  reporting
requirements,  the separate assets, liabilities and equity of the parent and its
subsidiary will be appropriately disclosed.

5.   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 1999.  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.
6.   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/A for the year ended March
31, 1998.

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

OVERVIEW

The Company  continues to focus on maintaining its  penetration  into the public
health  and  flu  immunization  markets  with  its  Biojector  2000  needle-free
injection  system.  The Company is also  directing its sales efforts at creating
sales of the Biojector 2000 system to the U.S.  military.  At the same time, the
Company  is  actively  seeking   relationships  with  major  pharmaceutical  and
biotechnology  companies in key niche markets to market its needle-free products
for specific applications and to develop other application-specific  devices and
companion syringes.

Subsequent to quarter end, in July 1998,  the Company  entered into an agreement
with  Merck  & Co,  Inc.  ("Merck"),  a  worldwide  leader  in the  development,
manufacture  and sale of a broad range of human and animal  health  products and
services.  The agreement provides Merck the rights to use the Biojector 2000 jet
injection  system with selected Merck vaccines.  The Company  believes that this
agreement is the first step in establishing a long-term relationship between the
two companies  whereby Merck will use the  Company's  needle-free  technology in
connection  with certain of its  vaccines.  There can be no assurance  that such
long-term relationship will be established. (See "Forward Looking Statements").

Also  subsequent  to quarter  end,  in July 1998,  the  Company  entered  into a
collaborative  research  agreement with  GeneMedicine,  Inc.  ("GeneMedicine") a
developer of gene medicines and genetic  vaccine  technologies  for treatment or
prevention  of a  wide  range  of  diseases.  This  collaboration  involves  the
continued  refinement of the Biojector  2000 jet injection  system  coupled with
GeneMedicine's unique gene-based delivery platforms to create a combined product
that will enhance the delivery and activity of plasmid-based  genetic  vaccines.
The agreement  contemplates that combined products  developed as a result of the
research  collaboration  will be marketed to third party corporate  partners for
commercialization  and sale rather than being  commercialized  or sold by either
Bioject  or  GeneMedicine.  There  can be no  assurance  that the  collaborative
alliance will result in marketable products. Further, should marketable products
be  developed  as a  result  of  the  collaborative  alliance,  there  can be no
assurance that the companies will be successful  either at locating  appropriate
third party corporate partners or at entering into the necessary agreements with
those  partners  to  commercialize  and sell the  products  so  developed.  (See
"Forward Looking Statements").  Additionally, should such products be developed,
there can be no  assurance  that they will  receive  the  required  governmental
clearance.

Through  its joint  venture  with Elan the  Company is  actively  engaged in the
development of its continuous blood glucose monitoring technology.  To date, the
Company has continued testing and development of a clinical prototype.  In April
1998,  a  small,  human  clinical  study  with a  prototype  of the  device  was
conducted.  The prototype device was used to monitor the blood glucose levels of
six  diabetes  patients for fifteen  continuous  hours.  The system  tracked the
patients' actual blood glucose levels against whole blood reference samples with
significant  levels of  accuracy.  The Company is planning  further  preliminary
clinical studies as development of the product  continues.  Based on the results
of these studies, the Company will then plan and conduct comprehensive  clinical
trials of the monitoring  system which are intended to support its  applications
to the FDA to market the product in the United  States.  (See  "Forward  Looking
Statements")

