SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549                              



                                  FORM 10-Q
                 QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934.


    For Quarter Ended September 30, 1997  Commission file number 0-3390


                        UNIMED PHARMACEUTICALS, INC.
           (Exact name of registrant as specified in its charter)



              DELAWARE                           22-1685346
               (State or other                  (I.R.S. Employer
     jurisdiction of incorporation or       Identification Number)
     organization)

         2150 E. Lake Cook Rd.,                   60089
        Buffalo Grove, Illinois                 (Zip Code)
         (Address of principal                 
     principal executive offices)

       Registrant's telephone number           (847) 541-2525
             including area code          



       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.

       Indicate the  number  of  shares outstanding  of  each  of  the
       issuer's classes of common stock, as of the close of the period
       covered by this report:

        Title of each class         Number of shares outstanding
            Common Stock                      8,870,299
          ($.25 par value)
    <PAGE>

              UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY        Page
                                                                Number


     PART I.    Financial Information
     
        ITEM 1.     Financial Statements
       
                      Condensed Consolidated Balance Sheets        3

                      Consolidated Statements of Operations        5

                      Consolidated Statements of Cash Flows        6

                      Notes to Condensed Consolidated              7
                      Financial Statements

        ITEM 2.     Management's Discussion and Analysis of        
                    Results of Operations and Financial            8
                    Condition


     PART II.    Other Information                                11
    

     SIGNATURE PAGE                                               12
    <PAGE>
    <TABLE>                                        

       PART I - FINANCIAL INFORMATION

       Item 1 - Financial Statements
       UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
       Condensed Consolidated Balance Sheets
                                                             
                                             September     December     
                                                30,           31,

                                               1997          1996
       ASSETS                               (unaudited)
       <S>                                   <C>          <C>
       Current assets:
          Cash and cash equivalents          $2,150,324   $4,458,889
          Short-term investments             14,082,449   16,370,897
          Receivables:
            Trade                             1,600,933    1,876,807
            Other                               108,912       78,109

              Total receivables               1,709,845    1,954,916

          Inventories                         3,744,325    4,184,855
          Prepaid expenses                      262,677      108,457

            Total current assets             21,949,620   27,078,014

       Equipment and leasehold                
        improvements, at cost                 2,457,022    2,035,807
       Less accumulated depreciation and      
        amortization                          1,383,918    1,227,790

           Net                                1,073,104      808,017

       Investment in, and subordinated
        debenture from,                             
        Romark Laboratories, L.C.             2,275,910    2,275,910
       Product rights, net of                 
        amortization                          6,071,775      584,934

           Total assets                     $31,370,409  $30,746,875

         See accompanying notes to consolidated financial statements.
      </TABLE>
      <PAGE>
      <TABLE>
       Item 1 - Financial Statements  
       UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
       Condensed Consolidated Balance Sheets
                      
                                                     September    December 
                                                     30, 1997     31, 1996
                                                   (unaudited)

     LIABILITIES AND STOCKHOLDERS' EQUITY
     <S>                                           <C>          <C>
     Current liabilities:
       Accounts payable                            $   657,513  $   376,761
       Accrued and other liabilities                   982,343    1,210,664
       Due to Roxane Laboratories, Inc.              4,017,504    4,945,801
       Deferred research and development revenues      411,145    1,643,887
       Current portion of long-term obligation       1,034,836        - - -     
         Total current liabilities                   7,103,341    8,177,113

     Long-term obligation                            1,213,000        - - -
         Total liabilities                           8,316,341    8,177,113

     Stockholders' equity:
       Common stock, $.25 par value; authorized
        30,000,000 shares; issued and outstanding:
        8,968,799 and 8,775,499, respectively        2,242,200    2,193,875
       Additional paid-in capital                   27,824,405   27,340,665
       Accumulated deficit                          (6,491,971)  (7,005,726)
       Accumulated foreign currency translation              
        adjustment                                      40,892       40,948
                                                    23,615,526   22,569,762
       Less:  treasury stock at cost (98,500 and
        0 shares at September 30, 1997 and
        December 31, 1996, respectively)              (561,458)       - - -
             Total stockholders' equity             23,054,068   22,569,762
         Total liabilities and stockholders'                            
          equity                                  $ 31,370,409 $ 30,746,875
       
