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

                   For the Quarter Period Ended March 31, 2002

                         Commission file number 0-11580

                        PHARMAKINETICS LABORATORIES, INC.
             (Exact Name of Registrant as Specified in its Charter)

          Maryland                                  52-1067519
  (State of Incorporation)              (I.R.S. Employer Identification No.)

                             302 West Fayette Street
                            Baltimore, Maryland 21201
                    (Address of Principal Executive Offices)

        Registrant's Telephone Number, Including Area Code (410) 385-4500

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
   -------   ------

            Class                               Outstanding May 14, 2002
Common Stock, $.005 par value                           2,496,129

<PAGE>

                        PHARMAKINETICS LABORATORIES, INC.
                                      INDEX

                                                                            Page
                                                                            ----

Part I. FINANCIAL INFORMATION

        Item 1.  Financial Statements

                 Consolidated Balance Sheets                                  2

                 Consolidated Statements of Operations                        3

                 Consolidated Statements of Changes in Stockholders' Equity   4

                 Consolidated Statements of Cash Flows                        5

                 Notes to Consolidated Financial Statements                   6

        Item 2.  Management's Discussion and Analysis of Financial Position
                 and Results of Operation                                     7

        Item 3.  Quantitative and Qualitative Disclosures about Market Risk   9

Part II. OTHER INFORMATION

        Item 1.  Legal Proceedings                                            9

        Item 2.  Changes in Securities                                        9

        Item 3.  Defaults Upon Senior Securities                              9

        Item 4.  Submission of Matters to a Vote of Security Holders          9

        Item 5.  Other Information                                            9

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

        Signatures                                                           10


                                       1
<PAGE>

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

     The consolidated financial statements included in this report have been
prepared, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have
been condensed or omitted pursuant to such rules and regulations. These
consolidated financial statements should be read in conjunction with the audited
financial statements and the related notes included in our annual report on Form
10-K for the fiscal year ended June 30, 2001.

     In the opinion of our management, any adjustments contained in the
accompanying unaudited consolidated financial statements are of a normal
recurring nature necessary to present fairly its financial position, results of
operations, changes in stockholders' equity and cash flows as of and for the
three-month and nine-month periods ended March 31, 2002. Interim results are not
necessarily indicative of results for the full fiscal year.

                        PHARMAKINETICS LABORATORIES, INC.
                           CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                      March 31, 2002  June 30, 2001
                                                       (unaudited)
                                                      --------------  -------------
<S>                                                     <C>             <C>
                  ASSETS
                  ------
Current assets:
 Cash and cash equivalents                              $     96        $    414
 Accounts receivable, net                                    649           1,443
 Contracts in process                                          8             119
 Prepaid expenses                                            208             215
                                                        --------        --------
    Total current assets                                     961           2,191
Property, plant and equipment, net                         3,304           3,445
Other assets                                                  --              66
                                                        --------        --------
                                                        $  4,265        $  5,702
                                                        ========        ========

  LIABILITIES AND STOCKHOLDERS' EQUITY
  ------------------------------------
Current liabilities:
 Accounts payable                                       $  1,028        $    510
 Accrued expenses                                            199             246
 Deposits on contracts in process                            398           1,557
                                                        --------        --------
    Total current liabilities                              1,625           2,313
                                                        --------        --------

Stockholders' Equity:
Convertible Preferred stock:
  Class A, no par value; authorized 1,500,000
   shares;  issued and outstanding, 833,300
   shares at Mar. 31, 2002 and June 30, 2001,
   respectively                                            4,938           4,938

  Class B, no par value;  issued and outstanding,
   250,000 shares at Mar. 31, 2002 and June 30,
   2001, respectively                                        273             273

  Common stock, $.005 par value; authorized,
   10,000,000 shares; issued and outstanding,
    2,496,129 shares at Mar. 31, 2002 and
    June 30, 2001, respectively                               12              12

 Additional paid-in capital                               11,930          11,930
 Accumulated deficit                                     (14,513)        (13,764)
                                                        --------        --------
    Total stockholders' equity                             2,640           3,389
                                                        --------        --------
                                                        $  4,265        $  5,702
                                                        ========        ========
</TABLE>

           See accompanying notes to consolidated financial statements.


