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 March 31, 2000

[   ]    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:
52,208,881 shares as of April 7, 2000.

Transitional Small Business Disclosure Format (check one):

Yes                      No       x
         ---                     ---
<PAGE>
                             FORM 10-QSB
                      IGENE Biotechnology, Inc.

<TABLE>
<CAPTION>
                               INDEX



PART I    -    FINANCIAL INFORMATION
                                                             Page
          <S>                                              <C>
          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
</TABLE>
<PAGE>
                      IGENE BIOTECHNOLOGY, INC.

             QUARTERLY REPORT UNDER SECTION 13 OR 15(D)

               OF THE SECURITIES EXCHANGE ACT OF 1934

<PAGE>

                               PART I

                        FINANCIAL INFORMATION

<PAGE>

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


                                          March 31,      March 31,     December 31,
                                              2000           1999             1999
                                        -----------    -----------     ------------
                                        (Unaudited)    (Unaudited)
<S>                                     <C>            <C>              <C>
ASSETS
CURRENT ASSETS

  Cash and cash equivalents             $  117,585     $   68,989       $  216,297
  Accounts receivable                          ---          6,887           24,267
  Inventory                                631,795        870,260          707,595
  Loans receivable                         206,780        250,783          206,780
  Prepaid expenses
    and other current assets               158,136        222,400          153,160
                                        -----------    -----------      -----------
                                         1,114,296      1,419,319        1,308,099


OTHER ASSETS
  Property and equipment, net              353,216        358,386          366,484
  Other assets                             131,903        179,970          142,489
                                        -----------    -----------      -----------
     TOTAL ASSETS                       $1,599,415     $1,957,675       $1,817,072
                                        ===========    ===========      ===========
</TABLE>
   The accompanying notes are an integral part of the financial
                           statements.

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


                                          March 31,      March 31,      December 31,
                                              2000           1999              1999
                                        -----------    -----------      ------------
                                        (Unaudited)    (Unaudited)
<S>                                     <C>            <C>              <C>
LIABILITIES, REDEEMABLE PREFERED STOCK
  AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
  Accounts payable and accrued expenses $  259,122     $  231,507       $   268,081

LONG-TERM DEBT
  Notes payable                          6,077,300      6,092,500         6,082,500
  Variable rate subordinated debenture   1,500,000      1,500,000         1,500,000
  Accrued Interest                         973,200        486,600           851,550
                                        -----------    -----------      ------------
     TOTAL LIABILITIES                   8,809,622      8,310,607         8,702,131
                                        -----------    -----------      ------------

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 $15.36, $14.72,
     and $15.20, respectively.  Authorized
     1,312,500 shares, issued 26,467, 29,592,
     and 26,467 shares, respectively       406,533        435,594           402,298
                                        -----------    -----------      ------------
STOCKHOLDERS' DEFICIT
  Common stock, $.01 par value per share.
     Authorized, 250,000,000 shares;
     issued and outstanding 51,868,881,
     26,887,540, and 47,598,758 shares,
     respectively.                         518,689        268,875           475,988
  Additional paid-in capital            20,317,168     18,982,720        20,238,904
  Deficit                              (28,452,597)   (26,040,121)      (28,002,249)
                                        -----------    -----------      ------------
     TOTAL STOCKHOLDERS' DEFICIT        (7,616,740)    (6,788,526)       (7,287,357)
                                        -----------    -----------      ------------
     TOTAL LIABILITIES AND
       STOCKHOLDERS'  DEFICIT           $1,599,415     $1,957,675       $ 1,817,072
                                        ===========    ===========      ============
</TABLE>

  The accompanying notes are an integral part of the financial
                           statements.
<PAGE>
<TABLE>
<CAPTION>
                    IGENE Biotechnology, Inc.
                    Statements of Operations
                           (Unaudited)




                                               Three months ended
                                          --------------------------------
                                             March 31,         March 31,
                                                 2000              1999
                                          -------------      -------------
<S>                                       <C>                <C>
Sales                                     $     78,536       $        ---
Cost of sales                                   87,433             20,436
                                          -------------      -------------
   Gross profit (loss)                          (8,897)           (20,436)

Technology licensing income                        ---              1,167
                                          -------------      -------------
   Net revenue                                  (8,897)           (19,269)
                                          -------------      -------------

