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, 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 Identification No.)
 Incorporation or organization)


         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:
62,248,881 as of November 2, 2000.

Transitional Small Business Disclosure Format (check one):

Yes                      No        x

                                 -1-

                             FORM 10-QSB
              IGENE Biotechnology, Inc. and Subsidiary


                                INDEX


PART I -  FINANCIAL INFORMATION
                                                                 Page

          Consolidated Balance Sheets                            5-6

          Consolidated Statements of Operations                    7

          Consolidated Statements of Stockholder's Deficit       8-9

          Consolidated Statements of Cash Flows                10-11

          Notes to Consolidated Financial Statements           12-15

          Management's Discussion and Analysis of Financial
          Condition and Results of Operations                  16-20

PART II - OTHER INFORMATION                                       21

SIGNATURES                                                        22

                                 -2-

              IGENE BIOTECHNOLOGY, INC. AND SUBSIDIARY

             QUARTERLY REPORT UNDER SECTION 13 OR 15(D)

               OF THE SECURITIES EXCHANGE ACT OF 1934

                                 -3-

                               PART I

                        FINANCIAL INFORMATION

                                 -4-

Item 1.  Financial Statements.

<TABLE>
            IGENE Biotechnology, Inc. and Subsidiary
                   Consolidated Balance Sheets

<CAPTION>
                                               September 30,   September 30,    December 31,
                                                        2000            1999            1999
                                               -------------   -------------   -------------
                                                (Unaudited)     (Unaudited)
<S>                                            <C>             <C>             <C>
ASSETS

CURRENT ASSETS

  Cash and cash equivalents                    $     305,529   $      12,753   $     216,297
  Accounts receivable                                131,932          13,205          24,267
  Inventory                                          808,127         990,320         707,595
  Loan receivable                                        ---         223,902         206,780
  Prepaid expenses and other current assets          212,148         175,996         153,160
                                               -------------   -------------   -------------
     TOTAL CURRENT ASSETS                          1,457,736       1,416,176       1,308,099

OTHER ASSETS
  Property and equipment, net                        131,395         342,157         366,484
  Deferred Costs, net                                522,251         148,199         137,613
  Other assets                                         5,861           4,875           4,876
                                               -------------   -------------   -------------
     TOTAL ASSETS                              $   2,117,243   $   1,911,407   $   1,817,072
                                               =============   =============   =============

</TABLE>




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

                               -5-

            IGENE Biotechnology, Inc. and Subsidiary
                   Consolidated Balance Sheets
                           (continued)

<TABLE>
<CAPTION>
                                               September 30,   September 30,    December 31,
                                                        2000            1999            1999
                                               -------------   -------------   -------------
                                                (Unaudited)     (Unaudited)
<S>                                            <C>             <C>             <C>

LIABILITIES, REDEEMABLE PREFERRED STOCK
  AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
  Accounts payable and accrued expenses        $    644,800    $    214,185    $    268,081
LONG-TERM DEBT
  Promissory notes payable                        6,077,300       6,146,199       6,082,500
  Variable rate subordinated debenture            1,500,000       1,500,000       1,500,000
  Accrued Interest                                1,199,703         729,900         851,550
                                               -------------   -------------   -------------
     TOTAL LIABILITIES                            9,421,803       8,590,284       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 $15.68, $15.04,
     and $15.20, respectively.  Authorized
     1,312,500 shares, issued 26,467, 29,592,
     and 26,467 shares, respectively                415,003         445,064         402,298
                                               -------------   -------------   -------------
STOCKHOLDERS' DEFICIT
  Common stock, $.01 par value per share.
     Authorized, 250,000,000 shares;
     issued and outstanding 62,208,881,
     39,427,508, and 47,598,758 shares,
     respectively                                   622,089         394,275         475,988
  Additional paid-in capital                     21,325,298      19,687,851      20,238,904
  Deficit                                       (29,666,950)    (27,206,067)    (28,002,249)
                                               -------------   -------------   -------------
     TOTAL STOCKHOLDERS' DEFICIT                 (7,719,563)     (7,123,941)     (7,287,357)
                                               -------------   -------------   -------------
     TOTAL LIABILITIES, REDEEMABLE
       PREFERRED STOCK AND
       STOCKHOLDERS'  DEFICIT                  $  2,117,243    $  1,911,407    $  1,817,072
                                               =============   =============   =============
</TABLE>





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

                               -6-

           IGENE Biotechnology, Inc. and Subsidiary
              Consolidated Statements of Operations
                           (Unaudited)


