----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| **x** | **Quarterly                Report Pursuant To Section 13 or 15(d) of the Securities Exchange                Act of                1934 for the Quarterly Period Ended June 30,                2007** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**or**

| ** ̈** | **Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 for the Transition Period                from    to** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Commission      File Number 0-10763**

**Atrion        Corporation**

| **Delaware**                                                                    |   | **63-0821819**                                        |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| (State                  or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.                  Employer Identification No.) |

|   | **One                  Allentown Parkway, Allen, Texas**  |   | **75002**                   |   |
|--------|-----------------------------------------------------------|--------|-----------------------------|--------|
|   | (Address                  of Principal Executive Offices) |   | (Zip                  Code) |   |

|   | **(972)                  390-9800**                                         |   |
|--------|-----------------------------------------------------------------------------|--------|
|   | (Registrant’s                  Telephone Number, Including Area Code) |   |

| Large                  accelerated filer   ̈ | Accelerated                  filer x | Non-accelerated                  filer  ̈ |
|------------------------------------------------------------|--------------------------------------|-----------------------------------------------|

| **Title                of Each Class**                     |   | **Number                of Shares Outstanding at****July                13, 2007** |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------|
| **Common                stock, Par Value $0.10 per share** |   | **1,900,467**                                                                      |

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**ATRION      CORPORATION AND SUBSIDIARIES**

**TABLE      OF CONTENTS**

| **PART                I. Financial Information** | **2**                                                                                                                                            |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                                                             |   |
| **Item                1.**                       | Financial                Statements                                                                                                              |   |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                Statements of Income (Unaudited) For the Three                and Six Months Ended  June 30, 2007 and 2006 | 3 |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                Balance Sheets (Unaudited) June 30, 2007 and                December 31, 2006                                        | 4 |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                Statements of Cash Flows (Unaudited) For the                Six Months Ended June 30, 2007 and 2006                  | 5 |
|                                             |                                                                                                                                             |   |
|                                             | Notes                to Consolidated Financial Statements                (Unaudited)                                                             | 6 |
|                                             |                                                                                                                                             |   |
| **Item                2.**                       | Management's                Discussion and Analysis of Financial Condition                and Results of Operations                              | 9 |
|                                             |                                                                                                                                             |   |
| **Item                3**.                       | Quantitative                and Qualitative Disclosures About Market                Risk                                                         | 14 |
|                                             |                                                                                                                                             |   |
| **Item                4.**                       | Controls                and Procedures                                                                                                           | 14 |
|                                             |                                                                                                                                             |   |
| **PART                II. Other Information**    | **15**                                                                                                                                           |
|                                             |                                                                                                                                             |   |
| **Item                4.**                       | Submission                of Matters to a Vote of Security                Holders                                                                | 15 |
|                                             |                                                                                                                                             |   |
| **Item                6.**                       | Exhibits                and Reports on  Form                8-K                                                                        | 15 |
|                                             |                                                                                                                                             |   |
| **SIGNATURES**                                   | **17**                                                                                                                                           |

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***Table            of Contents***

