SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 10549
                                     FORM 10-QSB

(Mark One)

[ x ]       Quarterly report under Section 13 or 15(D) of the Securities
            Exchange Act of 1934

            For the quarterly period ended September 30, 1999
                                           __________________

[    ]      Transition report under Section 13 or 15(D) of the
            Exchange Act

            For the transition period from ________ to _______


Commission file number 0-15888

                               IGENE Biotechnology, Inc.
         _________________________________________________________________
         (Exact name of Small Business Issuer as Specified in its Charter)

          Maryland                                     52-1230461
_______________________________                   ___________________
(State or Other Jurisdiction of                    (I.R.S. Employer
Incorporation or organization)                    Identification No.)

               9110 Red Branch Road, Columbia, Maryland 21045-2024
         _________________________________________________________________
                    (Address of Principal Executive Offices)

                                    (410) 997-2599
         _________________________________________________________________
                (Issuer's Telephone Number, Including Area Code)

                                None
         _________________________________________________________________
               (Former Name, Former Address and Former Fiscal Year,
                           if Changed Since Last Report)

Check whether the Issuer: (1) filed all reports required to be filed by Section
13 or 15(D) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

Yes        X          No
    _____________         _____________

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

42,592,508 as of October 15, 1999.
_______________________________________

Traditional Small Business Disclosure Format (check one):

Yes                   No         X
    _____________         _____________


                              -Page 1-

                                    FORM 10-QSB
                             IGENE Biotechnology, Inc.


                                       INDEX


                                                                          Page
PART I  FINANCIAL INFORMATION

            Balance Sheets                                                 5-6

            Statements of Operations                                         7

            Statements of Stockholder's Deficit                            8-9

            Statements of Cash Flows                                     10-11

            Notes to Financial Statements                                12-13

            Management's Discussion and Analysis of Financial
              Conditions and Results of Operations                       14-17

PART II  OTHER INFORMATION                                               18-19

SIGNATURES                                                                  20



                                       -Page 2-

                              IGENE BIOTECHNOLOGY, INC.

                     QUARTERLY REPORT UNDER SECTION 13 OR 15(D)

                       OF THE SECURITIES EXCHANGE ACT OF 1934

                                       -Page 3-

                                        PART I

                               FINANCIAL INFORMATION

                                       -Page 4-

<TABLE>
Item 1.  Financial Statements.
                                    IGENE Biotechnology, Inc.
                                        Balance Sheets

<CAPTION>

                                             September 30,      September 30,      December 31,

                                                     1999               1998              1998
                                             _____________      _____________      ____________
                                               (Unaudited)        (Unaudited)
<S>                                          <C>                <C>                <C>
ASSETS
CURRENT ASSETS

    Cash and cash equivalents                $     12,753       $    823,135       $   364,796
    Accounts receivable                            13,205             10,485               ---
    Inventory                                     990,320            595,955           870,260
    Supplies                                       10,669             14,145            11,145
    Prepaid expenses                              165,327            359,713            83,933
    Loans receivable, current portion             223,902            268,544           250,783
                                              ____________       ____________       ___________
                                                1,416,176          2,071,977         1,580,917
OTHER ASSETS
    Property and equipment, net                   342,157            335,585           370,057
    Loan receivable, net of current portion           ---             46,889               ---
    Debt issue costs                              148,199            203,773           179,956
    Security deposits                               4,875             10,600            10,600
                                              ____________       ____________       ___________

       TOTAL ASSETS                          $  1,911,407       $  2,668,824       $ 2,141,530
                                              ============       ============       ===========

</TABLE>
            The accompanying notes are an integral part of the financial
                                    statements.

                                     -Page 5-
<TABLE>
                                   IGENE Biotechnology, Inc.
                                       Balance Sheets
                                        (continued)
<CAPTION>


                                             September 30,      September 30,      December 31,
                                                     1999               1998              1998
                                             ____________       ____________       ___________
                                              (Unaudited)        (Unaudited)
<S>                                          <C>                <C>                <C>
LIABILITIES, REDEEMABLE PREFERED STOCK
  AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
    Accounts payable and accrued expenses    $    124,185       $    259,461       $  228,549
    Debenture interest payable                     90,000             90,000           45,000
                                              ___________        ___________       ___________

        TOTAL CURRENT LIABILITIES                 214,185            349,461          273,549

LONG-TERM DEBT
    Notes payable                               6,146,199          6,082,500        6,092,500
    Variable rate subordinated debenture        1,500,000          1,500,000        1,500,000
    Accrued Interest                              729,900            243,300          364,950


        TOTAL LIABILITIES                       8,590,284          8,175,261        8,230,999
                                              ___________        ___________       ___________
COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK
    Carrying amount of redeemable preferred
        stock, 8% cumulative, convertible,
        voting, series A, $.01 par value per
        share. Redemption value $15.04, $14.40,
        and $14.56, respectively.  Authorized
        1,312,500 shares, issued 29,592, 29,592,
        and 29,592 shares, respectively           445,064           426,125           430,860
                                              ___________        ___________       ___________

STOCKHOLDERS' DEFICIT
    Common stock, $.01 par value per share.
        Authorized, 250,000,000 shares;
        issued and outstanding 39,427,508,
        21,814,173, and 21,854,173 shares,
        respectively.                             394,275           218,142           218,542
    Additional paid-in capital                 19,687,851        18,653,173        18,738,038
    Deficit                                   (27,206,067)      (24,803,877)      (25,476,909)
                                              ___________        ___________       ___________

        TOTAL STOCKHOLDERS' DEFICIT            (7,123,941)       (5,932,562)       (6,520,329)
                                              ___________        ___________       ___________
        TOTAL LIABILITIES AND
            STOCKHOLDERS'  DEFICIT           $  1,911,407       $ 2,668,824       $ 2,141,530
                                              ===========        ===========       ===========
</TABLE>
             The accompanying notes are an integral part of the financial
                                     statements.

