FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



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

For the quarterly period ended June 30, 2000
                               -------------

                         Commission file number 0-16005

                           Unigene Laboratories, Inc.
             (Exact name of registrant as specified in its charter)

                Delaware                          22-2328609
     -------------------------------          -------------------
     (State or other jurisdiction of           (I.R.S. Employer
     incorporation or organization)           Identification No.)


      110 Little Falls Road, Fairfield, New Jersey        07004
     -------------------------------------------------------------
      (Address of principal executive offices)          (Zip Code)

Registrant's telephone number, including area code: (973) 882-0860
                                                    --------------

--------------------------------------------------------------------------------
(Former  name,  former  address and former  fiscal year,  if changed  since last
report.)

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 CORPORATE ISSUERS

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date:

Common Stock, $.01 Par Value--44,228,934 shares as of August 1, 2000

<PAGE>

                                      INDEX

                           UNIGENE LABORATORIES, INC.




PART I. FINANCIAL INFORMATION                                           PAGE
                                                                        ----

Item 1. Financial Statements (Unaudited)

Condensed balance sheets-
    June 30, 2000 and December 31, 1999                                  3

Condensed statements of operations-
    Three months and six months ended June 30, 2000 and 1999             4

Condensed statements of cash flows-
    Six months ended June 30, 2000 and 1999                              5

Notes to condensed financial statements-
    June 30, 2000                                                        6

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

Item 3. Quantitative and Qualitative Disclosures About
    Market Risk                                                          15

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                               16

Item 2.  Changes in Securities and Use of Proceeds                       16

Item 3.  Defaults Upon Senior Securities                                 16

Item 4.  Submission of Matters to a Vote of Security Holders             17

Item 6.  Exhibits and Reports on Form 8-K                                17

SIGNATURES                                                               19


<PAGE>


PART I.  FINANCIAL INFORMATION
Item 1.   Financial Statements

                           UNIGENE LABORATORIES, INC.
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                            June 30, 2000         December 31, 1999
                                                          -----------------       -----------------
ASSETS                                                       (Unaudited)
------
Current assets:
<S>                                                              <C>                   <C>
    Cash and cash equivalents                                    $  132,046            $   682,629
    Contract receivables                                             44,523              3,526,229
    Prepaid expenses                                                304,888                210,195
    Inventory                                                     1,542,826                867,566
                                                          -----------------       ----------------
                  Total current assets                            2,024,283              5,286,619

Property, plant and equipment - net of
    accumulated depreciation and
    amortization                                                  6,295,979              6,740,354
Patents and other intangibles, net                                1,297,834              1,264,268
Investment in joint venture                                         900,000                 --
Other assets                                                        412,529                486,612
                                                          -----------------       ----------------
                                                                $10,930,625            $13,777,853
                                                          =================       ================
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                             $2,020,054           $  1,258,334
    Accrued expenses                                              2,895,340              2,217,413
    Notes payable - stockholders                                  1,140,000              1,140,000
    Current portion - long-term notes payable -
      stockholders                                                1,373,006                960,606
    5% convertible debentures                                     2,400,000              2,400,000
    Current portion - capital lease obligations                      69,708                 69,708
                                                          -----------------       ----------------
                  Total current liabilities                       9,898,108              8,046,061

Notes payable - stockholders, excluding
  current portion                                                   496,994                909,394
Joint venture obligation, excluding current portion                 495,000                 --
Capital lease obligations, excluding
  current portion                                                    62,189                 93,415
Commitments and contingencies
Stockholders' equity (deficit):
    Common Stock - par  value  $.01 per  share,  authorized
       60,000,000  shares, issued 44,044,009 shares in 2000
       and 43,088,184 shares in 1999                                440,440                430,882
    Additional paid-in capital                                   69,118,976             67,207,604
    Deferred stock option compensation                             (615,374)                   --
    Accumulated deficit                                         (68,964,677)           (62,908,472)
    Less: Treasury stock, at cost, 7,290 shares                      (1,031)                (1,031)
                                                          -----------------       -----------------
                  Total stockholders' equity (deficit)              (21,666)             4,728,983
                                                          -----------------       -----------------
                                                                $10,930,625            $13,777,853
                                                          =================       =================
</TABLE>

See notes to condensed financial statements.


<PAGE>


                           UNIGENE LABORATORIES, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                              Three Months Ended               Six Months Ended
                                                   June 30                         June 30
                                                   -------                         -------
                                             2000           1999            2000             1999
                                        ----------------------------    ----------------------------
<S>                                     <C>             <C>             <C>             <C>
Licensing and other revenue             $        776    $     26,670    $  1,002,026    $  2,526,842
                                         ------------    ------------    ------------    ------------

Operating expenses:

    Research and development               2,931,806       2,236,316       4,930,474       4,609,959

    General and administrative             1,017,656         615,897       1,617,069       1,092,133
                                         ------------    ------------    ------------    ------------

                                           3,949,462       2,852,213       6,547,543       5,702,092
                                         ------------    ------------    ------------    ------------

Operating loss                            (3,948,686)     (2,825,543)     (5,545,517)     (3,175,250)
                                         ------------    ------------    ------------    ------------

Other income (expense):

   Interest income                            24,440           4,589          36,515          15,542

   Interest expense                         (292,671)       (156,656)       (547,203)       (381,657)
                                         ------------    ------------    ------------    ------------

                                            (268,231)       (152,067)       (510,688)       (366,115)
                                         ------------    ------------    ------------    ------------


Net loss                                $ (4,216,917)   $ (2,977,610)   $ (6,056,205)   $ (3,541,365)
                                         ============    ============    ============    ============

Net loss per share, basic and diluted   $       (.10)   $       (.07)   $       (.14)   $       (.09)
                                         ============    ============    ============    ============

Weighted average number of shares
 outstanding, basic and diluted           43,980,296      40,109,449      43,661,288      39,835,348
                                         ============    ============    ============    ============
</TABLE>

See notes to condensed financial statements.


