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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



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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
        September 30, 2001
|                                                          |                                                                                                         
|[   ]                                                     | 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 1-9957                            

Diagnostic Products Corporation
(Exact name of registrant as specified in its charter)

|                                |  |                    
|------------------------------- |  | -------------------
|California                      |  | 95-2802182         
|(State or other jurisdiction of |  | (IRS Employer      
|incorporation or organization)  |  | Identification No.)

5700 West 96th Street
Los Angeles, California 90045
(Address of principal executive offices)

Registrants telephone number: (310) 645-8200

No change

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

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.

[YES   X]     [NO      ]

The number of shares of Common Stock, no par value, outstanding as of September
30, 2001, was 28,259,470.



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TABLE OF CONTENTS



|                              |                                                                                               |                                            |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | ITEM I. FINANCIAL STATEMENTS                                                                 
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME         
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS               
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS     
|                              |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|                              | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|                              | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           
|PART II. OTHER INFORMATION   
|                              | ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.                                                    
|SIGNATURES                   



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##### Table of Contents






PART I. FINANCIAL INFORMATION




ITEM I. FINANCIAL STATEMENTS

DIAGNOSTIC PRODUCTS CORPORATION AND SUBSIDIARIES




|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |         | 
|-------------------------------------------------------------- | ------------------------- |  | ------------------ | ------ | ----------------- |  | ------ | ------ | ---- |  | ------ | ------- |  |  | ------ | ------- | 
|(In Thousands, except per share data)                          |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               |                           |  | Three Months Ended |        | Nine Months Ended
|                                                               |                           |  | September 30,      |        | September 30,    
|                                                               |                           |  |                    |        |                  
|                                                               |                           |  | 2001               |        | 2000              |  | 2001   |        | 2000
|                                                               |                           |  |                    |        |                   |  |        |        |     
|SALES:                                                         |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | Non-Affiliated Customers  |  | $                  | 62,072 |                   |  | $      | 57,792 |      |  | $      | 188,435 |  |  | $      | 167,065 | 
|                                                               | Unconsolidated Affiliates |  |                    | 5,794  |                   |  |        | 2,787  |      |  |        | 20,026  |  |  |        | 16,343  | 
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | Total Sales               |  |                    | 67,866 |                   |  |        | 60,579 |      |  |        | 208,461 |  |  |        | 183,408 | 
|COST OF SALES                                                  |                           |  | 28,849             |        |                   |  | 26,695 |        |      |  | 89,061 |         |  |  | 81,849 |        
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | Gross Profit              |  |                    | 39,017 |                   |  |        | 33,884 |      |  |        | 119,400 |  |  |        | 101,559 | 
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|OPERATING EXPENSES:                                            |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|Selling                                                        |                           |  | 12,352             |        |                   |  | 10,657 |        |      |  | 37,188 |         |  |  | 32,732 |        
|Research and Development                                       |                           |  | 7,786              |        |                   |  | 6,465  |        |      |  | 24,073 |         |  |  | 19,714 |        
|General and Administrative                                     |                           |  | 6,270              |        |                   |  | 6,200  |        |      |  | 19,068 |         |  |  | 19,494 |        
|Equity in Income of Affiliates                                 |                           |  | (626               | )      |                   |  | (158   | )      |      |  | (2,227 | )       |  |  | (1,256 | )      
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|OPERATING EXPENSES  NET                                       |                           |  | 25,782             |        |                   |  | 23,164 |        |      |  | 78,102 |         |  |  | 70,684 |        
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | OPERATING INCOME          |  |                    | 13,235 |                   |  |        | 10,720 |      |  |        | 41,298  |  |  |        | 30,875  | 
|Interest/Other Income (Expense)  Net                          |                           |  | 238                |        |                   |  | (1,040 | )      |      |  | (462   | )       |  |  | (1,047 | )      
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|INCOME
          BEFORE TAXES 
          AND MINORITY INTEREST |                           |  | 13,473             |        |                   |  | 9,680  |        |      |  | 40,836 |         |  |  | 29,828 |        
|PROVISION FOR INCOME TAXES                                     |                           |  | 4,176              |        |                   |  | 2,875  |        |      |  | 12,495 |         |  |  | 9,004  |        
|MINORITY INTEREST                                              |                           |  | 166                |        |                   |  | 408    |        |      |  | 649    |         |  |  | 1,107  |        
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | NET INCOME                |  | $                  | 9,131  |                   |  | $      | 6,397  |      |  | $      | 27,692  |  |  | $      | 19,717  | 
|                                                               |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|EARNINGS PER SHARE:                                            |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | BASIC                     |  | $                  | 0.32   |                   |  | $      | 0.23   |      |  | $      | 0.99    |  |  | $      | 0.72    | 
|                                                               | DILUTED                   |  | $                  | 0.31   |                   |  | $      | 0.22   |      |  | $      | 0.94    |  |  | $      | 0.71    | 
|WEIGHTED AVERAGE SHARES OUTSTANDING:                           |                           |  |                    |        |                   |  |        |        |      |  |        |         |  |  |        |        
|                                                               | BASIC                     |  |                    | 28,221 |                   |  |        | 27,624 |      |  |        | 28,064  |  |  |        | 27,480  | 
|                                                               | DILUTED                   |  |                    | 29,601 |                   |  |        | 28,486 |      |  |        | 29,364  |  |  |        | 27,904  | 