                                      -Page 6-
<TABLE>
                                 IGENE Biotechnology, Inc.
                                 Statements of Operations
                                       (Unaudited)
<CAPTION>
                                                Three months ended            Nine months ended
                                           ____________________________  ____________________________
                                           September 30,  September 30,  September 30,  September 30,
                                                   1999           1998           1999           1998
                                           _____________  _____________  _____________  _____________
<S>                                        <C>            <C>            <C>            <C>
Sales                                      $        ---   $        ---   $        ---   $    203,675
Cost of sales                                     6,407         59,157        126,252        664,208
                                           _____________  _____________  _____________  _____________
   Gross profit (loss)                           (6,407)       (59,157)      (126,252)      (460,533)

Technology licensing income                         742            ---          3,916            ---
                                           _____________  _____________  _____________  _____________
   Net revenue                                   (5,665)       (59,157)      (122,336)      (460,533)
                                           _____________  _____________  _____________  _____________

Selling, General & Administrative expenses:
    Marketing and selling                        58,766            207        111,691            896
    Research, development and pilot plant       104,595        138,321        294,995        362,006
    General and administrative                   74,834         96,821        248,554        413,369
    Litigation expenses                          75,479         38,318        433,973        222,016
                                           _____________  _____________  _____________  _____________
             Total operating expenses           313,674        273,667      1,089,213        998,287
                                           _____________  _____________  _____________  _____________

             Operating loss                    (319,339)      (332,824)    (1,211,549)    (1,458,820)
                                           _____________  _____________  _____________  _____________

Other income (expense)
    Interest expense, net of
        interest income of $3,570, $22,173
        $14,519 and $59,907, respectively      (173,903)     (153,094)      (51 7,609)      (364,289)
    Loss on disposal of equipment                   ---          (273)            ---         (3,553)
                                           _____________  _____________  _____________  _____________

              Net loss                     $   (493,242)  $   486,191)   $ (1,729,158)  $ (1,826,662)
                                           =============  =============  =============  =============

              Net loss per common share    $      (0.01)  $     (0.02)   $      (0.06)  $       0.09)
                                           =============    ===========  =============  =============
</TABLE>

              The accompanying notes are an integral part of the financial
                                      statements.

                                       -Page 7-
<TABLE>
                                 IGENE Biotechnology, Inc.
                            Statements of Stockholders' Deficit
                                       (Unaudited)
<CAPTION>

                                            Redeemable Preferred Stock         Preferred Stock
                                                 (shares/amount)               (shares/amount)
                                           ___________________________   ____________________________
<S>                                        <C>            <C>            <C>            <C>
Balance at December 31, 1997                     29,592   $   411,920         187,500   $      1,875

Cumulative undeclared dividends
    on redeemable preferred stock                   ---        14,205             ---            ---

Conversion of preferred stock
    to common stock                                 ---           ---        (187,500)        (1,875)

Issuance of common stock through
    exercise of employee stock options              ---           ---             ---            ---

Issuance of common stock in lieu of
    cash in payment of interest on
    subordinated debenture                          ---           ---             ---            ---

Issuance of common stock in lieu of
    cash in payment of legal retainers
    and fees debenture                              ---           ---             ---            ---

Exercise of warrants                                ---           ---             ---            ---

Capital contribution - forgiveness of
    interest on promissory notes                    ---           ---             ---            ---

Net loss for nine months
    ended September  30, 1998                       ---           ---             ---            ---
                                           _____________  ____________   _____________  _____________

Balance at September 30, 1998                    29,592   $   426,125             ---   $        ---
                                           =============  ============   =============  =============

Balance at December 31, 1998                     29,592   $   430,860             ---   $        ---

Cumulative undeclared dividends
    on redeemable preferred stock                   ---        14,204             ---            ---

Issuance of common stock in lieu of
    cash in payment of interest on
    subordinated debenture                          ---           ---             ---            ---

Issuance of common stock in lieu of
     cash in payment of legal retainers
     and fees                                       ---           ---             ---            ---

Issuance of shares of common stock
     pursuant to direct purchase of shares
     by certain directors and other
     accredited investors (note 3)                  ---           ---             ---            ---

Net loss for nine months ended
     September 30, 1999                             ---           ---             ---            ---
                                           _____________  ____________   _____________  _____________

Balance at September 30, 1999                    29,592   $   445,064             ---   $        ---
                                          ==============  ============   =============  =============
</TABLE>
            The accompanying notes are an integral part of the financial
                                    statements.

