UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.  20549

                                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, 1998

  [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934
                           For the transition period from       to      

                                Commission file number:    0-25726

                            SEPRAGEN CORPORATION
  (Exact name of small business issuer as specified in its charter)

       California                                   68-0073366
  (State or other jurisdiction of              (I.R.S. Employer
  incorporation or organization)               Identification No.)

              30689 Huntwood Avenue, Hayward, California  94544
                  (Address of principal executive offices)

  (Issuer's telephone number (including area code):  (510) 476-0650)

  (Former name, former address and former fiscal year if changed since
  last report:

  Check whether the issuer (1) has 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 issuer 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 registrant's
  classes of Common equity, as of the latest practicable date:
                                                         November 13,1998
                                Class A Common Stock          2,155,254
                                Class B Common Stock            701,177
                                Class E Common Stock          1,209,894

  THIS REPORT INCLUDES A TOTAL OF 60 PAGES. THE INDEX TO EXHIBITS IS ON
  PAGE 14.
<PAGE>
  PART I  -  FINANCIAL INFORMATION
  Item  1.  -  Financial Statements

                            SEPRAGEN CORPORATION
                           CONDENSED BALANCE SHEET
                                   ASSETS
                                                     September 
                                                      30, 1998 
      Current Assets:
           Cash and cash equivalents.              $   206,197 
           Accounts receivable, less allowance
             for doubtful accounts of $12,000 as
             of  September 30, 1998                    180,799 
           Inventories                                 231,355 
           Prepaid expenses and other.                  39,509 
             Total current assets.                     657,860 
           Furniture and equipment, net                198,157 
           Intangible assets                           101,432 
                                                       957,449 

               LIABILITIES AND DEFICIT IN SHAREHOLDERS' EQUITY

      Current Liabilities:
           Accounts payable                            827,895 
           Bridge Loans, net                           522,800 
           Customer deposits                            75,800 
           Notes Payable, including $280,000 from
             shareholders                              380,000 
           Accrued payroll and benefits                122,283 
           Accrued liabilities                          66,487 
           Interest payable                             38,327 
             Total current liabilities               2,033,592 
      Commitments
         Class E common stock, no par value
           - 1,600,000 shares authorized;
           1,209,894 shares issued and
           outstanding at September 30,
           1998, redeemable at $.01 per share                0 
      Deficit in Shareholders' equity:
          Preferred stock, no par value -
            5,000,000 shares authorized; and
            175,439 convertible, preferred
            issued and outstanding                     500,000 
          Class A common stock, no par value
            -20,000,000 shares authorized;
            2,155,254 shares issued and
            outstanding                              8,848,075 
          Class B common stock, no par value -
            2,600,000 shares authorized; 701,177
            shares issued and outstanding            4,065,618 
           Additional paid in capital                  202,220 
           Accumulated deficit                     (14,692,056)
           Total deficit in shareholders' equity    (1,076,143)
                                                       957,449 

  The accompanying notes are an integral part of these condensed financial
  statements.

                                   Page 2

<PAGE>
                            SEPRAGEN CORPORATION

                     CONDENSED STATEMENTS OF OPERATIONS

                                     Three Months              Nine Months
                               Ended September 30       Ended September 30
                                 1998       1997        1998         1997 
   Revenues:
     Net Sales               $356,395   $188,264    1,200,199     731,977 
   Costs and expenses:
     Cost of goods sold       139,564    112,317      649,391     412,274 
   Selling, general and  
     administrative           352,014    311,791      957,530   1,115,059 
   Research and development   172,759    157,881      577,283     669,821 
   Total costs and expenses   664,337    581,989    2,184,204   2,197,154 
                                                 
   Loss from operations      (307,942)  (393,725)   (984,005)  (1,465,177)

   Other income                     --    32,804           --      72,804 
   Interest income,
     (expense) net            (68,669)        25    (177,951)       1,018 

   Net loss                  (376,611)  (360,896) (1,161,956)  (1,391,355)

   Net loss per common
     share,  basic and                                                    
     diluted                    $(.13)     $(.13)      $(.41)       $(.49)
   Weighted average shares   
     outstanding            2,856,431  2,856,431   2,856,431    2,856,431



  The accompanying notes are an integral part of these condensed financial
  statements.


