<SUBMISSION>
<ACCESSION-NUMBER>0000906344-04-000202
<TYPE>SC 13D/A
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20041012
<DATE-OF-FILING-DATE-CHANGE>20041012
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>MEDCAP MANAGEMENT & RESEARCH LLC
<CIK>0001279729
<IRS-NUMBER>943411543
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>500 THIRD STREET
<STREET2>SUITE 535
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94107
<PHONE>415-495-1010
</BUSINESS-ADDRESS>
</FILED-BY>
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>CRDENTIA CORP
<CIK>0001073857
<ASSIGNED-SIC>7361
<IRS-NUMBER>760585701
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
<ACT>34
<FILE-NUMBER>005-78465
<FILM-NUMBER>041074822
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>14114 DALLAS PARKWAY
<STREET2>SUITE 600
<CITY>DALLAS
<STATE>TX
<ZIP>75254
<PHONE>972-850-0780
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>14114 DALLAS PARKWAY
<STREET2>SUITE 600
<CITY>DALLAS
<STATE>TX
<ZIP>75254
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>LIFEN INC
<DATE-CHANGED>20001115
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>DIGIVISION INTERNATIONAL LTD
<DATE-CHANGED>20001005
</FORMER-COMPANY>
</SUBJECT-COMPANY>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>crd13d3.txt
<DESCRIPTION>AMENDMENT NO. 3
<TEXT>
                          SCHEDULE 13D
                         (Rule 13d-101)

     Information to be Included in Statements Filed Pursuant
                      to Rule 13d-1(A) and
       Amendments Thereto Filed Pursuant to Rule 13d-2(A)

               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

            Under the Securities Exchange Act of 1934

                    (Amendment No.  3  )*
                                  _____

                         CRDENTIA CORP.
                         ______________
                        (Name of Issuer)

                 Common Stock, $.0001 par value
                 ______________________________
                 (Title of Class of Securities)

                            225235209
                            _________
                         (CUSIP Number)

             Ann E. Carey, Business Legal Assistant
          Howard Rice Nemerovski Canady Falk & Rabkin,
                   A Professional Corporation
               Three Embarcadero Center, Suite 700
                    San Francisco, CA  94111
                         (415) 434-1600
                         ______________
          (Name, Address and Telephone Number of Person
        Authorized to Receive Notices and Communications)

                        September 30, 2004
                        __________________
                  (Date of Event which Requires
                    Filing of this Statement)

    If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check
the following box [ ].

Note:  Schedules filed in paper format shall include a signed original and
five copies of this schedule, including all exhibits.  See Rule 13d-7 for
other parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 2 of 12

The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of
the Act (however, see the Notes).


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 3 of 12

1    Name of Reporting Person              MEDCAP MANAGEMENT & RESEARCH LLC

     IRS Identification No. of Above Person                      94-3411543

2    Check the Appropriate Box if a Member of a Group               (a) [ ]

                                                                    (b) [ ]

3    SEC USE ONLY

4    Source of Funds                                                     OO

5    Check Box if Disclosure of Legal Proceedings is                    [ ]
     Required Pursuant to Items 2(d) or 2(e)

6    Citizenship or Place of Organization                          Delaware

		7    Sole Voting Power                           17,078,937

  NUMBER OF     8    Shared Voting Power                                  0
    SHARES
 BENEFICIALLY   9    Sole Dispositive Power                      17,078,937
OWNED BY EACH
  REPORTING     10   Shared Dispositive Power                             0
 PERSON WITH

11   Aggregate Amount Beneficially Owned by Reporting Person     17,078,937

12   Check Box if the Aggregate Amount in Row 11 Excludes               [ ]
     Certain Shares

13   Percent of Class Represented by Amount in Row 11                 68.4%

14   Type of Reporting Person                                            IA


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 4 of 12

1    Names of Reporting Persons                        MEDCAP PARTNERS L.P.

     IRS Identification Nos. of Above Persons                    94-3412423

2    Check the Appropriate Box if a Member of a Group               (a) [ ]

                                                                    (b) [ ]
3    SEC USE ONLY

4    Source of Funds                                                     WC

5    Check Box if Disclosure of Legal Proceedings is Required
     Pursuant to Items 2(d) or 2(e)                                     [ ]

