SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 10549
                             FORM 10-QSB



(Mark One)

[x]  Quarterly report under Section 13 or 15(D) of the
     Securities Exchange Act of 1934

            For the quarterly period ended March 31, 2001

[ ]  Transition report under Section 13 or 15(D) of the Exchange
     Act

     For the transition period from __________ to __________


                   Commission file number 0-15888

                      IGENE Biotechnology, Inc.
   _________________________________________________________________
   (Exact name of Small Business Issuer as Specified in its Charter)


               Maryland                          52-1230461
     _______________________________        ____________________
     (State or Other Jurisdiction of        (I.R.S. Employer
      Incorporation or organization)         Identification No.)

         9110 Red Branch Road, Columbia, Maryland 21045-2024
         ___________________________________________________
              (Address of Principal Executive Offices)

                          (410) 997-2599
          ________________________________________________
          (Issuer's Telephone Number, Including Area Code)

                               None
        ____________________________________________________
        (Former Name, Former Address and Former Fiscal Year,
                    if Changed Since Last Report)


Check  whether the Issuer: (1) filed all reports required to be filed
by  Section 13 or 15(D) of the Exchange Act during the past 12 months
(or  for such shorter period that the registrant was required to file
such  reports), and (2) has been subject to such filing  requirements
for the past 90 days.

Yes    x              No
     _____                _____

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
62,464,915 shares as of May 4, 2001.

Transitional Small Business Disclosure Format (check one):

Yes                   No    x
     _____                _____

<PAGE>
                             FORM 10-QSB
                      IGENE Biotechnology, Inc.


                                INDEX



PART I - FINANCIAL INFORMATION
                                                              Page

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

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

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

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

     Notes to Consolidated Financial Statements ............  11-12

     Management's Discussion and Analysis of Financial
     Conditions and Results of Operations ..................  13-16

PART II - OTHER INFORMATION ................................  17-18

SIGNATURES .................................................  19

<PAGE>

                      IGENE BIOTECHNOLOGY, INC.

             QUARTERLY REPORT UNDER SECTION 13 OR 15(D)

               OF THE SECURITIES EXCHANGE ACT OF 1934

<PAGE>

                               PART I

                        FINANCIAL INFORMATION

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

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

  Cash and cash equivalents                  $   606,305      $   143,572
  Accounts receivable, net                       372,596          316,663
  Inventory                                      957,004          762,432
  Loans receivable                                   ---              ---
  Prepaid expenses and other current assets      159,540          186,002
  Deferred costs, current portion                 74,160           74,160
                                             ____________     ____________

                                               2,169,605        1,482,829

OTHER ASSETS
  Property and equipment, net                    120,714          104,150
  Deferred costs, net of current portion         391,653          420,781
  Other assets                                     6,015            5,861
                                             ____________     ____________

     TOTAL ASSETS                            $ 2,687,987      $ 2,013,621
                                             ============     ============
</TABLE>

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

                               -5-
<PAGE>
<TABLE>
            IGENE Biotechnology, Inc. and Subsidiary
                   Consolidated Balance Sheets
                           (continued)

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

CURRENT LIABILITIES
  Accounts payable and accrued expenses      $   565,690      $   304,432
  Notes payable                                1,414,211          600,000
                                             ____________     ____________

     TOTAL CURRENT LIABILITIES                 1,979,901          904,432
                                             ____________     ____________
LONG-TERM DEBT
  Notes payable                                6,059,959        6,077,300
  Variable rate subordinated debenture         1,500,000        1,500,000
  Lease payable                                   10,998              ---
  Accrued Interest                             1,450,723        1,337,063
                                             ____________     ____________

     TOTAL LIABILITIES                        11,001,581        9,818,795
                                             ____________     ____________

COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK
  Carrying amount of redeemable preferred
     stock, 8% cumulative, convertible,
     voting, series A, $.01 par value per
     share. Redemption value $16.00
     and $15.84, respectively.  Authorized
     1,312,500 shares, issued 26,405 shares      422,480          418,255
                                             ____________     ____________

STOCKHOLDERS' DEFICIT
  Common stock, $.01 par value per share.
     Authorized, 250,000,000 shares;
     issued and outstanding 62,464,915,
     and 62,249,005 shares,
     respectively.                               624,249          622,490
  Additional paid-in capital                  21,423,002       21,411,645
  Deficit                                    (30,783,325)     (30,257,564)
                                             ____________     ____________

