FORM 10QSB

	SECURITIES AND EXCHANGE COMMISSION

	Washington, D.C.  10549

(Mark One)

[ x ]		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  	SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   March 31, 1997      

  OR

[   ]		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  	SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            .


	Commission file number    0-15888   .


               IGENE Biotechnology, Inc.              
(Exact name of Registrant as specified in its charter)


  Maryland                                    	      52-1230461         
(State or other jurisdiction of incorporation	     (I.R.S. Employer
 		or organization)				      Identification No.)

 9110 Red Branch Road, Columbia, Maryland     	      21045-2020         
(Address of principal executive officers)		     (Zip code)


Registrant's telephone number, including area code:     (410) 997-2599   


                                        None                              
(Former name, former address and former fiscal year, if changed since last
report)

Indicate by a check mark whether the Registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 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       

The number of shares outstanding of the Registrant's $.01 par value Common
Stock as of March 31, 1997 is   18,631,139.

	FORM 10QSB

	IGENE Biotechnology, Inc.

	INDEX





 Page 

PART I - FINANCIAL INFORMATION


Balance Sheets .................................................	    4

Statements of Operations .......................................	    5

Statements of Stockholder's Deficit ............................	    6 

Statements of Cash Flows .......................................	    8

Notes to Financial Statements ..................................	    9

Management's Discussion and Analysis of Financial
Conditions and Results of Operations .....................	   11


PART II - OTHER INFORMATION ..........................................	   14


SIGNATURES ...........................................................	   15


	IGENE BIOTECHNOLOGY, INC.

	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

	OF THE SECURITIES EXCHANGE ACT OF 1934

	PART I - FINANCIAL INFORMATION




<TABLE>
IGENE Biotechnology, Inc.
Balance Sheets
<CAPTION>
                                               March 31,       March 31,     December 31,
                                                1997            1996            1996      
                                             (Unaudited)     (Unaudited)
ASSETS
<S>							<C>			<C>			<C>
Current assets:
  Cash and cash equivalents 			$        4,138	$     17,538  $       41,339
  Accounts receivable 				        19,804          18,229           9,996
  Due from stockholder				        29,540             ---          16,870
  Supplies						           ---    	   ---           6,126
  Prepaid expenses 				           989             911           4,652

       Total current assets 			        54,471          36,678          78,983

Property and equipment, net 			        23,338          27,814          19,471
Security deposits					        10,600          10,600          10,600 

							$       88,409  $       75,092  $      109,054 

LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Accounts payable and 
  other accrued expenses 			       306,022         223,833         300,799
  Debenture interest payable 				  90,000          60,000          45,000 
  Promissory Notes payable 			       887,000         240,000         717,000 

       Total current liabilities 		     1,283,022         534,833       1,062,799

Long term liabilities:
  Variable rate subordinated debenture 	     1,500,000       1,500,000       1,500,000 

             Total liabilities 		     2,783,022       2,034,833       2,562,799 

Redeemable preferred stock -- 8% cumulative, 
	convertible, voting, Series A, 
	$.01 par value per share; 
	redemption value $13.44,       
     	$12.80 and $13.28 per share.  
	Authorized 920,000 shares; issued 
  	35,842, 35,842, and 35,842 shares	       481,716          458,778        475,982 

Stockholders' deficit:
  Preferred stock -- $.01 par value per share. 
	8% cumulative, convertible, voting, 
	Series A.  Authorized and issued 
	187,500 shares (aggregateinvoluntary 
	liquidation value of $2,520,000, 
	2,400,000, and 2,490,000)		         1,875            1,875          1,875
  Common stock -- $.01 par value per share. 
	Authorized 35,000,000 shares;issued 
	18,631,139, 13,029,071, and 
	18,631,139 shares 			    	 186,311         185,778         186,311
  Additional paid-in capital 			    17,965,485      17,868,958      17,971,220 
  Deficit 						   (21,330,002)    (20,475,130)    (21,089,133)

             Total stockholders' deficit 	    (3,176,331)     (2,418,319)     (2,929,727)

