UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549
                              FORM 10-Q
(Mark One)

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

            For the quarterly period ended June 30, 2010

[ ]     TRANSITION REPORT PURSUANT TO 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 registrant 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
         ____________________________________________________
         (Registrant's telephone number, including area code)

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

Indicate  by 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   [ ]

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated filer, an accelerated filer, a non-accelerated filer,
or  a  smaller reporting company.  See the definitions of  "large
accelerated  filer," "accelerated filer" and  "smaller  reporting
company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  [ ]     Accelerated filer          [ ]
Non-accelerated filer    [ ]     Smaller reporting company  [x]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).

Yes  [ ]       No   [x]

APPLICABLE  ONLY  TO  ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEEDING FIVE YEARS

Indicate   by  check  mark  whether the registrant has filed all
documents and reports  required to be filed by Section 12, 13 or
15(d) of the Securities  Exchange  Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.

Yes  [x]       No   [ ]

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:

There were 1,565,404,297 shares of common stock, par value $0.01,
_________________________________________________________________
issued and outstanding as of August 10, 2010.
_____________________________________________

                                 (i)
<PAGE>
                              FORM 10-Q
                      IGENE Biotechnology, Inc.


                                INDEX



PART I    -    FINANCIAL INFORMATION

                                                                        Page

     Consolidated Balance Sheets (Unaudited)...........................    1

     Consolidated Statements of Operations (Unaudited) ................    2

     Consolidated Statement of Stockholders' Deficiency (Unaudited)....    3

     Consolidated Statements of Cash Flows (Unaudited).................    4

     Notes to Consolidated Financial Statements (Unaudited)............  5-7

     Management's Discussion and Analysis of Financial
     Conditions and Results of Operations .............................  8-12

     Controls and Procedures...........................................    13

PART II   -    OTHER INFORMATION ......................................    14

EXHIBITS ..............................................................    15

SIGNATURES ............................................................    16



                                 (ii)
<PAGE>

             IGENE BIOTECHNOLOGY, INC. QUARTERLY REPORT
   UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

                                (iii)
<PAGE>
<TABLE>
<CAPTION>

Item 1.   Financial Statements

                              IGENE Biotechnology, Inc. and Subsidiary
                                    Consolidated Balance Sheets


                                                                       June 30,      December 31,
                                                                          2010              2009
                                                                  _____________     _____________
                                                                   (Unaudited)
<S>                                                               <C>               <C>
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                                       $    977,381      $  1,295,222
  Accounts receivable                                                    1,929             1,929
  Due from Naturxan                                                  1,992,206         2,318,085
  Prepaid expenses and other current assets                             11,147            44,452
                                                                  _____________     _____________
     TOTAL CURRENT ASSETS                                            2,982,663         3,659,688

  Property and equipment, net                                          784,644           852,894
  5 year non-compete, net                                               76,988            92,386
  Intellectual property                                                149,670           149,670
  Other assets                                                           5,125             5,125
                                                                  _____________     _____________
     TOTAL ASSETS                                                 $  3,999,090      $  4,759,763
                                                                  =============     =============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT LIABILITIES
  Accounts payable and accrued expenses                           $    487,638      $    465,405
  Guarantee in debt of Naturxan                                      1,612,500         1,094,502
                                                                  _____________     _____________
     TOTAL CURRENT LIABILITIES                                       2,100,138         1,559,907

LONG-TERM DEBT
  Notes payable (net of unamortized discount)                          363,874           363,874
  Contingent liability on joint venture separation                   5,000,000         5,000,000
  Accrued interest                                                     352,141           338,059

REDEEMABLE PREFERRED STOCK
  Carrying amount of redeemable preferred stock, 8% cumulative,
  convertible, voting, series A, $0.01 par value per share.
  Stated value $21.92 and $21.60, respectively. Authorized
  1,312,500 shares; issued and outstanding 11,134 shares.              244,056           240,494
                                                                  _____________     _____________

     TOTAL LIABILITIES                                               8,060,209         7,502,334
                                                                  _____________     _____________

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIENCY
  Common stock --- $0.01 par value per share.  Authorized
  3,000,000,000 shares; issued and outstanding 1,565,404,297
  and 1,560,404,297 shares, respectively.                           15,654,043        15,604,043
  Additional paid-in capital                                        34,466,645        34,466,645
  Accumulated deficit                                              (54,231,774)      (52,871,515)
  Other comprehensive income                                            49,967            58,256
                                                                  _____________     _____________


     TOTAL STOCKHOLDERS' DEFICIENCY                                 (4,061,119)       (2,742,571)
                                                                  _____________     _____________

     TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY               $  3,999,090      $  4,759,763
                                                                  =============     =============


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

</TABLE>

                               -1-
<TABLE>
<CAPTION>

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


                                                                        Three months ended                Six months ended
                                                                   ____________________________     ____________________________
                                                                        June 30,       June 30,          June 30,       June 30,
                                                                           2010           2009              2010           2009
                                                                   _____________  _____________     _____________  _____________
<S>                                                                <C>            <C>               <C>            <C>
REVENUE
_______

  Sales                                                            $        ---   $  1,595,525      $        ---   $  2,837,310
  Cost of sales                                                             ---      1,571,727               ---      2,516,912
                                                                   _____________  _____________     _____________  _____________

GROSS PROFIT                                                                ---         23,798               ---        320,398

LOSS OF JOINT VENTURE                                                  (695,439)      (323,876)       (1,088,721)      (558,086)
                                                                   _____________  _____________     _____________  _____________