<TABLE>
<CAPTION>
                                                 Three months ended             Nine months ended
                                            ----------------------------   ----------------------------
                                            September 30,  September 30,   September 30,  September 30,
                                                     2000           1999            2000           1999
                                            -------------  -------------   -------------  -------------
<S>                                         <C>            <C>             <C>            <C>
Sales                                       $    129,575   $        ---    $    388,742   $        ---
Cost of sales                                    198,702          6,407         471,359        126,252
                                            -------------  -------------   -------------  -------------
  Gross profit (loss)                            (69,127)        (6,407)        (82,617)      (126,252)
                                            -------------  -------------   -------------  -------------
Selling, General & Administrative expenses:
  Marketing and selling                          197,586         58,766         456,184        111,691
  Research, development and pilot plant           89,629        104,595         267,205        294,995
  General and administrative                     127,194         74,834         337,296        248,554
  Litigation expenses                              1,352         75,479          13,248        433,973
                                            -------------  -------------   -------------  -------------
     Total operating expenses                    415,761        313,674       1,073,933      1,089,213
                                            -------------  -------------   -------------  -------------

     Operating loss                             (484,888)      (320,081)     (1,156,550)    (1,215,465)
                                            -------------  -------------   -------------  -------------
Other income (expense)
  Interest expense, net of
     interest income of $91, $3,570,
     $3,737 and $14,519, respectively           (169,298)      (173,903)       (512,301)      (517,609)
  Other                                            2,000            742           4,150          3,916
                                            -------------  -------------   -------------  -------------
     Net loss                               $   (652,186)  $   (493,242)   $ (1,664,701)  $ (1,729,158)
                                            =============  =============   =============  =============

     Net loss per common share              $      (0.01)  $      (0.01)   $      (0.03)  $      (0.06)
                                            =============  =============   =============  =============

</TABLE>



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

                               -7-

            IGENE Biotechnology, Inc. and Subsidiary
        Consolidated Statements of Stockholders' Deficit
                           (Unaudited)

<TABLE>
<CAPTION>
                                                       Redeemable Preferred Stock
                                                            (shares/amount)
                                                       --------------------------
<S>                                                    <C>             <C>
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 fees                              ---             ---

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

Net loss for nine months ended
  September 30, 1999                                         ---             ---
                                                       ----------      ----------
Balance at September 30, 1999                             29,592       $ 445,064
                                                       ==========      ==========

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

Cumulative undeclared dividends
  on redeemable preferred stock                              ---          12,705

Exercise of employee stock options                           ---             ---

Exercise of warrants                                         ---             ---

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

Issuance of common stock pursuant to
  Direct purchases by certain directors                      ---             ---

Net loss for nine months
  ended September 30, 2000                                   ---             ---
                                                       ----------      ----------
Balance at September 30, 2000                             26,467         415,003
                                                       ==========      ==========

</TABLE>

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

                               -8-

            IGENE Biotechnology, Inc. and Subsidiary
        Consolidated Statements of Stockholders' Deficit
                     (Unaudited - Continued)

<TABLE>
<CAPTION>

                                                                    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                ---         ---         (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 purchases
  by certain directors and other
  accredited investors                  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)
                                        ==========    ========    =============    =============  =============

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               ---         ---         (12,705)             ---        (12,705)

Exercise of employee stock options       1,500,000      15,000         135,000              ---        150,000

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

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 pursuant
   to direct purchases by
   certain directors                    10,000,000     100,000         900,000              ---      1,000,000

Net loss for nine months ended
   September 30, 2000                          ---         ---             ---       (1,664,701)    (1,664,701)
                                        ----------    --------    -------------    -------------  -------------

Balance at September 30, 2000           62,208,881    $622,089    $ 21,325,298     $(29,666,950)  $ (7,719,563)
                                        ==========    ========    =============    =============  =============

</TABLE>

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

                               -9-

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

<TABLE>
<CAPTION>

                                                                         Nine months ended
                                                                   September 30,   September 30,
                                                                            2000            1999
                                                                   -------------   -------------
<S>                                                                <C>             <C>
Cash flows from operating activities:
   Net loss                                                        $ (1,664,701)   $ (1,729,158)
   Adjustments to reconcile net loss to net cash used
     in operating activities:
     Depreciation                                                        14,436          55,847
     Amortization                                                        60,357          31,757
     Interest on debenture paid in shares of common stock                90,000          90,000
     Decrease (increase) in:
       Accounts receivable                                             (113,801)        (13,205)
       Inventory                                                       (107,582)       (120,060)
       Prepaid expenses and other current assets                        (58,989)        (49,440)
     Increase (decrease) in:
       Accounts payable and accrued expenses                            724,870         305,587
                                                                   -------------   -------------
       Net cash used in operating activities                         (1,055,410)     (1,428,672)
                                                                   -------------   -------------
Cash flows from investing activities:
   Proceeds from disposal of equipment                                      ---             460
   Capital expenditures                                                  (5,358)        (28,407)
   Refund of security deposit                                               ---           5,725
   Repayment of principal of loan receivable                                ---          45,153
                                                                   -------------   -------------
       Net cash provided by (used in) investing activities               (5,358)         22,931
                                                                   -------------   -------------
Cash flows from financing activities:
   Proceeds from issuance of common stock                             1,150,000       1,000,000
   Issuance of promissory notes                                             ---          65,699
   Repayment of notes                                                       ---         (12,000)
                                                                   -------------   -------------
     Net cash provided by financing activities                        1,150,000       1,053,699

