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 June 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 jurisdiction of      (I.R.S. Employer Identification 
      incorporation or organization)                   Number)
       

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

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



          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                     8,868,299
             ($.25 par value)

<PAGE>

                  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY

                                                                    Page
                                                                   Number

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

                       Condensed Consolidated Statements of           5
                       Operations
                       Condensed Consolidated Statements of Cash      6
                       Flows
                       Notes to Condensed Consolidated Financial      7
                       Statements

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

                                                 June 30,   December 31,
                                                   1997        1996
          ASSETS                                (unaudited)
          <S>                                  <C>         <C>
          Current assets:
          Cash and cash equivalents            $ 3,229,911 $ 4,458,889
          Short-term investments                14,067,094  16,370,897
          Receivables:
            Trade                                1,165,576   1,876,807
            Other                                  167,063      78,109

              Total receivables                  1,332,639   1,954,916

          Inventories                            4,146,676   4,184,855
          Prepaid expenses                         310,776     108,457

              Total current assets              23,087,096  27,078,014

          Equipment and leasehold               
           improvements, at cost                 2,379,809   2,035,807
          Less accumulated depreciation and      
           amortization                          1,321,464   1,227,790

              Net                                1,058,345     808,017

          Investment in and subordinated
            debenture from Romark
            Laboratories, L.C.                   2,275,910   2,275,910
          Product rights, net of
            amortization                         5,203,652     584,934

              Total assets                     $31,625,003 $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
          
                                                        June 30,   December 31,
                                                          1997        1996
                                                      (unaudited)

        LIABILITIES AND STOCKHOLDERS' EQUITY
        <S>                                            <C>         <C>
        Current liabilities:
          Accounts payable                             $  219,694  $  376,761
          Accrued and other liabilities                 1,110,210   1,210,664
          Due to Roxane Laboratories, Inc.              4,741,733   4,945,801
          Deferred research and development revenues      929,132   1,643,887
          Current portion of long-term obligation         484,000       - - -
            Total current liabilities                   7,484,769   8,177,113

        Long-term obligation                            1,213,000       - - -
            Total liabilities                           8,697,769   8,177,113

        Stockholders' equity:
          Common stock, $.25 par value; authorized
           30,000,000 shares; issued and outstanding:
           8,958,799 and 8,775,499                      2,239,700   2,193,875
          Additional paid-in capital                   27,797,360  27,340,665
          Accumulated deficit                          (6,687,885) (7,005,726)
          Accumulated foreign currency translation         
           adjustment                                      41,035      40,948
                                                       23,390,210  22,569,762
          Less:  treasury stock at cost (90,500 and
           0 shares at respective dates)                 (462,976)      - - -
                Total stockholders' equity             22,927,234  22,569,762
            Total stockholders' equity and                                 
             liabilities                              $31,625,003 $30,746,875
  
          See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>                                         
<TABLE>
          UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
          Consolidated Statements of Operations
          Three and Six Months Ended June 30, 1997 and 1996
          (Unaudited)
                                  Three Months Ended      Six Months Ended
                                       June 30,               June 30,
                                   1997       1996       1997        1996
<S>                             <C>        <C>        <C>        <C>         
Net sales                       $1,821,940 $1,692,575 $3,792,823 $3,248,822
Research and development          
 revenue                           302,333     72,523    745,060    244,703
Total revenue                    2,124,273  1,765,098  4,537,883  3,493,525
Cost of sales                      625,112    820,146  1,218,512  1,498,697

Gross profit                     1,499,161    944,952  3,319,371  1,994,828

Operating and administrative       
 expenses                          482,262    512,972  1,263,726  1,072,308
Sales and marketing expenses       551,962    302,017  1,037,412    520,796
Research and development           
 expenses                          624,569    344,838  1,343,699    775,909
Total expenses                   1,658,793  1,159,827  3,644,837  2,369,013
Loss from operations              (159,632)  (214,875)  (325,466)  (374,185)

Other income (expense):
   Interest income                 263,648    265,837    538,556    459,674
   Product right sublicense         
    gain                             - - -    311,075    150,000    311,075
   Gain on sale of trademark         - - -      - - -      - - -    200,000
   Other expense                   (33,916)     - - -    (45,249)   (21,019)

