U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 12b-25
                                  SEC File No:
                       NOTIFICATION OF LATE FILING 0-12968

                               Form 10-K or 10-KSB

                       For Period Ended December 31, 1996


         Nothing in this form shall be  construed  to imply that the  Commission
has verified any information contained herein.

         If the  notification  relates to a portion of the filing checked above,
identify the Item(s) to which the notification relates:

                  Not applicable. The filing relates to the entire Form 10KSB.

Part I--Registrant Information

            Full Name of Registrant: INMEDICA DEVELOPMENT CORPORATION

                     Address of Principal Executive Office:
                          60 South 600 East, Suite 150

              City, State and Zip Code: Salt Lake City, Utah 84102


Part II--Rules 12b-25(b) and (c)

         If the subject report could not be filed without unreasonable effort or
expense  and  the  registrant  seeks  relief  pursuant  to Rule  12b-25(b),  the
following should be completed. (Check box if appropriate)

[X] (a) The  reasons  described  in  reasonable detail in Part  III of this form
could not be eliminated without unreasonable effort or expense;

[X] (b) The subject annual report or semi-annual  report/portion thereof will be
filed on or before the fifteenth calendar day following the prescribed due date;
or the subject quarterly  report/portion  thereof will be filed on or before the
fifth calendar day following the prescribed due date; and

[ ] (c) The accountant's statement  or other exhibit required by  Rule 12b-25(c)
has been attached if applicable.


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Part III--Narrative

         State below in reasonable detail the reasons why Form 10-K or 10-KSB or
         portion thereof could not be filed within the prescribed time period.

         The reason the report could not be timely filed is that the Company was
         advised  shortly  before   completing  the  report  that  certain  data
         computations  were  necessary for  financial  footnote  disclosure  not
         previously  required in the report.  The Company was unable to complete
         the data computations in time for filing of the report.

Part IV--Other Information

         (1)      The person to contact in regard to this notification is:

               Scott R. Jenkins               (801)531-8300

         (2) Have all other periodic  reports required under section 13 or 15(d)
of the Securities  Exchange Act of 1934 or section 30 of the Investment  Company
Act of 1940 during the  preceding 12 months or for such shorter  period that the
registrant was required to file such report(s) been filed?  If the answer is no,
identify report(s).          [X] Yes [ ] No

         (3) Is it  anticipated  that  any  significant  change  in  results  of
operations  from the  corresponding  period  for the last  fiscal  year  will be
reflected by the  earnings statements  to be included in the  subject  report or
portion thereof?                     [X] Yes [ ] No

         If  so:  attach  an  explanation  of  the  anticipated   change,   both
narratively and  quantitatively,  and, if  appropriate,  state the reasons why a
reasonable estimate of results cannot be made.

     Recognized revenues for the year are expected to be approximately  $725,000
compared to $693,440 for the 1995 year, due to increased royalty  revenues.  The
Company's general and administrative  expenses for the 1996 year are expected to
be  approximately  $140,000 greater than those for the prior year, due to option
expense and increased administrative expense incident to a dispute with a former
officer of the  Company.  Research and  development  expenses are expected to be
approximately  $150,000  for  the  current  year as  compared  to  research  and
development  expenditures  during the prior year of about  $203,000.  The higher
figure in the 1995  fiscal year was due to the  purchase  of certain  hematocrit
technology in 1995. In spite of increased general and administrative expenses in
1996,  net income for the 1996 year is expected to be about $160,000 as compared
to $133,803 (before extraordinary gain) in 1995.

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                        INMEDICA DEVELOPMENT CORPORATION

has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.



Date:  March 28, 1997  By:/s/Richard Bruggeman
                             Richard Bruggeman, Treasurer


INSTRUCTION: The form may be signed by an executive officer of the registrant or
by any other duly  authorized  representative.  The name and title of the person
signing  the form  shall  be typed or  printed  beneath  the  signature.  If the
statement is signed on behalf of the registrant by an authorized  representative
(other than an executive officer), evidence of the representative's authority to
sign on behalf of the registrant shall be filed with the form.

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