<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 December 31, 2000
                                OR
       [ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
              OF THE SECURITIES EXCHANGE ACT OF 1934

                        Commission file number 0-11580

                       PHARMAKINETICS LABORATORIES, INC.
            ------------------------------------------------------
            (Exact name of registrant as specified in its charter)

            Maryland                                52-1067519
 -------------------------------                ------------------
 (State or other jurisdiction of                 (I.R.S. Employer
  incorporation or organization)                Identification No.)

                            302 West Fayette Street
                          Baltimore, Maryland  21201
                   ----------------------------------------
                   (Address of principal executive offices)

                                (410) 385-4500
             ----------------------------------------------------
             (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
                                                              --   --
               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                 PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court. Yes  X  No
                                                   --    --

                     APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.  2,496,129
common shares were outstanding as of February 5, 2001.
===============================================================================
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                                   FORM 10-Q

                                     INDEX



                                                           Page No.

PART 1.  FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated balance sheets at December 31,              3
         2000 (unaudited) and June 30, 2000

         Consolidated statements of operations for                4
         the three and six months ended December 31,
         2000 and 1999 (unaudited)

         Consolidated statements of comprehensive                 5
         income (loss) for the three and six months
         ended December 31, 2000 and 1999 (unaudited)

         Consolidated statements of cash flows for                6
         the six months ended December 31, 2000
         and 1999 (unaudited)

         Notes to consolidated financial statements (unaudited)   7

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

Item 3.  Quantitative and Qualitative Disclosures                12
         About Market Risk


PART II. OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security-Holders     12

Item 6.  Exhibits and Reports on Form 8-K                        13

Signatures                                                       14

                                       2
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                   December 31,       June 30,
                                                       2000             2000
                                                   ------------    ------------
ASSETS                                             (Unaudited)
<S>                                                <C>             <C>
Current Assets:
 Cash and equivalents                              $    587,586    $    346,574
 Accounts receivable, net                             1,301,647       1,161,169
 Contracts in process                                    61,864         737,635
 Prepaid expenses                                       201,718         223,480
                                                   ------------    ------------
  Total Current Assets                                2,152,815       2,468,858
Property, plant and equipment, net                    3,723,157       3,992,016
Other assets                                             65,988          89,312
                                                   ------------    ------------
  Total Assets                                     $  5,941,960    $  6,550,186
                                                   ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
 Accounts payable and accrued expenses             $    679,140    $  1,245,032
 Deposits on contracts in process                     1,193,743       1,340,476
                                                   ------------    ------------
  Total Current Liabilities                           1,872,883       2,585,508
Other liabilities                                             -          62,051
                                                   ------------    ------------
  Total Liabilities                                   1,872,883       2,647,559
                                                   ------------    ------------
Commitments and Contingencies
Stockholders' Equity:
 Preferred Stock, no par value,
  authorized 1,500,000 shares
 Class A Convertible Preferred stock,
  no par value; issued and outstanding
  833,300 shares                                      4,937,500       4,937,500
 Class B Convertible Preferred stock,
  no par value; issued and outstanding
  250,000 shares                                        273,438         273,438
 Common stock, $.005 par value; authorized,
  10,000,000 shares; issued and
  outstanding, 2,496,129 shares                          12,481          12,481
 Additional paid-in capital                          11,929,886      11,929,886
 Accumulated deficit                                (13,084,228)    (13,250,678)
                                                   ------------    ------------
  Total Stockholders' Equity                          4,069,077       3,902,627
                                                   ------------    ------------
  Total Liabilities and Stockholders' Equity       $  5,941,960    $  6,550,186
                                                   ============    ============
-------------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.

                                       3
<PAGE>

                        PHARMAKINETICS LABORATORIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                   Three Months Ended                Six Months Ended
                                                      December 31,                      December 31,
                                             -----------------------------    ----------------------------

                                                 2000             1999           2000             1999
                                             -----------      ------------    -----------     ------------
<S>                                          <C>              <C>            <C>              <C>
Revenues                                     $ 2,694,064      $  1,884,424    $ 5,335,910      $  5,094,952
Cost of contracts                              2,126,941         2,403,961      4,136,419         4,815,800
                                             -----------      ------------    -----------      ------------
  Gross profit (loss)                            567,123          (519,537)     1,199,491           279,152