OPERATING EXPENSES
__________________

  Marketing and selling                                                 216,327         80,274           351,906        186,384
  Research and development                                              513,096        417,340           982,806        878,515
  General and administrative                                             79,291        249,503           152,568        482,159
  Operating expenses reimbursed by Joint Venture                       (682,084)      (453,418)       (1,213,051)      (906,387)
                                                                   _____________  _____________     _____________  _____________

     TOTAL OPERATING EXPENSES                                           126,630        293,699           274,229        640,221
                                                                   _____________  _____________     _____________  _____________

     OPERATING LOSS                                                    (822,069)      (593,777)       (1,362,950)      (877,909)
                                                                   _____________  _____________     _____________  _____________

OTHER INCOME                                                             13,792            901            13,792      1,026,642

INTEREST EXPENSE                                                         (2,935)        (9,030)          (11,101)       (17,901)
                                                                   _____________  _____________     _____________  _____________

     NET INCOME (LOSS)                                             $   (811,212)  $   (601,906)     $ (1,360,259)  $    130,832
                                                                   _____________  _____________     _____________  _____________

OTHER COMPREHENSIVE INCOME (LOSS)

   Foreign exchange translation                                          (1,929)        54,084            (8,289)        66,086


     TOTAL COMPREHENSIVE INCOME (LOSS)                             $   (813,141)  $  ( 547,822)     $ (1,368,548)  $    196,918
                                                                   =============  =============     =============  =============

BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE               $      (0.00)  $      (0.00)     $      (0.00)  $      (0.00)
                                                                   =============  =============     =============  =============

WEIGHTED AVERAGE SHARES OUTSTANDING                                1,565,404,297  1,518,503,841     1,563,123,082  1,518,503,841
                                                                   =============  =============     =============  =============


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

</TABLE>

                               -2-
<TABLE>
<CAPTION>

                                        IGENE Biotechnology, Inc. and Subsidiary
                                   Consolidated Statement of Stockholders' Deficiency
                                                      (Unaudited)

                                                                           Additional                     Other          Total
                                                 Common Stock              Paid-in      Accumulated   Comprehensive  Stockholders'
                                                (shares/amount)            Capital        Deficit        Income       Deficiency
                                         _______________ _____________  _____________  _____________  _____________  _____________
<S>                                      <C>             <C>            <C>            <C>            <C>            <C>
Balance at January 1, 2010                1,560,404,297   $15,604,043   $ 34,466,645   $(52,871,515)  $     58,256   $ (2,742,571)

Shares issued for services                    5,000,000        50,000            ---            ---            ---         50,000


Loss due to currency translation                    ---           ---            ---            ---         (8,289)        (8,289)

Net loss for the six months ended
  June 30, 2010                                     ---           ---            ---     (1,360,259)           ---     (1,360,259)
                                         _______________ _____________  _____________  _____________  _____________  _____________

Balance at June 30, 2010                  1,565,404,297  $ 15,654,043   $ 34,466,645   $(54,231,774)  $     49,967   $ (4,061,119)
                                         =============== =============  =============  =============  =============  =============


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

                               -3-

<TABLE>
<CAPTION>

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

                                                                                            Six months ended
                                                                                    _______________________________
                                                                                         June 30,         June 30,
                                                                                            2010             2009
                                                                                    _____________     _____________
<S>                                                                                 <C>               <C>
Cash flows from operating activities
  Net income (loss)                                                                 $ (1,360,259)     $    130,832
  Adjustments to reconcile net loss to net cash provided by (used in)
  operating activities:
     Depreciation                                                                         75,362            83,651
     Increase in preferred stock for cumulative dividends
       classified as interest                                                              3,562             3,546
     Recoupment from (advances to) joint venture                                        (244,844)       (1,093,627)
     Shares issued for services                                                           50,000               ---
     Amortization of customer contracts and non-compete                                   15,398            15,397
     Loss of joint venture                                                             1,088,721           558,086
     Gain on forgiveness of debt                                                             ---        (1,025,741)

     Decrease (increase) in:
       Accounts receivable                                                                   ---          (181,201)
       Inventory                                                                             ---         2,358,892
     Prepaid expenses and other current assets                                            33,304           (20,719)

     Increase (decrease) in:
       Accounts payable and accrued expenses                                              36,316          (661,078)
                                                                                    _____________     _____________

  Net cash provided by (used in) operating activities                                   (302,440)          168,038
                                                                                    _____________     _____________

Cash flows from investing activities
  Purchase of equipment                                                                   (7,461)         (195,863)
  Sale of equipment                                                                          349               ---
                                                                                    _____________     _____________

  Net cash used in investing activities                                                   (7,112)         (195,863)
                                                                                    _____________     _____________

Cash flows from financing activities
  Net cash provided by financing activities                                                  ---               ---
                                                                                    _____________     _____________

Gain (loss) due to currency translation                                                   (8,289)           66,086

Net increase (decrease) in cash and cash equivalents                                    (317,841)           38,261

  Cash and cash equivalents at beginning of period                                     1,295,222         1,488,011
                                                                                    _____________     _____________
  Cash and cash equivalents at end of period                                        $    977,381      $  1,526,272
                                                                                    =============     =============
Supplementary disclosure and cash flow information
__________________________________________________

Cash paid for interest                                                              $        ---      $        ---
Cash paid for income taxes                                                                   ---               ---

See Note (4) for non-cash investing and financing activities.