                                          $       88,409  $       75,092  $      109,054 

The accompanying notes are an integral part of the financial statemen

</TABLE


</TABLE>
<TABLE>
IGENE Biotechnology, Inc.
Statements of Operations
(Unaudited)

<CAPTION>

                                                                                            
                                        	---  Three months ended ---          
                                                         March 31,         March 31,    
                                                          1997              1996       

<S>									<C>			<C>
Sales 								$     12,194      $     22,969        
  Cost of sales 							      10,065            11,435  
										 2,129            11,534 

Technology services income 					         ---            22,159  

Net revenue 							       2,129            34,693  
  
Selling, general and administrative expenses:
     Marketing and selling 					        (792)            1,156  
     Research, development and pilot plant 		      89,372            79,103  
     General and administrative 				      91,289            83,909  
		
     Total selling, general and 
	Administrative expenses					     179,869           164,169  

Operating loss							    (177,740)         (129,476)

Other income (expenses):
     Investment income 							   ---                 1  
     Joint Venture income 					         ---               ---  
     Other income (loss) 				               ---               ---  
     Interest expense 						     (63,129)          (33,395) 
     Forgiveness of Interest on Promissory Notes 	         ---               ---  

Net loss 								    (240,869)         (162,870) 

Deficit at beginning of period 				 (21,089,133)      (20,312,260) 

Deficit at end of period 					$(21,330,002)     $(20,475,130) 

Net loss per common share 					$      (0.01)     $      (0.01) 









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

</TABLE


</TABLE>
<TABLE>
IGENE Biotechnology, Inc.
Statements of Stockholder's Deficit
(Unaudited)
<CAPTION>
                             Redeemable            
 		                       Preferred Stock  	Preferred Stock 	    Common Stock
                      (Shares/Amount)   	(Shares/Amount)  (Shares/Amount)
<S>		                      <C>             <C>            <C>
Balance at 
    December 31, 1995         38,342/$484,643 	187,500/$1,878 18,572,805/$185,728

Cumulative undeclared dividends 
	on redeemable
  preferred stock                       5,735            ---                 ---

Conversion of preferred 
	stock to common stock    (2,500)/$(31,600)           ---           5,000/$50 

Net Loss for Quarter ended 
	March 31, 1996                        ---  	          --- 	             ---  

Balance at 
  March 31, 1996              38,342/$458,778 187,500/$1,875  8,577,805/$185,778


Balance at December 31, 1996  35,842/$475,982 187,500/$1,875 18,631,139/$186,311

Cumulative undeclared dividends
  On redeemable preferred stock	5,734          	---           	---      

Net Loss for Quarter ended
	March 31, 1997	---          	---           	---      

Balance at March 31, 1997     35,842/$481,716 187,500/$1,875 18,631,139/$186,311

















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


<TABLE>
IGENE Biotechnology, Inc.
Statements of Stockholder's Deficit
(Unaudited- Continued)
<CAPTION>
					                                                       Total       
	                           Additional 		                   Stockholder's 
                            Paid-In Capital    Deficit     	 Deficit 
<S>                                 <C>            <C>           <C>
Balance at December 31, 1995          $17,843,142 	 $(20,312,260)   (2,281,515)

Cumulative undeclared 
dividends on redeemable
  preferred stock                         (5,734)	          ---         (5,734)

Conversion of preferred 
	stock to common stock                  31,550          --- 	        31,600

Net Loss for Quarter ended 
	March 31, 1996                            ---      (162,870)	     (162,870)

Balance at 
	March 31, 1996                    $17,868,958 	 $(20,475,130)	  $(2,418,519)

Balance at December 1996              $17,971,320  $(21,089,133)  $(2,929,727)

Cumulative undeclared
dividends on redeemable
  preferred stock	(5,735)     	---        	(5,735)        

Net Loss for Quarter ended
  	March 31, 1997                            ---      (240,869)     (240,869)

Balance at
	March 31, 1997                     17,965,485   (21,330,002)   (3,176,331)