Selling, general and
 administrative expenses                         447,639           798,607        971,942         1,459,259
Research and
 development expenses                             40,947            61,822         74,467            88,901
                                             -----------      ------------    -----------      ------------
Earnings (loss)
 from operations                                  78,537        (1,379,966)       153,082        (1,269,008)

Interest expense                                   3,767             5,072          7,918            10,796
Interest income                                   11,250            12,505         21,711            34,476
                                             -----------      ------------    -----------      ------------
Earnings (loss)
 before income taxes                              86,020        (1,372,533)       166,875        (1,245,328)

Income taxes                                           -                 -            425                 -
                                             -----------      ------------    -----------      ------------
Net earnings (loss)                          $    86,020      $ (1,372,533)   $   166,450      $ (1,245,328)
                                             ===========      ============    ===========      ============
Basic earnings
 (loss) per share                            $      0.03      $      (0.55)   $      0.07      $      (0.50)
                                             ===========      ============    ===========      ============
Basic weighted average
 shares outstanding                            2,496,129         2,496,129      2,496,129         2,496,129
                                             ===========      ============    ===========      ============
Diluted earnings
 (loss) per share                            $      0.02      $      (0.55)   $      0.04      $      (0.50)
                                             ===========      ============    ===========      ============
Diluted weighted average
 shares outstanding                            4,554,545         2,496,129      4,554,545         2,496,129
                                             ===========      ============    ===========      ============

-----------------------------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.

                                       4
<PAGE>

                        PHARMAKINETICS LABORATORIES, INC.
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                (Unaudited)


<TABLE>
<CAPTION>

                                                  Three Months Ended                 Six Months Ended
                                                     December 31,                       December 31,
                                             -----------------------------    -----------------------------

                                                 2000             1999           2000              1999
                                             -----------       -----------    -----------       -----------
<S>                                          <C>               <C>            <C>              <C>

Net earnings (loss)                          $    86,020       $(1,372,533)   $   166,450       $(1,245,328)
Other comprehensive income:
 Unrealized gain on
  investment                                           -            25,892              -            19,754
                                             -----------       -----------    -----------       -----------

Comprehensive income (loss)                  $    86,020       $(1,346,641)   $   166,450       $(1,225,574)
                                             ===========       ===========    ===========       ===========




-----------------------------------------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.

                                       5
<PAGE>

                        PHARMAKINETICS LABORATORIES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                           Six Months Ended
                                                             December 31,
                                                      --------------------------
<S>                                                    <C>          <C>
                                                          2000          1999
                                                      -----------   ------------
Cash flows from operating activities:
  Net earnings (loss)                                 $   166,450   $ (1,245,328)
  Adjustments to reconcile net earnings (loss) to
  net cash provided (used) by operating activities:
    Depreciation and amortization                         286,848        319,844
    Changes in operating assets and liabilities:
      Accounts receivable, net                           (140,478)       710,572
      Contracts in process                                675,771        678,969
      Prepaid expenses and other assets                    45,086        (64,629)
      Accounts payable and accrued expenses              (584,834)      (251,997)
      Deposits on contracts in process                   (146,733)      (889,612)
                                                      -----------   ------------
Net cash provided (used) by operating activities          302,110       (742,181)
                                                      -----------   ------------
Cash flows from investing activities:
    Payment for purchases of property and equipment       (17,989)      (333,549)
                                                      -----------   ------------
Net cash used by investing activities                     (17,989)      (333,549)
                                                      -----------   ------------
Cash flows from financing activities:
    Payments for capital lease obligations                (43,109)       (49,500)
                                                      -----------   ------------
Net cash used by financing activities                     (43,109)       (49,500)
                                                      -----------   ------------
Increase (decrease) in cash and equivalents               241,012     (1,125,230)
Cash and equivalents, beginning of period                 346,574      2,233,198
                                                      -----------   ------------
Cash and equivalents, end of period                   $   587,586   $  1,107,968
                                                      ===========   ============

Supplemental Cash Flow Information:
Non-Cash Transactions:
 Cash Paid for Interest:                              $     7,576   $    10,502

--------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.