                                   Page 3
<PAGE>
                            SEPRAGEN CORPORATION
                     CONDENSED STATEMENTS OF CASH FLOWS

                                        Nine Months Ended September 30,
                                                    1998           1997 
    Cash flows from operating
    activities:                                                         
         Net Loss                            $(1,161,956)   $(1,391,355)
         Adjustments to reconcile net
           loss to net cash used in
           operating activities:
           Depreciation and
             Amortization                        177,057        102,036 
           Changes in assets and
             liabilities:
              Accounts receivable.               390,069         54,679 
              Inventories                         87,505         23,789 
              Prepaid expenses and
                other                            (22,975)         2,131 
              Accounts payable                   191,641        453,835 
              Accrued liabilities.               (26,233)       (25,704)
              Accrued payroll and                (22,856)         6,180 
                benefits.
              Interest payable                   (16,522)             0 
              Customer deposits                 (234,681)       285,709 
    Net cash used in operating
      activities                                (638,951)      (488,700)
    Cash flows from financing  
      activities:
        Proceeds from issuance of
          preferred stock                        500,000              0 
        Proceeds from notes  payable
          to shareholders                        155,000        125,000 
        Proceeds from issuance of
          notes payable                                0        100,000 
        Net proceeds from bridge
          notes payable                          115,700        207,000 
        Proceeds from issuance of
          convertible secured
          promissory Note, net                   540,000              0 
        Retirement of bridge debt               (510,000)             0 
    Net cash provided by financing                                      
       activities                                800,700        432,000 
    Net increase (decrease) in cash              161,749        (56,700)
    Cash and cash equivalents at the
      beginning of the period                     44,448        217,057 
    Cash and cash equivalents at the
      end of the period.                      $  206,197     $  160,357 

  The accompanying notes are an integral part of these condensed financial
  statements.

                                   Page 4
<PAGE>
                            SEPRAGEN CORPORATION

                   NOTES TO CONDENSED FINANCIAL STATEMENTS
                 NINE MONTH PERIOD ENDED SEPTEMBER 30, 1998

  Note 1 - Basis of Presentation

       These condensed financial statements have been presented on a going
  concern basis.  Sepragen, (the "Company") has incurred recurring losses
  and cash flow deficiencies from operations that raise substantial doubt
  about its ability to continue as a going concern.  As of September 30,
  1998, the Company had an accumulated deficit of $14,692,056.

       The Company will be required to conduct significant research,
  development and testing activities which, together with expenses to be
  incurred for manufacturing, the establishment of a large marketing and
  distribution presence and other general and administrative expenses, are
  expected to result in operating losses for the foreseeable future. 
  Accordingly, there can be no assurance that the Company will ever
  achieve profitable operations.  The Company will have to obtain
  additional financing to support its operating needs beyond December
  31,1998.  The Company is currently pursuing alternative funding sources
  to meet its cash flow needs, including private debt and equity
  financing.  Management intends to use such funding to further its
  marketing efforts and expand sales.  It is uncertain, however, whether
  the Company will be  successful in such pursuits.  No adjustments have
  been made to the accompanying condensed financial statements for this
  uncertainty.

  Note 2 - Interim Financial Reporting

       The accompanying unaudited interim financial statements have been
  prepared pursuant to the rules and regulations for reporting on Form 10-
  QSB.  Accordingly, certain information and footnotes required by
  generally accepted accounting principles have been condensed or omitted. 
  These interim statements should be read in conjunction with the
  financial statements and the notes thereto, included in the Company's
  Annual Report on Form 10-KSB for the year ended December 31, 1997.

  Note 3 - Net Loss Per Share.

       The Company has adopted Statement of Financial Accounting Standards
  (SFAS) No. 128, Earning per Share for all periods presented.  The
  adoption of SFAS No. 128 had no impact on previously reported loss per
  share for the three months ended September 30, 1997.  In accordance with
  SFAS No. 128, primary earnings (loss) per share has been replaced with
  basic earnings (loss) per share, and fully diluted earnings (loss) per
  share has been replaced with diluted earnings (loss) per share which
  includes potentially dilutive securities such as outstanding options and
  convertible securities, using the treasury stock method.  The assumed
  exercise of options and warrants and assumed conversion of convertible
  securities have not been included in the calculation of diluted loss per
  share as the effect would be anti-dilutive.

