<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 December 31, 1999

                                   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 February 4, 2000 was 14,256,130.

<PAGE> 2

                        PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements


                                 SYNTHETECH, INC.

                                  BALANCE SHEETS
                             -------------------------

<TABLE>
<CAPTION>
<S>                                           <C>                <C>
                                               (unaudited)
                                                December 31,       March 31,
                                                  1999               1999
------------                                   -------------     -------------
 ASSETS
------------

Current Assets:
  Cash and cash equivalents                    $  7,757,000     $  7,470,000
  Accounts receivable, less allowance
    for doubtful accounts of $15,000 for
    both periods                                    812,000        3,414,000
  Income tax receivable                             132,000                -
  Inventories                                     3,896,000        3,359,000
  Prepaid expenses                                  362,000          284,000
  Deferred income taxes                             133,000          133,000
  Other current assets                               10,000            5,000
                                                 ----------       ----------
    Total Current Assets                         13,102,000       14,665,000

Property, Plant and Equipment, at cost, net      13,012,000       11,561,000

Other Assets                                          4,000            4,000
                                                 ----------       ----------
    Total Assets                               $ 26,118,000     $ 26,230,000
                                               ============     ============
</TABLE>
                            See Notes To Financial Statements.
<PAGE> 3

                                         SYNTHETECH, INC.

                                          BALANCE SHEETS
                                     -------------------------
                                            (continued)


<TABLE>
<CAPTION>
<S>                                            <C>              <C>
                                                  (unaudited)
                                                  December 31,      March 31,
                                                     1999             1999
--------------------------------------            ------------     -----------
  LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------

Current Liabilities:
  Current portion of note payable                 $    15,000     $    15,000
  Accounts payable                                    671,000       1,543,000
  Accrued compensation                                106,000         375,000
  Deferred revenue                                     44,000          44,000
  Accrued income taxes                                      -         561,000
  Other accrued liabilities                            13,000          17,000
                                                    ---------       ---------
    Total Current Liabilities                         849,000       2,555,000

Deferred Income Taxes                                 496,000         496,000

Note Payable, net of current portion                  141,000         152,000

Shareholders' Equity:
  Common stock, $.001 par value; authorized
   100,000,000 shares; issued and outstanding,
   14,256,000 and 14,252,000 shares                    14,000          14,000
  Paid-in capital                                   8,747,000       8,740,000
  Deferred  compensation                              (36,000)        (76,000)
  Retained earnings                                15,907,000      14,349,000
                                                   ----------      ----------
    Total Shareholders' Equity                     24,632,000      23,027,000
                                                   ----------      ----------
    Total Liabilities And Shareholders' Equity   $ 26,118,000    $ 26,230,000
                                                 ============    ============
</TABLE>
                          See Notes To Financial Statements.
<PAGE> 4

                                SYNTHETECH, INC.

                           STATEMENTS OF OPERATIONS
                     -------------------------------------
                                (unaudited)
<TABLE>
<CAPTION>
<S>                         <C>              <C>       <C>             <C>
                             For the Three Months        For the Nine Months
                               Ended December 31           Ended December 31,
                             1999           1998         1999           1998
-----------------------    ----------    ----------   -----------   ----------
Revenues                 $  1,503,000  $  6,047,000  $  9,509,000 $ 15,502,000
Cost of Sales               1,368,000     3,624,000     6,002,000    9,166,000
                         ------------  ------------  ------------ ------------
Gross Profit                  135,000     2,423,000     3,507,000    6,336,000

Research and development       87,000        71,000       335,000      228,000
Selling, general and
  administrative              291,000       373,000       923,000    1,111,000
                         ------------  ------------  ------------ ------------
Operating Expense             378,000       444,000     1,258,000    1,339,000
                         ------------  ------------  ------------ ------------
Operating Income (Loss)      (243,000)    1,979,000     2,249,000    4,997,000
Other Income, net              99,000        69,000       275,000      199,000
Interest Expense               (4,000)       (4,000)      (11,000)     (12,000)
                         ------------  ------------  ------------ ------------
Income (Loss) Before
  Income Taxes               (148,000)    2,044,000     2,513,000    5,184,000