                                       6
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

BASIS OF PRESENTATION

   The consolidated balance sheet as of December 31, 2000, the
consolidated statements of operations for the three and six months
ended December 31, 2000 and 1999, the consolidated statements of
comprehensive income (loss) for the three and six months ended
December 31, 2000 and 1999, and the consolidated statements of cash
flows for the six months ended December 31, 2000 and 1999, have been
prepared by the Company without audit.  In the opinion of management,
all adjustments necessary to present fairly the financial position,
results of operations and cash flows at December 31, 2000, and for
all periods presented, have been made.  The consolidated balance
sheet at June 30, 2000 has been derived from the audited financial
statements as of that date.

  Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed
or omitted.  It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in
the Company's Annual Report on Form 10-K for the year ended June 30,
2000.

  The Company operates principally in one industry segment, the
testing of pharmaceutical products and related services.  Revenues
include contract revenue and revenue from license fees under special
agreements whereby the Company receives license fees based upon the
clients' actual product sales.

WARNING LETTER

  At the end of July 1999, the Company received a warning letter
from the United States Food and Drug Administration ("FDA") regarding
PharmaKinetics' noncompliance with certain required protocols in
bioequivalence studies, which were conducted prior to fiscal 1999.  In
the warning letter, the FDA advises PharmaKinetics to take immediate
corrective action and that the failure to do so may result in regulatory
action.  The Company has responded to the FDA and has taken the
corrective actions it believes necessary to address the issues and
concerns raised in the warning letter.

ACCOUNTING ESTIMATES

  The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of

                                       7
<PAGE>

America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period.  Actual amounts could differ from these estimates.

EARNINGS (LOSS) PER SHARE

  Basic earnings (loss) per share ("EPS") is calculated by dividing
net earnings (loss) by the weighted average common shares outstanding
during the period.

  Diluted EPS reflects the potential dilution to EPS that could
occur upon conversion or exercise of securities, options or other such
items, to common shares using the treasury stock method based upon the
weighted average fair value of the Company's common stock during the
period.  The Company's Class A Convertible Preferred Stock, Class B
Convertible Preferred Stock, warrants to acquire common stock,
outstanding stock options granted under the Company's stock option
plans and other options granted outside of the Company's plans are
considered common stock equivalents for the purpose of the diluted
earnings (loss) per share data; however, they are excluded from the
calculations for the three and six month periods ended December 31,
1999, because the effect of their inclusion would be anti-dilutive.
For the three and six month periods ended December 31, 2000, the
weighted average shares used in computing basic earnings per share
were 2,496,129 and the dilutive common stock equivalents totaled
2,058,416.  No stock options were included in the calculation for the
three and six month periods ended December 31, 2000, because all of
the option exercise prices were above the average of the market price
of the Company's stock during the period. For the three and six month
periods ended December 31, 1999, dilutive common stock equivalents
would have totaled 1,669,482, and 1,669,927, respectively, of which
2,882 and 3,327, respectively, related to options outstanding.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

CERTAIN FORWARD-LOOKING INFORMATION

  Certain statements in this Management's Discussion and Analysis
and elsewhere in this Form 10-Q are forward-looking statements based
on current expectations, and entail various risks and uncertainties
that could cause actual results to differ materially from those
expressed in such forward-looking statements.  Such risks and
uncertainties include the effect on the Company's ability to market
its services and obtain new business in light of the receipt of a
warning letter from the United States Food and Drug Administration

                                       8
<PAGE>

(the "FDA"); dependence of the Company on product development cycles
of its clients; dependence of the Company on certain customers;
dependence of the Company on its key personnel and their ability to
continuously develop new methodology for clinical and analytical
applications; dependence of the Company on the availability of
volunteer study participants; and the Company's ability to raise
sufficient working capital to meet current operating needs.
Other more general factors that could cause or contribute to such
differences include, but are not limited to, general economic
conditions, conditions affecting the pharmaceutical industry, and
consolidation resulting in increased competition within the Company's
market.  These risk factors are discussed more specifically in the
Company's Annual Report on Form 10-K for its fiscal year ended
June 30, 2000.

  A warning letter, which addressed the Company's failure to conduct certain
studies in compliance with the protocol in prior years, was received from the
FDA in July 1999. The Company responded to the warning letter in writing and
representatives of the Company met with the FDA to discuss the steps which it
has taken to comply with all regulatory requirements. The Company addressed this
situation directly with its clients and is undertaking an aggressive effort to
regain their confidence. The Company believes its efforts, which also included
instituting corrective actions, have resulted in an increase in order placements
and revenues during the quarters ended June 30, 2000, September 30, 2000 and
December 31, 2000. No assurances can be given that such increases will continue.
However, the Company believes that the most significant negative effects of the
warning letter were experienced in previous quarters.


