<PAGE>

                   UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, D.C.  20549
                                           
                                           
                                      FORM 10-Q
                                           
               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934
                                           
_X_  FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
                                          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 number 1-14416
                                           
                                           
                                     BIGMAR, INC.
                                     ------------
                (Exact name of registrant as specified in its charter)
                                           
Delaware                                                   31-1445779
--------                                                   ----------
(State or other jurisdiction of                            (IRS Employer
incorporation or organization)                             Identification No.)

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

                                    (614) 966-5800
                                    --------------
                 (Registrant's telephone number, 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__.

As of  November 14, 1997, 4,185,000 shares of common stock of the Registrant
were outstanding.


<PAGE>

                            BIGMAR, INC. AND SUBSIDIARIES
                                           
                                        INDEX
                                                                       Page no.
                                            
Part I   FINANCIAL INFORMATION:

Item 1.  Financial Statements
    
         Consolidated Balance Sheets as of September 30, 1997, and 
           December 31, 1996 (Unaudited) . . . . . . . . . . . . . . . . . . 3

         Consolidated Condensed Statements of Operations for the quarters
           and nine month periods ended September 30, 1997 and
           1996 (Unaudited). . . . . . . . . . . . . . . . . . . . . . . . . 4

         Consolidated Condensed Statement of Cash Flows for the nine 
           months ended September  30, 1997 and 1996 (Unaudited) . . . . . . 5

         Notes to Consolidated Condensed Financial 
         Statements (Unaudited). . . . . . . . . . . . . . . . . . . . . . . 6

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

Part II  OTHER INFORMATION:

Item 5.  Other information . . . . . . . . . . . . . . . . . . . . . . . . .14


Item 6.  Exhibits and reports on Form 8-K. . . . . . . . . . . . . . . . . .14

         SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . .15


                                          2
<PAGE>

                             BIGMAR INC. AND SUBSIDIARIES
    
                              CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
 

                                                                       September 30       December 31
                                                                          1997               1996
                                                                    ----------------    -------------
ASSETS                                                                 (unaudited)
<S>                                                                 <C>                <C>
Current assets:
            Cash . . . . . . . . . . . . . . . . . . . . . . . .    $ 1,657,141         $ 4,362,938
            Investments, at market . . . . . . . . . . . . . . .          8,739               9,444
            Accounts receivable, net of allowances of $41,310
             and $44,703 at September 30, 1997 and December 31,
             1996, respectively. . . . . . . . . . . . . . . . .        684,176             772,491
            Inventory. . . . . . . . . . . . . . . . . . . . . .      1,072,495             950,471
            Prepaid expenses and other current assets. . . . . .        293,018             470,584
                                                                    ----------------    -------------
                      Total current assets. . . . . . . . . . .       3,715,569           6,565,928

Property, plant and equipment, at cost, less
  accumulated depreciation and amortization . . . . . . . . . .      17,219,434          17,407,140
Intangible Assets. . . . . . . . . . . . . . . . . . . . . . . .        473,218             297,101
                                                                    ----------------    -------------
                      Total . . . . . . . . . . . . . . . . . .     $21,408,221         $24,270,169
                                                                    ----------------    -------------
                                                                    ----------------    -------------
LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities:
            Accounts Payable. . . . . . . . . . . . . . . . . .     $ 1,196,897         $ 1,721,846
            Notes Payable . . . . . . . . . . . . . . . . . . .       1,929,627           1,529,993
            Current portion of long-term debt . . . . . . . . .          86,356             466,594
            Due to related parties. . . . . . . . . . . . . . .               -             983,490
            Advances on reimbursable expenses . . . . . . . . .               -             750,000
            Accrued expenses and other current liabilities. . .         509,943             568,903
                                                                    ----------------    -------------
                      Total current liabilities . . . . . . . .       3,722,823           6,020,826

Long term debt . . . . . . . . . . . . . . . . . . . . . . . . .     10,804,836           7,353,490
                                                                    ----------------    -------------
                      Total liabilities . . . . . . . . . . . .      14,527,659          13,374,316

