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



                                    FORM 10-Q

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

  For the Quarter Ended                                    Commission File No.
   September 30,  1997                                          0-15443

                             THERAGENICS CORPORATION
             (Exact name of registrant as specified in its charter)

       Delaware                                        58-1528626
 ----------------------                 ----------------------------------------
(State of incorporation)                (I.R.S. Employer  Identification Number)



         5325 Oakbrook Parkway
           Norcross, Georgia                                        30093
----------------------------------------                     -------------------
(Address of principal executive offices)                          (Zip Code)



Registrant's telephone number, including area code: (770) 381-8338

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

As of November  13, 1997 the  aggregate  market value of the common stock of the
registrant held by  non-affiliates  of the registrant as determined by reference
to the closing price of common Stock as reported on the Nasdaq  National  Market
system, was $654,163,020. As of November 13, 1997 the number of shares of common
stock, $.01 par value, outstanding was 14,536,956.
<PAGE>


                             THERAGENICS CORPORATION

                                TABLE OF CONTENTS


---------------------------------------------------------------------------Page
      PART I  - FINANCIAL INFORMATION:

           ITEM 1.  FINANCIAL STATEMENTS

               Balance Sheets - December 31, 1996 and September 30,
               1997 (unaudited) .............................................3

               Statements of Earnings for the Three and Nine Months
               Ended September 30, 1996 and 1997 (unaudited) ................5

               Statements of Cash Flows for the Three and Nine Months
               Ended September 30, 1996 and 1997 (unaudited).................6

               Statements of Changes in Stockholders' Equity for
               the Nine Months Ended September 30, 1997 (unaudited)..........8

               Notes to Financial Statements.................................9

       ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS..........................10

      PART II - OTHER INFORMATION

      ITEM 2.  EXHIBITS AND REPORTS ON FORM 8-K.............................13

      SIGNATURE.............................................................14

<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

                             THERAGENICS CORPORATION
                                 BALANCE SHEETS
                    DECEMBER 31, 1996 AND SEPTEMBER 30, 1997

                                     ASSETS

<TABLE>
<CAPTION>
                                             December 31,        September 30,
                                                1996                 1997
                                          ----------------     ----------------
                                                                   (Unaudited)
  <S>                                     <C>                 <C>

  CURRENT ASSETS
     Cash and short-term investments         $  2,986,123        $ 35,428,093
     Trade Accounts Receivable (Note C)         2,258,936           6,155,777
     Inventories                                  229,298             468,680
     Prepaid expenses and other
       current assets                             133,625             268,857
                                          ----------------    ----------------
           Total current assets                 5,607,982          42,321,407

    PROPERTY AND EQUIPMENT
     Building                                   3,333,728           3,333,728
     Leasehold Improvement                        138,978             138,978
     Machinery and equipment                   11,522,064          14,660,908
     Office furniture and equipment                65,057              66,464
                                          ----------------    ----------------
                                               15,059,827          18,200,078
     Less accumulated depreciation
      and amortization                         (3,237,684)         (4,405,241)
                                          ----------------    ----------------

     Land                                         525,372             525,754
     Construction in progress (Note D)          5,238,056           9,603,719
                                          ----------------    ----------------
          Net property and equipment           17,585,571          23,924,310

    OTHER ASSETS
     Deferred Tax Asset                           360,000                  --
     Patent Costs                                  80,685              74,048
     Other                                         55,183               6,424
                                          ----------------    ----------------
          Total other assets                      495,868              80,472
                                          ----------------    ----------------


    Total assets                             $ 23,689,421        $ 66,326,189
                                          ================    ================

</TABLE>


<PAGE>



                             THERAGENICS CORPORATION

                                 BALANCE SHEETS
                                   (Continued)