The  Company's  revenues  to date have not been  sufficient  to cover  operating
expenses.  The  Company  believes  that  sales  volumes  will  increase  as  its
needle-free injection products achieve greater market penetration,  both through
continued direct sales efforts and through corporate marketing relationships. If
sales  volume  increases  and  can be  coupled  with  further  reduction  of the
Company's  product  costs,  its cost of goods with  respect  to the  needle-free
injection  products as a percentage  of sales will decrease and the Company will
realize positive margins.  However, in addition to funding the operations of its
needle-free  injection  business,  the Company is  required to fund  substantial
research and  development  costs  associated  with  developing the blood glucose
monitoring  technology.  Since no revenue from blood glucose monitoring products
is expected for a number of years,  the Company  expects  larger  losses  unless
sales of the  Biojector  2000  increase  substantially.  (See  "Forward  Looking
Statements") The level of sales required to generate net income will be affected
by a number of factors  including  the pricing of the  Company's  products,  its
ability to attain volume  purchasing  and  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 be  able  to  successfully
implement  additional  manufacturing  cost  reductions  or sell its  needle-free
injection products at prices or in volumes  sufficient to achieve  profitability
or to offset  increases in the Company's  research and  development  expenses or
other costs should they occur.

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)  timing  of new  product  introductions  by the  Company  and its
competition,  (ii) the cost and length of time required to complete  development
and  commercialization  of, and gain regulatory  clearance for the blood glucose
monitoring  technology,  (iii)  length  of time to  close  product  sales,  (iv)
customer  budget  cycles,   (v)  success  in  implementing   manufacturing  cost
reductions,  (vi) uncertainties and changes in customer purchases due to changes
third  party  reimbursement  policies  and  overall  market  pressure to contain
increases in  healthcare  spending,  and (vii) the timing and amount of payments
under technology development and licensing agreements.
During fiscal 1999,  the Company will continue to focus its efforts on expanding
sales of existing  products,  commencing  manufacture  and sale of the  Vitajet,
commencing  manufacture  and  sale  of the  B4000  Self-Injector  if  regulatory
clearance is obtained, reducing the cost of its products, continuing development
and  cooperation  in pursuing  regulatory  clearance  of a 1.5 ml.  injector for
Hoffmann-La Roche, developing the blood glucose monitoring technology,  pursuing
product licensing and development opportunities under the Merck and GeneMedicine
agreements,  pursuing  additional  alliances with  pharmaceutical  companies and
conserving  its financial  resources.  The Company does not expect to report net
income from operations in fiscal 1999. (See "Forward Looking Statements")

RESULTS OF OPERATIONS

QUARTER  ENDED JUNE 30,  1998  COMPARED TO QUARTER  ENDED JUNE 30, 1997  Product
sales decreased from $343,000 in the first quarter of fiscal 1998 to $142,000 in
the first  quarter of fiscal  1999.  The sales  decrease was due to smaller than
expected flu season  reorders,  principally  from one major  municipal  customer
which had sufficient  supplies of the Company's  products carrying over from the
prior year to satisfy its requirements  through the current immunization season.
License and  technology  revenues  increased to $138,000 in the current  quarter
compared  to  $125,000  in the  same  quarter  a year ago due to the  timing  of
recognizing revenue relating to strategic partner development payments.

Manufacturing  expense  decreased  from the first  quarter of fiscal 1998 to the
first  quarter of fiscal  1999 by  $188,000  due to lower  unit  sales  volumes,
resulting  in a lower  cost  of  goods  sold,  coupled  with  higher  levels  of
production which resulted in higher  absorption of  manufacturing  overhead into
inventory. Research and development expense increased from $254,000 in the first
quarter of fiscal 1998 to $1.06 million in the first quarter of fiscal 1999. The
increase was due primarily to the Company assuming responsibility,  beginning in
the current quarter,  for funding the research and development cost of the blood
glucose  monitoring  technology.  The Company incurred  $813,000 of research and
development costs in the current quarter to develop the blood glucose monitoring
technology  as compared to no spending in the same quarter a year ago.  Selling,
general and administrative  expense increased from $754,000 in the first quarter
of fiscal 1998 to $781,000 in the first quarter of fiscal 1999.  Selling expense
for the current quarter decreased by $167,000 when compared with the same period
a year ago, a result of  reductions  in the  Company's  direct sales force.  The
savings in selling expenses were offset by a $194,000 increase in administrative
spending,  primarily  relating to  administrative  costs of the Company's  blood
glucose  monitoring  development  operations.  The overall  result was a $27,000
increase in selling  general and  administrative  expense for the quarter  ended
June 30, 1998 as compared to the quarter ended June 30, 1997.