Stockholders' equity
            Preferred Stock ($.001par value; 5,000,000 shares
            authorized; none issued)
            Common stock ($.001 par value; 15,000,000 shares
            authorized; 4,185,000 and 3,985,000 shares issued 
            and outstanding at September 30, 1997 and 
            December 31, 1996, respectively). . . . . . . . . .           4,185               3,985
            Additional paid-in capital. . . . . . . . . . . . .      15,063,166          13,333,366
            Cumulative translation adjustment . . . . . . . . .      (1,168,606)           (806,892)
            Retained earnings (deficit) . . . . . . . . . . . .      (7,018,783)         (1,634,606)
                                                                    ----------------    -------------
                      Total stockholders' equity. . . . . . . .       6,880,562          10,895,853
                                                                    ----------------    -------------
                      Total . . . . . . . . . . . . . . . . . .     $21,408,221         $24,270,169
                                                                    ----------------    -------------
                                                                    ----------------    -------------


</TABLE>
 

See accompanying notes to Consolidated Financial Statements     

                                          3

<PAGE>



                             BIGMAR INC. AND SUBSIDIARIES

                     CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                          Third Quarter Ending September 30
                                     (Unaudited)
    

<TABLE>
<CAPTION>
 

                                               Third Quarter                          Nine Months
                                     -----------------------------     ---------------------------------
                                            1997           1996                1997               1996
                                     -------------  --------------     -------------       -------------
<S>                                   <C>            <C>                <C>                 <C>
Net Sales                            $  1,452,976   $  1,743,824       $   4,669,748       $   5,581,888

Cost of Sales                        $    913,810      1,377,342           3,276,417           3,740,535

                                     -------------  -------------      -------------       --------------
Gross Profit                              539,166        366,482           1,393,331           1,841,353
                                             37.1%          21.0%               29.8%               33.0%
Operating Expenses:
  Research & Development             $    527,347        583,402             966,960             769,087
  Selling, General & Administrative  $  3,837,434        665,272           5,826,039           1,698,961
                                     -------------  -------------      -------------       --------------
Total Operating Expenses                4,364,781      1,248,674           6,792,999           2,468,048

                                     -------------  -------------      -------------       --------------
Operating Income (Loss)                (3,825,615)      (882,192)         (5,399,668)           (626,695)


Interest Income (Expense)            $   (139,968)       (70,752)           (313,868)           (267,195)

Other Income (Expenses)              $    136,607          6,604             350,097               6,626

                                     -------------  -------------      -------------       --------------
Income (Loss) Before Taxes             (3,828,976)      (946,340)         (5,363,439)           (887,264)

Taxes                                $      2,956            392               5,288                 583

                                     -------------  -------------      -------------       --------------
Net Income (Loss)                    $ (3,831,932)  $   (946,732)      $  (5,368,727)       $   (887,847)
                                     -------------  -------------      -------------       --------------
                                     -------------  -------------      -------------       --------------

Net income (Loss) per share:         $      (0.94)  $      (0.24)      $       (1.34)       $      (0.30)
                                     -------------  -------------      -------------       --------------

Average number of common 
    shares outstanding:                 4,056,739      3,985,000           4,009,176           2,988,333
                                     -------------  -------------      -------------       --------------


</TABLE>


                See accompanying notes to Consolidated Financial Statements

                                          4

<PAGE>

                                           
                            BIGMAR, INC. AND SUBSIDIARIES

                   CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                     (Unaudited)
<TABLE>
<CAPTION>