6    Citizenship or Place of Organization                          Delaware

		7    Sole Voting Power                           17,078,937

  NUMBER OF     8    Shared Voting Power                                  0
    SHARES
 BENEFICIALLY   9    Sole Dispositive Power                      17,078,937
OWNED BY EACH
  REPORTING     10   Shared Dispositive Power                             0
 PERSON WITH

11    Aggregate Amount Beneficially Owned by Reporting Person    17,078,937

12    Check Box if the Aggregate Amount in Row 11 Excludes              [ ]
      Certain Shares

13    Percent of Class Represented by Amount in Row 11                68.4%

14    Type of Reporting Person                                           PN


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 5 of 12

1    Names of Reporting Persons                               C. FRED TONEY

     IRS Identification Nos. of Above Person

2    Check the Appropriate Box if a Member of a Group               (a) [ ]

                                                                    (b) [ ]
3    SEC USE ONLY

4    Source of Funds                                                     OO

5    Check Box if Disclosure of Legal Proceedings is Required
     Pursuant to Items 2(d) or 2(e)                                     [ ]

6    Citizenship or Place of Organization                     United States

		7    Sole Voting Power                           17,078,937

  NUMBER OF     8    Shared Voting Power                                  0
    SHARES
 BENEFICIALLY   9    Sole Dispositive Power                      17,078,937
OWNED BY EACH
  REPORTING     10   Shared Dispositive Power                             0
 PERSON WITH

11    Aggregate Amount Beneficially Owned by Reporting Person    17,078,937

12    Check Box if the Aggregate Amount in Row 11 Excludes              [ ]
      Certain Shares

13    Percent of Class Represented by Amount in Row 11                68.4%

14    Type of Reporting Person                                       IN, HC

<PAGE>
<PAGE>
 CUSIP No. 225235209                 SCHEDULE 13D               Page 6 of 12

Item 1.     Security and Issuer

        This Schedule 13D ("Schedule") relates to shares of common stock,
with par value $.0001 (the "Common Stock"), of Crdentia Corp. (the "Issuer").
The principal executive office of the Issuer is 14114 Dallas Parkway, Suite
600, Dallas, TX 75254.

Item 2.     Identity and Background

        This Schedule is filed on behalf of MedCap Partners L.P. ("MedCap"),
MedCap Management & Research LLC ("MMR") and C. Fred Toney ("Toney"), each
of whose principal business office address is 500 Third Street, Suite 535,
San Francisco, CA 94107.

        MedCap is an investment limited partnership, whose general partner
is MMR.  MMR is an investment adviser registered under the laws of the
State of California.  Toney is MMR's sole managing member.

        None of MedCap, MMR nor Toney has, during the past five years, been
convicted in any criminal proceeding (excluding traffic violations or
similar misdemeanors).

        None of MedCap, MMR nor Toney has, during the past five years, been
a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction, as a result of which any of them became or is
subject to a judgment, decree or final order enjoining future violations of,
or prohibiting or mandating activities subject to, federal or state
securities laws or finding any violation with respect to such laws.

        MedCap is a Delaware limited partnership, MMR is a Delaware limited
liability company and Toney is a United States citizen.

Item 3.     Source and Amount of Funds or Other Consideration

        No funds were required in connection with the conversions and
dividends described in Item 5(c).

Item 4.     Purpose of Transaction

        Medcap holds the Issuer's securities for investment purposes.

        Toney is a member of the Issuer's Board of Directors.

        Except as described herein, the reporting persons do not currently
have any plans or proposals that relate to or would result in any of the
following:

          (a) The acquisition by any person of additional securities of the
     Issuer, or the disposition of securities of the Issuer;

          (b) An extraordinary corporate transaction, such as a merger,
     reorganization, or liquidation, involving the Issuer or any of its
     subsidiaries;

          (c) A sale or transfer of a material amount of assets of the
     Issuer or any of its subsidiaries;

          (d) Any change in the present board of directors or management of
     the Issuer, including any plans or proposals to change the number or
     term of directors or to fill any existing vacancies on the board;

<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 7 of 12

          (e) Any material change in the present capitalization or dividend
     policy of the Issuer;

          (f) Any other material change in the Issuer's business or
     corporate structure;

          (g) Changes in the Issuer's charter, bylaws or instruments
     corresponding thereto or other actions which may impede the acquisition
     of control of the Issuer by any person;

          (h) Causing a class of securities of the Issuer to be delisted
     from a national securities exchange or to cease to be authorized to be
     quoted in an inter-dealer quotation system of a registered national
     securities association;

          (i) A class of equity securities of the issuer becoming eligible
     for termination of registration pursuant to Section 12(g)(4) of the Act;
     or

          (j) Any action similar to those enumerated above.