                    DECEMBER 31, 1996 AND SEPTEMBER 30, 1997

                      LIABILITIES AND SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                            December 31,          September 30,
                                               1996                   1997
                                         ----------------     ----------------
                                                                  (Unaudited)
     <S>                                  <C>                 <C>
     CURRENT LIABILITIES:
         Current portion of long
           term debt                         $  3,458,436         $        --
         Trade accounts payable                   330,375             294,764
         Accrued salaries, wages,
           and payroll taxes                      459,421             459,163

         Income taxes payable                          --             799,492
         Other current liabilities                 56,677             237,351
                                          ----------------    ----------------
             Total current liabilities          4,304,909           1,790,770


      LONG TERM LIABILITIES:
         Deferred Tax Liability                       --            1,000,000


      SHAREHOLDERS' EQUITY:
         Common stock, $.01 par value,
         50,000,000 shares authorized;
         11,814,278 and 14,503,706 shares
         had been issued as of December 31,
         1996 and September 30, 1997,
         respectively.                            118,143             145,037
         Additional paid-in capital            17,616,560          55,506,667
         Retained earnings                      1,649,809           7,883,715
                                          ----------------    ----------------
             Total stockholders' equity        19,384,512          63,535,419
                                          ----------------    ----------------

      Total liabilities & SH equity          $ 23,689,421        $ 66,326,189
                                          ================    ================
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>
<TABLE>
<CAPTION>

                                                                    THERAGENICS CORPORATION

                                                                    STATEMENTS OF EARNINGS
                                              FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1997
                                                                          (Unaudited)


                                                   Three Months                                         Nine Months
                                                Ended September 30,                                  Ended September 30,
                                              1996                    1997                    1996                      1997
                                              ----                    ----                    ----                      ----
<S>                                  <C>                      <C>                    <C>                        <C>

REVENUES:
    Sales                             $    3,144,297             $  6,992,507           $  8,569,188              $  17,222,364
    Licensing Fees                                --                   25,000                100,000                     75,000
                                     ----------------         ----------------       ----------------           ----------------
                                      $    3,144,297             $  7,017,507           $  8,669,188              $  17,297,364
  COSTS & EXPENSES:
    Cost of sales                            958,030                1,580,207              2,598,640                  4,284,908
    Selling, general, and
      administrative                         721,771                1,179,545              2,185,371                  3,755,651
    Research and development                   1,002                   11,090                  3,177                     45,567
                                     ----------------         ----------------       ----------------           ----------------
                                           1,680,803                2,770,842              4,787,188                  8,086,126
  OTHER INCOME (EXPENSE):
    Interest income                           26,152                  502,970                 98,309                    897,690
    Interest expense                          (9,760)                  (3,893)               (22,429)                   (18,515)
    Other                                        588                      355                ( 6,477)                   (35,726)
                                     ----------------         ----------------       ----------------           ----------------
                                              16,980                  499,432                 69,403                    843,449
  NET EARNINGS BEFORE
    INCOME TAXES                           1,480,474                4,746,097              3,951,403                 10,054,687

    Income tax expense                       562,580                1,803,517              1,501,533                  3,820,781

  NET EARNINGS                               917,894                2,942,580              2,449,870                  6,233,906

  NET EARNINGS PER COMMON
  SHARE (Note B)                      $          .07             $        .20           $        .20              $         .44

  WEIGHTED AVERAGE SHARES                 12,298,440               15,063,301             12,220,313                 14,098,168
</TABLE>

  The accompanying notes are an integral part of these statements.