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

On a segment basis, the needle-free  injection operations reported a net loss of
$821,000  for the  quarter-ended  June  30,  1998 as  compared  to a net loss of
$993,000  for the quarter  ended June 30,  1997.  The  improved  performance  is
primarily  the result of reduced  spending the area of sales and  marketing  and
higher interest earned on comparatively higher cash balances.
The blood glucose  monitoring  business  segment reported a net loss of $986,000
for the  quarter  ended  June 30,  1998.  Due to the  recent  formation  of this
business  segment,  there was no  corresponding  operating  result for the first
quarter of fiscal 1998.

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, 1998 totaled approximately $46.5 million.

During the first quarter of fiscal 1999 the Company raised  approximately  $1.85
million  from  issuance  of capital  stock.  $1.56  million  of that  amount was
proceeds  from the  exercise  of warrants  issued in  connection  with  previous
private  placements of the Company's common stock and $290,000 was proceeds from
the exercise of stock options. Subsequent to the end of the quarter, during July
1998, the Company received additional proceeds from the exercise of warrants and
stock  options  totaling  approximately  $645,000.  A  portion  of the  warrants
exercised in the current  quarter were issued in a private  placement  and would
have expired in June 2002.  These were  exercised in exchange for the  Company's
commitment to issue  147,850 new warrants with an expiration  date of March 2003
and at an exercise price of $1.348 per share.

Cash, cash  equivalents and marketable  securities  totaled $2.6 million at June
30, 1998 compared to $1.9 million at March 31, 1998. The increase
resulted  primarily  from cash proceeds  received from issuance of the Company's
common stock pursuant to warrant and stock option  exercises offset by operating
cash requirements, capital asset purchases, increases in product inventories and
reduction in certain short term liabilities.

Inventories increased from $1.9 million at March 31, 1998 to $2.1 million
at June 30,  1998 due to the  volume of units sold being less than the volume of
units produced.

The Company  believes that its current cash  position,  combined with  revenues,
other cash  receipts,  proceeds from the exercise of stock warrants and options,
proceeds  from the issuance of the  Company's  Series C preferred  stock to Elan
pursuant to  agreements  entered into in  connection  with the joint venture and
proceeds from the purchase by Elan of additional stock in JV, will be sufficient
to fund the  Company's  operations  through the end of fiscal 1999. In addition,
the Company is considering a number of other potential  financing  alternatives.
Even if the Company is successful in raising  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 additional 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")
GOVERNMENTAL REGULATION

No clearances from the FDA have been obtained for marketing of the blood glucose
monitoring  technology  presently being developed by the Company. The Company is
researching and has not finally  determined which FDA device  clearances will be
required with respect to any products developed based on this technology.  Based
upon FDA clearance of a prior product,  the Company  believed that the FDA would
allow the blood  glucose  monitor to be  cleared  for  marketing  under a 510(k)
premarket  notification.  If a medical  device  does not  qualify for the 510(k)
procedure,  the manufacturer must file a premarket approval ("PMA") application.
A PMA must show that the device is safe and  effective  and is  generally a more
complex  submission than a 510(k)  notification.  A PMA typically  requires more
extensive  testing  before  regulatory  filing and a longer FDA review  process.
MiniMed,  Inc.,  developer of a continuous  glucose sensor system which had been
submitted to the FDA for clearance  under a 510(k)  notification  was advised in
July  1998  that the FDA  would  require  regulatory  submission  under  the PMA
regulatory pathway. Because the Company has allowed a significant amount of time
in its product  development  schedule for  submitting to the FDA for  regulatory
clearance,  it  believes  that if the FDA  requires a PMA  rather  than a 510(k)
submission,  the  overall  product  development  schedule  may not be  adversely
affected.  (See  "Forward  Looking  Statements")  Whatever  level of  regulatory
submission  is required,  the Company  anticipates  that  extensive  testing and
regulatory  review will be required of the Company's  blood  glucose  monitoring
product.  There can be no assurance that the regulatory  review process will not
cause significant delays in the product development  schedule or that regulatory
clearance will be obtained at all.

