<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-Q


MARK ONE
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
    ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998
                                       OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 FOR THE TRANSITION PERIOD FROM       TO


                         COMMISSION FILE NO. 1-14416
                                BIGMAR, INC.
           (Exact name of registrant as specified in its charter)




                   DELAWARE                          31-1445779
       (State or other jurisdiction of            (I.R.S. Employer
       incorporation or organization)            Identification No.)

          9711 SPORTSMAN CLUB ROAD                     43031
               JOHNSTOWN, OHIO                       (Zip Code)
   (Address of principal executive offices)

     Registrant's telephone number, including area code:  (740) 966-5800


Indicate by checkmark 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 / /

As of May 15, 1998, 4,185,000 shares of common stock of the registrant were 
outstanding.

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES

                                     INDEX


<TABLE>
<CAPTION>

<C>              <S>                                                    <C>
    Part I       FINANCIAL INFORMATION:

    Item 1       Financial Statements

                 Consolidated  Balance  Sheets  as  of March 31,
                     1998 and December 31, 1997 (Unaudited)              3

                 Consolidated Condensed Statements of Operations
                 for the quarters ended March 31, 1998 and 1997
                 (Unaudited)                                             4

                 Consolidated Condensed Statements of Cash Flows
                 for the quarters ended March 31, 1998 and 1997
                 (Unaudited)                                             5

                 Consolidated Statements of Comprehensive Income
                 (Loss) for the quarters ended March 31, 1998 and
                 1997 (Unaudited)                                        6

                 Notes to the Consolidated Condensed Financial
                 Statements (Unaudited)                                  7

    Item 2       Management's Discussion and Analysis of
                 Financial Condition and Results of Operations           9


    Part II      OTHER INFORMATION:

    Item 6       Exhibits and Reports on Form 8-K                       12

                 Signatures                                             13
</TABLE>


                                      2

<PAGE>

                        BIGMAR, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                          March 31       December 31
                                                                            1998             1997
                                                                        ------------     -----------
                                                                        (Unaudited)
<S>                                                                     <C>             <C>
                                               ASSETS
Current assets:
   Cash and cash equivalents                                            $    232,035     $   643,232
   Accounts receivable, net of allowance of $0 at
       March 31, 1998 and December 31, 1997                                  666,787         847,899
   Inventories                                                             1,067,080         890,249
   Prepaid expenses and other current assets                                 333,896         432,234
                                                                        ------------     -----------
       Total current assets                                                2,299,798       2,813,614
Property, plant and equipment, net                                        17,110,397      17,164,158
Intangible  and other assets, net                                            506,269         539,318
                                                                        ------------     -----------
                       Total                                            $ 19,916,464     $20,517,090
                                                                        ------------     -----------
                                                                        ------------     -----------


                                LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                                                        1,928,073       1,766,992
   Notes payable                                                           3,942,767       2,318,644
   Current portion of long-term debt                                         557,926         581,674
   Accrued expenses and other current liabilities                            559,630         630,713
                                                                        ------------     -----------
       Total current liabilities                                           6,988,396       5,298,023
Long-term debt                                                            10,021,503      10,090,467
                                                                        ------------     -----------
               Total liabilities                                          17,009,899      15,388,490
                                                                        ------------     -----------

Stockholders' equity:
   Preferred stock ($.001 par value; 5,000,000 shares authorized;
       none issued)
   Common stock ($.001 par value; 15,000,000 shares authorized;
       4,185,000 shares issued and outstanding at March 31, 1998
       and December 31, 1997)                                                  4,185           4,185
   Additional paid-in capital                                             15,063,166      15,063,166
   Retained earnings (deficit)                                           (11,127,933)     (9,012,630)
   Accumulated other comprehensive income:
       Foreign currency translation adjustments                           (1,032,853)       (926,121)
                                                                        ------------     -----------
               Total stockholders' equity                                  2,906,565       5,128,600
                                                                        ------------     -----------
                       Total                                            $ 19,916,464     $20,517,090
                                                                        ------------     -----------
                                                                        ------------     -----------
</TABLE>


        See accompanying notes to consolidated financial statements.