        See accompanying notes to consolidated financial statements.
      </TABLE>
      <PAGE>
      <TABLE>
       UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
       Consolidated Statements of Operations
       Three and Nine Months Ended September 30, 1997 and 1996
       (Unaudited)
                                  Three Months Ended      Nine Months Ended
                                    September 30,           September 30,
                                   1997       1996       1997        1996

<S>                             <C>        <C>        <C>        <C>          
Net sales                       $2,864,203 $2,088,692 $6,657,026 $5,337,514
Research and development               
 revenue                           527,851    309,815  1,272,911    554,518
Total revenue                    3,392,054  2,398,507  7,929,937  5,892,032
Cost of sales                    1,045,803    855,539  2,264,315  2,354,236

Gross profit                     2,346,251  1,542,968  5,665,622  3,537,796

Operating and administrative       
 expenses                          561,826    572,202  1,825,552  1,644,510
Sales and marketing expenses       886,445    379,075  1,923,857    899,871
Research and development
 expenses                        1,077,178    488,149  2,420,877  1,264,058
Total expenses                   2,525,449  1,439,426  6,170,286  3,808,439

(Loss) income from operations     (179,198)   103,542   (504,664)  (270,643)

Other income (expense):
   Interest income                 259,049    296,324    797,605    755,998
   Product right sublicense gain   150,000      - - -    300,000    311,075
   Gain on sale of trademark         - - -      - - -      - - -    200,000
   Other expense                   (33,937)    (8,002)   (79,186)   (29,021)

Income before income taxes         195,914    391,864    513,755    967,409

Income tax expense                   - - -      - - -      - - -      4,069
                                                                     
Net income                       $ 195,914  $ 391,864  $ 513,755  $ 963,340

Net income per share:
   Primary                        $    .02   $    .04   $    .06   $    .11
   Fully diluted                  $    .02   $    .04   $    .06   $    .11
Weighted average number of
 common and common equivalent 
 shares outstanding:
   Primary                       8,882,573  9,242,164  8,879,161  8,763,683
   Fully diluted                 9,072,380  9,374,925  9,189,348  9,038,816
                                                    
      See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
   UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
   Consolidated Statements of Cash Flows
   Nine Months Ended September 30, 1997 and 1996
   (Unaudited)
                                                 Nine Months Ended
                                                 September 30,
                                                1997         1996
   <S>                                      <C>          <C>
   Cash flows provided from operations:
   Net income                               $  513,755   $  963,340
   Adjustments to reconcile net income to
    net cash provided by operations:            
     Depreciation and amortization             335,466      136,844
     Write-off of investments                    - - -       29,021
     Decrease in receivables                   245,015      247,655
     Decrease (Increase) in inventories        440,530   (1,353,485)
     (Increase) Decrease in prepaid
      expenses                                (154,220)     131,019
     Decrease in payables, accrued and         
      other liabilities                         52,431      326,142
     (Decrease) Increase in due to Roxane                 
      Laboratories, Inc.                      (928,297)   1,505,121
       Net cash provided from operating        
        activities                             504,680    1,985,657

   Cash flows used in investing
    activities:                               
     Capital expenditures, net                (463,558)     (68,746)
     Sale (Purchase) of short-term
      investments, net                       2,288,448  (14,883,059)          )
     Investment in and subordinated
      debenture from                                 
      Romark Laboratories, L.C.                  - - -   (1,675,910)
     Product rights acquisition             (3,376,000)       - - -
      Net cash used in investing
       activities                           (1,551,110) (16,627,715) 

   Cash flows (used in) provided from
   financing activities:
     Acquisition of treasury stock            (561,458)       - - -
     Proceeds from payment of note              
      receivable                                 - - -      132,252
     Proceeds from issuance of common          
      stock                                    532,065   10,375,500
     Deferred research and development
      revenues, net                         (1,232,742)     653,697
       Net cash (used in) provided from     
        financing activities                (1,262,135)  11,161,449