                                                                                             Nine Month Period 
                                                                                            ended September 30,
                                                                                  ----------------------------------
                                                                                         1997              1996
                                                                                  ---------------     --------------
<S>                                                                               <C>                 <C>
Cash flows from operating activities:
  Net Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   $ (5,368,727)       $   (887,847)
  Adjustments to reconcile net loss to 
  net cash provided by operating activities:
            Depreciation and amortization . . . . . . . . . . . . . . . . . . .        617,681             184,986
            Issue stock warrants. . . . . . . . . . . . . . . . . . . . . . . .        800,000
            Change in operating assets & liabilities:
             (Increase)/decrease in accounts receivable . . . . . . . . . . . .         33,081              37,185
             (Increase)/decrease in inventory . . . . . . . . . . . . . . . . .       (191,143)            (53,971)
             (Increase)/decrease in other current assets. . . . . . . . . . . .        143,664            (211,905)
            Increase/(decrease) due to related party. . . . . . . . . . . . . .       (903,909)                  -
            Increase/(decrease) in accounts and other payable . . . . . . . . .       (416,032)             92,842
            Increase/(decrease) in accruals and other current liabilities . . .       (773,905)            887,406
                                                                                  -------------       --------------
                        Net cash provided by/used in operations . . . . . . . .     (6,059,290)             48,696
                                                                                  -------------       --------------

Cash flows from investing activities:
  Purchase of property, plant & equipment. . . . . . . . . . . . . . . . . . .      (1,663,467)         (5,122,063)
  Increase in other assets   . . . . . . . . . . . . . . . . . . . . . . . . .          (1,646)           (956,261)
                                                                                  -------------       --------------
                        Net cash (used in) investing activities. . . . . . . .      (1,665,113)         (6,078,324)
                                                                                  -------------       --------------

Cash flows from financing activities:
  Short term borrowing (net). . . . . . . . . . . . . . . . . . . . . . . . . .        166,799          (1,016,641)
  Net proceeds from issuance of equity securities . . . . . . . . . . . . . . .        930,340           9,363,997
  Long term borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      4,000,000           2,342,812
  Deferred offering costs . . . . . . . . . . . . . . . . . . . . . . . . . . .       (280,000)                  -
                                                                                  -------------       --------------
                        Net cash provided by financing activities . . . . . . .      4,817,139          10,690,168
                                                                                  -------------       --------------

Effect of exchange rate changes on cash. . . . . . . . . . . . . . . . . . . .         201,467              17,213
                                                                                  -------------       --------------

Net increase/(decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . .     (2,705,797)          4,677,753

Cash - beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . .      4,362,938           1,425,603
                                                                                  -------------       --------------

Cash - end of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   $  1,657,141        $  6,103,356
                                                                                  -------------       --------------
                                                                                  -------------       --------------

Supplemental disclosure of cash flow information:
           Cash paid during the period for
                 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . .   $     75,436        $    338,225
                 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . .   $          -        $      9,905
            Equipment purchases included in accounts payable. . . . . . . . . .   $     98,527        $    582,513


</TABLE>


See accompanying notes to Consolidated Financial Statements

                                          5

<PAGE>

                            BIGMAR, INC. AND SUBSIDIARIES
                                           
                 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                           
                                           
1.  BASIS OF PRESENTATION

Bigmar, Inc. ("Bigmar") is a Delaware corporation which owns 100% of the capital
stock of two Swiss corporations (Bioren SA ("Bioren") and Bigmar Pharmaceuticals
SA ("Bigmar Pharmaceuticals")) and 100% of the stock of a Delaware corporation
(Bigmar Therapeutics, Inc. ("Therapeutics")).

In the opinion of management, the accompanying unaudited consolidated condensed
financial statements include all adjustments (consisting of normal recurring
accruals or adjustments only) necessary to present fairly the financial position
at September 30, 1997, and the results of operations and the cash flows for all
periods presented.  The results of operations for 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, 1996) and additional financial information, see Bigmar's Annual
report on Form 10-K for the year ended December 31, 1996, including the
consolidated financial statements and notes thereto which should be read in
conjunction with these financial statements.