Provision (Benefit)
  For Income Taxes            (56,000)      777,000       955,000    1,970,000
                         ------------  ------------  ------------ ------------
Net Income (Loss)        $    (92,000) $  1,267,000  $  1,558,000 $  3,214,000
                         ============= ============  ============ ============

Basic Earnings (Loss)
  Per Common Share            $ (0.01)      $  0.09       $  0.11      $  0.23
                              ========      =======       =======      =======
Diluted Earnings (Loss)
  Per Common Share            $ (0.01)      $  0.09       $  0.11      $  0.23
                              ========      =======       =======      =======
</TABLE>
                        See Notes To Financial Statements.
<PAGE> 5

                                   SYNTHETECH, INC.

                               STATEMENTS OF CASH FLOWS
                      ----------------------------------------------
                                     (unaudited)
<TABLE>
<CAPTION>
<S>                                               <C>            <C>

For the Nine Month Period Ended December 31           1999           1998
-------------------------------------------         ---------     ---------
Cash Flows From Operating Activities:
Net income                                        $ 1,558,000    $ 3,214,000
Adjustments to reconcile net income to
  net cash provided by operating activities:
      Depreciation, amortization and other          1,180,000        957,000
      Amortization of deferred compensation            33,000         85,000
      (Gain) Loss on disposal of property,
        plant and equipment                            (2,000)         1,000

    (Increase) decrease in assets:
      Accounts receivable, net                      2,602,000       (894,000)
      Inventories                                    (537,000)      (300,000)
      Prepaid expenses                                (78,000)       (36,000)
      Income tax receivable                          (132,000)             -
      Other assets                                     (5,000)        18,000
    Increase (decrease) in liabilities:
      Accounts payable and accrued liabilities     (1,706,000)        87,000
      Deferred revenue                                      -       (203,000)
                                                  -----------   ------------
       Net cash provided by operating activities    2,913,000      2,929,000
                                                  -----------   ------------
Cash Flows From Investing Activities:
   Property, plant and equipment purchases         (2,629,000)    (1,652,000)
                                                  -----------   ------------
       Net cash used in investing activities       (2,629,000)    (1,652,000)
                                                  -----------   ------------
Cash Flows From Financing Activities:
   Principal payments under long-term debt
     obligations                                      (11,000)      (11,000)
   Proceeds from stock option exercises and
     disqualifying dispositions                        14,000       135,000
                                                  -----------   -----------
        Net cash provided by financing activities       3,000       124,000
                                                  -----------   -----------
Net Increase In Cash And Cash Equivalents             287,000     1,401,000

Cash And Cash Equivalents At The Beginning Of
  Period                                            7,470,000     4,976,000
                                                  -----------   -----------
Cash And Cash Equivalents At End Of Period        $ 7,757,000   $ 6,377,000
                                                  ===========   ===========

Non-Cash Investing Activities:
Issuance of stock options at below fair value     $     4,000   $    57,000
Mature shares exchanged for the exercise of
  stock options                                   $         -   $   231,000

</TABLE>
                            See Notes To Financial Statements.
<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 fiscal 1999 Form 10-K.

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  during  each quarter.  For those inventories  not  counted
during  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 December 31:

          Cash Paid
          ---------
<TABLE>
<CAPTION>
<S>                   <C>         <C>             <C>           <C>
                               Three Months               Nine Months
                               ------------               -----------
                           1999         1998           1999          1998
                           ----         ----           ----          ----
      Income Taxes    $    66,000   $ 1,360,000    $ 1,637,000   $ 2,216,000
      Interest        $     4,000   $     4,000    $    11,000   $    12,000
</TABLE>

<PAGE> 7



                NOTES TO FINANCIAL STATEMENTS (continued)

NOTE C. EARNINGS PER SHARE

Basic  earnings per share (EPS) 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.  The following  is
a  reconciliation  of the shares used to calculate  basic  earnings  per
share and diluted earnings per share:

<TABLE>
<CAPTION>
<S>                             <C>       <C>          <C>       <C>
                                     For the Three           For the Nine
                                     Months Ended            Months Ended
                                     December 31,            December 31,
                                   ----------------         ---------------
                                  1999         1998         1999        1998
                                  ----         ----         ----        ----
Weighted average shares
  outstanding for Basic EPS   14,255,347   14,207,622   14,254,035  14,189,698

Dilutive effect of
  common stock options
  issuable under
  treasury stock method                -       82,733       47,703      90,905
                              ----------   ----------   ----------  ----------
Weighted average common
  and common equivalent
  shares outstanding for
  Diluted EPS                 14,255,347   14,290,355   14,301,738  14,280,603
                              ==========   ==========   ==========  ==========
</TABLE>
The following common stock equivalents were excluded from the earnings
per share computation because their effect would have been anti-dilutive:

<TABLE>
<CAPTION>
<S>                           <C>       <C>          <C>      <C>
                                  For the Three        For the Nine
                                   Months Ended         Months Ended
                                   December 31,         December 31,
                                  -------------        ---------------
                                 1999      1998         1999      1998
                                 ----      ----         ----      ----
Common stock options
  outstanding                   777,813   593,800      523,800   593,800

</TABLE>

<PAGE> 8

          NOTES TO FINANCIAL STATEMENTS (continued)


NEW ACCOUNTING PRONOUNCEMENT

In  June  1999,  the  FASB  issued  Statement  of  Financial  Accounting
Standards  No. 137, "Accounting for Derivative Instruments  and  Hedging
Activities"  ("SFAS  137").  SFAS 137 is an amendment  to  Statement  of
Financial  Accounting  Standards  No. 133,  "Accounting  for  Derivative
Instruments  and  Hedging Activities".  SFAS 137 establishes  accounting
and  reporting standards for all derivative instruments.   SFAS  137  is
effective  for  fiscal years beginning after June 15, 2000.   Synthetech
does  not  currently have any derivative instruments  and,  accordingly,
does  not  expect  the adoption of SFAS 137 to have  an  impact  on  its
financial position or results of operations.

<PAGE> 9


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


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 Operations.

                               Percentage of Revenues
                               ----------------------

<TABLE>
<CAPTION>
<S>                         <C>        <C>           <C>          <C>
                             For the Three Months     For the Nine Months
                              Ended December 31,       Ended December 31,
                              1999        1998         1999         1998
-------------------           ----        ----         ----         ----

Revenues                     100.0 %     100.0 %       100.0 %      100.0 %
Cost of Sales                 91.0        59.9          63.1         59.1
                             -----       -----         -----        -----
Gross Profit                   9.0        40.1          36.9         40.9

Research and development       5.8         1.2           3.5          1.5
Selling, general and
  administrative              19.4         6.2           9.7          7.2
                             -----       -----         -----        -----
Operating Expense             25.2         7.4          13.2          8.7
                             -----       -----         -----        -----
Operating Income (Loss)      (16.2)       32.7          23.7         32.2
Other Income, net              6.6         1.1           2.8          1.3
Interest Expense             ( 0.3)          -         ( 0.1)       ( 0.1)
                             -----       -----         -----        -----
Income (Loss) Before
  Income Taxes               ( 9.9)       33.8          26.4         33.4

Provision (Benefit) For
  Income Taxes               ( 3.7)       12.8          10.0         12.7
                             -----       -----         -----        -----
Net Income (Loss)            ( 6.2) %     21.0 %        16.4 %       20.7 %
                             ======      =====         =====        =====
</TABLE>


Revenues
--------
Revenues  decreased  by 75% to $1.50 million in  the  third  quarter  of
fiscal  2000  from $6.05 million in the third quarter  of  fiscal  1999.
Revenues were $9.51 million in the first nine months of fiscal  2000,  a
39% decrease from revenues of $15.50 million in the first nine months of
fiscal  1999.  International sales, mainly to Europe, were $664,000  and
$6.22 million in the third quarter and first nine months of fiscal 2000,
respectively,  as  compared to $1.59 million and $3.65  million  in  the
third quarter and first nine months of fiscal 1999, respectively.