       Net increase (decrease) in cash
         and cash equivalents                                            89,232        (352,042)

       Cash and cash equivalents
         at beginning of period                                         216,297         364,796
                                                                   -------------   -------------
       Cash and cash equivalents
          at end of period                                         $    305,529    $     12,753
                                                                   =============   =============




</TABLE>

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

                              -10-

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

Noncash investing and financing activities:

During  the  nine months ended September 30, 2000 and  1999,  the
Company  recorded dividends in arrears on 8% redeemable preferred
stock   at  $.48  per  share  aggregating  $12,705  and  $14,204,
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, 2000  and  1999  the
Company  issued 40,000 shares of common stock in each  period  in
payment  of interest on the 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  May  2000, Igene agreed to the re-payment of $218,984  in
loans  receivable and accrued interest and the sale of  equipment
having  a  net  book value of $226,011 as part of a reduction  in
manufacturing  fees  under  a  new contract  with  the  Company's
contract  manufacturer of AstaXin(R). The book value of the  loan
receivable and equipment, totaling $455,995, has been recorded as
a  deferred cost which is being amortized as manufacturing occurs
over  the  six year term of this contract, which will expire  May
2006.

During  the  nine  months ended September 30,  2000,  holders  of
3,994,500  warrants  issued  in the March  1998  Rights  Offering
exercised those warrants using $5,200 of notes payable  to  Igene
and  utilizing 927,377 warrants in cashless exercises.  3,070,123
new shares were issued and $5,200 of notes payable were cancelled
in these transactions.

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.




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

                              -11-

            IGENE Biotechnology, Inc. and Subsidiary
           Notes to Consolidated Financial Statements


(1)  Basis of Presentation

     The   consolidated  interim  financial  statements  included
     herein  have  been prepared by the Company,  without  audit,
     pursuant to the rules and regulations of the Securities  and
     Exchange   Commission.  Certain  information  and   footnote
     disclosures   normally  included  in  financial   statements
     prepared  in  accordance with generally accepted  accounting
     principles  have  been omitted pursuant to  such  rules  and
     regulations,   although  the  Company  believes   that   the
     disclosures  are adequate to make the information  presented
     not misleading.

     These  statements  reflect  all adjustments,  consisting  of
     normal  recurring  adjustments  which,  in  the  opinion  of
     management,  are  necessary for  fair  presentation  of  the
     information contained therein.  It is suggested  that  these
     consolidated  financial statements be  read  in  conjunction
     with the financial statements and notes thereto included  in
     the  Company's  annual report on form 10-KSB  for  the  year
     ended  December  31,  1999.  The Company  follows  the  same
     accounting  policies  in  preparation  of  interim  reports,
     except  as  described  in   note  (2)  to  the  consolidated
     financial statements.

(2)  Summary of Significant Accounting Policies

     Principles of Consolidation

     During   June   2000  the  Company  formed  a   wholly-owned
     subsidiary   in   Chile.    These   consolidated   financial
     statements  include the accounts of the Company and  of  its
     wholly-owned   subsidiary.   All  significant   intercompany
     accounts   and   transactions  have   been   eliminated   in
     consolidation.

     Deferred Costs

     Deferred  costs  include  deferred  manufacturing  costs  of
     $416,395,  which  represents the value, reduced  by  current
     amortization, of a note receivable and accrued  interest  of
     $218,984  and manufacturing equipment with a net book  value
     of  $226,011.   These assets have been cancelled  and  sold,
     respectively,   in   consideration  for   a   reduction   in
     manufacturing  fees  over  the  six  year  term  of  a   new
     manufacturing contract which became effective in  May  2000.
     These deferred manufacturing costs are being amortized  over
     the  term  of  the contract, and such amortization,  in  the
     amount  of  $28,600 for the nine months ended September  30,
     2000, is included in Cost of Sales and Inventory.