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

</TABLE>
                               -4-
            IGENE Biotechnology, Inc. and Subsidiary
           Notes to Consolidated Financial Statements
                           (Unaudited)

(1)  Unaudited Consolidated Financial Statements

     The   June   30,  2010  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, results of operations 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  of
     America.  This Quarterly Report on Form 10-Q should be  read
     in conjunction with the Annual Report on Form 10-K for IGENE
     Biotechnology, Inc. ("Igene" or the "Company") for the  year
     ended December 31, 2009.  The December 31, 2009 consolidated
     balance  sheet  is  derived from the audited  balance  sheet
     included therein.

(2)  Nature of Operations

     Igene  was incorporated in the State of Maryland on  October
     27,   1981   to  develop,  produce  and  market  value-added
     specialty  biochemical products.  Igene  is  a  supplier  of
     natural astaxanthin, an essential nutrient in different feed
     applications  and  a source of pigment for  coloring  farmed
     salmon   species.   Igene  is  also  venturing   to   supply
     astaxanthin as a nutraceutical ingredient.  Igene is focused
     on  research  and  development in the areas of  fermentation
     technology,  nutrition  and  health  and  the  marketing  of
     products and applications worldwide.  Igene is the developer
     of  Aquasta(R),  a  natural  astaxanthin  product  made from
     yeast,  which  is  used  as a source of pigment for coloring
     farmed salmonids.

     Igene  has  devoted  its  resources to  the  development  of
     proprietary  processes to convert selected agricultural  raw
     materials  or feedstocks into commercially useful  and  cost
     effective   products  for  the  food,   feed,   flavor   and
     agrochemical industries.  In developing these processes  and
     products,  Igene has relied on the expertise and  skills  of
     its  in-house  scientific staff and, for  special  projects,
     various consultants.

     In 2000, Igene formed a wholly-owned subsidiary, Igene Chile
     Comercial, Ltda., in Chile.  The subsidiary has a sales  and
     customer  service  office  in Puerto  Varas,  Chile,  and  a
     product warehouse in Puerto Montt, Chile.

     In  an  effort to develop a dependable source of production,
     on  March  19,  2003,  Tate & Lyle PLC  ("Tate")  and  Igene
     announced  a 50:50 joint venture to produce astaxanthin  for
     the  aquaculture industry, which we refer to as  the  "Joint
     Venture."     Production   utilized   Tate's    fermentation
     capability together with the unique technology developed  by
     Igene.  Part of Tate's existing citric acid facility located
     in Selby, England, was modified to include the production of
     this    product.    Tate's   investment   of   approximately
     $24,600,000  included  certain of its facility  assets  that
     were  used  in citric acid production.  Igene's contribution
     to  the  Joint Venture, including its intellectual  property
     and  its  subsidiary in Chile, was valued by the parties  as
     approximately equal to Tate's contribution.  For  accounting
     purposes,  Igene's  accounting contribution  was  valued  at
     zero.

     On  October  31,  2007,  Igene  and  Tate  entered  into   a
     Separation Agreement pursuant to which the Joint Venture was
     terminated.  As part of the Separation Agreement, Igene sold
     to Tate its 50% interest in the venture and the venture sold
     to  Igene  its intellectual property, inventory and  certain
     assets and lab equipment utilized by the venture as well  as
     Igene's  subsidiary in Chile.   The purchase price  paid  by
     Tate to Igene for its 50% interest in the venture was 50% of
     the  venture's net working capital.  The purchase price paid
     by Igene for the inventory was an amount equal to 50% of the
     venture's  net  working capital, the assumption  of  various
     liabilities  and the current market price of the  inventory,
     less specified amounts.  In addition, Igene agreed to pay to
     Tate  an  amount equal to 5% of Igene's gross revenues  from
     the sale of astaxanthin up to a maximum of $5,000,000.  Tate
     agreed  for  a  period of five years not to  engage  in  the
     astaxanthin business.

     On  January  8,  2009, Igene entered into an agreement  with
     Archer-Daniels-Midland Company ("ADM") pursuant to which the
     Company  and  ADM formed a joint venture (the "ADM  JV")  to
     manufacture  and  sell astaxanthin and  derivative  products
     throughout the world.  Each of the Company and ADM has a 50%
     ownership   interest   in  the  ADM   JV   and   has   equal
     representation on the Board of Managers of the ADM JV.


                               -5-
            IGENE Biotechnology, Inc. and Subsidiary
           Notes to Consolidated Financial Statements
                           (Unaudited)
                           (continued)

(3)  Non-Cash Investing and Financing Activities

     During  the  six months ended June 30, 2010  and  2009,  the
     Company recorded in each quarter dividends in arrears on its
     8%  Redeemable  Preferred Stock accumulating  at  $0.16  per
     share aggregating to $3,562 and $3,546, respectively.

(4)  Stockholders' Deficiency

     As  of  June  30,  2010,  22,268 shares  of  authorized  but
     unissued   common  stock  were  reserved  for   issue   upon
     conversion of the Company's outstanding preferred stock.

     As  of  June  30,  2010, 656,428 shares  of  authorized  but
     unissued  common  stock were reserved for  the  exercise  of
     outstanding warrants.

 (5) Basic and Diluted Net Loss per Common Share

     Basic  and diluted net loss per common share for the  three-
     month  and  six-month periods ended June 30, 2010 and  2009,
     are  based on 1,565,404,297 and 1,518,503,841, respectively,
     of   weighted   average  common  shares   outstanding.    No
     adjustment  has  been made for any common stock  equivalents
     outstanding because their effects would be antidilutive.  As
     of  June  30,  2010  and 2009, potentially  dilutive  shares
     totaled 1,566,082,993 and 1,570,787,537, respectively.

