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, 1996  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
incorporation or organization)           Identification Number)

2150 E. Lake Cook Rd.,                          60089
Buffalo Grove, Illinois                      (Zip Code)
(Address of 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 November 4, 1996:

     Title of each class     Number of shares outstanding
        Common Stock                 8,770,312
      ($.25 par value)
<PAGE>


              UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY



                                                           Page
                                                          Number


  PART I.   Financial Information

       ITEM 1.   Financial Statements
                  Condensed Consolidated Balance              
                  Sheets                                     3

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

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

  PART II.    Other Information                             12        
                                                        

  SIGNATURE PAGE                                            13
<PAGE>
<TABLE>
       
  PART I - FINANCIAL INFORMATION

  Item 1 - Financial Statements
  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
  Condensed Consolidated Balance Sheets
  (Unaudited)
  
                                        September     December
                                           30,           31,
                                          1996          1995
  ASSETS
  <S>                                  <C>           <C>
  Current assets:
  Cash and cash equivalents            $ 3,531,234   $ 7,011,843
  Short-term investments                16,271,815     1,388,756
  Receivables:
    Trade                                1,755,561     1,548,148
    Other                                   80,214       535,104

      Total receivables                  1,835,775     2,083,252

  Inventories                            4,681,424     3,327,939
  Prepaid expenses                         145,024       276,043

      Total current assets              26,465,272    14,087,833

  Leasehold improvements and
   equipment                             1,983,827     1,922,006
  Less accumulated depreciation and
   amortization                          1,180,785     1,050,866

      Net                                  803,042       871,140

  Investment in and subordinated 
   debenture from Romark
   Laboratories, L.C.                    2,275,910       600,000
  Other assets                             584,934       746,208

      Total assets                    $ 30,129,158  $ 16,305,181
                      
See accompanying notes to condensed consolidated financial statements.
</TABLE>                             
<PAGE>
<TABLE>                      
       
  Item 1 - Financial Statements
  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
  Condensed Consolidated Balance Sheets
  (Unaudited)
       
                                              September 30, December 31,
                                                  1996           1995

LIABILITIES AND STOCKHOLDERS' EQUITY
<S>                                           <C>            <C>
Current liabilities:
  Accounts payable                            $     310,067  $    416,705
  Accrued liabilities                               945,926       511,446
  Income taxes payable                               18,300        20,000
  Due to Roxane                                   5,221,754     3,716,633
  Deferred research and development revenues      1,653,697     1,000,000

    Total current liabilities                     8,149,744     5,664,784

Stockholders' equity:
  Common stock, $.25 par value; authorized
    30,000,000 and 12,000,000 shares; issued
    issued and outstanding:  8,761,312 and
    6,270,886                                     2,190,329     1,567,722
  Additional paid-in capital                     27,312,755    17,559,861
  Accumulated deficit                            (7,564,529)   (8,527,869)
  Accumulated foreign currency translation
   adjustment                                        40,859        40,683

    Total stockholders' equity                   21,979,414    10,640,397

    Total liabilities and stockholders'
      equity                                  $  30,129,158  $ 16,305,181

  See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>

  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
  Condensed Consolidated Statements of Operations  
  Three and Nine Months Ended September 30, 1996 and 1995
  (Unaudited)


                                 Three Months Ended      Nine Months Ended
                                    September 30            September 30
                                  1996       1995        1996        1995
<S>                            <C>         <C>         <C>        <C>
Net sales                      $2,088,692  $1,921,236  $5,337,514 $5,232,846
Research and development
revenue                           309,815      82,352     554,518     82,352
Total revenue                   2,398,507   2,003,588   5,892,032  5,315,198
Cost of sales                     855,539     887,289   2,354,236  2,301,331

Gross profit                    1,542,968   1,116,299   3,537,796  3,013,867

Operating and administrative
 expenses                         572,202     525,285   1,644,510  1,620,971
Sales and marketing expenses      379,075     253,669     899,871    796,581
Research and development
 expenses                         488,149     291,778   1,264,058    535,156
Total expenses                  1,439,426   1,070,732   3,808,439  2,952,708

Income (loss) from operations     103,542      45,567    (270,643)    61,159

Other income (expense):
   Interest income                296,324     100,647     755,998    320,581
   Product right sublicense               
    gain                            - - -       - - -     311,075      - - -
   Gain on sale of trademark        - - -       - - -     200,000      - - -
   Other expense                  (8,002)       - - -     (29,021)     - - -
                                 
Income before income taxes        391,864     146,214     967,409    381,740

Income tax expense (benefit)        - - -       - - -       4,069     (8,300)
                                                                  