                                      - Page 8-
<TABLE>
                                   IGENE Biotechnology, Inc.
                              Statements of Stockholders' Deficit
                                    (Unaudited - Continued)
<CAPTION>

                                                             Additional                      Total
                                         Common Stock         Paid-in                    Stockholders'
                                        (shares/amount)       Capital        Deficit        Deficit
                                     _____________________  ____________  _____________  _____________
<S>                                  <C>          <C>       <C>           <C>            <C>
Balance at December 31, 1997          19,206,473  $192,065  $18,233,670   $(22,977,215)  $ (4,549,605)

Cumulative undeclared dividends
   on redeemable preferred stock             ---       ---      (14,205)           ---        (14,205)

Conversion of preferred stock
   to common stock                       375,000     3,750       (1,875)           ---            ---

Issuance of common stock in lieu of
   cash in payment of interest on
   subordinated debenture                 40,000       400       89,600            ---         90,000

Issuance of common stock in lieu of
   cash in payment of legal
   retainers and fees                  2,190,000    21,900      140,100            ---        162,000

Exercise of warrants                       2,700        27          243            ---            270

Capital contribution - forgiveness of
   interest on promissory notes              ---       ---      205,640            ---        205,640

Net loss for nine months ended
   September 30, 1998                        ---       ---          ---     (1,826,662)    (1,826,662)
                                     ____________ _________ ____________  _____________  _____________

Balance at September 30, 1998         21,814,173  $218,142  $18,653,173   $(24,803,877)  $ (5,932,562)
                                     ============ ========= ============  =============  =============

Balance at December 31, 1998          21,854,173  $218,542  $18,738,038   $(25,476,909)  $ (6,520,329)

Cumulative undeclared dividends
  on redeemable preferred stock              ---       ---      (14,204)           ---        (14,204)

Issuance of common stock in lieu of
   cash in payment of interest on
   subordinated debenture                 40,000       400       89,600            ---         90,000

Issuance of common stock in lieu of
  cash in payment of legal fees          866,667     8,666       41,084            ---         49,750

Issuance of shares of common stock
  pursuant to direct purchase of shares
  by certain directors and other
  accredited investors (note 3)       16,666,668   166,667      833,333            ---      1,000,000

Net loss for nine months ended
  September 30, 1999                         ---       ---          ---     (1,729,158)    (1,729,158)
                                     ____________ _________ ____________  _____________  _____________

Balance at September 30, 1999         39,427,508  $394,275  $19,687,851   $(27,206,067)  $ (7,123,941)
                                     ============ ========= ============  =============  =============
</TABLE>


            The accompanying notes are an integral part of the financial
                                     statements.

                                      -Page 9-
<TABLE>
                              IGENE Biotechnology, Inc.
                              Statements of Cash Flows
                                     (Unaudited)
<CAPTION>

                                                                      Nine months ended
                                                               September 30,   September 30,
                                                                       1999            1998
                                                               _____________   _____________
<S>                                                            <C>             <C>
Cash flows from operating activities:
   Net loss                                                    $ (1,729,158)   $ (1,826,662)
   Adjustments to reconcile net loss to net cash provided
     By operating activities:
     Depreciation                                                    55,847          32,578
     Amortization                                                    31,757           7,939
     Loss on disposal of equipment                                      ---           3,553
     Interest on debenture paid in shares of common stock            90,000          90,000
     Decrease (increase) in:
       Accounts receivable                                          (13,205)          4,009
       Inventory                                                   (120,060)       (595,955)
       Prepaid expenses and other current assets                    (31,168)       (234,148)
     Increase (decrease) in:
       Accounts payable and accrued expenses                        305,587         265,264
                                                               _____________   _____________
       Net cash used in operating activities                     (1,410,400)     (2,253,422)
                                                               _____________   _____________

Cash flows from investing activities:
   Loan receivable issued                                           (18,272)            ---
   Proceeds from disposal of equipment                                  460          11,482
   Capital expenditures                                             (28,407)        (86,192)
   Refund of security deposit                                         5,725             ---
   Repayment of principal of loan receivable                         45,153         184,567
                                                               _____________   _____________
       Net cash provided by (used in) investing activities            4,659         109,857
                                                               _____________   _____________
Cash flows from financing activities:
   Repayments from (advances to) stockholders                           ---          28,594
   Proceeds from issuance of common stock                         1,000,000             270
   Issuance of promissory notes                                      65,699             ---
   Issuance of demand notes                                             ---         950,000
   Proceeds from rights offering                                        ---       2,438,288
   Repayment of notes                                               (12,000)       (475,000)
                                                               _____________   _____________
     Net cash provided by financing activities                    1,053,699       2,942,152
                                                               _____________   _____________

       Net increase (decrease) in cash
         and cash equivalents                                      (352,042)        798,587

       Cash and cash equivalents
         at beginning of period                                     364,795          24,548
                                                               _____________   _____________
       Cash and cash equivalents
         at end of period                                      $     12,753    $    823,135
                                                               =============   =============
</TABLE>

             The accompanying notes are an integral part of the financial
                                       statements.

                                        -Page 10-

                    IGENE Biotechnology, Inc.
                    Statements of Cash Flows
                     (Unaudited - Continued)



Noncash investing and financing activities:

During  the  nine months ended September 30, 1999 and  1998,  the
Company  recorded dividends in arrears on 8% redeemable preferred
stock   at  $.48  per  share  aggregating  $14,204  and  $14,205,
respectively,  which  has been removed from paid-in  capital  and
included in the carrying value of the redeemable preferred stock.

During  the  nine  months ended September 30, 1998,  the  Company
issued  notes  payable of $5,000,000 through a  rights  offering.
Stockholders  purchased  rights, using $1,875,000  in  promissory
notes  and $475,000 of demand notes due to the Company, resulting
in   net  cash  proceeds  of  $2,438,288,  which  is  after  fees
associated with the offering of $211,712.  The related fees  have
been capitalized as debt issue costs are being amortized over the
term of the debt.

