FORM 10QSB

	SECURITIES AND EXCHANGE COMMISSION

	Washington, D.C.  10549


(Mark One)


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

For the quarterly period ended   September 30, 1997      

  OR

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


For the transition period from             to            .



	Commission file number    0-15888   .

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


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


 9110 Red Branch Road, Columbia, Maryland     	      21045-2024         
(Address of principal executive officers)		     (Zip code)


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


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


Indicate by a check mark whether the Registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months (or for such shorter 
period that the Registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days.

YES    X            NO       

The number of shares outstanding of the Registrant's $.01 par value Common
Stock as of September 30, 1997 is 19,143,973.

FORM 10QSB

	IGENE Biotechnology, Inc.

	INDEX





 Page 

PART I - FINANCIAL INFORMATION


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

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

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

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

Notes to Financial Statements ..................................	   10

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


PART II - OTHER INFORMATION ..........................................	   16


SIGNATURES ...........................................................	   17

<PAGE>

	IGENE BIOTECHNOLOGY, INC.

	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

	OF THE SECURITIES EXCHANGE ACT OF 1934

	PART I - FINANCIAL INFORMATION


<PAGE>
<TABLE>
IGENE Biotechnology, Inc.
Balance Sheets
<CAPTIONS>
                                   September 30,   September 30,    December 31,
                                      1997            1996            1996      
                                    (Unaudited)     (Unaudited)
<S>                            <C>           <C>           <C>
ASSETS

Current assets:
  Cash and cash equivalents 			$      304,581	$     35,975  $       41,339
  Accounts receivable 	     			        14,494       47,509           9,996
  Due from stockholders(note 6)  		 	  97,094          ---          16,870
  Equipment held for resale				       512,848	     	   ---	          	 ---
  Supplies						                          ---	     	 7,009           6,126
  Deferred costs						                 92,731	         ---	          	 ---
  Prepaid expenses 				                   947          953           4,652
       Total current assets 			     1,022,695       91,446          78,983
Property and equipment, net 			        53,045       25,353          19,471
Security deposits					                 10,600       10,600          10,600 
                     							   $    1,086,340 $    127,399  $      109,054 

LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable and 
  other accrued expenses 	   		       462,668      268,486         300,799
  Debenture interest payable 				      90,000       60,000          45,000 
  Promissory Notes payable 			      2,332,500      558,770         717,000 
       Total current liabilities    2,885,168      887,256       1,062,799
Long term liabilities:
  Variable rate subordinated debenture  1,500,000   1,500,000    1,500,000 
             Total liabilities 	    4,385,168    2,387,256       2,562,799 
Redeemable preferred stock -- 8% cumulative, 
	convertible, voting, Series A, 
	$.01 par value per share; 
	redemption value $13.76,     
     	$13.12 and $13.28 per share.  
	Authorized 920,000 shares; 
 	issued 35,842 shares			             493,186      470,247         475,982 
Stockholders' deficit:
  Preferred stock -- $.01 par value per share. 
	8% cumulative, convertible, voting, 
	Series A.  Authorized and issued 
	187,500 shares (aggregate involuntary 
	liquidation value of $2,580,000, 
	2,460,000, and 2,490,000)		           1,875         1,875           1,875
  Common stock -- $.01 par value per share. 
	Authorized 35,000,000 shares; issued 
	19,143,973, 18,604,472, and 
	18,631,139 shares 			             	 191,440       186,045         186,311
  Additional paid-in capital 	    18,062,529    17,917,221      17,971,220 
  Deficit 			              			   (22,047,859)  (20,835,245)    (21,089,133)
  Total stockholders' deficit     (3,792,015)   (2,730,104)     (2,929,727)

                              $    1,086,339  $    127,399  $      109,054 

The accompanying notes are an integral part of the financial statemen
</TABLE>
<TABLE>
IGENE Biotechnology, Inc.
Statements of Operations
(Unaudited)
<CAPTIONS>
                                                                                
                                             	--- Three months ended ---     
                                             September 30,     September 30,   
                                                 1997              1996       
<S>                                         <C>              <C>
Sales 		                              						$       ---       $      9,241   
  Cost of sales 							                             ---              3,927  
                                        										  ---              5,314 