     TOTAL STOCKHOLDERS' DEFICIT              (8,736,074)      (8,223,429)
                                             ____________     ____________

     TOTAL LIABILITIES AND
       STOCKHOLDERS' DEFICIT                 $ 2,687,987      $ 2,013,621
                                             ============     ============
</TABLE>

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

                               -6-
<PAGE>
<TABLE>
            IGENE Biotechnology, Inc. and Subsidiary
              Consolidated Statements of Operations
                           (Unaudited)

<CAPTION>
                                                                  Three months ended
                                                             _____________________________
                                                               March 31,        March 31,
                                                                   2001             2000
                                                             ____________     ____________
<S>                                                          <C>              <C>
Sales                                                        $   445,018      $    78,536
Cost of sales                                                    412,119           87,433
                                                             ____________     ____________

   Gross profit (loss)                                            32,899           (8,897)

Selling, General & Administrative expenses
  Marketing and selling                                          144,179           79,141
  Research, development and pilot plant                          107,335           92,609
  General and administrative                                     122,398           84,869
  Litigation expenses                                                ---           11,046
                                                             ____________     ____________

             Total operating expenses                            373,912          267,665
                                                             ____________     ____________

             Operating loss                                     (341,013)        (276,562)
                                                             ____________     ____________

Other income (expense)
  Miscellaneous income                                             3,000              ---
  Interest expense, net of
     interest income of $869 and $3,544, respectively           (187,748)        (173,786)
                                                             ____________     ____________

     Net other income (expense)                                 (184,748)        (173,786)
                                                             ____________     ____________

              Net loss                                       $  (525,761)     $  (450,348)
                                                             ============     ============

              Basic and diluted net loss per common share    $     (0.01)     $     (0.01)
                                                             ============     ============

</TABLE>

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

                               -7-
<PAGE>
<TABLE>
            IGENE Biotechnology, Inc. and Subsidiary
        Consolidated Statements of Stockholders' Deficit
                           (Unaudited)

<CAPTION>
                                                 Redeemable Preferred Stock
                                                     (shares/amount)
                                                 __________________________
<S>                                              <C>           <C>
Balance at December 31, 1999                          26,467   $   402,298

Cumulative undeclared dividends
  on redeemable preferred stock                          ---         4,235

Exercise of employee stock options                       ---           ---

Exercise of warrants                                     ---           ---

Net loss for the three months ended
  March 31, 2000                                         ---           ---
                                                 ____________  ____________

Balance at March 31, 2000                             26,467   $   406,533
                                                 ============  ============

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

Cumulative undeclared dividends
  on redeemable preferred stock                          ---         4,225

Exercise of employee stock options                       ---           ---

Exercise of warrants                                     ---           ---

Net loss for the three months ended
  March 31, 2001                                         ---           ---
                                                 ____________  ____________

Balance at March 31, 2001                             26,405   $   422,480
                                                 ============  ============

</TABLE>

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

                               -8-
<PAGE>
<TABLE>
            IGENE Biotechnology, Inc. and Subsidiary
        Consolidated Statements of Stockholders' Deficit
                     (Unaudited - Continued)
<CAPTION>

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

Cumulative undeclared dividends
  on redeemable preferred stock                ---         ---         (4,235)           ---         (4,235)

Exercise of employee stock options       1,200,000      12,000        108,000            ---        120,000

Exercise of warrants                     3,070,123      30,701        (25,501)           ---          5,200

Net loss for the three months ended
  March 31, 2000                               ---         ---            ---       (450,348)      (450,348)
                                        ___________  __________   ____________  _____________  _____________

Balance at March 31, 2000               51,868,881   $ 518,689    $20,317,168   $(28,452,597)  $ (7,616,740)
                                        ===========  ==========   ============  =============  =============

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

Cumulative undeclared dividends
  on redeemable preferred stock                ---         ---         (4,225)           ---         (4,225)

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

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

Net loss for the three months ended
  March 31, 2001                               ---         ---            ---       (525,761)      (525,761)
                                        ___________  __________   ____________  _____________  _____________

Balance at March 31, 2001               62,424,915   $ 624,249    $21,423,002   $(30,783,325)  $ (8,736,074)
                                        ===========  ==========   ============  =============  =============
</TABLE>

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

                               -9-
<PAGE>
<TABLE>
            IGENE Biotechnology, Inc. and Subsidiary
              Consolidated Statements of Cash Flows
                           (Unaudited)