<PAGE>



                           UNIGENE LABORATORIES, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           Six Months Ended
                                                                               June 30
                                                                --------------------------------------
                                                                     2000                    1999
                                                                --------------         ---------------

<S>                                                              <C>                      <C>
Net cash used for operating activities                            $ (1,417,619)            $(1,349,104)
                                                                --------------         ---------------
Investing activities:

    Purchase of equipment and furniture                              (168,646)                (62,625)
    (Increase) decrease in patents
      and other assets                                                 (1,510)                 12,450
    Construction of leasehold and  building improvements             (168,779)                 (4,010)
                                                                --------------         ---------------
                                                                     (338,935)                (54,185)
                                                                --------------         ---------------
Financing activities:

Issuance of stockholder notes                                             --                1,600,000
Exercise of stock options and warrants                              1,237,197                     --
Repayment of capital lease obligations                                (31,226)                (28,126)
                                                                --------------         ---------------
                                                                    1,205,971               1,571,874
                                                                --------------         ---------------

Net increase (decrease) in cash and cash equivalents                 (550,583)                168,585

Cash and cash equivalents at beginning of year                        682,629                 402,664
                                                                ---------------        ---------------
Cash and cash equivalents at end of period                       $    132,046             $   571,249
                                                                ===============        ===============

SUPPLEMENTAL CASH FLOW INFORMATION:

Non-cash investing and financing activities:

Investment in joint venture and related obligation              $   900,000                      --
                                                                ==============         ===============

Conversion of convertible debentures and
   accrued interest into Common Stock                                    --               $ 1,301,096
                                                                ==============         ===============

Cash paid for interest                                           $    16,991              $     9,041
                                                                ==============         ===============
</TABLE>
See notes to condensed financial statements.

<PAGE>

                           UNIGENE LABORATORIES, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  JUNE 30, 2000
                                   (Unaudited)

NOTE A - BASIS OF PRESENTATION

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information and with the  instructions to Form 10-Q and Article 10 of Regulation
S-X.  Accordingly,  they do not include  all of the  information  and  footnotes
required by generally  accepted  accounting  principles  for complete  financial
statements.  In the opinion of management,  all adjustments considered necessary
for a fair presentation have been included.  Operating results for the six-month
period ended June 30, 2000 are not  necessarily  indicative  of the results that
may be expected for the year ending December 31, 2000. For further  information,
please  refer  to the  Company's  financial  statements  and  footnotes  thereto
included in the Company's annual report on Form 10-K for the year ended December
31, 1999.

In December  1999, the  Securities  and Exchange  Commission  staff issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" ("SAB
101").  SAB 101  summarizes  certain of the staff's views in applying  generally
accepted accounting  principles to revenue  recognition in financial  statements
and specifically addresses revenue recognition in the biotechnology industry for
non-refundable technology access fees and other non-refundable fees. The Company
must adopt SAB 101, as amended,  in the fourth quarter of 2000 with an effective
date of January 1, 2000, and the recognition of a cumulative effect  adjustment,
if any,  calculated as of January 1, 2000. The Company is evaluating SAB 101 and
the  effect it may have on the  financial  statements  and its  current  revenue
recognition policy.

NOTE B - LIQUIDITY

The Company has incurred annual  operating  losses since its inception and, as a
result, at June 30, 2000 had an accumulated deficit of approximately $68,965,000
and a working capital  deficiency of approximately  $7,874,000.  The independent
auditors'  report covering the Company's 1999 financial  statements  includes an
explanatory  paragraph  that states the above  factors raise  substantial  doubt
about the  Company's  ability  to  continue  as a going  concern.  However,  the
financial  statements have been prepared on a going concern basis and as such do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

The Company's  operational cash requirements are approximately $10 to 11 million
per year to operate  its  research  and  peptide  manufacturing  facilities  and
develop its  products.  In addition to its  obligations  with  respect to the 5%
Debentures,  the Company has  principal and interest  obligations  over the next
several years under its outstanding notes payable to stockholders which consists
of $1,140,000 in demand notes and  $1,870,000 in term notes.  In June 2000,  the
Company became obligated to fund the joint venture investment  described in Note
E.

While the Company believes that the final execution of a licensing agreement for
its nasal Calcitonin product along with the Warner-Lambert licensing transaction
will satisfy the Company's liquidity requirements over the near-term, satisfying
the  Company's  long-term  liquidity  requirements  will require the  successful
commercialization  of the product licensed to Warner-Lambert  and/or one or more
of its other products to be licensed. In addition,  the commercialization of its
products  will  require the Company to incur  additional  capital  expenditures,
including  expenditures  to  expand  or  upgrade  the  Company's   manufacturing
operations  to  satisfy  all of its  Calcitonin  supply  obligations  under  the
Warner-Lambert  license agreement.  However,  neither the cost or timing of such
capital expenditures are determinable at this time.

<PAGE>

Due to  the  receipt  of $3  million  from  Warner-Lambert  in  April  2000,  in
satisfaction of outstanding receivables,  as well as receipt of $480,000 in July
2000 of additional  short-term loans from an officer of the Company, the Company
has  sufficient  financial  resources to sustain its  operations  at the current
level  part-way  through the third  quarter of 2000.  The Company  will  require
additional funds to ensure continued operations beyond that time. Payment of the
obligations  under the 5%  Debentures  may  require  additional  financing.  The
Company  expects to shortly sign a nasal  calcitonin  licensing  agreement which
should  provide  up-front and other payments in 2000 and also expects to achieve
additional milestones under the Warner-Lambert agreement during 2000, which will
result in further payments.  However, there can be no assurance as to when or if
the Company will sign the nasal license agreement or achieve such milestones.

