U.S. SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549

                               FORM 10-QSB
(Mark One)

____X____  Quarterly report under Section 13 or 15(d) of the Securities

           Exchange Act of 1934

For the quarterly period ended  _____March 31, 1998_____

_________Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from _________  to  _________

Commission File Number   ____0-7855___

                          UNITED-GUARDIAN, INC.
       ----------------------------------------------------------------
       (Exact Name of Small Business Issuer as Specified in Its Charter)

          Delaware                                11-1719724
-------------------------------        -----------------------------------
(State or Other Jurisdiction of        (I.R.S. Employer Identification No.)
 Incorporation or Organization)

               230 Marcus Boulevard, Hauppauge, New York 11788
               -----------------------------------------------
                   (Address of Principal Executive Offices)


                                 (516) 273-0900
                ------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)


         ---------------------------------------------------------------
         (Former Name, Former Address and Former Fiscal Year, if Changed
                                Since Last Report)

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

Yes  ____X____         No  ________

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

         Check  whether the  registrant  filed all  documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange Act after
the distribution of securities under a plan confirmed by a court.

Yes __________         No  _________

                   APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares  outstanding  of each of the issuer's
classes of common equity, as of the latest practicable date

                               4,878,839
               -------------------------------------------


<PAGE>
                          UNITED-GUARDIAN, INC.

                                  INDEX


                                                                 Page No.
                                                                 --------

Part I.  Financial Information:

         Consolidated Statements of Earnings -
                  Three Months Ended
                  March 31, 1998 and 1997                           2

         Consolidated Balance Sheets -
                  March 31, 1998 and December 31, 1997            3-4

         Consolidated Statements of Cash Flows -
                  Three Months Ended
                  March 31, 1998 and 1997                           5

         Consolidated Notes to Financial Statements                 6

         Management's Discussion and Analysis of
            Financial Condition and Results of Operations           7

Part II  Other Information                                          8








                                    1
<PAGE>


                          UNITED-GUARDIAN, INC.
                   CONSOLIDATED STATEMENTS OF EARNINGS
                               (UNAUDITED)


                                                  THREE MONTHS ENDED
                                                       MARCH 31,
                                                       ---------
                                               1998              1997
                                               ----              ----

Net sales                                 $  2,388,899     $   1,894,588
                                            ----------        ----------
Costs and expenses:
     Cost of sales                           1,433,155         1,192,057
     Operating expenses                        493,399           470,024
                                            ----------        ----------
                                             1,926,554         1,662,081
                                            ----------        ----------
           Earnings from operations            462,345           232,507

Other income (expense):
     Interest expense                             (296)          (14,027)
     Gain on sale of assets                      8,000             ---
     Other                                      15,009             4,893
                                            ----------         ---------
           Earnings before income taxes        485,058           223,373

Provision for income taxes                     180,900            84,900
                                            ----------         ---------
           Net earnings                   $    304,158     $     138,473
                                            ==========         =========

Earnings per common share                 $        .06     $         .03
                                            ==========         =========
Basic weighted average shares                4,878,470         4,792,723
                                            ==========         =========
Diluted weighted average shares              4,890,300         4,794,212
                                            ==========         =========

                    See notes to financial statements.
                                    2

<PAGE>

                          UNITED-GUARDIAN, INC.
                       CONSOLIDATED BALANCE SHEETS



                                               MARCH 31,       DECEMBER 31,
                                                 1998              1997
                                              ----------       -----------
                       ASSETS                 (UNAUDITED)
Current assets:
    Cash and cash equivalents              $     829,482    $     822,596
    Investments--short term                      365,505          361,723
    Accounts receivable
         (less allowance for doubtful
          accounts of $ 32,300 at
          March 31, 1998 and
          December 31, 1997)                   1,104,306          905,896
     Inventories                               1,273,168        1,372,067
     Prepaid expenses and other
          current assets                         235,547          225,854
     Deferred income taxes                       107,111          107,111
                                              ----------       ----------
              Total current assets             3,915,119        3,795,247
                                              ----------       ----------

Property, plant and equipment:
     Land                                         69,000           69,000
     Factory equipment and fixtures            2,317,780        2,333,654
     Building and improvements                 1,858,843        1,843,171
     Waste disposal plant                        133,532          133,532
                                              ----------       ----------
                                               4,379,155        4,379,357
      Less: Accumulated depreciation           2,882,808        2,847,870
                                              ----------       ----------
                                               1,496,347        1,531,487
      Assets under capital leases, net               361            1,444
                                              ----------       ----------
                                               1,496,708        1,532,931
                                              ----------       ----------