<CAPTION>

                                                                    Three months ended
                                                                 _________________________
                                                                 March 31,       March 31,
                                                                     2001            2000
                                                                 ___________   ___________
<S>                                                              <C>           <C>
Cash flows from operating activities
   Net loss                                                      $ (525,761)   $ (450,348)
   Adjustments to reconcile net loss to net cash provided
     By operating activities
     Depreciation                                                     5,272        14,247
     Amortization                                                    29,129        10,586
     Interest on debenture paid in shares of common stock            45,000        45,000
     Decrease (increase) in
       Accounts receivable                                          (55,933)       24,267
       Inventory                                                   (194,572)       75,800
       Prepaid expenses and other current assets                     26,307        (4,977)
     Increase (decrease) in
       Accounts payable and accrued expenses                        344,129        67,692
                                                                 ___________   ___________

       Net cash used in operating activities                       (326,429)     (217,733)
                                                                 ___________   ___________
Cash flows from investing activities
   Capital expenditures                                              (3,336)         (979)
                                                                 ___________   ___________

       Net cash used in investing activities                         (3,336)         (979)
                                                                 ___________   ___________
Cash flows from financing activities
   Proceeds from borrowing                                          800,000           ---
   Repayment of long-term debt                                       (7,502)          ---
   Proceeds from exercise of employee stock options                     ---       120,000
                                                                 ___________   ___________

       Net cash provided by financing activities                    792,498       120,000
                                                                 ___________   ___________

       Net decrease in cash and cash equivalents                    462,733       (98,712)

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

       Cash and cash equivalents
         at end of period                                        $  606,305    $  117,585
                                                                 ===========   ===========
Supplementary disclosure and cash flow information
__________________________________________________

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

See Note (2) for non-cash investing and financing activities.

</TABLE>

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

                              -10-
<PAGE>
            IGENE Biotechnology, Inc. and Subsidiary
                  Notes to Financial Statements

(1)  Unaudited consolidated financial statements

     The consolidated financial statements presented herein as of
     March 31, 2001 and 2000 and for the three month periods then
     ended  are  unaudited,  and in the  opinion  of  management,
     include all adjustments (consisting only of normal recurring
     accruals)  necessary  for a fair presentation  of  financial
     position  and  results of operation and  cash  flows.   Such
     financial  statements do not include all of the  information
     and  footnote  disclosures normally  included  in  financial
     statements prepared in accordance with accounting principles
     generally  accepted  in the United States.   This  quarterly
     report  on  Form  10-QSB should be read in conjunction  with
     Igene's  Annual  Report on Form 10-KSB for  the  year  ended
     December 31, 2000.

(2)  Noncash investing and financing activities

     During  the three months ended March 31, 2001 and 2000,  the
     Company  recorded  dividends in  arrears  on  8%  redeemable
     preferred  stock  at $.16 per share aggregating  $4,225  and
     $4,235,  respectively, which has been removed  from  paid-in
     capital and included in the carrying value of the redeemable
     preferred stock.

     During  the  three months ended March 31, 2001, the  Company
     capitalized leased equipment by recording a lease obligation
     payable of $18,500 under a capital lease.

     During  the  three months ended March 31, 2001, the  Company
     cancelled  demand  notes payable of  1,150,000  and  related
     accrued  interest  of $14,211 by issuing new  8%  debentures
     which become convertible into the Company's common stock  on
     the effective date of a sufficient increase in the Company's
     authorized shares.

     During  the  three months ended March 31, 2000,  holders  of
     3,994,500 warrants issued in the March 1998 Rights  Offering
     exercised  those warrants using $5,200 of 8%  notes  payable
     and   utilizing  924,377  warrants  in  cashless  exercises.
     3,070,123 new shares of common stock were issued pursuant to
     these  exercises  of warrants and $5,200 of  8%  notes  were
     cancelled.

(3)  Inventories

     Inventory, stated at lower of cost, on a first-in  first-out
     basis,  or  market value, represents AstaXin(R) manufactured
     and held for sale, as follows:

<TABLE>
<CAPTION>
                                        March 31,   December 31,
                                            2001           2000
                                     ____________   ____________
             <S>                     <C>            <C>
             Raw materials           $       ---    $       ---
             Work-in-process              43,250          4,080
             Finished goods              913,754        758,352
                                     ____________   ____________

                 Total inventory     $   957,004    $   762,432
                                     ============   ============
</TABLE>

(4)  Stockholders' Equity (Deficit)

     At  March  31,  2001  and 2000, 52,810  and  52,934  shares,
     respectively, of authorized but unissued common  stock  were
     reserved   for  issue  upon  conversion  of  the   Company's
     outstanding preferred stock.