(6)  Going Concern

     Igene has incurred net losses in each year of its existence,
     aggregating approximately $54,232,000 from inception to June
     30,  2010  and  as  of  June 30, 2010,  Igene's  liabilities
     exceeded  its  assets  by approximately  $4,061,000.   These
     factors  indicate that Igene may not be able to continue  in
     existence unless it is able to raise additional capital  and
     attain profitable operations.

     As  discussed, as of October 31, 2007, Igene had  terminated
     its  relationship  with Tate & Lyle.  Igene  maintained  the
     saleable   inventory   after   the   termination   of    the
     relationship.  Igene sold the existing inventory in order to
     maintain  its  relationship with customers  and  used  these
     funds to cover expenses.

     On  January  8,  2009, Igene entered into an agreement  with
     Archer-Daniels-Midland Company ("ADM") pursuant to which the
     Company  and ADM formed the ADM JV to manufacture  and  sell
     astaxanthin  and derivative products throughout  the  world.
     Each of the Company and ADM has a 50% ownership interest  in
     the  ADM  JV  and has equal representation on the  Board  of
     Managers of the ADM JV.

(7)  Naturxan LLC

     ADM  has  provided a working line of credit to  the  ADM  JV
     bearing interest at the rate of 4% in excess of the one year
     LIBOR.   As part of the ADM JV agreement both Igene and  ADM
     agreed to provide a Guarantee for 50% of the indebtedness of
     the  new  venture  Naturxan, LLC,  up  to  $1,612,500.   The
     $1,992,206  due  from Naturxan is for services  provided  by
     Igene to the ADM JV.  These fees are payable within 30  days
     of  the  receipt  of  the invoice.  Unpaid  invoices  accrue
     interest at the six month LIBOR.

     Manufacturing  is underway at the ADM facility.   Management
     expects continued dependable production.  As of the  end  of
     the second quarter of 2010, Igene has not made an investment
     in the ADM JV.


                               -6-

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



(8)  Forgiveness of Debt

     The June 30, 2009 financials reflect the recording of a gain
     of  $1,025,742.  This is a one-time occurrence related to  a
     liability  recorded  in  a  prior  period  related  to   the
     termination  of  the Joint Venture with  Tate  &  Lyle.   On
     February  26,  2009, Igene signed a settlement agreement  of
     past obligations and made a final payment to Tate & Lyle  in
     the  amount  of $714,227.  At the termination of  the  Joint
     Venture, Igene recorded liabilities of $890,000 for payments
     of past payables of the Joint Venture as well as $51,000 for
     costs  related  to collection of receivables  of  the  Joint
     Venture.  The expense was recorded when it was thought Igene
     could  be  liable  for  such amount  it.    Apart  from  the
     $5,000,000 liability related to future revenue (see Note 2),
     Igene has fulfilled all of its payment obligations to Tate &
     Lyle.

(9)  Issuance of Restricted Shares

     The  Company's Compensation Committee and Board of Directors
     recommended the issuance of 5,000,000 shares of Common Stock
     of  Igene Biotechnology, Inc. (par value $.01 per share), at
     $.01 per share, the market price on February 19, 2010 to its
     Manufacturing  Consultant, Joseph Downs, in recognition  for
     his work in helping to facilitate the production process  at
     the  new  facility.  These shares were issued in  the  first
     quarter of 2010, and they were expensed as part of marketing
     and selling expense in the period.


                               -7-

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

Item 2.   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  RISK
AND  UNCERTAINTY.  CERTAIN STATEMENTS IN THIS  REPORT  SET  FORTH
MANAGEMENT'S   INTENTIONS,   PLANS,  BELIEFS,   EXPECTATIONS   OR
PREDICTIONS  OF THE FUTURE BASED ON CURRENT FACTS  AND  ANALYSES.
WHEN   WE   USE  THE  WORDS  "BELIEVE,"  "EXPECT,"  "ANTICIPATE,"
"ESTIMATE,"  "INTEND"  OR  SIMILAR  EXPRESSIONS,  WE  INTEND   TO
IDENTIFY FORWARD-LOOKING STATEMENTS.  YOU SHOULD NOT PLACE  UNDUE
RELIANCE ON THESE FORWARD-LOOKING STATEMENTS.  ACTUAL RESULTS MAY
DIFFER MATERIALLY FROM THOSE INDICATED IN SUCH STATEMENTS, DUE TO
A  VARIETY OF FACTORS, RISKS AND UNCERTAINTIES.  POTENTIAL  RISKS
AND  UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED  TO,  COMPETITIVE
PRESSURES FROM OTHER COMPANIES WITHIN THE BIOTECH AGRICULTURE AND
AQUACULTURE  INDUSTRIES,  ECONOMIC CONDITIONS  IN  THE  COMPANY'S
PRIMARY  MARKETS,  EXCHANGE  RATE FLUCTUATIONS,  REDUCED  PRODUCT
DEMAND,  INCREASED  COMPETITION, INABILITY  TO  PRODUCE  REQUIRED
CAPACITY, UNAVAILABILITY OF FINANCING, GOVERNMENT ACTION, WEATHER
CONDITIONS  AND OTHER UNCERTAINTIES, INCLUDING THOSE DETAILED  IN
"RISK  FACTORS"  THAT  ARE  INCLUDED  FROM  TIME-TO-TIME  IN  THE
COMPANY'S  SECURITIES  AND  EXCHANGE  COMMISSION  FILINGS.    THE
COMPANY  ASSUMES NO DUTY TO UPDATE FORWARD-LOOKING STATEMENTS  TO
REFLECT   EVENTS  OR  CIRCUMSTANCES  AFTER  THE  DATE   OF   SUCH
STATEMENTS.