Net income                       $391,864    $146,214    $963,340   $390,040
                                
Net income per share:
   Primary                          $ .04       $ .02       $ .11      $ .06
   Fully diluted                    $ .04       $ .02       $ .11      $ .06
Weighted average number of
 common and common equivalent 
 shares outstanding:            
   Primary                      9,242,164   7,115,098   8,763,683  6,909,105
   Fully duluted                9,374,925   7,131,381   9,038,816  7,070,081
                                                                     
   See accompanying notes to condensed consolidated financial statements.
</TABLE>                             
<PAGE>
<TABLE>
  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
  Condensed Consolidated Statements of Cash Flows
  Nine Months Ended September 30, 1996 and 1995
  (Unaudited)                                   Nine Months Ended          
                                                   September 30
                                               1996          1995
<S>                                         <C>           <C>
  Cash flows provided by operations:
  Net income                                $  963,340    $  390,040
  Adjustments to reconcile net income to
   net cash provided by operations:            
     Depreciation and amortization             136,844       133,463
     Write-off of investments                   29,021        50,000
     Other                                         176         (334)
     Decrease (increase) in current          
      receivables                              247,477       (89,351)
     Increase in inventories                (1,353,485)   (1,640,625)
     Decrease in prepaid expenses              131,019       175,815
     Increase in payables and accrued         
      liabilities                              326,142        28,054
     Increase in due to Roxane               1,505,121     2,161,238
       Net cash provided by operating      
        activities                           1,985,657     1,208,300

  Cash flows used in investing activities:
     (Purchase) sale of equipment, net         (68,746)       28,249
     (Purchase) sale of short-term       
      investments, net                     (14,883,059)        9,297
     Investment in and subordinated
      debenture from Romark                          
      Laboratories, L.C.                     1,675,910)     (500,000)
       Net cash used in investing               
        activities                         (16,627,715)     (462,454)

  Cash flows provided by financing
   activities:                                  
     Collection of note receivable             132,252         - - -
     Proceeds from issuance of stock        10,375,500       152,377
     Issuance of note receivable                 - - -      (132,252)
     Deferred research and development         
      revenue, net                             653,697       500,000
       Net cash provided by financing      
        activities                          11,161,449       520,125

  (Decrease) increase in cash and cash      
   equivalents                              (3,480,609)    1,265,971       
  Cash and cash equivalents at beginning of 
   period                                    7,011,843     6,101,093
  Cash and cash equivalents at end of                
   period                                  $ 3,531,234   $ 7,367,064
      
  Supplemental disclosures of cash flow
   information:
  Cash paid during the period for:                          
     Income taxes                             $  5,769      $  1,663

   See accompanying notes to condensed consolidated financial statements.
</TABLE>                              
<PAGE>
                                                
              UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
          Notes to Condensed Consolidated Financial Statements
                           September 30, 1996
                              (Unaudited)
                                                
  NOTE 1

  The  condensed   consolidated   financial  information   herein   is
  unaudited, other than  the Condensed Consolidated  Balance Sheet  at
  December 31,  1995,  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, 1996, the results  of operations for the  three and nine  months
  ended September 30, 1996 and 1995 and changes in cash flows for  the
  nine-month period ended September 30, 1996 and 1995.

  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 1995 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, 1996 vs. Nine Months Ended September
  30, 1995

  Total revenue for the nine months ended September 30, 1996 increased
  11% over total revenue for the nine months ended September 30, 1995.
  Total revenue consists  of net  sales and  research and  development
  revenue.  Net income was $963,340 or eleven cents per share for  the
  nine months  ended September  30, 1996.   Net  income for  the  nine
  months ended September 30, 1995 was $390,040 or six cents per share.

  Net sales for the nine months ended September 30, 1996 increased  2%
  or $104,668 to $5,337,514  compared to net  sales of $5,232,846  for
  the nine months ended September 30, 1995.  The increase in net sales
  was attributable to a $1,093,784 increase in Marinol[R] (dronabinol)
  sales, representing  a  26%  increase, for  the  nine  months  ended
  September 30, 1996, offset by two changes in the Company's  marketed  
  product line:  1) the sale  of the Company's property rights in  and
  regulatory approvals of Serc[R]  (betahistine HCl) to  Solvay-Duphar
  as of January 1, 1996 and 2) the termination of distribution of  the
  Company's  over-the-counter  products  as  of  December  31,   1995.
  Accordingly, no sales of Serc or the over-the-counter products  were
  recorded during  the nine  month period  ended September  30,  1996,
  whereas, net sales from Serc were $771,270 for the nine months ended
  September 30, 1995 and net  sales of over-the-counter products  were
  $217,846 for the nine months ended September 30, 1995.  The increase
  in Marinol sales for the nine month period ended September 30,  1996
  from $4,243,730 to $5,337,514  was due to higher  unit volume and  a
  price increase  in the  United  States, as  well  as the  launch  of
  Marinol in South Africa.   Marinol is currently  the sole source  of
  product sales to the Company.