**PART      I**

**FINANCIAL      INFORMATION**

----

***Table            of Contents***

**Item      1. Financial Statements**

**ATRION      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF INCOME**

**(Unaudited)**

|                                                                                           |   | **Three                Months Ended****June                30,** |   |   | **Six                Months Ended****June                30,** |   |
|------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                                                                           |   | **2007**                                                         |   |   | **2006**                                                       |   |   | **2007** |   |   | **2006** |   |
|                                                                                           |   | (in                thousands, except per share amounts)          |   |
| Revenues                                                                                       |   | $                                                                | 23,199 |   |                                                           | $      | 20,849 |   |   | $ | 46,237 |   |   | $ | 40,351 |   |
| Cost                of goods sold                                                              |   |                                                             | 12,880 |   |                                                           |   | 12,076 |   |   |   | 26,258 |   |   |   | 24,230 |   |
| Gross                profit                                                                    |   |                                                             | 10,319 |   |                                                           |   | 8,773 |   |   |   | 19,979 |   |   |   | 16,121 |   |
|                                                                                           |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                             |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Selling                                                                                        |   |                                                             | 1,672  |   |                                                           |   | 1,600 |   |   |   | 3,323 |   |   |   | 3,215 |   |
| General                and administrative                                                      |   |                                                             | 2,471  |   |                                                           |   | 2,348 |   |   |   | 5,088 |   |   |   | 4,352 |   |
| Research                and development                                                        |   |                                                             | 750    |   |                                                           |   | 700 |   |   |   | 1,405 |   |   |   | 1,376 |   |
|                                                                                           |   |                                                             | 4,893  |   |                                                           |   | 4,648 |   |   |   | 9,816 |   |   |   | 8,943 |   |
| Operating                income                                                                |   |                                                             | 5,426  |   |                                                           |   | 4,125 |   |   |   | 10,163 |   |   |   | 7,178 |   |
|                                                                                           |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Other                income:                                                                   |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                 |   |                                                             | 10     |   |                                                           |   | 11 |   |   |   | 20 |   |   |   | 20 |   |
| Interest                expense                                                                |   |                                                             | (77    | )      |                                                           |   | -- |   |   |   | (218 | ) |   |   | -- |   |
| Other                income (expense), net                                                     |   |                                                             | --     |   |                                                           |   | (21 | ) |   |   | -- |   |   |   | (21 | ) |
|                                                                                           |   |                                                             | (67    | )      |                                                           |   | (10 | ) |   |   | (198 | ) |   |   | (1 | ) |
| Income                before provision for income taxes                                        |   |                                                             | 5,359  |   |                                                           |   | 4,115 |   |   |   | 9,965 |   |   |   | 7,177 |   |
| Provision                for income taxes                                                      |   |                                                             | (1,741 | )      |                                                           |   | (1,295 | ) |   |   | (3,210 | ) |   |   | (2,251 | ) |
|                                                                                           |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                               |   |                                                             | 3,618  |   |                                                           |   | 2,820 |   |   |   | 6,755 |   |   |   | 4,926 |   |
| Gain                on disposal of discontinued operations, net of income                taxes |   |                                                             | --     |   |                                                           |   | 165 |   |   |   | -- |   |   |   | 165 |   |
| Net                income                                                                      |   | $                                                                | 3,618  |   |                                                           | $      | 2,985 |   |   | $ | 6,755 |   |   | $ | 5,091 |   |
|                                                                                           |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Income                per basic share:                                                         |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                               |   | $                                                                | 1.92   |   |                                                           | $      | 1.53 |   |   | $ | 3.60 |   |   | $ | 2.68 |   |
| Gain                on disposal of discontinued operations                                     |   |                                                             | --     |   |                                                           |   | 0.09 |   |   |   | -- |   |   |   | 0.09 |   |
|                                                                                           |   | $                                                                | 1.92   |   |                                                           | $      | 1.62 |   |   | $ | 3.60 |   |   | $ | 2.77 |   |
| Weighted                average basic shares outstanding                                       |   |                                                             | 1,883  |   |                                                           |   | 1,845 |   |   |   | 1,878 |   |   |   | 1,840 |   |
| Income                per diluted share:                                                       |   |                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                               |   | $                                                                | 1.83   |   |                                                           | $      | 1.45 |   |   | $ | 3.42 |   |   | $ | 2.53 |   |
| Gain                on disposal of discontinued operations                                     |   |                                                             | --     |   |                                                           |   | 0.08 |   |   |   | -- |   |   |   | 0.08 |   |
|                                                                                           |   | $                                                                | 1.83   |   |                                                           | $      | 1.53 |   |   | $ | 3.42 |   |   | $ | 2.61 |   |
| Weighted                average diluted shares outstanding                                     |   |                                                             | 1,978  |   |                                                           |   | 1,949 |   |   |   | 1,977 |   |   |   | 1,947 |   |
| Dividends                per common share                                                      |   | $                                                                | 0.20   |   |                                                           | $      | 0.17 |   |   | $ | 0.40 |   |   | $ | 0.34 |   |

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***Table          of Contents***