Income before income taxes          70,100    362,037    317,841    575,545

Income tax expense                   - - -     10,000      - - -      4,069
                                                                     
Net income                         $70,100   $352,037   $317,841   $571,476
                                    
Net income per share:
   Primary                            $.01       $.04       $.04       $.07
   Fully diluted                      $.01       $.04       $.03       $.07
Weighted average number of
 common and common equivalent 
 shares outstanding:
   Primary                       8,886,024  9,268,939  8,833,727  8,557,441
   Fully diluted                 9,069,464  9,300,710  9,224,899  8,790,838
   See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
          UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
          Condensed Consolidated Statements of Cash Flows
          Six Months Ended June 30, 1997 and 1996
          (Unaudited)
                                                       Six Months Ended
                                                          June 30,
          <S>                                           1997       1996
          Cash flows provided by operations:        <C>          <C>
          Net income                                $ 317,841    $ 571,476
          Adjustments to reconcile net income to
          net cash provided by operations:
            Depreciation and amortization             212,374       90,249
            Write-off of Investment in Medisperse       - - -       21,019
            Other                                          86        1,949
            Decrease in current receivables           622,277    1,345,772
            Decrease (Increase) in inventories         38,179   (1,639,239)
            (Increase) Decrease in prepaid          
             expenses                                (202,319)       5,876
            Decrease in payables, accrued and        
             other liabilities                       (257,521)     (21,818)
            (Decrease) Increase in due to Roxane                
             Laboratories, Inc.                      (204,068)   1,441,270
              Net cash provided by operating          
               activities                             526,849    1,816,554

          Cash flows used in investing
           activities:                               
            Capital expenditures, net                (384,419)     (30,308)
            Sale (Purchase) of short-term           
             investments, net                       2,303,803  (14,821,262) 
            Product rights acquisition             (3,000,000)       - - -
              Net cash used in investing
               activities                          (1,080,616) (14,851,570)  

          Cash flows (used in) provided by
           financing activities:
            Acquisition of treasury stock            (462,976)       - - -
            Proceeds from payment of note               
             receivable                                 - - -      132,252
            Proceeds from issuance of common          
             stock                                    502,520   10,191,114
            Deferred research and development
             revenues, net                           (714,755)     963,512
              Net cash (used in) provided by         
               financing activities                  (675,211)  11,286,878

          Decrease in cash and cash equivalents    (1,228,978)  (1,748,138)
          Cash and cash equivalents at beginning    
           of period                                4,458,889    7,011,843
          Cash and cash equivalents at end of                           
           period                                  $3,229,911   $5,263,705

          Supplemental disclosures of cash flow
           information:
          Cash paid during the period for:                             
            Income taxes                          $     - - -   $    5,769
          Obligation assumed due to product
           rights acquisition,                                           
           including imputed interest             $ 1,697,000   $    - - -
        See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>

                   UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
              Notes to Condensed Consolidated Financial Statements
                                 June 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 June  30,  1997, the  results  of
          operations for the three and six months ended June 30,  1997
          and 1996 and changes in cash flows for the six month periods
          ended June 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

          Six Months Ended June 30, 1997 vs. Six Months Ended June 30,
          1996

          Total revenue  for  the  six  months  ended  June  30,  1997
          increased 30 percent over total  revenue for the six  months
          ended June 30, 1996.   Total revenue  consists of net  sales
          and research  and  development  revenue.    Net  income  was
          $317,841 or three cents per share  for the six months  ended
          June 30, 1997.  Net income for the six months ended June 30,
          1996 was $571,476 or seven cents per share.

          Net sales for the six months  ended June 30, 1997  increased
          17 percent or $544,001 to  $3,792,823 compared to net  sales
          of $3,248,822 for the six months  ended June 30, 1996.   The
          increase in net sales was attributable to a combination of a
          7% sales increase in Marinol [R] (dronabinol) due to  higher
          unit volume and  the introduction in  March of Maxaquin  [R]
          (lomefloxacin), which generated  sales of  $315,201 for  the
          period ending June 30, 1997.

          Total revenue, in addition  to net sales, included  $745,060
          in research and development revenue in the six month  period
          ended June 30, 1997.  The  Company expects to recognize  the
          remaining deferred research and development revenue prior to
          the end of 1997.

          Cost of sales decreased  by $280,185 or  19 percent for  the
          six month period  ended June 30,  1997 compared  to the  six
          month period ended June 30, 1996.   This decrease is due  to
          lower Marinol inventory costs.  Cost of sales expressed as a
          percent of  net sales  decreased to  32% for  the six  month
          period ended June 30, 1997 from  46% for the same period  in
          1996.

          Operating and administrative expenses increased for the  six
          months ended June 30, 1997 by $191,418 or 18 percent.   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 33%  in both six month  periods
          ended June 30, 1997 and 1996, respectively.

          Sales and marketing  expenses increased $516,616  or 99%  in
          the six  month period  ended June  30, 1997  as the  Company
          began Maxaquin-related product launch programs and  expanded
          the sales  force and  sales management  groups.   Sales  and
          marketing expenses were 27% and 16% of net sales for the six
          month periods ended June 30, 1997 and 1996, respectively.
<PAGE>
          Research and  development  expenses during  the  six  months
          ended June 30, 1997 were $1,343,699 compared to $775,909  in
          the same period in 1996.  Research and development  expenses
          were 35% of  net sales  for the  six months  ended June  30,
          1997, and 24  percent of net  sales for the  same period  in
          1996.  The increase  is due to   clinical development  which
          included the addition  of clinical and  regulatory staff  to
          manage  clinical   development  programs.     Research   and
          development expenses of $745,060 were offset by research and
          development revenue in the six months ended June 30, 1997.