<PAGE>


<TABLE>
<CAPTION>

                                                                    THERAGENICS CORPORATION
                                                                    STATEMENTS OF CASH FLOWS
                                               FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1997
                                                                          (Unaudited)


                                                              Three Months                                    Nine Months
                                                           Ended September 30,                            Ended September 30,
                                                     ---------------------------------            ---------------------------------
                                                           1996               1997                      1996              1997
                                                           ----               ----                      ----              ----
  <S>                                               <C>                   <C>                       <C>              <C>

  CASH FLOWS FROM OPERATING ACTIVITIES:
      Net Earnings                                  $   917,894           $ 2,942,580               $ 2,449,870      $ 6,233,906

      Adjustments to reconcile net earnings to
      net cash provided by operating
      activities:

         Depreciation and amortization                  228,089              398,058                    672,707        1,167,557
         Deferred tax expense                           512,370              465,000                    938,437        1,360,000

      Change in assets and liabilities:
         Accounts receivable                           (436,172)          (1,771,189)                  (833,587)      (3,896,841)
         Inventories                                   ( 27,700)            ( 55,451)                  ( 28,392)        (239,381)
         Prepaid expenses and
            other current assets                         40,375             ( 73,424)                  (  1,804)        (135,232)
         Other assets                                     9,303                   --                      5,574               --
         Trade accounts payable                        (454,360)            (478,131)                  ( 97,900)        ( 35,611)
         Accrued salaries, wages and payroll taxes       41,193               72,844                     46,081         (    258)
         Income taxes payable                                --               67,366                         --          799,492
         Other current liabilities                      181,365                7,572                    206,018          180,673
                                                     -----------          -----------                -----------      -----------
            Total Adjustments                            94,391           (1,367,355)                   907,134         (799,601)
                                                     -----------          -----------                -----------      -----------
      Net cash provided by operating activities     $ 1,012,285           $ 1,575,225               $ 3,357,004      $ 5,434,305
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                                                  THERAGENICS CORPORATION
                                                            STATEMENTS OF CASH FLOWS (continued)
                                   FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1997 (Unaudited)


                                                                Three Months                                  Nine Months
                                                              Ended September 30,                         Ended September 30,
                                                     --------------------------------                ----------------------------
                                                           1996                1997                     1996              1997
                                                           ----                ----                     ----              ----

 <S>                                                <C>                  <C>                        <C>              <C>
 CASH FLOWS FROM INVESTING ACTIVITIES:
         Purchases and construction of property
           and equipment                            $(1,897,771)         $(3,043,095)               $ (5,614,52)     $(7,506,296)
         Patent cost                                         --                2,212                         --            6,637
                                                     -----------          -----------                -----------      -----------
      Net cash provided/(used by investing
      activities                                     (1,897,771)          (3,040,883)                (5,614,520)      (7,499,659)

      CASH FLOWS FROM FINANCING ACTIVITIES:
        Repayment of term loan                         (129,042)                  --                   (379,247)              --
        Net borrowing (repayment) of
            revolving line of credit                         --                   --                         --       (3,458,436)
        Exercise of stock options and
            warrants (net)                              238,210              551,652                  1,082,599          899,703
        Secondary stock offering (net)                       --                   --                         --       32,017,298
            Medical, Inc. (Johnson & Johnson
            Development Corp.)                               --                   --                         --        5,000,000
        Debt Issue Costs                                     --                   --                         --           48,759

      Net cash provided/(used) by financing
      activities                                        109,168              551,652                    703,352       34,507,324
                                                     -----------          -----------                -----------      -----------
      NET INCREASE IN CASH AND
      SHORT-TERM INVESTMENTS                            776,318             (914,006)                (1,554,164)      32,441,970

      CASH AND SHORT-TERM INVESTMENTS
      AT BEGINNING OF PERIOD                          2,488,492           36,342,099                  3,266,338        2,986,123
                                                     -----------          -----------                -----------      -----------

      CASH AND SHORT-TERM INVESTMENTS
      AT END OF PERIOD                              $ 1,712,174          $35,428,093                $ 1,712,174      $35,428,093
                                                    ============         ============               ============     ============
</TABLE>

      The accompanying notes are an integral part of these statements.