The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
IGENE Biotechnology, Inc.
Statements of Cash Flows
(Unaudited)
<CAPTION>
                                        ---Three months ended---
		March 31,     March 31,               
 		    1997          1996    
<S>	<C>	<C>
Cash flows from operating activities:
  Net loss 		$(  240,869)  $(  162,870)
  Adjustments to reconcile 
  net loss to net cash
  used in operating activities:
     Depreciation and amortization 		      1,474         1,706
     Changes in assets and liabilities:
        Increase (decrease) in 
          accounts payable and
          other accrued expenses 		      5,223       (36,293)
        Debenture interest payable           45,000        30,000
        Decrease (increase) in 
          accounts receivable 		     (9,807)       (7,100)
        Decrease (increase) in prepaid
          expenses and deposits 		      9,790         (911)
  Net cash used in 
    operating activities 		   (189,189)    (175,468)
Cash flows from investing activities:
  Capital expenditures 		     (5,342)         ---  
                   
  Net cash used in investing activities      (5,342)         ---  

Cash flows from financing activities:
  Payment of amount due 
  from stockholders 		    (12,670)      44,460         
  Issuance of promissory notes 		    170,000      140,000  
  Net cash provided by (used in) 
  financing activities 		    157,330      184,680  
Net increase (decrease) in 
  cash and cash equivalents 		    (37,201)       9,212 
Cash and cash equivalents 
  at beginning of year 		     41,339        8,326  
Cash and cash equivalents at 
  end of period 		$     4,138   $   17,533  
Supplementary disclosure -
  cash paid for interest 		$       ---   $      ---  

Noncash investing and financing activities:

     During the three months ended March 31, 1997 and 1996, the Company 
recorded dividends in arrears on 8% redeemable preferred stock at $.16 per 
share aggregating $5,735 and $5,735 in each period which has been removed from 
paid-in capital and included in the carrying value of the redeemable preferred 
stock.

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

<PAGE>

	IGENE Biotechnology, Inc.

	NOTES TO FINANCIAL STATEMENTS
	(Unaudited)


(1)	Unaudited Financial Statements

The financial statements presented herein as of March 31, 1997 and 1996 and 
for the three-month period ended March 31, 1997 and 1996 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 operations.  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

None.

(3)	Stockholders' Equity

At March 31, 1997 and 1996, 71,684 shares of authorized but unissued common 
stock were reserved for issuance upon conversion of the Company's 
outstanding preferred stock.

As of March 31, 1997 and 1996, 2,000,000 shares of authorized but unissued 
common stock were reserved for exercise pursuant to the 1986 Stock Option 
Plan.

As of March 31, 1996, the Company has reserved shares for the exercise of 
Warrants to purchase an aggregate of 252,400 shares of Common Stock to 
Kimelman & Baird, LLC, at $.75 per share expiring June 26, 1996.  The 
Warrants were issued to the aforementioned for acting as placement agent 
in the Company's private placement of $510,500 in gross proceeds which 
closed June 26, 1992 and there are substantial restrictions against the 
transfer of these Warrants.  In addition, 680,667 warrants to purchase 
common stock at $.75 per share were issued to other qualified investors as 
part of the private placement.  These warrants expired June 26, 1996.  
These Warrants were not publicly traded and thre were no trades of these 
Warrants before the expiration date.

As of March 31, 1997 and 1996, 800,000 shares of authorized but unissued 
common stock were reserved for issuance upon reinvestment 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.

(4)	Net Loss Per Common Share

Net loss per common share for the three-month periods ended March 31, 1997 
and 1996 is based on 18,631,139 and 18,576,596 weighted average shares, 
respectively.  For purposes of computing net loss per common share, the 
amount of net loss has been increased by cumulative undeclared dividends 
in arrears on preferred stock.                         

	MANAGEMENT'S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Results of Operations

Sales revenue for the quarter ended March 31, 1997 decreased from $22,969 in 
the 
first quarter of 1996 to $12,195 in the first quarter of 1997.  This decrease 
(53%) resulted from a decrease in marketing efforts for ClandoSanr as the 
Company 
focuses on commercializing its AstaXinr product.  Cost of product sales as a 
percentage of product sales increased from 50% in the first quarter of 1996 to 
83% in the first quarter of 1997 because of costs incurred for packaging to 
meet 
new EPA labelling requirements. Additional sales of ClandoSanr will depend on 
continued marketing arrangements with distributors for the product and the 
Company's own limited direct sales. Long term, the Company hopes to license 
rights to manufacture, sell, and distribute ClandoSanr. The company expects to 
continue to focus its efforts on AstaXinr and is in discussion with potential 
manufacturing and marketing partners for the product.  In addition, the Company 
is actively seeking a contract manufacturer for AstaXinr or a plant which could 
be leased for production of the product. Long-term production and sale of 
AstaXinr will depend on the Company's ability to find suitable manufacturing 
partners as it has no commercial scale manufacturing facilities of its own.