During  the  nine  months ended September 30, 1998,  the  Company
cancelled  certain  promissory  notes  payable  to,  and  related
amounts   due  from,  a  stockholder  aggregating  $125,000,   by
agreement with that stockholder.

During  the  nine months ended September 30, 1999  and  1998  the
Company  issued 40,000 shares of common stock in each  period  in
payment  of  interest on a variable rate subordinated  debenture.
If  paid in cash, the interest would have been payable at 12%  in
the  amount of $90,000 in each period.  Shares may be  issued  in
lieu  of cash under the terms of the debenture agreement  at  the
higher  of $2.25 per share or market price per share.  The  stock
was  issued and related interest was paid at $2.25 per share,  or
$90,000, in each period.

During  the  nine  months ended September 30, 1999,  the  Company
satisfied  accounts payable of $20,000 and advanced  $29,750  for
legal  retainers  by issuing 866,667 shares of  common  stock  to
counsel in on-going litigation.

During  the  nine  months ended September 30,  1998  the  Company
satisfied accounts payable of $27,000 and advanced  $135,000  for
legal  retainers by issuing 2,190,000  shares of common stock  to
counsel in on-going litigation.




  The accompanying notes are an integral part of the financial
                           statements.

                              -Page 11-

                    IGENE Biotechnology, Inc.
                  Notes to Financial Statements


(1)  Unaudited financial statements

     The  financial statements presented herein as  of  September
     30,  1999  and 1998 and for the three month and  nine  month
     periods  then  ended are unaudited, and in  the  opinion  of
     management,  include  all adjustments  (consisting  only  of
     normal recurring accruals) necessary for a fair presentation
     of  financial  position and results of  operation  and  cash
     flows.  Such financial statements do not include all of  the
     information  and footnote disclosures normally  included  in
     audited  financial  statements prepared in  accordance  with
     generally accepted accounting principles.

(2)  Inventories

     Inventory, stated at lower of cost, on a first-in  first-out
     basis,  or  market value, represents AstaXin(R) manufactured
     and held for sale, as follows:

          Raw materials        $      7,050
          Work-in-process               ---
          Finished goods            983,270
                                ____________

               Total inventory $    990,320
                                ============

     Inventory has been reduced by $19,463 during the nine months
     ended September 30, 1999 to reflect the excess of cost  over
     market value.

(3)  Stockholders' Equity (Deficit)

     At  September 30, 1999 and 1998, 59,184 shares of authorized
     but  unissued  common  stock were reserved  for  issue  upon
     conversion of the Company's outstanding preferred stock.

     As  of September 30, 1999 approximately 22,000,000 shares of
     authorized  but  unissued  common stock  were  reserved  for
     exercise  pursuant  to the Company's  1997  and  1986  Stock
     Option Plans.

     As  of  September  30,  1999 and 1998, 200,000  and  280,000
     shares,  respectively,  of authorized  but  unissued  common
     stock were reserved for issuance for payment of interest  on
     the  variable rate subordinated debenture and 375,000 shares
     of  authorized but unissued common stock were  reserved  for
     issuance  upon conversion of the variable rate  subordinated
     debenture.

     As  of  September  30, 1999 and 1998, 13,174,478  shares  of
     authorized but unissued common stock were reserved  for  the
     conversion  of outstanding convertible promissory  notes  in
     the  aggregate amount of $1,082,500 held by directors of the
     Company.

     As   of  September  30,  1999  and  1998,  117,628,846   and
     100,962,178 shares, respectively, of authorized but unissued
     common  stock were reserved for the exercise of  outstanding
     warrants.

     On January 25, 1999, the Company issued to certain directors
     and  other  accredited  investors 4,166,667  new  shares  of
     common  stock at $.06 per share, or $250,000, which was  the
     current  market  price of the stock  on  that  date.   These
     investors also  purchased an additional 8,333,333 new shares
     of  common stock at $.06 per share, or $500,000 through July
     31,  1999.   The total funding  received in this transaction
     was $750,000, and a total of 12,500,000 new shares of common
     stock  have  been issued at $.06 per share.  In  return  for
     committing  to this funding, these investors also  received,
     as  of  January  25,  1999, warrants to purchase  12,500,000
     shares  of  common stock at $.06 per share, expiring  in  10
     years.


                              - Page 12-

                    IGENE Biotechnology, Inc.
                  Notes to Financial Statements
                           (continued)

(3)  Stockholders' Equity (Deficit) (continued)

     On  August 19, 1999, the Company issued to certain directors
     4,166,668  new shares of common stock at $.06 per share,  or
     $250,000, which was the current market price of the stock on
     that  date.  In return for committing to this funding, these
     directors also received, as of August 19, 1999, warrants  to
     purchase 4,166,668 shares of common stock at $.06 per share,
     expiring in 10 years.

     The  funds received in the preceding transactions have  been
     used to continue operations of the Company and to fund legal
     expenses  associated  with  the  on-going   litigation  with
     Archer-Daniels Midland, Inc. (See note 5).

(4)  Net loss per common share

     Net  loss per common share for the nine-month periods  ended
     September  30,  1999  and 1998 is based  on  30,846,897  and
     20,273,882, respectively, of weighted average common  shares
     outstanding.  For purposes of computing net loss per  common
     share,  the  amount  of  net  loss  has  been  increased  by
     dividends  declared and cumulative undeclared  dividends  in
     arrears on preferred stock.