2.  PUBLIC OFFERING

On June 25, 1996, Bigmar completed an initial public offering of 1,610,000
shares, inclusive of the over-allotment option for 210,000 shares, of common
stock, par value $.001 per share ("Common Stock") at $7.50 per share ("IPO"). 
The net proceeds from this offering, after deducting all associated offering
costs, aggregated approximately $9.4 million.  Approximately $1.9 million of the
proceeds was used to repay a short term loan.  The remaining net proceeds are
designated to be used for the acquisition, testing and manufacturing of
oncological products and for general corporate purposes, including working
capital.


                                          6

<PAGE>

3.  INVENTORIES

The components of inventory at September 30, 1997 and December 31, 1996, are as
follows:

                              SEPTEMBER 30, 1997     DECEMBER 31, 1996
                              ------------------     -----------------
            Raw material                $670,659             $363,114
            Finished goods               401,836              587,357
                                      ----------            ----------
                                      $1,072,495             $950,471
                                      ----------            ----------

4.  PROTYDE 

In October 1995, Therapeutics and a wholly owned subsidiary of Protyde
Pharmaceuticals, Inc. ("Protyde") formed a partnership, Protyde-Bigmar
Therapeutics (the "Partnership"), for the purpose of coordinating the
manufacture and marketing of certain pharmaceutical products for the treatment
of human cancer.

On July 24, 1997, the Partnership terminated its manufacturing agreement with
the Company and it marketing agreement with Protyde, and Protyde assigned its
partnership interests to Therapeutics.  As consideration for the assignment and
termination agreements, the Company paid Protyde $2,000,000, which included the
return of an advance for reimbursable expenses of $750,000.  Additionally, the
Company issued warrants to Protyde to purchase up to 500,000 shares of the
Company's common stock (note 5).  The fair value of the total consideration
given to Protyde of $2,050,000 has been recognized in the accompanying 1997
statement of operations and is included in SG&A expense for third quarter 1997.

5.  WARRANTS

As described in note 4, July 24, 1997 the Company granted warrants to Protyde 
to purchase 500,000 shares of its common stock.  These warrants are 
exercisable for a period of four years at an exercise price of $5.00 per 
share.  The Company recorded as SG&A expense and an increase to additional 
paid-in capital $800,000 related to such warrants based on the fair value 
(using the Black Scholes model) of the warrants at the issuance date.

                                          7

<PAGE>



6.  BANCA DEL GOTTARDO FINANCING

On August 28, 1997, the Company entered into two agreements with Banca del 
Gottardo, a bank organized under the laws of Switzerland (the "Bank"): a. the 
Offshore Securities Subscription Agreement (the "Subscription Agreement"); 
and b. the Note Purchase, Paying and Conversion Agency Agreement (the "Note 
Agreement").  The closing of the subscription under the Subscription 
Agreement and the note purchase under the Note Agreement each occurred on 
August 29, 1997. The net proceeds of these transactions are to be used to 
finance current operations of the Company.

Under the Subscription Agreement, the Bank has been issued 200,000 shares 
of common stock of the Company (the "Shares").  The purchase price was five 
dollars (US$5.00) per Share.  The aggregate subscription price was one 
million dollars (US$1,000,000).  After paying the Bank a commission of seven 
percent (7%) or seventy thousand dollars (US$70,000), the net proceeds of the 
subscription to the Company was nine hundred thirty thousand dollars 
(US$930,000).