     Foreign Currency Translation and Transactions

     Since  the  day-to-day operations of the  Company's  foreign
     subsidiary   in   Chile  are  dependent  on   the   economic
     environment of the parent's currency, the financial position
     and   results   of  operations  of  the  Company's   foreign
     subsidiary  are  determined using  the  Company's  reporting
     currency  (US  dollars) as the functional  currency.     All
     exchange  gains  and losses from remeasurement  of  monetary
     assets  and  liabilities  that are  not  denominated  in  US
     dollars are recognized currently in income.  These gains and
     losses  were  immaterial in amount during  the  nine  months
     ended September 30, 2000.

     Statements of Cash Flows

     The  Company  has  determined that  the  effect  of  foreign
     exchange rate changes on cash flows is not material.

                              -12-

            IGENE Biotechnology, Inc. and Subsidiary
           Notes to Consolidated Financial Statements
                           (continued)
(3)  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            $         ---
          Work-in-process                 15,800
          Finished goods                 792,327
                                   -------------
               Total inventory     $     808,127
                                   =============

(4)  Stockholders' Deficit

     At  September  30, 2000 and 1999, 52,934 and 59,184  shares,
     respectively, of authorized but unissued common  stock  were
     reserved   for  issue  upon  conversion  of  the   Company's
     outstanding preferred stock.

     As of September 30, 2000 and 1999, 19,910,166 and 21,410,166
     shares,  respectively,  of authorized  but  unissued  common
     stock  were reserved for exercise pursuant to the  Company's
     Employee Stock Option Plans.

     As  of  September  30,  2000 and 1999, 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, 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 $1,082,000 held by directors of the
     Company.

     As   of  September  30,  2000  and  1999,  131,759,345   and
     117,628,846 shares, respectively, of authorized but unissued
     common  stock were reserved for the exercise of  outstanding
     warrants.

     As  of  September 30, 2000, 20,000,000 shares of  authorized
     but  unissued  shares  of  common stock  were  reserved  for
     issuance in connection  with  the production  of  AstaXin(R)
     pursuant to an agreement with Igene's contract manufacturer.

     During the nine months ended September 30, 2000, the Company
     issued  to certain directors 10,000,000 new shares of common
     stock at $.10 per share, or $1,000,000 (the Company incurred
     no offering expenses).  The Company did not use the services
     of  any  agent or underwriter in distributing these  shares.
     The sale of shares was exempt from registration pursuant  to
     Section  4(2) of the Securities Act.  The Company relied  on
     information  provided  by  the  purchasers  of  the  shares,
     indicating  that  they were directors  of  the  Company,  in
     claiming exemption from the registration obligations of  the
     Securities  Act of 1933, as amended.  This stock was  issued
     pursuant to a commitment dated February 8, 2000 for a  total
     of  $1,000,000.  The market price on that date was $.10  per
     share.  In return for this commitment, these directors  also
     received,   on  February  8,  2000,  warrants  to   purchase
     10,000,000  shares  of  common stock  at  $0.10  per  share,
     expiring February 8, 2010.

     During the nine months ended September 30, 2000, the Company
     issued  1,500,000  new shares of common stock  at  $.10  per
     share,  or  $150,000, pursuant to the exercise  of  employee
     stock options.

                              -13-

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


(4)  Stockholders' Deficit (continued)

     During the nine months ended September 30, 2000, holders  of
     3,994,500 warrants issued in the March 1998 Rights  Offering
     exercised  those warrants using $5,200 of notes  payable  to
     Igene  and utilizing 927,377 warrants in cashless exercises.
     3,070,123 new shares were issued and $5,200 of notes payable
     were cancelled in these transactions.

     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 committed to purchase an additional 8,333,333
     new shares of common stock at $.06 per share, or $500,000 by
     July   31,  1999.   The  total  funding   received  in  this
     transaction  was $750,000, and a total of 12,500,000  shares
     were 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 January 25, 2009.

(5)  Net loss per common share

     Net  loss per common share for the three month periods ended
     September  30,  2000  and 1999 is based  on  59,170,838  and
     36,936,566, respectively, of weighted average common  shares
     outstanding.   Net loss per common share for the  nine-month
     periods  ended  September 30, 2000, and  1999  is  based  on
     53,958,670 and 30,846,897, 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 cumulative undeclared dividends in arrears  on
     preferred stock.

(6)  Commitments

     On   May  20,  2000  the  Company  signed  a  Memorandum  of
     Understanding whereby it renewed its manufacturing agreement
     with  our  contract  manufacturer  in  Mexico City,  Mexico.
     Production  began under this Memorandum  on  May  20,   2000
     while a detailed contract is being drafted.  The major terms
     of  the  agreement provide for the exclusive manufacture  of
     AstaXin(R) by Fermic during a six year term.  Fermic will be
     paid  a monthly fee based on manufacturing capacity provided
     and will also be issued shares of Igene's common stock based
     on  the  amount  of AstaXin(R) produced, up to a  maximum of
     20,000,000 shares over the term of the contract.