<PAGE> 10

The  decrease in revenues in the third quarter and first nine months  of
fiscal 2000 from the same period of fiscal 1999 primarily resulted  from
reduced  revenues  from  large-scale orders, the unpredictable  ordering
cycles  inherent  in drug development projects and  the  timing  of  the
Company's  product shipments.  The Company expects that the results  for
the  fourth  quarter  ending March 31, 2000 will continue  to  be  under
pressure,  though  likely  some  improvement  from  the  third  quarter.
Nevertheless,  the  Company  continues  to  believe  that  it  is   well
positioned  and  its  prospects remain bright.  It recently  received  a
large-scale Peptide Building Block (PBB) order ($3.6 million) for a drug
in  clinical trials.  The Company has been involved in this project  for
the  past couple of years from early drug development stages.  Since the
Company anticipates that the timing of production and shipments for this
order  will  be spread over the fourth quarter of fiscal  2000  and  the
first  half  of  fiscal  2001, this order alone  will  not  resolve  the
Company's  near  term  revenue challenges.  The  Company,  however,  has
several  other promising projects in the pipeline.  While  the  progress
and  timing  of  these projects remains outside the  Company's  control,
there  are  a  number of different combinations with  the  potential  to
generate substantial future revenues.  (See "Industry Factors" below.)


Gross Profit
------------
Gross  profit decreased to $135,000 in the third quarter of fiscal  2000
from $2.42 million in the third quarter of fiscal 1999.  As a percent of
sales, gross profit decreased to 9% in the third quarter of fiscal  2000
from 40% for the same period last year.  Gross profit decreased to $3.51
million  in the first nine months of fiscal 2000 from $6.34 million  for
the  same period of fiscal 1999.  As a percentage of sales, gross profit
decreased  to 37% in the first nine months of fiscal 2000  from  41%  of
revenues for the same period of fiscal 1999.

The  substantially lower gross profit margins for the third  quarter  of
fiscal 2000 as compared to the same quarter in fiscal 1999 resulted from
the  low  level of revenues in the third quarter of fiscal 2000.   While
the  gross  profit margins for the first nine months of fiscal  2000  as
compared  to  the same period in fiscal 1999 are lower,  it  is  not  as
pronounced as the third quarter since the decline in revenue in the nine
month  period was less precipitous.  There was a 75% decrease in revenue
in  the third quarter of fiscal 2000 as compared to the third quarter of
fiscal  1999,  and the decrease in revenue in the first nine  months  of
fiscal  2000 as compared to the similar period in fiscal 1999  was  39%.
Revenue  in  general and large-scale orders in particular  significantly
impact the Company's margins.  For example, during the third quarter  of
fiscal  2000,  revenues from large-scale PBB orders  represented  0%  of
total  revenues for the period compared to 67% of revenues for the  same
period  in  fiscal 1999.  During the first nine months of  fiscal  2000,
revenues  from large-scale PBB orders represented 35% of total  revenues
for the period compared to 60% of revenues for the same period in fiscal
1999.

<PAGE> 11

Operating Expenses
------------------
Research and development (R&D) expenses were $87,000 and $335,000 in the
third  quarter  and the first nine months of fiscal 2000,  respectively,
compared to $71,000 and $228,000 in the third quarter and the first nine
months  of  fiscal 1999, respectively.  As a percentage  of  sales,  R&D
expenses increased to 6% in the third quarter of fiscal 2000 from 1%  in
the  same  period of fiscal 1999 and increased to 4% in the  first  nine
months  of  fiscal 2000 as compared to 2% in the first  nine  months  of
fiscal  1999.   These  increases  were primarily  due  to  increases  in
staffing and associated expenses.

