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 June 30, 2001
            ____________________________________________

[ ]  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:
62,464,915 shares as of July 25, 2001.
______________________________________

Transitional Small Business Disclosure Format (check one):

Yes                  No    x
     ___                  ___

<PAGE>

                             FORM 10-QSB
                      IGENE Biotechnology, Inc.


                                INDEX


PART I - FINANCIAL INFORMATION
                                                                    Page

     Consolidated Balance Sheets .................................  5-6

     Consolidated Statements of Operations .......................  7

     Consolidated Statements of Stockholders' Deficit.............  8-9

     Consolidated Statements of Cash Flows .......................  10

     Notes to Consolidated Financial Statements ..................  11-13

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

PART II - OTHER INFORMATION ......................................  18-19

SIGNATURES .......................................................  20

<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>

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

                                                    June 30,    December 31,
                                                       2001            2000
                                                ____________    ____________
                                                 (Unaudited)
<S>                                             <C>             <C>
ASSETS
CURRENT ASSETS

   Cash and cash equivalents                    $   266,744     $   143,572
   Accounts receivable, net                         783,275         316,663
   Inventory                                      1,012,242         762,432
   Prepaid expenses and other current assets        266,380         186,002
   Deferred costs, current portion                   74,160          74,160
                                                ____________    ____________

                                                  2,402,801       1,482,829


OTHER ASSETS
   Property and equipment, net                      158,530         104,150
   Deferred costs, net of current portion           362,524         420,781
   Other assets                                       6,015           5,861
                                                ____________    ____________

      TOTAL ASSETS                              $ 2,929,870     $ 2,013,621
                                                ============    ============

</TABLE>













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

                               -5-

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


<CAPTION>
                                                    June 30,    December 31,
                                                       2001            2000
                                                ____________    ____________
                                                 (Unaudited)
<S>                                             <C>             <C>
LIABILITIES, REDEEMABLE PREFERED STOCK
  AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
   Accounts payable and accrued expenses        $   935,333     $   304,432
   Notes payable                                        ---         600,000
                                                ____________    ____________

        TOTAL CURRENT LIABILITIES                   935,333         904,432
                                                ____________    ____________

LONG-TERM DEBT
   Notes payable                                  7,724,171       6,077,300
   Variable rate subordinated debenture           1,500,000       1,500,000
   Lease payable                                      5,104             ---
   Accrued interest                               1,616,233       1,337,063
                                                ____________    ____________

        TOTAL LIABILITIES                        11,780,841       9,818,795
                                                ____________    ____________

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 $16.16
     and $15.84, respectively.  Authorized
     1,312,500 shares, issued 26,405 shares         426,705         418,255

STOCKHOLDERS' DEFICIT
   Common stock, $.01 par value per share.
     Authorized, 750,000,000 and
     250,000,000 shares, respectively;
     issued and outstanding 62,464,915,
     and 62,249,005 shares,
     respectively.                                  624,649         622,490
   Additional paid-in capital                    21,508,377      21,411,645
   Deficit                                      (31,410,702)    (30,257,564)
                                                ____________    ____________

        TOTAL STOCKHOLDERS' DEFICIT              (9,277,676)     (8,223,429)
                                                ____________    ____________

        TOTAL LIABILITIES AND
          STOCKHOLDERS' DEFICIT                 $ 2,929,870     $ 2,013,621
                                                ============    ============
</TABLE>








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

                               -6-
<TABLE>

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



<CAPTION>



                                                 Three months ended              Six months ended
                                             ___________________________   ___________________________
                                                 June 30,       June 30,       June 30,       June 30,
                                                    2001           2000	          2001           2000
                                             ____________   ____________   ____________   ____________
<S>                                          <C>            <C>            <C>            <C>
Sales                                        $ 1,096,525    $   180,631    $ 1,541,543    $   259,167
Cost of sales                                    914,442        185,224      1,326,561        272,657
                                             ____________   ____________   ____________   ____________

   Gross profit (loss)                           182,083         (4,593)       214,982        (13,490)
                                             ____________   ____________   ____________   ____________

Selling, general & administrative expenses:
   Marketing and selling                         320,905        179,457        465,084        258,598
   Research, development and pilot plant         118,277         84,967        225,612        177,576
   General and administrative                    133,179        125,233        255,577        210,102
   Litigation expenses                               ---            850            ---         11,896
                                             ____________   ____________   ____________   ____________