**ATRION        CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        BALANCE SHEETS**

**(in        thousands)**

| **Assets**                                                                                                                                 |   | **June                  30,****2007****(unaudited)** |    |   | **December                  31,****2006****(unaudited)** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|--------|----------------------------------------------------------|--------|
| Current                  assets:                                                                                                           |   |                                                 |    |   |                                                     |   |
| Cash                  and cash equivalents                                                                                                 |   | $                                                    | 285     |   |                                                     | $      | 333 |   |
| Accounts                  receivable                                                                                                       |   |                                                 | 11,568  |   |                                                     |   | 10,542 |   |
| Inventories                                                                                                                                |   |                                                 | 16,975  |   |                                                     |   | 17,115 |   |
| Prepaid                  expenses                                                                                                          |   |                                                 | 1,227   |   |                                                     |   | 1,530 |   |
| Other                                                                                                                                      |   |                                                 | 1,138   |   |                                                     |   | 1,138 |   |
|                                                                                                                                       |   |                                                 | 31,193  |   |                                                     |   | 30,658 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
| Property,                  plant and equipment                                                                                             |   |                                                 | 85,654  |   |                                                     |   | 82,536 |   |
| Less                  accumulated depreciation and amortization                                                                            |   |                                                 | 32,970  |   |                                                     |   | 31,094 |   |
|                                                                                                                                       |   |                                                 | 52,684  |   |                                                     |   | 51,442 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
| Other                  assets and deferred charges:                                                                                        |   |                                                 |    |   |                                                     |   |   |   |
| Patents                                                                                                                                    |   |                                                 | 2,108   |   |                                                     |   | 2,264 |   |
| Goodwill                                                                                                                                   |   |                                                 | 9,730   |   |                                                     |   | 9,730 |   |
| Other                                                                                                                                      |   |                                                 | 1,713   |   |                                                     |   | 1,678 |   |
|                                                                                                                                       |   |                                                 | 13,551  |   |                                                     |   | 13,672 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
|                                                                                                                                       |   | $                                                    | 97,428  |   |                                                     | $      | 95,772 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
| **Liabilities                  and Stockholders’ Equity**                                                                            |   |                                                 |    |   |                                                     |   |   |   |
| Current                  liabilities:                                                                                                      |   |                                                 |    |   |                                                     |   |   |   |
| Accounts                  payable and accrued liabilities                                                                                  |   | $                                                    | 6,326   |   |                                                     | $      | 6,041 |   |
| Accrued                  income and other taxes                                                                                            |   |                                                 | 521     |   |                                                     |   | 882 |   |
|                                                                                                                                       |   |                                                 | 6,847   |   |                                                     |   | 6,923 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
| Line                  of credit                                                                                                            |   |                                                 | 4,700   |   |                                                     |   | 11,399 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
| Other                  non-current liabilities                                                                                             |   |                                                 | 7,965   |   |                                                     |   | 6,555 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
| Stockholders’                  equity:                                                                                               |   |                                                 |    |   |                                                     |   |   |   |
| Common                  shares, par value $0.10 per share; authorized 10,000 shares, issued                  3,420                  shares |   |                                                 | 342     |   |                                                     |   | 342 |   |
| Paid-in                  capital                                                                                                           |   |                                                 | 15,098  |   |                                                     |   | 14,140 |   |
| Accumulated                  other comprehensive loss                                                                                      |   |                                                 | (892    | )      |                                                     |   | (892 | ) |
| Retained                  earnings                                                                                                         |   |                                                 | 97,690  |   |                                                     |   | 91,708 |   |
| Treasury                  shares,1,520 at June 30, 2007 and 1,546  at December 31, 2006,                  at cost                |   |                                                 | (34,322 | )      |                                                     |   | (34,403 | ) |
| Total                  stockholders’ equity                                                                                          |   |                                                 | 77,916  |   |                                                     |   | 70,895 |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
|                                                                                                                                       |   |                                                 |    |   |                                                     |   |   |   |
|                                                                                                                                       |   | $                                                    | 97,428  |   |                                                     | $      | 95,772 |   |

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***Table          of Contents***

