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 September 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--44,409,429 shares as of November 1, 2000

<PAGE>



                                      INDEX


                           UNIGENE LABORATORIES, INC.




PART I.  FINANCIAL INFORMATION                                          PAGE
                                                                        ----

Item 1. Financial Statements (Unaudited)

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

Condensed statements of operations-
    Three months and nine months ended September 30, 2000 and 1999        4

Condensed statements of cash flows-
    Nine months ended September 30, 2000 and 1999                         5

Notes to condensed financial statements-
    September 30, 2000                                                    6

Item 2. Management's Discussion and Analysis of Financial
    Condition and Results of Operations                                   10

Item 3. Quantitative and Qualitative Disclosures About
    Market Risk                                                           16

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                17

Item 2.  Changes in Securities and Use of Proceeds                        17

Item 3.  Defaults Upon Senior Securities                                  18

Item 6.  Exhibits and Reports on Form 8-K                                 18

SIGNATURES                                                                19


                                       2

<PAGE>
PART I.  FINANCIAL INFORMATION
Item 1.   Financial Statements

                           UNIGENE LABORATORIES, INC.
                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                              September 30, 2000            December 31, 1999
                                                              ------------------            -----------------
                                                                 (Unaudited)
<S>                                                            <C>                              <C>
ASSETS
------
Current assets:
    Cash and cash equivalents                                  $     48,928                     $   682,629
    Contract receivables                                          1,312,782                       3,526,229
    Prepaid expenses                                                150,456                         210,195
    Inventory                                                     1,333,766                         867,566
                                                            ---------------                 ---------------
                  Total current assets                            2,845,932                       5,286,619

Property, plant and equipment - net of
    accumulated depreciation and
    amortization                                                  5,995,717                       6,740,354

Patents and other intangibles, net                                1,295,894                       1,264,268
Investment in joint venture                                         900,000                          --
Other assets                                                        414,514                         486,612
                                                          -----------------                ----------------
                                                                $11,452,057                     $13,777,853
                                                          =================                 =================
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                             $2,473,497                    $  1,258,334
    Accrued expenses                                              3,490,867                       2,217,413
    Notes payable - stockholders                                  2,498,323                       1,140,000
    Current portion - long-term notes payable -
      stockholders                                                1,583,881                         960,606
    5% convertible debentures                                     2,400,000                       2,400,000
    Current portion - capital lease obligations                      69,708                          69,708
                                                          -----------------                ----------------
                  Total current liabilities                      12,516,276                       8,046,061

Notes payable - stockholders, excluding
  current portion                                                   286,119                         909,394
Joint venture obligation, excluding current portion                 495,000                          --
Capital lease obligations, excluding
  current portion                                                    41,460                          93,415
Commitments and contingencies
Stockholders' equity (deficit):
    Common Stock - par  value  $.01 per  share,
       authorized  60,000,000  shares,
       issued 44,404,619 shares in 2000 and
       43,088,184 shares in 1999                                    444,046                           430,882
    Additional paid-in capital                                   69,699,693                        67,207,604
    Deferred stock option compensation                             (410,297)                          --
    Accumulated deficit                                         (71,619,209)                     (62,908,472)
    Less: Treasury stock, at cost, 7,290 shares                      (1,031)                          (1,031)
                                                          -----------------                 -----------------
                  Total stockholders' equity (deficit)           (1,886,798)                        4,728,983
                                                          -----------------                 -----------------
                                                                $11,452,057                       $13,777,853
                                                          =================                 =================
</TABLE>
See notes to condensed financial statements.

                                       3
<PAGE>


                           UNIGENE LABORATORIES, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                   Three Months Ended                    Nine Months Ended
                                                      September 30                         September 30
                                                      ------------                         ------------
                                                 2000              1999                2000             1999
                                            -------------------------------       -------------------------------
<S>                                         <C>                <C>                <C>                <C>
Licensing and other revenue                 $  1,359,164       $  7,000,733       $  2,361,190       $  9,527,575
                                            ------------       ------------       ------------       ------------
Operating expenses:

    Research and development                   2,905,285          2,651,584          7,835,759          7,261,543

    General and administrative                   800,717            561,811          2,417,786          1,653,944
                                            ------------       ------------       ------------       ------------

                                               3,706,002          3,213,395         10,253,545          8,915,487
                                            ------------       ------------       ------------       ------------

