8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 15, 2005

MEDTOX SCIENTIFIC, INC.
(Exact name of registrant as specified in its charter)

Delaware	1-11394	95-3863205
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

402 West County Road D, St. Paul, Minnesota	55112
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (651) 636-7466

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.    Results of Operations and Financial Condition

On July 15, 2005, MEDTOX Scientific, Inc. announced results for the second quarter ended June 30, 2005, as described in the press release attached as Exhibit 99.1.

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Item 9.01.    Financial Statements and Exhibits.

(a) Financial statements of businesses acquired.
Not applicable.

(b) Proforma financial information.
Not applicable.

(c) Exhibits.

        The following exhibit is filed as part of this report:

Exhibit No.	Description
99.1	MEDTOX Scientific, Inc. Press Release, dated July 15, 2005.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MEDTOX Scientific, Inc.
Date:   July 15, 2005	By:          /s/ Richard J. Braun
	Name:     Richard J. Braun
	Title:       Chief Executive Officer

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INDEX TO EXHIBITS

Exhibit No.	Description
99.1	MEDTOX Scientific, Inc. Press Release, dated July 15, 2005.

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EX-99

Exhibit 99.1

MEDTOX Scientific, Inc.
402 West County Road D
St. Paul, MN 55112
Contact: Joseph Jennings (877) 715-7236

FOR IMMEDIATE RELEASE

MEDTOX SCIENTIFIC ANNOUNCES
SECOND QUARTER RESULTS

ST.  PAUL, July 15, 2005 – MEDTOX Scientific, Inc. (AMEX-TOX) announced today results for the second quarter ended June 30, 2005. For the three-month period, revenues increased to $16,845,000, compared to $15,064,000, or 11.8%, from the prior-year period. Operating income increased to $1,950,000 compared to $1,541,000, or 26.5%, from the prior-year period. The Company recorded net income of $1,015,000, or $0.13 per diluted share, compared to net income of $728,000, or $0.09 per diluted share, or a 39.4% increase in net income from the comparable period last year.

For the six-month period ended June 30, 2005, revenues increased to $31,534,000 compared to $28,647,000, or 10.1%, from the prior-year period. Operating income increased to $2,962,000 compared to $2,606,000, or 13.7%, for the comparable period last year. Net income increased to $1,436,000, or $0.18 per diluted share, compared to net income of $1,142,000, or $0.15 per diluted share, or an increase of 25.7% in net income from the comparable period last year.

Overall, expenses for the quarter were in line with expectations. Total operating expenses were 32.9% of revenues for the quarter compared to 33.7% for the comparable period last year. Research and development expenses increased 49.8% to $638,000 for the quarter from $426,000 in the comparable period last year. The Diagnostic segment incurred $148,000, or 69.8%, of the increase.

MEDTOX will hold a teleconference to discuss second quarter 2005 results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). Dialing 800-387-5648 a few minutes prior to the scheduled start time on July 15 will access a listen-only broadcast of the teleconference. International callers may access the call by dialing 706-634-5527. Callers should ask for the MEDTOX quarterly conference call, hosted by Dick Braun, president and CEO of MEDTOX. A simultaneous webcast of the conference call will be available on the MEDTOX website in the “investors” section at www.medtox.com. An audio replay of the conference call will be available through July 22 at 800-642-1687 conference ID #7336289. International callers may access the replay at 706-645-9291 with the same conference ID #7336289.

MEDTOX Scientific, Inc.
July 15, 2005
Page 2

MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory testing services and on-site/point-of-collection (POC) devices. The company also supports customers with complete logistics, data and program management services. MEDTOX is a leader in providing esoteric laboratory testing services to hospitals and laboratories nationwide. This includes both central laboratory and bio-analytical testing for pharmaceutical clinical trials. MEDTOX develops and manufactures diagnostic devices for quick and economical on-site/point-of-collection analysis for drugs-of-abuse, therapeutic drugs and biological and agricultural toxins and provides employment drug screening and occupational health testing. For more information see www.medtox.com.

Note: Forward-looking statements contained in this press release are made under the Private Securities Reform Act of 1995. Actual results may differ due to a number of factors including a change in the employment pattern of client companies, the ability of MEDTOX to acquire new business, and changes in the competitive environment. Further discussions of factors that may cause such results to differ are identified in the Company’s 2004 Annual Report on Form 10-K.

MEDTOX Scientific, Inc.
July 15, 2005
Page 3

MEDTOX SCIENTIFIC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2005			June 30, 2004			June 30, 2005			June 30, 2004
REVENUES:
Laboratory services	$	12,920		$	11,497		$	24,068		$	21,715
Product sales		3,925			3,567			7,466			6,932
		16,845			15,064			31,534			28,647
COST OF REVENUES:
Cost of services		7,750			7,053			14,975			13,583
Cost of sales		1,611			1,398			3,117			2,710
		9,361			8,451			18,092			16,293
GROSS PROFIT		7,484			6,613			13,442			12,354
OPERATING EXPENSES:
Selling, general and administrative		4,896			4,646			9,244			8,913
Research and development		638			426			1,236			835
		5,534			5,072			10,480			9,748
INCOME FROM OPERATIONS		1,950			1,541			2,962			2,606
OTHER INCOME (EXPENSE):
Interest expense		(227	)		(260	)		(438	)		(526	)
Other expense, net		(86	)		(106	)		(208	)		(238	)
		(313	)		(366	)		(646	)		(764	)
INCOME BEFORE INCOME TAX EXPENSE		1,637			1,175			2,316			1,842
INCOME TAX EXPENSE		(622	)		(447	)		(880	)		(700	)
NET INCOME	$	1,015		$	728		$	1,436		$	1,142
BASIC EARNINGS PER COMMON SHARE (1)	$	0.13		$	0.10		$	0.19		$	0.15
DILUTED EARNINGS PER COMMON
SHARE (1)	$	0.13		$	0.09		$	0.18		$	0.15
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic (1)		7,546,972			7,451,628			7,543,746			7,458,696
Diluted (1)		7,929,546			7,825,406			8,070,235			7,776,827

(1)     Share and per share amounts for the three and six months ended June 30, 2004 have been restated for the three-for-two stock split paid on August 20, 2004.

MEDTOX Scientific, Inc.
July 15, 2005
Page 4

MEDTOX SCIENTIFIC, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	June 30, 2005		December 31, 2004
ASSETS
Cash and cash equivalents	$	1,033	$	263
Accounts receivable, net		10,964		8,287
Inventories		3,198		3,624
Other current assets		2,890		2,824
Total current assets		18,085		14,998
Building, equipment and improvements, net		16,919		16,348
Other assets		23,472		24,614
Total assets	$	58,476	$	55,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	13,201	$	12,081
Long-term obligations		5,947		6,090
Stockholders' equity		39,328		37,789
Total liabilities and stockholders' equity	$	58,476	$	55,960