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): October 17, 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 October 17, 2005, MEDTOX Scientific, Inc. announced results for the third quarter ended September 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 October 17, 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:   October 17, 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 October 17, 2005.

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EX-99

Exhibit 99.1

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

FOR IMMEDIATE RELEASE

MEDTOX SCIENTIFIC ANNOUNCES THIRD QUARTER RESULTS
NET INCOME INCREASES 45%

ST.  PAUL, October 17, 2005 – MEDTOX Scientific, Inc. (AMEX-TOX) announced today results for the third quarter ended September 30, 2005.

o Revenues increased $2,040,000 to $16,513,000, or 14%

o Consolidated gross margin increased to 44% from 42%

o Operating Income increased $407,000 to $1,688,000, or 32%

o Net Income increased $256,000 to $825,000, or 45%

For the three-month period ended September 30, 2005, revenues increased to $16,513,000 compared to $14,473,000 from the prior-year period. Operating income increased to $1,688,000 compared to $1,281,000 from the prior-year period. The Company recorded net income of $825,000, or $0.10 per diluted share, compared to net income of $569,000, or $0.07 per diluted share, or a 45% increase in net income from the comparable period last year.

For the nine-month period ended September 30, 2005, revenues increased to $48,047,000 compared to $43,120,000, or 11%, from the prior-year period. Operating income increased to $4,650,000 compared to $3,887,000, or 20%, from the comparable period last year. Net income increased to $2,261,000, or $0.28 per diluted share, compared to net income of $1,711,000, or $0.22 per diluted share, or an increase of 32% in net income from the comparable period last year.

Overall, expenses for the quarter were in line with expectations. Total selling, general and administrative expenses for the quarter were 30% of revenues which is comparable with the same period last year. Research and development expenses increased 56% to $552,000 for the quarter from $354,000 in the comparable period last year.

MEDTOX Scientific, Inc.
October 17, 2005
Page 2

MEDTOX will hold a teleconference to discuss third 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 October 17 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 October 24 at 800-642-1687 conference ID #9647412. International callers may access the replay at 706-645-9291 with the same conference ID #9647412.

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.
October 17, 2005
Page 3

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
REVENUES:
Laboratory services	$	12,740		$	10,979		$	36,808		$	32,694
Product sales		3,773			3,494			11,239			10,426
		16,513			14,473			48,047			43,120
COST OF REVENUES:
Cost of services		7,783			7,055			22,758			20,638
Cost of sales		1,470			1,386			4,587			4,096
		9,253			8,441			27,345			24,734
GROSS PROFIT		7,260			6,032			20,702			18,386
OPERATING EXPENSES:
Selling, general and administrative		5,020			4,397			14,264			13,310
Research and development		552			354			1,788			1,189
		5,572			4,751			16,052			14,499
INCOME FROM OPERATIONS		1,688			1,281			4,650			3,887
OTHER INCOME (EXPENSE):
Interest expense		(182	)		(264	)		(620	)		(790	)
Other expense, net		(175	)		(99	)		(383	)		(337	)
		(357	)		(363	)		(1,003	)		(1,127	)
INCOME BEFORE INCOME TAX EXPENSE		1,331			918			3,647			2,760
INCOME TAX EXPENSE		(506	)		(349	)		(1,386	)		(1,049	)
NET INCOME	$	825			569		$	2,261		$	1,711
BASIC EARNINGS PER COMMON SHARE	$	0.10		$	0.08		$	0.30		$	0.23
DILUTED EARNINGS PER COMMON SHARE	$	0.10		$	0.07		$	0.28		$	0.22
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic		7,896,777			7,444,973			7,662,716			7,451,174
Diluted		8,324,880			7,930,347			8,094,210			7,806,901

MEDTOX Scientific, Inc.
October 17, 2005
Page 4

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

	September 30, 2005		December 31, 2004
ASSETS
Cash and cash equivalents	$	674	$	263
Accounts receivable		11,011		8,287
Inventories		3,074		3,624
Other current assets		2,504		2,824
Total current assets		17,263		14,998
Building, equipment and improvements, net		17,753		16,348
Other assets		23,073		24,614
Total assets	$	58,089	$	55,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	8,616	$	12,081
Long-term obligations		5,845		6,090
Stockholders' equity		43,628		37,789
Total liabilities and stockholders' equity	$	58,089	$	55,960