<PAGE>

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                                   FORM 10-Q

    (Mark one)
      [ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 2000
                                      OR

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

                        Commission file number 0-11580

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

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

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

                                (410) 385-4500
             (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes  X   No
                                                              ---     ---

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                 PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

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

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.  2,496,129
common shares were outstanding as of May 12, 2000.
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                                   FORM 10-Q

                                     INDEX


                                                              Page No.

PART 1.  FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated balance sheets at March 31,                 3
         2000 (unaudited) and June 30, 1999

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

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

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

         Notes to consolidated financial statements (unaudited)   7

Item 2.  Management's Discussion and Analysis of                  9
         Financial Condition and Results of Operations

Item 3.  Quantitative and Qualitative Disclosures                13
         About Market Risk


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                       13

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

Signatures                                                       15

                                      -2-
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                          CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                    March 31,          June 30,
                                                                      2000              1999
                                                                   ----------          --------
                                                                   (Unaudited)
<S>                                                               <C>                 <C>
ASSETS
Current Assets:
 Cash and equivalents                                              $    256,025      $  2,233,198
 Accounts receivable, net                                               798,386         1,518,030
 Contracts in process                                                   608,344           849,768
 Prepaid expenses                                                       293,729           241,469
                                                                   ------------      ------------
  Total Current Assets                                                1,956,484         4,842,465
Property, plant and equipment, net                                    4,181,965         4,324,543
Other assets                                                             92,930           117,946
                                                                   ------------      ------------
  Total Assets                                                     $  6,231,379      $  9,284,954
                                                                   ============      ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
 Accounts payable and accrued expenses                             $    758,481      $  1,073,455
 Deposits on contracts in process                                       675,263         1,481,554
                                                                   ------------      ------------
  Total Current Liabilities                                           1,433,744         2,555,009
Other liabilities                                                        84,752           142,702
                                                                   ------------      ------------
  Total Liabilities                                                   1,518,496         2,697,711
                                                                   ------------      ------------
Commitments and Contingencies
Stockholders' Equity:
 Preferred Stock, no par value; authorized
  1,500,000 shares
   Class A Convertible; issued and
    outstanding 833,300 shares                                        4,937,500         4,937,500
   Class B Convertible; issued and
    outstanding 250,000 shares                                          273,438                 -
 Common stock, $.005 par value; authorized,
  10,000,000 shares; issued and
  outstanding, 2,496,129 shares                                          12,481            12,481
 Additional paid-in capital                                          11,929,886        11,929,886
 Accumulated deficit                                                (12,440,422)      (10,292,624)
                                                                   ------------      ------------
  Total Stockholders' Equity                                          4,712,883         6,587,243
                                                                   ------------      ------------
  Total Liabilities and Stockholders' Equity                       $  6,231,379      $  9,284,954
                                                                   ============      ============
---------------------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.


                                      -3-
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                            Three Months Ended                Nine Months Ended
                                                                  March 31,                         March 31,
                                                            2000            1999               2000            1999
                                                       -----------      ----------        -----------      ----------
<S>                                                    <C>              <C>               <C>              <C>
Revenues                                               $   850,748      $2,479,604        $ 5,945,700      $7,670,723
Cost of contracts                                        1,318,791       1,654,986          6,134,591       6,283,986
                                                       -----------      ----------        -----------      ----------
  Gross profit (loss)                                     (468,043)        824,618           (188,891)      1,386,737

Selling, general and
 administrative expenses                                   547,352         564,272          2,006,611       1,784,762
Research and
 development expenses                                       47,484         114,974            136,385         377,704
                                                       -----------      ----------        -----------      ----------
Earnings (loss) from operations                         (1,062,879)        145,372         (2,331,887)       (775,729)

Interest expense                                             4,502           6,940             15,298          22,718
Interest income                                             10,753          28,103             45,229         106,640
Gain on sale of investments                                154,158               -            154,158               -
                                                       -----------      ----------        -----------      ----------
Earnings (loss) before                                    (902,470)        166,535         (2,147,798)       (691,807)
 income taxes

Income taxes                                                     -               -            -                     -
                                                       -----------      ----------        -----------      ----------
Net earnings (loss)                                    $  (902,470)     $  166,535        $(2,147,798)     $ (691,807)
                                                       ===========      ==========        ===========      ==========
Basic earnings (loss)
 per share                                             $     (0.36)     $     0.07        $     (0.86)     $    (0.28)
                                                       ===========      ==========        ===========      ==========
Basic weighted average
 shares outstanding                                      2,496,129       2,496,129          2,496,129       2,492,479
                                                       ===========      ==========        ===========      ==========
Diluted earnings (loss)
 per share                                             $     (0.36)     $     0.04        $     (0.86)     $    (0.28)
                                                       ===========      ==========        ===========      ==========
Diluted weighted average
 shares oustanding                                       2,496,129       4,162,729          2,496,129       2,492,479
                                                       ===========      ==========        ===========      ==========
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.