Selling, General & Administrative expenses:
  Marketing and selling                         79,141              6,450
  Research, development and pilot plant         92,609            100,298
  General and administrative                    84,869             90,811
  Litigation expenses                           11,046            175,737
                                          -------------      -------------
             Total operating expenses          267,665            373,296
                                          -------------      -------------
             Operating loss                   (276,562)          (392,565)
                                          -------------      -------------
Other income (expense)
  Interest expense, net of
     interest income of $3,544,
     and $6,672, respectively                 (173,786)          (170,647)
                                          -------------      -------------
              Net loss                    $   (450,348)      $   (563,212)
                                          =============      =============
             Net loss per common share    $      (0.01)      $      (0.03)
                                          =============      =============
</TABLE>

  The accompanying notes are an integral part of the financial
                           statements.
<PAGE>
<TABLE>
<CAPTION>
                    IGENE Biotechnology, Inc.
               Statements of Stockholders' Deficit
                           (Unaudited)



                                             Redeemable Preferred Stock
                                                  (shares/amount)
                                             --------------------------
<S>                                          <C>            <C>
Balance at December 31, 1998                     29,592     $  430,860

Cumulative undeclared dividends
  on redeemable preferred stock                     ---          4,734

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

Issuance of common stock
  pursuant to direct purchase
  by certain directors and
  other accredited investors                        ---            ---

Net loss for three months
  ended March 31, 1999                              ---            ---
                                             -----------    -----------
Balance at March 31, 1999                        29,592     $  435,594
                                             ===========    ===========

Balance at December 31, 1999                     26,467     $  402,298

Cumulative undeclared dividends
  on redeemable preferred stock                     ---          4,235

Exercise of employee stock options                  ---            ---

Exercise of warrants                                ---            ---

Net loss for three months ended
  March 31, 2000                                    ---            ---
                                             -----------    -----------
Balance at March 31, 2000                        26,467     $  406,533
                                             ===========    ===========
</TABLE>
  The accompanying notes are an integral part of the financial
                           statements.
<PAGE>
<TABLE>
<CAPTION>
                    IGENE Biotechnology, Inc.
               Statements of Stockholders' Deficit
                     (Unaudited - Continued)


                                                             Additional                    Total
                                          Common Stock       Paid-in                       Stockholders'
                                         (shares/amount)     Capital       Deficit         Deficit
                                      ---------------------  ------------- -------------   -------------
<S>                                   <C>         <C>        <C>           <C>             <C>
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             ---       ---         (4,734)          ---          (4,734)

Issuance of common stock in lieu of
   cash in payment of legal
   retainers and fees                    866,667     8,666         41,083           ---          49,749

Issuance of common stock
   pursuant to direct purchase
   by certain directors and
   other accredited investors          4,166,700    41,667        208,333           ---         250,000

Net loss for three months ended
   March 31, 1999                            ---       ---            ---      (563,212)       (563,212)
                                      ----------  --------   -------------  -------------  -------------
Balance at March 31, 1999             26,887,540  $268,875   $ 18,982,720   $(26,040,121)  $ (6,788,526)
                                      ==========  ========   =============  =============  =============

Balance at December 31, 1999          47,598,758  $475,988   $ 20,238,904   $(28,002,249)  $ (7,287,357)

Cumulative undeclared dividends
  on redeemable preferred stock              ---       ---         (4,235)           ---         (4,235)

Exercise of employee stock options     1,200,000    12,000        108,000            ---        120,000

Exercise of warrants                   3,070,123    30,701        (25,501)           ---          5,200

Net loss for three months ended
  March 31, 2000                             ---       ---            ---       (450,348)      (450,348)
                                      ----------  --------   -------------  -------------  -------------
Balance at March 31, 2000             51,868,881  $518,689   $ 20,317,168   $(28,452,597)  $ (7,616,740)
                                      ==========  ========   =============  =============  =============
</TABLE>
  The accompanying notes are an integral part of the financial
                           statements.
<PAGE>
<TABLE>
<CAPTION>