Other assets:
      Processes and patents, net                 497,910          533,984
      Split dollar life insurance                348,161          261,559
      Other                                        2,125            2,125
                                              ----------       ----------
                                                 848,196          797,668
                                              ----------       ----------
                                           $   6,260,023    $   6,125,846
                                              ==========       ==========




                    See notes to financial statements.
                                    3
<PAGE>
                          UNITED-GUARDIAN, INC.
                       CONSOLIDATED BALANCE SHEETS



                                             MARCH 31,        DECEMBER 31,
                                               1998               1997
                                           ------------      ------------
LIABILITIES AND                             (UNAUDITED)
STOCKHOLDERS' EQUITY

Current liabilities:
      Accounts payable                    $    241,700       $    292,632
      Dividends payable                          ---              292,610
      Accrued expenses and other               239,523            165,841
      Taxes payable                            165,119             70,396
                                           -----------        -----------
            Total current liabilities          646,342            821,479
                                           -----------        -----------
Deferred income taxes                           20,116             20,116
                                           -----------        -----------

Stockholders' equity:
   Common stock $.10 par value,                487,934            487,684
       authorized 10,000,000 shares,
       issued and outstanding
       4,879,339 and 4,876,839 shares
       respecitively
   Capital in excess of par value            3,319,116          3,314,210
   Retained earnings                         1,786,515          1,482,357
                                           -----------        -----------
            Total stockholders' equity       5,593,565          5,284,251
                                           -----------        -----------
                                          $  6,260,023       $  6,125,846
                                           ===========        ===========




                    See notes to financial statements.
                                    4
<PAGE>
                          UNITED-GUARDIAN, INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (UNAUDITED)
                                                     THREE MONTHS ENDED
                                                                MARCH 31,
                                                          ---------
                                                     1998           1997
                                                     ----           ----

Cash flows from operating activities:
  Net earnings                                  $   304,158    $   138,473
  Adjustments to reconcile net earnings
     to net cash flows provided by
    (used in) operations:
       Depreciation and amortization                102,095         86,950
       Net gain on sale of equipment                 (8,000)         ---
       (Increase) decrease in assets:
          Accounts receivable                      (198,410)      (174,186)
          Inventories                                98,899        175,354
          Prepaid expenses and other assets         (96,295)       (37,176)
       Increase (decrease) in liabilities:
          Accounts payable                          (50,932)       (12,788)
          Accrued expenses and other                168,405       (134,130)
                                                  ---------      ---------
        Net cash provided by operating
             activities                             319,920         42,497
                                                  ---------      ---------

Cash flows from investing activities:
   Acquisition of property, plant and
      equipment                                     (29,798)       (48,551)
   Proceeds from the sale of equipment                8,000          ---
   Purchase of short term investments                (3,782)         ---
                                                   ---------      ---------
        Net cash used in investing activities       (25,580)       (48,551)
                                                  ---------      ---------

Cash flows from financing activities:
   Principal payments on long-term debt               ---          (29,166)
   Principal payments on capital lease
           obligations                                ---           (1,083)
   Proceeds from exercise of stock options            5,156          ---
   Dividends paid                                  (292,610)      (238,144)
                                                  ---------      ---------
        Net cash used in financing
             activities                            (287,454)      (268,393)
                                                  ---------      ---------
Net increase (decrease) in cash
      and cash equivalents                            6,886       (274,447)

Cash and cash equivalents at beginning
          of period                                  822,596        826,079
                                                  ----------     ----------
Cash and cash equivalents at
          end of period                         $    829,482   $    551,632
                                                  ==========     ==========




                    See notes to financial statements.
                                    5

<PAGE>
                          UNITED-GUARDIAN, INC.
                CONSOLIDATED NOTES TO FINANCIAL STATEMENTS


         1. In the opinion of the  Company,  the  accompanying  unaudited
financial  statements contain all adjustments  (consisting of only normal
recurring accruals) necessary to present fairly the financial position as
of March 31, 1998 and December 31, 1997 and the results of operations and
cash  flows for the three  months  ended  March  31,  1998 and 1997.  The
accounting  policies  followed  by  the  Company  are  set  forth  in the
Company's  financial  statements included in the December 31, 1997 Annual
Report.