        Total operating expenses                 572,361        390,507        946,273        658,172
                                             ____________   ____________   ____________   ____________

        Operating loss                          (390,278)      (395,100)      (731,291)      (671,662)
                                             ____________   ____________   ____________   ____________

Other income (expense)
   Interest expense, net of
     interest income of $5,839, $3,544,
     $6,708 and $3,646, respectively	      (240,099)      (169,217)      (427,847)      (343,003)
   Other income                                    3,000          2,150          6,000          2,150
                                             ____________   ____________   ____________   ____________

        Net loss                             $  (627,377)   $  (562,167)   $(1,153,138)   $(1,012,515)
                                             ============   ============   ============   ============
        Basic and diluted
        net loss per common share            $     (0.01)   $     (0.01)   $     (0.02)   $     (0.02)
                                             ============   ============   ============   ============


</TABLE>


















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

                               -7-

<TABLE>

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

<CAPTION>
                                               Redeemable Preferred Stock
                                                    (shares/amount)
                                               __________________________
<S>                                            <C>            <C>

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

Cumulative undeclared dividends
  on redeemable preferred stock                       ---          8,470

Exercise of employee stock options                    ---            ---

Exercise of warrants                                  ---            ---

Net loss for the six months ended
  June 30, 2000                                       ---            ---
                                               ___________    ___________

Balance at June 30, 2000                           26,467     $  410,768
                                               ===========    ===========

Balance at December 31, 2000                       26,405     $  418,255

Cumulative undeclared dividends
  on redeemable preferred stock                       ---          8,450

Exercise of employee stock options                    ---            ---

Exercise of warrants                                  ---            ---

Net loss for the six months ended
  June 30, 2001                                       ---            ---
                                               ___________    ___________

Balance at June 30, 2001                           26,405     $  426,705
                                               ===========    ===========
</TABLE>








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

                               -8-

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

<CAPTION>

                                                                   Additional                      Total
                                              Common Stock           Paid-in                   Stockholders'
                                             (shares/amount)         Capital       Deficit        Deficit
                                          ______________________  ____________  _____________  _____________
<S>                                       <C>          <C>        <C>           <C>            <C>
Balance at December 31, 1999              47,598,758   $475,988   $20,238,904   $(28,002,249)  $ (7,287,357)

Cumulative undeclared dividends
  on redeemable preferred stock                  ---        ---        (8,470)           ---         (8,470)

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                     4,000,000     40,000       360,000            ---        400,000

Net loss for the six months ended
  June 30, 2000                                  ---        ---           ---     (1,012,515)    (1,012,515)
                                          ___________  _________  ____________  _____________  _____________

Balance at June 30, 2000                  56,208,881   $562,089 	$20,789,533   $(29,014,764)  $ (7,663,142)
                                          ===========  =========  ============  =============  =============

Balance at December 31, 2000              62,249,005   $622,490   $21,411,645   $(30,257,564)  $ (8,223,429)

Cumulative undeclared dividends
  on redeemable preferred stock                  ---        ---        (8,450)           ---	     (8,450)

Exercise of employee stock options             5,000         50           200            ---            250

Exercise of warrants                         170,910      1,709        15,382            ---         17,091

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

Net loss for the six months ended
  June 30, 2001                                  ---        ---           ---     (1,153,138)    (1,153,138)
                                          ___________  _________  ____________  _____________  _____________

Balance at June 30, 2001                  62,464,915   $624,649   $21,508,377   $(31,410,702)  $ (9,277,676)
                                          ===========  =========  ============  =============  =============


</TABLE>









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

                               -9-
<TABLE>

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

     <CAPTION>
                                                                       Six months ended
                                                                     June 30,       June 30,
                                                                        2001           2000
                                                                 ____________   ____________
<S>                                                              <C>            <C>
Cash flows from operating activities:
   Net loss                                                      $(1,153,138)   $(1,012,515)
   Adjustments to reconcile net loss to net cash used
     by operating activities:
     Depreciation                                                     11,164          9,624
     Amortization                                                     58,257         29,186
     Interest on debenture paid in shares of common stock             90,000         90,000
     Decrease (increase) in:
       Accounts receivable                                          (466,612)      (353,031)
       Inventory                                                    (249,810)        79,073
       Prepaid expenses and other current assets                     (80,531)       (52,186)
     Increase (decrease) in:
       Accounts payable and accrued expenses                         924,283        544,627
                                                                 ____________   ____________