In addition to the  Warner-Lambert  agreement,  management  is actively  seeking
other licensing and/or supply agreements with  pharmaceutical  companies for its
injectable and nasal Calcitonin products and for other  pharmaceutical  products
that can be manufactured and/or delivered using its patented technologies. These
agreements could provide  short-term funds to the Company in upfront payments as
well as  milestone  payments.  The  Company  also is  eligible to sell state tax
benefits,  which  may  yield an  additional  $2.5  million,  under a New  Jersey
Economic Development  Authority (the "NJEDA") program,  which allows certain New
Jersey taxpayers to sell their state tax benefits to third-parties. However, the
proceeds  will be  received  over the next few years and the size and  timing of
such proceeds are subject to the  continued  funding of the program by the State
of New  Jersey as well as  limitations  based on the level of  participation  by
other  companies.  Although the Company has $3,388,000 in confirmed tax benefits
available  for sale at a maximum 25%  discount,  the  Company  must apply to the
NJEDA each year to be eligible to receive approval for the sale of its benefits.
There can be no assurance that any of these  transactions  will be completed or,
if  completed,  that the terms and  timing of such  transactions  would  provide
sufficient  funds to sustain  operations at the current level. In the absence of
or the delay in achieving  the  Warner-Lambert  milestones  or in signing  other
agreements,  obtaining adequate funds from other sources,  which might include a
debt  or  equity  financing,   would  be  necessary  to  sustain  the  Company's
operations.  However,  there is no  assurance  as to the  terms  on  which  such
additional  funds would be  available or that in such  circumstances  sufficient
funds could be obtained.  In addition,  the  delisting of the  Company's  Common
Stock by the  Nasdaq  National  Market  also may have an  adverse  affect on the
Company's ability to raise equity-based capital.

NOTE C - NOTES PAYABLE - STOCKHOLDERS

During  February 2000 Jay Levy,  the chairman of the board and an officer of the
Company,  loaned the Company $300,000 evidenced by demand notes bearing interest
at the Merrill Lynch Margin Loan Rate plus .25%. The Company repaid this loan in
April 2000.  In July 2000,  Jay Levy loaned the Company an aggregate of $480,000
under the same terms.

NOTE D - CONVERTIBLE DEBENTURES

In June  1998,  the  Company  completed  a private  placement  of $4  million in
principal amount of 5% convertible  debentures (the "5% Debentures")  from which
it realized net proceeds of approximately $3.75 million.  The 5% Debentures were
convertible into shares of Common Stock and, in addition,  provided that (i) the
interest  on the 5%  Debentures,  at the option of the  Company,  was payable in
shares of Common  Stock and (ii) upon  conversion,  the holder was  entitled  to
receive  warrants to purchase a number of shares of Common  Stock equal to 4% of
the  number  of shares  issued  pursuant  to the  conversion  (the  "Warrants").
However,  the number of shares of Common  Stock that the Company is obligated to
issue, in the aggregate,  upon conversion,  when combined with the shares issued
in payment of  interest  and upon the  exercise of the  Warrants,  is limited to
3,852,500  shares (the "Share  Limit").  After this Share Limit is reached,  the
Company is obligated to redeem all 5%  Debentures  tendered for  conversion at a
redemption price equal to 120% of the principal  amount,  plus

<PAGE>

accrued  interest.  During  December  1999,  the  Company  was unable to convert
$200,000 of the 5% Debentures  tendered for conversion as such conversion  would
have exceeded the Share Limit. As a result,  the Company accrued the 20% premium
on the  outstanding  $2,000,000  principal  amount of the 5%  Debentures  in the
amount of $400,000 as of December  31,  1999.  As of June 30,  2000,  all of the
$2,000,000  in  principal  amount  of  5%  Debentures  have  been  tendered  for
conversion and therefore are classified as a current liability.

Through  June 30, 2000,  the Company has issued a total of  3,703,362  shares of
Common  Stock  upon  conversion  of $2  million  in  principal  amount of the 5%
Debentures or in payment of interest thereon,  and issued an additional  103,032
shares of Common Stock upon the cashless exercise of all of the 141,123 Warrants
issued upon conversion of the 5% Debentures.

On January 5, 2000, the Company failed to make the required semi-annual interest
payment on the outstanding 5% Debentures.  As a result, the interest rate on the
outstanding  5%  Debentures  has increased to 20% per year. As of June 30, 2000,
the  accrued  and unpaid  interest on the 5%  Debentures  totaled  approximately
$266,000.

In addition,  due to the delisting of the Common Stock from the Nasdaq  National
Market in October 1999, the Company became obligated under a separate  agreement
to pay the holder of the 5% Debentures an amount equal to 2% of the  outstanding
principal  amount of the debentures per month. The Company has not made any such
payments to date but has accrued the amounts as interest expense. As of June 30,
2000, the accrued and unpaid amount totaled approximately $377,000.

The holder of the 5% Debentures has commenced an arbitration proceeding in which
the holder  claims  that it is  entitled,  as of June 30,  2000,  to payments in
respect of the 5% Debentures in the amount of  approximately  $3.4 million.  The
parties have had settlement  discussions and the Company is attempting to seek a
mutually satisfactory  settlement.  The outcome of this proceeding is uncertain.

NOTE E - JOINT VENTURE

In June 2000,  the Company  entered into a joint  venture with the  Shijiazhuang
Pharmaceutical Group (SPG), a pharmaceutical company in the People's Republic of
China.  The joint venture will  manufacture and distribute  injectable and nasal
Calcitonin  products,  for the treatment of osteoporosis,  in China and possibly
other selected Asian markets.  The Company will own 45% of the joint venture and
therefore  will  receive 45% of the joint  venture  profits.  The  Company  will
account for its investment  under the equity  method.  In the first phase of the
collaboration, SPG will contribute its existing injectable calcitonin license to
the joint  venture,  which  will allow the joint  venture to sell the  Company's
product under this license later this year.  Following the successful  launch of
the product, the joint venture may establish a state-of-the-art facility to fill
injectable and nasal Calcitonin  products containing bulk Calcitonin produced at
the Company's  Boonton,  New Jersey plant and plans to manufacture the bulk drug
in China in a new facility to be constructed by the joint venture.

Under the terms of the joint  venture  agreement,  the Company is  obligated  to
contribute  up to  $405,000  in cash  during  the  next 12  months  and up to an
additional $495,000 in cash two years thereafter.  However, these amounts may be
reduced or offset by the Company's  share of joint venture  profits.  No amounts
have been invested as of June 30, 2000.