Technology services income             					        ---                ---  

Net revenue 							                                 ---              5,314  
  
Selling, general and administrative expenses:
     Marketing and selling 		            			       2,681             1,323  
     Research, development and pilot plant		      77,637            84,123  
     General and administrative 		        		      94,305            93,082  
		
     Total selling, general and 
	Administrative expenses				               	     174,623           178,528  

Operating loss		                       					    (174,623)         (173,214)

Other income (expenses):
     Litigation expenses                 			    (280,000)          	   ---
     Investment income 	                    						   ---               105  
     Other income (expense)				                      ---               ---  
     Interest expense 				                		     (86,996)          (43,621)

Net loss 			                           					    (541,619)         (216,730) 

Deficit at beginning of period 	         			 (21,506,240)      (20,618,515) 

Deficit at end of period 	              				$(22,047,859)     $(20,835,245) 

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


The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
IGENE Biotechnology, Inc.
Statements of Stockholder's Deficit
(Unaudited)
<CAPTIONS>
                             Redeemable            
 		                       Preferred Stock  	Preferred Stock    Common Stock
                         (Shares/Amount)   	(Shares/Amount)    Shares/Amount
<S>                      <C>               <C>             <C>
Balance at 
    December 31, 1995    38,342/$484,643  	187,500/$1,875  18,572,805/$185,728

Issuance of 26,667 shares
  Of common stock in lieu of
  Cash payment for interest
  On subordinated debenture	         ---           	  ---          26,667/$267

Cumulative undeclared dividends 
	on redeemable
  preferred stock                 17,204              ---                  ---

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

Net Loss for nine months ended
	September 30, 1996                  ---  	           --- 	                --- 
 
Balance at 
    September 30, 1996   35,842/$470,247   187,500/$1,875  18,604,472/$186,045

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

Issuance of 40,000 shares
  Of common stock in lieu of
  Cash payment for interest
  On subordinated debenture	         ---           	  ---          40,000/$400

Issuance of common stock through
  Exercise of employee 
  Stock options                      ---              ---       472,834/$4,729

Cumulative undeclared dividends
  On redeemable preferred stock	  17,204             	---                 	--- 

Net Loss for nine months ended
	  September 30, 1997               	---             	---                  ---

Balance at 
  September 30, 1997     35,842/$493,186   187,500/$1,875  19,143,973/$191,440

</TABLE>

<TABLE>

IGENE Biotechnology, Inc.
Statements of Stockholder's Deficit
(Unaudited- Continued)
<CAPTIONS>

                                                        					Total         
	                           Additional                       Stockholder's
                            Paid-In Capital    Deficit     	 Deficit 

<S>                          <C>             <C>               <C>
Balance at 
  December 31, 1995          $17,843,142 	   $ (20,312,260)     $(2,281,515)

Issuance of 26,667 shares
  Of common stock in lieu of
  Cash payment for interest
  On subordinated debenture	      59,733              	---          	60,000  

Cumulative undeclared 
dividends on redeemable
  preferred stock                (17,204)	             ---          (17,204)

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

Net Loss for nine months ended
	September 30, 1996                  ---          (522,985)	       (522,985)

Balance at June 30, 1996     $17,922,955    	 $(20,618,514)	    $(2,507,638)

Balance at December 31, 1996 $17,971,220      $(21,089,133)     $(2,929,727)

Issuance of 40,000 shares
  Of common stock in lieu of
  Cash payment for interest
  On subordinated debenture	      89,600              	---          	90,000  

Issuance of common stock 
through exercise of 
employee stock options            18,913               ---           23,842

Cumulative undeclared
dividends on redeemable
  preferred stock	               (17,204)             	---         	(17,204) 

Net Loss for nine months ended
  	September 30, 1997                ---          (958,726)      		(958,726)  

Balance at 	
  September 30, 1997         $18,062,529      $(22,047,859)     $(3,792,015)