                                      -4-
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
            CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                      Three Months Ended           Nine Months Ended
                                           March 31,                    March 31,
                                      2000          1999          2000             1999
                                   ---------      --------     -----------      ----------
<S>                                <C>            <C>          <C>              <C>
Net earnings (loss)                $(902,470)     $166,535     $(2,147,798)     $ (691,807)
Other comprehensive income:
 Unrealized loss
  on investment                            -        (6,975)              -         (52,316)
                                   ---------      --------     -----------      ----------

Comprehensive income (loss)        $(902,470)     $159,560     $(2,147,798)     $ (744,123)
                                   =========      ========     ===========      ==========
---------------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.

                                      -5-
<PAGE>

                       PHARMAKINETICS LABORATORIES, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                              Nine Months Ended
                                                                   March 31,
                                                          --------------------------
                                                              2000           1999
                                                          -----------     ----------
<S>                                                       <C>             <C>
Cash flows from operating activities:
  Net loss                                                $(2,147,798)    $ (691,807)
  Adjustments to reconcile net loss to
  net cash used by operating activities:
    Depreciation and amortization                             487,887        439,654
    Issuance of preferred stock
      in settlement of lawsuit                                273,438              -
    Gain on sale of investments                              (154,158)             -
    Changes in operating assets and liabilities:
      Accounts receivable, net                                897,518        246,853
      Contracts in process                                    241,424        280,234
      Prepaid expenses and other assets                       (50,960)       (22,668)
      Accounts payable and accrued expenses                  (308,157)      (180,207)
      Deposits on contracts in process                       (806,291)      (426,414)
                                                          -----------     ----------
Net cash used by operating activities                      (1,567,097)      (354,355)
                                                          -----------     ----------
Cash flows from investing activities:
    Payment for purchases of property and equipment          (345,309)      (931,805)
                                                          -----------     ----------
Net cash used by investing activities                        (345,309)      (931,805)
                                                          -----------     ----------
Cash flows from financing activities:
    Payments for capital lease obligations                    (64,767)       (75,622)
    Proceeds from exercise of stock options                         -         63,000
                                                          -----------     ----------
Net cash used by financing activities                         (64,767)       (12,622)
                                                          -----------     ----------
Decrease in cash and equivalents                           (1,977,173)    (1,298,782)
Cash and equivalents, beginning of period                   2,233,198      3,358,506
                                                          -----------     ----------
Cash and equivalents, end of period                       $   256,025     $2,059,724
                                                          ===========     ==========
Supplemental Cash Flow Information:
Non-Cash Transactions:
  Cash Paid for Interest:                                 $    14,822     $   22,367
  Cash Paid for Income Taxes                              $         -     $    3,914
--------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.

                                      -6-
<PAGE>

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

BASIS OF PRESENTATION

   The consolidated balance sheet as of March 31, 2000, the
consolidated statements of operations for the three and nine months ended
March 31, 2000 and 1999, the consolidated statements of comprehensive
income (loss) for the three and nine months ended March 31, 2000 and 1999,
and the consolidated statements of cash flows for the nine months
ended March 31, 2000 and 1999, assume that the Company will continue as
a going concern and 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
March 31, 2000, and for all periods presented, have been made.  The
consolidated balance sheet at June 30, 1999 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 annual report
on Form 10-K for the year ended June 30, 1999.

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

WARNING LETTER

  At the end of July 1999, the Company received a warning letter from the United
States Food and Drug Administration ("FDA") regarding PharmaKinetics'
noncompliance with certain required protocols in bioequivalence studies,
which were conducted prior to fiscal 1999.  In the warning letter, the FDA
advises PharmaKinetics to take immediate corrective action and that the
failure to do so may result in regulatory action.  The Company has responded
to the FDA and has taken the corrective actions it believes necessary to
address the issues and concerns raised in the warning letter, the costs of
which are not material to the Company's results of operations.

ACCOUNTING ESTIMATES

  The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and

                                      -7-
<PAGE>

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.

