<PAGE> 1

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


(Mark One)

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

          For the quarterly period ended June 30, 1997

                               OR

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

         For the transition period from_______________to_______________

         Commission file number 0-12992

                        SYNTHETECH, INC.
     (Exact name of registrant as specified in its charter)
                                
               Oregon                    84-0845771
     (State or Other Jurisdiction    (I.R.S. Employer
   of Incorporation or Organization   Identification No.)
                              
      1290 Industrial Way, Albany, Oregon        97321
  (Address of Principal Executive Offices)     (Zip Code)

                          (541) 967-6575
      (Registrant's Telephone Number, Including Area Code)
                                
     Indicate by check mark whether the registrant: (1) has filed
all  reports required to be filed by Section 13 or 15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.

Yes  X    No_____

     The number of shares of the registrant's common stock, $.001
par value, outstanding as of August 6, 1997 was 13,882,021.


<PAGE> 2                                
                            SYNTHETECH, INC.                 
                                                                  
                             BALANCE SHEETS
                       -------------------------
<TABLE>                           
<CAPTION>                                  
<S>                                        <C>           <C>
                                             (unaudited)              
                                              June 30,     March 31,
                                                1997         1997
                                              ---------    ---------
                                                                  
             ASSETS                                               
             ------                                               
                                                                  
CURRENT ASSETS:                                                   
  Cash and cash equivalents                  $ 4,958,000   $ 6,740,000
  Securities available for sale                  186,000       176,000
  Accounts receivable, less allowance                             
   for doubtful accounts of $15,000                              
   for both periods                              981,000       695,000
  Inventories                                  2,212,000     1,887,000
  Prepaid expenses                               110,000       164,000
  Income tax receivable                          730,000       798,000
  Deferred income taxes                           56,000        56,000
  Other current assets                             1,000         4,000
                                              ----------    ----------
    TOTAL CURRENT ASSETS                       9,234,000    10,520,000
                                                                  
                                                                  
PROPERTY, PLANT AND EQUIPMENT, at cost, net    7,505,000     6,339,000
                                                                  
SECURITIES AVAILABLE FOR SALE                    452,000       450,000
                                                                  
OTHER ASSETS                                      14,000        14,000
                                              ----------    ----------
    TOTAL ASSETS                             $17,205,000   $17,323,000
                                             ===========   ===========
                                                                  
             See notes to financial statements.
</TABLE>
<PAGE> 3
                                  SYNTHETECH, INC.       
       
                                  BALANCE SHEETS                    
                              ---------------------------                 
                                    (continued)             
<TABLE>                                                           
<CAPTION>
<S>                                    <C>           <C>
                                          (unaudited)
                                            June 30,     March 31,
                                             1997         1997
---------------------------------------   ----------   ---------
LIABILITIES AND SHAREHOLDERS' EQUITY                            
---------------------------------------                           

                                                                  
CURRENT LIABILITIES:                                              
  Current portion of note payable           $  13,000   $    13,000
  Accounts payable                            576,000       543,000
  Accrued compensation                         85,000       674,000
  Deferred revenue                             44,000        44,000
  Other accrued liabilities                     8,000         4,000
                                          -----------   -----------
    TOTAL CURRENT LIABILITIES                 726,000     1,278,000
                                                                  
DEFERRED INCOME TAXES                          70,000        68,000
                                                                  
NOTE PAYABLE, net of current portion          177,000       180,000
                                                                  
SHAREHOLDERS' EQUITY:                                             
  Common stock, $.001 par value;                                  
   authorized 100,000,000 shares; 
   issued and outstanding,
   13,882,000 and 13,860,000 shares            14,000        14,000
  Paid-in capital                           8,416,000     8,296,000
  Employee notes receivable and                                   
   deferred compensation                     (229,000)     (239,000)
  Unrealized gain on securities
   available for sale                          17,000       16,000
  Retained earnings                         8,014,000     7,710,000
                                          -----------   -----------
    TOTAL SHAREHOLDERS' EQUITY             16,232,000    15,797,000
                                          -----------   -----------
    TOTAL LIABILITIES AND SHAREHOLDERS'  
     EQUITY                               $17,205,000   $17,323,000
                                          ===========   ===========
                                                                  
             See notes to financial statements.
</TABLE>
                                
<PAGE> 4                               
                                
                                                         
                                    SYNTHETECH, INC.    
                                                                      