The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
IGENE Biotechnology, Inc.
Statements of Cash Flows
(Unaudited)
<CAPTIONS>
                                         ---Nine months ended---
                                      		September 30, September 30,
                                       		    1997          1996    
<S>                                     <C>           <C>
Cash flows from operating activities:
  Net loss 	                           	$(  958,726)  $(  522,985)
  Adjustments to reconcile 
  net income to net cash
  provided by operating activities:
     Depreciation                     		      5,502         4,167
     Interest on debenture
        paid in shares of common stock		     90,000        60,000         
        Decrease (increase) in: 
           Accounts receivable 	       	     (4,498)      (36,380)
           Prepaid expenses, supplies
           and deposits	                	     9,831        (7,962)
        Increase (decrease) in:
           Accounts payable and other
           Accrued expenses                 206,869        27,359  
  Net cash used in 
    operating activities              		   (651,022)    (475,801)
Cash flows from investing activities:
  Capital expenditures		                    (39,075)       	 ---
  Purchase of equipment held for resale  		(512,848)       	 ---
  Deferred costs                      		    (92,731)         --- 
  Net cash used in investing activities    (644,654)         --- 
Cash flows from financing activities:
  Issuance of promissory notes	       	   1,615,500      458,770
  Proceeds from issuance of common stock     23,642          ---
  Decrease (increase) in amounts
     Due from stockholders		                (80,224)      44,680  
  Net cash provided by
  financing activities               		   1,558,918      503,450  
Net increase in cash and
  cash equivalents                   		     263,242       27,649 
Cash and cash equivalents 
  at beginning of period             		      41,339        8,326  
Cash and cash equivalents at 
  end of period 	                     	$    304,581   $   35,975  
Supplementary disclosure of cash
  flow information:
     Cash paid during the year
     for interest	                    	$        ---   $    	 ---
     Cash paid during the year
     For income taxes		                         ---          ---  




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


Noncash investing and financing activities:

During 1997 and 1996 the Company issued 40,000 and 26,667 shares, 
respectively, 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% and 8% during 1997 and 1996, of $90,000 and $60,000, 
respectively, in each period. Shares may be issued in lieu of cash under 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 in 1997 and 1996 at 
$2.25 per share, or $90,000 and $60,000, respectively, in each period.

During 1997 and 1996 the Company recorded dividends in arrears on 8% 
redeemable preferred stock at $0.48 per share aggregating $17,204 in each 
period which has been removed from paid-in capital and included in the 
carrying value of the redeemable preferred stock.

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

</TABLE>

IGENE Biotechnology, Inc.
	NOTES TO FINANCIAL STATEMENTS
	(Unaudited)


(1)	Unaudited Financial Statements

The financial statements presented herein as of September 30, 1997 and 1996 
and for the three month and nine month periods ended September 30, 1997 and 
1996 are unaudited and, in the opinion of management, include all 
adjustments (consisting only of normal recurring accruals) necessary for 
a fair presentation of financial position and results of operations.  Such 
financial statements do not include all of the information and footnote 
disclosures normally included in audited financial statements prepared in 
accordance with generally accepted accounting principles.

(2)	Inventories

None.

(3)	Stockholders' Equity

At September 30, 1997 and 1996, 71,684 shares of authorized but unissued 
common stock were reserved for issuance upon conversion of the Company's 
outstanding preferred stock.

As of September 30, 1997 and 1996, 2,000,000 shares of authorized but 
unissued common stock were reserved for exercise pursuant to the 1986 Stock 
Option Plan.

As of September 30, 1997 and 1996, 800,000 shares of authorized but 
unissued common stock were reserved for issuance upon reinvestment of 
interest on the variable rate subordinated debenture and 375,000 shares of 
authorized but unissued common stock were reserved for issuance upon 
conversion of the variable rate subordinated debenture.

As of September 30, 1997 and 1996, 51,141,548 and 24,588,248 shares, 
respectively, of common stock were reserved for the conversion of 
promissory notes and the issue of warrants attached to those notes. The 
promissory notes are held by Directors of the Company and one individual 
investor.


(4)	Net Loss Per Common Share

Net loss per common share for the quarters ended September 30, 1997 and 
1996 is based on 18,976,637 and 18,604,472 weighted average shares, 
respectively.  For purposes of computing net loss per common share, the 
amount of net loss has been increased by cumulative undeclared dividends 
in arrears on preferred stock.










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


Results of Operations

Sales revenue for the quarter ended September 30, 1996 of $9,241, resulted from
sales of ClandoSanr.  The Company has made only minimal marketing efforts for 
this product in 1997 as it focused on development, production and marketing of 
its AstaXinr product. Additional sales of ClandoSanr will depend on continued 
marketing arrangements with distributors for the product and the Company's own 
limited direct sales. Long term, the Company hopes to license rights to 
manufacture, sell, and distribute ClandoSanr. The Company expects to continue 
to focus its efforts on AstaXinr and has signed, on June 24, 1997, a toll 
manufacturing agreement for the production of AstaXinr which is to begin no 
later than December 31, 1997.
 