     As of March 31, 2001 and 2000, 19,910 and 20,210,166 shares,
     respectively, of authorized but unissued common  stock  were
     reserved  for  exercise pursuant to the  Company's  Employee
     Stock Option Plans.

     As  of  March 31, 2001 and 2000, 160,000 and 280,000 shares,
     respectively, of authorized but unissued common  stock  were
     reserved  for  issuance  for  payment  of  interest  on  the
     variable  rate subordinated debenture and 375,000 shares  of
     authorized  but  unissued  common stock  were  reserved  for
     issuance  upon conversion of the variable rate  subordinated
     debenture.


                              -11-
<PAGE>
            IGENE Biotechnology, Inc. and Subsidiary
           Notes to Consolidated Financial Statements
                           (continued)

(4)  Stockholders' Equity (Deficit) - continued

     As  of  March  31,  2001  and  2000,  13,174,478  shares  of
     authorized but unissued common stock were reserved  for  the
     conversion  of outstanding convertible promissory  notes  in
     the  aggregate amount of $1,082,500 held by directors of the
     Company.

     As  of  March 31, 2001 and 2000, 131,759,345 and 121,759,345
     shares,  respectively,  of authorized  but  unissued  common
     stock   were   reserved  for  the  exercise  of  outstanding
     warrants.

     As  of  March 31, 2001, 20,000,000 shares of authorized  but
     unissued  common  stock were reserved for  issuance  to  the
     Company's contract manufacturer pursuant to the terms of the
     current manufacturing contract.

     As  of  March 31, 2000, 10,000,000 shares of authorized  but
     unissued  common  stock  were  reserved  for  issuance  upon
     receipt of $1,000,000 in funding for operations pursuant  to
     the  commitment of February 8, 2000 by certain directors  of
     the  Company.  An additional 10,000,000 shares of authorized
     but  unissued common stock were reserved for warrants  which
     were to be issued concurrently with this funding.

(5)  Basic and diluted net loss per common share

     Basic  and diluted net loss per common share for the  three-
     month  periods  ended March 31, 2001 and 2000  is  based  on
     62,287,586 and 48,748,245, respectively, of weighted average
     common  shares  outstanding.  For purposes of computing  net
     loss  per  common  share, the amount of net  loss  has  been
     increased  by cumulative undeclared dividends in arrears  on
     preferred stock.  No adjustment has been made for any common
     stock equivalents outstanding because their effects would be
     antidilutive.

(6)  Contingency - Litigation

     Archer   Daniels  Midland,  Inc.  ("ADM")  has  sued  Igene,
     alleging   patent  infringement  and  requesting  injunctive
     relief  as  well as an unspecified amount of  damages  (suit
     filed  July  21, 1997, U.S. District Court, Baltimore,  MD).
     Igene  has filed a $300,450,000 counterclaim concerning  the
     theft of trade secrets (counter claim filed August 4, 1997).
     The  court  denied ADM's request for preliminary  injunctive
     relief.   Mediation efforts during 1999 did not resolve this
     dispute, which has been returned to the court for a judicial
     disposition. Presently, a stay on all discovery  remains  in
     effect  while  a court-appointed expert analyzes  the  yeast
     products  of both parties.  Igene believes that  it  is  not
     probable  that  this dispute will result in  an  unfavorable
     outcome  to  Igene.   Accordingly,  no  liability  has  been
     reflected  in the March 31, 2001 balance sheet. Nonetheless,
     should  ADM prevail, Igene could be liable for damages,  and
     Igene  could also lose the right to use a particular  strain
     of  yeast.  However, Igene expects that this will not affect
     Igene's  ability  to  make and sell its product, AstaXin(R).
     The Company  had expenses of $-0- and $11,046, respectively,
     in  the  three months ended March 31, 2001 and 2000 relating
     to this on-going litigation.

(7)  Subsequent Events

     None.

