<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 September 30, 2000

                               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 November 1, 2000 was 14,276,641.


<PAGE> 2

                          PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

<TABLE>
<CAPTION>
<S>                                             <C>             <C>

                                  SYNTHETECH, INC.

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

                                                (unaudited)
                                                September 30,    March 31,
                                                    2000           2000
-----------------------------------------       -------------   -----------

 ASSETS
 ------

CURRENT ASSETS:
  Cash and cash equivalents                      $ 7,182,000     $ 6,404,000
  Accounts receivable, less allowance
    for doubtful accounts of $15,000 for
    both periods                                     430,000       2,433,000
  Income tax receivable                              676,000         137,000
  Inventories                                      4,356,000       4,112,000
  Prepaid expenses                                   225,000         285,000
  Deferred income taxes                              140,000         140,000
  Other current assets                                 1,000          31,000
                                                 -----------     -----------
   TOTAL CURRENT ASSETS                           13,010,000      13,542,000

PROPERTY, PLANT AND EQUIPMENT, at cost, net       13,006,000      13,375,000
                                                 -----------     -----------
   TOTAL ASSETS                                  $26,016,000     $26,917,000
                                                 ===========     ===========

The accompanying notes are an integral part of these financial statements.
</TABLE>

<PAGE> 3

<TABLE>
<CAPTION>
<S>                                            <C>                <C>

                                  SYNTHETECH, INC.

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

                                                 (unaudited)
                                                September 30,     March 31,
                                                     2000           2000
----------------------------------------------  ------------     -----------
  LIABILITIES AND SHAREHOLDERS' EQUITY
----------------------------------------------

CURRENT LIABILITIES:
  Current portion of note payable               $     16,000    $     17,000
  Accounts payable                                   319,000         547,000
  Accrued compensation                               105,000         109,000
  Deferred revenue                                    44,000         544,000
  Other accrued liabilities                            7,000          25,000
                                                ------------     -----------
   TOTAL CURRENT LIABILITIES                         491,000       1,242,000

DEFERRED INCOME TAXES                                482,000         482,000

NOTE PAYABLE, net of current portion                 128,000         135,000

SHAREHOLDERS' EQUITY:
  Common stock, $.001 par value; authorized
   100,000,000 shares; issued and outstanding,
   14,277,000 shares for both periods                 14,000          14,000
  Paid-in capital                                  8,803,000       8,793,000
  Deferred  compensation                             (37,000)        (40,000)
  Retained earnings                               16,135,000      16,291,000
                                                 -----------     -----------
   TOTAL SHAREHOLDERS' EQUITY                     24,915,000      25,058,000
                                                 -----------     -----------
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $26,016,000     $26,917,000
                                                 ===========     ===========

The accompanying notes are an integral part of these financial statements.
</TABLE>

<PAGE> 4
<TABLE>
<CAPTION>
<S>                                   <C>            <C>             <C>           <C>

                                 SYNTHETECH, INC.

                              STATEMENTS OF OPERATIONS
                              ------------------------
                                    (unaudited)

                                          For the Three Months Ended   For the Six Months Ended
                                                 September 30,               September 30,
                                              2000          1999          2000          1999
--------------------------------------    -----------   -----------   -----------   -----------                            -
REVENUES                                  $ 1,082,000   $ 3,370,000   $ 3,780,000   $ 8,006,000
COST OF SALES                               1,491,000     2,005,000     3,229,000     4,634,000
                                          -----------   -----------   -----------   -----------
GROSS PROFIT (LOSS)                          (409,000)    1,365,000       551,000     3,372,000


RESEARCH AND DEVELOPMENT                      131,000       121,000       226,000       248,000
SELLING, GENERAL AND ADMINISTRATIVE           322,000       289,000       679,000       632,000
                                          -----------   -----------    ----------   -----------
OPERATING EXPENSE                             453,000       410,000       905,000       880,000
                                          -----------   -----------    ----------   -----------
OPERATING INCOME (LOSS)                      (862,000)      955,000      (354,000)    2,492,000
OTHER INCOME, net                             115,000        89,000       108,000       176,000
INTEREST EXPENSE                               (3,000)       (4,000)       (6,000)       (7,000)
                                          -----------   -----------    ----------   -----------
INCOME (LOSS) BEFORE INCOME TAXES            (750,000)    1,040,000      (252,000)    2,661,000

PROVISION (BENEFIT) FOR INCOME TAXES         (285,000)      395,000       (96,000)    1,011,000
                                          -----------   -----------    ----------   -----------
NET INCOME (LOSS)                         $  (465,000)  $   645,000    $ (156,000)  $ 1,650,000
                                          ===========   ===========    ==========   ===========

BASIC EARNINGS (LOSS) PER COMMON SHARE         ($0.03)        $0.05        ($0.01)        $0.12
                                                =====         =====         =====         =====

DILUTED EARNINGS (LOSS) PER COMMON SHARE       ($0.03)        $0.05        ($0.01)        $0.12
                                                =====         =====         =====         =====

The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
<S>                                                   <C>              <C>
                                  SYNTHETECH, INC.