   Decrease in cash and cash equivalents    (2,308,565)  (3,480,609)
   Cash and cash equivalents at beginning    
    of period                                4,458,889    7,011,843
   Cash and cash equivalents at end of                           
    period                                 $ 2,150,324  $ 3,531,234
  <PAGE>
   Supplemental disclosures of cash flow
    information:
   Cash paid during the period for:                              
    Income taxes                           $     - - -  $     5,769
   Obligation assumed due to product
    rights acquisitions,                                          
    including imputed interest             $ 2,247,836  $     - - -
  
      See accompanying notes to consolidated financial statements.
  </TABLE>
  <PAGE>

                 UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
          Notes to Condensed Consolidated Financial Statements
                           September 30, 1997
                               (Unaudited)
       
   NOTE 1

   The  condensed   consolidated  financial   information  herein   is
   unaudited, other than the  Condensed Consolidated Balance Sheet  at
   December 31,  1996, which  is derived  from the  audited  financial
   statements.  The unaudited interim financial statements include the
   accounts of UNIMED Pharmaceuticals,  Inc. (the Company), and  its
   wholly-owned subsidiary, Unimed Canada, Inc.

   In the opinion of the  Company, the accompanying unaudited  interim
   consolidated   financial   statements   contain   all   adjustments
   (consisting of normal recurring  adjustments) necessary to  present
   fairly  the  Company's  consolidated   financial  position  as   of
   September 30, 1997,  the results of  operations for  the three  and
   nine months ended September 30, 1997  and 1996 and changes in  cash
   flows for the nine month periods ended September 30, 1997 and 1996.

   While the  Company  believes  that the  disclosures  presented  are
   adequate to make  the information not  misleading, it is  suggested
   that these condensed consolidated  financial statements be read  in
   conjunction with the financial statements and notes included in the
   Company's 1996 annual report on Form 10-K filed with the Securities
   and Exchange Commission.
  <PAGE>
   Item 2

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
                   OPERATIONS AND FINANCIAL CONDITION
   
   Results of Operations

   Nine Months Ended September 30, 1997 vs. Nine Months Ended
   September 30, 1996

   Total  revenue  for  the  nine  months  ended  September  30,  1997
   increased  35%  over  total  revenue  for  the  nine  months  ended
   September 30,  1996.   Total  revenue  consists of  net  sales  and
   research and development revenue.  Net  income was $513,755 or  six
   cents per share for the nine months ended September 30, 1997.   Net
   income for the nine months ended September 30, 1996 was $963,340 or
   eleven cents per share.

   Net sales for the  nine months ended  September 30, 1997  increased
   25% or $1,319,512 to $6,657,026 compared to net sales of $5,337,514
   for the nine months ended September 30, 1996.  The increase in  net
   sales was attributable to a combination of a 12% sales increase  in
   Marinol[R]  (dronabinol)  due  to   higher  unit  volume  and   the
   introduction  in   March  of   Maxaquin[R]  (lomefloxacin),   which
   generated sales of  $670,379 for  the period  ending September  30,
   1997.

   Total revenue, in  addition to  net sales,  included $1,272,911  in
   research and  development  revenue  recognized in  the  nine  month
   period ended September 30, 1997, a $718,393 increase over  research
   and development recognized in the nine month period ended September
   30, 1996.  The Company expects to recognize the remaining  deferred
   research and development revenue prior to the end of 1997.

   Cost of sales  decreased slightly  by $89,921  or 4%  for the  nine
   month period ended September  30, 1997 compared  to the nine  month
   period ended September 30, 1996.  This decrease is due primarily to
   lower Marinol raw  material costs.   Cost of sales  expressed as  a
   percent of net  sales decreased to  34% for the  nine month  period
   ended September 30, 1997 from 44% for the same period in 1996. This
   decrease is primarily  attributable to lower  Marinol raw  material
   costs.