                              -12-
<PAGE>
            IGENE Biotechnology, Inc. and Subsidiary
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations

CAUTIONARY STATEMENTS FOR PURPOSES OF "SAFE HARBOR PROVISIONS" OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

EXCEPT  FOR  HISTORICAL  FACTS, ALL  MATTERS  DISCUSSED  IN  THIS
REPORT, WHICH ARE FORWARD LOOKING, INVOLVE A HIGH DEGREE OF RISKS
AND  UNCERTAINTIES.   POTENTIAL RISKS AND UNCERTAINTIES  INCLUDE,
BUT   ARE  NOT  LIMITED  TO,  COMPETITIVE  PRESSURES  FROM  OTHER
COMPANIES AND WITHIN THE BIOTECH INDUSTRY, ECONOMIC CONDITIONS IN
THE  COMPANY'S  PRIMARY MARKETS AND OTHER UNCERTAINTIES  DETAILED
FROM  TIME-TO-TIME  IN  THE  COMPANY'S  SECURITIES  AND  EXCHANGE
COMMISSION FILINGS.

CERTAIN   STATEMENTS  IN  THIS  REPORT  SET  FORTH   MANAGEMENT'S
INTENTIONS,  PLANS, BELIEFS, EXPECTATIONS OR PREDICTIONS  OF  THE
FUTURE  BASED ON CURRENT FACTS AND ANALYSES.  ACTUAL RESULTS  MAY
DIFFER MATERIALLY FROM THOSE INDICATED IN SUCH STATEMENTS, DUE TO
A  VARIETY OF FACTORS INCLUDING REDUCED PRODUCT DEMAND, INCREASED
COMPETITION,  GOVERNMENT ACTION, WEATHER  CONDITIONS,  AND  OTHER
FACTORS.

Results of Operations
_____________________

Sales and other revenue
     Sales of AstaXin(R) were $445,018 during the  quarter  ended
March 31, 2001 and sales for the following quarter through May 9,
2001  are  $535,959.  Sales for the quarter ended June 30,  2001,
and  for subsequent quarters are expected to continue to increase
at  this  pace  through 2001. However, there can be no  assurance
that  these, or any increases in sales will occur, or  that  they
will  be material.   The sales of $445,018 for the quarter  ended
March  31,  2001 represent an increase of $366,482, or 467%  over
the sales of $78,536 for the quarter ended March 31, 2000.

    To  better  illustrate  recent trends  in  sales  growth  for
AstaXin(R), the following table shows Sales for each of  the past
five quarters and subsequent to the report date:

<TABLE>
<CAPTION>

    Period                                       Sales
    __________________________________           __________
    <S>                                          <C>
    Quarter ended March 31, 2000                 $  78,536
    Quarter ended June 30, 2000                    180,631
    Quarter ended September 30, 2000               129,575
    Quarter ended December 31, 2000                313,791
    Quarter ended March 31, 2001                   445,018
    April 1, 2001 through May 9, 2001              535,959

</TABLE>

Cost of sales and gross profit (loss)
     Gross Profit on  sales of AstaXin(R)  was  $32,899  for  the
quarter  ended  March  31, 2001.  This is 7%  of  sales  for  the
quarter, and the Company expects  that the level of gross  profit
as a percentage of sales for the quarter ended June 30, 2001 will
increase,  but  can  provide no assurances in  that  regard.  The
Company  plans  to continue to increase production of AstaXin(R),
as  needed,  to  meet  expected  increased  sales  of AstaXin(R).
Presently available  unused  production capacity at the Company's
contract  manufacturer  is  expected  to  be sufficient  to  meet
projected  increases  in  demand through December 2001.  However,
there  can  be  no  assurance  that such increases in demand will
continue  to  occur  or  that  they  will be material.  Demand is
increasing  both  due to seasonal increases in customer usage and
increases in our  market share.   Beyond December 2001, if demand
for AstaXin(R) continues to increase, as the Company expects that
it will, sales and gross profits may be limited by the quantities
of  AstaXin(R)  the Company is able to produce with its presently
available capacity with its contract manufacturer.  To avoid this
limitation,   the  Company   is  presently   investigating  other
additional  sources  of  available production capacity.  However,
there can be no assurance that the  Company  will be able to find
and subsequently be able to utilize  other  additional sources of
production capacity  as  quickly  as  they  are  needed, so sales
and  gross  profit  growth  may be limited beyond   2001,  unless
augmented  by  increases  in   production  efficiency   resulting
from  process  research  and  development.   Presently  available
capacity with the Company's current  contract  manufacturer  will
allow  for an approximate increase of 185%  over  capacity  being
used as of March 31, 2001.