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DIAGNOSTIC PRODUCTS CORPORATION AND SUBSIDIARIES




|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |         |  
|--------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------- | ------- | ------------ | - | ------- | ------- | -
|(Dollars in Thousands)                                                                                                |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      |                                                                                                                                                                                              |   | September 30, |         | December 31,
|                                                                                                                      |                                                                                                                                                                                              |   | 2001          |         | 2000        
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |             
|Assets                                                                                                                |                                                                                                                                                                                              |   |               |         |              |   |         |        
|CURRENT ASSETS:                                                                                                       |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Cash and cash equivalents                                                                                                                                                                    |   | $             | 26,865  |              |   | $       | 26,395  |  
|                                                                                                                      | Accounts
          receivable (including receivables from unconsol-
          idated affiliates of $3,718 and $3,633)  net of allowance 
          for doubtful accounts of $1,216 and $750 |   |               | 75,283  |              |   |         | 68,222  |  
|                                                                                                                      | Inventories                                                                                                                                                                                  |   |               | 63,795  |              |   |         | 60,247  |  
|                                                                                                                      | Prepaid expenses and other current assets                                                                                                                                                    |   |               | 884     |              |   |         | 528     |  
|                                                                                                                      | Deferred income taxes                                                                                                                                                                        |   |               | 2,881   |              |   |         | 2,881   |  
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Total current assets                                                                                                                                                                         |   |               | 169,708 |              |   |         | 158,273 |  
|PROPERTY, PLANT AND EQUIPMENT:                                                                                        |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Land and buildings                                                                                                                                                                           |   |               | 37,051  |              |   |         | 37,394  |  
|                                                                                                                      | Machinery and equipment                                                                                                                                                                      |   |               | 69,463  |              |   |         | 66,137  |  
|                                                                                                                      | Leasehold improvements                                                                                                                                                                       |   |               | 7,257   |              |   |         | 7,242   |  
|                                                                                                                      | Construction in progress                                                                                                                                                                     |   |               | 14,191  |              |   |         | 3,607   |  
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Total                                                                                                                                                                                        |   |               | 127,962 |              |   |         | 114,380 |  
|                                                                                                                      | Less accumulated depreciation and amortization                                                                                                                                               |   |               | 64,405  |              |   |         | 61,367  |  
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Property, plant and equipment  net                                                                                                                                                          |   |               | 63,557  |              |   |         | 53,013  |  
|SALES-TYPE AND OPERATING LEASES  net                                                                                 |                                                                                                                                                                                              |   | 48,328        |         |              |   | 40,582  |        
|DEFERRED INCOME TAXES                                                                                                 |                                                                                                                                                                                              |   | 2,536         |         |              |   | 2,536   |        
|INVESTMENTS IN AFFILIATED COMPANIES                                                                                   |                                                                                                                                                                                              |   | 15,553        |         |              |   | 13,465  |        
|EXCESS
          OF COST OVER NET ASSETS ACQUIRED  
          Net of accumulated amortization of $11,570 and $10,735 |                                                                                                                                                                                              |   | 11,758        |         |              |   | 12,615  |        
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|TOTAL ASSETS                                                                                                          |                                                                                                                                                                                              | $ | 311,440       |         |              | $ | 280,484 |        
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|Liabilities and Shareholders Equity                                                                                  |                                                                                                                                                                                              |   |               |         |              |   |         |        
|CURRENT LIABILITIES:                                                                                                  |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Notes payable                                                                                                                                                                                |   | $             | 14,407  |              |   | $       | 15,557  |  
|                                                                                                                      | Accounts payable                                                                                                                                                                             |   |               | 26,376  |              |   |         | 24,987  |  
|                                                                                                                      | Accrued liabilities                                                                                                                                                                          |   |               | 11,225  |              |   |         | 11,409  |  
|                                                                                                                      | Income taxes payable                                                                                                                                                                         |   |               | 7,994   |              |   |         | 1,507   |  
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Total current liabilities                                                                                                                                                                    |   |               | 60,002  |              |   |         | 53,460  |  
|COMMITMENTS AND CONTINGENCIES                                                                                         |                                                                                                                                                                                              |   |               |         |              |   |         |        
|SHAREHOLDERS EQUITY:                                                                                                 |                                                                                                                                                                                              |   |               |         |              |   |         |        
|                                                                                                                      | Common
          Stock  no par value, authorized 60,000,000 shares; 
          outstanding 28,259,470 shares and 27,836,788 shares, respectively                                            |   | $             | 50,459  |              |   | $       | 44,838  |  
|                                                                                                                      | Retained earnings                                                                                                                                                                            |   |               | 231,109 |              |   |         | 208,465 |  
|                                                                                                                      | Accumulated other comprehensive loss                                                                                                                                                         |   |               | (30,130 | )            |   |         | (26,279 | )
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|Total shareholders equity                                                                                            |                                                                                                                                                                                              |   | 251,438       |         |              |   | 227,024 |        
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY                                                                            |                                                                                                                                                                                              | $ | 311,440       |         |              | $ | 280,484 |        
|                                                                                                                      |                                                                                                                                                                                              |   |               |         |              |   |         |        