**ATRION        CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                |   | **Six                  Months Ended****June                  30,** |    |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                                                                |   | **2007**                                                           |    |   | **2006** |   |
|                                                                                                                |   | **(in                  thousands)**                                |    |
| Cash                  flows from operating activities:                                                              |   |                                                               |    |   |   |   |
| Net                  income                                                                                         |   | $                                                                  | 6,755   |   |   | $ | 5,091 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |                                                               |    |   |   |   |   |   |
| Gain                  on disposal of discontinued operations                                                        |   |                                                               | --      |   |   |   | (165 | ) |
| Depreciation                  and amortization                                                                      |   |                                                               | 2,637   |   |   |   | 2,341 |   |
| Deferred                  income taxes                                                                              |   |                                                               | 333     |   |   |   | 105 |   |
| Stock-based                  compensation                                                                           |   |                                                               | 131     |   |   |   | 52 |   |
| Other                                                                                                               |   |                                                               | 35      |   |   |   | -- |   |
|                                                                                                                |   |                                                               | 9,891   |   |   |   | 7,424 |   |
|                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Changes                  in operating assets and liabilities:                                                       |   |                                                               |    |   |   |   |   |   |
| Accounts                  receivable                                                                                |   |                                                               | (1,026  | ) |   |   | (1,620 | ) |
| Inventories                                                                                                         |   |                                                               | 140     |   |   |   | 11 |   |
| Prepaid                  expenses                                                                                   |   |                                                               | 303     |   |   |   | (608 | ) |
| Other                  non-current assets                                                                           |   |                                                               | (35     | ) |   |   | (73 | ) |
| Accounts                  payable and current liabilities                                                           |   |                                                               | 294     |   |   |   | 28 |   |
| Accrued                  income and other taxes                                                                     |   |                                                               | 572     |   |   |   | 440 |   |
| Other                  non-current liabilities                                                                      |   |                                                               | 118     |   |   |   | (16 | ) |
| Net                  cash provided by continuing operations                                                         |   |                                                               | 10,257  |   |   |   | 5,586 |   |
| Net                  cash provided by discontinued operations                                                       |   |                                                               | --      |   |   |   | 165 |   |
|                                                                                                                |   |                                                               | 10,257  |   |   |   | 5,751 |   |
|                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Cash                  flows from investing activities:                                                              |   |                                                               |    |   |   |   |   |   |
| Property,                  plant and equipment additions                                                            |   |                                                               | (3,758  | ) |   |   | (13,939 | ) |
|                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Cash                  flows from financing activities:                                                              |   |                                                               |    |   |   |   |   |   |
| Line                  of credit advances                                                                            |   |                                                               | 13,826  |   |   |   | 21,319 |   |
| Line                  of credit repayments                                                                          |   |                                                               | (20,525 | ) |   |   | (12,847 | ) |
| Exercise                  of stock options                                                                          |   |                                                               | 452     |   |   |   | 948 |   |
| Purchase                  of treasury stock                                                                         |   |                                                               | --      |   |   |   | (1,594 | ) |
| Tax                  benefit related to stock options                                                               |   |                                                               | 456     |   |   |   | 649 |   |
| Dividends                  paid                                                                                     |   |                                                               | (756    | ) |   |   | (627 | ) |
|                                                                                                                |   |                                                               | (6,547  | ) |   |   | 7,848 |   |
|                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Net                  change in cash and cash equivalents                                                            |   |                                                               | (48     | ) |   |   | (340 | ) |
| Cash                  and cash equivalents at beginning of period                                                   |   |                                                               | 333     |   |   |   | 525 |   |
| Cash                  and cash equivalents at end of period                                                         |   | $                                                                  | 285     |   |   | $ | 185 |   |
|                                                                                                                |   |                                                               |    |   |   |   |   |   |
|                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Cash                  paid for:                                                                                     |   |                                                               |    |   |   |   |   |   |
| Interest                  (net of capitalization)                                                                   |   | $                                                                  | 258     |   |   | $ | -- |   |
| Income                  taxes                                                                                       |   | $                                                                  | 1,220   |   |   | $ | 1,195 |   |

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***Table            of            Contents***