RESULTS OF OPERATIONS

  The Company's total revenue, which includes contract revenue and
license fees based upon clients' actual product sales, increased 43.0%
and 4.7%, to $2,694,064 and $5,335,910, for the three and six month
periods ended December 31, 2000, from $1,884,424 and $5,094,952,
respectively, for the same periods in the prior year.  The increase
was the result of increased contract revenue from an increased number
of contracts, offset by lower license fee income.

  Contract revenues increased 44.4% and 5.4% to $2,690,090 and
$5,308,926, for the three and six month periods ended December 31,
2000, respectively, compared to $1,862,365 and $5,039,322, in the
same periods in 1999, primarily as a result of an increase in
revenues of approximately $1,640,000 and $2,950,000, respectively,
for Phase I, Bioanalytical, and Clinical Trial Management services in
the three and six month periods ended December 31, 2000, offset by
reductions of approximately $860,000 and $2,800,000, respectively, in
revenues from bioequivalence studies, as compared with the same
periods of the prior year.  The Company has focused its efforts on

                                       9
<PAGE>

diversifying its services and believes that such efforts have been successful,
as evidenced by the growth in the periods presented of service offerings other
than bioequivalence studies. The Company has experienced a reduction in revenues
for its bioequivalence services, but expects to continue to compete in this
market, which continues to be strong and has many products coming off patent in
the next few years.

  License fee income decreased 82.0% and 51.5% to $3,974 and
$26,984, for the three and six month periods ended December 31, 2000,
compared to $22,059 and $55,630, respectively, for the same periods
in the prior year. This decrease was the result of a decline in sales
for the product covered by the Company's sole remaining license fee
agreement.  The Company believes it is unlikely that its clients will
wish to utilize license fee arrangements in the future as compensation
for work performed.  As a result of this trend, contract revenues,
rather than licensing income, will continue to be the primary source
of revenues.

  The Company's gross profit increased 209.2% and 329.7%, to
$567,123 and $1,199,491 for the three and six month periods ended
December 31, 2000, respectively, compared to ($519,537) and $279,152
for the same periods of the prior year.  Gross profit as a percentage
of revenues increased to 21.1% and 22.5%, for the three and six month
periods ended December 31, 2000, from (27.6%) and 5.5%, respectively,
for the comparable periods of the prior year.  The increase in gross
margin for the three and six month periods ended December 31, 2000,
resulted primarily from increases in revenue, but was also positively
affected by the Company's efforts to contain costs and conserve cash.

  Selling, general and administrative expenses of $447,639 and
$971,942 for the three and six month periods ended December 31, 2000,
decreased 43.9% and 33.4%, respectively, compared to $798,607 and
$1,459,259 for the same periods in the prior year. The decrease is
primarily attributable to a restructuring of the Company's business
development department and administrative functions, and the
corresponding loss of two of the Company's executives, offset by
the Company's increase in its allowance for doubtful accounts of
approximately $63,000.  As a percentage of revenues, selling,
general and administrative expenses decreased to 16.6% and 18.2%,
respectively, for the three and six month periods ended December 31,
2000, compared to 42.4% and 28.7%, respectively, for the same periods
of the prior year. The Company's selling, general, and administrative
expenses, excluding the adjustment for its allowance for doubtful
accounts in the six month period ended December 31, 2000, would have
been $909,000, representing a decrease of 37.7%, for the six month
period ended December 31, 2000, compared to the same period of the
prior year.  The Company continues to focus its business development
efforts on generating revenues from existing and potential clients.

                                       10
<PAGE>

  Research and development expenses decreased 33.8% and 16.2% to
$40,947 and $74,467 for the three and six month periods ended
December 31, 2000, respectively, from $61,822 and $88,901 for the
comparable periods of the prior year.  The decrease in research and
development expenses for the six month period ended December 31, 2000,
compared to the same period of the prior year, is primarily
attributable to the loss of certain of the Company's research and
development staff for which the Company is currently recruiting
replacements.  In addition, during the three month period ended
December 31, 2000, the Company utilized certain of its research and
development personnel, as well as instruments normally used to conduct
research and development, for activities necessary to meet project
deadlines for clients.  The Company has and will continue to
periodically re-deploy its personnel based on client requirements
for contracted services.  The Company continues to invest in its
research and development efforts and plans to develop methods for
use on its LC/MS/MS instrumentation for fiscal 2001 and beyond.