Research, development and pilot plant expenses increased by 13% for the current 
quarter when compared to the corresponding quarter in 1996.  This increase was 
due to a increase in equipment repairs, as well as utility increases.  Research 
and development costs may be expected to increase gradually in support of 
increased manufacturing efforts for AstaXinr, but would be offset by technology 
licensing and sales of the product.

Marketing expenses decreased for the current quarter when compared to the 
corresponding quarter in 1996 and are related primarily to the Company's 
ClandoSanr product.  Reimbursements for freight which were posted in the 1st 
quarter of 1997 resulted in a net credit. Marketing expenses related to 
AstaXinr 
could be expected to increase if production and sales increase, and will depend 
on marketing arrangements with distributors of the product.  This income would 
be offset by revenue from sales of product.

General and administrative expenses increased by approximately 9% for the first 
quarter of 1997 over the same period in 1996.  This increase reflects an 
increase 
in legal fees for patent maintenance, as well as increased fees related to 
consulting services.

Interest expense for the quarter ended March 31, 1997 increased by 
approximately 
$29,734 over the same period in the prior year and reflects an increase in 
accumulating interest due on promissory notes issued to certain directors of 
the 
Company.


As a result of the foregoing, the Company reported a net loss of $240,869, or 
$.01 per common share during the first quarter of 1997, compared to a net loss 
of $162,870, or $.01 per common share in the same period in 1996.  The weighted 
average number of common shares outstanding increased to 18,604,171 in the 
first 
quarter of 1997 compared to 18,576,596 in the first quarter of 1996.  This 
increase in shares reflects the annual issuance of common stock as payment of 
interest on a variable note subordinated debenture.





Financial Position

In December 1988, the Company suspended payment of the quarterly dividend on 
its 
preferred stock.  Resumption of the dividend will require significant 
improvements in cash flow.  Unpaid dividends cumulate for future payment or 
increase the liquidation preference or redemption value of the preferred stock. 
As of March 31, 1997, total dividends in arrears on the Company's preferred 
stock 
was $1,214,980, of which $194,980 ($5.44 per share) was included in the 
carrying 
value of the redeemable preferred stock and $102,000 ($5.44 per share) was 
included in the liquidation preference of the preferred stock.

Liquidity and Capital Resources

Historically, the Company has been funded primarily by equity contributions, 
loans from stockholders and license fees.  As of March 31, 1997, the Company 
had 
a working capital deficit of approximately $1,229,000, and cash and cash 
equivalents of $4,138, consisting of proceeds from Promissory Notes issued to 
certain Directors of the Company described below.

Cash used by operations in the quarters ended March 31, 1997 and 1996 amounted 
to $189,189 and $175,468, respectively.  To date, the Company has achieved only 
minimal sales of its ClandoSanr and AstaXinr products while it seeks additional 
manufacturing capability for AstaXinr.

Approximately $5,300 was provided by investing activities for the quarters 
ended 
March 31, 1997 and March 31, 1996.  This is reflective of the Company's 
continued 
plan to keep capital expenditures to the minimum needed to operate efficiently.

The following is a summary of the Company's financing activities for 1996 and 
the 
quarter ended March 31, 1997:


On February 9, 1996 and March 11, 1996, the Company issued promissory notes to 
certain directors of the Company for an aggregate consideration of $140,000. 
These notes specify that at any time prior to repayment the holder has the 
right 
to convert the note to common stock of the Company at $.10 per share for the 
note 
issued February 9, 1996 and at $.09 per share for the note issued March 11, 
1996, 
and to receive warrants for an equivalent number of common shares at $.10 per 
share for the note issued February 9, 1996 and at $.09 per share for the note 
issued March 11, 1996.  The promissory notes are due on demand with interest 
charged at the prime rate.