Research, development and pilot plant expenses decreased by 7.7% for the 
current quarter when compared to the corresponding quarter in 1996.  This 
decrease was due to a one time field study for ClandoSanr in 1996.

Marketing expenses increased by 102.6% for the current quarter when compared 
to the corresponding quarter in 1996 and are related primarily to the 
Company's marketing expenses for AstaXinr and would be expected to increase if
production and sales increase, and will depend on marketing arrangements with 
distributors of the product.  This expense would be offset by revenue from sales
of product.

General and administrative expenses increased by approximately 1.3% for the 
third quarter of 1997 over the same period in 1996.  This reflects continuing 
attempts to minimize administrative expenses during this period.

Interest expense for the quarter ended September 30, 1997 increased by 
approximately 99.4% over the same period in the prior year and reflects 
additional debt issued in the form of promissory notes to certain directors of 
the Company and one individual investor.

Litigation expenses of $280,000 for the quarter ended September 30, 1997 
represent legal fees incurred in the Company's suit against Archer Daniels-
Midland Inc. ("ADM") alleging theft of trade secrets and breach of contract 
and in its defense of ADM's suit against the Company alleging patent 
infringement. 

Management expects to recover legal expenses through damage awards and/or 
preservation of rights associated with the Company's product.

As a result of the foregoing, the Company reported a net loss of $541,619, or 
$.03 per common share during the third quarter of 1997, compared to a net loss 
of $216,730, or $.01 per common share in the same period in 1996.  The weighted 
average number of common shares outstanding increased to 18,976,637, in the 
third quarter of 1997 compared to 18,604,472 in the third quarter of 1996. 
This increase in shares reflects the semi-annual issuance of common stock as 
payment of interest on a variable note subordinated debenture and the issue of 
472,834 shares for exercise of employee stock options.





	MANAGEMENT'S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)


Financial Position

In December 1988, the Company suspended payment of the quarterly dividend on 
its preferred stock.  Resumption of the dividend will require significant 
improvements in cash flow.  Unpaid dividends cumulate for future payment or 
increase the liquidation preference or redemption value of the preferred stock. 
As of September 30, 1997, total dividends in arrears on the Company's preferred 
stock was $1,286,450, of which $206,450 ($5.76 per share) was included in the 
carrying value of the redeemable preferred stock and $1,080,000 ($5.76 per 
share) is included in the liquidation preference of the limited redemption 
preferred stock.


Liquidity and Capital Resources

Historically, the Company has been funded primarily by equity contributions, 
loans from stockholders and license fees.  As of September 30, 1997, the 
Company had a working capital deficit of approximately $1,862,473, and cash and
cash equivalents of $304,581, consisting of proceeds from Promissory Notes 
issued to certain Directors and an individual investor of the Company described
below.

Cash used by operations in the nine months ended September 30, 1997 and 1996 
amounted to $651,022 and $475,801, respectively.  To date, the Company has 
achieved only minimal sales of its ClandoSanr and AstaXinr products while it 
seeks additional manufacturing capability for AstaXinr.

$644,654 was used by investing activities for the nine months ended September 
30, 1997. This includes an investment of $512,848 in equipment to be resold 
and deferred costs of $92,731 relating to an agreement to manufacture 
AstaXinr as described below, and $39,075 in equipment required at Igene's 
facilities to perform test runs for production of AstaXinr.

The following is a summary of the Company's financing activities for 1996 and 
the nine months ended September 30, 1997:

On February 9, 1996 and March 11, 1996, the Company issued demand promissory 
notes to certain directors of the Company for an aggregate consideration of 
$140,000. These notes specify that at any time prior to repayment the holder 
has the right to convert the note to common stock of the Company at $.10 per 
share (the then current market price) per share for the note issued February 9,
1996 and at $.09 (the then current market price) per share for the note issued 
March 11, 1996.  In connection with such issuance, the holders received 
warrants for an equivalent number of shares of common stock exercisable at 
$.10 per share for the note issued February 9, 1996 and exercisable at $.09 per
share for the note issued March 11, 1996.  