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


                                                                 Three months ended
                                                              March 31,       March 31,
                                                                  2000            1999
                                                            -----------     -----------
<S>                                                         <C>             <C>
Cash flows from operating activities:
   Net loss                                                 $ (450,348)     $ (563,212)
   Adjustments to reconcile net loss to net cash provided
     By operating activities:
     Depreciation                                               14,247          14,247
     Amortization                                               10,586          10,586
     Interest on debenture paid in shares of common stock       45,000          45,000
     Decrease (increase) in:
       Accounts receivable                                      24,267          (6,887)
       Inventory                                                75,800             ---
       Prepaid expenses and other current assets                (4,977)        (97,574)
     Increase (decrease) in:
       Accounts payable and accrued expenses                    67,692          54,609
                                                            -----------     -----------
       Net cash used in operating activities                  (217,733)       (543,231)
                                                            -----------     -----------
Cash flows from investing activities:
   Proceeds from disposal of equipment                             ---             460
   Capital expenditures                                           (979)         (3,036)
                                                            -----------     -----------
       Net cash used in investing activities                      (979)         (2,576)
                                                            -----------     -----------
Cash flows from financing activities:
   Proceeds from direct purchase of common stock                   ---         250,000
   Proceeds from exercise of employee stock options            120,000             ---
                                                            -----------     -----------
       Net cash provided by financing activities               120,000         250,000
                                                            -----------     -----------
       Net decrease in cash  and cash equivalents              (98,712)       (295,807)

       Cash and cash equivalents
         at beginning of period                                216,297         364,796
                                                            -----------     -----------
       Cash and cash equivalents
         at end of period                                   $  117,585      $   68,989
                                                            ===========     ===========

</TABLE>

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

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



Noncash investing and financing activities:

During  the  three  months ended March 31,  2000  and  1999,  the
Company  recorded dividends in arrears on 8% redeemable preferred
stock   at   $.16  per  share  aggregating  $4,235  and   $4,734,
respectively,  which  has been removed from paid-in  capital  and
included in the carrying value of the redeemable preferred stock.

During  the  three  months  ended March  31,  1999,  the  Company
satisfied  accounts  payables of $20,000 and  made  advances  for
legal  retainers of $29,749 by issuing 866,667 shares  of  common
stock to counsel in its on-going litigation.

During  the  three  months  ended  March  31,  2000,  holders  of
3,994,500  warrants  issued  in the March  1998  Rights  Offering
exercised  those  warrants using $5,200 of 8% notes  payable  and
utilizing 924,377 warrants in cashless exercises.  3,070,123  new
shares of common stock were issued pursuant to these exercises of
warrants and $5,200 of 8% notes were cancelled.


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

                    IGENE Biotechnology, Inc.
                  Notes to Financial Statements

(1)  Unaudited financial statements

     The  financial statements presented herein as of  March  31,
     2000 and 1999 and for the three 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             624,745
                                -------------
               Total inventory  $    631,795
                                =============

(3)  Stockholders' Equity (Deficit)

     At  March 31, 2000 and 1999, 52,934 shares of authorized but
     unissued   common  stock  were  reserved  for   issue   upon
     conversion of the Company's outstanding preferred stock.

     As  of  March  31, 2000 and 1999, 20,210,166 and  21,410,166
     shares of authorized but unissued common stock were reserved
     for exercise pursuant to the Company's Employee Stock Option
     Plans.

     As  of  March 31, 2000 and 1999, 240,000 and 320,000 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  March  31,  2000  and  1999,  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  March 31, 2000 and 1999, 121,759,345 and 109,467,678
     shares,  respectively,  of authorized  but  unissued  common
     stock   were   reserved  for  the  exercise  of  outstanding
     warrants.

     As  of  March 31, 2000, 10,000,000 shares of authorized  but
     unissued  common  stock  were  reserved  for  issuance  upon
     receipt of $1,000,000 in funding for operations pursuant  to
     the  commitment of February 8, 2000 by certain directors  of
     the  Company.  An additional 10,000,000 shares of authorized
     but  unissued common stock were reserved for warrants  which
     will be issued concurrently with this funding.

(4)  Net loss per common share

     Net  loss per common share for the three-month periods ended
     March  31,  2000  and  1999  is  based  on  48,748,245   and
     25,322,345, 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.

