<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 September 30, 1996
                                 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 incorporation or organization)    (I.R.S. Employer 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 November 6, 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 months ended
         September 30, 1996 and 1995 (unaudited)                     3

         Balance Sheets at September 30, 1996 (unaudited) and 
         June 30, 1996                                               4

         Statements of Cash Flows for the three months ended
         September 30, 1996 and 1995 (unaudited)                     5

         Notes to Financial Statements (unaudited)                   6

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                         6


PART II. OTHER INFORMATION

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

         Signatures                                                  9





















                                   -2-

<PAGE>3
PART 1.  FINANCIAL INFORMATION
Item 1.  Financial Statements
<TABLE>
                   PHARMAKINETICS LABORATORIES, INC.
                       STATEMENTS OF OPERATIONS
                             (unaudited)

                                               Three Months Ended
                                                  September 30,
                                        --------------------------------
<CAPTION>
                                            1996                1995
                                        ------------        ------------
<S>                                     <C>                 <C>
Revenues                                $  2,329,426        $  2,721,560  

Cost of contracts                          1,610,104           1,912,639
                                        ------------        ------------

   Gross Profit                              719,322             808,921

General and administrative expenses          533,059             571,402
Research and development expenses            103,747              96,385
                                        ------------        ------------

   Earnings from operations                   82,516             141,134

Interest expense                             (52,508)            (60,160)
Interest income                               10,737               9,454
Loss on disposal of equipment                      -             (12,548)
                                        ------------        ------------
Earnings before income taxes                  40,745              77,880

Provision for income taxes                         -                   -
                                        ------------        ------------
Net earnings                            $     40,745        $     77,880
                                        ============        ============

Net earnings per share                  $       0.00        $       0.01
                                        ============        ============

Weighted average shares outstanding       12,450,838          12,357,654
                                        ============        ============


---------------------------------------------------------------------------
                    See notes to financial statements.




</TABLE>


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<TABLE> 
                   PHARMAKINETICS LABORATORIES, INC.
                             BALANCE SHEETS
<CAPTION>
                                                 September 30,   June 30,
                                                     1996          1996
                                                 -----------  -----------
                                                  (unaudited)
<S>                                              <C>          <C> 
ASSETS
Current Assets:                    
   Cash and equivalents                           $   592,863 $   955,526
   Restricted cash and equivalents                          -      34,875
   Accounts receivable                              1,089,802   1,248,293
   Contracts in process                               532,815     336,930
   Prepaid expenses                                   203,378     126,203
                                                  ----------- -----------
     Total Current Assets                           2,418,858   2,701,827
Property, plant and equipment, net                  3,864,553   3,862,710
Other assets                                           58,422      58,422
                                                  ----------- -----------
     Total Assets                                 $ 6,341,833 $ 6,622,959
                                                  =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
   Accounts payable and accrued expenses          $   951,688 $ 1,213,403
   Deposits on contracts in process                   928,368     933,310
   Current portion of long-term debt                  146,683     143,616
                                                  ----------- -----------
      Total Current Liabilities                     2,026,739   2,290,329
Other liabilities                                      55,044      76,459
Long-term debt                                      1,671,551   1,708,417
                                                  ----------- -----------
      Total Liabilities                             3,753,334   4,075,205
                                                  ----------- -----------
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
     and outstanding 12,195,891 shares                 12,196      12,196
   Additional paid-in-capital                      12,013,701  12,013,701
   Accumulated deficit                             (9,437,398) (9,478,143)
                                                  ----------- -----------
       Total Stockholders' Equity                   2,588,499   2,547,754
                                                  ----------- -----------
       Total Liabilities and Stockholders' Equity $ 6,341,833 $ 6,622,959
                                                  ----------- -----------
---------------------------------------------------------------------------
                  See notes to financial statements.
                                 
</TABLE>

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<TABLE>            
                   PHARMAKINETICS LABORATORIES, INC.
                      STATEMENTS OF CASH FLOWS
                           (Unaudited)
<CAPTION>
                                                     Three Months Ended
                                                        September 30,
                                                  ------------------------
                                                     1996          1995
                                                  ----------    ----------
<S>                                               <C>           <C>
Cash flows from operating activities:
 Net Earnings                                     $   40,745    $   77,880