**ATRION      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

| **(1)** | **Basis                of Presentation** |
|---------|------------------------------------------|

| **(2)** | **Inventories** |
|---------|-----------------|

|                             |   | **June                30,****2007** |       |   | **December                31,****2006** |   |
|----------------------------------|--------|-------------------------------------|------------|--------|-----------------------------------------|--------|
| Raw                materials     |   | **$**                               | **7,000**  |   |                                    | $      | 7,194 |   |
| Work                in process   |   | ** **                          | **4,170**  |   |                                    |   | 4,084 |   |
| Finished                goods    |   | ** **                          | **5,805**  |   |                                    |   | 5,837 |   |
| Total                inventories |   | **$**                               | **16,975** |   |                                    | $      | 17,115 |   |

| **(3)** | **Income                per share** |
|---------|-------------------------------------|

|                                                                       |   | **Three                    months ended****June                    30,** |   |   | **Six                    months ended****June                    30,** |   |
|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|
|                                                                       |   | **2007**                                                                 |   |   | **2006**                                                               |   |   | **2007** |   |   | **2006** |   |
|                                                                       |   | (in                    thousands, except per share amounts)              |   |
| Income                    from continuing operations                       |   | $                                                                        | 3,618  |   |                                                                   | $      | 2,820 |   |   | $ | 6,755 |   |   | $ | 4,926 |   |
|                                                                       |   |                                                                     |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average basic shares outstanding               |   |                                                                     | 1,883  |   |                                                                   |   | 1,845 |   |   |   | 1,878 |   |   |   | 1,840 |   |
| Add:  Effect                    of dilutive securities (options) |   |                                                                     | 95     |   |                                                                   |   | 104 |   |   |   | 99 |   |   |   | 107 |   |
| Weighted                    average diluted shares outstanding             |   |                                                                     | 1,978  |   |                                                                   |   | 1,949 |   |   |   | 1,977 |   |   |   | 1,947 |   |
|                                                                       |   |                                                                     |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                    per share from continuing operations:          |   |                                                                     |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                      |   |                                                                     | 1.92   |   |                                                                   |   | 1.53 |   |   |   | 3.60 |   |   |   | 2.68 |   |
| Diluted                                                                    |   |                                                                     | 1.83   |   |                                                                   |   | 1.45 |   |   |   | 3.42 |   |   |   | 2.53 |   |

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***Table            of Contents***

**ATRION      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

| **(4)** | **Pension                Benefits** |
|---------|-------------------------------------|

|                                           |   | **Three                Months ended****June                30,** |     |   | **Six                Months ended****June                30,** |   |
|------------------------------------------------|--------|------------------------------------------------------------------|----------|--------|----------------------------------------------------------------|--------|
|                                           |   | **2007**                                                         |     |   | **2006**                                                       |   |   | **2007** |   |   | **2006** |   |
| Service                cost                    |   | **$**                                                            | **65**   |   |                                                           | $      | 69 |   |   | **$** | **130** |   |   | $ | 138 |   |
| Interest                cost                   |   | ** **                                                       | **80**   |   |                                                           |   | 83 |   |   | ** ** | **160** |   |   |   | 166 |   |
| Expected                return on assets       |   | ** **                                                       | **(123** | **)**  |                                                           |   | (111 | ) |   | ** ** | **(246** | **)** |   |   | (222 | ) |
| Prior                service cost amortization |   | ** **                                                       | **(9**   | **)**  |                                                           |   | (9 | ) |   | ** ** | **(18** | **)** |   |   | (18 | ) |
| Actuarial                loss                  |   | ** **                                                       | **15**   |   |                                                           |   | 29 |   |   | ** ** | **30** |   |   |   | 58 |   |
|                                           |   |                                                             |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Net                periodic pension cost       |   | **$**                                                            | **28**   |   |                                                           | $      | 61 |   |   | **$** | **56** |   |   | $ | 122 |   |

| **(5)** | **Recent                Accounting Pronouncements** |
|---------|-----------------------------------------------------|

| **(6)** | **Income                Taxes** |
|---------|---------------------------------|

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***Table            of Contents***

**ATRION      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

----

***Table            of Contents***

| **Item                2.** | **Management’s                Discussion and Analysis of Financial Condition and                Results of Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------|

**Overview**

|   | · | Focusing                on customer needs; |
|--------|--------|--------------------------------------------|

|   | · | Expanding                existing product lines and developing new                products; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | Maintaining                a culture of controlling cost; and |
|--------|--------|---------------------------------------------------------------|

|   | · | Preserving                and fostering a collaborative, entrepreneurial management                structure. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