(7)  Contingencies

     Archer  Daniels Midland, Inc. ("ADM") has sued us,  alleging
     patent  infringement  and requesting injunctive  relief   as
     well  as  an unspecified amount of damages. We have filed  a
     $300,450,000  counterclaim concerning  the  theft  of  trade
     secrets.     The court denied ADM's request for  preliminary
     injunctive  relief.  Mediation efforts during 1999  did  not
     resolve  this dispute, which has been returned to the  court
     for  a  judicial disposition.   Presently,  a  stay  on  all
     discovery  remains in effect while a court-appointed  expert
     analyzes  the  yeast products of both parties.   We  believe
     that it is not probable that this dispute will result in  an
     unfavorable  outcome  to  Igene.   Nonetheless,  should  ADM
     prevail,  we could be liable for damages, and we could  also
     lose  the  right  to  use  a  particular  strain  of  yeast.
     However, we expect that this will not affect our ability  to
     make and sell our product, AstaXin(R).


                              -14-

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


(8)  Approval of Regulatory Agencies

     In  a notice published in the Federal Register July 6, 2000,
     the  FDA  announced  the  amendment of  its  color  additive
     regulations  to  provide for the safe use of phaffia  yeast,
     such  as  that in the  Company's product, AstaXin(R),  as a
     color additive in aquaculture  feeds.  This ruling, which is
     effective  August 8, 2000, allows the Company to market  its
     product, AstaXin(R), for aquaculture feeds and fish produced
     in  or  imported  into the United States.   This  ruling  is
     available to the public in the Federal Register.

     In  July 2000, the Company also obtained clearance from  the
     FDA to market  its product, AstaXin(R), as a  human  dietary
     supplement  in  the  United States.   Scientific  literature
     indicates  that  natural astaxanthin, such as  that  in  the
     Company's product, AstaXin(R), may offer health benefits for
     humans   due  to  its  antioxidant  properties.    The   FDA
     notification and the Company's submissions are available  to
     the public.

(9)  Subsequent Event

     During   November  2000,  the  Company  received  additional
     funding of $350,000.  The Company will issue 9% demand notes
     to the lenders, who are directors of the Company.


                              -15-

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

CAUTIONARY STATEMENT 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.

Overview

Igene  Biotechnology, Inc. (Igene) is engaged in the business  of
developing,  marketing, and manufacturing industrial microbiology
and  related  biotechnology products.  Igene's major  product  is
AstaXin(R),  a dried yeast product made from a proprietary strain
of yeast which it has developed.  AstaXin(R) is  a natural source
of astaxanthin, the pigment which imparts the characteristic  red
color  to the flesh of salmon, shrimp and certain other types  of
fish  and  shellfish.   In the ocean, these  fish  and  shellfish
obtain astaxanthin from krill and other planktonic crustaceans in
their diet.   However, without the addition of astaxanthin to the
feed  of farm raised fish and shellfish, their flesh would  be  a
pale,  off-white  color,  which is less appealing  to  consumers.
Based on estimates of worldwide production of farm raised salmon,
Igene  believes  that the worldwide market for astaxanthin  as  a
feed  additive  for  aquaculture exceeds  $200,000,000  annually.
Scientific  literature also indicates that  natural  astaxanthin,
such as that in AstaXin(R), may offer health benefits for  humans
due  to its antioxidant properties, which exceed those of vitamin
E,  vitamin C, beta-carotene and other carotenoids.  The  Company
is presently manufacturing, marketing and selling AstaXin(R) as a
color  additive for aquaculture feeds, and is also  preparing  to
market this product as a human nutritional supplement.

Results of Operations

On July 6, 2000, a U.S. FDA ruling, which was effective August 8,
2000, allowed Igene to market AstaXin(R) for fish feeds and  fish
produced  in or sent to the United States.  As a result  of  this
U.S.  FDA  ruling,  and  approvals  in  1999  from  the  Canadian
equivalent agency, Igene began to market AstaXin(R) in the United
States  and  Canada  in  July 2000.  In  July  2000,  Igene  also
obtained  clearance from  the  U.S.  FDA to sell  AstaXin(R) as a
human nutritional supplement in the United States.