<PAGE>

<TABLE>
<CAPTION>

                                                                   THERAGENICS CORPORATION

                                                        STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                                        FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
                                                                         (Unaudited)


                                               Common Stock
                                    --------------------------------    Additional
                                        Number of      Par Value         Paid-in           Retained
                                         shares          $.01            Capital           Earnings          Total
                                    ---------------  --------------  -----------------  --------------- ---------------
<S>                                 <C>             <C>              <C>                <C>             <C>

BALANCE, December 31, 1996            11,814,278      $ 118,143       $ 17,616,560        $ 1,649,809     $ 19,384,512

Exercise of stock options                134,975          1,350            427,063                             428,413
Secondary stock offering (net)         2,300,000         23,000         31,994,298                          32,017,298
Johnson & Johnson Development
   Corp. stock purchase                  254,453          2,544          4,997,456                           5,000,000
Income tax benefit from stock
  options exercised                                                        471,290                             471,290

Net earnings for this period                                                                 6,233,906       6,233,906
                                    --------------- ---------------  -----------------  --------------- ---------------

BALANCE, September 30, 1997           14,503,706       $ 145,037      $ 55,506,667         $ 7,883,715    $ 63,535,419
                                    =============== ===============  =================  =============== ===============
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>


                             THERAGENICS CORPORATION

                          NOTES TO FINANCIAL STATEMENTS

                               September 30, 1997
                                   (Unaudited)



NOTE A - BASIS OF PRESENTATION

         The interim financial  statements included herein have been prepared by
         the Company  without audit.  These  statements  reflect all adjustments
         which are, in the opinion of  management,  necessary to present  fairly
         the  financial  position as of September  30, 1997,  and the results of
         operations and cash flows for the three and nine months ended September
         30,  1996 and 1997,  and  changes in  shareholders  equity for the nine
         months ended  September 30, 1997. All such  adjustments are of a normal
         recurring nature. Certain information and footnote disclosures normally
         included in financial  statements prepared in accordance with generally
         accepted  accounting  principles  have been  condensed or omitted.  The
         Company  believes  that  the  disclosures  are  adequate  to  make  the
         information  presented  not  misleading.  It is  suggested  that  these
         financial  statements and notes be read in conjunction with the audited
         financial  statements  and notes for the year ended  December 31, 1996,
         included in the Form 10-K filed by the Company.

NOTE B - NEW ACCOUNTING PRONOUNCEMENT

         The  financial   Accounting  Standards  Board  (FASB)  has  issued  the
         following Statements of Financial Accounting Standards (SFAS):

         SFAS  128,  Earnings  Per  Share,  which  is  effective  for  financial
         statements for periods ending after December 15, 1997. The new standard
         eliminates  primary and fully  diluted  earnings per share and requires
         presentation  of basic and diluted  earnings  per share  together  with
         disclosure of how the per share amounts were computed.

         SFAS 129,  Disclosure of Information about Capital Structure,  which is
         effective for financial  statements  for periods  ending after December
         15, 1997. SFAS 129 requires  disclosure of certain  information about a
         company's securities.

         SFAS 130, Reporting Comprehensive Income, which is effective for fiscal
         years beginning after December 15, 1997. SFAS 130 requires companies to
         include  details  about  comprehensive   income  that  arise  during  a
         reporting  period.  Comprehensive  income includes  revenue,  expenses,
         gains and losses  that  bypass the income  statement  and are  reported
         directly in a separate component of equity.

         SFAS 131,  Disclosures  about  Segments  of an  Enterprise  and Related
         Information,  which is effective for financial  statements  for periods
         beginning  after  December  15, 1997.  SFAS 131  requires  companies to
         report  information  about an  entity's  different  types  of  business
         activities  and  the  different  economic   environments  in  which  it
         operates, referred to as operating segments.

         Management  does not expect the adoption of these new standards to have
         a material  impact on the Company's  results of operations or financial
         condition.

NOTE C - SIGNIFICANT CUSTOMERS

         Sales to Indigo Medical, Inc. represented 29% and 72% of total sales 
         for the nine and three months ended September 30,  1997, respectively. 
         Additionally, approximately 76% of accounts receivable were from Indigo
         at September 30, 1997.