Selling,  general  and  administrative  (SG&A)  expenses  decreased   to
$291,000 and $923,000 in the third quarter and the first nine months  of
fiscal 2000, respectively, from $373,000 and $1.11 million in the  third
quarter  and  the  first nine months of fiscal 1999,  respectively.  The
decreases  in  SG&A  expenses in the third quarter and  the  first  nine
months  of  fiscal 2000 as compared to the same periods of  fiscal  1999
primarily  reflected a reduction in the size of the bonus pool,  and  of
certain compensation expenses related to the granting of a non-qualified
stock  option,  and  of  payments made  pursuant  to  a  termination  of
employment. As a percentage of sales, SG&A expenses increased to 19%  in
the  third quarter of fiscal 2000 as compared to 6% in the third quarter
of  fiscal 1999, and increased to 10% in the first nine months of fiscal
2000  as  compared  to  7%  in  the same period  of  fiscal  1999.   The
percentage  increase in the third quarter of fiscal 2000 as compared  to
the  third  quarter of fiscal 1999 was primarily attributable  to  lower
revenues.


Operating Income (Loss)
-----------------------
The  Company had an operating loss of $243,000 or 16% of revenues in the
third  quarter  of  fiscal 2000 compared to operating  income  of  $1.98
million or 33% of revenues in the same period last year.  For the  first
nine  months of fiscal 2000 operating income decreased to $2.25  million
or  24% of revenues compared with $5.00 million or 32% in the first nine
months of fiscal 1999.  The significant decrease in operating income for
the  third  quarter and first nine months of fiscal 2000  reflected  the
substantial decrease in revenues from the prior periods.


Other Income, net
-----------------
The  net  other income of $99,000 for the third quarter of  fiscal  2000
included  $94,000 of interest earnings and a $5,000 gain on disposal  of
fixed assets.  The net other income of $275,000 in the first nine months
of  fiscal 2000 included $273,000 of interest earnings and a $2,000  net
gain  on  disposal of fixed assets.  The $69,000 and $199,000 net  other
income  in  the third quarter and the first nine months of fiscal  1999,
respectively, came primarily from interest earnings.

<PAGE> 12

Interest  expense in the third quarter and first nine months  of  fiscal
2000 were $4,000 and $11,000, respectively, and were $4,000 and $12,000,
respectively, in the third quarter and first nine months of fiscal 1999.


Net Income (Loss)
-----------------
In  the  third  quarter of fiscal 2000 the Company lost $148,000  before
income  taxes  and in the first nine months of fiscal 2000 earned  $2.51
million  before income taxes.  A reduction in the provision  for  income
taxes  of $56,000 resulted in a net loss of $92,000 in the third quarter
of  fiscal 2000 and a provision for income taxes of $955,000 resulted in
net income of $1.56 million in the first nine months of fiscal 2000.



INDUSTRY FACTORS

The   market  for  PBBs  is  driven  by  the  market  for  synthetically
manufactured peptide, peptidomimetic small molecule and other  drugs  in
which  they  are  incorporated. The drug development process  for  these
drugs  is dictated by the marketplace, drug companies and the regulatory
environment.  The  Company has no control over the pace  of  these  drug
development efforts, which drugs get selected for clinical trials, which
drugs are approved by the FDA and, even if approved, the ultimate market
potential of such drugs.

The  three  stages  of  the drug development process  include:   R&D  or
discovery   stage,  clinical  trial  stage  and  marketed  drug   stage.
Synthetech's  customers can spend years researching and  developing  new
drugs,  taking only a small percentage to clinical trials and fewer  yet
to  commercial market. A substantial amount of the activity continues to
occur  at  the  earlier stages of research and development and  clinical
trials.  The market for peptide and peptidomimetic small molecule  drugs
is still very early in development.

Recurring  sales of PBBs for development programs is sporadic  at  best.
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. Accordingly, the
level  of  purchasing  by  the  Company's customers  for  specific  drug
development  programs varies substantially from quarter to  quarter  and
the  Company  cannot  rely on any one customer as a constant  source  of
revenue.