                                       2
<PAGE>


                        PHARMAKINETICS LABORATORIES, INC.
                CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
                    (In thousands, except for per share data)

<TABLE>
<CAPTION>
                                                                 Three Months Ended          Nine Months Ended
                                                                     March  31,                  March 31,
                                                                     ----------                  ---------
                                                                 2002          2001          2002          2001
                                                                 ----          ----          ----          ----
<S>                                                            <C>           <C>           <C>           <C>
Revenues                                                       $ 1,921       $ 1,423       $ 5,829       $ 6,759

Cost and expenses:

  Cost of contracts                                              1,558         1,289         5,223         5,425

  Selling, general and administrative                              447           424         1,320         1,395

  Research and development                                           7            32            80           107
                                                               -------       -------       -------       -------
    Total costs and expenses                                     2,012         1,745         6,623         6,927
                                                               -------       -------       -------       -------

Loss from operations                                               (91)         (322)         (794)         (168)

Other income and (expenses):

  Interest income                                                    1            16            13            36
  Interest expense                                                  (1)           (3)           (3)          (11)
  Gain on sale of equipment                                         35            --            35            --
                                                               -------       -------       -------       -------
                                                                    35            13            45            25
                                                               -------       -------       -------       -------

Net loss                                                       $   (56)      $  (309)      $  (749)      $  (143)
                                                               =======       =======       =======       =======

Loss per common share:

  Basic                                                        $ (0.02)      $ (0.12)      $ (0.30)      $ (0.06)
                                                               =======       =======       =======       =======

  Diluted                                                      $ (0.02)      $ (0.12)      $ (0.30)      $ (0.06)
                                                               =======       =======       =======       =======

Shares used in calculation of loss
per common share:

  Basic                                                          2,496         2,496         2,496         2,496
                                                               =======       =======       =======       =======

  Diluted                                                        2,496         2,496         2,496         2,496
                                                               =======       =======       =======       =======
</TABLE>

          See accompanying notes to consolidated financial statements.


                                       3
<PAGE>


                        PHARMAKINETICS LABORATORIES, INC.
      CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited)
                        Nine Months Ended March 31, 2002
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                            Preferred Stock

                                    Class A                 Class B             Common Stock
                                    --------                -------             ------------
                                                                                                     Additional
                              Number of              Number of               Number of                Paid-in     Accumulated
                               Shares     Amount      Shares      Amount      Shares      Amount      Capital       Deficit
                               ------     ------      ------      ------      ------      ------      -------       -------
<S>                            <C>       <C>          <C>        <C>         <C>         <C>         <C>           <C>
Balance, July 1, 2001          833,300   $   4,938    250,000    $     273   2,496,129   $      12   $  11,930     $ (13,764)

Comprehensive loss

   Net loss                                                                                                             (749)

   Other comprehensive loss

Total comprehensive loss


                               ----------------------------------------------------------------------------------------------
Balance March 31, 2002         833,300   $   4,938    250,000    $     273   2,496,129   $      12   $  11,930     $ (14,513)
                               ----------------------------------------------------------------------------------------------

<CAPTION>

                              Other Accumulated     Total
                                Comprehensive   Stockholders'
                                Income (loss)      Equity
                                -------------      ------

<S>                             <C>               <C>
Balance, July 1, 2001           $          --     $   3,389

Comprehensive loss                                       --

   Net loss                                            (749)

   Other comprehensive loss                              --
                                                  ---------
Total comprehensive loss                          $    (749)
                                                  ---------

                                ---------------------------
Balance March 31, 2002          $          --     $   2,640
                                ---------------------------
</TABLE>

See accompanying notes to consolidated financial statements


                                       4
<PAGE>


                        PHARMAKINETICS LABORATORIES, INC.
                CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                Nine Months Ended
                                                                     March 31,
                                                                 2002        2001
                                                                 ----        ----
<S>                                                            <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                     $  (749)    $  (143)
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
     Depreciation and amortization                                 406         431
 Changes in operating assets and liabilities:
     Accounts receivable, net                                      794         531
     Contracts in process                                          111         365
     Prepaid expenses and non-current other assets                  73          (6)
     Accounts payable and accrued expenses                         471        (489)
     Deposits on contracts in process                           (1,159)        806
                                                               -------     -------
        Net cash (used in) provided by operating activities        (53)      1,495
                                                               -------     -------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                             (265)        (25)
                                                               -------     -------
       Net cash used in investing activities                      (265)        (25)
                                                               -------     -------