Sales

Sales of AstaXin(R) for aquaculture feed were $129,575 during the
quarter  ended  September  30,  2000.   This  is  a  decrease  of
$51,056, or 28%, over sales for the quarter ended June 30,  2000.
Sales of AstaXin(R) for the nine months ended September 30,  2000
totaled  $388,742.   Based on actual sales for  October  2000  of
$134,000,  and projections of usage for current customers,  sales
for  the quarter ending December 31, 2000 are expected to  exceed
$400,000.   Some  sales which were expected to occur  during  the
quarter  ended  September 30, 2000 were delayed  due  to  weather
conditions and slower than expected fish growth. These sales  are
now expected to occur during the quarter ended December 31, 2000.
During the three months and nine months ended September 30, 1999,
Igene had no sales of AstaXin(R) while the Company conducted what
was  probably  the largest commercial fish feeding study  in  the
world, using AstaXin(R) in Chile in cooperation with more than  a
dozen  fish producers.   Results obtained from this study and  an
independent study conducted in Norway by Akvaforsk confirmed that
natural  AstaXin(R)  is  comparable,  if  not  superior  to,  our

                              -16-

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


Results of Operations (continued)

competitor's  synthetic  product  which  currently dominates  the
market.  The  Akvaforsk study  also  confirmed  the stability  of
AstaXin(R)  through the commercial  feed  production process  and
showed  the efficiency of Igene's proprietary  enzyme  technology
for making  98%  of  the  astaxanthin available for uptake by the
fish and more than  twice  as  effective  as   other competitors'
processes.    Igene  believes  that  sales   of  AstaXin(R)   for
aquaculture will continue to grow, due to  both  increased  sales
in  Chile and marketing in the United States and Canada. However,
there can be no assurance that such sales will occur or that they
will be material.

Now that U.S.FDA clearance has been obtained, Igene also plans to
market AstaXin(R) as a human nutritional supplement.   Scientific
literature  indicates  that  natural astaxanthin,  such  as  from
AstaXin(R),  may  offer certain health benefits for humans due to
its  antioxidant  properties,  which  exceed  those of vitamin E,
vitamin C, beta-carotene and other carotenoids.

Cost of Sales

Igene resumed commercial production of AstaXin(R) in May 2000 and
entered  into  a six year exclusive agreement with  its  contract
manufacturer  in Mexico City, Mexico.  Igene is  now  capable  of
tripling its production  capacity  for  AstaXin(R)  within  three
months,  and to nine fold within a year, as necessary.   Cost  of
sales for AstaXin(R) for the quarter ended September 30, 2000 and
1999 of $198,702 and $6,407 increased by $192,295.  Cost of sales
of  AstaXin(R)  for  the nine months ended September 30, 2000 and
1999  of  $471,359  and  $126,252 increased by $345,107, or 273%.
These  increases  resulted  from  increased sales of AstaXin(R)in
2000 offset  by  adjustments  to decrease AstaXin(R) inventory to
market  value  during  the  nine months ended September 30, 1999.
There have been no  additional decreases of  AstaXin(R) inventory
to  market value during the nine months ended September 30, 2000,
due  to  increases  in  production efficiency.   Igene expects to
achieve gross profits on  sales of AstaXin(R) in the near future,
as sales and production levels increase. However, there can be no
assurance that such gross profits will occur or that they will be
material.  Igene expects that cost of  sales for  AstaXin(R) will
continue  to  increase,  due  to  sales  increases,  and they are
expected  to  be  funded  by  product  sales.   Igene   plans  to
expand   production   capacity   as  needed  to  meet  increasing
demand  for AstaXin(R).  However, there  can be no assurance that
demand will,  in  fact, increase  or that such  increases will be
material.

Marketing and Selling Expenses

Igene  has engaged a full-time consultant to obtain approval  and
market  AstaXin(R) in  Europe  as a feed additive for aquaculture
and also to market AstaXin(R) worldwide as  a  human  nutritional
supplement.  Igene's  executive  employees  continue  to   travel
extensively    to   support    the   two   full-time    technical
representatives  at  its Chilean subsidiary's  office.  Marketing
expenses  for  AstaXin(R) are expected to continue to increase as
Igene   markets  AstaXin(R)  in  the  United  States and  Canada.
Marketing  and  selling  expenses  for  the  three  months  ended
September   30,  2000  and  1999  were  $197,586   and   $58,766,
respectively,  an increase of $138,820, or 236%.   Marketing  and
selling expenses for the nine months ended September 30, 2000 and
1999  were  $456,184 and $111,691, respectively, an  increase  of
$344,493,  or  308%.  Future additional  marketing  expenses  are
expected  to  be  funded  by  revenues  from  product  sales  and
additional capital contributions. However, such  sales or capital
contributions  may  not  actually  occur,  or  they  may  not  be
material.