 Adjustments to reconcile net earnings to 
  net cash used by operating activities:
  Depreciation and amortization                      111,038        95,424
  Loss on sale of equipment                                -        12,548
  Changes in operating assets and liabilities:
    Accounts receivable                              158,491      (101,928)
    Contracts in process                            (195,885)      354,258
    Prepaid expenses and other assets                (77,175)      (90,157)
    Accounts payable and accrued expenses           (146,993)     (521,783)
    Deposits on contracts in process                  (4,942)       32,088
    Other liabilities                                (21,415)      (15,423)
                                                  ----------    ----------
Net cash used by operating activities               (136,136)     (157,093)
                                                  ----------    ----------
Cash flows from investing activities:
  Payment for purchase of property and equipment    (112,881)      (42,314)
  Proceeds from sale of equipment                          -         8,500
                                                  ----------    ----------
Net cash used by investing activities               (112,881)      (33,814)
                                                  ----------    ----------
Cash flows from financing activities:
  Payments on long-term debt                         (33,799)      (26,026)
  Payments on capital lease obligations             (114,722)      (35,356)
                                                  ----------    ----------
Net cash used by financing activities               (148,521)      (61,382)
                                                  ----------    ----------
Decrease in cash and equivalents                    (397,538)     (252,289)
Cash and equivalents, beginning of period            990,401     1,083,818
                                                  ----------    ----------
Cash and equivalents, end of period               $  592,863    $  831,529
                                                  ==========    ==========
Supplemental Cash Flow Information:
Cash Paid for Interest                            $   47,949    $   58,645
Cash Paid for Income Taxes                        $    4,500    $        -

--------------------------------------------------------------------------
                    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 months ended September 30,
1996 and 1995, the balance sheet as of September 30, 1996, and the
statements of cash flows for the three months ended September 30, 1996 and
1995, 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 September 30, 1996, and
for all periods presented, have been made.  The balance sheet at June 30,
1996 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 financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's fiscal 1996 Form
10-K.

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


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.


PART I.

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

RESULTS OF OPERATIONS

     The Company's revenues decreased 14.4% to $2,329,426 for the three
month period ended September 30, 1996, from $2,721,560 for the same period
in the prior year.  Included in the Company's revenue is license fee income


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<PAGE>7
of $117,260 and $127,766, for the periods ended September 30, 1996 and
1995, respectively.  License fee income, based on clients' sales of
approved drugs, will continue through the expiration of the two current
license fee agreements, the first of which will expire during fiscal 1998
and the second of which will expire in fiscal 2000.  In addition, the
Company has a license fee agreement with another of its clients which
recently received approval from the FDA to manufacture and market
Sucralfate Tablets.  The client expects to commence shipments on or about
November 11, 1996.  Once marketing is begun, the Company expects to receive
payments for a minimum of eight years from the date of approval to market
the product.

     The decrease in the Company's revenues for the current period is the
result of the combination of early completion of several contracts, which
were included in the results for the quarter ended June 30, 1996, a reduced
order rate resulting from delays in drug availability from several of the
Company's generic drug clients, and a general slowdown in the generic drug
sector.  The Company has successfully diversified its marketing efforts and
has been able to initiate studies for clients outside of the generic
sector.  This diversification has enabled the Company to maintain its
backlog at a consistent level and will facilitate the generation of future
revenues.  

     The Company's gross profit decreased 11.1% for the three month period
ended September 30, 1996 to $719,322, compared to the same period of the
prior year. Gross profit as a percentage of revenue increased to 30.9% for
the three month period ended September 30, 1996, compared to 29.7% for the
same period of the prior year.  The increase in gross margin is
attributable to the completion of more profitable studies during the
quarter ended September 30, 1996 offsetting a decrease in license fee
income of 8.2%.

     General and administrative expenses decreased 6.7% to $533,059, for
the three month period ended September 30, 1996, from $571,402 for the same
period in the prior year.  During the quarter ended September 30, 1995
several management level personnel changes were made.  Some of the
positions vacated are not expected to be filled, therefore accounting for
the variance in the current period expenses as compared to the prior year.  

     Research and development expenses increased 7.6% in the three month
period ended September 30, 1996 compared to the same period in the prior
year. The Company has acquired a LC/MS/MS instrument for its laboratory
and has incrementally invested in research and development to bring the
instrument on-line and to develop methods for utilization in future
studies.

     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 $397,538 for the


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<PAGE>8
three month period ended September 30, 1996, is primarily attributable to
payments for property and equipment, capital lease obligations and long-
term debt.  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.  At
September 30, 1996 the Company had available $592,863 in current operating
cash to meet the needs of its business.  The Company also has available a
$500,000 line of credit through its primary secured lender, which was
unused as of September 30, 1996.  The existing line of credit expires on
November 30, 1996.  The Company is in the process of renewing the existing
line with its primary lender.  


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
              September 30, 1996.




























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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



November 13, 1996                        /s/James K. Leslie
-----------------                        ------------------
Date                                     James K. Leslie
                                         Chief Executive Officer
                                         and President


November 13, 1996                        /s/Taryn L. Kunkel
-----------------                        ------------------
Date                                     Taryn L. Kunkel
                                         Vice-President and 
                                         Chief Financial Officer


























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