Critical Accounting Policies
____________________________

      Except as otherwise provided herein, the preparation of our
financial  statements  in conformity with  accounting  principles
generally  accepted  in the United States  (or  "GAAP")  requires
management  to  make  judgments, assumptions and  estimates  that
affect  the  amounts  reported in our  financial  statements  and
accompanying notes.  Actual results could differ materially  from
those  estimates.  The following are critical accounting policies
important  to  our financial condition and results of  operations
presented  in the financial statements and require management  to
make judgments and estimates that are inherently uncertain:

      The  inventories are stated at the lower of cost or market.
Cost  is  determined  using  a weighted-average  approach,  which
approximates the first-in first-out method.  If the cost  of  the
inventories  exceeds their expected market value, provisions  are
recorded  for  the  difference between the cost  and  the  market
value.  Inventories consist of currently marketed products.

      Revenue  from  product sales are recognized when  there  is
persuasive  evidence  that an arrangement  exists,  delivery  has
occurred, the price is fixed and determinable, and collectability
is  reasonably assured.  Allowances are established for estimated
uncollectible amounts, product returns and discounts.

     The  Joint  Venture and the ADM JV were accounted for  under
the  equity  method of accounting as Igene has  a  50%  ownership
interest.

     Igene  will  recognize the loss of the  ADM  JV  beyond  the
investment  and  advances  to the ADM  JV,  to  the  point  Igene
maintains guarantees in the debt of the ADM JV.








                               -8-

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



Results of Operations
_____________________

Sales and other revenue

     For the quarter ended June 30, 2009, Igene recorded sales in
the  amounts  of $1,595,525.  For the six months ended  June  30,
2009,  Igene recorded sales in the amounts of $2,837,310.   Sales
had  been  limited  in past years due to insufficient  production
quantity  and  limited  in  the  current  period  as  source   of
production  is being developed and production begins in  the  new
ADM  JV.   Management believes that this new ADM JV will  provide
salable  product that will allow Igene to be competitive  in  the
market  place and allow for increased sales in the future, though
no  assurances can be provided in this matter.  All future  sales
of the ADM JV product will be recorded through the ADM JV.

Cost of sales and gross profit

     For the quarter ended June 30, 2009, Igene recorded cost  of
sales  in  the amount of $1,571,727.  This resulted  in  a  gross
profit of $23,798, or 1%.  For the six months ended June 30, 2010
Igene  recorded cost of sales in the amount of $2,516,912.   This
resulted  in gross profit of $320,398, or 11%.  The gross  profit
is  due mainly to the discount in which the product was purchased
at the conclusion of the joint venture with Tate & Lyle.  As with
sales,  with  the termination of the joint venture  with  Tate  &
Lyle, there can be no assurance of the continued dependability of
production.   Sales  had  been  limited  in  past  years  due  to
insufficient  production  quantity and  limited  in  the  current
period  as  a  source  of  production  is  being  developed   and
production  begins in the new ADM JV.  Management  believes  that
this  new  ADM  JV will provide salable product that  will  allow
Igene  to  be  competitive  in the market  place  and  allow  for
increased  sales  in  the future, though  no  assurances  can  be
provided  in this matter.  As a result, future cost of  sales  is
expected  to increase as a new source of production is developed.
All  future cost of sales on the ADM JV product will be  recorded
through the ADM JV.

Loss from Joint Venture with Archer-Daniels-Midland-Company

     For  the quarter ended June 30, 2010, Igene recorded a  loss
from  the ADM JV of $695,439.  For the six months ended June  30,
2010,  Igene  recorded a loss from the ADM JV of $1,088,721.   On
January   8,   2009,  Igene  entered  into  an   agreement   with
Archer-Daniels-Midland  Company ("ADM")  pursuant  to  which  the
Company  and  ADM  formed  a  joint venture  (the  "ADM  JV")  to
manufacture   and   sell  astaxanthin  and  derivative   products
throughout  the world.  Each of the Company and  ADM  has  a  50%
ownership interest in the ADM JV and has equal representation  on
the Board of Managers of the ADM JV.

     The new ADM JV began selling product in the third quarter of
2009.   For  the  six months ended June 30, 2010,  revenues  from
sales  of  product were $4,906,295.  Cost of sales  for  the  six
months ended June 30, 2010 were $4,779,591, resulting in a  gross
profit of $126,704, or 3%.  Expenses recorded by the ADM JV  were
$2,304,147,  resulting in a net loss of $2,177,443  for  the  six
months ended June 30, 2010.  Igene's 50% interest resulted in the
$1,088,721 loss recorded.  Management believes that this new  ADM
JV  will  provide saleable product that will allow  Igene  to  be
competitive in the market place and allow for increased sales  in
the future, though no assurances can be provided in this matter.