                              -17-

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


Results of Operations (continued)

Research, Development and Pilot Plant Expenses

Research,  development  and pilot plant expenses  for  the  three
months  ended  September  30, 2000  and  1999  were  $89,629  and
$104,595,  respectively, a decrease of $14,966, or 14%. Research,
development  and pilot plant expenses for the nine  months  ended
September   30,  2000  and  1999  were  $267,205  and   $294,995,
respectively,  a decrease of $27,790, or 9%. These  expenses  are
expected  to  continue  at approximately  $30,000  per  month  in
support  of  increasing   the  efficiency   of   the   AstaXin(R)
manufacturing process through experimentation in the pilot  plant
and  through improving proprietary technology. These expenses are
expected   to   be   funded  by  sales  and  additional   capital
contributions.   However, there can be  no  assurance  that  such
sales or capital contributions will occur, or  that  they will be
material.

General and Administrative Expenses

General  and  administrative expenses for the three months  ended
September   30,  2000  and  1999  were  $127,194   and   $74,834,
respectively,  an  increase  of $52,360,  or  70%.   General  and
administrative expenses for the nine months ended  September  30,
2000  and  1999  were  $337,296 and  $248,554,  respectively,  an
increase  of $88,742, or 36%.  These increases resulted primarily
from  legal expenses relating to warrants registered during 2000.
General  and administrative expenses are expected to continue  at
approximately  $35,000   per month in  the  near  term,  and  are
expected   to   be   funded  by  sales  and  additional   capital
contributions. However, there can be no assurance that such sales
or  capital  contributions  will  occur,  or  that  they  will be
material.

Litigation Expenses

Litigation expenses for the three months ended September 30, 2000
and  1999 were $1,352 and $75,479, a decrease of $74,127, or 98%.
Litigation expenses for the nine months ended September 30,  2000
and  1999  were $13,248 and $433,973, a decrease of $420,725,  or
97%.   These  amounts  represent  the  expenses  associated  with
Igene's  defense of the suit by ADM alleging patent  infringement
pertaining  to  Igene's  astaxanthin  manufacturing  process  and
Igene's  counter-suit.   These expenses have  decreased  while  a
court  imposed stay on discovery remains in effect and  a  court-
appointed  expert  analyzes the yeast products of  both  parties.
These  expenses  are  expected  to  increase  when  and  if   the
litigation  moves to a courtroom phase.   Management  expects  to
recover   these   legal  expenses  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.
Igene's  expenditures for this litigation will continue based  on
management's continuing assessments of the potential costs versus
the   potential  benefits   of  its  litigation  efforts.   These
expenses  are  expected  to  be  funded  by  additional   capital
contributions  or loans  from directors if and to the extent such
funds are obtained.  At the present  time, a range  of reasonably
possible loss from the litigation cannot  be estimated.

Net Interest Expense

Net  interest  expense for the three months ended  September  30,
2000 and 1999 was $169,298 and $173,903, respectively, a decrease
of   $4,605,  or  3%.  Net interest expense for the  nine  months
ended  September  30,  2000 and 1999 was $512,301  and  $517,609,
respectively, a decrease of  $5,308 or 1%.   It is expected  that
net  interest  expense will decrease if  note  holders  will  use
outstanding  notes  to exercise outstanding  warrants  issued  to
them,  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
holders will in fact use their notes to exercise their warrants.



                              -18-

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

Results of Operations (continued)

Net Loss and Shares Outstanding

As  a result of the foregoing, the Company reported net losses of
$652,186 and $493,242, or $0.01 per share in each period for  the
three  months ended September 30, 2000, and 1999, and net  losses
of  $1,664,701  and  $1,729,158, or $0.03 and  $0.06  per  share,
respectively, for the nine months ended September  30,  2000  and
1999.

The weighted average number of shares of common stock outstanding
increased  to 53,958,670 for the nine months ended September  30,
2000  from  30,846,897 for the nine months  ended  September  30,
1999.   This  increase of 23,111,773 weighted average  shares  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 3,125 shares of preferred  stock  into  6,250
shares of common stock, the issuance of 1,500,000 shares pursuant
to  the  exercise  of  employee stock options,  the  issuance  of
3,070,123  shares pursuant to the exercise of warrants,  and  the
issuance  of  18,125,000 shares to directors and other  investors
for cash during the twelve month period ended September 30, 2000.

Financial Position

During  the  nine months ended September 30, 2000  and  1999, the
following materially affected the Company's financial position:

During   the  nine  months  ended  September  30,  2000, accounts
receivable increased to $131,932 due to current product sales.

During the nine months ended September 30, 2000, Igene agreed  to
the  re-payment  of  $218,984  in loans  receivable  and  accrued
interest  and  the sale of equipment having a net book  value  of
$226,011 as part of a reduction in manufacturing fees under a new
contract with the Company's contract manufacturer  of AstaXin(R).
The  book  value  of the loan receivable and equipment,  totaling
$455,995,  has  been recorded as a deferred cost which  is  being
amortized as manufacturing occurs over the six year term of  this
contract, which will expire May 2006.