CASH FLOWS FROM FINANCING ACTIVITES:
  Payments on capital lease obligations                             --         (65)
                                                               -------     -------
       Net cash used in financing activities                        --         (65)
                                                               -------     -------

Net (decrease) increase in cash and cash equivalents              (318)      1,405

CASH AND CASH EQUIVALENTS AT THE BEG. OF PERIOD                    414         346
                                                               -------     -------

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD                 $    96     $ 1,751
                                                               =======     =======


Supplemental disclosures of cash flow information:
   Interest paid                                               $     2     $    11
                                                               =======     =======
</TABLE>


See accompanying notes to consolidated financial statements.


                                       5
<PAGE>

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

1. Organization and Description of Business

     PharmaKinetics Laboratories, Inc. ("PharmaKinetics" or the "Company") is a
contract research organization located in Baltimore, Maryland, providing a range
of clinical research and development services to the worldwide pharmaceutical
and biotechnology industries in the development of prescription and
non-prescription drug products. These services include Phase I clinical
research, bioanalytical laboratory testing, and the management and monitoring of
multi-center clinical trials. The Company offers ancillary services in these
areas such as protocol development, case report form design, data management,
biostatistics and regulatory consulting.

2. Summary of Significant Accounting Policies

Principles of Consolidation

     The accompanying consolidated financial statements include the results of
the Company and the PK Limited Partnership, a wholly owned subsidiary, which
owns the building the Company occupies. The Company includes 100% of the
building operations in its financial statements.

Reclassifications

     Certain prior year amounts have been reclassified to conform to the current
year presentation.

Use of Estimates

     The preparation of the Company's financial statements in conformity with
generally accepted accounting principles in the Unites States of America,
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, revenues and expenses, and disclosure of
contingent assets and liabilities at the date of the financial statements.
Actual amounts will differ from these estimates.

Earnings (Loss) per Share

     Basic earnings (loss) per share ("EPS") is computed by dividing earnings
(loss) by the weighted-average number of shares outstanding for the period. The
computation of Diluted EPS is similar to Basic EPS except that the
weighted-average number of shares outstanding for the period is increased to
include the number of additional shares that would have been outstanding if the
dilutive potential common shares had been issued. Potential common shares are
excluded if the effect on earnings (loss) per share is antidilutive.

     The following table presents the computations of basic and diluted EPS (In
thousands, except per share data):

<TABLE>
<CAPTION>
                                              Three Months Ended         Nine Months Ended
                                                   March  31,               March  31,
                                                   ----------               ----------
                                              2002           2001        2002        2001
                                              ----           ----        ----        ----
<S>                                        <C>           <C>          <C>          <C>
Net loss                                   $      (56)   $     (309)  $     (749)  $  (143)
                                           ==========    ==========   ==========   =======

Basic loss per common share                $    (0.02)   $    (0.12)  $    (0.30)  $ (0.06)
                                           ==========    ==========   ==========   =======

Diluted loss per common share              $    (0.02)   $    (0.12)  $    (0.30)  $ (0.06)
                                           ==========    ==========   ==========   =======

Weighted-average shares used to compute
basic loss per common share                     2,496         2,496        2,496     2,496
                                           ==========    ==========   ==========   =======

Effect of dilutive securities                      --            --           --        --
                                           ==========    ==========   ==========   =======

Weighted-average shares used to compute
diluted loss per common share                   2,496         2,496        2,496     2,496
                                           ==========    ==========   ==========   =======
</TABLE>


                                       6
<PAGE>

3.  Financial Results and Liquidity

     The Company had cash and cash equivalents of $96,000 at March 31, 2002. The
Company's primary source of funds is cash flow from operations although,
beginning in the quarter ended March 31, 2002, the Company from time to time has
borrowed funds from a director to cover short-term operating requirements.
During the nine months ended March 31, 2002, cash and cash equivalents decreased
by $318,000, primarily due to the acquisition of key laboratory equipment in the
amount of $265,000. When possible, the Company seeks to finance the acquisition
of capital assets through leasing arrangements. There were no such arrangements
in place at March 31, 2002.