(5)  Contingency - Litigation

     On  July 21, 1997, ADM filed suit against the Company in the
     U.S.  District Court in Baltimore, Maryland alleging  patent
     infringement and requesting a preliminary injunction against
     the   Company   to   cease  the  use  of   its   astaxanthin
     manufacturing process.  On August 4, 1997, the Company filed
     a  $300,450,000  contract  and  trade  secrets  counterclaim
     against  ADM, alleging theft of trade secrets.  The  Company
     is  also  claiming  breach  of contract,  in  regards  to  a
     licensing agreement entered into by the Company and  ADM  in
     1995.   The  Company  contends that  it  complied  with  all
     material terms of this agreement.  On September 10, 1997 the
     District  Court  denied  ADM's  request  for  a  preliminary
     injunction  on  the basis that ADM could not  demonstrate  a
     likelihood   of  success  on  the  merits  of   its   patent
     infringement allegations.  To date, a stay on all  discovery
     has  been  imposed  by  the court, while  a  court-appointed
     expert  analyzed the yeast products of both  parties.   Most
     recently,  and pursuant to an order issued by the  judge  on
     July 16, 1999, both the Company and ADM communicated to  the
     court  their willingness to pursue a mediated settlement  of
     this  dispute. It is management's contention that it is  not
     probable  that  this dispute will result in  an  unfavorable
     outcome.   Accordingly, no liability has been  reflected  in
     the accompanying balance sheet.  The Company had expenses of
     $433,973  and  $222,016, respectively, in  the  nine  months
     ended   September  30,  1999  and  1998  relating  to   this
     litigation, which is on-going.

(6)  Subsequent Events

     On  October 7, 1999, the Company issued to certain directors
     3,125,000  new shares of common stock at $.08 per share,  or
     $250,000, which was the current market price of the stock on
     that  date.  In return for committing to this funding, these
     directors also received, as of October 7, 1999, warrants  to
     purchase  3,125,000  shares of common  stock,  at  $.08  per
     share, expiring in 10 years.

     During  the period from October 1, 1999 through October  28,
     1999,  the parties to the litigation described in  note  (5)
     were unable to resolve the dispute through mediation.  Thus,
     the litigation has been returned to the court for a judicial
     disposition.





                              -Page 13-

                    IGENE Biotechnology, Inc.
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations



CAUTIONARY STATEMENTS FOR PURPOSES OF "SAFE HARBOR PROVISIONS" OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

EXCEPT  FOR  HISTORICAL  FACTS, ALL  MATTERS  DISCUSSED  IN  THIS
REPORT, WHICH ARE FORWARD LOOKING, INVOLVE A HIGH DEGREE OF RISKS
AND  UNCERTAINTIES.   POTENTIAL RISKS AND UNCERTAINTIES  INCLUDE,
BUT   ARE  NOT  LIMITED  TO,  COMPETITIVE  PRESSURES  FROM  OTHER
COMPANIES AND WITHIN THE BIOTECH INDUSTRY, ECONOMIC CONDITIONS IN
THE  COMPANY'S  PRIMARY MARKETS AND OTHER UNCERTAINTIES  DETAILED
FROM  TIME-TO-TIME  IN  THE  COMPANY'S  SECURITIES  AND  EXCHANGE
COMMISSION FILINGS.

CERTAIN   STATEMENTS  IN  THIS  REPORT  SET  FORTH   MANAGEMENT'S
INTENTIONS,  PLANS, BELIEFS, EXPECTATIONS OR PREDICTIONS  OF  THE
FUTURE  BASED ON CURRENT FACTS AND ANALYSES.  ACTUAL RESULTS  MAY
DIFFER MATERIALLY FROM THOSE INDICATED IN SUCH STATEMENTS, DUE TO
A  VARIETY OF FACTORS INCLUDING REDUCED PRODUCT DEMAND, INCREASED
COMPETITION,  GOVERNMENT ACTION, WEATHER  CONDITIONS,  AND  OTHER
FACTORS.

Results of Operations
                              Sales
During the three months and nine months ended September 30, 1999,
the  Company  began large scale commercial trials  of  AstaXin(R)
with  several  potential customers in Chile.   These  trials  are
expected  to  result  in  subsequent  and  continuing  sales   of
AstaXin(R) to these potential customers, during and following the
trials,  which  are expected to last between six  months  to  one
year.   However, there can be no assurance that such  sales  will
occur or that they will be material.  During the six months ended
June  30,  1998 the Company had $203,860 in sales of  AstaXin(R).
This  entire amount was sold to a single distributor.  Subsequent
to  June 30, 1998, and during the nine months ended September 30,
1999,  there were no sales of AstaXin(R), a decrease of  $203,860
or  100%,  since this distributor inventoried this large quantity
of  product  and  has  not  yet needed additional  product.   The
Company  is now making substantial marketing efforts on  its  own
behalf  (See also Marketing and selling expenses on  page  15  of
this document).
                          Cost of sales
During a successful implementation of certain improvements in the
production process, which had been developed in the pilot  plant,
production  was  temporarily suspended during the  quarter  ended
March 31, 1999.  A resumption of production during April and  May
of  1999  confirmed  that the improvements  result  in  increased
efficiency  and  yields in the manufacturing  process.   In  June
1999, and continuing until the present, production has again been
temporarily  suspended  until sales  volume  warrants  additional
production.   The  preceding resulted in cost of  sales  for  the
three  months  ended September 30, 1999 and 1998  of  $6,407  and
$126,252 respectively, a decrease of $119,845 or 95%; and $59,157
and  $664,208  for the nine months ended September 30,  1999  and
1998,  a  decrease of $605,051 or 91%.   The Company  expects  to
resume  production,  and  that  production  will  achieve   gross
profits,  as soon as additional sales occur.  However, there  can
be  no assurance that such gross profits will occur or that  they
will be material.  The Company expects to incur cost of sales  of
approximately  $138,000 per month when production resumes,  which
is  expected  to be funded by product sales.  When, and  if,  the
Company  is  producing and selling AstaXin(R) at a gross  profit,
management  plans  to  expand  production  capacity  to  meet  an
expected  increasing demand for AstaXin(R), which is expected  to
result  in  profitable  operations.  However,  there  can  be  no
assurance  that  such profitable operations will occur,  or  that
they  will  be  material.  Until production is resumed,  cost  of
sales  is  expected  to  continue  at  approximately  $6,400  per
quarter, which is primarily composed of inventory storage costs.