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DIAGNOSTIC PRODUCTS CORPORATION AND SUBSIDIARIES




|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |         |   |        |         |  
|---------------------------------------------------- | -------------------------------------------- | ---------------------------------------------------------------------------------------------------- | -------------------- | ----------------------------------------------------------- | - | ----------------- | ------- | ------- | - | ------ | ------- | -
|                                                     |                                              |                                                                                                      |                      |                                                             |   | Nine Months Ended
|(Dollars in Thousands)                               |                                              | September 30,                                                                                       
|                                                     |                                              |                                                                                                     
|                                                     |                                              |                                                                                                      |                      |                                                             |   | 2001              |         | 2000   
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|                                                     | Net income                                   |                                                                                                      | $                    | 27,692                                                      |   |                   | $       | 19,717  |  
|                                                     |                                              | Adjustments
          to reconcile net income to net cash
          flows from operating activities: |                      |                                                             |   |                   |         |         |   |       
|                                                     |                                              |                                                                                                      |                      | Depreciation and amortization                               |   |                   | 19,779  |         |   |        | 15,108  |  
|                                                     |                                              |                                                                                                      |                      | Equity in undistributed income of unconsolidated affiliates |   |                   | (2,227  | )       |   |        | (1,256  | )
|                                                     |                                              | Changes in operating assets and liabilities:                                                         |                      |                                                             |   |                   |         |         |   |       
|                                                     |                                              |                                                                                                      |                      | Accounts receivable                                         |   |                   | (10,134 | )       |   |        | (15,751 | )
|                                                     |                                              |                                                                                                      |                      | Inventories                                                 |   |                   | (4,675  | )       |   |        | (3,022  | )
|                                                     |                                              |                                                                                                      |                      | Prepaid expenses and other current assets                   |   |                   | (356    | )       |   |        | 60      |  
|                                                     |                                              |                                                                                                      | Accounts payable     |                                                             |   | 6,839             |         |         |   | 6,771  |        
|                                                     |                                              |                                                                                                      | Accrued liabilities  |                                                             |   | (184              | )       |         |   | 205    |        
|                                                     |                                              |                                                                                                      | Income taxes payable |                                                             |   | 6,605             |         |         |   | (2,498 | )      
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|                                                     | Net cash flows from operating activities     |                                                                                                      |                      | 43,339                                                      |   |                   |         | 19,334  |  
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|CASH FLOWS USED FOR INVESTING ACTIVITIES:            |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|                                                     |                                              |                                                                                                      |                      | Additions to property, plant, and equipment                 |   |                   | (16,923 | )       |   |        | (7,436  | )
|                                                     |                                              |                                                                                                      |                      | Sales  type and operating leases                           |   |                   | (24,451 | )       |   |        | (12,938 | )
|                                                     |                                              |                                                                                                      |                      | Investment in affiliated companies                          |   |                   | (1,231  | )       |   |        | (115    | )
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|                                                     | Net cash flows used for investing activities |                                                                                                      |                      | (42,605                                                     | ) |                   |         | (20,489 | )
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|                                                     |                                              |                                                                                                      |                      | (Repayment) borrowing of notes payable                      |   |                   | (64     | )       |   |        | 310     |  
|                                                     |                                              |                                                                                                      |                      | Proceeds from exercise of stock options                     |   |                   | 5,621   |         |   |        | 4,259   |  
|                                                     |                                              |                                                                                                      |                      | Cash dividends paid                                         |   |                   | (5,048  | )       |   |        | (4,942  | )
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|                                                     | Net cash flows from financing activities     |                                                                                                      |                      | 509                                                         |   |                   |         | (373    | )
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|EFFECT OF EXCHANGE RATE CHANGES ON CASH              |                                              |                                                                                                      | (773                 | )                                                           |   |                   | (665    | )      
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                                              |                                                                                                      | 470                  |                                                             |   |                   | (2,193  | )      
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     |                                              |                                                                                                      | 26,395               |                                                             |   |                   | 14,547  |        
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        
|CASH AND CASH EQUIVALENTS
AT END OF PERIOD           |                                              | $                                                                                                    | 26,865               |                                                             |   | $                 | 12,354  |        
|                                                     |                                              |                                                                                                      |                      |                                                             |   |                   |         |        