Operating income (loss)                       (2,346,838)         3,787,338         (7,892,355)           612,088
                                            ------------       ------------       ------------       ------------

Other income (expense):

   Interest income                                 4,650             13,308             41,165             28,850

   Interest expense                             (312,344)          (108,052)          (859,547)          (489,709)
                                            ------------       ------------       ------------       ------------

                                                (307,694)           (94,744)          (818,382)          (460,859)
                                            ------------       ------------       ------------       ------------


Net income (loss)                           $ (2,654,532)      $  3,692,594       $ (8,710,737)      $    151,229
                                            ============       ============       ============       ============

Net income (loss) per share,
basic and diluted                           $       (.06)      $        .09       $       (.20)      $       --
                                            ============       ============       ============       ============

Weighted average number of shares
 outstanding:  Basic                          44,279,250         41,169,120         43,868,779         40,284,824
                                            ============       ============       ============       ============

               Diluted                        44,279,250         43,159,961         43,868,779         40,284,824
                                            ============       ============       ============       ============
</TABLE>

See notes to condensed financial statements.

                                       4

<PAGE>

                           UNIGENE LABORATORIES, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                          Nine Months Ended
                                                                             September 30
                                                                      -------------------------
                                                                       2000               1999
                                                                      -------            ------
<S>                                                                  <C>               <C>
Net cash used for operating activities                               $(3,085,949)      $(1,553,470)
                                                                     -----------       -----------
Investing activities:

    Purchase of equipment and furniture                                 (245,259)          (75,263)
    Increase in patents
      and other assets                                                   (22,568)          (19,753)
    Construction of leasehold and  building improvements                (187,704)           (4,010)
                                                                     -----------       -----------
                                                                        (455,531)          (99,026)
                                                                     -----------       -----------
Financing activities:

Issuance of stockholder notes                                          1,358,323         1,970,000
Exercise of stock options and warrants                                 1,601,411              --
Repayment of capital lease obligations                                   (51,955)          (51,789)
                                                                     -----------       -----------
                                                                       2,907,779         1,918,211
                                                                     -----------       -----------

Net increase (decrease) in cash and cash equivalents                    (633,701)          265,715

Cash and cash equivalents at beginning of year                           682,629           402,664
                                                                     -----------       -----------
Cash and cash equivalents at end of period                           $    48,928       $   668,379
                                                                     ===========       ===========

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                                       --         $ 1,390,959
                                                                     ===========       ===========

Cash paid for interest                                               $    22,000       $    17,448
                                                                     ===========       ===========
</TABLE>

See notes to condensed financial statements

                                       5

<PAGE>


                           UNIGENE LABORATORIES, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                               SEPTEMBER 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 nine-month
period ended  September 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  September  30,  2000 had an  accumulated  deficit of  approximately
$71,619,000 and a working capital  deficiency of approximately  $9,670,000.  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   cash   requirements   to  operate  its  research  and  peptide
manufacturing  facilities and develop its products are  approximately  $10 to 11
million per year. In addition to its obligations with respect to its outstanding
5% convertible  debentures (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  $2,498,000  in demand  notes and
$1,870,000  in term  notes.  The  Company  is also  obligated  to fund the joint
venture investment described in Note E.

While the Company  believes  that the  execution of a license  agreement for its
nasal Calcitonin  product,  along with additional  milestone  payments under the
license  agreement with Pfizer (successor to  Warner-Lambert)  would 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 Pfizer and/or one or more of its other products.  In
addition,  the commercialization of its oral Calcitonin product will require the
Company to

                                       6

<PAGE>

incur  additional  capital  expenditures  to expand  or  upgrade  the  Company's
manufacturing  operations to satisfy all of its  Calcitonin  supply  obligations
under the Pfizer license agreement.  However, neither the cost or timing of such
capital expenditures are determinable at this time.

