<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                 For the Quarter Period Ended December 31, 2001


                         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 February 13, 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                                          10

          Item 6. Exhibits and Reports on Form 8-K                           10

          Signatures                                                         11


                                       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 six-month periods ended December 31, 2001. Interim results are
not necessarily indicative of results for the full fiscal year.

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

                                             December 31, 2001    June 30, 2001
                                                (unaudited)
                                                -----------       -------------

                   ASSETS
                   ------
Current assets:
  Cash and cash equivalents                    $         185      $         414
  Accounts receivable, net                               520              1,443
  Contracts in process                                    80                130
  Prepaid expenses                                       213                204
                                                ------------      -------------
     Total current assets                                998              2,191
Property, plant and equipment, net                     3,444              3,445
Other assets                                               -                 66
                                                ------------      -------------
                                               $       4,442      $       5,702
                                                ============      =============

  LIABILITIES AND STOCKHOLDERS' EQUITY
  ------------------------------------
Current liabilities:
  Accounts payable                             $         604      $         510
  Accrued expenses                                       757                246
  Deposits on contracts in process                       385              1,557
                                                ------------      -------------
     Total current liabilities                         1,746              2,313
                                                ============      =============

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

   Class B, no par value; issued and
    outstanding, 250,000 shares at
    Dec. 31, 2001 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
    Dec. 31, 2001 and June 30, 2001,
    respectively.                                         12                 12

 Additional paid-in capital                           11,930             11,930
 Accumulated deficit                                 (14,457)           (13,764)
                                                ------------      -------------
     Total stockholders' equity                        2,696              3,389
                                                ------------      -------------
                                               $       4,442      $       5,702
                                                ============      =============

         See accompanying notes to consolidated financial statements.


                                       2
<PAGE>

 <TABLE>
<CAPTION>

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


                                                                  Three Months Ended    Six Months Ended
                                                                      December 31,         December 31,
                                                                  ------------------    ------------------
                                                                   2001        2000      2001      2000
                                                                  -------    -------    -------    -------
<S>                                                               <C>        <C>        <C>        <C>
Revenues                                                          $ 1,726    $ 2,694    $ 3,908    $ 5,336
Cost and expenses:
  Cost of contracts                                                 1,385      2,127      3,665      4,136
  Selling, general and administrative                                 429        447        873        971
  Research and development                                             29         41         73         75
                                                                  -------    -------    -------    -------
      Total costs and expenses                                      1,843      2,615      4,611      5,182
                                                                  -------    -------    -------    -------
(Loss) income from operations                                        (117)        79       (703)       154

Other income and (expenses):
  Interest income                                                       6         11         12         20
  Interest expense                                                     (1)        (4)        (2)        (8)
                                                                  -------    -------    -------    -------
                                                                        5          7         10         12
                                                                  -------    -------    -------    -------
Net (loss) income                                                 $  (112)   $    86    $  (693)   $   166
                                                                  =======    =======    =======    =======
(Loss) earnings per common share:
  Basic                                                           $ (0.04)   $  0.03    $ (0.28)   $  0.07
                                                                  =======    =======    =======    =======
  Diluted                                                         $ (0.04)   $  0.02    $ (0.28)   $  0.04
                                                                  =======    =======    =======    =======
Shares used in calculation of (loss) earnings per common share:
  Basic                                                             2,496      2,496      2,496      2,496
                                                                  =======    =======    =======    =======
  Diluted                                                           2,496      4,555      2,496      4,555
                                                                  =======    =======    =======    =======
</TABLE>


          See accompanying notes to consolidated financial statements.


                                      3
<PAGE>


                        PHARMAKINETICS LABORATORIES, INC.
      CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited)
                       Six Months Ended December 31, 2001
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                       Preferred Stock
                               Class A           Class B         Common Stock
                               --------          -------         ------------
                            Number            Number           Number           Additional           Other Accumulated   Total
                              of                of               of              Paid-in   Accumulated   Comprehensive Stockholders'
                            Shares   Amount   Shares   Amount  Shares    Amount  Capital    Deficit     Income (Loss)     Equity
                            ------   ------   ------   ------  ------    ------  -------    -------     -------------     ------
<S>                        <C>       <C>     <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)    $         -       $3,389
Comprehensive loss
   Net loss                                                                                    (693)                        (693)
   Other comprehensive
      loss                                                                                                                     -
                                                                                                                          ------
Total comprehensive loss                                                                                                  $ (693)
                                                                                                                          ------
                                                                                                                               -
                          ----------------------------------------------------------------------------------------------------------
Balance December 31, 2001  833,300   $4,938  250,000    $273 2,496,129   $12      $11,930    $(14,457)    $         -      $2,696
                          ----------------------------------------------------------------------------------------------------------
</TABLE>


See accompanying notes to consolidated financial statements.

                                       4
<PAGE>

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

                                                              Six Months Ended
                                                                December 31,
                                                              ----------------
                                                               2001      2000
                                                               ----      ----
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                    $(693)     $166
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
     Depreciation and amortization                              266       287
 Changes in operating assets and liabilities:
     Accounts receivable, net                                   923      (140)
     Contracts in process                                        50       676
     Prepaid expenses and non-current other assets               57        45
     Accounts payable and accrued expenses                      605      (584)
     Deposits on contracts in process                        (1,172)     (147)
                                                            -------     -----
        Net cash provided by (used in) operating activities      36       303
                                                            -------     -----

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                          (265)      (18)
                                                            -------     -----
       Net cash used in investing activities                   (265)      (18)
                                                            -------     -----

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on capital lease obligations                           -       (43)
                                                            -------     -----
       Net cash used in financing activities                      -       (43)
                                                            -------     -----
Net  (decrease) increase in cash and cash equivalents          (229)      242