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DIAGNOSTIC PRODUCTS CORPORATION AND SUBSIDIARIES




Note 1  Basis of Presentation

The information for the three months and nine month periods ended September 30,
2001 and 2000 has not been audited by independent public accountants, but
includes all adjustments (consisting of normal recurring accruals) that are, in
the opinion of management, necessary to a fair statement of the results for
such periods.

Certain information and footnote disclosure normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been omitted pursuant to the requirements
of the Securities and Exchange Commission, although the Company believes that
the disclosures included in these financial statements are adequate to make the
information not misleading.

The consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes thereto included in the Companys
2000 Annual Report on Form 10-K as filed with the Securities and Exchange
Commission.

The results of operations for the three-month and nine-month periods ended
September 30, 2001 are not necessarily indicative of the results to be expected
for the year ending December 31, 2001.

Basic earnings per share is computed by dividing net income by the
weighted-average number of shares outstanding. Diluted earnings per share
includes the dilutive effect of stock options. All share and per share amounts
have been adjusted to give effect to a 2 for 1 stock split occurring on June 1,
2001.

Note 2  Inventories

Inventories by major categories are summarized as follows:

|                       |  |               |        |              |  |   |        | 
|---------------------- |  | ------------- | ------ | ------------ |  | - | ------ | 
|(Dollars in Thousands) |  | September 30, |        | December 31,
|                       |  | 2001          |        | 2000        
|                       |  |               |        |             
|Raw materials          |  | $             | 27,004 |              |  | $ | 23,381 | 
|Work in process        |  |               | 23,775 |              |  |   | 23,862 | 
|Finished goods         |  |               | 13,016 |              |  |   | 13,004 | 
|                       |  |               |        |              |  |   |        | 
|Total                  |  | $             | 63,795 |              |  | $ | 60,247 | 
|                       |  |               |        |              |  |   |        | 

Note 3  Comprehensive Income

Comprehensive income is summarized as follows:

|                                        |  |                    |        |                   |  |      |        |      |  |   |        |   |  |   |        |  
|--------------------------------------- |  | ------------------ | ------ | ----------------- |  | ---- | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|(Dollars in Thousands)                  |  | Three Months Ended |        | Nine Months Ended
|                                        |  | September 30,      |        | September 30,    
|                                        |  |                    |        |                  
|                                        |  | 2001               |        | 2000              |  | 2001 |        | 2000
|                                        |  |                    |        |                   |  |      |        |     
|Net income                              |  | $                  | 9,131  |                   |  | $    | 6,397  |      |  | $ | 27,692 |   |  | $ | 19,717 |  
|Foreign currency translation adjustment |  |                    | 1,502  |                   |  |      | (3,871 | )    |  |   | (3,851 | ) |  |   | (7,869 | )
|                                        |  |                    |        |                   |  |      |        |      |  |   |        |   |  |   |        |  
|Comprehensive income                    |  | $                  | 10,633 |                   |  | $    | 2,526  |      |  | $ | 23,841 |   |  | $ | 11,848 |  
|                                        |  |                    |        |                   |  |      |        |      |  |   |        |   |  |   |        |  

The Company does not provide for U.S. income taxes on foreign currency
translation adjustments because it does not provide for such taxes on
undistributed earnings of foreign subsidiaries.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4  Segment and Product Line Information

The Company considers its manufactured instruments and medical immunodiagnostic
test kits as one operating segment, as the kits are required to run the
instruments and utilize similar technology and instrument manufacturing
processes. The Company manufactures its instruments and kits principally from
facilities in the United States and the United Kingdom. Kits and instruments
are sold to hospitals, medical centers, clinics, physicians, and other clinical
laboratories throughout the world through a network of distributors, including
consolidated distributors located in the United Kingdom, Germany, Czech
Republic, Poland, Spain, The Netherlands, Belgium, Luxembourg, Finland, Norway,
France, Australia, New Zealand, China, Brazil, Uruguay, Venezuela, Costa Rica,
Panama, Sweden, Latvia, Lithuania, Estonia, and Denmark.