Due to the receipt of payments totaling  approximately  $1.3 million from Pfizer
in September  and October 2000,  consisting of a milestone  payment and payments
for  testing   services  and  Calcitonin   supplies,   as  well  as  receipt  of
approximately  $1,358,000 in the third quarter of 2000 of additional  short-term
loans from officers of the Company,  the Company believes that it has sufficient
financial  resources to sustain its  operations at the current level for most of
the fourth quarter of 2000. The Company will require  additional funds to ensure
continued  operations beyond that time.  Payment of the obligations under the 5%
Debentures  also may  require  additional  financing.  For near term  additional
funds,  the Company  expects to shortly  sign one or more  licensing  agreements
including a nasal calcitonin  licensing  agreement  currently under  negotiation
which  would  provide  up-front  and other  payments  in 2000.  In addition to a
possible nasal calcitonin license agreement,  the Company is actively seeking to
enter  into  other  licensing  and/or  supply  agreements  with   pharmaceutical
companies for its  Calcitonin  products and other  peptide  products that can be
manufactured and/or delivered using its patented technologies.  These agreements
could provide funds to the Company in upfront and milestone  payments.  However,
there is no  assurance  as to when or if the  Company  might enter into any such
additional agreements.

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.  The Company expects to receive a portion of this
amount in 2000 as 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 is 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. A
failure or significant  delay in signing other  agreements,  would require us to
obtain additional funds from other sources, which might include a debt or equity
financing,  in order 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 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.  During the third  quarter of 2000,  Jay Levy loaned the Company an
aggregate of $1,280,000 and Warren Levy and Ronald Levy,  officers and directors
of the Company,  loaned the Company an aggregate of $78,323  evidenced by demand
notes bearing interest at the Merrill Lynch Margin Loan Rate plus .25%.



NOTE D - CONVERTIBLE DEBENTURES

In June  1998,  the  Company  completed  a private  placement  of $4  million in
principal  amount of 5%  Debentures  from  which it  realized  net  proceeds  of
approximately  $3.75 million.  The 5% Debentures were convertible into shares of

                                       7
<PAGE>

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  was  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.  In December 1999, the
Company  was  unable to  convert  $200,000  of the 5%  Debentures  tendered  for
conversion  because the  conversion  would have  exceeded the Share Limit.  As a
result,  the  Company  accrued as of  December  31,  1999 the 20% premium on the
outstanding  $2,000,000 in principal  amount of the 5%  Debentures  that had not
been  converted in the amount of $400,000.  As of September 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  September 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.  The  semi-annual
interest  payment  due July 5,  2000 was  also  not made by the  Company.  As of
September 30, 2000, the accrued and unpaid interest on the 5% Debentures totaled
approximately $366,000.

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 of
these payments to date, but has accrued the amounts as interest  expense.  As of
September  30,  2000,  the  accrued  and  unpaid  amount  totaled  approximately
$497,000.

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  in an effort to arrive at 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
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.  The joint venture would need to file a New Drug  Application  (NDA) in

                                       8

<PAGE>

China for its injectable and nasal products.  In addition,  brief local clinical
trials may be  required.  If the product is  successful,  the joint  venture may
establish a facility to fill injectable and nasal Calcitonin products containing
bulk Calcitonin produced at the Company's Boonton, New Jersey plant and plans to
eventually  manufacture  the  bulk  drug  in  China  in a  new  facility  to  be
constructed  by the joint  venture.  This would require  local  financing by the
joint  venture.  As of September  30, 2000,  the joint venture had not yet begun
operations.

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 within 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 September 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,  of
which  $75,000  had been paid as of  September  30,  2000.  The entire  $350,000
obligation was recognized as an expense in the second quarter of 2000.

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:

                                     September 30, 2000       December 31, 1999
                                     ------------------       -----------------

       Finished goods..........         $ 1,002,729               $   596,359
       Raw materials...........             331,037                   271,207
                                        -----------              ------------
            Total..............         $ 1,333,766               $   867,566
                                        ===========              ============

NOTE G - STOCK OPTION PLAN

In  November  1999,  the Board of  Directors  approved,  subject to  stockholder
approval,  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 to
receive  option  grants under the New Plan.  Options  granted under the New Plan
have a ten-year  term and an  exercise  price  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. At the Company's June
6, 2000 Annual Meeting,  the  stockholders  approved the New Plan. In accordance
with Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees",  the measurement  date for valuing the stock options for the purpose
of  determining  compensation  expense 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 and $205,077 as compensation expense in the second and third quarters of
2000,  respectively,  leaving a balance of  $410,297 as  deferred  stock  option
compensation.