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

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD              $   185     $ 588
                                                            =======     =====
Supplemental disclosures of cash flow information:
   Interest paid                                            $     2     $   8
                                                            =======     =====

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

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):


                                                 Three Months       Six Months
                                                    Ended             Ended
                                                 December 31,      December 31,
                                               ---------------   ---------------
                                                 2001    2000      2001    2000
                                                 ----    ----      ----    ----

Net (loss) income                              $ (112)  $   86   $ (693)  $  166
                                               ======   ======   ======   ======

Basic (loss) earnings per common share         $(0.04)  $ 0.03   $(0.28)  $ 0.07
                                               ======   ======   ======   ======

Diluted (loss) earnings per common share       $(0.04)  $ 0.02   $(0.28)  $ 0.04
                                               ======   ======   ======   ======

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

Effect of dilutive securities                      -     2,059        -    2,059
                                               ------   ------   ------   ------

Weighted-average shares used to compute
diluted (loss) earnings per common share        2,496    4,555    2,496    4,555
                                               ======   ======   ======   ======

                                        6

<PAGE>


3.  Financial Results and Liquidity

       The Company had cash and cash equivalents of $185,000 at December 31,
2001. The Company's primary source of funds is cash flow from operations, which
was $36,000. During the quarter, the Company purchased certain 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 December 31, 2001.

       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 December 31,
2002 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 implement these plans successfully. We may not 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    Six Months Ended
                                         December 31,           December 31,
                                         -----------            ------------
                                         2001    2000        2001     2000
                                         ----    ----        ----     ----
Phase I Services                       $  653   $2,024      $1,019   $3,757
Bioanalytical Laboratory Services         101      250         354      743
Clinical Trial Mgt and Monitoring         902      336       2,383      612
Licensing                                  21        4          23       27
Consulting Services                        49       80         129      197
                                       ------   ------      ------   ------
       Total                           $1,726   $2,694      $3,908   $5,336
                                       ======   ======      ======   ======

                                        7
<PAGE>


       Total revenues decreased to $1.7 million and $3.9 million for the
three-month and six-month periods ended December 31, 2001 compared to the same
periods last year. The decrease is primarily in the area of Phase I services -
bioequivalence studies and Phase I clinical trials. The demand for Phase I
services declined during the three-month and six-month periods ended December
31, 2001. Clinical trial management and monitoring increased to $0.9 million and
$2.4 million for the three-month and six-month periods ended December 31, 2001
compared to the same periods last year. 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 decreased to $1.4 million and $3.7 million for the
three-month and six-month periods ended December 31, 2001 compared to the same
periods last year. The decrease is primarily due to lower than expected Phase I
and bioanalytical service revenue offset by increased costs related to the near
term conclusion of certain clinical trials. Certain costs are variable in nature
and vary according to the size, technical requirements and duration of the
studies performed.

Selling, General and Administrative

       Selling, general and administrative ("SG&A") expenses decreased to $0.4
million and $0.9 million for the three-month and six-month periods ended
December 31, 2001 compared to the same periods last year. The decrease was
primarily due to a reduction in certain SG&A expenses such as utilities, service
contracts, routine operating expenses and a one-time charge of $63,000 to bad
debt expense in fiscal year 2001.

Research and Development

       Research and development ("R&D") expenses decreased to $29,000 and
$73,000 for the three-month and six-month periods ended December 31, 2001
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
six-month periods ended December 31, 2001 and 2000, 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 $6,000 and $12,000
compared to $11,000 and $20,000 for the three-month and six-month periods ended
December 31, 2001 and 2000, 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 $2,000 for the three-month and six-month periods
ended December 31, 2001 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.

Liquidity and Capital Resources

       The Company had cash and cash equivalents of $185,000 at December 31,
2001. The Company's primary source of funds is cash flow from operations, which
was $36,000. During the quarter, the Company purchased certain 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 December 31, 2001.

       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.

                                        8

<PAGE>

       The Company cannot guarantee that the results from operations will be
sufficient to support the Company's liquidity requirements through December 31,
2002 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:

The Annual Meeting of Stockholders of PharmaKinetics Laboratories, Inc., a
Maryland Corporation, was held November 27, 2001, 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 of Nominee                          Votes FOR     AGAINST
            ---------------                          ---------     -------
Thomas F. Kearns, Jr.                                3,533,499     62,988
James M. Wilkinson, II, Ph.D.                        3,533,450     63,037

Election by holders of Preferred Stock voting alone:

            Name of Nominee                          Votes FOR     AGAINST
            ---------------                          ---------     -------
Leslie B. Daniels                                    1,229,617        -
Jerome A. Halperin                                   1,229,617        -
Kamal K. Midha, C.M., Ph.D., D.Sc                    1,229,617        -


                                        9
<PAGE>

2. A proposal to ratify the selection of PricewaterhouseCoopers LLP, as the
   Company's independent auditors for the fiscal year ending June 30, 2002.


        Votes FOR              Votes AGAINST           Votes Abstained
        ---------              -------------           ---------------
        3,588,534                  3,613                    4,340



Item 5. Other Information:

         None

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

        A. Exhibits

             None

        B. Reports on Form 8-K

             None


                                       10
<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: February 14, 2002              By: /s/James M. Wilkinson, II, Ph.D.
      -----------------                  --------------------------------
                                         James M. Wilkinson, II,Ph.D.
                                         Chief Executive Officer
                                         and President


Date: February 14, 2002                  /s/Jeffrey A. Scheidt
      -----------------                  ---------------------------------------
                                         Jeffrey A. Scheidt
                                         Vice President and
                                         Chief Financial Officer
                                         (Principal Financial Officer
                                         and Principal Accounting Officer)


                                       11