  Note 4 - The "Year 2000 Problem", dates following December 31, 1999 and
  beyond:

       Many existing computer systems and applications, and other devices,
  use only two digits to identify a year in the date field, without
  considering the impact of the upcoming change in the century. Such
  systems and applications could fail or create erroneous results unless
  corrected. The Company relies on its internal financial systems and
  external systems of business enterprises such as customers, suppliers,
  creditors, and financial organizations both domestically and globally,
  directly and indirectly for accurate exchange of data.  The Company has
  evaluated such systems and believes the cost of addressing the "Year
  2000 Problem" will not have a material adverse affect on the result of
  operations of financial position of the Company. However, although the
  internal systems of the Company are not materially affected by the Year
  2000 issue, the Company could be affected through disruption in the
  operation of the enterprises with which the Company interacts.

  Note 5 - Notes Payable

       Between May 1997 and August 1998, the Company borrowed an aggregate
  of $380,000 of which 280,000 are from shareholders of the Company,
  payable with interest at 9.5% per annum due on March 1, 1999 and 100,000
  from an unrelated party payable with interest at 9.5% per annum due on
  December 31, 1998.  The repayment of these notes is subordinate to the
  claims of the note described in Note 6.  


  Note 6 -  Bridge Notes Payable

       In August 1998, the Company completed a debt-refinancing
  transaction whereby the Company borrowed $550,000 from Mr. K. Charles
  Janac pursuant to a Convertible Secured Promissory Note issued by the
  Company (the "Note") in the principal amount of $550,000 and bearing
  interest at the rate of 9.75% per annum.  The Note is convertible into
  shares of Class A Common Stock at the option of Mr. Janac at any time
  before December 15, 1998 by converting the principal balance and any
  unpaid interest due under the Note into Class A Common Stock at the rate
  of $0.468 per share.  In addition, as further consideration for the loan
  of funds to the Company, the Company issued to Mr. Janac a warrant,
  exercisable at any time on or before August 18, 2003, to purchase up to
  234,667 shares of Class A Common Stock at $.468 per share (the
  "Warrants").  The total number of shares of Class A Common Stock
  issuable upon conversion of the Note or exercise of the Warrants are
  subject to adjustment in the event of recapitalization, stock dividends,
  or similar events.  As security for the Note, the Company entered into a
  Security Agreement granting Mr. Janac a first priority security interest
  in the property, tangible and intangible, of the Company, as well as a
  Patent and Trademark Mortgage granting Mr. Janac a security interest in
  all the patents and trademarks of the Company.

       All principal and accrued interest under the Note is due and
  payable on or before December 15, 1998.

       The business address of Mr. Janac is 651 River Oaks Parkway, San
  Jose, CA 95134.

       The Company used the funds loaned by Mr. Janac to retire
  $532,242.47 of existing debt incurred by the Company in connection with
  a certain bridge financing originally undertaken by the Company in
  October of 1997, to pay legal fees and costs of the transaction, and
  approximately $7,000 was utilized for working capital.

       The fair value of the warrants (calculated using the Black Scholes
  Pricing Model) is $91,520 and is being amortized over the remaining term
  of the loan, 4 months.  Amortization for the three and nine months ended
  September 30, 1998 was $34,320. In addition, the Company secured payment
  extensions on the remaining $30,000 in bridge loans through March 31,
  1999.


  Note 7 - Convertible Preferred Stock

       On September 1, 1998, the Company sold 175,439 Shares of Series A
  Preferred Stock.

       All of the shares of Series A Preferred Stock were sold to Anchor
  Products Limited of Hamilton, New Zealand ("Anchor").  The acquisition
  of Series A Preferred Stock by Anchor was consummated in connection with
  the execution of a Commercial License Agreement between the Company and
  Anchor, whereby the Company licensed Anchor a technology that isolates
  proteins from whey, a low value cheese by-product.  The shares of Series
  A Preferred Stock were sold for cash in the aggregate amount of $500,000
  ($2.85 per share).  There were no underwriting discounts or commissions
  paid in connection with the transaction.

       The shares of Series A Preferred Stock were sold pursuant to
  exemptions from registration under Section 4(2) and Regulation S under
  the Securities Act of 1933, in a transaction that was not publicly
  offered.  Anchor is a New Zealand corporation.