Under the Note Agreement, the Bank purchased a global note in the principal 
amount of four million dollars (US$4,000,000).  After paying the Bank a 
commission of seven percent (7%) or two hundred eighty thousand dollars 
(US$280,000), the net proceeds of the note purchase to the Company was three 
million six hundred seventy thousand dollars (US$3,670,000).  The Note 
Agreement contemplates that, from this global note amount, the Bank will 
further sell notes in denominations of five thousand dollars (US$5,000) (the 
"Notes").  The term of the Notes is five (5) years, and the interest rate on 
the Notes is eight percent (8%) per year payable in February and August of 
each year.  The Notes will be convertible, as early as January 1, 1998, into 
shares of common stock of the Company. Under the Note Agreement and the terms 
of the Notes, the initial conversion price is five and twenty-five 
one-hundredths dollars (US$5.25) of principle amount of the Notes for one 
share of common stock of the Company. (The conversion price is variable based 
on events such as stock splits and other specified events having an impact on 
the number of common shares outstanding.) At least fifty thousand dollars in 
principle amount of the Notes must be converted at a time.  The Shares and 
the Notes are subject to Regulation S ("Reg S") promulgated by the United 
States Securities and Exchange Commission under the Securities Act of 1933, 
as amended (the "Act"), and, as such, may not be transferred to a U.S. 
person, as defined in Reg S during the first forty (40) days after closing.  
Thereafter, any such transfer is subject to the registration requirements 
under the Act.  Prior to January 1, 1998, the Company is required, and 
expects, to effect a registration under the Act with respect to shares 
necessary in the conversion of the Notes.  The Company has reserved 
authorized shares necessary for such conversion.


7.   EARNINGS PER SHARE

     Net income (loss) per share is based on the weighted average number of 
shares outstanding during each period.

     In February 1997, Statement of Financial Accounting Standards ("SFAS") 
No. 128, "Earnings per Share", was issued which established standards for 
computing and presenting earnings per share. SFAS No. 128 is effective for 
financial statements issued for periods ending after December 15, 1997, 
including interim periods.

     The  Company has evaluated the effect of this new pronouncement on 
earnings per share and believes that adoption of SFAS No. 128 would not have 
a material impact on reported earnings per share for the periods ended 
September 30, 1997 and December 31, 1996.

8.  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

     In June 1997, the Financial Accounting Standards Board issued Statement 
No. 130, "Reporting Comprehensive Income", which is required to be adopted 
for fiscal years beginning after December 15, 1997. The Statement establishes 
standards for the reporting and display of comprehensive income and its 
components in a full set of general purpose financial statements. Adoption 
of this standard is not expected to have a material impact on the Company's 
financial statements or results of operations.

     In June 1997, the Financial Accounting Standards Board issued Statement 
No. 131, "Disclosures about Segments of an Enterprise and Related 
Information", which is required to be adopted for fiscal years beginning 
after December 15, 1997. The Statement changes the way public companies 
report segment information in annual financial statements and also requires 
those companies to report selected segment information in interim financial 
reports to shareholders. 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 the manufacturing 
and marketing of oncological and intravenous infusion solutions in Europe. 
Bigmar has distribution rights to over twenty generic oncological products 
and has established a network of companies within Europe and in the United 
States to market its products.  On May 30, 1997 the Company announced that 
the Intercantonal Office for the Control of Medications ("IKS"), the Swiss 
counterpart to the U.S. Food and Drug Administration ("FDA") granted the 
Company general approval for the production of all injectible (liquid or 
lyophilized) pharmaceutical products at its Barbengo, Switzerland facility 
(the "Barbengo Facility").   In addition the IKS granted the Company approval 
to manufacture all marketed configurations of calcium leucovorin at the 
Barbengo Facility, which in turn will be sold to marketing partners 
throughout Europe.  Calcium leucovorin is a rescue therapy used in 
conjunction with the administration of chemotherapeutic agents.  

On July 1, 1997 the Company submitted its first Abbreviated New Drug 
Application ("ANDA") to the FDA for its generic version of Leucovorin Calcium 
for Injection.

Bigmar was incorporated in Delaware in September 1995 and has three 
wholly-owned subsidiaries:  Bigmar Pharmaceuticals SA, a Swiss corporation 
formed in January 1992; Bigmar Therapeutics, Inc., a Delaware corporation 
formed in September 1995; and, Bioren SA, a Swiss corporation formed in July 
1986.  

Certain statements under this "Management Discussion and Analysis of 
Financial Condition and Results of Operations" 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 by such forward-looking statements.

                                          9

<PAGE>

                                           
Such factors include, among others, the following: delays in product 
development; problems or delays in clinical testing; failure or delays in 
receiving regulatory approvals; lack of proprietary rights; or, change in 
business strategy or development plans.
 