                                      3

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                  Three Months Ended March 31
                                                -------------------------------
                                                    1998                1997
                                                -----------         -----------
<S>                                             <C>                 <C>
Net sales                                       $ 1,436,167         $ 1,730,099
Cost of goods sold                                1,078,442           1,373,292
                                                -----------         -----------
Gross margin                                        357,725             356,807
                                                -----------         -----------
Operating expenses:
   Research and development                         743,525             263,174
   Selling, general and administrative            1,199,458             887,272
                                                -----------         -----------
      Total operating expenses                    1,942,983           1,150,446
                                                -----------         -----------

Operating income (loss)                          (1,585,258)           (793,639)

Other income (expense)                              (12,616)            140,171
Interest income (expense)                          (236,396)            (91,352)
Gain (loss) on foreign currency transaction        (281,033)                  -
                                                -----------         -----------
Income (loss) before income taxes                (2,115,303)           (744,820)

Income taxes (benefit):                                   -                   -
                                                -----------         -----------
Net income (loss)                               $(2,115,303)        $  (744,820)
                                                -----------         -----------
                                                -----------         -----------
Basic earnings (loss) per share                 $     (0.51)        $     (0.19)
                                                -----------         -----------
                                                -----------         -----------
Weighted average shares outstanding               4,185,000           3,985,000
                                                -----------         -----------
                                                -----------         -----------
</TABLE>



         See accompanying notes to consolidated financial statements.


                                      4

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                             Three Months Ended March 31
                                                                            ----------------------------
Cash flows from operating activities:                                           1998             1997
                                                                            -----------      -----------
<S>                                                                         <C>              <C>
   Net loss                                                                 $(2,115,303)     $  (744,820)
   Adjustments to reconcile net loss to net cash provided by (used in)
      operating activities:
         Depreciation and amortization                                          365,729          142,162
         Unrealized foreign exchange losses                                     280,438                -
         Changes in operating assets and liabilities:
            (Increase) decrease in accounts receivable                          149,425         (322,602)
            (Increase) decrease in inventories                                 (216,748)        (213,552)
            (Increase) decrease in prepaid expenses and other
               current assets                                                    81,534          100,100
            Increase (decrease) in accounts payable                             232,132         (552,212)
            Increase (decrease) in accrued expenses and other
               current liabilities                                              (51,575)           3,623
                                                                            -----------      -----------
               Net cash provide by (used in) operating activities            (1,274,368)      (1,587,301)
                                                                            -----------      -----------
Cash flows from investing activities:
   Purchase of property, plant and equipment                                 (1,005,975)      (1,264,882)
                                                                            -----------      -----------
               Net cash (used in) investing activities                       (1,005,975)      (1,264,882)
                                                                            -----------      -----------
Cash flows from financing activities:
   Short-term borrowings                                                      1,680,000         (311,116)
   Long-term borrowings                                                         182,702          530,936
                                                                            -----------      -----------
               Net cash provided by financing activities                      1,862,702          219,820
                                                                            -----------      -----------
Effect of exchange rates on cash                                                  6,444           75,163
                                                                            -----------      -----------
Net increase (decrease) in cash and cash equivalents                           (411,197)      (2,557,200)
Cash and cash equivalents, beginning of period                                  643,232        4,362,938
                                                                            -----------      -----------
Cash and cash equivalents, end of period                                    $   232,035      $ 1,805,738
                                                                            -----------      -----------
                                                                            -----------      -----------

Supplemental disclosure of cash flow information:
   Cash paid during the period for:
      Interest                                                              $   304,508      $    13,284
      Income taxes                                                          $         -      $     8,673
</TABLE>



         See accompanying notes to consolidated financial statements.


                                      5

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                             Three Months Ended March 31
                                                            -----------------------------
                                                                1998             1997
                                                            ------------      -----------
<S>                                                         <C>               <C>
Net income (loss)                                           $ (2,115,303)     $  (744,820)

Other comprehensive income, net of tax:
       Foreign currency translation adjustments, net of
         income taxes of $ 0 in both
         1998 and 1997, respectively                            (106,732)        (299,536)
                                                            ------------      -----------
Comprehensive income (loss)                                 $ (2,222,035)     $(1,044,356)
                                                            ------------      -----------
                                                            ------------      -----------
</TABLE>






         See accompanying notes to consolidated financial statements.