  Total revenue included $554,518 in research and development  revenue
  in the  nine month  period ended  September  30, 1996  from  foreign
  licensors'  partial  support   of  clinical  development   programs.
  $1,653,697 of  future  research  and  development  expenditures  are
  expected to be offset by deferred research and development  revenues
  paid to the Company by foreign licensors.

  Interest  income  was  $755,998  in  the  nine  month  period  ended
  September 30, 1996, $435,417  higher than in  the nine month  period
  ended  September  30,  1995  primarily  due  to  higher   investment
  balances.
<PAGE>
  Cost of sales increased by $52,905  or 2% for the nine month  period
  ended September 30,  1996 compared to  the nine  month period  ended
  September 30,  1995.   This increase  is  due to  the  corresponding
  increase in Marinol  sales and a  provision for obsolete  inventory,
  offset by lower Marinol inventory costs in 1996 and  discontinuation
  of Serc and the Company's over-the-counter products.  Cost of  sales
  expressed as a  percent of  net sales was  44% for  both nine  month
  periods ended September 30, 1996 and 1995, respectively.

  Operating and administrative expenses increased for the nine  months
  ended  September  30,  1996  by  $23,539  or  1%.    Operating   and
  administrative expenses as a  percentage of net  sales were 31%  for
  both  nine  month  periods  ended  September  30,  1996  and   1995,
  respectively.

  Sales and marketing expenses increased $103,290  or 13% in the  nine
  month period ended  September 30, 1996  as the Company  added a  new
  executive responsible for commercial development of new and acquired
  products.  Sales and  marketing expenses expressed  as a percent  of
  net sales increased to 17% from 15% for the same period in 1995.

  Research and  development  expenses  during the  nine  months  ended
  September 30, 1996 were $1,264,058 compared to $535,156 in the  same
  period in 1995.  Research and  development expenses were 24% of  net
  sales for the nine months ended  September 30, 1996, and 10% of  net
  sales for the same period in 1995.  The increase is due to  clinical
  development of NTZ, Androgel[TM] and Androgel[TM]-DHT which included
  the addition of  clinical and  regulatory staff  to manage  clinical
  development programs.   Unimed has an  exclusive license to  develop
  and market oral  dosage formulations  of NTZ  for human  use in  the
  United  States,  Canada,  Australia  and  New  Zealand  from  Romark
  Laboratories, L.C. of Tampa, Florida, and an exclusive license  from
  Besins Iscovesco of  Paris, France covering  the Androgel  products.
  The research and development  expenses of $1,264,058 were  partially  
  offset by research and development revenue  of $554,518 in the  nine
  months ended September 30, 1996.

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

  Three Months  Ended  September  30,  1996  vs.  Three  Months  Ended
  September 30, 1995

  Total  revenue  for  the  three  months  ended  September  30,  1996
  increased  20%  over  total  revenue  for  the  three  months  ended
  September 30,  1995.    Total revenue  consists  of  net  sales  and
  research and development revenue.  Net  income was $391,864 or  four
  cents per share for the three months ended September 30, 1996.   Net
  income for the three months ended September 30, 1995 was $146,214 or
  two cents per share.

  Net sales  for  the  three months  ended  September  30,  1996  were
  $2,088,692, representing an increase of  9% or $167,456 compared  to
  net sales of  $1,921,236 for the  three months  ended September  30,
  1995.  The  increase is attributable  to a 31%  increase in  Marinol
  sales related to  higher unit  volume and  a price  increase in  the
  United States,  and the  launch of  Marinol in  South Africa.    The
  increase in net  sales was offset  by two changes  in the  Company's
  marketed product line:  1) the sale of the Company's property rights
  in and regulatory approvals of Serc  to Solvay-Duphar as of  January
  1, 1996  and 2)  the termination  of distribution  of the  Company's
  over-the-counter products as of December 31, 1995.  Accordingly,  no
  sales of Serc or over-the-counter products were recorded during  the
  three months ended September 30, 1996, whereas, net sales from  Serc
  were $271,713 for the three months ended September 30, 1995 and  net
  sales of over-the-counter products were $57,561 for the three months
  ended September 30, 1995.  Marinol  is currently the sole source  of
  product sales to the Company.

  Total revenue included $309,815 in research and development  revenue
  in the  three month  period ended  September 30,  1996 from  foreign
  licensors'  partial  support   of  clinical  development   programs.
  $1,653,697 of  future  research  and  development  expenditures  are
  expected to be offset by deferred research and development  revenues
  paid to the Company by foreign licensors.

  Interest income  increased $195,677,  or 194%,  to $296,324  in  the
  three month period ended September 30, 1996 as compared to the  same
  three month period  in 1995.   This  increase was  due primarily  to
  higher invested cash balances.