          Net cash used in operating activities                     (866,387)      (665,222)
                                                                 ____________   ____________

Cash flows from investing activities:
   Capital expenditures                                              (52,545)          (976)
                                                                 ____________   ____________

          Net cash used in investing activities                      (52,545)          (976)
                                                                 ____________   ____________

Cash flows from financing activities:
   Proceeds from borrowing                                         1,050,000            ---
   Payment of long-term debt                                          (7,896)           ---
   Proceeds from issuance of common stock	                               ---        550,000
                                                                 ____________   ____________

          Net cash provided by financing activities                1,042,104        550,000
                                                                 ____________   ____________

          Net increase (decrease) in cash
           and cash equivalents                                      123,172       (116,198)

          Cash and cash equivalents
           at beginning of period                                    143,572        216,297
                                                                 ____________   ____________

          Cash and cash equivalents
           at end of period                                      $   266,744    $   100,099
                                                                 ============   ============

Supplementary disclosure and cash flow information:
   Cash paid for:
     Interest                                                    $       235    $       -0-
     Income taxes                                                        -0-            -0-

</TABLE>





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

                              -10-

            IGENE Biotechnology, Inc. and Subsidiary
                  Notes to Financial Statements


(1)  Unaudited consolidated financial statements

     The  consolidated financial statements presented herein  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   financial
     statements prepared in accordance with accounting principles
     generally  accepted  in the United States.   This  quarterly
     report  on  Form  10-QSB should be read in conjunction  with
     Igene's  Annual  Report on Form 10-KSB for  the  year  ended
     December 31, 2000.

(2)  Noncash investing and financing activities

     During  the  six months ended June 30, 2001  and  2000,  the
     Company  recorded  dividends in  arrears  on  8%  redeemable
     preferred  stock  at $.32 per share aggregating  $8,450  and
     $8,470,  respectively, which has been removed  from  paid-in
     capital and included in the carrying value of the redeemable
     preferred stock.

     During  the  six  months ended June 30,  2001,  the  Company
     capitalized leased equipment by recording a lease obligation
     payable of $13,000 under a capital lease.

     During  the  six  months ended June 30,  2001,  the  Company
     satisfied  its  obligations under demand  notes  payable  of
     1,000,000 and related accrued interest of $14,211 by issuing
     new  8%  convertible  debentures in the aggregate  principal
     amount of $1,014,211.

     During  the  six  months ended June 30, 2001  and  2000  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  the  six  months ended June  30,  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.

     During  the six months ended June 30, 2000, Igene agreed  to
     the  re-payment of $206,780 in loans receivable 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
     $432,791,  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.

 (3) Foreign Currency Translation and Transactions

     Since   the   day-to-day  operations  of   Igene's   foreign
     subsidiary   in   Chile  are  dependent  on   the   economic
     environment of the parent's currency, the financial position
     and  results of operations of Igene's foreign subsidiary are
     determined using Igene'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.    The   aggregate   transaction  loss  included  in
     determining  net income for the six months  ended  June  30,
     2001  is  $75,338.   These losses occurred  primarily  as  a
     result  of  the  effect of substantial de-valuation  of  the
     Chilean Peso during the months of April through June 2001 on
     Igene's  accounts receivables, which are mostly  denominated
     in  Chilean Pesos as of June 30, 2001 and for the six months
     then  ended.  The effect of exchange rate changes  occurring
     subsequent to June 30, 2001 is immaterial.


                              -11-

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

(4)  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:

<TABLE>
<CAPTION>
                                     June 30,       December 31,
                                        2001               2000
                                 ____________       ____________
<S>                              <C>                <C>
      Raw materials              $       ---        $       ---
      Work-in-process                 33,201              4,080
      Finished goods                 979,041            758,352
                                 ____________       ____________

          Total inventory        $ 1,012,242        $   762,432
                                 ============       ============

</TABLE>

(5)  Stockholders' Equity (Deficit)

     At  June  30,  2001  and  2000, 52,810  and  52,934  shares,
     respectively, of authorized but unissued common  stock  were
     reserved   for  issue  upon  conversion  of  the   Company's
     outstanding preferred stock.