The Company sells its instruments and immunodiagnostic test kits under several
product lines. Product line sales information is as follows:

|                                                               |  |                                 |        |                                |  |      |        |      |  |   |         |  |  |   |         | 
|-------------------------------------------------------------- |  | ------------------------------- | ------ | ------------------------------ |  | ---- | ------ | ---- |  | - | ------- |  |  | - | ------- | 
|(Dollars in Thousands)                                         |  | Three
Months EndedSeptember 30, |        | Nine
Months EndedSeptember 30,
|                                                               |  |                                 |        |                               
|                                                               |  | 2001                            |        | 2000                           |  | 2001 |        | 2000
|                                                               |  |                                 |        |                                |  |      |        |     
|Sales:                                                         |  |                                 |        |                                |  |      |        |      |  |   |         |  |  |   |         | 
|IMMULITE                                                       |  | $                               | 54,767 |                                |  | $    | 48,072 |      |  | $ | 168,209 |  |  | $ | 141,443 | 
|Radioimmunoassay (RIA)                                         |  |                                 | 8,676  |                                |  |      | 8,106  |      |  |   | 25,895  |  |  |   | 25,903  | 
|Other
          (Includes DPC and
          non- DPC products) |  |                                 | 4,423  |                                |  |      | 4,401  |      |  |   | 14,357  |  |  |   | 16,062  | 
|                                                               |  |                                 |        |                                |  |      |        |      |  |   |         |  |  |   |         | 
|                                                               |  | $                               | 67,866 |                                |  | $    | 60,579 |      |  | $ | 208,461 |  |  | $ | 183,408 | 
|                                                               |  |                                 |        |                                |  |      |        |      |  |   |         |  |  |   |         | 

The Company is organized and managed by geographic area. Transactions between
geographic segments are accounted for as normal sales for internal reporting
and management purposes with all intercompany amounts eliminated in
consolidation. Sales are attributed to geographic area based on the location
from which the instrument or kit is shipped to the customer. Information
reviewed by the Companys chief operating decision maker on significant
geographic segments is prepared on the same basis as the consolidated financial
statements and is as follows:

|                                      |  |        |         |          |  |          |        |            |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |   |  |   |         | 
|------------------------------------- |  | ------ | ------- | -------- |  | -------- | ------ | ---------- |  | ----------- | ------ | ----------- |  | ------------ | ------ | ----- |  | - | ------ | - |  | - | ------- | - |  | - | ------- | 
|                                      |  |        |         |          |  | Euro/DPC |        | DPC        |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |  
|                                      |  |        |         |          |  | Limited  |        | Biermann*  |  | DPC Medlab* |        |             |  |              |        | Less: |  |   |        |  
|                                      |  | United |         | (United  |  | (German  |        | (Brazilian |  |             |        |             |  | Intersegment |        |       |  |  
|                                      |  | States |         | Kingdom) |  | Group)   |        | Group)     |  | Other       |        | Elimination |  | Total       
|                                      |  |        |         |          |  |          |        |            |  |             |        |             |  |             
|(Dollars in Thousands)                |  |        |         |          |  |          |        |            |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |   |  |   |         | 
|Three Months Ended September 30, 2001 |  |        |         |          |  |          |        |            |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |   |  |   |         | 
|Sales                                 |  | $      | 51,088  |          |  | $        | 9,753  |            |  | $           | 7,919  |             |  | $            | 7,294  |       |  | $ | 13,517 |   |  | $ | (21,705 | ) |  | $ | 67,866  | 
|Net income (loss)                     |  |        | 4,837   |          |  |          | 1,620  |            |  |             | 139    |             |  |              | 211    |       |  |   | 2,924  |   |  |   | (600    | ) |  |   | 9,131   | 
|Three Months Ended September 30, 2000 |  |        |         |          |  |          |        |            |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |   |  |   |         | 
|Sales                                 |  | $      | 42,591  |          |  | $        | 7,618  |            |  | $           | 7,155  |             |  | $            | 8,105  |       |  | $ | 11,321 |   |  | $ | (16,211 | ) |  | $ | 60,579  | 
|Net income (loss)                     |  |        | 4,451   |          |  |          | 1,342  |            |  |             | (358   | )           |  |              | 519    |       |  |   | (57    | ) |  |   | 500     |   |  |   | 6,397   | 
|Nine Months Ended September 30, 2001  |  |        |         |          |  |          |        |            |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |   |  |   |         | 
|Sales                                 |  | $      | 154,986 |          |  | $        | 27,359 |            |  | $           | 24,455 |             |  | $            | 21,994 |       |  | $ | 41,430 |   |  | $ | (61,763 | ) |  | $ | 208,461 | 
|Net income (loss)                     |  |        | 14,384  |          |  |          | 4,377  |            |  |             | 577    |             |  |              | 824    |       |  |   | 9,330  |   |  |   | (1,800  | ) |  |   | 27,692  | 
|Nine Months Ended September 30, 2000  |  |        |         |          |  |          |        |            |  |             |        |             |  |              |        |       |  |   |        |   |  |   |         |   |  |   |         | 
|Sales                                 |  | $      | 126,585 |          |  | $        | 23,626 |            |  | $           | 22,646 |             |  | $            | 22,058 |       |  | $ | 37,183 |   |  | $ | (48,690 | ) |  | $ | 183,408 | 
|Net income (loss)                     |  |        | 14,184  |          |  |          | 3,754  |            |  |             | (578   | )           |  |              | 1,410  |       |  |   | 1,147  |   |  |   | (200    | ) |  |   | 19,717  | 