NOTE D - HEDGING ACTIVITIES

         The Company enters into foreign exchange forward contracts to hedge the
         price risks associated with equipment purchase commitments  denominated
         in  foreign  currencies.  These  contracts  reduce  currency  risk from
         forward contracts for trading  purposes.  Gains and losses are deferred
         and accounted for as part of the underlying transaction. Deferred gains
         and losses were not significant at September 30, 1997.



<PAGE>




Item 2. -  Management's Discussion and Analysis of Financial Condition and
           ---------------------------------------------------------------
           Results of Operations
           ---------------------


Results of Operations

Revenues - Revenues for the quarter  increased 123% over the same period in 1996
contributing  to a 100%  increase  in year to date  revenues  ($17  million)  as
compared to the first nine months of last year.  As in the first two quarters of
this year,  the  increase  can be  attributed  to an  increase  in the number of
TheraSeed(R)  procedures being performed for the treatment of prostate cancer. A
capacity  constraint  on a competing  I-125  product  was also  believed to have
contributed to the increase in  Theraseed(R)  usage compared to the same periods
in 1996.  Partially  offsetting the increase in unit sales was a decrease in the
average per unit price received by  Theragenics.  This per unit decrease was the
result of the July 22, 1997  transition of sales and marketing  responsibilities
from Theragenics to Indigo Medical, a Johnson and Johnson subsidiary.

The Company's net profit  improved 221% to $2.9 million or $.20 per share in the
third  quarter of 1997,  from  approximately  $918,000 or $.07 per share for the
same period in the 1996.  Year to date  profits  grew 154% to $6.2  million from
$2.45  million with  earnings per share of $.44 versus $.20 in 1996.  Management
believes  strong  demand  for  TheraSeed(R)  will  continue  through  the fourth
quarter.  However,  repeating these exceptional results in upcoming quarters may
be difficult.

Costs  and  Expenses  - Cost of sales for the third  quarter  of 1997  increased
$622,000 or 65% over the third quarter of 1996.  This increase was primarily due
to costs  associated  with the  123%  increase  in  sales  partially  offset  by
economies of scale.  Year to date cost of the sales increased almost 65% or $1.7
million over the same period last year,  reflecting  the 100%  increase in sales
over the same period last year,  which was also partially offset by economies of
scale.

S, G & A expenses for the third quarter of 1997  increased 63% or  approximately
$458,000 over S, G & A expenses for the third quarter of 1996.  Year to date, S,
G & A expenses increased 72% or approximately $1.6 million over expenses for the
same  period  last year.  However,  S, G & A expenses  declined  to 17% of sales
revenue for the third quarter of 1997 and to 22% of year to date sales  revenue,
as  compared to 23% of sales  revenue  for the third  quarter of 1996 and 26% of
sales  revenue for the 1996 year to date.  The number of employees has increased
reflecting the larger scope of the Company's operations while efforts to attract
and retain qualified employees continued. As a result,  compensation and related
expenses  increased  by  approximately  $175,000  for the third  quarter of 1997
compared to the same period in 1996 and by approximately  $606,000 for the first
nine months of 1997 versus the same period last year. Also  contributing to this
increase,  legal and other professional fees increased by approximately $222,000
for the quarter and by approximately  $634,000 year to date. Insurance premiums,
property  taxes and  franchise  taxes  increased by $36,000 in the third quarter
1997 verses third quarter 1996 and $101,000 for 1997 year to date over 1996 year
to date,  reflecting  the higher  asset  values of the Company to be insured and
taxed.  These  increased  expenses  were  partially  offset in the  quarter by a
reduction in sales and  marketing  expenses as a result of transition of many of
those  activities  to  Indigo;  however,  year to  date  expenses  in this  area
increased.