STOCKHOLDERS' EQUITY

  On April 17, 2000, the Company entered into a settlement agreement with
Altana, Inc. pursuant to which Altana, Inc. received 250,000 shares of a newly
created Class B Convertible Preferred Stock and warrants to purchase 100,000
shares of the Company's Common Stock. The Preferred Stock is convertible at any
time into shares of the Company's Common Stock at a conversion ratio of one-to-
one. The conversion ratio is subject to adjustment under certain circumstances
to prevent dilution. There are no liquidation preferences. The warrants are
fully exercisable at $6.00 per share and expire on April 18, 2003. The issuance
of the Class B Convertible Preferred Stock has been reflected on the Company's
Consolidated Balance Sheet as of March 31, 2000.

EARNINGS (LOSS) PER SHARE

  Basic earnings (loss) per share ("EPS") is calculated by dividing net
earnings (loss) by the weighted average common shares outstanding
during the period.  Diluted EPS reflects the potential dilution to EPS
that could occur upon conversion or exercise of securities, options or
other such items, to common shares using the treasury stock method based
upon the weighted average fair value of the Company's common stock during
the period.  The Company's preferred stock, warrants to acquire common
stock, outstanding stock options granted under the Company's stock option
plans and other options granted outside of the Company's plans
are considered common stock equivalents for the purpose of the diluted
earnings (loss) per share data; however, they are excluded from the
calculations for the three and nine month periods ended March 31, 2000
and the nine month period ended March 31, 1999, because the effect of their
inclusion would be anti-dilutive.

  For the three month period ended March 31, 1999, the weighted average
shares used in computing basic earnings per share were 2,496,129 and the
dilutive common stock equivalents totaled 1,666,600, which related to
Class A Convertible Preferred Stock.  No stock options were included in
the calculation because all of the option exercise prices were above the
average of the market price of the Company's stock during the period.
For the three and nine month periods ended March 31, 2000, dilutive
common stock equivalents totaled 1,667,608, and 1,669,066, respectively,
of which 1,008 and 2,466, respectively, related to options outstanding.

                                      -8-
<PAGE>

For the nine month period ended March 31, 1999, dilutive common stock
equivalents totaled 1,697,739, of which 31,139 related to options
outstanding.

PART I.

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

CERTAIN FORWARD-LOOKING INFORMATION

  Certain statements in this Management's Discussion and Analysis and
elsewhere in this Form 10-Q are forward-looking statements based on current
expectations, and entail various risks and uncertainties that could cause
actual results to differ materially from those expressed in such
forward-looking statements.  Such risks and uncertainties include the
effect on the Company's ability to market its services and obtain new
business in light of the receipt of a warning letter from the United States
Food and Drug Administration (the "FDA"); dependence of the Company on
product development cycles of its clients; dependence of the Company on
certain customers; dependence of the Company on its key personnel and
their ability to continuously develop new methodology for clinical and
analytical applications; dependence of the Company on the availability of
volunteer study participants; and the Company's ability to raise sufficient
working capital to meet current operating needs during the downturn in
business associated with receipt of the FDA warning letter.  Other more
general factors that could cause or contribute to such differences include,
but are not limited to, general economic conditions, conditions affecting
the pharmaceutical industry, and consolidation resulting in increased
competition within the Company's market.  These risk factors are discussed
more specifically in the Company's Annual Report on Form 10-K for its
fiscal year ended June 30, 1999.

  A warning letter, which addressed the Company's failure to conduct
certain studies in compliance with the protocol in prior years, was
received from the FDA in July 1999.  As a result, a number of clients
elected to place projects with competing contract research organizations,
causing the recent downturn in the Company's business.

  The Company has responded to the warning letter in writing and representatives
of the Company have had a meeting with the FDA to discuss
the steps which it is taking to comply with all regulatory requirements.
The Company has also addressed this situation directly with its clients
and is undertaking an aggressive effort to regain their confidence. The
Company has instituted corrective actions, which resulted in an increase
in order placement during the quarter ended March 31, 2000. Although the
Company has taken these steps and has seen an improvement in
its order placements, it is unable to forecast with certainty the

                                      -9-
<PAGE>

magnitude of the impact on revenues, losses and cash balances. See "Liquidity
and Capital Resources". However, the Company anticipates that the effect of the
warning letter will be short term.

RESULTS OF OPERATIONS

  The Company's total revenue, which includes contract revenue and
license fees based upon clients' actual product sales, decreased 65.7% and
22.5%, to $850,748 and $5,945,700, for the three and nine month periods
ended March 31, 2000, from $2,479,604 and $7,670,723, respectively, for the
same periods in the prior year.  The decrease was the result of lower
contract revenue from a reduced number of contracts and significantly lower
license fee income.