  No provision for income taxes has been recorded.  The Company has
available unused operating loss and business tax credit carryforwards,
the benefit of which is reduced by a full valuation allowance.

LIQUIDITY AND CAPITAL RESOURCES

  At December 31, 2000, the Company had available $587,586 in
current operating cash to meet the needs of its business, compared to
$346,574 at June 30, 2000.  Cash increased principally as a result of
the Company's cash inflow from operations, including changes in the
Company's operating accounts.  During the six months ended December 31,
2000, the Company invested $17,989 for capital purchases, all of which
was paid in cash.

  The Company's primary source of funds is cash flow from operations,
which increased by $1,044,291 in the six months ended December 31, 2000,
compared to the same period of the prior year.  To continue to conserve
cash, the Company has initiated cost cutting measures and is taking
other appropriate steps to manage the Company's cash balances.  No
assurances can be given that the Company's current cash balances will
be sufficient to meet the Company's ongoing operating needs or that
financing can be obtained from conventional sources.

  At December 31, 2000, the Company reported a decrease in its
contracts in process account which represents costs incurred for
studies for which revenues have not been recognized and which are
currently underway.  Deposits on contracts in process have also
decreased indicating a decrease in the number of contracted studies
for which initial payments have been received. Prepaid expenses have
decreased at December 31, 2000, compared to June 30, 2000, due to the

                                       11
<PAGE>

timing of payments on certain expense items related to future periods.
Changes in these account balances affect the Company's operating cash
flow.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Risk

  The Company does not have exposure to foreign currency exchange
rate fluctuations since the Company's contracts require payment to the
Company in U.S. dollars.

PART II.  OTHER INFORMATION

ITEM 4.   Submission of Matters to a Vote of Security-Holders

  The Annual Meeting of Stockholders of PharmaKinetics Laboratories,
Inc., a Maryland Corporation, was held November 28, 2000, at 11:00 a.m.,
local prevailing time, at PharmaKinetics Laboratories, Inc., 302 W.
Fayette Street, Baltimore, Maryland 21201, to consider and vote upon:

1.  The election of five directors to serve until the next Annual Meeting of
    Stockholders, and until their successors are duly elected and qualified.

    Election by holders of Common Stock and Preferred Stock voting together:

         Name                                     For          Against

 Thomas F. Kearns, Jr.                         3,323,919        66,541
 James M. Wilkinson, II, Ph.D.                 3,323,907        66,553

    Election by holders of Preferred Stock voting alone:

         Name                                     For          Against

 Leslie B. Daniels                             1,110,273         -
 Jerome A. Halperin                            1,110,273         -
 Kamal K. Midha, C.M., Ph.D., D.Sc.            1,110,273         -


2.   A proposal to ratify the selection of PricewaterhouseCoopers LLP,
     as the Company's independent auditors for the fiscal year ending
     June 30, 2001.

                                                              Broker Non-votes
                               For             Against         or Abstentions

                            3,337,663           13,140              39,657

     All proposals presented were approved by the Stockholders of the
     Company.

                                       12
<PAGE>

ITEM 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:

         Exhibit 10(g): Severance Agreement, dated November 28, 2000, between
           the Company and Cynthia A. Schurick (filed herewith).

         Exhibit 10(h): Severance Agreement, dated November 28,
          2000, between the Company and James M. Wilkinson, II,
          Ph.D. (filed herewith).

         (b)  Reports on Form 8-K
              No reports on Form 8-K were filed during the quarter ended
              December 31, 2000.




                                       13
<PAGE>

                                  SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                                   PHARMAKINETICS LABORATORIES, INC.
                                   Registrant



February 14, 2001                  /s/ James M. Wilkinson, II, Ph.D.
-----------------                  --------------------------------
Date                               James M. Wilkinson, II, Ph.D.
                                   President and
                                   Chief Executive Officer



February 14, 2001                  /s/ Taryn L. Kunkel
-----------------                  -------------------
Date                               Taryn L. Kunkel
                                   Vice President and
                                   Chief Financial Officer

                                       14