                                  STATEMENTS OF INCOME                     
                                ------------------------                 
                                      (unaudited)                              
<TABLE>                             
<CAPTION> 
<S>                                         <C>           <C>
For The Three Month Period Ended June 30        1997           1996
-----------------------------------------     ----------    ----------
                                                                      
REVENUES                                      $1,480,000    $3,521,000
COST OF SALES                                    723,000     1,128,000
                                             -----------   -----------
GROSS PROFIT                                     757,000     2,393,000
                                                         
RESEARCH AND DEVELOPMENT                          61,000        69,000
SELLING, GENERAL AND ADMINISTRATIVE              289,000       279,000
                                              ----------    ----------
OPERATING EXPENSE                                350,000       348,000
                                              ----------    ----------
OPERATING INCOME                                 407,000     2,045,000
OTHER INCOME                                      83,000        83,000
                                              ----------    ----------  
INCOME BEFORE INCOME TAXES                       490,000     2,128,000
PROVISION FOR INCOME TAXES                       186,000       809,000
                                              ----------    ----------
NET INCOME                                    $  304,000    $1,319,000
                                              ==========    ==========
                                                                      
                                                                      
NET INCOME PER COMMON SHARE                        $0.02         $0.09
                                                   =====         =====
                                                                      
SHARES USED IN PER SHARE CALCULATION          14,288,506    14,204,911
                                              ==========    ==========
                                                                      
            See notes to financial statements.
</TABLE>
<PAGE> 5                               
                                    SYNTHETECH, INC.         
                              
                                STATEMENTS OF CASH FLOWS
                             -----------------------------
                                     (unaudited)      
<TABLE>                    
<CAPTION>
<S>                                         <C>        <C>
For The Three Month Period Ended June 30         1997      1996
----------------------------------------       -------   -------
CASH FLOWS FROM OPERATING                        
ACTIVITIES:
Net income                                  $  304,000   $1,319,000
Adjustments to reconcile net                     
 income to net cash provided by (used                     
 in) operating activities:
  Depreciation, amortization and other          85,000       55,000
  Amortization of deferred compensation         27,000        8,000
  Accrued interest on securities
   available for sale                          (10,000)     (16,000)  
  Loss on sale of property, plant    
   and equipment                                 1,000            -
                                                 
  (Increase) decrease in assets:
    Accounts receivable, net                  (286,000)    (114,000)
    Inventories                               (325,000)    (236,000)
    Prepaid expenses                            54,000      (41,000)
    Income tax receivable                       68,000      152,000
    Other assets                                 3,000            -
                                                 
   Increase (decrease) in liabilities:
    Accounts payable and accrued
     liabilities                              (552,000)     600,000   
    Deferred revenue                                 -      (54,000)
                                              ---------    --------
        Net cash (used in) provided
         by operating activities              (631,000)    1,673,000
                                              ---------    ---------
                                                 
CASH FLOWS FROM INVESTING ACTIVITIES:
   Property, plant and equipment purchases   (1,248,000)    (563,000)
   Proceeds from sale of property, plant
    and equipment                                 1,000            -          
                                             ----------    ----------
        Net cash used in investing
         activities                          (1,247,000)    (563,000)
                                             -----------   ----------
                                                 
CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments under long-term
   debt obligations                              (3,000)           -           
  Proceeds from stock option            
   exercises and disqualifying    
   dispositions                                  99,000      151,000
   Payments related to stock registration             -      (18,000)
                                              ----------    ---------
        Net cash provided by financing     
         activities                              96,000      133,000
                                             ----------    ---------
NET (DECREASE) INCREASE IN CASH   
 AND CASH EQUIVALENTS                        (1,782,000)   1,243,000
                                                 
CASH AND CASH EQUIVALENTS AT  
 BEGINNING OF PERIOD                          6,740,000    5,049,000
                                             ----------   ----------
CASH AND CASH EQUIVALENTS AT 
 END OF PERIOD                               $4,958,000   $6,292,000
                                             ==========   ==========
NON-CASH INVESTING ACTIVITIES:
Unrealized gain (loss) on securities
 available for sale                              $1,000      ($5,000)
Issuance of stock options at below
 fair value                                     $21,000            -
                                                 
                    See notes to financial statements.
</TABLE>
<PAGE> 6                               
                                
                  NOTES TO FINANCIAL STATEMENTS

NOTE A.   GENERAL AND BUSINESS

          The summary financial statements included herein have
been prepared, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission.  Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although Synthetech
management believes that the disclosures are adequate to make the
information presented not misleading.  It is suggested that these
summary financial statements be read in conjunction with the
financial statements and the notes thereto included in
Synthetech's 1997 Form 10-KSB.

