<PAGE>1
                          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, 1995

                               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)
                         (Zip Code)
               
                      (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 _____
              
           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. 
12,195,891 common shares were outstanding as of February 9, 1996.



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              PHARMAKINETICS LABORATORIES, INC.
                         FORM 10-Q

                           INDEX



                                                       Page No.

PART 1.  FINANCIAL INFORMATION

ITEM 1.  Financial Statements

         Statements of Operations for the three 
         and six months ended December 31, 1995 
         and 1994 (unaudited)                              3

         Balance Sheets at December 31, 1995 
         (unaudited) and June 30, 1995                     4

         Statements of Cash Flows for the six 
         months ended December 31, 1995 and 1994
         (unaudited)                                       5

         Notes to Financial Statements (unaudited)         6

ITEM 2.  Management's Discussion and Analysis of 
         Financial Condition and Results of Operations     7


PART II. OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K                  9

         Signatures                                        10






















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PART I.  Financial Information
ITEM 1.  Financial Statements

                     PHARMAKINETICS LABORATORIES, INC.
                         STATEMENTS OF OPERATIONS
                               (Unaudited)
<TABLE>
<CAPTION>
                            Three Months Ended        Six Months Ended
                               December 31,              December 31,
                         -----------------------   -----------------------
                            1995         1994         1995         1994
                         ----------   ----------   ----------   ----------
<S>                      <C>          <C>          <C>          <C>
Contract revenue         $2,106,538   $2,471,110   $4,828,098   $5,071,736

Cost of contracts         1,278,938    1,346,077    3,191,577    3,080,112
                         ----------   ----------   ----------   ----------
Gross profit                827,600    1,125,033    1,636,521    1,991,624

General and 
   administrative expenses  513,914      560,265    1,085,316    1,147,989
Research and 
   development expenses      99,895       47,053      196,280      101,196
                         ----------   ----------   ----------   ----------
Earnings 
   from operations          213,791      517,715      354,925      742,439

Interest expense            (60,899)     (64,761)    (121,059)    (128,372)
Interest income              12,015       10,831       21,469       21,972
Gain (loss) on disposal
   of equipment              10,376            -       (2,172)           -
Loss on sale 
   of investments                 -     (101,479)           -     (101,479)
Write-down 
   of investments                 -      (46,750)           -      (46,750)
                         ----------   ----------   ----------   ----------
Earnings 
   before income taxes      175,283      315,556      253,163      487,810
Income taxes                      -            -            -            -
                         ----------   ----------   ----------   ----------
Net earnings              $ 175,283    $ 315,556    $ 253,163    $ 487,810
                         ==========   ==========   ==========   ==========

Net earnings per share        $0.01        $0.03        $0.02        $0.04
                         ==========   ==========   ==========   ==========
Weighted average 
   shares outstanding    12,284,338   12,612,389   12,320,027   12,631,049
                         ==========   ==========   ==========   ==========
--------------------------------------------------------------------------
                     See notes to financial statements.
</TABLE>




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                   PHARMAKINETICS LABORATORIES, INC.
                            BALANCE SHEETS
                             (Unaudited)
<TABLE>
<CAPTION>
                                         December 31,       June 30,
                                            1995              1995
                                         -----------      -----------
<S>                                      <C>              <C>
ASSETS
Current Assets:
  Cash and equivalents                   $   720,692      $ 1,044,782
  Restricted cash and equivalents             39,099           39,036
  Accounts receivable, net                   895,121          774,684
  Refundable income taxes                     29,364           29,364
  Contracts in process                       976,711          695,359
  Prepaid expenses                           196,732           63,681
                                         -----------      -----------
    Total Current Assets                   2,857,719        2,646,906
Property, plant and equipment, net         3,690,712        3,848,020
Other assets                                  58,422           58,422
                                         -----------      -----------
    Total Assets                         $ 6,606,853      $ 6,553,348
                                         ===========      ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable and accrued expenses  $   974,404      $ 1,378,495
  Deposits on contracts in process         1,427,907        1,133,547
  Current portion of long-term debt          217,146          198,338
                                         -----------      -----------
    Total Current Liabilities              2,619,457        2,710,380
Other liabilities                            120,375          116,150
Long-term debt                             1,844,999        1,957,959
                                         -----------      -----------
    Total Liabilities                      4,584,831        4,784,489
                                         -----------      -----------
Commitments and Contingent Liabilities
Stockholders' Equity:
  Preferred Stock, no par value; 
    1,500,000 shares authorized 
    and unissued                                   -                -
  Common Stock, $.001 par value; 
    authorized, 25,000,000 shares; 
    issued 12,195,891 shares                  12,196           12,196
  Additional paid-in capital              12,013,701       12,013,701
  Accumulated deficit                    (10,003,875)     (10,257,038)
                                         -----------      -----------
    Total Stockholders' Equity             2,022,022        1,768,859
                                         -----------      -----------
    Total Liabilities and 
      Stockholders' Equity               $ 6,606,853      $ 6,553,348
                                         ===========      ===========
---------------------------------------------------------------------
                   See notes to financial statements.