                               -9-

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


Marketing and selling expenses

     For  the  quarters  ended  June 30,  2010  and  2009,  Igene
recorded  marketing and selling expense in the amount of $216,327
and  $80,274, respectively, an increase of $136,053 or 169%.  For
the  six  months  ended  June 30, 2010 and 2009,  Igene  recorded
marketing  and  selling  expense in the amount  of  $351,906  and
$186,384, respectively, an increase of $165,522 or 89%.  With the
creation  of  the  ADM JV, responsibility for the  marketing  and
selling function is being assumed by the Joint Venture.  With the
transfer  of sales activity to the ADM JV, portions of the  Igene
sales and marketing operations are being discontinued.  This  has
pushed  these  costs  to the first half of the  year  and  it  is
expected  to normalize throughout the year.  It is expected  that
marketing  and  selling will continue to fluctuate as  activities
continue in order to maintain customer base through the period of
development.  However, no assurances can be made with regard to a
new source of production or the maintenance of the customer base.
Expenses  are expected to be funded by the ADM JV and cash  flows
from  operations,  to  the extent available  for  such  purposes.
During  the  six  months  ended June 30, 2010,  $200,245  of  the
marketing cost was reimbursed by the ADM JV.

Research, development and pilot plant expenses

     For  the  quarters  ended  June 30,  2010  and  2009,  Igene
recorded research and development costs in the amount of $513,096
and   $417,340,   respectively,  an  increase   of   $95,756   or
approximately 23%.  For the six months ended June  30,  2010  and
2009, Igene recorded research and development costs in the amount
of  $982,806 and $878,515, respectively, an increase of  $104,291
or  12%.  Research and development costs have increased as  Igene
works  to develop new uses for its product.  It is expected these
costs will remain at these current increased levels in support of
increasing  the  efficiency of the manufacturing process  through
experimentation  in the Company's pilot plant, developing  higher
yielding strains of yeast and other improvements in the Company's
Aquasta(R)  technology  as it prepares to begin production in the
new facility.  Expenses are expected to be funded by the new  ADM
JV  and  cash  flows from operations, to the extent available for
such purposes.  During the six month period ended March 31, 2010,
all of  the research and development expenditures were reimbursed
by the ADM JV.

General and administrative expenses

     General  and  administrative expenses for the quarter  ended
June 30, 2010 and 2009 were $79,291 and $249,503, respectively, a
decrease of $170,212 or 68%.  General and administrative expenses
for the six months ended June 30, 2010 and 2009 were $152,568 and
$482,159  respectively,  a decrease of $329,591  or  68%.   These
costs are expected to remain at such reduced levels.  As the  ADM
JV continues to develop, a greater amount of the time, effort and
processes will take place within the ADM JV and, as such, the ADM
JV  will continue to absorbe portions of the operation no  longer
required  at  Igene.  Additionally, Igene and  the  ADM  JV  have
worked  to  reduce overhead expenses and direct such  savings  to
research  and  development efforts.   A  small  portion  of  this
remaining  expense is expected to be covered by the ADM  JV,  but
the  majority  of these expenses will need to be funded  by  cash
flows from operations, to the extent available for such purposes.
$30,000   of  the  2010  general  and  administrative  cost   was
reimbursed by the ADM JV.

Expenses reimbursed by ADM Joint Venture

     As part of the ADM JV agreement, a portion of costs incurred
by  Igene related to production, research and development,  those
related  to the  marketing  of  Aquasta(R),  as  well  as   those
expenditures  related to general and administrative functions  of
the  ADM  JV  are  considered expenditures  of  the  ADM  JV  and
therefore  will be reimbursed by the ADM JV.  For the six  months
ended  June  30,  2010, the ADM JV reimbursed  Igene  $1,213,051,
$982,806 for research and development expenditures, $200,245  for
marketing    expenditures,   and   $30,000   for   general    and
administrative expenditures.





                              -10-

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


Other Income

       Igene  had other income for the six months ended June  30,
2009  of  $1,026,642.  Of this amount, $1,025,741 is  a  one-time
occurrence  related to a liability recorded  in  a  prior  period
related to the termination of the Joint Venture with Tate & Lyle.
On February 26, 2009, Igene signed a settlement agreement of past
obligations and made a final payment to Tate & Lyle in the amount
of  $714,227.   At  the termination of the Joint  Venture,  Igene
recorded liabilities of $890,000 for payments of past payables of
the  Joint  Venture  as  well as $51,000  for  costs  related  to
collection of receivables of the Joint Venture.  The expense  was
recorded  when it was thought Igene could be liable for  it,  but
with  the exception of the $5,000,000 liability related to future
revenue  (see  Note 2), Igene has satisfied its debt  to  Tate  &
Lyle.

Interest expense

     Interest  expense for the quarters ended June 30,  2010  and
2009 was $2,935 and $9,030, respectively, a decrease of $6,095 or
67%.   For  the six months ended June 30, 2010 and 2009, interest
expense  was  $11,101 and $17,901, respectively,  a  decrease  of
$6,800 or 38%.  This interest expense (net of interest income) is
attributable  Igene's long-term financing from its directors  and
other  stockholders  and  interest on  Igene's  subordinated  and
convertible debentures.

Net loss and basic and diluted net loss per common share

      As   a  result  of  the  foregoing,  the  Company  recorded
comprehensive losses of $813,141 and $547,822, respectively,  for
the  quarters ended June 30, 2010 and 2009, which is an  increase
in  the loss of $265,319 or 48%.  This represents a loss of $0.00
and  $0.00  per  basic and diluted common share in  each  of  the
quarters ended June 30, 2010 and 2009, respectively.  The Company
reported  comprehensive  loss  of  $1,368,548  and  comprehensive
income  of $196,918, respectively, for the six months ended  June
30,  2010 and 2009.  This represents loss of $0.00 and income  of
$0.00  per  basic  and diluted common share in each  of  the  six
months  ended June 30, 2010 and 2009, respectively.  The weighted
average   number  of  shares  of  common  stock  outstanding   of
1,565,404,297  and 1,518,503,841 for the quarter ended  June  30,
2010  and 2009  respectively, has increased by 46,900,456 shares.
The weighted average number of shares of common stock outstanding
of  1,563,123,082 and 1,518,503,841 for the six months ended June
30,  2010  and  2009  respectively, has increased  by  44,619,241
shares.  The increase in outstanding shares resulted mainly  from
the  shares issued in connection with the repurchase of  employee
stock options.