          Interim financial statements are by necessity somewhat
tentative; judgments are used to estimate quarterly amounts for
items that are normally determinable only on an annual basis.
For example, provision for income taxes is an estimate of the
annual liability pro-rated over the quarters of the fiscal year
based on estimates of annual income.  Further, all inventory
quantities are verified by physically counting the units on hand
at least once a year.  Normally, selected inventories are counted
at the end of each quarter.  For those inventories not counted at
the end of the quarter, quantities are determined using measured
sales and production data for the period.

      The interim period information included herein reflects all
adjustments which are, in the opinion of Synthetech management,
necessary for a fair statement of the results of the respective
interim periods.  Results of operations for interim periods are
not necessarily indicative of results to be expected for an
entire year.


NOTE B.   STATEMENTS OF CASH FLOWS

          Supplemental cash flow disclosures for the three month
period ended June 30:
<TABLE>
<CAPTION>
<S>                                    <C>       <C>
          Cash Paid
          ---------                       1997       1996
                                          ----       ----
            Income Taxes                 $79,000   $ 5,000
            Interest                     $ 5,000   $     -
</TABLE>
<PAGE> 7


            NOTES TO FINANCIAL STATEMENTS (continued)
                                
NOTE C. EARNINGS PER SHARE

     Earnings per share are computed using the weighted average
number of common shares and common stock equivalents (stock
options and warrants) outstanding during the applicable period.

     In February 1997, the Financial Accounting Standards Board
issued SFAS No. 128, "Earnings per Share", superseding Opinion
15.  SFAS No. 128 requires the calculation and disclosure of
Basic Earnings per Share and Diluted Earnings per Share,
effective for both interim and annual periods ending after
December 15, 1997.   Basic earnings per share are computed by
dividing net income by the weighted average number of shares of
common stock outstanding during the period.  Diluted earnings per
share are computed by dividing net income by the weighted average
number of shares of common stock and common stock equivalents
outstanding during the period, calculated using the treasury
stock method as defined in SFAS No. 128.  In accordance with the
provisions of SFAS No. 128,  the Company is providing pro forma
disclosure of the effects of this accounting change on reported
earnings per share (EPS) data as follows:
     
     <TABLE>
     <CAPTION>
     <S>                                    <C>          <C>
     For The Three Months Ended June 30       1997         1996
     -----------------------------------      ----         ----     
     Primary EPS as reported                  $0.02       $0.09
     Effect of SFAS No. 128                       -       $0.01
                                              -----       ----- 
     Basic EPS as restated                    $0.02       $0.10
                                              =====       =====           
                                                   
     Primary EPS as reported                  $0.02       $0.09
     Effect of SFAS No. 128                       -           -
                                              -----       -----     
     Diluted EPS as restated                  $0.02       $0.09
                                              =====       =====     
                                                   
                                                   
     Weighted average shares       
      outstanding for Basic EPS            13,866,373  13,515,427
     Common stock options and warrants                      
      issuable under treasury stock
      method                                  422,133     661,752
                                           ----------  ----------  
     Weighted average common and                            
      common equivalent shares      
      outstanding for Diluted EPS          14,288,506  13,177,179
                                           ==========  ==========
</TABLE>
<PAGE> 8


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

     The following table sets forth, for the periods indicated,
the percentage of revenues represented by each item included in
the Statements of Income.


                                Percentage of Revenues          
                                ----------------------                  
                                                                             
<TABLE>                                   
<CAPTION>
<S>                                              <C>         <C>    
For The Three Month Period Ended June 30            1997       1996 
-----------------------------------------          -----       ----- 
                                                                             
Revenues                                           100.0 %     100.0 %
Cost of sales                                       48.9        32.0   
                                                   -----       -----   
Gross Profit                                        51.1        68.0   
                                                                             
Research and Development                             4.1         2.0   
Selling, General and Administration                 19.5         7.9   
                                                   -----       -----      
Operating Income                                    27.5        58.1   
Other Income                                         5.6         2.4   
                                                   -----       -----   
Income Before Income Taxes                          33.1        60.5   
                                                                             
Provision For Income Taxes                          12.6        23.0   
                                                   -----       -----   
Net Income                                          20.5        37.5   
                                                   =====       =====   
</TABLE>