</TABLE>

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                 PHARMAKINETICS LABORATORIES, INC.
                     STATEMENTS OF CASH FLOWS
                           (Unaudited)
<TABLE>
<CAPTION>
                                                   Six Months Ended
                                                     December 31,
                                                 --------------------
                                                   1995       1994
                                                 ---------  ---------
<S>                                              <C>        <C>
Cash flows from operating activities:
  Net earnings                                   $ 253,163  $ 487,810
  Adjustments to reconcile net earnings 
   to net cash from operating activities:
   Depreciation and amortization                   191,486    146,011
   Loss of sale of equipment                         2,172          -
   Loss on sale of investments                           -    101,479
   Write-down of investments                             -     46,750
   Changes in operating assets 
    and liabilities:
    Accounts receivable                           (102,437)  (241,583)
    Contracts in process                          (281,352)  (502,051)
    Prepaid expenses and other assets             (133,051)  (106,542)
    Accounts payable and accrued expenses         (395,362)   387,610
    Accrued non-recurring expenses                       -    (19,167)
    Deposit on contracts in process                294,360    227,104
    Other liabilities                                    -   (164,532)
                                                 ---------  ---------
Net cash provided (used) by operating activities  (171,021)   362,889
                                                 ---------  ---------
Cash flows from investing activities:
  Payment for purchase of property and equipment   (74,833)  (475,780)
  Proceeds from sale of equipment                   68,400          -
  Proceeds from sale of investment                       -     38,947
                                                 ---------  ---------
Net cash used by investing activities               (6,433)  (436,833)
                                                 ---------  ---------
Cash flows from financing activities:
  Payment for capital lease obligations            (52,421)         -
  Payment on long-term debt                        (94,152)  (101,127)
                                                 ---------  ---------
Net cash used by financing activities             (146,573)  (101,127)
                                                 ---------  ----------
Decrease in cash and equivalents                  (324,027)  (175,071)
Cash and equivalents, beginning of period        1,083,818  1,074,582
                                                 ---------  ---------
Cash and equivalents, end of period              $ 759,791  $ 899,511
                                                 =========  =========
Non-Cash Transactions:
  Fixed assets acquired through capital leases   $  47,917  $  26,670
  Proceeds receivable on sale of equipment       $  18,000  $       -
  Proceeds receivable on sale of investment      $       -  $   8,800

Cash Paid for Interest:                          $ 236,558  $ 109,901
---------------------------------------------------------------------- 
                   See notes to financial statements.
</TABLE>
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                PHARMAKINETICS LABORATORIES, INC.
                  NOTES TO FINANCIAL STATEMENTS
                           (Unaudited)


BASIS OF PRESENTATION

     The statements of operations for the three and six months ended
December 31, 1995, and 1994, the balance sheet as of December 31,
1995, and the statements of cash flows for the six months ended
December 31, 1995, and 1994, 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, 1995, and for all periods presented, have been
made.  The balance sheet at June 30, 1995, 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 generally accepted
accounting principles have been condensed or omitted.  It is suggested
that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's
fiscal 1995 Form 10-K.

     The Company operates principally in one industry segment, the
testing and related research of pharmaceutical products. Contract
revenue includes revenue from operations and from licensing
technologies under special agreements whereby the Company receives
license fees based upon the clients' actual product sales.  License
fee income of $119,144 and $246,910 was recorded for the three and six
month periods ended December 31, 1995, respectively, compared to
$148,728 and $379,775 for the same periods of the prior year.  The
results of operations for the periods ended December 31, 1995, are not
necessarily indicative of the operating results for the full year.


ACCOUNTING STANDARD ISSUED

     During 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123, "Accounting for
Stock Based Compensation", which is generally effective for fiscal
years beginning after December 15, 1995.  The Company expects to adopt
the pro-forma note disclosure of the Statement.


ACCOUNTING ESTIMATES

     The preparation of financial statements in conformity with
generally accepted accounting principles 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.



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PART I.

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


RESULTS OF OPERATIONS

     The Company's revenue of $2,106,538 and $4,828,098 for the three
and six month periods ended December 31, 1995, represent decreases of
14.8% and 4.8%, respectively, compared to $2,471,110 and $5,071,736
for the same periods of the prior year.  Included in the Company's
revenue is license fee income of $119,144 and $246,910 for the three
and six month periods ended December 31, 1995, compared to $148,728
and $379,775 for the same periods of the prior year.  License fee
income, based on clients' sales of approved drugs, will continue
through the expiration of the license fee agreements, the first of
which will expire during fiscal 1998.