   Operating and administrative expenses increased for the nine months
   ended September 30, 1997 by $181,042 or 11%.  This increase is  due
   in part to personnel-related expenses and expenses associated  with
   expansion  of   the   corporate  headquarters.      Operating   and
   administrative expenses as a percentage of  net sales were 27%  and
   31% in the nine  month periods ended September  30, 1997 and  1996,
   respectively.
   <PAGE>
   Sales and marketing  expenses increased $1,023,986  or 114% in  the
   nine month period  ended September 30,  1997 as  the Company  began
   Maxaquin-related product  launch programs  and expanded  the  sales
   force, sales  management  and  managed  care  groups.    Sales  and
   marketing expenses were 29% and 17% of net sales for the nine month
   periods ended September 30, 1997 and 1996, respectively.
   
   Research and  development expenses  during  the nine  months  ended
   September 30, 1997  were $2,420,877 compared  to $1,264,058 in  the
   same period in 1996.  Research and development expenses were 36% of
   net sales for the nine months ended September 30, 1997 and 24 %  of
   net sales for  the same period  in 1996.   The increase  is due  to
   accelerated clinical  development which included  the  addition  of
   clinical  and  regulatory  staff  to  manage  clinical  development
   programs.   Research and  development expenses  of $2,420,877  were
   partially offset by research and development revenue of  $1,272,911
   recognized in the nine months ended  September 30, 1997.   Research
   and development expenses  of $1,264,058 for  the nine month  period
   ended September  30, 1996  were partially  offset by  research  and
   development revenues of $554,518.

   The Company expects research  and development expenses to  increase
   as planned product development continues and to be partially offset
   by research and development revenues through the end of 1997.
   <PAGE>

   Three Months  Ended  September  30, 1997  vs.  Three  Months  Ended
   September 30, 1996

   Total revenue  for  the  three  months  ended  September  30,  1997
   increased 41%  over  total  revenue  for  the  three  months  ended
   September 30,  1996.   Total  revenue  consists of  net  sales  and
   research and development revenue.  Net  income was $195,914 or  two
   cents per share for the three months ended September 30, 1997.  Net
   income for the three months ended  September 30, 1996 was  $391,864
   or four cents per share.

   Net sales  for  the three  months  ended September  30,  1997  were
   $2,864,203, representing an increase of 37% or $775,511 compared to
   net sales of $2,088,692  for the three  months ended September  30,
   1996.  The increase in net sales was attributable to a  combination
   of a 20% increase in Marinol sales for the quarter ended  September
   30, 1997 and the introduction in March of Maxaquin which  generated
   net sales of $355,178 for the quarter.

   Total revenue,  in  addition to  net  sales, included  $527,851  in
   research and  development revenue  recognized  in the  three  month
   period ended September 30, 1997.  The Company expects to  recognize
   the remaining deferred  research and development  revenue prior  to
   the end of 1997.

   Cost of sales  increased by  $190,264 or  22% for  the three  month
   period ended September 30, 1997 compared to the three month  period
   ended  September  30,  1996.     This  increase   is  due  to   the
   corresponding increase  in Marinol  sales and  an increase  in  the
   reserve for inventory.  Cost of sales expressed as a percent of net
   sales decreased to 37% from 41% for the same period in 1996 due  to
   lower Marinol raw material costs.

   Operating and administrative expenses decreased slightly during the
   three month  period ended  September 30,  1997  by $10,376  or  2%.
   Operating and administrative expenses as a percentage of net  sales
   were 20% in the three months  ended September 30, 1997 compared  to
   27% for the same period in 1996.

   Sales and  marketing expenses  increased $507,370  or 134%  in  the
   three month period ended September 30, 1997 as the Company promoted
   Maxaquin-related product  launch programs  and expanded  the  sales
   force, sales  management  and  managed  care  groups.    Sales  and
   marketing expenses were 31% of net sales in the three month  period
   ended September 30,  1997 compared to  18% for the  same period  in
   1996.

