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 March 31, 1998   Commission file number 0-3390


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



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

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


 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                             8,943,444
       ($.25 par value)                    

 <PAGE>
     
               UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
                        
                                                             Page
                                                            Number

 PART I.  Financial Information
 
    ITEM 1.  Financial Statements
    
                 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 Condition     8
               
  
 PART II. Other Information                                   11
 

 SIGNATURE PAGE                                               12

<PAGE>
<TABLE>      

   PART I - FINANCIAL INFORMATION

   Item 1 - Financial Statements
   UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
   Consolidated Balance Sheets

                                         March 31,     December  31,
                                           1998            1997
                                        (unaudited)  
 ASSETS
   <S>                                  <C>             <C>                     
   Current assets:
     Cash and cash equivalents          $ 4,441,323     $ 1,068,279
     Short-term investments               6,997,709      13,718,834
     Receivables:
       Trade                              4,233,991       1,661,042
       Other                                129,314         116,978

         Total receivables                4,363,305       1,778,020

   Inventories                            3,809,792       4,386,904
   Prepaid expenses                         309,147         407,698

         Total current assets            19,921,276      21,359,735

   Equipment and leasehold                
    improvements, at cost                 2,627,983       2,555,857
   Less accumulated depreciation and      
    amortization                          1,527,577       1,452,217

         Net                              1,100,406       1,103,640
 
   Product rights, net of                 
    amortization                          1,596,592       1,626,349

       Total assets                     $22,618,274     $24,089,724
        
      See accompanying notes to consolidated financial statements.
  </TABLE>
  <PAGE>
  <TABLE>      
   Item 1 - Financial Statements
   UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
   Consolidated Balance Sheets


                                                 March 31,    December 31,
                                                   1998          1997  
                                                (unaudited)              
                                            
 LIABILITIES AND STOCKHOLDERS' EQUITY
 <S>                                           <C>           <C>
 Current liabilities:
   Accounts payable                            $ 2,085,090   $ 1,812,030
   Accrued and other liabilities                 2,757,090     1,806,687
   Due to Roxane Laboratories, Inc.              3,290,255     3,616,665
   Current portion of long-term obligation       1,419,910       914,836
     Total current liabilities                   9,552,345     8,150,218

 Long-term obligation                                    0     1,213,000
     Total liabilities                           9,552,345     9,363,218

 Stockholders' equity:
   Common stock, $.25 par value; authorized
    30,000,000 shares; issued and outstanding:
    9,051,944 and 9,040,942, respectively        2,262,986     2,260,236
   Additional paid-in capital                   28,245,145    28,201,420
   Accumulated deficit                         (16,922,135)  (15,215,214)
   Accumulated other comprehensive income           
    (Note 2)                                        41,391        41,522
                                                13,627,387    15,287,964
   Less: treasury stock at cost (108,500
    shares at March 31, 1998 and December 31, 
    1997, respectively)                           (561,458)     (561,458)
       Total stockholders' equity               13,065,929    14,726,506

     Total liabilities and stockholders'                            
      equity                                   $22,618,274   $24,089,724
  
      See accompanying notes to consolidated financial statements.
  </TABLE>
  <PAGE>
  <TABLE>
   UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
   Consolidated Statements of Operations
   Three Months Ended March 31, 1998 and 1997
   (Unaudited)

                                              Three Months Ended
                                                   March 31,
                                               1998        1997
   <S>                                     <C>          <C>
   Net sales                               $ 4,013,622  $ 1,970,883
   Cost of sales                               905,921      593,400

   Gross profit                              3,107,701    1,377,483

   Operating and administrative expenses       793,756      781,464
   Sales and marketing expenses              2,083,905      485,450
   Research and development expenses, net    2,104,882      276,403
   Total expenses                            4,982,543    1,543,317

   (Loss) from operations                   (1,874,842)    (165,834)

   Other income (expense):
       Interest income                         198,630      274,908
       Product right sublicense gain             - - -      150,000
       Other expense
                                               (30,709)     (11,333)

   (Loss) income before income taxes        (1,706,921)     247,741
                                            
   Income tax provision                          - - -        - - -
                                                              
   Net (loss) income                       $(1,706,921)  $  247,741
                                                 
   Net (loss) income per share:
       Basic                                 $    (.19)  $      .03
       Diluted                               $    (.19)  $      .03    
   Weighted average number of common and
     common equivalent shares outstanding:
       Basic                                 8,937,294    8,780,790
       Diluted                               9,189,348    9,113,948       
          