       The Company's Series A Preferred Stock provides for both a 7%
  dividend and liquidation preferences.  The dividend is payable from time
  to time at the election of the Board of Directors of the Company subject
  to the Company retaining sufficient earnings and profits.  The Preferred
  Stock is also convertible on or before September 30, 2000 into Class A
  Common Stock, at the conversion rate of $2.86 per share.  On any
  voluntary or involuntary liquidation, dissolution or winding-up of the
  Company, the holders of Series A Preferred Shares shall receive, out of
  the assets of the Company, the sum of $2.86 per Series A Preferred
  Share, plus an amount equal to any dividends accrued and unpaid on those
  Series A Preferred Shares, before any payment shall be made or any
  assets distributed to the holders of Common Stock.  The Series A
  Preferred Shares shall be redeemable at the option of the holders of the
  Series A Preferred Shares commencing September 30, 2003 and expiring
  December 31, 2008, at the cash price of $2.86 per share, plus any
  accrued and unpaid dividends on the Series A Preferred Shares which are
  redeemed.  In addition, each share of Series A Preferred Stock shall be
  automatically converted into one (1) share of Class A Common Stock, if
  not previously redeemed, on January 1, 2009, or at any time the closing
  bid price per share of the Company's Class A Common Stock shall average
  at least $3.86 per share over ninety (90) consecutive trading days prior
  to January 1, 2004.  The conversion ratio for the Series A Preferred
  Stock shall be adjusted in the event of recapitalization, stock
  dividend, or any similar event effecting the Class A Common Stock. 

       Anchor may require the Company to immediately redeem the preferred
  shares in the event of certain covenant breaches of the license
  agreement by the Company. The Company is currently in compliance with
  all such covenants and does not anticipate any breaches in the future.

  Item 2 .  Management's Discussion and Analysis.

  First nine months of 1998 compared to first nine months of 1997.

       Net sales increased by $468,000 or 64% from $732,000 in the first
  nine months of 1997 to $ 1,200,000 for the comparable period in 1998. 
  The increase in sales is due to the increase of sales of its core
  products, Radial Flow Chromatography (RFC) equipment and a $200,000
  license fee for the Sepralac process received from Anchor products of
  New Zealand.

       Gross Margin increased by $231,000 or 72% from $320,000 in the
  first nine months  of 1997 to $551,000 in the first nine months of 1998. 
  The increase in gross margin is primarily due to a higher production
  volume and revenue generated from license fee that does not have cost of
  goods associated with it. As a percentage of sales, gross margin
  increased slightly from 44% in the first three quarters of  1997 to 46% 
  for the comparable period in 1998, primarily due to the license fee
  income which more than offset the lower margins realized from sales of
  core products. 

       Selling, general and administrative expenses decreased by $158,000
  from $1,115,000 in the first nine months of 1997 to $957,530 in the
  first nine months of 1998. The decrease was primarily due to continued
  belt tightening measures adopted in mid 1997 in administrative expenses
  coupled with a reduction in head count in sales and marketing, scaling
  back of advertising and promotion and travel expenses partially offset
  by $49,000 write-off of expenses related to the Company's financing
  activities.

       Research and development expenses decreased by $93,000 from
  $670,000 in the first nine months of 1997 to $577,000 in the first nine
  months of 1998.  The decrease was mainly due to the reduction in the
  cost of software development for the QuantaSep product.

       Interest and other expense increased by $179,000 in the first nine
  months of 1998 compared to the first nine months of 1997 due to
  amortization of $70,000 of issuance cost, amortization of the fair value
  of warrants issued of $34,000 and $75,000 interest expense related to
  the bridge loans and notes payable. 


  Third quarter 1998 compared to third quarter 1997.

       Net sales increased by $168,000 from $188,000 in the third quarter
  of 1997 to $356,000 in the third quarter of 1998. The increase in sales
  is due to $200,000 license fee received for the Sepralac(R) Process
  partially offset by small decrease in sales of the core products, Radial
  Flow Chromatography (RFC) equipment.

       Gross margin increased by $141,000 or 186% from $76,000 in the
  third quarter of 1997 to $217,000 in the third quarter of 1998, and as a
  percent of sales, increased by 21% from 40% to 61%.  The higher margin
  was attributable to the Sepralac license fee received  in the third of
  quarter of 1998, which more than offset the lower margins realized on
  sales of core products.

       Selling, general and administrative expense increased by $40,000 or
  13%. The increase is due to a write-off of $49,000  legal, printing,
  commission related to a private placement financing.