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.   During  the
nine   months  ended  September  30,  2000, the  Company   issued
10,000,000 new shares to certain directors at $.10 per  share  or
$1,000,000.

During  the  nine  months ended September 30,  2000,  holders  of
3,994,500  warrants  issued  in the March  1998  Rights  Offering
exercised those warrants using $5,200 of notes payable  to  Igene
and  utilizing 927,377 warrants in cashless exercises.  3,070,123
new shares were issued and $5,200 of notes payable were cancelled
in these transactions.

During  the  nine  months ended September 30,  2000, the  Company
issued  1,500,000  new  shares of common stock  pursuant  to  the
exercise of employee stock options at $.10 per share or $150,000.

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, 2000 and 1999, total dividends  in
arrears  on  the  Company's  preferred  stock  was  $203,267  and
$213,062, respectively, which was included in the carrying  value
of the redeemable preferred stock.


                              -19-

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

Liquidity and Capital Resources

Historically,  the  Company has been funded primarily  by  equity
contributions  and loans from stockholders.  As of September  30,
2000  and  1999, the Company had working capital of $812,936  and
$1,201,991, respectively.  Working capital decreased by  $389,055
during  the  twelve month period ended September 30,  2000.   The
Company had cash and cash equivalents of $305,529 and $12,753  as
of  September 30, 2000 and 1999, respectively.  In order to  fund
future   operations,  the  Company  plans  to  obtain  additional
capitalization   from   directors  and  other   investors   until
profitable operations occur.

Cash  used  by operations in the nine months ended September  30,
2000   and   1999   amounted   to  $1,055,410   and   $1,428,672,
respectively.   This  decrease in  cash  used  in  operations  of
$373,262  resulted  from  a  temporary  halt  in  production   of
AstaXin(R) and increased  product  sales  and reduced  litigation
expenses during the nine months ended September 30, 2000.

Cash provided (used) by investing activities for the nine  months
ended  September  30,  2000  and  1999  amounted  to $(5,358) and
$22,931,  respectively.  The decrease of $28,289 in cash provided
by investing activities resulted primarily from a decrease in the
amount of principal repayments on loan receivable during the nine
months  ended  September 30, 2000.  This loan was repaid  in  May
2000   through   a  reduction  in  fees  in  the  Company's   new
manufacturing contract.

Cash  provided by financing activities for the nine months  ended
September   30,   2000  and  1999  amounted  to  $1,150,000   and
$1,053,699, respectively, an increase of $96,301.

                             -20-

            IGENE Biotechnology, Inc. and Subsidiary
                             PART II
                        OTHER INFORMATION


Item 1.  Legal Proceedings

Archer Daniels Midland, Inc. ("ADM") has sued us, alleging patent
infringement  and requesting injunctive relief   as  well  as  an
unspecified  amount  of  damages. We have  filed  a  $300,450,000
counterclaim concerning the theft of trade secrets.    The  court
denied   ADM's   request  for  preliminary   injunctive   relief.
Mediation efforts during 1999 did not resolve this dispute, which
has  been  returned  to  the court for  a  judicial  disposition.
Presently,  a  stay on all discovery remains in  effect  while  a
court-appointed  expert  analyzes  the  yeast  products  of  both
parties.   We  believe that it is not probable that this  dispute
will  result  in  an unfavorable outcome to Igene.   Nonetheless,
should ADM prevail, we could be liable for damages, and we  could
also  lose  the  right  to  use  a particular  strain  of  yeast.
However, we expect that this will not affect our ability to  make
and sell our product, AstaXin(R).

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.

During  the  nine  months ended September 30, 2000,  the  Company
issued to certain directors 10,000,000 new shares of common stock
at  $.10  per  share,  or  $1,000,000 (the  Company  incurred  no
offering expenses).  The Company did not use the services of  any
agent  or underwriter in distributing these shares.  The sale  of
shares  was exempt from registration pursuant to Section 4(2)  of
the  Securities Act.  The Company relied on information  provided
by  the  purchasers  of  the shares, indicating  that  they  were
directors  of  the  Company,  in  claiming  exemption  from   the
registration  obligations  of the  Securities  Act  of  1933,  as
amended.   This  stock was issued pursuant to a commitment  dated
February 8, 2000 for a total of $1,000,000.  The market price  on
that  date  was  $.10 per share.  In return for this  commitment,
these  directors also received, on February 8, 2000, warrants  to
purchase  10,000,000 shares of common stock at $0.10  per  share,
expiring in 10 years.

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

          27.  Financial Data Schedule

     (b)  Reports on Form 8-K - None



                              -21-

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

                              -22-