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

(5)  Contingency - Litigation

    On  July  21,  1997 Archer Daniels Midland, Inc. (ADM)  filed
    suit  against  the  Company in the  U.S.  District  Court  in
    Baltimore,   Maryland   alleging  patent   infringement   and
    requesting  injunctive  relief and an unspecified  amount  of
    damages   predicated  on  the  alleged  infringement,   which
    pertains  to the Company's 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,  the  court  has
    imposed  a  stay  on  all discovery, while a  court-appointed
    expert   analyzes  the  yeast  products  of   both   parties.
    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 $11,046 and $175,737, respectively,
    in  the  three months ended March 31, 2000 and 1999  relating
    to this litigation, which is on going.

(6)  Subsequent Events

    On  April 28, 2000, the Company received $200,000 in a direct
    purchase  by  certain directors of 2,000,000  new  shares  of
    common  stock  at  $.10  per  share.   These  directors  also
    received warrants to purchase an additional 2,000,000  shares
    at  $.10  per  share.  This transaction is  the  first  in  a
    planned  series of direct purchases of common stock  pursuant
    to  a  commitment, on February 8, 2000, by certain directors,
    to  provide  total funding of up to $1,000,000.  These  funds
    will  be  used to continue the operations of the Company  and
    fund legal expenses associated with ongoing litigation.

    In  April  2000, the Company completed the formation  of  its
    Chilean  subsidiary,  Igene  Comercial  Chile,  Ltda.    This
    subsidiary  was  formed to facilitate  the  continuation  and
    increase of sales of AstaXin(R) in Chile.  The  Company  also
    hired,  during  April 2000, a second technical representative
    in Chile.

 <PAGE>
                    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 and other revenue
    Sales of AstaXin(R)  were $78,536 during  the  quarter  ended
March  31,  2000 and based on orders received to date, sales  for
the  quarter ended June 30, 2000 are expected to exceed $150,000.
During April of 2000, the Company completed the formation of  its
Chilean  subsidiary, Igene Comercial Chile, Ltda.,  and  hired  a
second  technical representative in its office in  Puerto  Montt,
Chile.    During  the fourth quarter of 1999, the  Company  began
large-scale commercial trials of AstaXin(R) with several  of  the
major  salmon farmers in Chile. These trials, which take  between
nine  and  twelve  months  each to complete,  resulted  in  sales
beginning during the fourth quarter of 1999.  During the  quarter
ended  March 31, 2000, two customers completed their trials  with
excellent  results,  and have indicated their  desire  to  expand
their usage of  AstaXin(R) to 5 to 10 times their current  usage,
beginning in the second quarter of 2000.  However, there  can  be
no  assurance that these communications will result in sales,  or
that  they will be material. Throughout the second through fourth
quarters  of  2000,  other companies, whose  trials  are  now  in
progress,  are  expected  to complete  their  commercial  trials.
These  trials are expected to have similarly good results,  based
on  preliminary  data  obtained thus far, and  should  result  in
additional  and  increased sales to these  companies  during  and
following  the  trials.  However, there can be no assurance  that
such sales will occur or that they will be material.  The Company
had  no  sales of  AstaXin(R) during the three months ended March
31, 1999.  This represents an increase of $78,536 for  the  first
quarter of 2000 over the same quarter in the prior year.   During
the  first  quarter  of  2000 and 1999, the  Company  engaged  in
substantial  marketing efforts on its own behalf.   During  1999,
the  Company discontinued marketing through a former distributor,
since  that  distributor had been unsuccessful in  its  marketing
efforts.

      The Company  earned  no licensing revenue from ClandoSan(R)
during  the  quarter  ended March 31, 2000, compared  with  gross
revenue  from licensing of ClandoSan(R) of $1,167  in  the  first
quarter  of 1999.  The Company continues to focus its efforts  on
AstaXin(R) during the quarter ended March 31, 2000.

    The  foregoing resulted in total sales and other revenues for
the  quarter  ended  March 31, 2000 of  $78,536,  increased  from
$1,167  in  the  first quarter of 1999.  This is an  increase  in
total revenue of  $77,369 for the first quarter of 2000 over  the
first quarter of 1999.

Cost of sales and gross profit (loss)
Based  on  orders received during the first quarter of  2000  and
additional  orders expected from present customers,  the  Company
plans to resume commercial production of AstaXin(R) in May  2000,
since  the successful commercial trials of the product (see Sales
and  other  revenue,  above) have resulted and  are  expected  to
continue to result in

<PAGE>

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

Cost of sales and gross profit (loss) (continued)
increased sales of AstaXin(R). However, there can be no assurance
that  such  sales will occur or that they will be  material.  The
Company  expects  to incur future production costs for AstaXin(R)
of  at  least  $200,000  per  month beginning during May of 2000,
which 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. Once the Company is producing and selling AstaXin(R)
at  a  gross  profit,  management  plans  to  expand   production
capacity,  using   available   facilities, to  meet  an  expected
increase  in demand for AstaXin(R).