     The decrease in revenue for the three and six months ended
December 31, 1995, primarily resulted from a decline in the amount of
license fee income the Company is receiving and from the Company's
July 1995 decision to discontinue its offering of stability and
dissolution services. Stability and dissolution services had
represented 7.8% and 5.8% of revenues in the three and six month
periods ended December 31, 1994.  Operating revenues from continued
lines of service decreased 6.7% and increased 3.7% for the three and
six month periods ended December 31, 1995, respectively.  These
changes are driven primarily by the status of current contracts and
estimated dates for completion.

     The Company's gross profit decreased 26.4% and 17.8% to $827,600
and $1,636,521 for the three and six month periods ended December 31,
1995, compared to $1,125,033 and $1,991,624, respectively, for the
same periods of the prior year.  Gross profit as a percentage of
revenue decreased to 39.3% and 33.9%, for the three and six month
periods ended December 31, 1995, a 6.2% and 5.4% decrease,
respectively, compared to the same periods of the prior year.  The
decrease in gross margin primarily resulted from the Company's
December 1994 reversal of $232,719 in accruals for unemployment
insurance contributions assessed on study participant wages.  The
Company had received a favorable determination to its long standing
legal action against the State of Maryland.  Absent this reversal in
the prior periods, gross profit as a percentage of revenue would have
been 36.1% and 34.7% for the three and six month periods ended
December 31, 1994.  Additionally, the decline in license fee income
has negatively impacted gross margin.

     General and administrative expenses decreased 8.3% and 5.5%, to
$513,914 and $1,085,316, for the three and six month periods ended
December 31, 1995, from $560,265 and $1,147,989 for the same periods
in the prior year, respectively.  The Company carefully evaluated its
cost structure in the quarter ended September 30, 1995, and took



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actions to decrease costs on an on-going basis.  In addition to
eliminating the stability services group, other positions throughout
the Company were eliminated in order to reduce costs.  As a part of
these efforts, the Company sold equipment and realized a gain of
$10,376 in the current period, but a loss for the six month period
ended December 31, 1995, of $2,172.  

     Research and development expenses increased 112.3% and 94.0% in
the three and six month periods ended December 31, 1995, compared to
the same periods in the prior year.  The Company has continued to
invest in its research and development effort in the current periods
in an effort to bring new analytical methods on-line to meet client
demands.

     No provision for income taxes has been recorded.  The Company has
available unused operating loss and business tax credit carryforwards. 


LIQUIDITY AND CAPITAL RESOURCES

     The reduction in the cash balances of the Company of $324,027 for
the six months ended December 31, 1995, is primarily attributable to
changes in the operating accounts of the Company.  Accounts payable
and accrued expenses have diminished significantly due to payments
made on a current basis.  On a discretionary basis, the Company has
made and expects to continue to make escalated principal payments
relative to its term note payable to the bank.  The term note has
certain financial ratio and cash flow covenants with which the Company
is currently in compliance.  However, no assurance can be given that
the results of future operations will allow the Company to remain in
compliance.  At December 31, 1995, the Company had working capital of
$238,262, compared to a deficiency of $63,474 at June 30, 1995.  At
December 31, 1995, the Company had available $720,692 in current
operating cash to meet the needs of its business and $39,099 for the
remaining administrative fees related to the Company's Amended Plan of
Reorganization, confirmed on April 1, 1993.  The Company also has
available a $500,000 line of credit through its primary secured
lender, which was unused as of December 31, 1995.  Total Stockholders'
Equity at December 31, 1995, was $2,022,022, compared to $1,768,859 at
June 30, 1995.  The increase is attributable to net income of
$253,163.

     At December 31, 1995, the Company reported an increase in its
contracts in process account which has contributed to the decrease in
revenue for the quarter.  Deposits on contracts in process increased
26.0% indicating an increase in contracted studies.  Changes in these
account balances affect  the Company's backlog, which will be utilized
to generate future revenue.







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PART II.  OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits:

             Exhibit 11:  Computation of Earnings per Share

         (b) Reports on Form 8-K

             No reports on Form 8-K were filed during the quarter
             ended December 31, 1995.











































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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.




                               PHARMAKINETICS LABORATORIES, INC.
                               Registrant



February 14, 1996              /s/James K. Leslie                
Date                           James K. Leslie
                               President and
                               Chief Executive Officer

February 14, 1996              /s/Taryn L. Kunkel                
Date                           Taryn L. Kunkel                         
                               Vice-President and
                               Chief Financial Officer






















         
         
         
         
         
         
         
         
         
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