FIRST AMENDMENT TO MANAGEMENT SERVICES AND ADMINISTRATIVE AGREEMENT

Exhibit 10.3



                               FIRST AMENDMENT TO
                MANAGEMENT SERVICES AND ADMINISTRATIVE AGREEMENT

         This  FIRST  AMENDMENT  TO  MANAGEMENT   SERVICES  AND   ADMINISTRATIVE
AGREEMENT (this "Amendment") is made effective as of the 1st day of October 2003
by and between BioDelivery Science  International,  Inc., a Delaware corporation
("BDSI"),  and Bioral  Nutrient  Delivery,  LLC, a  Delaware  limited  liability
company ("BND").

         WHEREAS,  BDSI and BND are parties to that certain Management  Services
and Administrative Agreement, dated April 1, 2003 (the "Agreement");

         WHEREAS,  pursuant to Section 18 of the  Agreement,  amendments  to the
Agreement may be made in a writings signed by BDSI and BND;

         WHEREAS,  BDSI and BND desire to amend the  Agreement in the manner set
forth in this Amendment.

         NOW,  THEREFORE,  in light of the foregoing and intending to be legally
bound, BDSI and BND hereby amend the Agreement as follows:

         1. Capitalized Terms.  Unless otherwise defined herein, all capitalized
terms used but not defined herein shall have the meanings ascribed such terms in
the Agreement.

         2.  Extension of Initial  Term. In order to effect the extension of the
Initial Term, the first sentence of Section 1 of the Agreement is hereby deleted
in its entirety and replaced with the following sentence:

         "The term of this  Agreement  shall begin as of the Effective Date and,
unless sooner  terminated in accordance with subsections (a), (b) or (c) of this
Section  1 or any  other  provision  of this  Agreement,  shall  continue  until
December 31, 2004 (such term, the "Initial Term")."

         3. No  Further  Amendment.  Except as  amended  hereby,  the  Agreement
remains unchanged and in full force and effect.




                            [Signature Page Follows]





         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the date first written above.


                                    BIODELIVERY SCIENCES INTERNATIONAL, INC.


                                    By:  /s/ ▇▇▇▇▇▇▇ ▇. ▇'▇▇▇▇▇▇▇, ▇▇.
                                        ----------------------------------------
                                        Name:  ▇▇▇▇▇▇▇ ▇. ▇'▇▇▇▇▇▇▇, ▇▇., M.D.
                                        Title:    President and CEO



                                    BIORAL NUTRIENT DELIVERY, LLC


                                    By:  /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
                                        ----------------------------------------
                                        Name:  ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
                                        Title:   Secretary, Treasurer and CFO


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