     As  of  June  30,  2001 and 2000, 74,905,166 and  19,910,166
     shares of authorized but unissued common stock were reserved
     for exercise pursuant to the Company's Employee Stock Option
     Plans.

     As  of  June 30, 2001 and 2000, 120,000 and 200,000  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  June  30,  2001  and  2000,  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  June  30, 2001, 20,802,650 shares of authorized  but
     unissued  common stock were reserved for the  conversion  of
     outstanding  convertible debentures in the aggregate  amount
     of  $1,664,212  held  by  directors  of  the  Company.   The
     convertible  debentures were issued pursuant to  commitments
     dated  March 1 and March 27, 2001 for a total of $2,514,212.
     The  market  price on those dates was $.08  per  share.   In
     return for these commitments, these directors also received,
     on  March  1  and  March  27,  2001,  warrants  to  purchase
     31,427,650  shares  of  common  stock  at  $.08  per  share,
     expiring in 10 years.

     As  of  June  30, 2001 and 2000, 168,686,995 and 131,759,345
     shares,  respectively,  of authorized  but  unissued  common
     stock   were   reserved  for  the  exercise  of  outstanding
     warrants.

     As  of  June  30, 2001, 20,000,000 shares of authorized  but
     unissued  common  stock were reserved for  issuance  to  the
     Company's contract manufacturer pursuant to the terms of the
     current manufacturing contract.

     As  of  June  30,  2001 and 2000, 10,625,000  and  6,000,000
     shares,  respectively,  of authorized  but  unissued  common
     stock  were  reserved for issuance upon receipt of  $850,000
     and  $600,000  in  funding for operations  pursuant  to  the
     commitment  of  March  27,  2001  of  $1,500,000   and   the
     commitment of February 8, 2000 by certain directors  of  the
     Company.





                              -12-

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

(5)  Stockholders' Equity (Deficit) - continued

     During  the  six  months ended June 30,  2000,  the  Company
     issued  to certain directors 4,000,000 new shares of  common
     stock  at $.10 per share, or $400,000.  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
     of   1933,  as  amended,  and  Rule  506  of  Regulation   D
     promulgated  under the Securities Act of 1933,  as  amended.
     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.

     During  the  six months ended June 30, 2001  and  2000,  the
     Company  issued  5,000  and 1,500,00, respectively,  of  new
     shares  of common stock at $.05 and $.10 per share, or  $250
     and  $150,000,  respectively, pursuant to  the  exercise  of
     employee stock options.

(6)  Basic and diluted net loss per common share

     Basic  and  diluted net loss per common share  for  the  six
     month  periods  ended June 30, 2001 and  2000  is  based  on
     62,376,519 and 53,899,650, 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.  No adjustment has been made for any common
     stock equivalents outstanding because their effects would be
     antidilutive.

(7)  Contingency - Litigation

     Archer   Daniels  Midland,  Inc.  ("ADM")  has  sued  Igene,
     alleging   patent  infringement  and  requesting  injunctive
     relief  as  well as an unspecified amount of  damages  (suit
     filed  July  21, 1997, U.S. District Court, Baltimore,  MD).
     Igene  has filed a $300,450,000 counterclaim concerning  the
     theft of trade secrets (counter claim filed August 4, 1997).
     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.  Igene believes that  it  is  not
     probable  that  this dispute will result in  an  unfavorable
     outcome  to  Igene.   Accordingly,  no  liability  has  been
     reflected  in  the June 30, 2001 balance sheet. Nonetheless,
     should  ADM prevail, Igene could be liable for damages,  and
     Igene  could also lose the right to use a particular  strain
     of  yeast.  However, Igene expects that this will not affect
     Igene's  ability  to  make and sell its product, AstaXin(R).
     The Company had expenses of $-0- and $850, respectively,  in
     the six months ended June 30, 2001 and 2000 relating to this
     on-going litigation.

(8)  Subsequent Events

     On  July  31, 2001, the Company issued to certain  directors
     $450,000 in aggregate principal amount of its 8% convertible
     debentures.  These 8% convertible debentures are convertable
     into 5,625,000 new shares of common stock at $.08 per share.
     The  8%  convertible debentures were issued  pursuant  to  a
     commitment  dated March 27, 2001 for a total of  $1,500,000.
     The  market price on that date was $.08 per share.    As  of
     July  31,  2001, an additional $400,000 remains unfunded  on
     the March 27, 2001 $1,500,000 commitment.