        Depending upon market conditions and other factors, the reporting
persons may acquire additional securities of the Issuer, or alternatively,
may dispose of some or all of the securities of the Issuer beneficially owned
by them.

Item 5.     Interest in Securities of the Issuer

(a)  MedCap beneficially owns 4,959,937 shares of Issuer's Common Stock,
     3,750,000 shares of Issuer's Series B Preferred Stock, which are
     currently convertible into 1,250,000 shares of Common Stock, and
     29,340 shares of Issuer's Series C Preferred Stock which are currently
     convertible into 2,934,000 shares of Common Stock.  MedCap also owns
     warrants giving it the right to acquire 6,000 shares of Series B-1
     Preferred Stock for $60.00 per share (6,000 shares of Series B-1
     Preferred Stock, in turn, would currently be convertible into 600,000
     shares of Common Stock) and 73,350 shares of Series C Preferred Stock
     for $60.00 per share (73,350 shares of Series C Preferred Stock, in
     turn, would currently be convertible into 7,335,000 shares of Common
     Stock).

     MMR as general partner and investment manager of MedCap and Toney as
     the sole managing member of MMR may be deemed to beneficially own the
     shares owned by MedCap in that they may be deemed to have the power to
     direct the voting or disposition of the shares.  Neither the filing of
     this Schedule 13D nor any of its contents shall be deemed to constitute
     an admission that either MMR or Toney is, for any other purpose, the
     beneficial owner of any such securities to which this Schedule relates,
     and MMR and Toney disclaim beneficial ownership as to the Common Stock
     except to the extent of their respective pecuniary interests therein.
     Based on the number of shares outstanding reported in the Issuer's most
     recent quarterly report on Form 10-QSB and the Issuer's Form 8-K filed
     with the SEC via EDGAR on October 6, 2004, the percentage of Common
     Stock beneficially owned by MedCap, MMR and Toney for the purposes of
     this Schedule 13D is 68.4%.

<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 8 of 12

(b)  Reference is made hereby to Items 7 to 10 of pages 2, 3 and 4 of this
     Schedule, which Items are incorporated herein by reference.

(c)  On September 30, 2004, MedCap elected to convert 2,000,000 shares of
     Issuer's Series A Preferred Stock into 3,333,333 shares of Common Stock
     and 2,500,000 shares of Issuer's Series B Preferred Stock into 833,333
     shares of Common Stock.

     In addition, on September 30, 2004 MedCap received the following
     dividends of Common Stock on the shares of Issuer's Series A
     Preferred, Series B Preferred and Series C Preferred Stock it held on
     September 30, 2004:

     (1) MedCap received a dividend of 250,000 shares of Common Stock on
         the 2,000,000 shares of Series A Preferred Stock it held, payable
         on June 16, 2004, September 16, 2004 and December 16, 2004 in
         consideration for early conversion.

     (2) MedCap received a dividend of 52,083 shares of Common Stock on the
         6,250,000 shares of Series B Preferred Stock it held on September
         30, 2004 and an additional dividend of 62,500 shares of Common
         Stock it would have received on December 31, 2004, March 31, 2005
         and June 30, 2005 had it not previously converted 2,500,000 shares
         of Series B Preferred Stock.

     (3) MedCap received a dividend of 73,350 shares of Common Stock on the
         29,340 shares of Series C Preferred Stock (convertible into
         2,934,000 shares of Common Stock) it held on September 30, 2004.

(d)  Not applicable.

(e)  Not applicable.

Item 6. Contracts, Arrangements, Understandings or Relationships with
        Respect to Securities of the Issuer

        MedCap is a party to an Amended and Restated Registration Rights
Agreement entitling it to registration rights with respect to Common Stock
issuable upon conversion of its shares of Series A Preferred Stock, Series
B Preferred Stock and Series C Preferred Stock, including any Series B-1
Preferred or Series C Preferred issued upon exercise of the Warrants.