   Research and development expenses in  the three month period  ended
   September 30, 1997  were $1,077,178,  compared to  $488,149 in  the
   same period ended in 1996.  Research and development expenses  were
   38% and  23%  of  net  sales for  the  three  month  periods  ended
   September  30,  1997  and   1996, respectively.   The  increase  is
   due to accelerated clinical development which included the addition
   of clinical  and regulatory  staff to  manage clinical  development
   programs.  The research and development expenses of $1,077,178 were
   offset by research and  development revenue of $527,851  recognized
   in the three months ended September  30, 1997.  For the same  three
   month period in 1996, research and development expenses of $488,149
   were partially  offset  by  research and  development  revenues  of
   $309,815.
   <PAGE>
   Liquidity and Capital Resources

   At September 30, 1997,  the Company had  cash and cash  equivalents
   and short-term investments of  $16,232,773 compared to  $20,829,786
   at December 31, 1996, a decrease  of $4,597,013.  This decrease  is
   primarily the result  of the acquisition  of the  two new  products
   referred to below and research and development costs.

   The Company generated  net cash from  operations totaling  $504,680
   for the nine months ended September 30, 1997.  Current  receivables
   decreased by $245,071 due  to receipt of cash  due under a  royalty
   payment from  the Company's  distributor of  Marinol.   Inventories
   decreased $440,530 due to ongoing sales  of Marinol and the  timing
   of new inventory deliveries.

   On February 28, 1997, the Company  acquired from G.D. Searle &  Co.
   (Searle), a wholly-owned  subsidiary of the  Monsanto Company,  the
   U.S. marketing and distribution rights to Maxaquin  (lomefloxacin),
   a fluoroquinolone anti-infective  drug.  In  addition, Unimed  will
   make sales-based  distribution fee  payments to  Searle during  the
   term of the agreement.  The  Company also recorded long and  short-
   term obligations along with imputed interest on that obligation, to
   be paid January 2, 1998 and 1999, respectively.

   In May 1997, the Company initiated a stock repurchase program.   To
   date, this program and other stock repurchases have accounted for a
   decrease in cash of $561,458.

   In July  1997,  the Company  acquired  from Syntex  all  rights  to
   oxymethelone, an orally active anabolic androgenic steroid used  to
   treat anemias,  for the  United States,  Mexico  and Canada.    The
   Company will pay to Syntex a licensing fee, in three  installments,
   and a royalty  on net product  sales.  The  Company paid the  first
   installment in July.

   Forward-Looking Statements

   When used in  this discussion, the  words believes and  expects
   and similar expressions  are intended  to identify  forward-looking
   statements.   Such  statements are  subject  to certain  risks  and
   uncertainties, over which the Company  has no control, which  could
   cause actual  results to  differ materially  from those  projected.
   Readers are cautioned not to place undue reliance on these forward-
   looking statements which  speak only as  of the date  hereof.   The
   Company undertakes  no obligations  to republish  revised  forward-
   looking statements  to reflect  events or  circumstances after  the
   date thereof or to reflect the occurrence of unanticipated  events.
   Readers are also urged to carefully review and consider the various
   disclosures made by  the Company, in  this report, as  well as  the
   Company's periodic reports filed  with the Securities and  Exchange
   Commission.
   <PAGE>
  
   PART II - OTHER INFORMATION
                                   

   Item 1.        Legal Proceedings             None


   Item 2.        Changes in Securities         None


   Item 3.        Defaults    Upon    Senior   
                   Securities                   None

   Item 4.        Submission of  Matters  to    
                   Vote of Security Holders     None


   Item 5.        Other Information             None


   Item 6.        Exhibits  and  Reports  on
                   Form 8-K
                                             
                     (a)  Exhibit 27            Financial Data Schedule
                     (b)  Reports on Form 8-K   None
  <PAGE>                
                          
          

                             SIGNATURE PAGE


   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.



                  UNIMED PHARMACEUTICALS, INC.


               


   Date: November 14, 1997     By:  /s/ David E. Riggs
                                   David E. Riggs
                                   Senior Vice President, Chief Financial
                                    Officer, Secretary and Treasurer