     The operating environment confronting the Company raises significant
uncertainty about the Company's ability to continue as a going concern. The
Company's near term and long-term operating strategies focus on its sales and
marketing efforts to gain new as well as previous customers. In addition, the
Company has and is pursuing cost cutting measures and is taking other
appropriate steps to manage the Company's cash balances.

     The Company cannot guarantee that the results from operations will be
sufficient to support the Company's liquidity requirements through March 31,
2003 and beyond. There can be no assurance that the Company's strategies will be
accomplished or whether they will be adequate to allow the Company to meet its
cash needs.

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

CAUTIONARY NOTE

     From time to time in this quarterly report on Form 10-Q, we may make
statements that reflect our current expectations regarding our future results of
operations, economic performance, and financial condition, as well as other
matters that may affect our business.

     While these statements reflect our current plans and expectations, and we
base the statements on information currently available to us, we cannot be sure
that we will be able to realize our expectations in whole or in part, in the
future.

     Any of these statements we make in this quarterly report on Form 10-Q that
are forward-looking are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. We wish to caution you that
our actual results may differ significantly from the results we discuss in the
forward-looking statements.

     We discuss factors that could cause or contribute to such differences under
the caption "Risk Factors and Certain Forward-Looking Information" in our annual
report on Form 10-K for the year ended June 30, 2001. In addition, any
forward-looking statements we make in this document are as of the date of this
document, and we do not intend to update any such forward-looking statements to
reflect events or circumstances that occur after that date.

Results of Operations

Revenues

     Revenues consisted of the following (In thousands):

                                    Three Months Ended   Nine Months Ended
                                         March 31,           March 31,

                                      2002      2001      2002      2001
                                      ----      ----      ----      ----

Phase I Services                     $  633    $  391    $1,652    $4,148
Bioanalytical Laboratory Services       555       377       909     1,120
Clinical Trial Mgt and Monitoring       661       461     3,044     1,073
Licensing                                11         4        34        31
Consulting Services                      61       190       190       387
                                     ------    ------    ------    ------
       Total                         $1,921    $1,423    $5,829    $6,759
                                     ======    ======    ======    ======


                                       7
<PAGE>


     Total revenues increased to $1.9 million for the three-month period ended
March 31, 2002 compared to $1.4 million for the same period last year. The
increase is due to a greater demand for Phase I clinical trials and
bioequivalence studies during the third quarter, an increase in bioanalytical
service contracts and the conclusion of certain clinical trial management
studies.

     Total revenues decreased to $5.8 million for the nine-month period ended
March 31, 2002 compared to $6.8 million for the same period last year. The
decrease is due to a decline in demand for Phase I services, principally Phase I
clinical trials during the first half of the fiscal year 2002, offset by
clinical trial management and monitoring revenue.

     The Company continues to strategically focus its sales and marketing
efforts on maintaining the core Phase I services, while expanding other key
revenue sources, primarily in the areas of clinical trials management and
monitoring and bioanalytical laboratory services.

Cost of Contracts

     Cost of contracts increased to $1.6 million for the three-month period
ended March 31, 2002 compared to $1.3 million for the same period last year. As
a percentage of revenue, costs of contracts decreased to 81% for the three-month
period ended March 31, 2002 compared to 91% for the same period last year. The
decrease as a percentage of revenue is due primarily to the mix in service
contracts.

     Cost of contracts decreased to $5.2 million for the nine-month period ended
March 31, 2002 compared to $5.4 million for the same period last year. As a
percentage of revenue, cost of contracts increased to 90% for the nine-month
period compared to 80% for the same period last year. Certain costs are variable
in nature and vary according to the type of study, the number of participants,
samples processed, method development and validation, technical and material
requirements and duration of the study.