RESULTS OF OPERATIONS

Third quarter 1997 net sales amounted to $1,452,976, representing a decrease 
of $290,848 from third quarter 1996 net sales of $1,743,824. This decrease 
was primarily due to temporary suspension of production in the Bioren 
facility for plant maintenance.

Net sales for the nine month period through September 30, 1997 were 
$4,669,748 compared with net sales through September 30, 1996 of $5,581,888.  
The decrease of $912,140 represents flat sales in Swiss currency adversely 
impacted by the change in exchange rate between the U.S. Dollar and the Swiss 
franc.

Gross profit for the third quarter 1997 was $539,166, an increase of $172,684 
from gross profit of $366,482 for the same quarter last year. Gross profit 
margin as a percentage of net sales for the third quarter 1997 was 37.1%. 
This increase primarily reflects the effect of change in product mix offset 
by an unfavorable foreign exchange conversion.

Gross profit for the nine months ended September 30, 1997 amounted to 
$1,393,331, a decrease of $448,022 from the Company's gross profit for the 
same period last year of $1,841,353.  The nine-month gross profit margin 
through September 30, 1997 amounted to 29.8% compared to the nine-month 
margin for the same period through September 30, 1996 of 33.0%. This 
decrease resulted from higher raw material costs and competitive pricing 
tactics in the IV Solution product line. 

Research and development ("R&D") expenses for the third quarter 1997 were 
$527,347, a decrease of $56,055 from the $583,402 in R&D expenses  recorded 
for the same period a year ago.  R&D expenses for the nine-month period this 
year were $966,960, an increase of $197,873 over last year's $769,087. The 
nine month results represent an increase in R&D expenditures related to the 
formulation of oncology products offset by the impact of exchange rate 
fluctuations. In 

                                          10

<PAGE>

view of the anticipated number of products scheduled for registration in the 
next several years, the Company anticipates that the level of research and 
development expenses will continue to be significant. 

Selling, general and administrative expenses ("SG&A") increased by $3,172,162 
to $3,837,434 for the third quarter this year as compared to $665,272 for the 
third quarter a year ago.  This increase includes a one time charge to 
operating expenses regarding the termination and assignment of U.S. marketing 
rights from Protyde Pharmaceuticals, Inc. ("Protyde") for total consideration 
of $2,050,000 (see notes 4 & 5).  In addition, $268,278 related to buildings 
and equipment depreciation and facility validation costs was expensed to 
operations, and $50,000 in fees relating to the issuance of 500 convertible 
notes, through financing instruments issued by Banca del Gottardo, a Swiss 
based bank (see note 6). The remaining $803,884 relates to the increase in 
the number of employees and related expenses and operational activity in both 
the U.S. and in Switzerland. SG&A expenses for the nine-month period this 
year were $5,826,039, an increase of $4,127,078 over last year's $1,698,961.  
As in the quarter, the increase in SG&A expenses year-to-date represent the 
inclusion of the termination and assignment agreements with Protyde, Banca 
Del Gottardo financing instruments, and increases in personnel and related 
operating expenses in both the U.S. and Switzerland. 

Loss from operations for the third quarter 1997 was ($3,825,615).  This is an 
increase of $2,943,423 from the ($882,192) operating loss recorded for the 
same period a year ago. Operating loss for the nine-month period ended 
September 30, 1997 was ($5,399,668), an increase of $4,772,973 from last 
year's operating loss of ($626,695).  The decline in operating income 
year-to-date for the quarter and the nine-month period through September 30, 
1997 is mainly attributable to higher SG&A expenditures.

Net interest expense in the third quarter amounted to $139,968, an increase 
of $69,216 from the same period a year ago of $70,752.  Year-to-date 
September 30, 1997 net interest expense totaled $313,868, an increase of 
$46,673 from the year-to-date September 30, 1996 amount of $267,195. These 
increases reflect debt related interest incurred in 1997 versus 1996, 
including $26,667 in interest related to the convertible notes issued to 
Banca del Gottardo on August 29, 1997. 
                                           
    Net loss for the quarter and the nine-month period through September 30, 
1997 was $3,831,932 and $5,368,727, respectively. This represents increases 
in losses of $2,885,200 and $4,480,880, respectively compared to last year's 
net loss of $946,732 and $887,847 for the quarter and nine-month period, 
respectively.