                                       9
<PAGE>

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

RESULTS OF OPERATIONS

Revenue for the  three-month  period ended  September 30, 2000  decreased 81% to
$1,359,000 from $7,001,000 for the three-month  period ended September 30, 1999.
Revenue  for the first nine  months of 2000  decreased  75% to  $2,361,000  from
$9,528,000 for the first nine months of 1999. In both years the revenue consists
primarily of revenue from Pfizer/Warner-Lambert,  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.

Research and  development,  the  Company's  largest  expense,  increased  10% to
$2,905,000  from  $2,652,000 for the three months ended  September 30, 2000, and
increased 8% to $7,836,000  from  $7,262,000 for the nine months ended September
30,  2000,  as  compared to the same  periods in 1999.  The  increases  for both
periods were primarily attributable to expenses related to the Company's ongoing
clinical  trials  for  its  nasal  Calcitonin  product,  partially  offset  by a
reduction in consulting fees related to the Pfizer  collaboration.  Expenses for
the three months ended September 30, 2000 also include  additional  expenditures
related to an increase in Calcitonin production.

General and administrative  expenses increased 43% to $801,000 from $562,000 for
the three months ended  September 30, 2000, and increased 46% to $2,418,000 from
$1,654,000 for the nine months ended September 30, 2000, as compared to the same
periods in 1999.  The increases for the three month and nine month periods ended
September 30, 2000 were primarily due to the recognition of non-cash expenses of
$220,000 due to the issuance of warrants to a consultant and due to stock option
compensation  of $205,000  for the three  months  ended  September  30, 2000 and
$273,000 for the nine months  ended  September  30, 2000.  The nine month period
ended September 30, 2000 also includes the recognition of a $350,000  expense in
June 2000 to terminate the Company's former joint venture in China.

Interest income decreased $9,000 and increased  $12,000 for the three months and
nine months  ended  September  30, 2000,  respectively,  as compared to the same
periods in 1999, due to the amount of funds available for investment in 2000.

Interest expense increased $204,000 or 189% for the three months ended September
30, 2000 to $312,000  from  $108,000 for the three months  ended  September  30,
1999.  Interest  expense  increased  $370,000 or 76% for the nine  months  ended
September 30, 2000 to $860,000 from $490,000 for the nine months ended September
30, 1999.  Interest  expense for the nine month period ended  September 30, 1999
includes the amortization of the value of the beneficial  conversion feature and
related   warrants  of  the  Company's  5%  Convertible   Debentures   (the  "5%
Debentures") in the amount of $197,000. Excluding the effect of the amortization
charged to  interest,  interest  expense  increased  in the three month and nine
month periods ended September 30, 2000, as compared to the comparable periods in
1999, primarily due to an increase in the annual interest rate on the $2,000,000
in outstanding  principal  amount of the 5% Debentures to 20% resulting from the
failure of the Company to make a  semi-annual  interest  payment that was due in
January  2000. In addition,  since  October 1999,  the Company 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 in October 1999.
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 a $5.7  million  decrease in revenue  from  Pfizer/Warner-Lambert  in the
three month period ended September 30, 2000, in addition to increased  operating
expenses and interest expense,  net loss increased $6,347,000 from the profit of
$3,693,000 for the corresponding period in 1999.

                                       10
<PAGE>


Due to a $7.2  million  decrease in revenue  from  Pfizer/Warner-Lambert  in the
nine-month  period  ended  September  30,  2000,  in  addition to  increases  in
operating expenses and interest expense,  net loss increased $8,862,000 from the
profit of $151,000 for the corresponding period in 1999.

As of  December  31,  1999,  the Company had  available  for federal  income tax
reporting   purposes  net  operating   loss   carryforwards   of   approximately
$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 nine months ended  September 30, 2000,  the Company  accumulated  additional
operating loss  carryforwards of approximately  $8,700,000.  In addition,  as of
December 31, 1999,  the Company has federal  investment tax credits and research
and development credits in the amounts of $14,000 and $2,376,000,  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 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"). In order
to realize  these  benefits,  the Company  must apply to the NJEDA each year and
must meet various  requirements  for continuing  eligibility.  In addition,  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  nine-month
period ended September 30, 2000, the Company's deferred tax assets and valuation
allowances each increased by approximately $3,500,000.

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   $433,000  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 September 30, 2000,  had cash and cash  equivalents  of $49,000,  a
decrease of $634,000 from December 31, 1999.