                                      6

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(1) BASIS OF PRESENTATION

Bigmar, Inc. is a Delaware Corporation which owns 100% of the capital stock 
of two Swiss Corporations, Bioren, SA and Bigmar Pharmaceuticals, SA, and 100% 
of the capital stock of a Delaware corporation, Bigmar Therapeutics, Inc.

In the opinion of management, the accompanying unaudited financial statements 
include all adjustments necessary to present fairly the Company's financial 
position at March 31, 1998 and 1997, and the results of operations and the 
cash flows and the comprehensive income for all periods presented.  Certain 
amounts in the accompanying financial statements have been restated to 
conform to the March 31, 1998 presentation.  The results of the interim 
periods are not necessarily indicative of the results to be obtained for the 
entire year.

For a summary of significant accounting policies (which have not changed from 
December 31, 1997) and additional financial information, see Bigmar Inc.'s 
Annual Report on Form 10-K for the year ended December 31, 1997.  The 10-K 
should be read in conjunction with these financial statements.

The accompanying financial statements have been prepared assuming that 
the Company will continue as a going concern.  The Company recently 
constructed a pharmaceutical manufacturing plant in Barbengo, 
Switzerland.  The Company has obtained a general approval to manufacture 
pharmaceutical products from the Intercantonal Office for the Control of 
Medications ("IKS") in Switzerland and is now in the process of 
validating the plant's equipment and processes for approval by the 
United States Food and Drug Administration ("FDA").  This process is 
expected to continue into at least the third quarter of 1998.  These 
activities have consumed a substantial amount of the Company's 
resources, including the proceeds of its initial public offering as well 
as the proceeds from convertible notes issued in August 1997.  
Management anticipates that its current cash resources will be depleted 
by June 1998 and that its operations will not begin to generate 
sufficient cash to fund its expansion and planned research and 
development activities by such time.  As a result, the Company 
anticipates that it will require additional financing in order to 
complete the validation process and to fund its operations prior to the 
plant becoming fully operational.  The Company recently signed a letter 
of intent with Jericho II, LLC ("Jericho") regarding the terms on which 
Jericho will guarantee a line of credit from a commercial institution to 
Bigmar in an amount up to $6 million.  The Company anticipates that the 
line of credit, when obtained, together with cash flow from operations, 
will be sufficient to fund its operations through the second quarter of 
1999. Finalization of the transactions is subject to negotiation and 
approval of definitive documentation.  In addition, there are no 
assurances that the Company will be able to manufacture its proposed 
products or that the Company's

                                      7

<PAGE>

targeted customers will accept such products.  These factors raise 
substantial doubt about the Company's ability to continue as a going concern. 
No adjustments have been made to reflect the recoverability or classification 
of recorded asset amounts or the classification of liabilities should the 
Company be unable to continue as a going concern.

(2) INVENTORIES

The components of inventory at March 31, 1998 and December 31, 1997 are as 
follows:

<TABLE>
<CAPTION>

                                 March 31, 1998      December 31, 1997
                                 --------------      -----------------
      <S>                        <C>                 <C>
      Raw Materials                  $577,934            $572,276
      Finished Goods                  489,146             317,973
                                   ----------            --------
           Total                   $1,067,080            $890,249
                                   ----------            --------
</TABLE>

(3) RECENTLY ISSUED ACCOUNTING PROUNCEMENTS

The Company has adopted Financial Accounting Standards Board Statement No. 
130, "Reporting Comprehensive Income".  FASB Concepts Statement No. 6 defines 
comprehensive income as "the change in equity of a business enterprise during 
a period from transactions and other events and circumstances from non-owner 
sources.  It includes all changes in equity during a period except those 
resulting from investments by owners and distributions to owners." 
Comprehensive income is comprised of net income plus other comprehensive 
income. Other comprehensive income includes items previously recorded 
directly in equity under FASB Statement No. 52, "Foreign Currency 
Translation", FASB Statement No. 80, "Accounting for Future Contracts", FASB 
Statement No. 87, "Employers' Accounting for Pensions", and FASB Statement 
No. 115, "Accounting for Certain Investments in Debt and Equity Securities".

The Consolidated Balance Sheet has been restated to conform to the 
requirements of this Statement by replacing "Cumulative translation 
adjustment" with "Accumulated other comprehensive income" in the equity 
section.  In addition, "Consolidated Statements of Comprehensive Income 
(Loss)" have been added to this quarterly report for the quarters ended March 
31, 1998 and 1997.