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 9 of 12

Item 7.  Material to be Filed as Exhibits

No.  Exhibit
--   -------

1.   Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G

2.   Amended and Restated Registration Rights Agreement between the Issuer
     and MedCap dated August 30, 2004 (included as Exhibit 2 to MedCap's,
     MMR's and Toney's Schedule 13D/A No. 1 filed with the Commission on
     September 3, 2004 and incorporated herein by reference)

3.   Makewell Agreement between certain lenders of the Issuer, the Issuer
     and MedCap dated as of August 30, 2004 (included as Exhibit 3 to
     MedCap's, MMR's and Toney's Schedule 13D/A No. 1 filed with the
     Commission on September 3, 2004 and incorporated herein by reference)

4.   Warrant to Purchase Shares of Series C Preferred Stock of the Issuer
     issued to MedCap dated August 30, 2004 (included as Exhibit 4 to
     MedCap's, MMR's and Toney's Schedule 13D/A No. 1 filed with the
     Commission on September 3, 2004 and incorporated herein by reference)

5.   Warrant to Purchase Shares of Series B-1 Preferred Stock of the Issuer
     issued to MedCap dated August 31, 2004 (included as Exhibit 5 to
     MedCap's, MMR's and Toney's Schedule 13D/A No. 1 filed with the
     Commission on September 3, 2004 and incorporated herein by reference)

6.   Warrant to Purchase Shares of Series C Preferred Stock of the Issuer
     issued to MedCap dated September 25, 2004 (included as Exhibit 6 to
     MedCap's, MMR's and Toney's Schedule 13D/A No. 2 filed with the
     Commission on September 24, 2004 and incorporated herein by reference)


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 10 of 12

                                     Signatures
                                     ----------

    After reasonable inquiry and to the best of each of the undersigned's
respective knowledge and belief, each of the undersigned certifies that the
information set forth in this statement is true, complete and correct.

DATED October 12, 2004

                                   MEDCAP PARTNERS L.P.
                                   By its general partner MedCap Management
                                      & Research LLC


                                   /s/ C. Fred Toney
                                   ------------------------------
                                   By:  C. Fred Toney
                                   Its: Managing Member


                                   MEDCAP MANAGEMENT & RESEARCH LLC


                                   /s/ C. Fred Toney
                                   ------------------------------
                                   By:  C. Fred Toney
                                   Its: Managing Member


                                   C. FRED TONEY


                                   /s/ C. Fred Toney
                                   ------------------------------

<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 11 of 12

                                     Exhibit Index



Exhibit 1  Agreement Regarding Joint Filing of Statement on Schedule 13D or
           13G


<PAGE>
<PAGE>
CUSIP No. 225235209                 SCHEDULE 13D               Page 12 of 12

                                      Exhibit 1


                  AGREEMENT REGARDING JOINT FILING OF STATEMENT ON
                                 SCHEDULE 13D OR 13G

        The undersigned agree to file jointly with the Securities and
Exchange Commission (the "SEC") any and all statements on Schedule 13D or
Schedule 13G (and any amendments or supplements thereto) required under
section 13(d) of the Securities Exchange Act of 1934, as amended, in
connection with purchases by the undersigned of the common stock of Crdentia
Corp.  For that purpose, the undersigned hereby constitute and appoint C.
Fred Toney as their true and lawful agent and attorney-in-fact, with full
power and authority for and on behalf of the undersigned to prepare or cause
to be prepared, sign, file with the SEC and furnish to any other person all
certificates, instruments, agreements and documents necessary to comply with
section 13(d) and section 16(a) of the Securities Exchange Act of 1934, as
amended, in connection with said purchases, and to do and perform every act
necessary and proper to be done incident to the exercise of the foregoing
power, as fully as the undersigned might or could do if personally present.

DATED:  October 12, 2004

                                   MEDCAP PARTNERS L.P.
                                   By its general partner MedCap Management
                                      & Research LLC


                                   /s/ C. Fred Toney
                                   ---------------------------------
                                   By:  C. Fred Toney
                                   Its: Managing Member


                                   MEDCAP MANAGEMENT & RESEARCH LLC


                                   /s/ C. Fred Toney
                                   ---------------------------------
                                   By:  C. Fred Toney
                                   Its: Managing Member


                                   C. FRED TONEY


                                   /s/ C. Fred Toney
                                   ---------------------------------

</TEXT>
</DOCUMENT>
</SUBMISSION>