                              -Page 14-

                    IGENE Biotechnology, Inc.
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations
                           (continued)

Results of Operations (continued)
                   Technology licensing income
Technology  licensing  income of  $742 and $3,916,  respectively,
for  the  three and nine months ended September 30, 1999 resulted
from  royalties  for ClandoSan(R), the Company's nematicide  soil
treatment  product.   No  royalties on ClandoSan(R)  were  earned
during  the three and nine months ended September 30, 1998.   The
Company  has  made  only minimal efforts to  market  ClandoSan(R)
during 1999 and 1998, concentrating its efforts on its AstaXin(R)
product.
                 Marketing and selling expenses
Marketing  expenses  for  AstaXin(R)   have  increased  and   are
expected  to  continue  to do so, as the  Company  continues  and
escalates  its  promotion of AstaXin(R).  Marketing  and  selling
expenses  for the three months ended September 30, 1999 and  1998
were  $58,766  and  $207, respectively, an increase  of  $58,559.
These  expenses for the nine months ended September 30, 1999  and
1998  were  $111,691  and  $896,  respectively,  an  increase  of
$110,795.   Marketing expenses for AstaXin(R)  had  been  minimal
prior to 1999, since the Company's contract manufacturer had been
acting  as  non-exclusive distributor and marketer of  AstaXin(R)
during 1998.  During 1999, the Company began additional marketing
efforts  on  its  own  behalf.   These  increasing  expenses  are
expected to be funded by product sales.  However, there can be no
assurance  that  such  sales will occur, or  that  they  will  be
material.

         Research, development and pilot plant expenses
Research,  development and pilot plant expenses are  expected  to
continue at approximately $33,000 per month which will be used to
increase  the  efficiency  of the manufacturing  process  through
experimentation  in  the  pilot  plant,  development  of   higher
yielding strains of yeast and other improvements in the Company's
AstaXin(R)  technology.  However, there can be no assurance  that
such  improvements in efficiency and yield will  occur,  or  that
they  will be material.  These expenses are expected to be funded
by  sales.   However, there can be no assurance that  such  sales
will occur, or that they will be material.  Research, development
and pilot plant expenses for the three months ended September 30,
1999  and  1998  were  $104,595  and  $138,321,  respectively,  a
decrease of $33,726, or 24%.  For the nine months ended September
30, 1999 these expenses were $294,995 and $362,006, a decrease of
$67,011  or 18%.  Analytical testing and field studies,  relating
to  the  start of manufacture of AstaXin(R) during 1998, did  not
recur  in  the  three months and nine months ended September  30,
1999.   This resulted in a decrease in research, development  and
pilot  plant  expenses for the three months and nine month  ended
September 30, 1999 as compared to the three month and nine  month
periods ended September 30, 1998.

               General and administrative expenses
General and administrative expenses have decreased, primarily due
to  the  Company's operating without a designated CEO since  mid-
1998  (the  Company's  Board of Directors as  a  group  presently
performs  the  functions  of  CEO).  General  and  administrative
expenses  for the three months ended September 30, 1999 and  1998
were $74,834 and $96,821, respectively, a decrease of $21,987  or
23%.   These  expenses were $248,554 and $413,369,  respectively,
for the nine months ended September 30, 1999 and 1998, a decrease
of  $164,815  or  40%.  General and administrative  expenses  are
expected  to continue at approximately $30,000 per month  in  the
near term, and are expected to be funded by sales. However, there
can be no assurance that such sales will occur, or that they will
be material.
                       Litigation expenses
Management   expects   to  recover  these  litigation   expenses,
associated with the suit filed against the Company by ADM and the
Company's counterclaim, through damage awards and preservation of
the   commercial  product  rights  associated  with   AstaXin(R).
However, there can be no assurance that the Company will  receive
damage  awards or that its rights will be preserved.   Litigation
expenses  for the three months ended September 30, 1999 and  1998
were  $75,479  and  $38,318,  an  increase  of  $37,161  or  97%.
Litigation expenses for the nine months ended September 30,  1999
and 1998 were $433,973 and $222,016, respectively, an increase of
$211,957 or 95%.