                              -13-
<PAGE>
                    IGENE Biotechnology, Inc.
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations
                           (continued)


Cost of sales and gross profit (loss)
    The  preceding  resulted in cost of  sales  for  the  quarter
ended   March  31,  2001  and  2000  of   $412,019  and  $87,433,
respectively, an increase of  $324,586 or 371%.  Gross profit  on
sales increased by $41,796 to $32,899 for the quarter ended March
31,  2001,  from a gross loss on sales of $8,897 for the  quarter
ended March 31, 2000.

Marketing and selling expenses
     Marketing  expenses  for AstaXin(R) are expected to continue
to  increase,  since  to achieve continuing and increasing sales,
and to enter other markets for AstaXin(R),  the Company will need
to  make  additional marketing efforts both on its own behalf and
with   the   help  of   its  worldwide  marketing  agent,  ProBio
Nutraceuticals.   These  additional  expenses  are expected to be
funded  by gross profits  from  product sales, however, there can
be  no  assurance that  these sales will occur, that they will be
material  or  that  gross  profits  will result.   Marketing  and
selling  expenses  for  the  quarter  ended  March  31, 2001 were
$144,179, an increase  of  $65,038,  or  82%  over  the marketing
and selling  expenses  of $79,141 for the quarter ended March 31,
2000.

Research, development and pilot plant expenses
     Research, development and pilot plant expenses are  expected
to  continue at approximately $40,000 per month in the near  term
in  support  of  increasing the efficiency of  the  manufacturing
process  through  experimentation in the Company's  pilot  plant,
development  of  higher  yielding  strains  of  yeast  and  other
improvements  in  the  Company's AstaXin(R) technology.   For the
first quarter of  2001  and  2000, these expenses  were  $107,335
and  $92,609,  respectively,  an  increase  of  $14,726  or  16%.
However,  there  can  be  no  assurance that such improvements in
efficiency and yield will continue to occur, or that they will be
material.   These  expenses  are  expected to be  funded  through
additional  funding   from   stockholders,   and   by  profitable
operations,  if profitable operations occur.

General and administrative expenses
    General and administrative expenses for the first quarter  of
2001  and  2000  were  $122,398  and  $84,869,  respectively,  an
increase of $37,529 or 44%.  This increase results from increases
in   cost  of  insurance  coverage,   increased  legal  fees  and
administrative  travel  due  to the  expansion  of  the  Company.
General  and administrative expenses are expected to continue  in
the  near  future  at  approximately $40,000  per  month.   These
expenses  are  expected to be funded by additional  funding  from
stockholders,   and  by  profitable  operations,  if   profitable
operations occur.

Litigation expenses
    Management  expects  to ultimately recover  some  portion  of
litigation  expenses  previously incurred, which  are  associated
with  the suit filed against the Company by ADM and the Company's
counterclaim,   through  damage  awards  and  to   preserve   the
commercial product  rights associated with  AstaXin(R).  However,
there  can  be no assurance that the Company will receive  damage
awards or that its rights will be preserved.  Litigation expenses
for the first quarter of 2000 were $11,046.  The Company incurred
no  litigation  expenses for the quarter ended  March  31,  2001.
Expenses  associated with this on-going litigation decreased,  as
compared to the first quarter in the prior year,  since a stay on
all  discovery  has  remained in effect while a  court  appointed
expert  analyzes the yeast product of both parties to  the  suit.
Costs  of litigation will continue in the future at levels  based
on management's continuing assessments of the potential costs and
benefits of various litigation strategies and alternatives. These
expenses  are  expected to be funded by additional  funding  from
stockholders.    A range of reasonably possible losses  from  the
litigation cannot be estimated at this time, and accordingly,  no
liability  has  been  reflected in the March 31,  2001  financial
statements.

Interest expense (net of interest income)
    Interest  expense  (net  of interest income)  for  the  first
quarter of 2001 and 2000 was $187,748 and $173,786, respectively,
an  increase  of  $13,962 or 8%.  This interest expense  (net  of
interest income) was almost entirely composed of interest on  the
Company's  long  term  financing from  its  directors  and  other
stockholders,   and   interest  on  the  Company's   subordinated
debenture  in  both periods, and has increased due  to  increased
financing from directors.