On April 23, May 9, and June 7, 1996, the Company issued promissory notes to 
certain directors of the Company for an aggregate consideration of $177,000. 
These notes specify that at any time prior to repayment the holder has the 
right 
to convert the note to common stock of the Company at $.09 per share for the 
note 
issued April 23, 1996, $.06 per share for the note issued May 9, 1996, and $.05 
per share for the note issued June 7, 1996, and to receive warrants for an 
equivalent number of common shares at $.09 per share for the note issued April 
23, 1996, $.09 per share for the note issued May 9, 1996, and $.05 for the note 
issued June 7, 1996.  The promissory notes are due on demand with interest 
charged at the prime rate.

On July 24, and September 24, 1996, the Company issued promissory notes to 
certain directors of the Company for an aggregate consideration of $160,000. 
These notes specify that at any time prior to repayment the holder has the 
right 
to convert the note to common stock of the Company at $.115 per share for the 
note issued July 24, 1996, and $.125 per share for the note issued September 
24, 
1996, and to receive warrants for an equivalent number of common shares at 
$.115 
per share for the note issued July 24, 1996, and $.125 per share for the note 
issued September 24, 1996.  The promissory notes are due on demand with 
interest 
charged at the prime rate.

On November 13, and December 11, 1996, the Company issued promissory notes to 
certain directors of the Company for an aggregate consideration of $140,000. 
These notes specify that at any time prior to repayment the holder has the 
right 
to convert the notes to common stock of the Company at $.09 per share for the 
notes issued November 13, and December 11, 1996, and to receive warrants for an 
equivalent number of common shares at $.09 per share for the notes issued 
November 13, and December 11, 1996.  The promissory notes are due on demand 
with 
interest charged at the prime rate.

On January 14, 1997, and February 24, 1997, the Company issued promissory notes 
to certain directors of the Company for an aggregate consideration of $170,000. 
These notes specify that at any time prior to repayment the holder has the 
right 
to convert the note to common stock of the Company at $.07 per share for the 
note 
issued January 14, 1997, and $.11 per share for the note issued February 24, 
1997, and to receive warrants for an equivalent number of common shares at $.07 
per share for the note issued January 14, 1997, and $.115 per share for the 
note 
issued February 24, 1997.  The promissory notes are due on demand with interest 
charged at the prime rate.

In the long-term, the Company is continuing its development of additional 
AstaXinr technology which it hopes to license and market to benefit future 
periods.

The Company does not believe that inflation has had a significant impact on 
the 
Company's operations during te past two years.


	FORM 10QSB

	IGENE Biotechnology, Inc.
	PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

None

Item 2.  Changes in Securities

None

Item 3.  Defaults Upon Senior Securities

None

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

None

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

(a)	Exhibits

None

(b)	Reports on Form 8-K

None
           
Item 7.  Subsequent Events

On April 3, 1997, the Company issued promissory notes to certain directors 
of the Company for an aggregate consideration of $99,500.  These notes specify 
that at any time prior to repayment the holder has the right to convert the 
notes 
to common stock of the Company at $.10 per share of common stock and to receive 
warrants for an equivalent number of common shares at $.10  per share.  The 
promissory notes are due on demand with interest charged at the prime rate.

On May 8 and 9, 1997, the Company issued promissory notes to certain 
directors of the Company for an aggregate consideration of $136,000.  These 
notes 
specify that at any time prior to repayment the holder has the right to convert 
the notes to common stock of the Company at $.135 per share of common stock and 
to receive warrants for an equivalent number of common shares at $.135 per 
share. 
The promissory notes are due on demand with interest charged at the prime rate.
 

	FORM 10QSB

	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, thereunto duly authorized.



     IGENE Biotechnology, Inc.       
       (Registrant)


Date:  May 15, 1997     
  /s/  Stephen F. Hiu                
 Stephen F. Hiu  
 President, Treasurer and 
 Secretary
(On behalf of the Registrant and as
 Principal Financial Officer)