    During   a   successful  implementation   test   of   certain
improvements in its production process, which had been  developed
in the Company's pilot plant, commercial production of AstaXin(R)
was  suspended  during the first quarter of  1999.   A  temporary
resumption  of  production  during the  second  quarter  of  1999
confirmed   that   these  improvements  resulted   in   increased
efficiency  and yields in the manufacturing process.  During  the
remainder of 1999, and continuing until the  present,  AstaXin(R)
production   continued  to  be  suspended,  until  sales   volume
warranted  additional  commercial production.   Production  on  a
small, experimental scale continued in the Company's pilot  plant
in  order  to  continue to improve production technology.   While
production  has been suspended, the Company has provided  product
for  the  market  from  its  existing inventory.   The  preceding
resulted  in cost of sales for the quarter ended March  31,  2000
and  1999  of  $87,433 and $20,436, respectively, an increase  of
$66,997 or 327%.

    Gross losses on  sales of AstaXin(R) for  the  quarter  ended
March 31, 2000 and 1999 were $8,897 and  $20,436, respectively, a
decrease  of $11,539 or 56%.   Sales represented product produced
in  1998  and  during  the second quarter  of  1999.   Production
efficiency  improved continually during 1998 and  1999,  and  the
Company expects to achieve gross profits on sales  of  AstaXin(R)
which  will  be produced in 2000, provided that sufficient  sales
are achieved.  However, there can be no assurance that such gross
profits will be realized or that they will be material.

    There  were  no  production costs for ClandoSan(R) during the
first   quarter  of  2000  and  1999,  since  the   Company   has
discontinued  direct  production and sales of  this  product  and
earns  revenue  only through royalties on sales by  its  licensed
manufacturer, incurring no costs of sales.

Marketing and selling expenses
    Based  on successful results of  commercial trials in  Chile,
customers  have,  and  are  expected  to  continue  to,  purchase
additional  quantities  of  AstaXin(R)  both during and following
these trials.  During  the  first quarter of  2000,  the  Company
also engaged a full-time consultant to market AstaXin(R)in Europe
and to   explore  the  market  for the use  of  AstaXin(R)  as  a
human nutritional supplement.   During the large scale commercial
trials of AstaXin(R) as described  above  (see  also   Sales  and
other  revenue),  the  Company   delivered  large  quantities  of
AstaXin(R) either   free  to  the customer  or at reduced  prices
during the initial  stages  of  the trial periods. The  Company's
executive employees have traveled extensively to Chile to promote
AstaXin(R)  beginning  in 1999 and  continuing during the quarter
ended  March  31,  2000.  The  Company  also  hired  a  technical
representative  in  Chile  during the fourth quarter of 1999, and
during  April  of  2000  has  completed  formation  of  a foreign
subsidiary   in   Chile,  and  hired   an  additional   technical
representative.   The  full-time  consultant   engaged  to market
AstaXin(R)  in  Europe  and  to  explore  the  market  for  human
nutritional supplements has  considerable experience  in both the
salmon farming industry and in  the  human nutritional supplement
market. The forgoing resulted in marketing and  selling  expenses
for the first quarter of 2000 and  1999  of  $79,141  and $6,450,
respectively, an increase of $72,691.

    Marketing expenses for AstaXin(R) are expected to continue to
increase,  since to achieve continuing and increasing sales,  and
to enter other markets for AstaXin(R),  the Company will need  to
make additional marketing efforts both on its own behalf and with
the help of distributors or marketers.  These additional expenses
are expected to be funded by revenues from product sales, however
there  can be no assurance that these sales will occur,  or  that
they will be material.