      See accompanying notes to consolidated financial statements.
 </TABLE>
 <PAGE>
 <TABLE>    
      UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
   Consolidated Statements of Cash Flows
   Three Months Ended March 31, 1998 and 1997
   (Unaudited)
                                              Three Months Ended
                                                   March 31,
                                               1998         1997
   <S>                                     <C>           <C>
   Cash flows (used in) provided by
    operations:                                                   
   Net (loss) income                       $(1,706,921)  $  247,741
   Adjustments to reconcile net (loss)
    income to net cash (used in)
    provided by operations:                           
     Depreciation and amortization             105,118       69,688
     (Increase) Decrease in receivables     (2,585,285)     258,224
     Decrease in inventories                   577,112      410,061
     Decrease (Increase) in prepaid                 
      expenses and other                        98,420     (151,363)
     Increase in payables, accrued and              
      other liabilities                      1,307,036       75,082
     (Decrease) in due to Roxane                          
      Laboratories, Inc.                      (326,410)    (513,859)
       Net cash (used in) provided by            
        operating activities                (2,530,930)     395,574

   Cash flows provided by (used in)
    investing activities:                       
     Capital expenditures, net                 (72,126)     (92,342)
     Sale (Purchase) of short-term           
      investments, net                       6,721,125    2,413,044
     Product rights acquisition                  - - -   (3,000,000)
       Net cash provided by (used in)        
        investing activities                 6,648,999     (679,298)

   Cash flows (used in) financing
   activities:
     Proceeds from issuance of common           
      stock                                     46,475       20,625
     Payments for product acquisition         
      obligations                             (791,500)       - - -
     Deferred research and development           
      revenues, net                              - - -     (434,287)
       Net cash (used in) financing           
        activities                            (745,025)    (413,662)

   Increase (Decrease) in cash and cash      
    equivalents                              3,373,044     (697,386)
   Cash and cash equivalents at beginning                 
    of period                                1,068,279    4,458,889
   Cash and cash equivalents at end of                           
    period                                 $ 4,441,323   $3,761,503

   Supplemental disclosures of cash flow
    information:
   Obligation assumed due to product
    rights acquisitions,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
                             March 31, 1998
                               (Unaudited)

   NOTE 1

   The  condensed   consolidated  financial   information  herein   is
   unaudited, other than the  Condensed Consolidated Balance Sheet  at
   December 31,  1997, 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  March
   31, 1998,  the results  of operations  for the  three months  ended
   March 31, 1998  and 1997 and  changes in cash  flows for the  three
   month periods ended March 31, 1998 and 1997.

   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  1997  annual  report  on  Form  10-K/A  filed  with  the
   Securities and Exchange Commission.

   NOTE 2

   During the three months ended March  31, 1998, the Company  adopted
   the provisions of Statement  of Financial Accounting Standards  No.
   130, _Reporting Comprehensive Income_.  Total comprehensive  income
   for the three  months ended March  31, 1998 and  1997 was $131  and
   $208, respectively.

   As of  March 31,  1998 and  December  31, 1997,  accumulated  other
   comprehensive income,  as  reflected on  the  consolidated  balance
   sheets, was comprised of the following:
 <TABLE>
                                     March 31,     December 31,
                                        1998          1997
   <S>                                <C>          <C>        
   Currency translation adjustment    $41,391      $41,522
     Accumulated other               
      comprehensive income            $41,391      $41,522
 </TABLE>
   NOTE 3

   Certain amounts for 1997 were reclassified to conform to current
   year presentation.
 <PAGE>

   Item 2

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
                   OPERATIONS AND FINANCIAL CONDITION


   Results of Operations

   Three Months Ended March 31, 1998 vs. Three Months Ended March 31,
   1997

   Net loss for  the three months  ended March 31,  1998 (the  "Fiscal
   1998 Period") was $1,706,921 or  nineteen cents per share  (basic).
   Net income for the three months  ended March 31, 1997 (the  "Fiscal
   1997 Period") was $247,741 or three cents per share (basic).

   Net  sales  for  the  Fiscal  1998  Period  increased  by  104%  or
   $2,042,739 to $4,013,622  compared to net  sales of $1,970,883  for
   the Fiscal 1997 Period.  The increase in net sales was attributable
   to a combination of a 27% sales increase in Marinol[R] (dronabinol)
   and a 69% sales increase in Maxaquin[R] (lomefloxacin), both due to
   higher  unit  volume,  and   to  the  introduction  of   Anadrol[R]
   (oxymetholone), an orally active  anabolic androgenic steroid  used
   to treat various anemias, which  generated net sales of  $1,449,974
   in February and March.  This  initial sales volume is  attributable
   to stocking the product distribution channels.