       Research and development expenses increased by $15,000 or 9% from
  $158,000 in the third quarter of 1997 to $173,000 in the third quarter
  of 1998. This increase was  due  to a one time severance pay related to
  the reorganization of the department. 

  Inflation.

       The Company believes that the impact of inflation on its operations
  since its inception has not been material.

  Liquidity and Capital Resources:

       The Company use of cash for operations was $639,000 and $488,000
  during the nine months ended September 30, 1998 and 1997, respectively.
  Cash used in operations in the first nine months  of 1998 was the result
  of net loss incurred for the nine six months  of $1,162,000, offset by
  net non-cash expense of $177,000,  the net change in operating assets
  and liabilities resulting in source of cash of $346,000. Cash used in
  the first nine months  of 1997 was the result of  net loss incurred for
  the nine months of $1,391,000, offset by net non-cash expenses of
  $102,000, and the net change in operating assets and liabilities
  resulting in source of cash of  $801,000.

       Financing activities provided cash of $800,700 during the first
  nine months of 1998. The cash provided resulted from the subscription
  proceeds for preferred stock of $500,000 and issuance of notes payable
  of $300,700.

       At September 30, 1998 the Company had cash and cash equivalents of
  $206,200 as compared with $44,400 on December 31, 1997.  At September
  30, 1998, the Company had working capital deficit of $1,375,700, as
  compared to working capital deficit of  $902,000 at December 31, 1997. 
  The decrease in cash in the first nine months of 1998 is a result of the
  aforementioned increase or decrease in cash from operating and financing
  activities noted above. The decrease in working capital for the first
  nine months is primarily a result of the net loss incurred offset by
  non-cash charges.  

       This negative cash out flow from operations must be reversed and
  working capital increased significantly in order for the Company to fund
  its existing activities and to extend the use of its technology to new
  applications in the food and dairy and juice industries, and to attract
  the interest of strategic partners in one or more of these markets.

       Based on the Company's current operating plan, the Company believes
  that it will only be able to fund the Company's operations through
  December 31, 1998.  Accordingly, the Company will have to either turn
  profitable or obtain additional funds to support its operations.  The
  Company is currently pursuing several avenues including increasing
  revenues and reducing costs in order to turn profitable, secure funds
  through additional strategic partnerships and secure either debt or
  equity financing.

       Following this strategy, on August 25, 1998, the Company announced
  the signing of a license agreement with Anchor Products. Under this
  agreement, Anchor Products will have exclusive manufacturing rights to
  the Sepralac(R) process in Australia and New Zealand and non-exclusive
  worldwide marketing rights to products produced by the Sepralac(R)
  Process. In return, the Company has received $700,000 out of  a total of
  about $1 million from Anchor Products, comprised of a license fee of
  $200,000 and an equity investment of $500,000 for the purchase of 
  175,439 redeemable, cumulative, preferred stock at $2.85 per share. The
  preferred stock is convertible into common stock (on share for share
  basis) at any time within the next 2 years and extendible for a further
  1 year at the Company's option. 

       On October 15, 1998, the Company announced a licensing agreement
  for the Sepralac(R) Process with Carberry Milk Products of Ballineen,
  County Cork, Ireland. Under the agreement, Carberry will have
  manufacturing and marketing rights to certain products produced from the
  Sepralac(R) Process. In return, the Company will receive a license fee
  of $350,000 payable $200,000 before January 1, 1999 and the balance over
  the term of the agreement.  Further, Carberry  agreed to an initial
  purchase of equipment worth approximately  $100,000.  

       The evaluation agreement  to commercialize the Sepralac(R) Process 
  between Sepragen Corporation and California Gold Dairy Products of
  Petaluma, California by mutual agreement  was terminated on September 8,
  1998. 
       A technical evaluation  agreement  for the Debitt(R) Process, a
  debittering and deacidification process using Sepragen Corporation's 
  RFC(R)  Column, has been signed with Tropicana products.

       The Company currently has no credit facility with a bank or other
  financial institution.  Further, the Company's stock is traded over-the-
  counter and as such there is limited liquidity in the Company's stock
  which makes financing difficult.