The Company has adopted Financial Accounting Standards Board Statement No. 
131, "Disclosures about Segments of an Enterprise and Related Information", 
issued in June 1997.  Since this is the initial year of application, the 
Company has elected not to provide the interim period disclosures, as 
permitted by the Statement.

In February, 1998, the Financial Accounting Standards Board issued Statement 
No. 132, "Employers' Disclosures About Pensions and Other Postretirement 
Benefits". This Statement, which is effective for fiscal years beginning 
after December 15, 1997, amends the disclosure requirements of Statements 87, 
88, and 106. Adoption of this standard is not expected to have a material 
impact on the Company's financial statements or results of operations.


                                      8

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES

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


Bigmar, Inc. and subsidiaries, (the "Company") is engaged in manufacturing 
and marketing various pharmaceutical products in Europe.  Its strategy is to 
supply world markets with a full line of high quality, affordably priced, 
generic pharmaceutical products, focusing on oncological products.  The 
Company intends to manufacture, in its state of the art facilities in 
Switzerland, off-patent generic oncological drugs and additional oncological 
drugs as their patents expire.  It will then market these products through 
pharmaceutical company partners in Europe and the United States.  Bigmar 
currently has distribution rights to more than 20 generic oncological 
products.

Bigmar was incorporated in Delaware in September 1995 and has three wholly 
owned subsidiaries: Bigmar Pharmaceuticals, SA, Bioren, SA and Bigmar 
Therapeutics, Inc.  Bigmar Pharmaceuticals and Bioren are both Swiss 
corporations and Bigmar Therapeutics is a Delaware corporation.

Certain statements under this caption constitute "forward-looking statements" 
within the meaning of the Private Securities Litigation Reform Act of 1995 
including, without limitation, statements regarding future cash requirements. 
Such forward-looking statements involve known and unknown risks, 
uncertainties, and other factors which may cause the actual results, 
performance or achievements of the Company, or industry results, to be 
materially different from any future results, performance or achievements 
expressed or implied in such forward-looking statements.  Examples of these 
risks include: delays in product development, problems with clinical testing, 
failure to receive regulatory approvals, lack of proprietary rights, or 
changes in business strategy.

RESULTS OF OPERATIONS

First quarter 1998 net sales amounted to approximately $1.4 million, 
representing a decrease of $300,000 or 17% over first quarter 1997 
sales.  Sales of IV Solutions increased $157,000 over the prior year, 
but were offset by unfavorable foreign currency impacts of approximately 
$44,000.  However, 1998 sales of raw materials decreased by 
approximately $400,000 versus 1997, due to the discontinuation of this 
product line.

Cost of goods sold decreased by $295,000 from the three months ended March 31, 
1997 to the same period in 1998. Foreign currency impacts accounted for 
approximately $36,000 of the decline, but the major portion is related to the 
decline in sales of raw materials, mentioned above.


                                      9

<PAGE>

Gross margin amounted to $358,000 for the first quarter of 1998, basically 
flat with the prior year. Gross margin percent amounted to approximately 25% 
for the first quarter of 1998, compared to approximately 21% for the prior 
year. The improvement is related to the discontinuation of the raw materials 
sales mentioned above, which had low margins.

Operating expenses increased from first quarter 1997 to first quarter 1998, 
by $.8 million.  Research and development expenses increased by $.5 million  
due to increased personnel costs and increased activities surrounding the 
Company's efforts to prepare for the March 1998 inspection of its  Swiss 
manufacturing facility by the FDA and to develop new drug product 
formulations. Selling, general and administrative expenses increased by $.3 
million, primarily due to an increase in the number of personnel from first 
quarter 1997 to first quarter 1998.

Other income/(expense) for the three months ended March 31, 1998 amounted to 
expense of $13,000, compared to income of $140,000 for the same three months 
in the previous year.  The decrease from 1997 to 1998 is due to sales of 
machinery and equipment in the first quarter of 1997.

Interest expense increased $172,044 from 1997 to 1998, due to interest on 
convertible notes and a line of credit and partly due to the fact that a 
portion of interest expense was capitalized in 1997, but not in 1998.