<PAGE>

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

Research, development and pilot plant expenses
     Research, development and pilot plant expenses are  expected
to  continue at approximately $35,000 per month in the near  term
in  support  of  increasing the efficiency of  the  manufacturing
process  through  experimentation in the Company's  pilot  plant,
development  of  higher  yielding  strains  of  yeast  and  other
improvements  in  the  Company's  AstaXin(R) technology.  For the
first quarter of  2000  and  1999,  these expenses  were  $92,609
and $100,298, respectively, a decrease of $7,689 or 8%.  However,
there  can  be no assurance that such improvements in  efficiency
and  yield will continue to occur, or that they will be material.
These  expenses  are  expected to be  funded  through  additional
funding  from  stockholders,  and by  profitable  operations,  if
profitable operations occur.

General and administrative expenses
    General and administrative expenses for the first quarter  of
2000  and 1999 were $84,869 and $90,811, respectively, a decrease
of  $5,942  or  7%.   General  and  administrative  expenses  are
expected to continue in the near future at approximately  $35,000
per  month.   These  expenses  are  expected  to  be  funded   by
additional   funding  from  stockholders,   and   by   profitable
operations, if profitable operations occur.

Litigation expenses
    Management   expects   to   ultimately   recover   litigation
expenses,  which are associated with the suit filed  against  the
Company  by  ADM  and the Company's counterclaim, through  damage
awards  and through 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 first quarter  of
2000 and 1999 were $11,046 and $175,737, respectively, a decrease
of  $164,691  or  94%. Expenses associated  with  this  on  going
litigation  decreased for the quarter ended March  31,  2000,  as
compared to the first quarter in the prior year,  since a stay on
all  discovery  has  remained in effect while a  court  appointed
expert  analyzes the yeast product of both parties to  the  suit.
Costs  of  litigation will continue in the near future at  levels
based  on  management's continuing assessments of  the  potential
costs   and   benefits  of  various  litigation  strategies   and
alternatives.  These  expenses  are  expected  to  be  funded  by
additional  funding  from stockholders.   A range  of  reasonably
possible losses from the litigation cannot be estimated  at  this
time.

Interest expense (net of interest income)
    Interest  expense  (net  of interest income)  for  the  first
quarter of 2000 and 1999 was $173,786 and $170,647, respectively,
an  increase  of  $3,139 or 2%.  This interest  expense  (net  of
interest income) was almost entirely composed of interest on  the
Company's  long  term  financing from  its  directors  and  other
stockholders,   and   interest  on  the  Company's   subordinated
debenture in both periods.

Net loss and net loss per common share
    As  a  result  of  the  foregoing, the Company  reported  net
losses  of  $450,348 and $563,212, respectively,  for  the  first
quarters of 2000 and 1999; a decreased loss of $112,865  or  20%.
This is a loss of $.01 and $.03 per share, respectively, for  the
first quarters of 2000 and 1999.  The weighted average number  of
shares of common stock outstanding of  48,748,245 and 25,322,345,
respectively,  for  the  first quarters of  2000  and  1999  have
increased by 23,425,900 shares.  This resulted from the  issuance
of  80,000  shares in lieu of interest payment on a  subordinated
debenture, the conversion of 3,125 shares of preferred stock into
6,250  shares of common stock, the issue of 20,625,001 shares  of
stock  to directors and other investors in direct purchases,  the
issuance  of  1,200,000 shares of common stock  pursuant  to  the
exercise of employee stock options, and the issuance of 3,070,123
shares of common stock pursuant to the exercise of warrants.

Financial Position
------------------
During  the quarters ended March 31, 2000 and 1999, the following
actions   also   materially  affected  the  Company's   financial
position:

  -  The Company sold inventory with a value, at lower of cost or
  market, of $75,800 during the quarter ended March 31, 2000.

<PAGE>


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

Financial Position (continued)
------------------------------
  -  The  Company  applied legal retainers  included  in  prepaid
  expenses  of  approximately  $161,660  against  legal  expenses
  incurred  pursuant  to  on  going litigation during the quarter
  ended March 31, 1999.

  -  The Company received $250,000 in proceeds during the quarter
  ended  March 31, 1999 in issuances of 4,166,700 shares  of  new
  common  stock through direct purchases by directors  and  other
  accredited investors.

  -  The Company received $120,000 in proceeds during the quarter
  ended March 31, 2000 pursuant to the exercise of employee stock
  options, issuing 1,200,000 shares of new common stock.