On April 23, May 9, and June 7, 1996, the Company issued demand promissory 
notes to certain directors of the Company for an aggregate consideration of 
$177,000. These notes specify that at any time prior to repayment the holder 
has the right to convert the note to common stock of the Company at $.06 (the 
then current market price) per share for the notes issued April 23, 1996 and 
May 9, 1996, and $.05 (the then current market price) per share for the note 
issued June 7, 1996. In connection with such issuance, the holders received 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)

warrants for an equivalent number of shares of common stock exercisable at 
$.06 per share for the notes issued April 23, 1996 and May 9, 1996, and 
exercisable at $.05 for the note issued June 7, 1996. 

On July 24, and September 24, 1996, the Company issued demand promissory notes 
to certain directors of the Company for an aggregate consideration of $160,000. 
These notes specify that at any time prior to repayment the holder has the 
right to convert the note to common stock of the Company at $.115 (the then 
current market price) per share for the note issued July 24, 1996, and $.125 
(the then current market price) per share for the note issued September 24, 
1996.  In connection with such issuances, the holders received warrants for an
equivalent number of shares of common stock exercisable at $.115 per share for 
the note issued July 24, 1996, and exercisable at $.125 per share for the note 
issued September 24, 1996. 

On November 13, and December 11, 1996, the Company issued demand promissory 
notes to certain directors of the Company for an aggregate consideration of 
$140,000. These notes specify that at any time prior to repayment the holder 
has the right to convert the notes to common stock of the Company at $.09 (the 
then current market price) per share.  In connection with such issuance, the 
holders received warrants for an equivalent number of common stock exercisable 
at $.09 per share. 

On January 14, 1997, and February 24, 1997, the Company issued promissory notes 
to certain directors of the Company for an aggregate consideration of $170,000. 
These notes specify that at any time prior to repayment the holder has the 
right to convert the note to common stock of the Company at $.07 (the then 
current market price) per share for the note issued January 14, 1997, and $.11 
(the then current market price) per share for the note issued February 24, 1997.
In connection with such issuance, the holders received warrants for an 
equivalent number of shares of common shares exercisable at $.07 per share for 
the note issued January 14, 1997, and exercisable at $.11 per share for the 
note issued February 24, 1997. 

On April 3 and 4, 1997, the Company issued demand promissory notes to certain 
directors of the Company for an aggregate consideration of $99,500.  These 
notes specify that at any time prior to repayment the holder has the right to 
convert the notes to common stock of the Company at $.10 (the then current 
market price) per share.  In connection with such issuance, the holders 
received warrants for an equivalent number of shares of common stock 
exercisable at $.10  per share. 
 
On May 8 and 9, 1997, the Company issued demand promissory notes to certain 
directors of the Company for an aggregate consideration of $136,000.  These 
notes specify that at any time prior to repayment the holder has the right to 
convert the notes to common stock of the Company at $.135 (the then current 
market price) per share.  In connection with such issuance, the holders 
received warrants for an equivalent number of shares of common stock exercisable
at $.135 per share. 

On June 5, 1997, the Company issued demand promissory notes to certain 
directors of the Company, as well as one individual investor, for an aggregate 
consideration of $250,000.  These notes specify that at any time prior to 
repayment the holder has the right to convert the notes to common stock of the 
Company at $.10 (the then current market price) per share.  In connection with 
such issuance, the holders received warrants for an equivalent number of shares 
of common stock exercisable at $.10  per share. 

	MANAGEMENT'S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)


On June 24, 1997, Igene signed a non-exclusive toll manufacturing agreement 
with Fermic, S.A. de C.V. of Mexico (Fermic) for the production of AstaXinr, 
its natural astaxanthin pigment.  The agreement provides that Fermic will 
manufacture, store, package and ship AstaXinr for Igene using Fermic's 
facilities and production capacity.  Igene agrees to provide raw materials, 
patented processes and other proprietary knowledge.  In consideration of a 
twenty-three month, 10% note to Igene, Fermic agrees to purchase manufacturing 
equipment, to be obtained and installed by Igene, at cost, for up to $500,000. 
Igene will retain a security interest in the equipment sold to Fermic.  Igene 
plans to finance this agreement with shareholder loans.  Igene has expended 
$512,848 for manufacturing equipment to be sold to Fermic as of September 30, 
1997.  Igene has also expended $92,731 for raw materials and other costs to 
complete pilot plant test runs as of September 30, 1997, which has been 
included as deferred costs on the Company's September 30, 1997 Balance Sheet. 
Igene will pay Fermic a toll-manufacturing fee to be based on production 
capacity.  Large-scale production was to begin no later than October, 1997, 
but this deadline has been extended to Decmeber 31, 1997.  Igene plans to 
market and distribute AstaXinr to meet an expected demand for the product.  
This agreement terminates on December 31, 1997 and may be extended, at Igene's 
option, to December 31, 1998.