Foreign exchange losses amounted to $281,033 in the first quarter of this 
year compared to zero in the prior year.  The expense represents losses due 
to exchange rate fluctuations on certain intercompany accounts receivable 
denominated in Swiss francs. The full year 1997 exchange rate fluctuations on 
these accounts receivable were accounted for by the Company in the fourth 
quarter, as the impact on the results of operations for the individual 
quarters of 1997 was not material.

As a result of all of the foregoing, the Company's net loss for the first 
quarter 1998 amounted to $2.1 million, versus $.7 million during the first 
quarter of 1997.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 1998 and December 31, 1997, the Company had cash and cash 
equivalents of $232,035 and $643,232, respectively.  The Company's working 
capital amounted to ($4.7) million and ($2.5) million at March 31, 1998 and 
December 31, 1997, respectively.  The Company has incurred and will continue 
to incur substantial expenditures for research and development activities 
related to bringing its products to commercial market.  The Company intends 
to devote significant additional funds to product development, formulation, 
clinical testing, manufacturing validation, product registration, and other 
activities required for regulatory review of generic oncological products.  
The amount required to complete such activities depends upon the outcome of 
regulatory reviews.  The regulatory bodies may require more testing than is 
currently planned by the Company.  There can be no assurance that the FDA or 
any foreign government agency will approve the Company's generic oncological 
products for sale or that these products will achieve market success.

Property, plant and equipment totaled $17.1 million and $17.2 million at 
March 31, 1998 and at December 31, 1997, respectively.  Additions of 
approximately $1 million were


                                      10

<PAGE>

offset by depreciation expense ($.3 million) and foreign currency translation 
effects ($.7 million).

As of March 31, 1998, the Company had various notes, bonds, mortgages and 
other borrowings totaling approximately $14.5 million including $4.5 million 
that is short term in nature.  These monies were used to partially fund the 
acquisition of Bioren, to acquire, construct, and equip the manufacturing 
facility and to fund ongoing research and development and product 
registration activities.

The Company does not anticipate the Bigmar manufacturing facility in 
Barbengo, Switzerland to generate product sales in sufficient volume to 
generate positive cash flow for the first half of 1998.  As a result, the 
Company will be required to supplement its cash position from time to time 
through additional financing (debt or equity) or by entering into 
development, marketing, or other collaborative arrangements.

On May 1, 1998, the Company announced that it has recently signed a letter of 
intent with Jericho II LLC ("Jericho"), regarding the terms on which Jericho 
will guarantee a line of credit from a commercial institution to Bigmar in an 
amount of up to $6 million.  This represents an increase of approximately 
$2.5 million above the existing credit line of $3.5 million.  Jericho is a 
private investment company, partially owned by the Company's Principal 
Shareholder and CEO, John Tramontana.  The line of credit, when obtained, 
will be used for ongoing research and development and general working capital 
purposes.  The Company anticipates that the line of credit, together with 
cash flow from operations, will be sufficient to fund its operations through 
the second quarter of 1999.  Finalization of the transactions is subject to 
negotiation and approval of definitive documentation.

The Swiss Federal Code of Obligation provides that at least 5% of a Swiss 
company's net income each year must be appropriated to a legal reserve until 
such time as this reserve is equal to 20% of the company's paid-in share 
capital.  In addition, 10% of any distribution made by a company in excess of 
a 5% dividend must also be appropriated to the legal reserve.  The reserve of 
up to 5% of share capital is not available for distribution to stockholders.

Changes in exchange rates between currencies may negatively impact the 
Company's results of operations, specifically, net sales and gross profit 
margins from international operations.  In addition, the dollar-value 
equivalent of anticipated cash flows could also be adversely affected.  When 
the Company determines that this risk has become significant, the Company may 
attempt to manage that risk by using hedging techniques.


                                      11

<PAGE>

                         BIGMAR, INC. AND SUBSIDIARIES


PART II.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) 27.1 Financial Data Schedule
(b) Reports on Form 8-K.  No reports on Form 8-K were filed during the first
    quarter, 1998.


                                      12

<PAGE>

                                   SIGNATURES


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.

May 15, 1998

                                       BIGMAR, INC.
                                       ------------
                                        REGISTRANT


                                       By:  /s/ William R. Ash, III
                                            -------------------------------
                                            William R. Ash, III
                                            CHIEF FINANCIAL OFFICER
                                            (PRINCIPAL FINANCIAL OFFICER)


                                      13