          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.


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

          Total revenue  for  the three  months  ended June  30,  1997
          increased twenty percent  over total revenue  for the  three
          months ended June 30, 1996.   Total revenue consists of  net
          sales and research and development revenue.  Net income  was
          $70,100 or one  cent per share  for the  three months  ended
          June 30, 1997.  Net income  for the three months ended  June
          30, 1996 was $352,037 or four cents per share.

          Net sales  for the  three months  ended June  30, 1997  were
          $1,821,940, representing  an increase  of eight  percent  or
          $129,365 compared to net sales  of $1,692,575 for the  three
          months ended June 30, 1996.   The increase in net sales  was
          attributable to a  combination of a  2% decrease in  Marinol
          sales  for  the  quarter  ended   June  30,  1997  and   the
          introduction in March of Maxaquin which generated net  sales
          of $158,021 for the quarter.  The Marinol sales decrease was
          attributable to a decrease in foreign Marinol sales.

          Total revenue, in addition  to net sales, included  $302,333
          in research  and  development  revenue in  the  three  month
          period  ended  June  30,  1997.    The  Company  expects  to
          recognize the  remaining deferred  research and  development
          revenue prior to the end of 1997.

          Cost of sales decreased  by $195,034 or twenty-four  percent
          for the three month period ended  June 30, 1997 compared  to
          the three month period ended June  30, 1996.  This  decrease
          is due  to lower  Marinol inventory  costs.   Cost of  sales
          expressed as a percent  of net sales  decreased to 34%  from
          48% for the same period in 1996.

          Operating and administrative  expenses decreased during  the
          three month period  ended June 30,  1997 by  $30,710 or  six
          percent.    Operating  and  administrative  expenses  as   a
          percentage of net sales were 26%  in the three months  ended
          June 30, 1997 compared to 30% for the same period in 1996.
<PAGE>
          Sales and marketing  expenses increased $249,945  or 83%  in
          the three month period  ended June 30,  1997 as the  Company
          began Maxaquin-related product launch programs and  expanded
          the sales  force and  sales management  groups.   Sales  and
          marketing expenses were 30% of net sales in the three  month
          period ended  June 30,  1997 compared  to 18%  for the  same
          period in 1996.

          Research and development expenses in the three month  period
          ended June 30, 1997 were  $624,569, compared to $344,838  in
          the same period  ended in  1996.   Research and  development
          expenses were 34% and 20% of  net sales for the three  month
          periods ended June  30, 1997  and 1996,  respectively.   The
          increase is due to  clinical development which included  the
          addition of clinical and regulatory staff to manage clinical
          development programs.  The research and development expenses
          of $624,569 were offset by research and development  revenue
          of $302,333 for the three months ended June 30, 1997.

          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.


          Liquidity

          At June 30, 1997, the Company had cash, cash equivalents and
          short-term   investments   of   $17,297,005   compared    to
          $20,829,786 at December 31, 1996, a decrease of $3,532,781.

          The Company  generated  net cash  from  operations  totaling
          $526,851 for the six  months ended June  30, 1997.   Current
          receivables decreased by $622,277 due to receipt of cash due
          under a foreign  license agreement  and a  royalty from  the
          Company's distributor of Marinol.

          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  right  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 satisfied 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 $462,976.
<PAGE>
          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 None
                         Securities

          Item 4.        Submission of Matters to Vote
                           of Security Holders

          On April 24, 1997, at the Annual Meeting of  Stockholders,
          the  stockholders re-elected two  Directors.  The  results
          of the shareholder vote are shown below.

                                                             Broker
                                For    Against  Abstentions/  Non-
                                                  Withheld   votes
          John N. Kapoor     6,688,786     0      207,323      0
          Roland Weiser      6,688,786     0      207,323      0
                                  

          Item 5.        Other Information              None


          Item 6.        Exhibits and  Reports on  Form
                         8-K
                                                        None
                             (a)  Exhibits
                             (b)  Reports on Form 8-K

                              On June 20, 1997, the Company filed  a
                              Current  Report  on  Form  8-K  and  a
                              Current   Report   on  Form   8-A   to
                              announce    the    adoption    of    a
                              Stockholder Rights Plan.

<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:    August 13, 1997      By:    /s/ Robert E. Dudley
                                        Robert E. Dudley
                                        Chief Executive Officer

                
     Date:    August 13, 1997      By:    /s/ David E. Riggs
                                        David E. Riggs
                                        Senior Vice President, Chief Financial
                                          Officer, Secretary and Treasurer