FORWARD LOOKING STATEMENTS

This  report  contains  "forward  looking  statements"  concerning,  among other
things,  the  Company's  strategic  relationships  with Merck and  GeneMedicine,
future  product  development  plans in the  blood  glucose  monitoring  business
segment,  anticipated  unit sales  volumes and cost  reduction  prospects in the
needle-free  business  segment,  expected  sufficiency of capital  resources and
future  sources  of working  capital,  that are made  within the  meaning of the
Private  Securities  Litigation  Reform  Act of 1995.  Certain  forward  looking
statements are identified with a cross-reference  to this section.  Such forward
looking  statements  involve known and unknown  risks,  uncertainties  and other
factors which may cause the actual  results,  performance or achievements of the
Company,  or  industry  results,  to be  materially  different  from any  future
results,  performance,  or  achievements  expressed  or implied by such  forward
looking  statements.  Such risks,  uncertainties  and factors  include,  without
limitation and inclusive of risks,  uncertainties and other factors contained in
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations - Overview" and "-Liquidity and Capital Resources" as well as: i) the
risk that  current  strategic  partnerships  will not  develop  into  long-term,
revenue-producing   relationships;  ii)  the  risk  that  research  and  product
development  efforts will not produce the desired  results;  iii)  uncertainties
relating to the time and cost required to complete research and development; iv)
uncertainties  related  to  obtaining  necessary  clinical  data and  regulatory
clearances;  v) dependence on the continued  performance of strategic  partners;
and vi) the availability of additional financing at times and in such amounts as
are necessary to continue to fund the Company's operations.  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/A
for the year ended March 31, 1998.

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, 1998.

Item 2.   Changes in Securities

     In December  1996, the Company  completed two private  placements of units,
each unit  consisting  of one share of Common  Stock and one warrant to purchase
one share of Common Stock at an exercise price of $1.00. In June 1998,  warrants
to purchase 500,000 shares of Common Stock were exercised.

     In June and July 1997, the Company  completed a private placement of units,
each unit  consisting  of one share of Common  Stock and one warrant to purchase
one-half share of Common Stock at an exercise price of $0.71 per share. In April
1998, 1,478,490 shares were issued upon exercise of the warrants in exchange for
the Company's  commitment to issue 147,850 new warrants with an expiration  date
of March 2003 and at an exercise price of $1.348 per share.

     In  September  1997,  the  Company  issued to Raphael  L.L.C.  a warrant to
purchase a total of 100,000  shares of Common Stock of the Company at a price of
$0.85.  In June 1998,  warrants to purchase  20,000  shares of common stock were
exercised.

     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)  the  purchaser
represented  and the  Company  reasonably  believed  that the  purchaser  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,  (iii)  the  purchaser  was  provided  access to all  necessary  and
adequate  information  to enable the  purchaser to evaluate the  financial  risk
inherent in making an investments,  and (iv) the purchaser  represented  that it
was acquiring the shares for itself and not for distribution.

     Aggregate  proceeds  to the  Company  from the  warrant  exercises  totaled
approximately $1.56 million.

Item 3.   Defaults Upon Senior Securities

   None during the quarter ended June 30, 1998.

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

   None during the quarter ended June 30, 1998.
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 10, 1999 for the Company's 1999 Annual Meeting.

     In the event a shareholder  does not notify the Company by June 22, 1999 of
an  intent  to be  present  at the 1999  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

   None during the quarter ended June 30, 1998.

EXHIBITS:

  27.1  Financial Data Schedule

REPORTS ON FORM 8-K:

  None during the quarter ended June 30, 1998.

                                    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 14, 1998              /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