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

Net loss and basic and diluted net loss per common share
    As  a  result  of  the  foregoing, the Company  reported  net
losses  of  $525,761 and $450,348, respectively,  for  the  first
quarters of 2001 and 2000, an increase in the loss of $75,413  or
17%.  This represents a loss of $.01 per basic and diluted common
share  in  each  of  the first quarters of 2001  and  2000.   The
weighted average number of shares of common stock outstanding  of
62,287,586  and 48,748,245, respectively, for the first  quarters
of  2001  and  2000  have increased by 13,539,341  shares.   This
resulted  from the issuance of 80,000 shares in lieu of  interest
payment on a subordinated debenture, the conversion of 62  shares
of  preferred stock into 124 shares of common stock, the issue of
10,000,000  shares of stock to directors and other  investors  in
direct purchases, the issuance of 305,000 shares of common  stock
pursuant  to  the  exercise of employee stock  options,  and  the
issuance  of  170,910  shares of common  stock  pursuant  to  the
exercise of warrants.

Financial Position
__________________

During  the quarters ended March 31, 2001 and 2000, the following
actions   also   materially  affected  the  Company's   financial
position:

o During  the  quarter  ended  March 31, 2001 accounts receivable
  increased  by approximately $96,000 due to increased  sales  of
  AstaXin(R).

o During the  quarter ended March 31, 2001 inventory increased by
  approximately  $275,000  due to expected continued increases in
  sales of AstaXin(R).   The Company sold inventory with a value,
  at lower of cost or market, of $75,800 during the quarter ended
  March 31, 2000.

o The  Company  received  $120,000 in proceeds during the quarter
  ended March 31, 2000 pursuant to the exercise of employee stock
  options, issuing 1,200,000 shares of new common stock.

o During  the  quarter  ended  March 31, 2001 the Company  issued
  $1,414,211  in  8% convertible debentures to directors  of  the
  Company to fund operations.

     In  December 1988, as part of an overall effort  to  contain
costs and conserve working capital, the Company suspended payment
of  the quarterly dividend on its preferred stock.  Resumption of
the  dividend will require significant improvements in cash flow.
Unpaid  dividends cumulate for future payment or addition to  the
liquidation  preference  or redemption  value  of  the  preferred
stock.   As of March 31, 2001, total dividends in arrears on  the
Company's  preferred stock total $211,240 ($8.00 per  share)  and
are  included  in the carrying value of the redeemable  preferred
stock.

Liquidity and Capital Resources
_______________________________

    Historically,  the  Company  has  been  funded  primarily  by
equity contributions and loans from stockholders. As of March 31,
2001  the  Company had working capital of approximately  $190,000
and cash and cash equivalents of $606,305.

    Cash  used by operating activities during the quarters  ended
March  31,  2001  and  2000 amounted to  $326,429  and  $217,733,
respectively.

    Cash  used by investing activities increased by $2,357,  from
$979  for  the  quarter ended March 31, 2000 to  $3,336  for  the
quarter  ended March 31, 2001.  This was as a result of increased
capital expenditures.

    Cash  provided by financing activities increased by  $672,498
from  $120,000 for the quarter ended March 31, 2000  to  $792,498
for  the  quarter  ended  March 31,  2001.  Financing  activities
consisted  principally of $120,000 in proceeds from exercises  of
employee  stock options during the quarter ended March  31,  2000
and  of  $800,000 from the direct purchase of stock by  directors
and other accredited investors during the quarter ended March 31,
2001.


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

Liquidity and Capital Resources (continued)
___________________________________________

    Over  the  next twelve months, the Company believes  it  will
need additional working capital to fund expected expansion.   The
Company  hopes  to  achieve  this  from  profits  from  sales  of
AstaXin(R)  and  additional  stockholder  funding  through direct
purchases  of  stock  and  issuance  of  convertible  securities.
However, there  can be  no  assurance that profits, if any,  from
sales, or additional funding will  be available to the Company to
fund its  continued operations.

    The  Company  does  not  believe that  inflation  has  had  a
significant  impact on its operations during the  quarters  ended
March 31, 2001 and 2000.

                              -16-
<PAGE>
                    IGENE Biotechnology, Inc.
                             PART II
                        OTHER INFORMATION