                              -Page 15-

                    IGENE Biotechnology, Inc.
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations
                           (continued)

Results of Operations (continued)
                 Litigation expenses (continued)
These  expenses are expected to continue, in the  near  term,  at
levels  based  on  management's continual  re-assessment  of  the
potential  benefits  versus the costs of its litigation  efforts.
They   are   expected   to  be  funded  by   additional   capital
contributions  or  loans from the Company's directors  and  other
investors.   At the present time, a range of reasonably  possible
losses from this litigation cannot be estimated (See also Note  5
to the financial statements on page 13 of this document).
            Interest expense, net of interest income
Net  interest  expense for the three months ended  September  30,
1999  and  1998  was  $173,903  and  $153,094,  respectively,  an
increase of  $20,809, or 14%.  Net interest expense for the  nine
months  ended  September  30, 1999  and  1998  was  $517,609  and
$364,289,  respectively, an increase of $153,320 or  42%.   These
increases  result  from $5,000,000 in notes issued  during  April
1998  pursuant to the Company's right's offering.  It is expected
that   the   note  holders  will  use  these  notes  to  exercise
outstanding warrants issued to the note holders, when and if  the
Company achieves profitable operations. However, there can be  no
assurance  that  such profitable operations will occur,  or  that
they  will  be  material, or that the note-holders will  exercise
these warrants.

                            Net loss
As  a result of the foregoing, the Company reported net losses of
$493,242   and   $486,191,  or  $0.01  and   $0.02   per   share,
respectively, for the three months ended September 30,  1999  and
1998.   The  Company also reported net losses of  $1,729,158  and
$1,826,662,  or  $.06 and $.09 per share, respectively,  for  the
nine  months  ended  September 30, 1999 and 1998.   The  weighted
average number of shares of common stock outstanding increased to
36,936,566 and 30,846,897, respectively for the three months  and
nine  months  ended  September  30,  1999  from  21,527,100   and
19,636,887,  respectively, for the three  and  six  months  ended
September  30, 1998.  This increase of 15,409,466 and  11,210,010
weighted  average shares, respectively, for the three  month  and
nine month periods ended September 30, 1999 over the same periods
in  1998 is caused by:   the issuance of 80,000 shares of  common
stock  in  lieu  of  interest  payments  on  the  variable   rate
subordinated  debenture,  the conversion  of  187,500  shares  of
preferred stock into 375,000 shares of common stock, the issuance
of  866,667  shares  of  stock  in  payment  of  legal  fees  and
retainers, and the issuance of 16,666,668 shares to directors and
other investors for cash at $.06 per share, or $1,000,000, during
the twelve month period ended September 30, 1999 (See also note 3
to the financial statements on page 12 of this document).

Financial Position

During  the  nine months ended September 30, 1999 and  1998,  the
following materially affected the Company's financial position:

The  Company began producing commercial quantities of  AstaXin(R)
in January 1998, capitalizing additional inventory of $120
,060  and  $595,955, respectively during the  nine  months  ended
September 30, 1999 and 1998.

The  Company paid expense advances and retainers, which have been
capitalized and are included in prepaid expenses as of  September
30,  1999 and 1998; as reduced by fees billed, and which will  be
drawn   down  against  future  costs  associated  with   on-going
litigation  against ADM.  These amount to approximately  $140,000
and $330,000, respectively as of September 30, 1999 and 1998.

During  the  nine  months ended September 30,  1999  the  Company
issued  16,666,668 new shares of common stock  to  directors  and
other investors at $.06 per share, or $1,000,000.




                              -Page 16-

                    IGENE Biotechnology, Inc.
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations
                           (continued)

Financial Position  (continued)

The  Company issued, on March 31, 1998,  $5,000,000 of  long-term
notes  payable  pursuant to its rights offering of  February  13,
1998.   The notes mature on March 31, 2003 with interest  payable
at  8%  payable either annually or at maturity, at the  Company's
option.   The Company also issued warrants to purchase 50,000,000
shares  of  common  stock at $0.10 per share expiring  March  31,
2008.    Short-term  promissory notes of  $1,875,000  and  demand
notes of $475,000 were repaid through exercise of rights in  this
offering,   and  $211,712  of  related  debt  issue  costs   were
capitalized.

During  the  nine  months ended September 30, 1998,  the  Company
issued $950,000 in demand notes to certain directors, $475,000 of
which  were  repaid pursuant to the issuance of new debt  in  the
rights offering, and $475,000 of which were repaid in cash.

In  December  of  1988,  the  Company suspended  payment  of  the
quarterly  dividend on its preferred stock.   Resumption  of  the
dividend  will  require  significant improvement  in  cash  flow.
Unpaid  dividends  cumulate for future payment  or  increase  the
liquidation  preference  or redemption  value  of  the  preferred
stock.   As  of  September 30, 1999 and 1998, total dividends  in
arrears  on  the  Company's  preferred  stock  was  $208,328  and
$189,389,  respectively, of which $208,328 ($7.04 per share)  and
$189,389  ($6.40  per share), respectively, was included  in  the
carrying value of the redeemable preferred stock

Liquidity and Capital Resources

Historically,  the  Company has been funded primarily  by  equity
contributions  and loans from stockholders.  As of September  30,
1999 and 1998, the Company had working capital of $1,201,991  and
$1,722,516,  respectively, a decrease of   $520,525. The  Company
had  cash  and  cash equivalents of $12,753 and  $823,135  as  of
September 30, 1999 and 1998, respectively.  In order to  continue
to  fund operations in the near term, until profitable operations
occur,  the  Company  plans  to  continue  to  obtain  additional
capitalization from directors and other investors.

Cash  used  by operations in the nine months ended September  30,
1999   and   1998   amounted   to  $1,410,400   and   $2,253,422,
respectively.   This  decrease in  cash  used  in  operations  of
$843,022  over the nine months ended September 30,  1998  results
from  reductions  in  research and development  and  general  and
administrative  expenses and a  temporary halt in  production  of
AstaXin(R) during the nine months ended September 30, 1999.