Selling, General and Administrative

     Selling, general and administrative ("SG&A") expenses were $0.4 million and
$1.3 million compared to $0.4 million and $1.4 million for the three-month and
the nine-month periods ended March 31, 2002 and 2001, respectively. The decrease
was primarily due to a reduction in certain SG&A expenses such as consulting,
utilities, service contracts and routine operating expenses.

Research and Development

     Research and development ("R&D") expenses decreased to $7,000 and $80,000
for the three-month and nine-month periods ended March 31, 2002 compared to the
same periods last year. R&D expenses will fluctuate from time to time as the
Company re-allocates existing scientific personnel whenever practical to focus
on developing methods for utilization in current and future studies related
primarily to its LC/MS/MS instrumentation.

Income Taxes

     No benefit for income taxes was recorded for the three-month and nine-month
periods ended March 31, 2002 and 2001, due to the uncertainty of utilizing such
benefits.

Other Income and Expenses

     Other income and expenses consists primarily of interest income earned on
overnight investments, interest earned on a note receivable and interest expense
related to capital lease obligations. Interest income was $1,000 and $13,000
compared to $16,000 and $36,000 for the three-month and nine-month periods ended
March 31, 2002 and 2001, respectively. The decrease in interest income is
primarily related to a reduction in the average invested cash balance. Interest
expense decreased to $1,000 and $3,000 for the three-month and nine-month
periods ended March 31, 2002 compared to the same periods last year. The
decrease in interest expense is primarily due to the expiration of a capital
lease in fiscal year 2001. During the quarter, the Company recognized $35,000 as
a gain on the sale of certain laboratory equipment no longer used in operations.


                                       8
<PAGE>

Liquidity and Capital Resources

     The Company had cash and cash equivalents of $96,000 at March 31, 2002. The
Company's primary source of funds is cash flow from operations although,
beginning in the quarter ended March 31, 2002, the Company from time to time has
borrowed funds from a director to cover short-term operating requirements.
During the nine months ended March 31, 2002, cash and cash equivalents decreased
by $318,000, primarily due to the acquisition of key laboratory equipment in the
amount of $265,000. When possible, the Company seeks to finance the acquisition
of capital assets through leasing arrangements. There were no such arrangements
in place at March 31, 2002.

     The operating environment confronting the Company raises significant
uncertainty about the Company's ability to continue as a going concern. The
Company's near term and long-term operating strategies focus on its sales and
marketing efforts to gain new as well as previous customers. In addition, the
Company has and is pursuing cost cutting measures and is taking other
appropriate steps to manage the Company's cash balances.

    The Company cannot guarantee that the results from operations will be
sufficient to support the Company's liquidity requirements through March 31,
2003 and beyond. There can be no assurance that the Company's strategies will be
accomplished or whether they will be adequate to allow the Company to meet its
cash needs.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

Interest Rate Risks

     The exposure to market risk for changes in interest rates relates primarily
to the Company's short-term investments, which generally have maturities of
three months or less. The Company does not use derivative financial instruments
for speculative or trading purposes. The Company invests its excess cash in
short-term fixed income financial instruments with an investment strategy to buy
and hold to maturity.

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 1. Legal Proceedings:  None

Item 2. Changes In Securities:  None

Item 3. Defaults Upon Senior Securities: None

Item 4. Submission of Matters to a Vote of Security Holders: None

Item 5. Other Information: None

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

     A. Exhibits:

          Exhibit 10(i): Severance Agreement, dated February 7, 2002, between
          the Company and Jeffrey A. Scheidt (filed herewith).

     B. Reports on Form 8-K: None


                                       9
<PAGE>

                                   SIGNATURES

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


                                      PHARMAKINETICS LABORATORIES, INC.

Date: May 15, 2002                    By: /s/ James M. Wilkinson, II, Ph.D.
      ------------                        --------------------------------------
                                          James M. Wilkinson, II,Ph.D.
                                          Chief Executive Officer
                                          and President


Date: May 15, 2002                        /s/ Jeffrey A. Scheidt
      ------------                        --------------------------------------
                                          Jeffrey A. Scheidt
                                          Vice President and
                                          Chief Financial Officer
                                          (Principal Financial Officer
                                          and Principal Accounting Officer)


                                       10