Financial Position

     During  the  six  months ended June 30, 2010  and  2009,  in
addition  to  the  matters  previously discussed,  the  following
actions   also   materially  affected  the  Company's   financial
position:

   o  For 2010 most operating activity occurred at the ADM JV and
      effects  to  cash  were minimal, cash position decreased by
      $317,841 during  the  six  months  ended June 30, 2010, the
      leading  factor  in  this  was  advances  to  the ADM JV of
      $244,844,  decreases  in  prepaid expenses and other assets
      and increases in accounts  payable  combined to offset this
      by $69,620; and

   o  Decreases  in  inventory  for the six months ended June 30,
      2009  of  $2,358,892 were a source of cash, offset by funds
      used to   decrease accounts payable and accrued expenses by
      $661,078, and increases of accounts receivable of $181,201;
      and

   o  The  carrying  value  of  redeemable  preferred  stock  was
      increased  and  interest  expense recorded in the amount of
      $3,562   and   $3,546  in  2010  and  2009,   respectively,
      reflecting  cumulative   unpaid  dividends  on   redeemable
      preferred stock.



                                 -11-

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

     In  December 1988, as part of an overall effort  to  contain
costs  and  conserve working capital, Igene 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, 2010, total dividends  in  arrears  on
Igene's preferred stock total $154,985 ($13.92 per share) and are
included in the carrying value of the redeemable preferred stock.

Liquidity and Capital Resources

    Historically,  Igene  has  been funded  primarily  by  equity
contributions  and  loans from its stockholders.   At   June  30,
2010,  Igene had working capital of $882,525, and cash  and  cash
equivalents of $977,381.

    Cash  used  by  operating  activities  during  the  six-month
period  ended June 30, 2010 equaled $302,440 as compared to  cash
provided  by  operating activities of $168,038 for the  six-month
period ended June 30, 2009.

    Cash  used  by  investing  activities  during  the  six-month
period  ended June 30, 2010 and 2009 equaled $7,112 and $195,863,
respectively, resulting from the purchase and sale  of  equipment
and advances to the ADM JV.

     No  cash was used or provided by financing activities during
the first six months of 2010 or 2009.

     Over  the  next twelve months, Igene believes it  will  need
additional working capital.  Part of this funding is expected  to
be  received  from  sales  of  Aquasta(R), resulting in increased
cash.   Additional  funding  is  expected  through  the  ADM   JV
reimbursement  of   expenses.   There  will  be  additional delay
between  the  commencement  of  production  and  the  receipt  of
proceeds from any sale of such product.  However, there can be no
assurance that projected cash from sales, or additional  funding,
will be sufficient for Igene to fund its continued operations.

    The   Company   does  not  believe  that  inflation   had   a
significant impact on its operations during the six-month periods
ended June 30, 2010 and 2009.

Off-Balance-Sheet Arrangements
______________________________

    There  have been no material changes in the risks related  to
off-balance-sheet arrangements since the Company's disclosure  in
its  Annual  Report on Form 10-K for the year ended December  31,
2009.


Item 3.   Quantitative and Qualitative Disclosures About Market
Risk

     The  Company  is a smaller reporting company as  defined  by
Rule  12b-2  of the Securities Exchange Act of 1934,  as  amended
(the  "Exchange  Act"),  and  is  not  required  to  provide  the
information required under this item.


                              -12-

            IGENE Biotechnology, Inc. and Subsidiary
                     Controls and Procedures


Item 4.   Controls and Procedures

     We carried out an evaluation, under the supervision and with
the  participation  of  our management, including  our  principal
executive  officer  and  principal  financial  officer,  of   the
effectiveness  of  our  disclosure controls  and  procedures  (as
defined  in  Rules  13a-15(e) and 15d-15(e) of the  Exchange  Act
(defined  below)).   Based  upon that evaluation,  our  principal
executive officer and principal financial officer concluded that,
as  of  the  end  of  the  period covered  in  this  report,  our
disclosure controls and procedures were not effective  to  ensure
that  information required to be disclosed in reports filed under
the  Securities  Exchange Act of 1934, as amended (the  "Exchange
Act") is recorded, processed, summarized and reported within  the
required time periods and is accumulated and communicated to  our
management,   including  our  principal  executive  officer   and
principal  financial  officer, as  appropriate  to  allow  timely
decisions regarding required disclosure.

     Our  management,  including our principal executive  officer
and  principal  financial  officer,  does  not  expect  that  our
disclosure controls and procedures or our internal controls  will
guaranty the prevention of any error or fraud.  A control system,
no  matter  how  well conceived and operated,  can  provide  only
reasonable,  not absolute, assurance that the objectives  of  the
control system are met.  Further, the design of a control  system
must reflect the fact that there are resource constraints and the
benefits  of  controls  must  be  considered  relative  to  their
costs.   Due to the inherent limitations in all control  systems,
no evaluation of controls can provide absolute assurance that all
control  issues  and  instances  of  fraud,  if  any,  have  been
detected.  To  address  the  material  weaknesses,  we  performed
additional  analysis  and  other post-closing  procedures  in  an
effort  to ensure our consolidated financial statements  included
in this annual report have been prepared in accordance with GAAP.
Accordingly,  management believes that the  financial  statements
included  in this report fairly present in all material  respects
our financial condition, results of operations and cash flows for
the periods presented.