In  addition,   the  Company  is  obligated  to  pay  to  the  Qingdao   General
Pharmaceutical  Company an  aggregate  of  $350,000  in 14  monthly  installment
payments of $25,000 in order to terminate its former joint venture in China. The
obligation  of $350,000 was  recognized  as an expense in the second  quarter of
2000.

<PAGE>


NOTE F- INVENTORY

Inventories  are  stated at the lower of cost  (using  the  first-in,  first-out
method) or market and consist of the following:

                               June 30, 2000     December 31, 1999
                               -------------     -----------------

 Finished goods..........       $ 1,200,000        $   596,359
 Raw materials...........           342,826            271,207
                                -----------        -----------
      Total..............       $ 1,542,826        $   867,566
                                ===========        ===========

NOTE G - STOCK OPTION PLAN

At the Company's  June 6, 2000 Annual  Meeting,  the  stockholders  approved the
adoption  of a new  Stock  Option  Plan (the "New  Plan")  to  replace  the 1994
Employee Stock Option Plan (the "1994 Plan"). All employees (including directors
who are  employees),  as well as certain  consultants,  are  eligible for grants
under the New Plan.  Each option granted under the New Plan will have a ten-year
term and the exercise  price of each option will be equal to the market price of
the Common Stock on the date of the grant. A total of 4,000,000 shares of Common
Stock are reserved for issuance under the New Plan.

In November  1999,  the Board  granted  under the New Plan,  to employees of the
Company,  stock  options to purchase an  aggregate  of 482,000  shares (of which
14,650 shares were subsequently  cancelled) of Common Stock at an exercise price
of $0.63 per share,  the market  price on the date of grant.  Each of the grants
was made subject to stockholder approval of the New Plan and,  accordingly,  the
measurement   date  for  valuing  the  stock   options  in  order  to  determine
compensation   expense  under  Accounting   Principles  Board  Opinion  No.  25,
"Accounting  for  Stock  Issued to  Employees",  was June 6,  2000,  the date of
stockholder  approval.  The market  price of the  Common  Stock on this date was
$2.093  per  share.  Therefore,  an  aggregate  of  $683,733  will be charged to
compensation  expense  over the vesting  periods of the  options,  which vest in
approximately  50%  increments  on  November 5, 2000 and  November 5, 2001.  The
Company  recognized  $68,359 as  compensation  expense  in June 2000,  leaving a
balance of $615,374 as deferred stock option compensation.

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

RESULTS OF OPERATIONS

Revenue for the first half of 2000 decreased 60% to $1,002,000  from  $2,527,000
in the first  half of 1999.  In both years the  revenue  consists  primarily  of
revenue  from  Warner-Lambert   Company,   resulting  from  the  achievement  of
milestones  in the  development  of an  oral  Calcitonin  product  for  treating
osteoporosis.  Yearly revenue is affected by the timing of the completion of the
various milestones.  Revenue for the three month periods ended June 30, 2000 and
June 30, 1999 were minimal.

Research and  development,  the  Company's  largest  expense,  increased  31% to
$2,931,000  from  $2,236,000  for the three  months  ended  June 30,  2000,  and
increased 7% to  $4,930,000  from  $4,610,000  for the six months ended June 30,
2000,  as compared to the same periods in 1999.  The  increases  were  primarily
attributable to expenses  related to the Company's  ongoing  clinical trials for
its nasal Calcitonin product.

General and  administrative  expenses  increased 65% to $1,017,000 from $616,000
for the three months ended June 30, 2000,  and increased 48% to $1,617,000  from
$1,092,000  for the six months  ended June 30,  2000,  as  compared  to the same
periods in 1999.  The  increases for the three month and six month periods ended
June 30, 2000 were  primarily due to the  recognition  of a $350,000  expense in

<PAGE>

June 2000 to terminate  the Company's  former joint venture in China.  The three
month increase was also due to increased travel and personnel  costs,  partially
offset by reduced  professional  fees.  The six month  increase  was also due to
increased personnel costs and professional fees.

Interest  income  increased  $20,000 and  $21,000  for the three  months and six
months  ended June 30,  2000,  respectively,  as compared to the same periods in
1999, due to additional funds available for investment in 2000.

Interest expense  increased  $136,000 or 87% for the three months ended June 30,
2000 to  $293,000  from  $157,000  for the three  months  ended  June 30,  1999.
Interest  expense  increased  $166,000 or 43% for the six months  ended June 30,
2000 to $547,000 from $382,000 for the six months ended June 30, 1999.  Interest
expense for the three month and six month periods  ending June 30, 1999 includes
the amortization of the value of the beneficial  conversion  feature and related
warrants of the  Company's 5%  Convertible  Debentures in the amounts of $46,000
and $151,000, respectively.  Excluding the change in the amortization charged to
interest,  interest  expense  increased in the three month and six month periods
ended June 30, 2000, as compared to the  comparable  periods in 1999,  primarily
due to an  increase  in the annual  interest  rate on the 5%  Debentures  to 20%
resulting from the failure of the Company to make a semi-annual interest payment
on the 5% Debentures  that was due in January  2000. In addition,  since October
1999, the Company also has been accruing  additional interest expense monthly in
an amount equal to 2% of the outstanding  principal  amount of the 5% Debentures
as a result of the removal of the  Company's  Common  Stock from  trading on the
Nasdaq Stock Market.  The expenses incurred in connection with the 5% Debentures
were partially offset by a 50% decrease in the principal balance  outstanding as
a result of conversions to Common Stock.

Due to increased  operating  expenses and interest  expense,  net loss increased
$1,239,000   or  42%  for  the  three  months  ended  June  30,  2000  from  the
corresponding period in 1999.

Due to the $1.5 million decrease in milestone revenue from Warner-Lambert in the
first half of 2000, in addition to increases in operating  expenses and interest
expense,  net loss increased  $2,515,000 or 71% from the corresponding period in
1999.