Revenues
--------
     Revenues decreased by 58% to $1.48 million in the first
quarter of fiscal 1998 from $3.52 million in the first quarter of
fiscal 1997.  International sales, mainly to Japan and Western
Europe, were $767,000 in the first quarter of fiscal 1998 as
compared to $516,000 for the first quarter of fiscal 1997.
<PAGE> 9
     Revenues for the first quarter of fiscal 1997 included sales
associated with Peptide Building Block (PBB) orders for use in
late stage clinical trials by two customers of $1.35 million and
$1.30 million, respectively, representing 75% of revenues for the
quarter.  By contrast, the largest customer for the first quarter
of fiscal 1998 accounted for significantly less revenue at less
than 25% of revenues for the quarter. The reduction in revenues
for the first quarter of fiscal 1998 from the first quarter of
fiscal 1997 demonstrates the continuing potential for period to
period fluctuations in sales of products.  Moreover, as a
supplier of PBBs for drugs in various stages of development, the
Company's orders are always subject to curtailment or
cancellation.  For example, one of the customers referenced above
for the first quarter of fiscal 1997 advised the Company that it
was pursuing an alternate lower-cost manufacturing process and
discontinued ordering from the Company in the second quarter of
fiscal 1997.

     The Company has not yet established a stable baseload of
demand for its products.  The Company's products are part of a
new and emerging market with sizable fluctuations in orders
between periods.  In most instances, order or reorder cycles for
products are not predictable.  Demand for PBBs is extremely
variable since individual clinical trial programs are always
subject to significant risk of suspension or early cancellation
and only a small percentage of drugs in clinical trial programs
are ultimately approved for market use.  As a result, the Company
expects to continue to see fluctuations in its revenue from
period to period.  (See "Industry Factors" below.)


Gross Profit
------------
     Gross profit was $757,000 or 51% of revenues in the first
quarter of fiscal 1998 as compared to $2.39 million or 68% of
revenues in the first quarter of fiscal 1997.  The decrease in
gross profit as a percentage of revenue resulted primarily from
the lower level of revenue and, to a lesser extent, the mix of
products.  The Company expects revenue to continue to fluctuate
from period to period and cause variations in gross profit
margins.  Decreased revenues will tend to have the affect of
reducing gross profit margins since a portion of the Company's
manufacturing overhead costs are relatively fixed.


Operating Expenses
------------------
     Research and development (R&D) and selling, general and
administrative (SG&A) expenses were $350,000 in the first quarter
of fiscal 1998 compared to $348,000 in the first quarter of
fiscal 1997.  As a percentage of revenues, R&D and SG&A expenses
increased to nearly 24% in the first quarter of fiscal 1998 from
nearly 10% in the same period of fiscal 1997 due to the lower
level of revenues.


Operating Income
----------------
     Operating income decreased to $407,000 or over 27% of revenues in
the first quarter of fiscal 1998 compared with $2.05 million
or 58% of revenues in the first quarter of fiscal 1997.
<PAGE> 10


Other Income
------------
     The net other income of $83,000 in the first quarter of
fiscal 1998 and the first quarter of fiscal 1997 came primarily
from interest earnings.

Net Income
----------
     For the first quarter of fiscal 1998 the Company earned
$490,000 before income taxes.  A provision for income taxes of
$186,000 resulted in net income of $304,000.  The Company's
effective tax rate was 38% for the first quarter of fiscal 1998
and the first quarter of fiscal 1997.


INDUSTRY FACTORS
----------------
     The market for PBBs is driven by the market for the peptide-
based drugs in which they are incorporated.  The drug development
process is dictated by the marketplace, drug companies and the
regulatory environment.  The Company has no control over the pace
of peptide-based drug development, which drugs get selected for
clinical trials, which drugs are approved by the FDA and, even if
approved, the ultimate potential of such drugs.  Since there are
only a handful of approved peptide-based drugs on the market
today, this market is still very early in development and a
substantial amount of the activity is occurring at the earlier
stages of research and development and clinical trials.

     Developments of new biological information, based on
rational drug design and combinatorial chemistry, are creating
additional peptide-based drug candidates.  Cost pressures in the
pharmaceutical industry, however, have tightened the criteria
used to assess drug prospects at all phases of drug development
programs.  Cost pressures in the pharmaceutical industry can also
cause pharmaceutical companies to investigate alternative drug
manufacturing processes which may not include the Company's
products as an intermediate.