*DPC Biermann includes the Companys operations in Germany, the Czech Republic,
and Poland. DPC Medlab includes the Companys operations in Brazil, Uruguay,
Venezuela, Costa Rica, and Panama.

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Note 5  New Accounting Pronouncements

In June, 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 141, Business Combinations and
SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 141 requires
that the purchase method of accounting be used for all business combinations
initiated after June 30, 2001. SFAS No. 142 changes the accounting for
goodwill from an amortization method to an impairment-only approach.
Amortization of goodwill, including goodwill recorded in business combinations
occurring prior to June 30, 2001, will cease upon adoption of this statement.
In addition, the standard includes provisions for the reclassification of
certain existing recognized intangibles as goodwill, reassessment of the useful
lives of existing recognized intangibles, reclassification of certain
intangibles out of previously reported goodwill, and the identification of
reporting units for purposes of assessing potential future impairments of
goodwill. Under SFAS Nos. 141 and 142, goodwill and other intangibles are
initially assessed for impairment upon adoption of the statements with
subsequent assessments required annually and when there is reason to suspect
that their values have been diminished or impaired, with any corresponding
write-downs recognized as necessary.

The Company was required to implement SFAS No. 141 on July 1, 2001, and has
determined that the impact of this statement is not material to its
consolidated financial position or results of operations. The Company is
required to implement SFAS No. 142 on January 1, 2002 and once adopted annual
goodwill amortization of approximately $1.3 million will cease. Beyond the
impact to its amortization of goodwill, the Company has not determined the
impact that this statement will have on its consolidated financial position or
results of operations.

During the third quarter of 2001, the Financial Accounting Standards Board
issued SFAS No. 143, Accounting for Asset Retirement Obligations and SFAS No.
144, Accounting for the Impairment and Disposal of Long-Lived Assets. These
new standards clarify and supersede existing guidance for the reporting and
accounting for asset impairments and asset retirements. SFAS No. 143 will be
effective for the Company beginning January 1, 2003. SFAS No. 144 will be
effective for the Company beginning January 1, 2002. The Company is still in
the process of evaluating the impact that these standards will have on its
consolidated financial position and results of operations.




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

Results of Operations

The Companys sales increased 12.0% in the third quarter ended September 30,
2001 to $67.9 million compared to sales of $60.6 million in the third quarter
of 2000. Sales increased 13.7% to $208.5 million in the first nine months of
2001 from $183.4 million in the first nine months of 2000. Sales of all
IMMULITE products (instruments and reagents) in the three and nine months ended
September 30, 2001 were $54.8 million and $168.2 million, increases of 13.9%
and 18.9% over the corresponding periods of 2000. Sales of IMMULITE products
represented 80.7% of sales in the first nine months of 2001, compared to 77.1%
of sales in the first nine months of 2000.

Because the Company ships virtually its entire product by air, the closing of
domestic airports in response to the events of September 11, 2001, caused
certain shipments to be delayed. These delays did not have a material impact
on sales, and shipments have largely returned to normal.

IMMULITE reagents represented $45.3 million of 2001 third quarter sales, a
25.5% increase over the third quarter of 2000 and $132.8 million of sales in
the first nine months of 2001, a 25.9% increase over the first nine months of
2000. Sales of IMMULITE systems (including service revenue and parts) were
$9.5 million in the 2001 third quarter, down 21.2% from the third quarter of
2000, reflecting a lessor percentage of instruments being sold outright as
compared to being rented or soft placed. In the first nine months of 2001,
sales of IMMULITE systems (including service revenue and parts) decreased 2.5%
to $35.0 million compared to the first nine months of 2000. The Company
shipped a total of 268 IMMULITE systems during the third quarter of 2001,
including 149 IMMULITE 2000 systems and 119 IMMULITE One systems. The total
base of IMMULITE systems shipped grew to almost 6,800 including approximately
1600 of the IMMULITE 2000 systems.