As of  December  31,  1999,  the Company had  available  for federal  income tax
reporting purposes net operating loss carryforwards in the approximate amount of
$58,200,000,  expiring  from 2000 through  2019,  which are  available to reduce
future  earnings which would  otherwise be subject to federal income taxes.  For
the six months ended June 30, 2000, the Company accumulated additional losses of
approximately  $6,056,000.  In addition,  the Company has federal investment tax
credits  and  research  and  development  credits in the  amounts of $14,000 and
$2,300,000,  respectively,  which are  available  to reduce the amount of future
federal  income  taxes.  These  credits  expire from 2000  through  2019.  As of
December 31, 1999, the Company had New Jersey  operating loss  carryforwards  in
the approximate  amount of $26,500,000,  expiring from 2003 through 2006,  which
are available to reduce  future  earnings,  which would  otherwise be subject to
state  income  tax.   Approximately   $25,000,000   of  these  New  Jersey  loss
carryforwards  have been  approved for future sale  pursuant to a program of the
New Jersey Economic  Development  Authority (the "NJEDA").  However, the Company
must  apply to the  NJEDA  each  year and must  meet  various  requirements  for
continuing  eligibility  and the program must continue to be funded by the State
of New Jersey.

The Company follows Statement of Financial  Accounting Standards (SFAS) No. 109,
"Accounting  for Income  Taxes".  Given the Company's  past history of incurring
operating losses,  any deferred tax assets that are recognizable  under SFAS 109
have been fully reserved.  As of December 31, 1999,  under SFAS 109, the Company
had deferred  tax assets of  approximately  $26,000,000,  subject to a valuation
allowance of $26,000,000.  The deferred tax assets are primarily a result of the
Company's  net  operating  losses and tax credits  generated.  For the six-month
period  ended June 30, 2000,  the  Company's  deferred tax assets and  valuation
allowances each increased by approximately $2,600,000.

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

The Company  maintains  its peptide  production  facility on leased  premises in
Boonton,   New  Jersey.   The  facility  began  production  under  current  Good
Manufacturing  Practice ("cGMP") guidelines in 1996. The Company's current lease
expires in 2004. The Company has two consecutive  ten-year renewal options under
the lease,  as well as an option to purchase  the  facility.  During  2000,  the
Company   invested   approximately   $337,000  in  fixed  assets  and  leasehold
improvements.  The majority of these expenditures were to increase the Company's
analytical  testing  capabilities.  There currently are no material  commitments
outstanding for capital expenditures  relating to either the Boonton facility or
the Company's office and laboratory facility in Fairfield, New Jersey.

The Company,  at June 30, 2000,  had cash and cash  equivalents  of $132,000,  a
decrease of $551,000 from December 31, 1999.

The Company has incurred annual  operating  losses since its inception and, as a
result, at June 30, 2000 had an accumulated deficit of approximately $68,965,000
and a working capital  deficiency of approximately  $7,874,000.  The independent
auditors'  report covering the Company's 1999 financial  statements  includes an
explanatory  paragraph  stating that the above factors raise  substantial  doubt
about the  Company's  ability  to  continue  as a going  concern.  However,  the
financial  statements have been prepared on a going concern basis and as such do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.  In October 1999,  the  Company's  Common Stock was delisted by the
Nasdaq  Stock  Market.  The  delisting  of the Common  Stock may have an adverse
effect on the Company's ability to raise capital.

The  Company's  future  ability to  generate  cash from  operations  will depend
primarily  upon signing  research or  licensing  agreements,  achieving  defined
benchmarks in such agreements,  receiving  regulatory  approval for its licensed
products, and the commercial sale of these products.

In July 1997,  the Company  entered into an agreement  under which it granted to
the Parke-Davis  division of  Warner-Lambert  Company a worldwide license to use
the Company's oral Calcitonin technology. Through June 30, 2000, the Company had
received $3 million for an equity investment, $3 million for a licensing fee and
an aggregate of $15.5 million in milestone  revenue from  Warner-Lambert.  Under
the terms of the license agreement,  the Company is eligible to receive up to an
additional $33 million in milestone revenue during the course of the development
program.  Early-stage  milestones primarily relate to the product's  performance
characteristics,  while the  latter-stage  milestones  are primarily  related to
regulatory   activities   and   approvals.   If  the  product  is   successfully
commercialized, the Company also would receive revenue from royalties on product
sales by Warner-Lambert  and its affiliates and from the sale of raw material to
Warner-Lambert.  The  Company has  retained  the right to license the use of its
technologies for injectable and nasal  formulations of Calcitonin on a worldwide
basis.  The Company has licensed  distributors in the United Kingdom and Ireland
and in Israel for its  injectable  formulation  and in June 2000  entered into a
joint venture  agreement in China to  manufacture  and market its injectable and
nasal  formulations.  The Company is actively  seeking  other  licensing  and/or
supply  agreements  with  pharmaceutical  companies for its injectable and nasal
Calcitonin  products  and  for  other   pharmaceutical   products  that  can  be
manufactured and/or delivered using its patented technologies. However, there is
no assurance that any additional revenue-generating agreements will be signed.

In June 2000,  the Company  entered into a joint  venture with the  Shijiazhuang
Pharmaceutical Group (SPG), a pharmaceutical company in the People's Republic of
China.  The joint venture will  manufacture and distribute  injectable and nasal
Calcitonin  products,  for the treatment of osteoporosis,  in China and possibly
other selected Asian markets.  The Company will own 45% of the joint venture and
therefore  will  receive 45% of the joint  venture  profits.  The  Company  will
account for its investment

<PAGE>

under the  equity  method.  In the first  phase of the  collaboration,  SPG will
contribute  its existing  injectable  calcitonin  license to the joint  venture,
which will  allow the joint  venture to sell the  Company's  product  under this
license later this year.  Following the  successful  launch of the product,  the
joint venture may establish a  state-of-the-art  facility to fill injectable and
nasal Calcitonin  products  containing bulk Calcitonin produced at the Company's
Boonton,  New Jersey plant and plans to manufacture  the bulk drug in China in a
new facility to be constructed by the joint venture.

