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

2150 E. Lake Cook Rd., Buffalo                        60089
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                             8,783,299
   ($.25 par value)

  <PAGE>

              UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY

                                                            Page
                                                           Number


PART I.    Financial Information

   ITEM 1.     Financial Statements
               Condensed Consolidated Balance Sheets          3

               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                                10


SIGNATURE PAGE                                               11

  <PAGE>
  <TABLE>

  PART I - FINANCIAL INFORMATION

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

                                       
                                        March 31,  December 31,
                                          1997         1996
  ASSETS                               (unaudited)
  <S>                                     <C>       <C>
  Current assets:
  Cash and cash equivalents            $ 3,761,503 $ 4,458,889
  Short-term investments                13,957,853  16,370,897
  Receivables:
    Trade                                1,379,697   1,876,807
    Other                                  316,994      78,109

      Total receivables                  1,696,691   1,954,916

  Inventories                            3,774,794   4,184,855
  Prepaid expenses                         260,030     108,457

      Total current assets              23,450,871  27,078,014

  Equipment and leasehold                
   improvements, at cost                 2,125,651   2,035,807
  Less accumulated depreciation and      
   amortization                          1,275,410   1,227,790

      Net                                  850,241     808,017

  Investment in and subordinated
   debenture from Romark                              
   Laboratories, L.C.                    2,275,910   2,275,910
  Product rights, net of amortization    5,262,363     584,934
                                  
      Total assets                     $31,839,385 $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
                                                March 31,    December 31,
                                                 1997           1996
                                              (unaudited)

LIABILITIES AND STOCKHOLDERS' EQUITY
<S>                                            <C>         <C>
Current liabilities:
  Accounts payable                             $  361,775  $  376,761
  Accrued and other liabilities                 1,300,732   1,210,664
  Due to Roxane Laboratories, Inc.              4,431,941   4,945,801
  Deferred research and development revenues    1,209,601   1,643,887
  Current portion of long-term obligation         484,000       - - -   
                                                               
    Total current liabilities                   7,788,049   8,177,113

Long-term obligation                            1,213,000       - - -
    Total liabilities                           9,001,049   8,177,113

Stockholders' equity:
  Common stock, $.25 par value; authorized
   30,000,000 shares; issued and
   outstanding: 8,783,299 and 8,775,499         2,195,825   2,193,875
  Additional paid-in capital                   27,359,340  27,340,665
  Accumulated deficit                          (6,757,985) (7,005,726)
  Accumulated foreign currency translation         
   adjustment                                      41,156      40,948

    Total stockholders' equity                 22,838,336  22,569,762

    Total liabilities and stockholders'                            
     equity                                   $31,839,385 $30,746,875

      See accompanying notes to consolidated financial statements.
  </TABLE>
  <PAGE>
  <TABLE>
                                   
  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
  Condensed Consolidated Statements of Operations
  Three Months Ended March 31, 1997 and 1996
  (Unaudited)
                                            March 31,    March 31,
                                              1997        1996
  <S>                                      <C>          <C>
  Net sales                                $1,970,883   $1,556,247
  Research and development revenue            442,727      172,180
  Total revenue                             2,413,610    1,728,427
  Cost of sales                               593,400      678,551
  Gross profit                              1,820,210    1,049,876

  Operating and administrative expenses       781,464      559,336
  Sales and marketing expenses                485,450      218,779
  Research and development expenses           719,130      431,071
  Total expenses                            1,986,044    1,209,186

  Loss from operations                       (165,834)    (159,310)

  Other income (expense):
      Gain on sale of trademark                 - - -      200,000
      Product right sublicense gain           150,000        - - -
      Interest income                         274,908      193,837
      Other expense                           (11,333)     (21,019)
  Income before income taxes                  247,741      213,508

  Income tax benefit                            - - -        5,931
  Net income                                $ 247,741    $ 219,439
  Net income per share:
      Basic                                 $     .03    $     .03
      Fully diluted                         $     .03    $     .03
  Weighted average number of common and
    common equivalent shares outstanding:
      Basic                                 8,780,790    7,295,304
      Fully diluted                         9,008,495    8,236,090

      See accompanying notes to consolidated financial statements.
  </TABLE>
  <PAGE>
  <TABLE>
  UNIMED PHARMACEUTICALS, INC. AND SUBSIDIARY
  Condensed Consolidated Statements of Cash Flows
  Three Months Ended March 31, 1997 and 1996
  (Unaudited)
                                            March 31,    March 31,
                                              1997         1996
  <S>                                      <C>          <C>
  Cash flows provided by operations:
  Net income                               $  247,741   $  219,439
  Adjustments to reconcile net income to
   net cash provided by operations:                       
    Depreciation and amortization              69,688       45,000
    Write-off of Investment in Medisperse       - - -       21,019
    Other                                         210          134
    Decrease in current receivables           258,224    1,099,440
    Decrease in inventories                   410,061      579,736
    (Increase) Decrease in prepaid          
     expenses                                (151,573)       1,742
    Increase (Decrease) in payables,
     accrued and other liabilities             75,082     (289,984)
    Decrease in due to Roxane                           
     Laboratories, Inc.                      (513,859)    (526,309)
      Net cash provided by operating         
       activities                             395,574    1,150,217