The  size  of  the  PBB orders for marketed drugs can  be  substantially
larger  than those for the discovery or clinical trial stages. Sales  of
PBBs  for  marketed drugs can also provide an opportunity for continuing
longer-term sales. While not subject to the same high cancellation  rate
faced  by  discovery and clinical trial stage drug development programs,
the  demand  for  the approved drugs, however, remains subject  to  many
uncertainties, including, without limitation, the drug price,  the  drug
side  effects and the existence of other competing drugs. These factors,
which  are outside of the control of the Company, will affect the  level
of demand for the drug itself and, therefore, the demand for PBBs. Also,
industry  cost pressures can cause pharmaceutical companies  to  explore

<PAGE> 13

and,  as  was  the case with one of the fiscal 1999 large-scale  orders,
ultimately  adopt  alternative  manufacturing  processes  which  do  not
include the Company's PBBs as an intermediate. Finally, with the longer-
term, larger-scale orders, the Company expects increased competition  to
supply these PBBs.

Accordingly, these industry factors create an inability for the  Company
to  predict  future  demand beyond its current  order  base.  Until  the
Company  develops a stable baseload of demand, the Company is likely  to
continue   to  experience  significant  fluctuations  in  its  quarterly
results.


LIQUIDITY AND CAPITAL RESOURCES

At  December 31, 1999, the Company had working capital of $12.25 million
compared  to $12.11 million at March 31, 1999.  The Company's  cash  and
cash  equivalents  at  December 31, 1999  totaled  $7.76  million.   The
Company  does  not  invest in derivative securities.  In  addition,  the
Company  had  a $1 million unsecured bank line of credit of which  there
was no amount outstanding at December 31, 1999.

The  decrease  in accounts receivable to $812,000 at December  31,  1999
from  $3.41  million  at March 31, 1999 reflected  the  lower  level  of
revenues during the third quarter. The increase of income tax receivable
to  $132,000  at  December 31, 1999 from $0 at March 31,  1999  and  the
reduction  of  accrued  income taxes to $0 at  December  31,  1999  from
$561,000  at March 31, 1999 reflected payments of estimated taxes.   The
increase in inventories to $3.90 million at December 31, 1999 from $3.36
million  at  March 31, 1999 principally reflected the manufacturing  and
stocking  of  certain products for future sale and, to a lesser  extent,
the  restocking of raw materials.  The decrease in accounts  payable  to
$671,000  at  December 31, 1999 from $1.54 million  at  March  31,  1999
reflected  the timing of expenditure commitments related to the  second-
phase  of  the plant expansion and the timing of raw material purchases.
The  decrease in accrued compensation to $106,000 at December  31,  1999
from  $375,000 at March 31, 1999 primarily reflected accrued  bonus  and
related compensation paid during the first quarter.

The  Company  had  approximately $2.63 million of  capital  expenditures
during the first nine months of fiscal 2000.  Approximately $352,000 was
spent  for  equipment and equipment upgrades in the existing  plant  and
$2.28 million was spent for the second-phase of the new plant expansion.
The  Company anticipates total capital expenditures for fiscal 2000  for
the  existing plant to be $452,000 and for the second-phase of  the  new
plant  expansion to be $2.88 million for a total of $3.33 million.   The
Company expects to finance these capital expenditures from internal cash
flow  and  does  not  anticipate the need for any  new  debt  or  equity
financing.

<PAGE> 14

YEAR 2000

The  Year  2000  ("Y2K") issue arose as the result of existing  computer
programs  that use only the last two digits to refer to a year.  Any  of
the  Company's computer programs that have date-sensitive  software  may
recognize a date using "00" as the year 1900 rather than the year  2000.
If  not  corrected,  many computer applications  could  fail  or  create
erroneous results.

The  Company established a Y2K team lead by its Chief Financial Officer.
The  team completed its assessment of the Company's information  systems
which  support  business  applications. The  Company  utilizes  packaged
application  strategies  for these information  systems  functions.  The
Company  believes that these information system components  are  current
with  all  Y2K  updates and changes recommended by  the  vendors.  These
information  systems  include  enterprise software,  operating  systems,
networking  components, application and data servers,  PC  hardware  and
core  office automation software. The team also completed its assessment
of  the Company's research and development, manufacturing processes  and
facility management systems. The Company believes that these systems and
components  are current with all Y2K updates and changes recommended  by
the  vendors. The Company also completed its survey of key suppliers and
customers to determine the level of their Y2K readiness.