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Sales of the Companys mature RIA products increased approximately 7.0% in the
third quarter of 2001 to $8.7 million from $8.1 million in 2000. In the first
nine months of 2001, RIA remained at $25.9 million, the same level as 2000. It
is expected that RIA product sales will decline in the future. Sales of other
DPC products, including allergy reagents, represented approximately 3% and 4%
of sales in each of the three and nine months periods ended September 30, 2001.
Sales of non-DPC products represented 2.5% of sales in the three and nine
month periods ending September 30, 2001.

In the third quarter of 2001, domestic sales grew at 32%, to 28% of total
sales, while foreign sales grew at 6%. In the first nine months of 2001,
domestic sales grew at 34% to 27% of total sales, while international sales
grew at 8%. The growth in domestic sales reflects continued penetration of
large laboratory accounts and group purchasing organizations. The Company
expects that domestic sales will continue to grow at a greater rate than
international sales.

Due to the significance of foreign sales (approximately 73% of total sales), in
particular in Europe and South America, the Company is subject to currency
risks based on the relative strength or weakness of the U.S. dollar. In
periods when the U.S. dollar is strengthening, the effect of the translation of
the financial statements of consolidated foreign affiliates is that of lower
sales and net income. Had the value of the U.S dollar relative to other
currencies remained constant with the third quarter of 2000, sales for the
three and nine month periods of 2001 would have increased an additional 6.0%
and 6.4%, respectively over the 2000 periods. Due to intense competition, the
Companys foreign distributors are generally unable to increase prices to
offset the negative effect when the U.S. dollar is strong.

Gross profit as a percentage of sales increased from 55.9% in the third quarter
of 2000 to 57.5% in the third quarter of 2001 and from 55.4% in the first nine
months of 2000 to 57.3% in the first nine months of 2001. These increases were
due in part to a shift toward higher margin domestic sales from third party
international sales, an increase in manufacturing volume, a shift toward
reagents from instruments, and a shift toward IMMULITE 2000 reagent sales.

The Company believes that because it sells to its affiliates in dollars, a
strengthening dollar as well as potential increases in product sales through
distribution agreements in the United States could put pressure on gross
margins in the future.

Selling and research and development expenses increased in absolute dollars in
the third quarter and the first nine months of 2001 relative to the third
quarter and the first nine months of 2000, and as a percentage of sales, due in
part to increased sales commissions and increased FDA trials expenses as the
Company prepared additional tests for FDA submission. General and
administrative expenses increased slightly in the third quarter and decreased
in the first nine months of 2001 due in part to the strong U.S. dollar. It is
expected that general and administrative expenses will exceed historical levels
in the future.

Equity in income of affiliates represents the Companys share of earnings of
non-consolidated affiliates, principally the 45%-owned Italian distributor.
This amount increased to $626,000 in the third quarter of 2001 from $158,000 in
the third quarter of 2000. In the first nine months of 2001, this amount
increased to $2.2 million from $1.3 million for the comparable period in 2000.

Interest/other income (expense)-net includes interest income, interest expense,
and foreign exchange transaction losses and gains. In the third quarter of
2001 the Company had other income of $238,000 versus expenses of $1.0 million
in 2000. In the first nine months of 2001 the Company had other expenses of
$462,000 versus expenses of $1.0 million in the same period of 2000. The third
quarter of 2001 included a $146,000 foreign currency translation gain versus a
$983,000 foreign currency loss in 2000 and net interest income versus net
interest expense in 2000. Also included in the first nine months of 2000 is a
gain of approximately $215,000 on the sale of a building in the United Kingdom.

The Companys effective tax rate includes Federal, state, and foreign taxes.
The Companys tax rate increased to 31.0% in the third quarter of 2001 from
29.7% in the third quarter of 2000. The rate increased to 30.6% in the first
nine months of 2001, from 30.2% in the same period in 2000.

Minority interest is the 44% minority owners interest in the earnings of the
companys consolidated Brazilian affiliate.

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Net income increased 43% to $9.1 million in the third quarter of 2001 or $.31
per diluted share from $6.4 million or $.22 per diluted share in the third
quarter of 2000 on a split-adjusted basis. Net income increased 40% in the
first nine months of 2001 to $27.7 million or $.94 per diluted share from $19.7
million or $.71 per diluted share in 2000 on a split-adjusted basis.

Liquidity

The Company has adequate working capital and sources of capital to carry on its
current business and to meet its existing capital requirements. Net cash flow
from operating activities was $43.3 million in the first nine months of 2001
and $19.3 million in the first nine months of 2000. Additions to property,
plant, and equipment in the first nine months of 2001 were $16.9 million,
principally the result of the Companys continued construction of its new
manufacturing facility in New Jersey, compared to $7.4 million in the first
nine months of 2000. Cash flow used for the placement of IMMULITE systems
under sales-type and operating leases was $24.4 million in the first nine
months of 2001 compared to $12.9 million in the first nine months of 2000.
These leases have periods ranging from three to five years. In 2001 this
amount includes a $5.5 million reclassification from fixed assets to sales-type
and operating leases. The Company decreased borrowings by $64,000 in the first
nine months of 2001 and increased borrowings by $310,000 in the first nine
months of 2000.