  Cash flows (used in) provided by
  investing activities:                      
    Capital expenditures                      (92,342)     (11,483)
    Sale of short-term investments          2,413,044    1,388,756
    Product acquisition                    (3,000,000)       - - -
      Net cash (used in) provided by      
       investing activities                  (679,298)   1,377,273

  Cash flows (used in) provided by 
   financing activities:
    Proceeds from issuance of common          
     stock                                     20,625    9,630,578
    Deferred research and development
     revenues-net                            (434,287)   1,036,035
      Net cash (used in) provided by       
       financing activities                  (413,662)  10,666,613

  (Decrease) Increase in cash and cash       
   equivalents                               (697,386)  13,194,103
  Cash and cash equivalents at beginning                
   of period                                4,458,889    7,011,843
  Cash and cash equivalents at end of              
   period                                 $ 3,761,503  $20,205,946


  Supplemental disclosures of cash flow
   information:
  Cash paid during the period for:                
    Income taxes                           $   - - -    $    5,769
  Obligation assumed due to product
   acquisition                             $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, 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 March 31,
  1997, the results of operations for the three months ended March 31,
  1997 and 1996 and changes in cash flows for the three month  periods
  ended March 31, 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

  Three Months Ended March 31, 1997 vs. Three Months Ended March 31,
  1996

  Total revenue for the three months ended March 31, 1997 (the  Fiscal
  1997 Period ) increased 40 percent over total revenue for the  three
  months ended  March  31,  1996 (the   Fiscal  1996  Period ).  Total
  revenue consists of net sales and research and development  revenue.
  Net income was $247,741 or three cents per share for the Fiscal 1997
  Period.  Net income for the Fiscal 1996 Period was $219,439 or three
  cents per share.

  Net sales for  the Fiscal  1997 Period  increased by  27 percent  or
  $414,636 to $1,970,883 compared to net  sales of $1,556,247 for  the
  Fiscal 1996 Period.  The increase in net sales was attributable to a
  combination of a 17% sales  increase in Marinol[R] (dronabinol)  due
  to higher unit volume and the  introduction in March of  Maxaquin[R]
  (lomefloxacin), a once-a-day fluoroquinolone antibiotic for  urinary
  tract infections, which generated net sales of $157,180 in March.

  Total revenue,  in  addition  to net  sales,  included  $442,727  in
  research and  development revenue  in the  Fiscal 1997  Period  from
  foreign licensors' partial support of clinical development  programs
  on in-licensed products.   In  1997, approximately  $1.6 million  of
  future research  and  development  expenditures will  be  offset  by
  deferred research and  development revenues paid  to the Company  by
  foreign licensors.

  Cost of sales decreased by $85,151 or 13 percent for the three month
  period ended March 31, 1997 compared to the three month period ended
  March 31, 1996.   This decrease  is due to  lower Marinol  inventory
  costs.  Cost of sales expressed as a percent of net sales  decreased
  from 44% for the Fiscal  1996 Period to 30%  for the same period  in
  1997.

  Operating and administrative expenses  increased in the Fiscal  1997
  Period by $222,128 or 40 percent.  This increase was due in part  to
  higher personnel related expenses and accrued legal expenses related
  to product licenses.   Operating  and administrative  expenses as  a
  percentage of net sales were 40% in the Fiscal 1997 Period  compared
  to 36% in the Fiscal 1996 Period.

  Sales and marketing expenses increased  $266,671 to $485,450 in  the
  Fiscal 1997 Period as the Company began Maxaquin related promotional
  programs  as  well  as  adding  a  new  executive  responsible   for
  commercial development of  Maxaquin.  Sales  and marketing  expenses
  were 25% of net sales in the  Fiscal 1997 Period compared to 14%  in
  the Fiscal 1996 Period.
  <PAGE>
  Research and development  expenses in  the Fiscal  1997 Period  were
  $719,130, compared to $431,071 in the Fiscal 1996 Period.   Research
  and development expenses were 36% of  net sales for the Fiscal  1997
  Period, and 28  percent of  net sales  for the  Fiscal 1996  Period.
  This 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  $442,727
  were offset by research and development  revenue in the Fiscal  1997
  Period.

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


  Liquidity

  At March 31, 1997, the Company had cash, cash equivalents and short-
  term investments of $17,719,356, compared to $20,829,786 at December
  31, 1996, a decrease of $3,110,430. The Company generated $2,413,044
  from maturing short-investments during the Fiscal 1997 Period.

  The Company generated net cash from operations totaling $395,574 for
  the quarter ended March 31, 1997.  Current receivables decreased  by
  $258,224 due  to  receipt of  royalty  payments from  the  Company's
  distributor of Marinol[R].   Inventories decreased  $410,061 due  to
  ongoing  sales  of  Marinol[R]  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 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.

  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)  Exhibits                 None
                  (b)  Reports on Form 8-K

                      On January 13,  1997, the Company  filed
                      a  Current   Report  on   Form  8-K   to
                      announce  the  resignation  of   Stephen
                      Simes as  President/CEO and  a  Director
                      of the Company to pursue other  business
                      interests.  Dr. Robert Dudley,  formerly
                      Vice   President    of   Clinical    and
                      Regulatory Affairs, was appointed CEO.
  <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 13, 1997     By:  /s/  Robert E. Dudley
                                  Robert E. Dudley
                                  Chief Executive Officer

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