  Contract revenues decreased 65.7% and 21.6% to $842,776 and $5,882,098,
for the three and nine month periods ended March 31, 2000, respectively,
compared to $2,458,489 and $7,502,371, in the same periods in 1999,
primarily as a result of a reduction in revenues of approximately $1,600,000
for Phase I and Clinical Trial Management studies for the three and nine
month periods ended March 31, 2000, as compared with the same period of the
prior year.  The Company believes that the decrease in revenues in the
quarter ended March 31, 2000 reflects the downturn in business resulting
from receipt of a warning letter in July 1999.

  License fee income decreased 62.3% and 62.2% to $7,972 and $63,602,
for the three and nine month periods ended March 31, 2000, compared to
$21,115 and $168,352, respectively, for the same periods in the prior year.
This decrease was the result of the expiration of one of the Company's
license fee agreements on June 30, 1999, and a decline in sales for the
product covered by the remaining license fee agreement.  The Company
believes it is unlikely that its clients will wish to utilize license fee
arrangements in the future as compensation for work performed.  As a
result of this trend, contract revenues, rather than licensing income,
will continue to be the primary source of revenues.

  The Company's gross profit decreased 156.8% and 113.6%, to ($468,043)
and ($188,891) for the three and nine month periods ended March 31, 2000,
respectively, compared to $824,618 and $1,386,737 for the same periods of
the prior year.  Gross profit as a percentage of revenues declined to (55.0%)
and (3.2%), for the three and nine month periods ended March 31, 2000, from
33.3% and 18.1%, respectively, for the comparable periods of the prior year.
The decrease in gross margin for the three and nine month periods ended
March 31, 2000, reflects the fact that, in the short term, the Company's
costs are relatively fixed.  The Company has continued to invest in personnel
and instrumentation on a selective basis, although staffing levels have
decreased in the quarter ended March 31, 2000 through normal attrition.

  Selling, general and administrative expenses of $547,352 for the three
month period ended March 31, 2000 decreased 3.0%, compared to $564,272 for

                                      -10-
<PAGE>

the same period in the prior year.  This decrease is primarily attributed
to a restructuring of the Company's business development department and the
corresponding loss of one of the Company's executives, offset by increased
spending for business development related efforts and a non-recurring item
related to the issuance of the Company's Class B Convertible Preferred Stock.
Selling, general and administrative expenses for the nine month period ended
March 31, 2000 increased 12.4% to $2,006,611, compared to $1,784,762 for
the same periods in the prior year. The increase is primarily attributable
to increases in spending for the Company's Year 2000 compliance effort and
other non-recurring items, offset by reductions in general corporate support
functions commensurate with reductions in the Company's revenue levels.
The Company continues to focus its business development efforts on
generating revenues from existing and potential clients.

  Research and development expenses decreased 58.7% and 63.9% to $47,484
and $136,385 for the three and nine month periods ended March 31, 2000,
respectively, from $114,974 and $377,704 for the comparable periods of the
prior year.  The decrease in research and development expenses for the nine
month period ended March 31, 2000, compared to the same period of the prior
year, is primarily attributable to the loss of certain of the Company's
research and development staff for which the Company continues to recruit
replacements.  In addition, during the quarter ended September 30, 1999
the Company re-deployed certain of its research and development personnel,
as well as instruments normally used to conduct research and development,
to activities necessary to meet project deadlines for clients.  Further,
because of the slowdown in current business, research and development
expenses increased in the quarters ended December 31, 1999 and
March 31, 2000, compared to the quarter ended September 30, 1999, due
to the redeployment of various personnel to the Company's research and
development efforts.

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

YEAR 2000

  As of December 31, 1999, the Company had completed its Year 2000
compliance program, replaced or remediated computer systems and related
software for continued operation in the Year 2000, and identified
alternative sources for its key vendors.  The activities encompassed all
major categories of systems used by the Company, including laboratory
instrumentation, clinical systems, building systems, and sales and finance
systems, among others.  In some instances the installation of new software
and hardware in the normal course of business was accelerated to also
afford a solution to Year 2000 issues.  The Company invested approximately
$432,000 in a new Laboratory Information Management System ("LIMS") and

                                      -11-
<PAGE>

ancillary data acquisition system, which was fully operational as of
December 31, 1999.  Other Year 2000 spending totaled approximately $66,000.