                              -13-

            IGENE Biotechnology, Inc. and Subsidiary
             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, FLUCTUATIONS IN CURRENCY EXCHANGE
RATES, 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) for the quarter ended June 30,  2001  and
2000,  were $1,096,525 and $180,631, respectively an increase  of
$915,894  or 507%.  Sales for the six months ended June 30,  2001
and  2000 were $1,541,543 and $259,167, an increase of $1,282,376
or 494%.   Sales for subsequent quarters are expected to continue
to increase throughout the remainder of 2001, but will be limited
by  presently available production capacity.  However, there  can
be no assurance that these, or any increases in sales will occur,
or  that they will be material.  In June 2001, the Company signed
an  agreement  with  a leading feed producer for  aquaculture  in
Chile  to  sell  $2  million  of  AstaXin(R) over the next twelve
months.

    To  better  illustrate  recent trends  in  sales  growth  for
AstaXin(R), the following table shows Sales for each of the  past
six quarters:

<TABLE>
<CAPTION>
     Period						  Sales
     ________________________________	___________
     <S>                                  <C>
     Quarter ended June 30, 2001           1,096,525
     Quarter ended March 31, 2001            445,018
     Quarter ended December 31, 2000         313,791
     Quarter ended September 30, 2000        129,575
     Quarter ended June 30, 2000             180,631
     Quarter ended March 31, 2000          $  78,536

</TABLE>

Cost of sales and gross profit (loss)
     Gross Profit on  sales of AstaXin(R) was  $182,083  for  the
quarter  ended  June 30, 2001.  This is an increase  of  $186,676
over  the  loss of $(4,593) for the same quarter in the preceding
year.   Gross  Profit on sales of AstaXin(R) was $214,982 for the
six  months ended June 30, 2001, which is an increase of $228,472
over  the  loss  of  $(13,490) for the six months ended June  30,
2000.  Gross profits were 16% of sales for the quarter ended June
30, 2001, and the Company expects  that the level of gross profit
as   a   percentage   of   sales   will  increase  as  production
efficiency  increases,   but  can provide no assurances  in  that
regard.  The Company plans to continue to increase production  of
AstaXin(R),  as  needed,  to  meet  expected  increased  sales of
AstaXin(R).  Presently available  unused  production  capacity at
the  Company's   contract  manufacturer   is   expected   to   be
sufficient to meet projected increases in demand through December
2001, but there can  be  no assurances  that production  capacity
will be sufficient.   Demand is  increasing  both due to seasonal
increases in customer  usage and increases  in  our market share.
Beyond December  2001,  if  demand  for  AstaXin(R)  continues to
increase, as the Company expects that  it  will,  sales and gross
profits may be  limited  by  the  quantities  of  AstaXin(R)  the
Company is able to produce  with its presently available capacity
with  its  contract  manufacturer.   To  avoid  this  limitation,
the Company   is   presently   investigating   other   additional

                              -14-
            IGENE Biotechnology, Inc. and Subsidiary
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations
                           (continued)


Cost of sales and gross profit (loss) - continued
sources of available production capacity.  However, there can  be
no   assurance  that  the  Company  will  be  able  to  find  and
subsequently  be  able  to utilize other  additional  sources  of
production capacity as quickly as they are needed, and sales  and
gross  profit growth may be limited beyond 2001, unless augmented
by  increases  in  production efficiency resulting  from  process
research and development.  Presently available capacity with  the
Company's current contract manufacturer is expected to allow  for
an  approximate increase of 125% over capacity being used  as  of
June 30, 2001.

    The  preceding  resulted in cost of  sales  for  the  quarter
ended   June  30,  2001  and  2000  of   $914,442  and  $185,224,
respectively, an increase of  $729,218 or  393%.  Cost  of  sales
for  the  six months ended June 30, 2001 and 2000 was  $1,326,561
and $272,657, respectively, an increase of $1,053,904 or 386%.