**Results      for the three months ended June 30, 2007**

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***Table            of Contents***

|                          |   | Three                Months endedJune                30, |   |
|-------------------------------|--------|----------------------------------------------------------|--------|
|                          |   | 2007                                                     |   |   | 2006 |   |
|                          |   |                                                     |   |   |   |   |
| Fluid                Delivery |   | $                                                        | 7,533  |   |   | $ | 6,623 |   |
| Cardiovascular                |   |                                                     | 6,009  |   |   |   | 5,717 |   |
| Ophthalmology                 |   |                                                     | 4,863  |   |   |   | 3,571 |   |
| Other                         |   |                                                     | 4,794  |   |   |   | 4,938 |   |
| Total                         |   | $                                                        | 23,199 |   |   | $ | 20,849 |   |

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***Table            of Contents***

**Results      for the six months ended June 30, 2007**

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***Table            of Contents***

|                          |   | Six                Months endedJune                30, |   |
|-------------------------------|--------|--------------------------------------------------------|--------|
|                          |   | 2007                                                   |   |   | 2006 |   |
|                          |   |                                                   |   |   |   |   |
| Fluid                Delivery |   | $                                                      | 14,747 |   |   | $ | 13,059 |   |
| Cardiovascular                |   |                                                   | 12,061 |   |   |   | 11,440 |   |
| Ophthalmology                 |   |                                                   | 9,517  |   |   |   | 6,384 |   |
| Other                         |   |                                                   | 9,912  |   |   |   | 9,468 |   |
| Total                         |   | $                                                      | 46,237 |   |   | $ | 40,351 |   |

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***Table            of Contents***

**Liquidity      and Capital Resources**

**Forward-Looking      Statements**

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***Table            of Contents***

| **Item                3.** | **Quantitative                and Qualitative Disclosures About Market                Risk** |
|----------------------------|----------------------------------------------------------------------------------------------|

| **Item                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

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***Table            of Contents***

**PART      II**

**OTHER      INFORMATION**

| **ITEM                4.** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS** |
|----------------------------|---------------------------------------------------------------------------------------|

| **Nominee**                         |   | **Votes                  For** |   | **Votes                  Withheld** |
|-------------------------------------|--------|--------------------------------|--------|-------------------------------------|
| Roger                  F. Stebbing  |   | 1,673,934                      |   | 46,701                              |
| John                  P. Stupp, Jr. |   | 1,673,084                      |   | 47,551                              |

| **ITEM                6.** | **EXHIBITS                AND REPORTS ON FORM                8-K** |
|----------------------------|--------------------------------------------------------------------|

|   | (a) | Exhibits |
|--------|-----|----------|

** **
** **

** **

10.5

10.6

31.1

31.2

32.1

32.2

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***Table          of Contents***

|   | (b) | Reports                on Form 8-K |
|--------|-----|------------------------------------|

**Notes**

|   | (1) | Incorporated                by reference to Exhibit 4.1 to the Form S-8 of Atrion Corporation                filed                June 27, 2007 (File No.                333-144086). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated                by reference to Exhibit 10.1 to the Form S-8 of Atrion Corporation                filed                June 27, 2007 (File No.                333-144086). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated                by reference to Exhibit 4.1 to the Form S-8 of Atrion Corporation                filed                June 27, 2007 (File No.                333-144085). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Incorporated                by reference to Exhibit 10.1 to the Form S-8 of Atrion Corporation                filed                June 27, 2007 (File No.                333-144085). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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***Table            of Contents***

**SIGNATURES**

| Date:  August                7, 2007 | /s/                Emile A. Battat |
|------------------------------------------------|----------------------------------------------|
|                                           | Emile A. Battat                    |
|                                           | Chairman                and                  |
|                                           | Chief                Executive Officer       |
|                                           |                                         |
|                                           |                                         |
| Date:  August                7, 2007 | /s/                Jeffery Strickland        |
|                                           | Jeffery                Strickland            |
|                                           | Vice                President and            |
|                                           | Chief                Financial Officer       |

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