   Cost of sales  increased by  $312,521 or  53% for  the three  month
   period ended  March 31,  1998 compared  to the  three month  period
   ended March 31, 1997.   This increase is  due to higher unit  sales
   volume.   Cost  of  sales  expressed as  a  percent  of  net  sales
   decreased from 30% for the Fiscal  1997 Period to 23% for the  same
   period in 1998.   This decrease  is due to  a combination of  lower
   Marinol inventory  costs and  Maxaquin  and Anadrol  product  costs
   which are lower than those of Marinol.

   Operating and administrative expenses increased in the Fiscal  1998
   Period by $12,292 or 2%.  Operating and administrative expenses  as
   a percentage  of net  sales  were 20%  in  the Fiscal  1998  Period
   compared to 40% in the Fiscal 1997 Period.

   Sales and marketing expenses increased $1,598,455 to $2,083,905  in
   the Fiscal 1998 Period  as the Company  launched Anadrol and  began
   Anadrol  related  promotional  programs   as  well  as  adding   an
   integrated sales and marketing infrastructure that can provide  for
   the coordinated introduction of Anadrol to targeted markets.  Sales
   and marketing expenses  were 52% of  net sales in  the Fiscal  1998
   Period compared to 25% in the Fiscal 1997 Period.
 <PAGE>
   Net research and  development expenses  in the  Fiscal 1998  Period
   were $2,104,882 (research  and development  expenses of  $2,150,489
   less research  and development  revenues of  $45,607), compared  to
   $276,403  (research  and  development  expenses  of  $719,130  less
   research and development revenues of  $442,727) in the Fiscal  1997
   Period.  Research and  development expenses were  52% of net  sales
   for the Fiscal  1998 Period, and  14% of net  sales for the  Fiscal
   1997 Period.  This  increase is due  to clinical development  which
   included the acceleration of the two  Phase III studies related  to
   Androgel[TM] and Andractim[TM], the Company's two male testosterone
   replacement products, and the  addition of clinical and  regulatory
   staff to manage clinical development programs.

   Liquidity and Capital Resources

   At March  31, 1998,  the Company  had  cash, cash  equivalents  and
   short-term investments of $11,439,032,  compared to $14,787,113  at
   December 31,  1997, a  decrease of  $3,348,081.   This decrease  is
   primarily the  result of  payments on  obligations due  to  product
   acquisitions, an increase in  clinical development expenditures  as
   the Company continues to accelerate Phase III clinical trials,  and
   continued expansion of its sales and marketing efforts,  including,
   but not limited to, the launch of Anadrol.

   The Company used net cash in operations totaling $2,530,930 for the
   quarter ended March  31, 1998.   Current  receivables increased  by
   $2,585,285 due primarily to the  launch and subsequent stocking  of
   Anadrol  under  favorable  extended  payment  terms.    Inventories
   decreased $98,420 due to  ongoing product sales  and the timing  of
   new inventory deliveries.  Accrued and other liabilities  increased
   $950,403  due  primarily  to  the  reduction  in  gross  sales  for
   anticipated  Anadrol-related  rebates,  chargebacks,  returns   and
   discounts.

   Year 2000 Program

   The Company will continue to conduct a comprehensive review of  its
   computer systems to identify the systems that could be affected  by
   the _Year 2000_ issue and is  developing an implementation plan  to
   resolve the  issue.   The  Company  presently believes  that,  with
   modifications to existing software and converting to new  software,
   the  Year  2000  problem  will  not  pose  significant  operational
   problems for  the Company's  computer systems  as so  modified  and
   converted.  However, if such modifications and conversions are  not
   completed in a  timely manner,  the Year  2000 problem  may have  a
   material impact on the operations of the Company.
 <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  None
                   of Security Holders

   Item 5.        Other Information              None


   Item 6.        Exhibits and Reports  on Form
                  8-K
                                                 
                      (a)   Exhibits             None
                      (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: May 15, 1998        By: ________/s/  Ronald L. Goode_______
                                 Ronald L. Goode                                
                                 President and Chief Executive Officer
                                                              
   

   
   Date: May 15, 1998        By: ________/s/ David  E. Riggs_________
                                 David E. Riggs                                
                                 Senior Vice President, Chief Financial
                                  Officer, Secretary and Treasurer