Marketing and selling expenses
     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   its   worldwide  marketing  agent, ProBio
Nutraceuticals.   These  additional  expenses  are expected to be
funded  by gross profits  from  product sales, however, there can
be no  assurance  that  these sales will occur, that they will be
material or that gross profits will result. Marketing and selling
expenses  for the  quarter  ended June 30, 2001 were $320,905, an
increase  of  $141,448,  or  78%  over the marketing and  selling
expenses  of  $179,457  for  the  quarter   ended  June 30, 2000.
Marketing   and  selling  expenses  for the six months ended June
30,  2001 were $465,084, an increase of $206,486, or 79% over the
marketing  and  selling  expenses of $258,598 for the six  months
ended  June  30, 2000.

Research, development and pilot plant expenses
     Research, development and pilot plant expenses are  expected
to  continue at approximately $40,000 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
quarters  ended  June  30,  2001 and 2000,  these  expenses  were
$118,277  and  $84,967, respectively, an increase of  $33,310  or
39%.  For  the  six months ended June 30, 2001  and  2000,  these
expenses were $225,612 and $177,576, respectively, an increase of
$48,036 or 27%.  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 quarters  ended
June  30, 2001 and 2000 were $133,179 and $125,233, respectively,
an  increase of $7,946 or 6%. General and administrative expenses
for the six months ended June 30, 2001 and 2000 were $255,577 and
$210,102,  respectively,  an increase of  $45,475  or  21%.  This
increase  resulted from increases in cost of insurance  coverage,
increased  legal  fees  and  administrative  travel  due  to  the
expansion  of  the Company.  General and administrative  expenses
are  expected  to  continue in the near future  at  approximately
$40,000  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,  through  damage
awards,  some portion of litigation expenses previously incurred,
in  connection with the suit filed against the Company by ADM and
the   Company's  counterclaim,  and  expects  to   preserve   its
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.  There have been  no
litigation  expenses during the six months ended June  30,  2001.
Litigation  expenses for the quarter ended June 30 of  2000   and
the  six  months  ended  June 30, 2000  were  $850  and  $11,896,
respectively.  Expenses associated with this on-going  litigation
decreased,  as compared to 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 may be


                              -15-
            IGENE Biotechnology, Inc. and Subsidiary
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations
                           (continued)


Litigation expenses - continued
incurred in the 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, and accordingly, no liability has been
reflected in the June 30, 2001 financial statements.

Interest expense (net of interest income)
    Interest  expense (net of interest income)  for  the  quarter
ended   June  30,  2001  and  2000  was  $240,099  and  $169,217,
respectively,  an  increase of $70,882 or 42%.  Interest  expense
(net  of interest income) for the six months ended June 30,  2001
and 2000 was $427,847 and $343,003, respectively, an increase  of
$84,844  or 25%.   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 and convertible debentures
and has increased due to increased financing from directors.

Net loss and basic and diluted net loss per common share
    As  a  result  of  the  foregoing, the Company  reported  net
losses  of $627,377 and $562,167, respectively, for the  quarters
ended  June  30, 2001 and 2000, an increased loss of  $65,210  or
12%.   The   Company  reported  net  losses  of  $1,153,138   and
$1,012,515, respectively, for the six months ended June 30,  2001
and  2000,  an  increased  loss  of  $140,623,  or   14%.    This
represents a loss of $.01 per basic and diluted common  share  in
each  of the quarters ended June 30, 2001 and 2000, and $.02  per
basic  and  diluted common share in each of the six months  ended
June 30, 2001 and 2000.  The weighted average number of shares of
common   stock   outstanding   of  62,464,475   and   53,899,650,
respectively, for the quarters ended June 30, 2001 and 2000  have
increased  by 8,564,825 shares.  This resulted from the  issuance
of  80,000  shares in lieu of interest payment on a  subordinated
debenture,  the conversion of 62 shares of preferred  stock  into
124  shares  of  common stock, the issue of 6,000,000  shares  of
stock  to directors and other investors in direct purchases,  the
issuance of 5,000 shares of common stock pursuant to the exercise
of  employee stock options, and the issuance of 170,910 shares of
common stock pursuant to the exercise of warrants.

Financial Position
__________________

During the six months ended June 30, 2001 and 2000, the following
actions   also   materially  affected  the  Company's   financial
position:

o During  the  six  months  ended June 30, 2001 and 2000 accounts
  receivable increased by approximately $466,000 due to increased
  sales of AstaXin(R).

o During   the   six   months  ended  June   30,  2001  inventory
  increased  by approximately $250,000 due to expected  continued
  increases in sales of AstaXin(R).