     As a supplier of building blocks for peptide-based drugs,
the Company's revenue will be affected by these industry factors.
Development cycles typically are quite prolonged.  For instance,
in 1993 Synthetech began supplying a PBB for clinical trials to
one customer which recently filed a new drug application with the
FDA.  Similarly, Synthetech began supplying PBBs at the early
development stages in 1990 for a peptide containing product which
Synthetech's customer recently commenced initial marketing
efforts.  Also, the high cancellation rate for drug development
programs results in a significant likelihood that there will be
no subsequent or "follow-on" PBB sales for any particular drug
development program.  Since the Company's revenue comes
predominantly from PBBs used in drug development programs, the
overall impact on the Company's business from the cancellation
rate will depend, to a large extent, on the rate of new drug
development efforts being commenced.

     The advancement of a drug for which Synthetech is providing
PBBs from a drug development program into an "approved" status by
the FDA could also significantly affect the Company's business if
Synthetech is able to continue to supply the PBBs for the
approved drug.  With the increased volume typically associated
with "approved" drugs, the Company, however, expects to face
increased competition for this business.

     Due to the wide range of drugs under development at various
stages, sizable fluctuations in orders, and the unpredictability
of order or reorder cycles for products and the other factors
discussed herein, the Company does not have a stable baseload of
demand for its products and cannot estimate the potential market
for its products.  Moreover, the Company's customers vary
substantially from year to year and the Company currently cannot
<PAGE> 11
rely on any one customer as a constant source of revenue.  For
the foregoing reasons, the Company has experienced in the past,
and is likely to experience in the future, significant
fluctuations in its quarterly results.


Liquidity and Capital Resources
-------------------------------
     At June 30, 1997, the Company had working capital of $8.51
million compared to $9.24 million at March 31, 1997.  The
Company's cash, cash equivalents and short term securities
available for sale at June 30, 1997 totaled $5.14 million.  In
addition, the Company had a $1 million bank line of credit of
which there was no amount outstanding at June 30, 1997.

     The increase in accounts receivable to $981,000 at June 30,
1997 from $695,000 at March 31, 1997 reflected the timing of
shipments during the quarter.  The increase of inventory to $2.21
million at June 30, 1997 from $1.89 million at March 31, 1997
primarily resulted from replenishing lower levels of raw material
and finished product inventory items.  The decrease in accrued
compensation to $85,000 from $674,000 reflected the payment in
the first quarter of fiscal 1998 of bonuses accrued for fiscal
1997.

     The Company had approximately $1.25 million of capital
expenditures during the first three months of fiscal 1998.
Approximately $34,000 was spent for equipment and equipment
upgrades in the existing plant and $1.22 million was spent for
the new plant expansion.  The Company anticipates total capital
expenditures for fiscal 1998 for the existing plant to be
$500,000 and for the new plant expansion to be $2.91 million for
a total of $3.41 million.  The total cost of the plant expansion
is now estimated to be $7.70 million and is expected to be
complete by the end of September 1997.   Company continues to
expect to finance a majority of these capital expenditures from
internal cash flow.

                    ___________________      
      
      Certain statements in the Company's Form 10-Q contain
"forward-looking" information (as defined in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934) that involve risks and uncertainties, including, but
not limited to, potential quarterly revenue fluctuations,
uncertain market for products, technological change, customer
concentration, the impact of competitive products and pricing,
and the increased costs associated with the Company's facility
expansion.  These forward-looking statements should be considered
in light of the uncertainties and other risks detailed in the
Company's Securities and Exchange Commission Filings, including
the Company's Form 10-KSB for the fiscal year ended March 31,
1997.

<PAGE> 12                                
                   PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

     3.1* Articles of Incorporation

     3.2* Bylaws

    10.1  Form of contract entered into by each of Mr. Philip L.Knutson, 
          Mr. M. Sreenivasan, and Mr. Charles B. Williams dated July 18, 1997.

    27    Financial Data Schedule

__________________
      
      *Incorporated by reference herein from the Company's Form
      10-K for the year ended March 31, 1991.


(b)  Reports

     No reports on Form 8-K were filed during the quarter.
      
<PAGE> 13                                      
                           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.




                                   SYNTHETECH, INC.
                                     (Registrant)



Date:  August 12, 1997                       /s/  M. Sreenivasan
                                             M. Sreenivasan
                                             President & C.E.O.



Date:  August 12, 1997                       /s/  Charles B.Williams
                                             Charles B.Williams
                                             Vice President, Finance
                                             and Administration, C.F.O.,
                                             Chief Accounting Officer