Under the terms of the joint  venture  agreement,  the Company is  obligated  to
contribute  up to  $405,000  in cash  during  the  next 12  months  and up to an
additional $495,000 in cash two years thereafter.  However, these amounts may be
reduced or offset by the Company's  share of joint venture  profits.  No amounts
have been invested as of June 30, 2000.

In  addition,   the  Company  is  obligated  to  pay  to  the  Qingdao   General
Pharmaceutical  Company an  aggregate  of  $350,000  in 14  monthly  installment
payments of $25,000 in order to terminate its former joint venture in China. The
obligation  of $350,000 was  recognized  as an expense in the second  quarter of
2000.

In June  1998,  the  Company  completed  a private  placement  of $4  million in
principal amount of 5% convertible  debentures (the "5% Debentures")  from which
it realized net proceeds of approximately $3.75 million.  The 5% Debentures were
convertible into shares of Common Stock and, in addition,  provided that (i) the
interest  on the 5%  Debentures,  at the option of the  Company,  was payable in
shares of Common  Stock and (ii) upon  conversion,  the holder was  entitled  to
receive  warrants to purchase a number of shares of Common  Stock equal to 4% of
the  number  of shares  issued  pursuant  to the  conversion  (the  "Warrants").
However,  the number of shares of Common  Stock that the Company is obligated to
issue, in the aggregate,  upon conversion,  when combined with the shares issued
in payment of  interest  and upon the  exercise of the  Warrants,  is limited to
3,852,500  shares (the "Share  Limit").  After this Share Limit is reached,  the
Company is obligated to redeem all 5%  Debentures  tendered for  conversion at a
redemption price equal to 120% of the principal  amount,  plus accrued interest.
During  December  1999,  the  Company  was unable to convert  $200,000 of the 5%
Debentures  tendered for conversion as such  conversion  would have exceeded the
Share Limit. As a result, the Company accrued the 20% premium on the outstanding
$2 million principal amount of the 5% Debentures in the amount of $400,000 as of
December  31,  1999.  As of June 30,  2000,  all of the $2 million in  principal
amount of 5%  Debentures  have been  tendered for  conversion  and therefore are
classified as a current liability in the amount of $2.4 million.

Through  June 30, 2000,  the Company has issued a total of  3,703,362  shares of
Common  Stock  upon  conversion  of $2  million  in  principal  amount of the 5%
Debentures or in payment of interest thereon,  and issued an additional  103,032
shares of Common Stock upon the cashless exercise of all of the 141,123 Warrants
issued upon conversion of the 5% Debentures.

On January 5, 2000, the Company failed to make the required semi-annual interest
payment on the outstanding 5% Debentures.  As a result, the interest rate on the
outstanding  5% Debentures has increased to 20% per year. As of August 14, 2000,
the  accrued  and unpaid  interest on the 5%  Debentures  totaled  approximately
$315,000.

In addition,  due to the delisting of the Common Stock from the Nasdaq  National
Market in October 1999, the Company became obligated under a separate  agreement
to pay the holder of the 5% Debentures an amount equal to 2% of the  outstanding
principal  amount of the debentures per month. The Company has not made any such
payments to date but has  accrued  the  amounts as an expense.  As of August 14,
2000,  the  accrued  and unpaid  amount of this  penalty  totaled  approximately
$437,000.

<PAGE>

The holder of the 5% Debentures has commenced an arbitration proceeding in which
the holder  claims  that it is  entitled,  as of June 30,  2000,  to payments in
respect of the 5% Debentures in the amount of  approximately  $3.4 million.  The
parties have had settlement  discussions and the Company is attempting to seek a
mutually satisfactory  settlement.  The outcome of this proceeding is uncertain.
(See Part II, Item 1 - Legal Proceedings).

From time to time,  Jay Levy,  the  chairman  of the board and an officer of the
Company, and Warren Levy and Ronald Levy, directors and officers of the Company,
have made  loans to the  Company.  During  February  2000,  Jay Levy  loaned the
Company  $300,000.  This loan was repaid in April 2000. As of June 30, 2000, the
outstanding  loans by these  individuals to the Company  consisted of: (i) joint
loans from the three individuals in the aggregate principal amount of $1,140,000
evidenced by demand notes bearing a floating  interest rate equal to the Merrill
Lynch Margin Loan Rate plus .25% (9.875% at June 30, 2000), which are classified
as  short-term  debt (the  "Demand  Notes")  and (ii) loans from Jay Levy in the
aggregate  principal  amount of  $1,870,000  evidenced  by term  notes  maturing
January  2002 and  bearing  interest  at the fixed rate of 6% per year (the "Jay
Levy  Notes")  and  which  are  secured  by a  security  interest  in all of the
Company's equipment and a mortgage on the Company's real property.  The terms of
the Jay Levy Notes require the Company to make installment payments of principal
and  interest  commencing  in  October  1999 and  ending in  January  2002 in an
aggregate amount of $72,426 per month. No installment payments have been made to
date. Jay Levy has agreed to temporarily  postpone current payments and has also
agreed that he will not, prior to January 1, 2001, declare all or any portion of
the principal or the accrued  interest on the notes  immediately due and payable
by reason of the failure of the Company to make, when due, any scheduled payment
of principal or interest on any of the notes.  In July 2000, Jay Levy loaned the
Company an aggregate of $480,000 under the same terms as the Demand Notes.

The Company's  operational cash requirements are approximately $10 to 11 million
per year to operate  its  research  and  peptide  manufacturing  facilities  and
develop its  products.  In addition to its  obligations  with  respect to the 5%
Debentures,  the Company has  principal and interest  obligations  over the next
several years under its outstanding notes payable to stockholders. In June 2000,
the Company became obligated to fund the Company's joint venture investment with
Shijiazhuang  Pharmaceutical  Group with  contributions of up to $405,000 in the
next 12 months and up to $495,000 two years thereafter.  However,  these amounts
may be reduced or offset by the Company's share of joint venture profits. At the
same time,  the Company is required  to pay in monthly  installments  a $350,000
termination payment to its former Chinese joint venture partner.