     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 June 30, 2001, total dividends in arrears  on  the
Company's  preferred stock total $215,465 ($8.16 per  share)  and
are  included  in the carrying value of the redeemable  preferred
stock.








                              -16-
            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 June  30,
2001  the Company had working capital of approximately $1,467,468
and cash and cash equivalents of $266,744.

    Cash  used  by  operating activities during  the  six  months
ended  June 30, 2001 and 2000 amounted to $866,387 and  $665,222,
respectively, an increase of $201,165.

    Cash  used by investing activities increased by $51,569, from
$976  for the six months ended June 30, 2000 to $52,545 for   the
six month ended June 30, 2001.  This was as a result of increased
capital expenditures.

    Cash  provided by financing activities increased by  $492,104
from  $550,000  for  the  six  months  ended  June  30,  2000  to
$1,042,104  for  the  six months ended June 30,  2001.  Financing
activities  consisted principally of $1,050,000 in proceeds  from
the  issuance  of 8% convertible debentures to certain  directors
during the six months ended June 30, 2001.

    Over  the  next twelve months, the Company believes  it  will
need additional working capital to fund expected expansion.   The
Company  hopes  to  achieve  this  from  profits  from  sales  of
AstaXin(R)  and  additional  stockholder  funding  through direct
purchases  of   stock  and  issuance  of convertible  securities.
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  does  not  believe that  inflation  has  had  a
significant impact on its operations during the six months  ended
June 30, 2001 and 2000.

    The  Company  has  significant  sales  operations  in  Chile.
During the six months ended June 30, 2001, the Company has losses
due   to  change  in  currency  exchange  rates  on  its  Chilean
operations  of approximately $75,000.  These losses may  continue
to  occur and will fluctuate depending on the economic conditions
in Chile and worldwide.























                              -17-
                    IGENE Biotechnology, Inc.
                             PART II
                        OTHER INFORMATION

Item 1.  Legal Proceedings

     Archer   Daniels  Midland,  Inc.  ("ADM")  has  sued  Igene,
     alleging   patent  infringement  and  requesting  injunctive
     relief  as  well as an unspecified amount of  damages  (suit
     filed  July  21, 1997, U.S. District Court, Baltimore,  MD).
     Igene  has filed a $300,450,000 counterclaim concerning  the
     theft of trade secrets (counter claim filed August 4, 1997).
     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.  Igene believes that  it  is  not
     probable  that  this dispute will result in  an  unfavorable
     outcome  to  Igene.   Accordingly,  no  liability  has  been
     reflected  in  the June 30, 2001 balance sheet. Nonetheless,
     should  ADM prevail, Igene could be liable for damages,  and
     Igene  could also lose the right to use a particular  strain
     of  yeast.  However, Igene expects that this will not affect
     Igene's  ability  to  make and sell its product, AstaXin(R).
     The  Company  had expenses of $0 and $850, respectively,  in
     the three  months  ended  June 30, 2001  and  2000   and  $0
     and  $11,896, respectively for the six months ended June 30,
     2001 and 2000 relating to this on-going litigation.

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
     ________________________________

          Igene  sold $1,014,211 of its 8% convertible  debenture
          to  certain  directors of Igene  in  exchange  for  the
          cancellation  of  $1,014,211 of  demand  notes  payable
          (including  accrued  interest of $14,211)  pursuant  to
          written  subscription agreements dated March  1,  2001.
          These  8%  debentures are convertible  into  shares  of
          Igene's   common   stock  at  $.08  per   share.    The
          subscription  agreements also required Igene  to  issue
          warrants  to purchase up to an aggregate of  12,677,650
          shares of common stock exercisable at $.08 per share in
          exchange   for   their  commitment  to   purchase   the
          convertible debentures.  On March 1, 2001 Igene  issued
          these  12,677,650 warrants.  These debentures,  if  not
          earlier converted, become due on February 28, 2011.