         2. The results of  operations  for the three  months ended March
31,  1998 and 1997 are not  necessarily  indicative  of the results to be
expected  for the  full  year.  Certain  prior  year  amounts  have  been
reclassified to conform with the current year presentation.

         3. For  purposes of the  Statement  of Cash  Flows,  the Company
considers  all highly  liquid  investments  purchased  with a maturity of
three months or less to be cash equivalents.

     Cash  payments  for  interest  were $296 and  $14,171  for the three
months ended March 31, 1998 and March 31, 1997 respectively.

     Cash  payments  for income  taxes were  $86,566 and $208,126 for the
three months ended March 31, 1998 and March 31, 1997 respectively.







                                     6
<PAGE>
                   MANAGEMENT'S DISCUSSION AND ANALYSIS
             OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Results of Operations

     Net Sales. Net Sales increased $494,311 (26.1%) for the three months
ended March 31, 1998 as compared to the  comparable  period in 1997.  The
Guardian  Laboratories  division  ("Guardian")  had a sales  increase  of
$519,058 (35.0%) while the Eastern Chemical subsidiary  ("Eastern") had a
sales  decrease of $24,747  (6.0%).  The  increase in Guardian  sales was
attributable  to an  increase  in the sales of some of  Guardian's  newer
products,  such as its Confetti (TM) Dermal  Essentials line of products,
as well as an increase in the sales of Guardian's  core products  through
the  increased  marketing  efforts of its  distributors.  The decrease in
Eastern's sales was attributable to normal fluctuations in the purchasing
patterns of its customers.

     Cost of Sales.  As a percentage  of sales,  cost of sales  decreased
from  62.9% for the three  months  ended  March 31,  1997 to 60.0% in the
comparable  period in 1998.  This  decrease was due to the  absorption of
plant fixed assets by higher  revenue in 1998 as compared to 1997,  along
with increased sales of Guardian (which operates at a higher gross profit
margin), offsetting decreased sales of Eastern.

     Operating  Expenses  increased  $23,375  (5.0%) for the three months
ended March 31, 1998 when compared to the comparable  period in 1997. The
increase was due  primarily  to increases in payroll and payroll  related
costs.

     Interest  Expense  decreased  $13,731  (97.9%) for the three  months
ended March 31, 1998 when compared to the comparable period in 1997. This
decrease was mainly due to the repayment of all debt in 1997.

     Interest Income increased $6,347 (129.7%) for the three months ended
March 31,  1998 when  compared  to the  comparable  period in 1997.  This
increase is primarily due to an increase in short term invested balances.

Financial Condition

     Working  capital  increased from  $2,973,768 at December 31, 1997 to
$3,268,777 at March 31, 1998. The current ratio  increased from 4.62 to 1
at December 31, 1997 to 6.06 to 1 at March 31, 1998. The Company believes
that its working capital is and will continue to be sufficient to support
its operating requirements and its need for capital expenditures.

     Cash flows from operating  activites increased $277,423 (652.8%) for
the three  months  ended March 31, 1998 when  compared to the  comparable
period in 1997. This increase in mainly due to the increased  earnings in
1998 as compared to 1997 as a result of the increase in sales in 1998.

     Cash flows from investing  activies increased $22,971 (47.3%) in the
three months ended March 31, 1998 when compared to the comparable  period
in 1997.  This  increase  is mainly due to a decrease  in  aquisition  of
Plant,  Property  and  Equipment  and an $8000  gain on the sale of plant
equipment.

     Cash flows from financing  activies  decreased $19,061 (7.1%) in the
the three  months  ended March 31, 1998 when  compared to the  comparable
period in 1997.  This decrease is primarily  due to a combination  of the
elimination of all debt and an increase in cash dividends paid in 1998.


                                     7
<PAGE>
                       PART II - OTHER INFORMATION


Item 6 (b)   Exhibits and Reports on Form 8-K

             a. Exhibits

                Exhibit 27.  Financial Data Schedule

             b. Reports on Form 8-K

                No  reports  have  been  filed  on Form 8-K  during  this
quarter.


                          UNITED-GUARDIAN, INC.

                                SIGNATURES


     In accordance with 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.


                                       UNITED-GUARDIAN, INC.
                                       (Registrant)


                                       By: Alfred R. Globus
                                           Alfred R. Globus
                                           Chief Executive Officer


                                       By: Kenneth H. Globus
                                           Kenneth H. Globus
                                           Chief Financial Officer

Date:  May 12, 1998


                                     8