Cash  provided by investing activities for the nine months  ended
September  30,  1999  and 1998 amounted to $4,659  and  $109,857,
respectively.   The  decrease of $105,198  in  cash  provided  by
investing  activities over the nine months  ended  September  30,
1998 results primarily from a decrease in the amount of principal
repayments  on  a  loan receivable during the nine  months  ended
September  30,  1999. These repayments by the Company's  contract
manufacturer   are  suspended  during  the  temporary   halt   in
production which continues during the nine months ended September
30, 1999.

Cash  provided by financing activities for the nine months  ended
September 30, 1999 and 1998 amounted to $1,053,699 and $2,942,152
respectively,  a decrease of $1,888,453, results  primarily  from
net  proceeds  from  the rights offering of  $2,438,288  received
during the nine months ended September 30, 1998.







                              -Page 17-

                    IGENE Biotechnology, Inc.
                             PART II
                        OTHER INFORMATION

     Item 1.  Legal Proceedings

     On  July 21, 1997, ADM filed suit against the Company in the
     U.S.  District Court in Baltimore, Maryland alleging  patent
     infringement and requesting a preliminary injunction against
     the   Company   to   cease  the  use  of   its   astaxanthin
     manufacturing process.  On August 4, 1997, the Company filed
     a  $300,450,000  contract  and  trade  secrets  counterclaim
     against  ADM, alleging theft of trade secrets.  The  Company
     is  also  claiming  breach  of contract,  in  regards  to  a
     licensing agreement entered into by the Company and  ADM  in
     1995.   The  Company  contends that  it  complied  with  all
     material terms of this agreement.  On September 10, 1997 the
     District  Court  denied  ADM's  request  for  a  preliminary
     injunction  on  the basis that ADM could not  demonstrate  a
     likelihood   of  success  on  the  merits  of   its   patent
     infringement allegations.  To date, a stay on all  discovery
     has  been  imposed  by  the court, while  a  court-appointed
     expert  analyzed the yeast products of both  parties.   Most
     recently,  and pursuant to an order issued by the  judge  on
     July 16, 1999, both the Company and ADM communicated to  the
     court  their willingness to pursue a mediated settlement  of
     this  dispute.   During  the period  from  October  1,  1999
     through October 28, 1999, the parties were unable to resolve
     the  dispute  through mediation.  Thus, the  litigation  has
     been  returned to the court for a judicial disposition.   It
     is management's contention that it is not probable that this
     dispute will result in an unfavorable outcome.  Accordingly,
     no  liability has been reflected in the accompanying balance
     sheet.   The Company had expenses of  $433,973 and $222,016,
     respectively,  in the nine months ended September  30,  1999
     and 1998 relating to this litigation, which is on-going.


     Item 2.  Changes in Securities and Use of Proceeds.

     Dividends  on Common Stock are currently prohibited  because
     of  the  preferential rights of holders of Preferred  Stock.
     The  Company has paid no cash dividends on its Common  Stock
     in  the  past  and  does not intend to declare  or  pay  any
     dividends on its Common stock in the foreseeable future.

     With respect to sales of securities not registered under the
     Securities  Act,  see  Notes  3  and  6  to  the   financial
     statements, at page 12 and 13 of this report.

     Item 3.  Defaults Upon Senior Securities.

     None

     Item 4.  Submission of Matters to a Vote of Security
              Holders.

     At the annual meeting of stockholders held on September 16,
     1999, the following matters were submitted to stockholders'
     vote and were approved by a majority of votes: (1) seven
     directors were elected: Joseph C. Abeles, John A. Cenerazzo,
     Stephen F. Hiu, , Thomas L. Kempner, Michael G. Kimelman,
     Sidney R. Knafel, and  Patrick F. Monahan; and (2) approval
     of the appointment of Berenson & Company LLP as the
     Company's independent auditors for 1999.










                              -Page 18-

                    IGENE Biotechnology, Inc.
                             PART II
                        OTHER INFORMATION
                           (continued)

     Item 4.  Submission of Matters to a Vote of Security
              Holders.  (continued)

     Results of the voting were as follows:

                                        Votes         Votes        Votes
                                         For         Against     Abstained
                                      ____________  _________    _________
     (1)   Election of Directors
             Joseph C. Abeles          26,151,379    19,350           ---
             John A. Cenerazzo         26,151,379    19,350           ---
             Stephen F. Hiu            26,151,354    19,375           ---
             Thomas L. Kempner         26,151,379    19,350           ---
             Michael G. Kimelman       26,151,354    19,375           ---
             Sidney R. Knafel          26,151,379    19,350           ---
             Patrick F. Monahan        26,151,379    19,350           ---


      (2)  Approval of Auditors        26,151,778    18,351           600


     Item 5.  Other Information

     None

     Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

         27.  Financial Data Schedule

     (b)  Reports on Form 8K

        None


















                              -Page 19-

                           SIGNATURES


     In accordance with the requirements of the Exchange Act, the
     registrant caused this report to be signed on its behalf by
     the undersigned, thereunto duly authorized.



                                   IGENE Biotechnology, Inc.
                                   _________________________
                                   (Registrant)




     Date   November 14, 1999      By      /s/Stephen F. Hiu
            __________________     _________________________
                                   Stephen F. Hiu
                                   President and Treasurer
                                   (On  behalf of the Registrant
                                   and as Principal
                                   Financial Officer)



                             -Page 20-