          On  March  27, 2001, Igene issued and sold $400,000  in
          aggregate   principal  amount  of  its  8%  convertible
          debentures  to  certain directors of  Igene,  and  also
          agreed   to  sell  to  these  directors  an  additional
          $1,100,000  in  aggregate principal amount  of  its  8%
          convertible debentures on or prior to December 31, 2001
          pursuant to written subscription agreements dated March
          27,   2001.   Of  the   additional  $1,100,000  in   8%
          convertible  debentures committed to  be  purchased  on
          March   27,  2001,  Igene  issued  $250,000  of   these
          convertible debentures on June 6, 2001 and $450,000  on
          July  31,  2001.   These 8% convertible debentures  are
          convertible into shares of Igene's common stock at $.08
          per  share.   In  consideration of  the  commitment  to
          purchase the 8% convertible debentures, these directors
          also  received an aggregate of 18,750,000  warrants  to
          purchase  common stock on March 27, 2001  at  $.08  per
          share.  These  debentures, if  not  earlier  converted,
          become due on March 26, 2011.

          The   above  sales  of  securities  were  exempt   from
          registration pursuant to Section 4(2) of the Securities
          Act  of 1933, as amended, and Rule 506 of Regulation  D
          promulgated  under  the  Securities  Act  of  1933,  as
          amended.  The Company relied on information provided by
          the purchasers of the securities, who are directors  of
          the   Company,   in   claiming   exemption   from   the
          registration obligation of the Securities Act of  1933,
          as amended.


                              -18-

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

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 $211,240 ($8.00 per share) and are included  in
     the carrying value of the redeemable preferred stock.

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

     At the annual meeting of stockholders held on June 12, 2001,
     the  following matters were submitted to stockholders'  vote
     and  were approved by the requisite number of votes: (1) the
     election  of all seven directors of the Company:  Joseph  C.
     Abeles,  John  A.  Cenerazzo,  Stephen  F.  Hiu,  Thomas  L.
     Kempner, Michael G. Kimelman, Sidney R. Knafel, and  Patrick
     F.  Monahan;  (2)  the  authorization  and  approval  of  an
     amendment  to the Articles of Incorporation of  the  Company
     increasing  the number of authorized shares of common  stock
     from   250,000,000   to   750,000,000   shares;   (3)    the
     authorization  and  approval of  the  Company's  2001  Stock
     Incentive  Plan; and (4) ratification of the appointment  of
     Stegman & Company as the Company's independent auditors  for
     the fiscal year ending December 31, 2001.

     Results of the voting were as follows:

<TABLE>
<CAPTION>

                                                             Votes                      Broker
                                               Votes         Against or    Votes        Non-
                                               For           Withheld      Abstained    Votes
                                               __________    __________    _________    __________
     <S>                                       <C>           <C>           <C>          <C>
     (1)  Election of Directors
            Joseph C. Abeles                   55,417,268    219,650       ---          ---
            John A. Cenerazzo                  55,417,268    219,650       ---          ---
            Stephen F. Hiu                     55,417,268    219,650       ---          ---
            Thomas L. Kempner                  55,417,268    219,650       ---          ---
            Michael G. Kimelman                55,417,268    219,650       ---          ---
            Sidney R. Knafel                   55,417,268    219,650       ---          ---
            Patrick F. Monahan                 55,417,268    219,650       ---          ---

     (2)  Increase in authorized shares        55,116,194    498,024        22,700      ---
     (3)  Authorize 2001 Stock Incentive Plan  42,531,023	 283,874	   163,909	    12,658,612
     (4)  Ratification of Auditors             55,394,368    171,200        71,350      ---

</TABLE>


Item 5.  Other Information

     None

Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

          None

     (b)  Reports on Form 8-K

          Two  Form  8-K's were filed during the second  quarter.
          On May 4th, 2001 the Company filed an 8-K disclosing  a
          change   in   the  registrant's  certifying  accountant
          pursuant  to Item 4 of Form 8-K.  On June 12, 2001  the
          Company filed another 8-K disclosing the signing  of  a
          $2  million dollar sales agreement with Ewos Chile S.A.
          pursuant   to  Item  5  of  Form  8-K.   No   financial
          statements or proforma financials were filed.
                              -19-
                           SIGNATURES


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



                                IGENE Biotechnology, Inc.
                                __________________________________
                                (Registrant)




     Date  August 13, 2001    By /s/Stephen F. Hiu
                                 _________________________________
                                 Stephen F. Hiu
                                 President and Treasurer
                                 (On  behalf of the Registrant
                                 and as Principal
                                 Financial Officer)







































                              -20-