                                          11

<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 1997 and December 31, 1996, the Company had cash and cash
equivalents of $1,657,141 and $4,362,938, respectively. The Company's working
capital approximated  ($7,254) and $545,102 at September 30, 1997 and December
31, 1996 respectively. The Company has incurred and will continue to incur,
substantial expenditures for research and development activities related to
bringing its products to the 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 will depend 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 Company's generic
oncological products will be approved for marketing by the FDA or any foreign
government agency, or that any such products will be successfully introduced or
achieve market acceptance.

Property, plant and equipment net of accumulated depreciation at September 30,
1997 totaled $17,219,434 compared to $17,407,140 at December 31, 1996. This
decrease of $187,706 is primarily a result of foreign currency translation 
adjustments. 

At September 30, 1997, the Company had approximately $12,820,819 in outstanding
third party loans, $2,015,983 of this being short term in nature. These monies
were used to partially fund the acquisition of Bioren and to acquire, construct
and equip the manufacturing facility.  The long term portion has various
maturities and repayment schedules. 

Since the Company does not anticipate product sales of the Barbengo Facility to
be of sufficient volume to generate positive cash flow for the fourth quarter of
1997, the Company will be required to supplement its cash position from time to
time through additional financing (debt or equity) or entering into development,
marketing or other collaborative arrangements.  The Company currently has a $3.5
million line of credit on an unsecured basis, with Citizens Bank of Saginaw, MI.
This credit line bears interest at the Bank's prime commercial lending rate
which is currently 8.5%. The Company anticipates that the remaining net proceeds
received from the Banca Del Gottardo financing instruments (see note 6), cash
flow from 

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operations (if any), and the line of credit will be sufficient to fund the
Company's operations, through December 1998.


The results of the Company's operations are affected by changes in exchange
rates between currencies.  Changes in exchange rates may negatively affect the
Company's consolidated net sales and gross profit margins from international 
operations.  The Company is exposed to the risk that the dollar-value equivalent
of anticipated cash flow will be adversely affected by the changes in foreign
currency exchange rates.  At such time as the Company determines that this risk
is significant, the Company may attempt to manage that risk by utilizing hedging
techniques. 

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 equivalent 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 the share capital is not available for distribution to stockholders.

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<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

                   As reported pursuant to the report filed on Form 8-K on
              September 11, 1997 with the Securities and Exchange Commission,
              on August 29, 1997, the Company entered into two agreements with
              Banca del Gottardo, a bank organized under the laws of
              Switzerland (the "Bank"):  a. the Offshore Securities
              Subscription Agreement (the "Subscription Agreement"); and b. the
              Note Purchase, Paying and Conversion Agency Agreement (the "Note
              Agreement").  The closing of the subscription under the
              Subscription Agreement and the note purchase under the Note
              Agreement each occurred on August 29, 1997.  The net proceeds of
              these transactions are to be used to finance current operations
              of the Company (see note 6).
    
                   As reported pursuant to the report filed on Form 8-K on
              September 30, 1997 with the Securities and Exchange Commission,
              on August 22, 1997, KPMG Peat Marwick LLP has been appointed as
              the Company's certified public accountants replacing Richard A.
              Eisner & Company, LLP who has been dismissed as of August 22,
              1997.

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                                      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.

                             BIGMAR, INC.
                             -----------------------------
                             Registrant

                        
Date: November 18, 1997      William R. Ash, III
                              ----------------------------
                             /s/William R. Ash, III
                             Chief Financial Officer

Date: November 18, 1997      Michael K. Medors   
                              ----------------------------
                             /s/Michael K. Medors, 
                             Treasurer and Secretary 

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