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

On July 3, 1997, the Company cancelled demand promissory notes issued on 
May 9, 1997 as prepayment on a series of demand promissory notes to certain 
directors of the Company for an aggregate consideration of $40,000.  These 
notes were replaced by demand notes issued July 3, 1997 to certain directors of 
the Company, as well as one individual investor, for an aggregate consideration 
of $250,000. These notes specify that at any time prior to repayment the holder 
has the right to convert the notes to common stock of the Company at $.10 (the
then current market price) per share.  In connection with such issuance, the 
holders received warrants for an equivalent number of shares of common stock
exercsiable at $.10 per share.  

On July 16, 1997, Mr. Dexter Gaston, a former CEO of the Company exercised 
100,000 of employee stock options at the exercise price of $.05 per share 
($5,000).  On August 6, 1997, Mr. Dexter Gaston exercised an additional 372,834
options at $.05 per share ($18,642).

On July 29, 1997, the Company issued demand promissory notes to certain 
directors of the Company, as well as one individual investor, for an aggregate 
consideration of $250,000.  These notes specify that at any time prior to 
repayment the holder has the right to convert the notes to common stock of the 
Company at $.10 (the the current market price) per share.  In connection with 
such issuance, the holders received warrants for an equivalent number of shares 
of common stock exercisable at $.10  per share.

	MANAGEMENT'S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)


On September 4, and September 24, 1997, the Company issued demand promissory 
notes to certain directors of the Company, as well as one individual investor, 
for an aggregate consideration of $500,000.  These notes specify that at any 
time prior to repayment the holder has the right to convert the notes to common 
stock of the Company at $.10 (the then current marekt price) per share.  In 
connection with such issuance, the holders received warrants for an equivalent 
number of shares of common stock exercisable at $.10  per share. 

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

	FORM 10QSB

	IGENE Biotechnology, Inc.
	PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

A Civil Suit was filed by the Company on August 4, 1997 in the U.S. District 
Court in Baltimore, Maryland against Archer Daniels Midland, Inc. alleging 
theft of trade secrets and breach of contract.  The suit seeks damages of 
$300,450,000.

A Civil Suit was filed by Archer Daniels Midland, Inc. on July 21, 1997, 1997 
in the U.S. District Court in Greenbelt, Maryland against the Company alleging 
patent infringement.  The suit seeks an injunction against Igene to cease its 
activities relating to the alleged infringement.  Management believes that 
this suit has no merit.

Item 2.  Changes in Securities

None

Item 3.  Defaults Upon Senior Securities

None

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

None

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

(a)	Exhibits

None

(b)	Reports on Form 8-K

None
           
Item 7.  Subsequent Events

In October of 1997 the deadline for the beginning of large-scale production 
under the toll-manufacturing agreement with Fermic was extended to December 31, 
1997.

On October 20, 1997, the Company issued demand promissory notes to certain 
directors of the Company, as well as one individual investor, for an aggregate 
consideration of $250,000.  These notes specify that at any time prior to 
repayment the holder has the right to convert the notes to common stock of the 
Company at $.10 (the then current market price) per share.  In connection with 
such issuance, the holders received warrants for an equivalent number of common 
stock exercisable at $.10  per share. 

On November 3, 1997, Mr. Patrick F. Monahan, a Director of the Company 
exercised 10,000 of employee stock options at the exercise price of $.05 per 
share ($500.00).  

FORM 10QSB

	SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned, thereunto duly authorized.



     IGENE Biotechnology, Inc.       
       (Registrant)


Date:  November 14, 1997     
  /s/  Stephen F. Hiu                
 Stephen F. Hiu  
 President, Treasurer and 
 Secretary
(On behalf of the Registrant and as
 Principal Financial Officer)