  Cost of sales decreased by $31,750 or 4% for the three month  period
  ended September 30, 1996  compared to the  three month period  ended
  September 30,  1995.   This  decrease  is  due to  a  lower  Marinol
  inventory cost in 1996 and discontinuation of Serc and the Company's
  over-the-counter  products.     The   decrease  was   offset  by   a
  corresponding increase in Marinol sales.  Cost of sales expressed as
  a percent of net sales decreased to 41% from 46% for the same period
  in 1995.
<PAGE>
  Operating and  administrative expenses  increased during  the  three
  month period ended September 30, 1996  by $46,917 or 9%.   Operating
  and administrative expenses as  a percentage of  net sales were  27%  
  for both  three month  periods ended  September 30,  1996 and  1995,
  respectively.

  Sales and marketing expenses increased $125,406 or 49% in the  three
  month period ended September 30, 1996.  Sales and marketing expenses
  were 18% of net sales in the three month period ended September  30,
  1996 compared to 13% for the same period in 1995.  The increase  was
  attributable to the Company adding  a new executive responsible  for
  commercial development of new and acquired products.

  Research and development  expenses in the  three month period  ended
  September 30, 1996 were $488,149, compared  to $291,778 in the  same
  period ended in 1995.   Research and  development expenses were  23%
  and 15% of net sales for the three month periods ended September 30,
  1996 and  1995,  respectively.   The  increase is  due  to  clinical
  development of  NTZ, Androgel  and Androgel-DHT  which included  the
  addition  of  clinical  and  regulatory  staff  to  manage  clinical
  development programs.   The  research  and development  expenses  of
  $488,149 were partially offset  by research and development  revenue
  of $309,815 for the three months ended September 30, 1996.

  The Company expects research and development expenses to increase as
  planned product development continues and to be partially offset  by
  research and development revenues.
<PAGE>
      
  Liquidity

  At September 30, 1996,  the Company had  cash, cash equivalents  and
  short-term investments  of  $19,803,049 compared  to  $8,400,599  at
  December 31, 1995, an increase of $11,402,450.

  The Company generated net  cash from operations totaling  $1,985,657
  for the nine months ended September 30, 1996.  Inventories increased
  $1,353,485 primarily  due  to final  delivery  of 1995  Marinol  raw
  material production.    Marinol inventories  are  normally  depleted
  throughout the year until delivery of the new annual production lot.

  The Company's distributor advances funds to the Company required  to
  maintain Marinol inventories.   During the  nine month period  ended
  September 30, 1996, the distributor advanced the Company $1,505,121.
  The current liability,  Due to Roxane,  is relieved  on a  quarterly
  basis from royalties remitted to the Company.  The reduction in  the
  quarterly royalty corresponds approximately  to the cost of  Marinol
  inventory sold during the quarter.

  The Company generated $10,375,500 from the issuance of common  stock
  during the nine month period ended September 30, 1996.  Net proceeds
  of  $7,537,563  were  received  from  a  private  placement  of  the
  Company's common  stock.   $1,677,286  was received  from  exercised
  stock warrants  owned  by  the Company's  Chairman.    $671,726  was
  received in  the  nine month  period  ended September  30,  1996  in
  connection with stock  option exercises.   Additionally, in May  the
  Company signed a  collaboration agreement  with BioChem  Therapeutic
  Inc., the  wholly-owned therapeutic  subsidiary of  BioChem  Pharma,
  resulting in the purchase  of 50,771 shares  of the Company's  stock
  for proceeds of $488,925.   The Company  also received $311,075  for
  the sublicense  of product  rights in  Canada to  NTZ, Androgel  and
  Androgel-DHT. Successful development  of the  Androgel products  may
  result in additional equity  investment and milestone payments  from
  BioChem Therapeutic Inc.

  In the  third  quarter,  the Company  acquired  an  interest-bearing
  convertible-subordinated debenture  from Romark  Laboratories,  L.C.
  for $1,500,000, as further defined by the debenture agreement.   The
  debenture has  a  five-year term  with  interest payable  to  Unimed
  annually.

  Statements made in  this document that  present information that  is
  not historic, including  among other  things, anticipated  financial
  performance, business  prospects,  new  products  and  markets,  and
  research and development activities, are forward-looking statements.
  The risks  that  may  affect  operations,  development  and  results
  include clinical outcomes in  drug development programs,  regulatory
  matters,   proprietary   rights   challenges,   market   acceptance,
  competition, and other matters discussed in the Company's Form  10-K
  and other periodic reports.   
<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 5, 1996    By:  /s/  Stephen M. Simes
                                      Stephen M. Simes
                                      President and Chief Executive Officer

                                                   

  Date:  November 5, 1996    By:  /s/  David E. Riggs
                                      David E. Riggs
                                      Senior Vice President, Chief Financial
                                       Officer, Secretary and Treasurer