The Company has incurred annual  operating  losses since its inception and, as a
result,  at  September  30,  2000 had an  accumulated  deficit of  approximately
$71,619,000 and a working capital  deficiency of approximately  $9,670,000.  The
independent  auditors'  report covering the Company's 1999 financial  statements
includes an explanatory  paragraph  stating that these 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.

                                       11
<PAGE>


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  that  entitle the Company to receive  milestone
payments,  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
Warner-Lambert  Company a worldwide license to use the Company's oral Calcitonin
technology.  In June 2000,  Warner-Lambert  was acquired by Pfizer Inc.  Through
September  30,  2000,  the  Company  had  received  $3  million  for  an  equity
investment,  $3 million for a licensing fee and recognized an aggregate of $16.5
million in milestone revenue under the agreement, including a $1 million payment
received  in October,  2000 for a milestone  achieved  in  September  2000.  The
Company is eligible  to receive up to an  additional  $32  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 Pfizer and its affiliates and
from the sale of raw  material to Pfizer.  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, 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
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.  The joint venture would need to file a New Drug  Application  (NDA) in
China for its injectable and nasal products.  In addition,  brief local clinical
trials may be  required.  If the product is  successful,  the joint  venture may
establish a facility to fill injectable and nasal Calcitonin products containing
bulk Calcitonin produced at the Company's Boonton, New Jersey plant and plans to
eventually  manufacture  the  bulk  drug  in  China  in a  new  facility  to  be
constructed  by the joint  venture.  This would require  local  financing by the
joint  venture.  As of September  30, 2000,  the joint venture had not yet begun
operations.

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 within 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 September 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,  of
which  $75,000  had been paid as of  September  30,  2000.  The entire  $350,000
obligation was recognized as an expense in the second quarter of 2000.


                                       12
<PAGE>


In June  1998,  the  Company  completed  a private  placement  of $4  million in
principal  amount of 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  was  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.  In December 1999, the
Company  was  unable to  convert  $200,000  of the 5%  Debentures  tendered  for
conversion  because the  conversion  would have  exceeded the Share Limit.  As a
result,  the  Company  accrued as of  December  31,  1999 the 20% premium on the
outstanding  $2,000,000 in principal  amount of the 5%  Debentures  that had not
been  converted in the amount of $400,000.  As of September 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  September 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.  The  semi-annual
interest  payment  due July 5,  2000 was  also  not made by the  Company.  As of
November 14, 2000, the accrued and unpaid interest on the 5% Debentures  totaled
approximately $416,000.

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 of
these payments to date, but has accrued the amounts as interest  expense.  As of
November 14, 2000, the accrued and unpaid amount totaled approximately $557,000.


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.
(See Part II, Item 1 - Legal Proceedings).

To satisfy the Company's  short-term  liquidity needs, 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,  from time to time 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 November 1, 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 $2,498,323  evidenced by demand
notes  bearing a floating  interest  rate equal to the Merrill Lynch Margin Loan
Rate  plus .25%  (9.875%  at  September  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

                                       13
<PAGE>

aggregate amount of $72,426 per month. No installment payments have been made to
date. Jay Levy has agreed to postpone  temporarily 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.

The   Company's   cash   requirements   to  operate  its  research  and  peptide
manufacturing  facilities and develop its products are  approximately  $10 to 11
million  per  year.  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  as well as
obligations for its joint venture in China.

Due to the receipt of payments totaling  approximately  $1.3 million from Pfizer
in September  and October 2000,  consisting of a milestone  payment and payments
for  testing   services  and  Calcitonin   supplies,   as  well  as  receipt  of
approximately  $1,358,000 in the third quarter of 2000 of additional  short-term
loans from officers of the Company,  the Company believes that it has sufficient
financial  resources to sustain its  operations at the current level for most of
the fourth quarter of 2000. The Company will require  additional funds to ensure
continued  operations beyond that time.  Payment of the obligations under the 5%
Debentures  also may  require  additional  financing.  For near term  additional
funds,  the Company  expects to shortly  sign one or more  licensing  agreements
including a nasal calcitonin  licensing  agreement  currently under  negotiation
which  would  provide  up-front  and other  payments  in 2000.  In addition to a
possible nasal calcitonin license agreement,  the Company is actively seeking to
enter  into  other  licensing  and/or  supply  agreements  with   pharmaceutical
companies for its  Calcitonin  products and other  peptide  products that can be
manufactured and/or delivered using its patented technologies.  These agreements
could provide funds to the Company in upfront and milestone  payments.  However,
there is no  assurance  as to when or if the  Company  might enter into any such
additional agreements.