     In  December 1988, as part of an overall effort  to  contain
costs and conserve working capital, 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 addition to  the
liquidation  preference  or redemption  value  of  the  preferred
stock.   As of March 31, 2000, total dividends in arrears on  the
Company's  preferred stock total $194,797 ($7.36 per  share)  and
are  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 March 31,
2000  the  Company had working capital of $855,174, and cash  and
cash equivalents of $117,585.

    Cash  used by operating activities during the quarters  ended
March  31,  2000  and  1999 amounted to  $217,733  and  $543,231,
respectively.

    Cash  used by investing activities decreased by $1,597,  from
$2,576  for  the  quarter ended March 31, 1999 to  $979  for  the
quarter ended March 31, 2000.  This was primarily as a result  of
decreased capital expenditures.

    Cash  provided by financing activities decreased by  $130,000
from  $250,000 for the quarter ended March 31, 1999  to  $120,000
for  the  quarter  ended  March 31,  2000.  Financing  activities
consisted  of  $120,000  in proceeds from exercises  of  employee
stock  options  during the quarter ended March 31,  2000  and  of
$250,000 from the direct purchase of stock by directors and other
accredited investors during the quarter ended March 31, 1999.

    Over  the  next twelve months, the Company believes  it  will
need  at  least  $2,000,000 in additional working  capital.   The
Company  hopes  to  achieve  this  from  profits  from  sales  of
AstaXin(R) and  additional  stockholder  funding  through  direct
purchases  of stock.  On  February 8, 2000, certain directors  of
the  Company committed  to provide up to $1,000,000 in additional
funding  to the  Company  through  direct  purchases  of   stock.
However, there can be no assurance  that profits,  if  any,  from
sales,  or additional funding will be available to the Company to
fund  its  continued  operations.  The  Company  intends to spend
approximately   $420,000   on  technology  research over the next
twelve  months  to improve  manufacturing  processes and research
new  strains  for production of pigments.

    The  Company  does  not  believe that  inflation  has  had  a
significant  impact on its operations during the  quarters  ended
March 31, 2000 and 1999.

<PAGE>

                    IGENE Biotechnology, Inc.
                             PART II
                        OTHER INFORMATION

     Item 1.  Legal Proceedings

              On July 21, 1997 Archer Daniels Midland, Inc. (ADM)
          filed  suit  against the Company in the  U.S.  District
          Court    in   Baltimore,   Maryland   alleging   patent
          infringement  and requesting injunctive relief  and  an
          unspecified amount of damages predicated on the alleged
          infringement,   which   pertains   to   the   Company's
          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,  the  court  has
          imposed  a  stay  on  all  discovery,  while  a  court-
          appointed  expert analyzes the yeast products  of  both
          parties.   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.  While no  assurance  can  be
          provided, 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  $11,046   and   $175,737,
          respectively, in the three months ended March 31,  2000
          and  1999  relating  to this litigation,  which  is  on
          going.

     Item 2.  Changes in Securities and Use of Proceeds.

     Limitation on Payment of Dividends
     ----------------------------------
          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.

     Sales of Unregistered Securities
     --------------------------------
          During  March  of  2000, holders of 3,994,500  warrants
          issued  in  the  March 1998 Rights  Offering  exercised
          those  warrants  using $5,200 of 8% notes  payable  and
          utilizing   924,377  warrants  in  cashless  exercises.
          3,070,123  new  shares  of  common  stock  were  issued
          pursuant  to these exercises of warrants and $5,200  of
          8% notes were cancelled.

          The  above  securities  were exempt  from  registration
     requirements pursuant to Section 4(2).

     Item 3.  Defaults Upon Senior Securities.

          In  December  1988,  as part of an  overall  effort  to
          contain costs and conserve working capital, 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  addition  to
          the  liquidation preference or redemption value of  the
          preferred stock.  As of March 31, 2000, total dividends
          in  arrears  on  the  Company's preferred  stock  total
          $194,797  ($7.36  per share) and are  included  in  the
          carrying value of the redeemable preferred stock.

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


     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

             27.  Financial Data Schedule

        (b)          Reports on Form 8K

                       None

<PAGE>

                           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   May 3, 2000            By      /s/Stephen F. Hiu
            -----------               ---------------------------
                                      Stephen F. Hiu
                                      President and Treasurer
                                      (On  behalf of the Registrant
                                      and as Principal
                                      Financial Officer)

<PAGE>