  The capital improvements and expenses required for the Year 2000
effort were included as part of the Company's annual budgets.  The
capital spending or period expense associated with the Year 2000 issues
did not have a material effect on the Company's financial position or
results of operations.  The Company expensed all costs related to its
Year 2000 compliance program unless the useful life of the technological
asset was extended or increased.

LIQUIDITY AND CAPITAL RESOURCES

  At March 31, 2000, the Company had available $256,025 in current
operating cash to meet the needs of its business, compared to $2,233,198
at June 30, 1999.  The $1,977,173 decrease in cash resulted principally
from the Company's net loss from operations in the nine month period ended
March 31, 2000. Additionally, $851,943 of the total reduction in cash was
incurred during the three month period ended March 31, 2000 and is
attributable to the loss of revenues resulting from the effect of the
warning letter. Changes in the Company's operating accounts and investment
in equipment for utilization in the Company's operations adversely affected
the Company's cash position.  During the nine months ended March 31, 2000,
the Company invested $345,309 for capital purchases all of which was paid
in cash.

  The Company's primary source of funds is cash flow from operations,
which decreased by $1,212,742 in the nine months ended March 31, 2000,
compared to the same period of the prior year.  The Company had available a
$500,000 line of credit from Allfirst Bank, which had not been drawn upon,
but which the Company voluntarily elected to terminate on September 3, 1999,
due to the fact that the Company was not in technical compliance with the
restrictive covenants at June 30, 1999.  To conserve cash, the Company has
initiated cost cutting measures and is taking other appropriate steps to
manage the Company's cash balances through the current business downturn.
However, no assurances can be given that the Company's current cash balances
will be sufficient to meet the Company's operating needs through the current
business downturn, nor can assurances be given that the Company will be able
to maintain a going concern should the downturn in the Company's business be
protracted.

  At March 31, 2000, the Company reported a decrease in its
contracts in process account which represents costs incurred for studies
for which revenues have not been recognized and which are currently
underway.  Deposits on contracts in process have also decreased indicating
a decrease in the number of contracted studies. Prepaid expenses have

                                      -12-
<PAGE>

increased at March 31, 2000, compared to June 30, 1999, due to the timing
of payments on certain expense items related to future periods. Changes in
these account balances affect the Company's operating cash flow.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

  In December 1999, the Company received a Summons in a Civil Action
entitled Altana, Inc. vs. PharmaKinetics Laboratories, Inc. (case number
CV-99 7917), as disclosed in the Company's Quarterly Report on Form 10-Q
for the quarter ended December 31, 1999. The complaint was filed in the
United States District Court for the Eastern District of New York and
alleges, among other things, that PharmaKinetics performed certain
clinical studies for Altana, Inc., which were deemed unsatisfactory by
Altana.  The complaint requests damages for five causes of action in an
amount exceeding $1 million each, plus legal fees, costs of the action,
punitive damages, and other relief deemed proper by the Court.  The
Company has entered into a settlement agreement with Altana, Inc.
as of April 17, 2000.  The settlement calls for Altana to receive 250,000
shares of a newly created Class B Convertible Preferred Stock and Warrants
to purchase 100,000 shares of the Company's Common Stock at $6.00 per share.
Altana can elect to exchange shares of the preferred stock for future
studies performed by PharmaKinetics.

ITEM 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:

              Exhibit 27: Financial Data Schedule

                                      -13-
<PAGE>

     (b) Reports on Form 8-K

  On February 4, 2000, the Company filed a report on Form 8-K regarding
the issuance of a press release on January 28, 2000, with respect to a change
in management of the Company.  In the press release, the Company announced
that Dr. James M. Wilkinson, II, Vice President of Analytical Laboratory
Services, succeeds Mr. James K. Leslie as the Company's President and Chief
Executive Officer.  In addition, Cynthia A. Schurick, Senior Director of
Client Services, has been appointed Vice President of Business Development.
Taryn L. Kunkel will continue to serve as Vice President of Finance and
Chief Financial Officer.

                                      -14-
<PAGE>

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



                                   PHARMAKINETICS LABORATORIES, INC.
                                   Registrant



May 15, 2000                       /s/ James M. Wilkinson, II, Ph.D.
------------                       ---------------------------------
Date                               James M. Wilkinson, II, Ph.D.
                                   President and
                                   Chief Executive Officer



May 15, 2000                       /s/ Taryn L. Kunkel
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Date                               Taryn L. Kunkel
                                   Vice President and
                                   Chief Financial Officer

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