       The Company is seeking to enter into strategic alliances with
  corporate partners in the industries comprising its primary target
  markets (biopharmaceutical, food, dairy and juice).  The Company's
  ability to further develop and market its Sepralaca Process for whey
  separation and other potential food and juice products and processes
  will be substantially dependent upon its ability to negotiate
  partnerships, joint ventures or alliances with established companies in
  each market.  In particular, the Company will be reliant on such joint
  venture partners or allied companies for both market introduction,
  operational assistance and financial assistance.  The Company believes
  that development, manufacturing and market introduction of products in
  these industries, will cost millions of dollars and require operational
  capabilities in excess of those currently available to the Company.  No
  assurance can be given, however, that the terms of any additional
  alliances will be successfully negotiated  or that such alliance will be
  successful in generating the revenue required to make the Company
  profitable. 

  Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the
  Private Securities Litigation Reform Act of 1995.

       This report contains or incorporates by reference forward-looking
  statements within the meaning of the Private Securities Litigation
  Reform Act of 1995.  Where any such forward-looking statement includes a
  statement of the assumptions or bases underlying such forward-looking
  statement, the Company cautions that, while such assumptions or bases
  are believed to be reasonable and are made in good faith, assumed facts
  or bases almost  always vary from the actual results, and the
  differences between assumed facts or bases and actual results can be
  material, depending upon the circumstances.  Where, in any forward-
  looking statement, the Company or its management expresses an
  expectation or belief as to future results, such expectation or belief
  is expressed in good faith and is believed to have a reasonable basis,
  but there can be no assurance that the statement of expectation or
  belief will result or be achieved or accomplished.  The words "believe,"
  "estimate," "anticipate," and similar expressions may identify forward-
  looking statements.

       Taking into account the foregoing, the following are identified as
  some but not all of the important factors that could cause actual
  results to differ materially from those expressed in any forward-looking
  statement made by, or on behalf of the Company:

       Inability to Secure Additional Capital.  The Company has incurred
  operating losses each fiscal year since its inception.  The Company must
  secure additional financing through either the sale of additional
  securities or debt financing to continue operations past January 1,
  1999.  Although the Company is attempting to secure such financing,
  there can be no assurance that such financing will be available to the
  Company on reasonable terms.  The Company has been delisted from the
  Nasdaq SmallCap Market and the Pacific Stock Exchange.  See Item 2
  "Management's Discussion and Analysis-Liquidity and Capital Resources."

       Competition.  In both its biopharmaceutical industry market and in
  the market for its process systems for food, beverage, dairy and
  environmental industries, the Company faces intense competition from
  better capitalized competitors.

       Dependence on Joint Ventures and Strategic Partnerships.  The
  Company's entry into the food, dairy and beverage market for its process
  systems will be substantially dependent upon its ability to enter into
  strategic partnerships, joint ventures or similar collaborative alliance
  with established companies in each market.  As of the date of this
  report, two licensing agreements have been signed but  there can be no
  assurance that the terms of any such alliance will produce profits for
  the Company nor can there be assurance that additional joint ventures or
  alliances will be signed.

       Management Reorganization: Since September 5, 1998, Dr. Q.R.
  Miranda, Vice President of Research and Development has not been
  employed by Sepragen Corporation. 

                                   PART II
                              OTHER INFORMATION

  Item 1.   Legal Proceedings
                 Not Applicable

  Item 2.   Changes in Securities
            See footnotes 6 and 7 of the financial statements.

  Item 3.   Defaults Upon Senior Securities
                 Not Applicable

  Item 4.   Submission of Matters to a vote of Security Holders
                 Not Applicable

  Item 5.   Other Information
                 Not Applicable

  Item 6.   Exhibits and Reports on Form 8-K  

       (a)  Exhibits

            4.8     Warrant Agreement with Charles Janac

            10.9    Convertible Secured Promissory Note issued by the
                    Company to Charles Janac

            10.10   Security Agreement with Charles Janac

            10.11   Patent and Trademark Mortgage

       (b)  Reports on Form 8-K

            Form 8-K, dated August 14, 1998, Items 5, 7 and 9.

                                 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.

                                SEPRAGEN CORPORATION

  DATE: November 19, 1998       By: /s/Vinit Saxena
                                    Vinit Saxena
                                    Chief Executive Officer, President and
                                    Principal Financial and Chief
                                    Accounting Officer
<PAGE>
                              INDEX TO EXHIBITS


                                                        Sequential Page No.

  4.8       Warrant Agreement with Charles Janac              14

  10.9      Convertible Secured Promissory Note issued 
            by the Company to Charles Janac                   24

  10.10     Security Agreement with Charles Janac             29

  10.11     Patent and Trademark Mortgage                     45