Item 1.  Legal Proceedings

     Archer   Daniels  Midland,  Inc.  ("ADM")  has  sued  Igene,
     alleging   patent  infringement  and  requesting  injunctive
     relief  as  well as an unspecified amount of  damages  (suit
     filed  July  21, 1997, U.S. District Court, Baltimore,  MD).
     Igene  has filed a $300,450,000 counterclaim concerning  the
     theft of trade secrets (counter claim filed August 4, 1997).
     The  court  denied ADM's request for preliminary  injunctive
     relief.   Mediation efforts during 1999 did not resolve this
     dispute, which has been returned to the court for a judicial
     disposition. Presently, a stay on all discovery  remains  in
     effect  while  a court-appointed expert analyzes  the  yeast
     products  of both parties.  Igene believes that  it  is  not
     probable  that  this dispute will result in  an  unfavorable
     outcome  to  Igene.   Accordingly,  no  liability  has  been
     reflected  in the March 31, 2001 balance sheet. Nonetheless,
     should  ADM prevail, Igene could be liable for damages,  and
     Igene  could also lose the right to use a particular  strain
     of  yeast.  However, Igene expects that this will not affect
     Igene's  ability  to  make and sell its product, AstaXin(R).
     The Company  had expenses of $-0- and $11,046, respectively,
     in  the  three months ended March 31, 2001 and 2000 relating
     to this on-going litigation.

Item 2.  Changes in Securities and Use of Proceeds.

     Limitation on Payment of Dividends
     __________________________________

          Dividends  on  Common  Stock are  currently  prohibited
          because  of  the  preferential  rights  of  holders  of
          Preferred  Stock.   The  Company  has  paid   no   cash
          dividends on its Common Stock in the past and does  not
          intend  to  declare or pay any dividends on its  Common
          stock in the foreseeable future.

     Sales of Unregistered Securities
     ________________________________

          On  March  1,  2001,  Igene  issued  $1,014,211  of  8%
          convertible debenture to certain directors of Igene  in
          exchange  for the cancellation of $1,014,211 of  demand
          notes  payable (including accrued interest of $14,211).
          $600,000  of  these notes were issued during  2000  and
          $400,000  were  issued subsequently.  These  debentures
          will  convert automatically into 10,142,011  shares  of
          Igene's  common  stock  at  $.10  per  share  upon  the
          effective  date of a sufficient increase in the  number
          of  authorized shares of common stock.  These directors
          also  received  10,142,011 warrants to purchase  common
          stock at $.10 per share, which are exercisable upon the
          effective date approval of a sufficient increase in the
          number  of  authorized  shares of  common  stock.   The
          directors resolved to increase the number of authorized
          shares  of common stock to 750,000,000 at the  February
          2001  board meeting.  The shareholders are expected  to
          ratify   this  increase  at  the  shareholders  meeting
          scheduled  in  June 2001, at which time shares  may  be
          issued  upon conversion of these debentures  and  these
          warrants would become exercisable.

          On  March  27,  2001, certain directors of  Igene  also
          committed to provide additional funding in the form  of
          8%  convertible debentures in the amount of  $1,500,000
          over  the next six months.  The initial installment  of
          $400,000  was received in March 2001.  In consideration
          of  this  commitment,  these  directors  also  received
          18,750,000  warrants to purchase common stock  at  $.08
          per  share, exercisable upon the effective date  of  an
          increase  in the number of authorized shares of  common
          stock  (see  above).   These  debentures  will  convert
          automatically into 18,750,000 shares of Igene's  common
          stock  at $.08 per share upon the effective date of  an
          increase  in the number of authorized shares of  common
          stock (see above).

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

                              -17-
<PAGE>
                    IGENE Biotechnology, Inc.
                             PART II
                        OTHER INFORMATION
                           (continued)


     Item 3.  Defaults Upon Senior Securities.

          In  December  1988,  as part of an  overall  effort  to
          contain costs and conserve working capital, the Company
          suspended  payment  of the quarterly  dividend  on  its
          preferred  stock.   Resumption  of  the  dividend  will
          require significant improvements in cash flow.   Unpaid
          dividends  cumulate for future payment or  addition  to
          the  liquidation preference or redemption value of  the
          preferred stock.  As of March 31, 2000, total dividends
          in  arrears  on  the  Company's preferred  stock  total
          $211,240  ($8.00  per share) and are  included  in  the
          carrying value of the redeemable preferred stock.

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

          None

     Item 5.  Other Information

          None

     Item 6.  Exhibits and Reports on Form 8-K

          (a)  Exhibits

               None

          (b)  Reports on Form 8K

               None


                              -18-
<PAGE>
                           SIGNATURES


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



                                   IGENE Biotechnology, Inc.
                                   ______________________________
                                   (Registrant)




     Date   May 15, 2001           By      /s/Stephen F. Hiu
           _________________       ______________________________
                                   Stephen F. Hiu
                                   President and Treasurer
                                   (On  behalf of the Registrant
                                   and as Principal
                                   Financial Officer)



                              -19-