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.  The Company expects to receive a portion of this
amount in 2000 as 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 is 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. A
failure or significant  delay in signing other  agreements,  would require us to
obtain additional funds from other sources, which might include a debt or equity
financing,  in order 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. A sale of equity
securities  may be adversely  affected by the delisting of the Company's  Common
Stock by the Nasdaq Stock Market.

While the Company  believes  that the  execution of a license  agreement for its
nasal Calcitonin  product,  along with additional  milestone  payments under the
license  agreement with Pfizer (successor to  Warner-Lambert)  would satisfy the
Company's  liquidity  requirements over the near-term,  satisfying the Company's
long-term liquidity  requirements will require the successful  commercialization

                                       14
<PAGE>

of the product  licensed to Pfizer and/or one or more of its other products.  In
addition,  the commercialization of its oral Calcitonin product will require the
Company  to incur  additional  capital  expenditures  to expand or  upgrade  the
Company's  manufacturing  operations  to satisfy  all of its  Calcitonin  supply
obligations  under the Pfizer license  agreement.  However,  neither the cost or
timing of such capital expenditures are determinable at this time.

OTHER

The Company's  Common Stock was 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

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 September 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 September 30, 2000.

                                       15
<PAGE>


<TABLE>
<CAPTION>
                                                                       Year of Maturity
                                       Carrying                        ----------------
                                        Amount            2000          2001       2002       2003     2004
                                        ------            ----          ----       ----       ----     ----
<S>                                  <C>              <C>            <C>        <C>           <C>       <C>
Notes payable - stockholders         $2,498,323       2,498,323          --         --         --       --
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.


                                       16
<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 Tail Wind Fund,  Ltd.  ("Tail  Wind"),  the holder of the
outstanding  $2,000,000 in principal  amount of the 5% Debentures,  , filed with
the  American  Arbitration  Association  a demand for  arbitration  against  the
Company. In its demand, Tail Wind claimed that it was owed, as of June 30, 2000,
approximately  $3,400,000  consisting  of  principal,  interest  and  penalties,
resulting from the Company's default under various  provisions of the debentures
and related agreements. These alleged defaults included the Company's failure to
redeem the  debentures  after  becoming  obligated  to do so, the failure to pay
interest when due, and the failure to pay  liquidated  damages  arising from the
delisting of the Company's  common stock from the Nasdaq  National  Market.  See
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations - Liquidity and Capital  Resources." 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.  On July 31, 2000,  the
Company submitted to the American Arbitration Association a statement of defense
in  which  it  denies  the  amount  of  Tail  Wind's  claim  and  makes  certain
counterclaims.  A hearing on the matter  before an  arbitrator  appointed by the
American  Arbitration  Association  has been  scheduled for December  2000.  The
outcome of the proceeding is uncertain. However, an extremely unfavorable ruling
could have a material  adverse effect on the Company.  The Company and Tail Wind
have  had  settlement   discussions  in  an  effort  to  arrive  at  a  mutually
satisfactory settlement.

Item 2.  Changes in Securities and Use of Proceeds

(a)      Not applicable.

(b)      Not applicable.

(c)      Recent Sales of Unregistered Securities.


In the third quarter of 2000,  the Company  issued 99,860 shares of Common Stock
upon the  cashless  exercise  of a total of  205,834  warrants  and  options  at
exercise prices ranging from $1.38 to $1.44 per share. In addition,  the Company


                                       17
<PAGE>

issued  224,500 shares of Common Stock upon the exercise of warrants at exercise
prices ranging from $1.38 to $1.50 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% Debentures in Part I, Item 2: "Management's  Discussion and
Analysis of  Financial  Condition  and  Results of  Operations  - Liquidity  and
Capital Resources".

Item 6.     Exhibits and Reports on Form 8-K

                  (a)      Exhibits:

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

                  (b)      Reports on Form 8-K:

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


                                       18
<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
November 14, 2000                           -----------------
                                            Warren P. Levy, President
                                            (Chief Executive Officer)


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



                                       19