     Igene  is  undertaking to improve its internal control  over
financial  reporting  and  improve its  disclosure  controls  and
procedures.   As  of  December 31 2009,  we  had  identified  the
following  material weaknesses which still exist as of  June  30,
2010 and through the date of this report.

1. As  of  June  30 2010, we did not maintain effective  controls
   over  the  control  environment.  Specifically,  we  have  not
   formally  adopted  a  written code  of  business  conduct  and
   ethics  that  governs  the Company's employees,  officers  and
   directors.    Additionally,  we   have   not   developed   and
   effectively  communicated  to  our  employees  its  accounting
   policies  and  procedures.  This has resulted in  inconsistent
   practices.    Further,  the  Board  of  Directors   does   not
   currently  have  any  independent  members  and  no   director
   qualifies  as an independent audit committee financial  expert
   as  defined  in Item 407(d)(5)(ii) of Regulation  S-B.   Since
   these  entity  level programs have a pervasive  effect  across
   the   organization,  management  has  determined  that   these
   circumstances constitute a material weakness.


2. As  of  June 30, 2010, we did not maintain effective  controls
   over  financial statement disclosure.  Specifically,  controls
   were  not designed and in place to ensure that all disclosures
   required   were   originally  addressed   in   our   financial
   statements.    Accordingly,  management  has  determined  that
   this control deficiency constitutes a material weakness.


3. As  of  June 30, 2010, we did not maintain effective  controls
   over  equity  transactions.  Specifically, controls  were  not
   designed and in place to ensure that equity transactions  were
   properly  reflected.  Accordingly, management  has  determined
   that this control deficiency constitutes a material weakness.







                              -13-

            IGENE Biotechnology, Inc. and Subsidiary
                             PART II
                        OTHER INFORMATION

Item 1.   Legal Proceedings

     There  are  no material pending legal proceedings  to  which
Igene  is  a  party  or  to which any of Igene's  properties  are
subject;  nor are there pending material bankruptcy, receivership
or  similar  proceedings with respect to  Igene;  nor  are  there
material proceedings pending or known to be contemplated  by  any
governmental authority; nor are there material proceedings  known
to  Igene,  pending  or  contemplated, in which  any  of  Igene's
directors,   officers,  affiliates  or  any  principal   security
holders, or any associate of any of the foregoing, is a party  or
has an interest adverse to us.

Item 1A.  Risk Factors

     The  Company  is a smaller reporting company as  defined  by
Rule 12b-2 of the Exchange Act and is not required to provide the
information required under this item.

Item 2.   Unregistered  Sales  of  Equity  Securities  and Use of
          Proceeds

     None.

Item 3.   Defaults Upon Senior Securities

     In  December 1988, as part of an overall effort  to  contain
costs  and  conserve working capital, Igene 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, 2010, total dividends  in  arrears  on
Igene's preferred stock total $154,985 ($13.92 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

     None.

Item 5.   Other Information

     None.




                              -14-

Item 6.  Exhibits

EXHIBIT DESCRIPTION
NO.
3.1     Articles  of  Incorporation of  the  Registrant,  as
        amended   as  of  November  17,  1997,  constituting
        Exhibit  3.1 to the Registration Statement No.  333-
        41581  on  Form SB-2 filed with the SEC on  December
        5, 1997, are hereby incorporated by reference.

3.2     Articles  of  Amendment to Articles of Incorporation
        of  the  Registrant, constituting Exhibit 3.1(b)  to
        the Registration Statement No. 333-76616 on Form  S-
        8  filed  with  the  SEC on January  11,  2002,  are
        hereby incorporated by reference.

3.3     By-Laws of the Registrant, constituting Exhibit  3.2
        to the Registration Statement No. 33-5441 on Form S-
        1  filed  with  the SEC on May 6, 1986,  are  hereby
        incorporated by reference.

31.1    Rule  13a-14(a)  or 15d-14(a) Certification  of  the
        Registrant's principal executive officer.*

31.2    Rule  13a-14(a)  or 15d-14(a) Certification  of  the
        Registrant's principal financial officer.*

32.1    Rule  13a-14(b)  or 15d-14(b) Certification  of  the
        Registrant's  principal executive  officer  pursuant
        to  18  U.S.C. Section 1350 as adopted  pursuant  to
        Rule 906 of the Sarbanes-Oxley Act of 2002.*

32.2    Rule  13a-14(b)  or 15d-14(b) Certification  of  the
        Registrant's  principal financial  officer  pursuant
        to  18  U.S.C. Section 1350 as adopted  pursuant  to
        Rule 906 of the Sarbanes-Oxley Act of 2002.*

*Filed herewith.


                              -15-

                           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    August 13, 2010     By  /S/ STEPHEN F. HIU
        _______________         _____________________________________
                                    STEPHEN F. HIU
                                    President
                                    (principal executive officer)




Date    August 13, 2010     By  /S/ EDWARD J. WEISBERGER
                                _____________________________________
                                    EDWARD J. WEISBERGER
                                    Chief Financial Officer
                                    (principal financial officer)




                              -16-