Due  to  the nature and size of its operations and its Y2K efforts,  the
Company  did  not develop any contingency plans other than  to  identify
second  sources  for any of its key suppliers who could not  advise  the
Company that they were Y2K compliant.

To  date, the Company is unaware of any significant Y2K issues affecting
it, its key suppliers or customers.

The  Company's information technology expenditures for fiscal 1999  were
$90,000,  of  which  approximately 22%  related  to  the  Company's  Y2K
program.  These expenses were paid out of revenues from operations.   In
connection  with  its responsibility to undertake  a  Y2K  program,  the
Company  hired  an outside consultant to provide limited advice  to  the
Company's Y2K team and Board of Directors on the Company's Y2K  program.
The  Company  also  hired  another  outside  consultant  to  assist  the
Company's Y2K team in developing and running certain Y2K on-site testing
protocols.  The Company has incurred expenditures of $18,000  for  these
consultants.

The  failure  to  correct  a material Y2K problem  could  result  in  an
interruption in, or a failure of, certain normal business activities  or
operations.  While such failures could materially and  adversely  affect
the  Company's results of operations, liquidity and financial condition,
the  Company  believes implementation of its plan  has  been  successful
after  the first key rollover date occurred on December 31, 1999.  Other
key  dates associated with potential Y2K problems will occur in the next
few  months  and are also expected to be uneventful and,  provided  that
third  parties  mitigate  their  own  risks  successfully,  the  Company
believes  it  will have no material business risk from such Y2K  issues.

<PAGE> 15

However,  there can be no assurances that third parties, over which  the
Company has no control, will successfully address their own Y2K issues.

               ________________________________


This Form 10-Q  includes  "forward-looking" information (as defined in
Section 27A of the Securities Act of 1933 and Section  21E  of  the
Securities Exchange Act of 1934).   Investors  are cautioned   that
forward-looking   statements   involve   risks    and uncertainties, and
various factors could cause actual results to  differ materially  from
those  in  the forward-looking  statements.   Forward-looking  statements
include, without limitation, any statement that  may predict,  forecast,
indicate or imply future  results,  performance  or achievements,   and
may  contain  the  words  "believe,"  "anticipate," "expect," "estimate,"
"project," "will be," "will continue," "will likely result," or words or
phrases  of similar meanings.  The risks and uncertainties include,  but
are  not  limited to, the following:  the uncertain market for products,
customer   concentration,  potential  quarterly  revenue   fluctuations,
industry  cost  factors,  competition,  government  regulation,  product
liability  risks, technological change, increased costs associated  with
the Company's facility expansions, international business risks, and Y2K
risks.   Investors  are  directed  to the  Company's  filings  with  the
Securities  and Exchange Commission, including the Company's  Form  10-K
for  the fiscal year ended March 31, 1999, which are available from  the
Company  without  charge, for a further description  of  the  risks  and
uncertainties related to forward-looking statements made by the  Company
as well as to other aspects of the Company's business.

<PAGE> 16

                       PART II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

       3(i)1   Articles of Incorporation of Synthetech, Inc., as amended.

       3(ii)2  Bylaws of Synthetech, Inc., as amended.

      27       Financial Data Schedule
__________________
      1  Incorporated by reference herein from the Company's Form 10-KSB
          for the year ended March 31, 1997.
      2  Incorporated by reference herein from the Company's Form 10-Q
          for the quarter ended June 30, 1999.

(b)  Reports
     No reports on Form 8-K were filed during the quarter.


<PAGE> 17
                               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:  February 10, 2000                /s/  M. Sreenivasan
                                        M. Sreenivasan
                                        President & C.E.O.



Date:  February 10, 2000                /s/  Charles  B. Williams
                                        Charles B. Williams
                                        Vice President, Finance
                                        and Administration, C.F.O.,
                                        Chief Accounting Officer