Due to  the  receipt  of $3  million  from  Warner-Lambert  in  April  2000,  in
satisfaction of outstanding receivables,  as well as receipt of $480,000 in July
2000 of additional  short-term loans from an officer of the Company, the Company
has  sufficient  financial  resources to sustain its  operations  at the current
level  part-way  through the third  quarter of 2000.  The Company  will  require
additional funds to ensure continued operations beyond that time. Payment of the
obligations  under the 5%  Debentures  may  require  additional  financing.  The
Company  expects to shortly sign a nasal  calcitonin  licensing  agreement which
should  provide  up-front and other payments in 2000 and also expects to achieve
additional milestones under the Warner-Lambert agreement during 2000, which will
result in further payments.  However, there can be no assurance as to when or if
the Company will sign the nasal license agreement or achieve such milestones.

The  proprietary  rights  licensed  to  Warner-Lambert  involve  only  the  oral
formulation of Calcitonin. The Company has retained the right to license the use
of its  technologies  for other  Calcitonin and peptide  products on a worldwide
basis.  The Company  currently is seeking to enter into licensing  and/or supply
agreements  with  other  pharmaceutical  companies  for  these  products.  These
agreements could provide  short-term funds to the Company in upfront payments as
well as  milestone  payments.  The  Company  also is  eligible to sell state tax
benefits,  which could yield an additional $2.5 million,  under a NJEDA program,
which  allows  certain New Jersey  taxpayers to sell their state tax benefits to
third  parties.  However,  the proceeds will be received over the next few years
and the size and timing of such proceeds are subject to the continued funding of
the program by the State of New Jersey as well as

<PAGE>

limitations based on the level of participation by other companies. Although the
Company has $3,388,000 in confirmed tax benefits available for sale at a maximum
25%  discount,  the  Company  must  apply to the  NJEDA  each year and must meet
various  requirements  for  continuing  eligibility.  However,  there  can be no
assurance  that any of these  transactions  will be completed  or, if completed,
that the terms and timing of such transactions would provide sufficient funds to
sustain operations at the current level.

In the absence of, or the delay in, achieving the  Warner-Lambert  milestones or
in signing other agreements,  obtaining adequate funds from other sources, which
might  include a debt or equity  financing,  would be  necessary  to sustain the
Company's  operations.  However,  there is no assurance as to the terms on which
such  additional  funds  would  be  available  or  that  in  such  circumstances
sufficient funds could be obtained.  Equity financing of the Company also may be
adversely  affected by the delisting of the Company's Common Stock by the Nasdaq
Stock Market.

While the Company believes that the final execution of a licensing agreement for
its nasal Calcitonin product along with the Warner-Lambert licensing transaction
will satisfy the Company's liquidity requirements over the near-term, satisfying
the  Company's  long-term  liquidity  requirements  will require the  successful
commercialization  of the product licensed to Warner-Lambert  and/or one or more
of its other products to be licensed. In addition,  the commercialization of its
Calcitonin  products  will  require  the  Company  to incur  additional  capital
expenditures,   including  expenditures  to  expand  or  upgrade  the  Company's
manufacturing  operations to satisfy all of its  Calcitonin  supply  obligations
under the Warner-Lambert license agreement.  However, neither the cost or timing
of such capital expenditures are determinable at this time.

OTHER
-----

The Company's  Common Stock has been delisted  from the Nasdaq  National  Market
System  effective  October 5, 1999 and is now trading on the OTC Bulletin Board.
In order to be relisted  on the Nasdaq  National  Market or the Nasdaq  SmallCap
Market, the Company must meet the initial listing requirements.

In June 1998,  the  Financial  Accounting  Standards  Board issued SFAS No. 133,
"Accounting For Derivative  Instruments and Hedging  Activities." This statement
establishes  accounting  and  reporting  standards for  derivative  instruments,
including certain derivative  instruments  embedded in other contracts,  and for
hedging  activities.  SFAS  No.  133,  as  amended,  will be  effective  for the
Company's fiscal year beginning January 1, 2001. The adoption of SFAS No. 133 is
not expected to have a material  effect on the Company's  financial  position or
results of operations.

In December  1999, the  Securities  and Exchange  Commission  staff issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" ("SAB
101").  SAB 101  summarizes  certain of the staff's views in applying  generally
accepted accounting  principles to revenue  recognition in financial  statements
and specifically addresses revenue recognition in the biotechnology industry for
non-refundable technology access fees and other non-refundable fees. The Company
must adopt SAB 101, as amended,  in the fourth quarter of 2000 with an effective
date of January 1, 2000, and the recognition of a cumulative effect  adjustment,
if any,  calculated as of January 1, 2000. The Company is evaluating SAB 101 and
the  effect it may have on the  financial  statements  and its  current  revenue
recognition policy.

Item 3.        Quantitative and Qualitative Disclosures About Market Risk

MARKET RISK

<PAGE>

In the normal  course of  business,  the Company is exposed to  fluctuations  in
interest  rates  due to the use of debt as a  component  of the  funding  of its
operations. The Company does not employ specific strategies,  such as the use of
derivative  instruments or hedging, to manage its interest rate exposure.  Since
December 31, 1999, the Company's interest rate exposure on the 5% Debentures has
been affected by the Company's  delisting  from the Nasdaq  National  Market and
failure to make the semi-annual interest payment in January 2000.

The information below summarizes the Company's market risks associated with debt
obligations as of June 30, 2000.   The table below presents principal cash flows
and related  interest  rates by year of maturity based on the terms of the debt.
Under the terms of the 5%  Debentures,  no  additional  shares  may be issued to
convert the remaining principal balance. Therefore, the information presented as
to these debentures is without consideration as to conversion features. Variable
interest rates disclosed represent the rates at June 30, 2000.