Investments in research and development increased  approximately $10,000 for the
third quarter 1997 versus the third quarter and 1996 while year to date research
and  development  increased  $42,000.  The Company  expects its  investments  in
research and  development to increase in the future as the Company  continues to
explore improvements in existing processes and other areas of opportunity.

Increases in other income and expense for the third  quarter of 1997 and year to
date 1997 reflect interest received from short-term investments.

Liquidity and Capital Resources

The Company had cash,  cash  equivalents  and  short-term  investments  of $35.4
million on  September  30, 1997  compared to $3.0  million on December 31, 1996.
Operations  generated $5.4 million in cash. The following  items  contributed to
this $5.4 million increase.  Net earnings  accounted for $6.2 supplemented by an
increase in income tax payable of $800,000,  and the cash  shielding  effects of
depreciation  and  amortization  and deferred tax expense totaling $2.5 million.
Offsetting  these items were increases in accounts  receivable  ($3.9  million),
inventories ($239,000) and prepaid expenses and other current assets ($135,000).

During the first nine months of 1997, the Company used $6.1 million for progress
payments on the Company's current capacity expansion project and $1.4 million on
other  capital  projects.  This  expansion  project which  management  currently
estimates will cost approximately $28 million includes a manufacturing  facility
and four cyclotrons. Spending on this expansion through the end of September has
been approximately $7.8 million.

Financing   activities   generated  $34.5  million  for  the  Company  in  1997,
representing  $32 million in net  proceeds  from an April 1997  secondary  stock
offering,  $5.0 million as a payment  associated  with the Indigo  marketing and
sales agreement and $.9 million from the exercise of stock options and warrants.
These inflows were offset by repayment of the Company's revolving line of credit
in the amount of $3.5 million.

Management believes existing cash and short-term investments together with funds
generated  from  operations  will be sufficient to meet the Company's  operating
requirements  through 1998. In the event additional financing becomes necessary,
management  may choose to raise those funds  through other forms of financing as
appropriate.

This document contains certain forward-looking  statements within the meaning of
the  private  securities  litigation  reform  act  of  1995  including,  without
limitation,  statements regarding possible benefits associated with the alliance
with Indigo Medical Inc., future costs of sales, S, G & A expenses, research and
development,  cost of capacity  expansion and the  sufficiency  of the Company's
liquidity and capital  resources.  From time to time,  the company may also make
other forward-looking statements relating to such matters as well as anticipated
financial performance, business prospects, technological developments,  research
and development activities and similar matters. These forward-looking statements
are subject to certain risks,  uncertainties and other factors which could cause
actual results to differ  materially  from those  anticipated,  including  risks
associated  with  the  management  of  growth,   government  regulation  of  the
therapeutic  radiological  pharmaceutical  and device  business,  dependence  on
health care professionals, and competition from conventional and newly developed
methods of treating localized cancer.


<PAGE>



PART II - OTHER INFORMATION

Item 6. - Exhibits and Reports on Form  8-K

      (a)  Exhibits

             Exhibit 10 - Marketing and Sales Agreement by and between the
             Company and Indigo Medical, Inc. dated May 30, 1997. *

             Exhibit 27 - Financial Data Schedule

      (b)  Reports on Form 8-K

         No reports on Form 8-K were filed  during the quarter  ended  September
         30, 1997.






     *   Confidential  portions  of  Exhibit  10 have  been  redacted  and filed
         separately with the Securities and Exchange Commission.




<PAGE>





                                    SIGNATURE

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.


                                          REGISTRANT:
                                          THERAGENICS CORPORATION


                                          By: /s/ M. Christine Jacobs
                                          ---------------------------
                                          M. Christine Jacobs
                                          President


                                          PRINCIPAL FINANCIAL OFFICER:


                                           /s/ Bruce W. Smith
                                          --------------------------
                                          Bruce W. Smith
                                          Treasurer and Chief Financial Officer


Dated: November 13, 1997