The Companys foreign operations are subject to risks, such as currency
devaluations, associated with political and economic instability. See
discussion above under Results of Operations.

The Company purchased real property in New Jersey in 2000 at a cost of
approximately $2.6 million. The Company is constructing an 80,000 square foot
manufacturing facility, which should be completed by year-end, on this property
at a cost of $10 million to $12 million. The Company has no other material
commitments for capital expenditures in 2001.

The Company has a $20 million domestic unsecured line of credit under which
there were no borrowings outstanding at September 30, 2001 or December 31,
2000. The Company had other notes payable (consisting of bank borrowings by
the Companys foreign consolidated subsidiaries payable in their local
currency, some of which are guaranteed by the Company) of $14.4 million at
September 30, 2001 compared to $15.6 million at December 31, 2000. The Company
received $5.6 million from the exercise of stock options in the first nine
months of 2001 versus $4.3 million in the first nine months of 2000. The
Company has paid a quarterly cash dividend of $.06 per share, on a
split-adjusted basis, since 1995.

Euro Conversion

The Company has significant sales to European countries (the participating
countries) which began converting to a common legal currency (the Euro) on
January 1, 1999. During the transition period of January 1, 1999 to January 1,
2002, public and private parties may pay for goods and services using either
the Euro or local currency. During the transition period, conversion rates are
not computed directly from one local currency to another. Instead, local
currencies are converted first to a Euro denomination and then to the second
local currency. Beginning in January 2002, new Euro-denominated bills and
coins become legal currency and all former currencies will, over the ensuing
months, be withdrawn from circulation. The ultimate conversion to the Euro
will eliminate currency exchange risk among the participating countries.

The Company sells its products in the participating countries through
affiliated and non-affiliated distributors that determine sales prices in their
respective territories. The use of a single currency in the participating
countries may affect this variable pricing in the various European markets
because of price transparency. Nevertheless, other market factors such as
local taxes, customer preferences, and product assortment may reduce the need
for price equalization.

The Company has significant sales in Europe and is currently evaluating the
business implications of the conversion to the Euro, including the need to
adapt internal systems to accommodate Euro-denominated transactions, the
competitive implications of cross-border price transparency, the impact on
existing marketing programs, and other strategic implications. Due to the
existence of many unknown variables, it is not possible for the Company to
predict the precise implications of the Euro conversion on its operations. The
Company has implemented a plan to convert or upgrade certain of its European
subsidiaries to a similar computer software system that will allow them to
operate in the European currency environment and to create a central repository
for all European information. The Company anticipates the software conversion
will be completed in the fourth

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quarter of 2001, with an expected cost of approximately $1.0 million. Through
September 30, 2001, the Company had expended approximately $594,000.

Forward-Looking Statements

Except for the historical information contained herein, this report contains
forward-looking statements (identified by the words estimate, project,
anticipate, expect, intend, believe, hope, and similar expressions)
that are based upon Managements current expectations and speak only as of the
date made. These forward-looking statements are subject to risks,
uncertainties, and factors that could cause actual results to differ materially
from the results anticipated in the forward-looking statements. These risks
and uncertainties include the degree of customer demand for the Companys
products, customer acceptance of the IMMULITE 2000 and other new products, the
Companys ability to keep abreast of technological innovations, the risks
inherent in the development and release of new products (such as delays,
unforeseen costs, and technical difficulties), competitive pressures, currency
risks based on the relative strength or weakness of the U.S. dollar, health
care regulation and cost containment measures, political and economic
instability in certain foreign markets, and the impact of the conversion to the
Euro.




ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change during the quarter ended September 30, 2001,
from the disclosures about market risk provided in the Companys Annual Report
on Form 10-K for the year ended December 31, 2000.




PART II. OTHER INFORMATION




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

None.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

DIAGNOSTIC PRODUCTS CORPORATION(Registrant)

|                                                     |  |                                                                                                                                         |  |                 
|---------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------
|/s/ Michael Ziering
        
        Michael Ziering |  | President and 
        Chief Executive Officer and
        Chairman of the Board
        (Principal Executive Officer)
        Director |  | November 9, 2001
|                                                     |  |                                                                                                                                         |  |                 
|/s/ James L. Brill
        
        James L. Brill   |  | Vice President-Finance
        (Principal Financial and
        Accounting Officer)                                                     |  | November 9, 2001

10