<TABLE>
<CAPTION>
                                                           Year of Maturity
                                Carrying                   ----------------
                                 Amount        2000       2001     2002   2003   2004
                                 ------        ----       ----     ----   ----   ----
<S>                             <C>          <C>         <C>      <C>     <C>    <C>
Notes payable - stockholders    1,140,000    1,140,000     --       --     --     --
Variable interest rate                         9.875%      --       --     --     --

Notes payable - stockholders    1,870,000      960,606   837,328  72,066   --     --
Fixed interest rate                               6%       6%      6%     --     --

5% convertible debentures       2,400,000    2,400,000     --       --     --     --
Fixed interest rate (1)                          20%

</TABLE>

(1)    As a result of the  Company's  failure to make the  semi-annual  interest
       payment  that  was due  January  5,  2000,  the  interest  rate on the 5%
       Debentures  increased  from 7% at  December  31,  1999  to 20%  beginning
       January 5, 2000.


<PAGE>

                SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain  statements in this Form 10-Q  constitute  "forward-looking  statements"
within the meaning of the Private Securities  Litigation Reform Act of 1995 (the
"Reform Act"). Such forward-looking  statements involve known and unknown risks,
uncertainties  and other factors that may cause the actual results,  performance
or activities of the Company,  or industry results,  to be materially  different
from any future results,  performance or activities expressed or implied by such
forward-looking  statements. Such factors include: general economic and business
conditions, the financial condition of the Company, including the Company's need
for and success in securing  additional  financing,  competition,  the Company's
dependence on other  companies to  commercialize,  manufacture and sell products
using the Company's technologies,  the uncertainty of results of preclinical and
clinical testing, the risk of product liability and liability for human clinical
trials,  the  Company's  dependence  on patents  and other  proprietary  rights,
dependence on key management  officials,  the  availability and cost of capital,
the  availability of qualified  personnel,  changes in, or the failure to comply
with,  governmental  regulations,  the failure to obtain regulatory approvals of
the  Company's  products and other factors  discussed in the  Company's  various
filings with the  Securities  and Exchange  Commission,  including the Company's
Annual Report or Form 10-K for the year ended December 31, 1999.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings
         -----------------

On July 11,  2000,  the holder of the 5%  Debentures,  the Tail Wind Fund,  Ltd.
("Tail  Wind"),  filed with the American  Arbitration  Association  a demand for
arbitration  against the Company  claiming  that the Company owes it, as of June
30, 2000,  approximately  $3.4 million by reason of the  Company's  default with
respect to the 5% Debenture financing.  The purchase agreement pursuant to which
the Company sold the 5% Debentures  requires  that all disputes  relating to the
debentures be submitted to binding arbitration. See "Management's Discussion and
Analysis of  Financial  Condition  and  Results of  Operations  - Liquidity  and
Capital  Resources."  On July 31,  2000,  the Company  submitted to the American
Arbitration  Association  a  statement  of defense  with  respect to Tail Wind's
arbitration demand. The outcome of the proceeding is uncertain.

Item 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------

                (a)  Not applicable.

                (b)  Not applicable.

                (c)  Recent Sales of Unregistered Securities.


In the second  quarter of 2000, the Company issued 56,007 shares of Common Stock
upon the  cashless  exercise of a total of 116,666  warrants at exercise  prices
ranging  from $1.38 to $1.44 per share.  All of such  shares  were issued by the
Company without  registration in reliance on an exemption under Section 4 (2) of
the Securities Act.

                (d)  Not applicable.

Item 3.  Defaults Upon Senior Securities
         -------------------------------

See  discussion of 5%  Convertible  Debentures in Part I, Item 2:  "Management's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations -
Liquidity and Capital Resources".

<PAGE>

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

         (a) The matters  described  under item 4(c) below were  submitted  to a
         vote of security holders at the Annual Meeting of Stockholders  held on
         June 6, 2000 (the "Annual  Meeting") in  connection  with which proxies
         were solicited pursuant to Regulation 14A under the Securities Exchange
         Act.

         (b) Not applicable

         (c) The  following  describes  the  matters  voted  upon at the  Annual
         Meeting  and sets  forth the  number of votes  cast for and  against or
         withheld  and,  as  applicable,  the number of  abstentions  and broker
         non-votes as to each such matter:

                  (i)      Election of directors:

         Nominee                  For             Withheld
         -------                  ---             --------
         Jay Levy                 34,600,814      297,126
         Ronald S. Levy           34,633,814      264,126
         Warren P. Levy           34,636,614      261,326
         Robert F. Hendrickson    34,619,539      278,401
         Allen Bloom              34,640,914      257,026

                  (ii)     Proposal  to approve the  adoption  of the  Company's
                           2000 Stock Option Plan:

                                                    Broker
         For            Against       Abstain        Non-Vote
         ---            -------       -------        --------
         13,704,164     1,708,091     144,354        19,341,331


                  (iii)    Proposal  to ratify  the  appointment  of KPMG LLP as
                           independent auditors of the Company for 2000:

         For          Against       Abstain
         ---          -------       -------
         34,610,618   222,007       65,315

         (d) Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:

                  Exhibit 10.1 - Joint  Venture  Contract  between  Shijiazhuang
                  Pharmaceutical Group Company,  Ltd., and Unigene Laboratories,
                  Inc.,  dated June 15, 2000 (certain  confidential  information
                  omitted  and  filed  separately  with  the  Secretary  of  the
                  Commission).

                  Exhibit 10.2 - Articles of Association of Shijiazhuang-Unigene
                  Pharmaceutical   Corporation  Limited,  dated  June  15,  2000
                  (certain confidential information omitted and filed separately
                  with the Secretary of the Commission).

                  Exhibit 27 - Financial  Data  Schedule - period ended June 30,
                  2000.

         (b)  Reports on Form 8-K:

The Company did not file any reports on Form 8-K during the three  months  ended
June 30, 2000.

<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.


                                  UNIGENE LABORATORIES, INC.
                                  --------------------------
                                  (Registrant)


                                  /s/ Warren P. Levy
August 14, 2000                   -------------------------
                                  Warren P. Levy, President
                                  (Chief Executive Officer)


                                  /s/ Jay Levy
August 14, 2000                   ----------------------------
                                  Jay Levy, Treasurer
                                  (Chief Financial Officer and
                                  Chief Accounting Officer)