                              STATEMENTS OF CASH FLOWS
                             --------------------------
                                    (unaudited)

For the Six Month Period Ended September 30               2000          1999
----------------------------------------------         ----------    ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                      $  (156,000)  $ 1,650,000
Adjustments to reconcile net income (loss) to
  net cash provided by operating activities:
      Depreciation, amortization and other               1,327,000       785,000
      Amortization of deferred compensation                 14,000        23,000
      Loss on disposal of property, plant and equipment          -         3,000
      Proceeds from stock option exercises and
       disqualifying dispositions                                -        11,000

    (Increase) decrease in assets:
      Accounts receivable, net                           2,003,000     1,088,000
      Inventories                                         (244,000)      117,000
      Prepaid expenses                                      60,000      (111,000)
      Income tax receivable                               (539,000)            -
      Other assets                                          30,000       (15,000)

    Increase (decrease) in liabilities:
      Accounts payable and accrued liabilities            (250,000)   (1,843,000)
      Deferred revenue                                    (500,000)       37,000
                                                       -----------   -----------
        Net cash provided by operating activities        1,745,000     1,745,000
                                                       -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Property, plant and equipment purchases, net           (959,000)   (1,633,000)
                                                       -----------   -----------
        Net cash used in investing activities             (959,000)   (1,633,000)
                                                       -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments under long-term debt obligations      (8,000)       (8,000)
                                                       -----------   -----------
        Net cash used in financing activities               (8,000)       (8,000)
                                                       -----------   -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS                  778,000       104,000

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       $ 6,404,000   $ 7,470,000
                                                       -----------   -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD             $ 7,182,000   $ 7,574,000
                                                       ===========   ===========
NON-CASH INVESTING ACTIVITIES:
Issuance of stock options at below fair value          $    11,000   $     4,000

The accompanying notes are an integral part of these 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 fiscal 2000  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 inventory  items  are
cycle  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

<TABLE>
<CAPTION>
<S>                     <C>            <C>           <C>          <C>

     Supplemental cash flow disclosures for the six month period ended
           September 30:

          Cash Paid
          ---------
                                 Three Months                Six Months
                                 ------------                ----------
                              2000          1999          2000         1999
                              ----          ----          ----         ----
      Income Taxes        $   389,000   $ 1,082,000   $   443,000  $ 1,572,000
      Interest            $     3,000   $     4,000   $     6,000  $     7,000

</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 Six
                                 Months Ended              Months Ended
                                 September 30,             September 30,
                                 -------------             -------------
                                2000        1999          2000        1999
                                ----        ----          ----        ----
Weighted average shares
outstanding for Basic EPS    14,276,641  14,254,630    14,276,641   14,253,376

Dilutive effect of
common stock options
issuable under
treasury stock method                 -      51,566             -       59,507
                            -----------  ----------    ----------   ----------
Weighted average common
and common equivalent
shares outstanding for
Diluted EPS                 14,276,641   14,306,196    14,276,641   14,312,883
                            ==========   ==========    ==========   ==========

The following common stock equivalents were excluded from the
earnings per share computation because their effect would have
been anti-dilutive:

                                 For the Three              For the Six
                                 Months Ended               Months Ended
                                 September 30,              September 30,
                                 -------------              -------------
                               2000        1999           2000        1999
                               ----        ----           ----        ----
Common stock options
 outstanding                   700,666     523,800        702,858      523,800

</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.  The Company 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.

<TABLE>
<CAPTION>
<S>                              <C>            <C>         <C>           <C>

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

                                   For the Tree Months     For the Six Months
                                   Ended September 30,     Ended September 30,

                                      2000       1999         2000       1999
-----------------------------         ----       ----         ----       ----
Revenues                              100.0   %  100.0 %      100.0 %    100.0 %
Cost of sales                         137.8       59.5         85.4       57.9
                                     ------     ------       ------     ------
Gross Profit (Loss)                   (37.8)      40.5         14.6       42.1

Research and Development               12.1        3.6          6.0        3.1
Selling, General and
Administration                         29.8        8.6         18.0        7.9
                                     ------     ------       ------     ------
Operating Expense                      41.9       12.2         24.0       11.0

Operating Income (Loss)               (79.7)      28.3         (9.4)      31.1
Other Income                           10.6        2.6          2.9        2.2
Interest Expense                       (0.3)      (0.1)        (0.2)      (0.1)
                                     ------     ------       ------     ------
Income (Loss) Before Income Taxes     (69.4)      30.8         (6.7)      33.2

Provision (Benefit) For Income Taxes  (26.3)      11.7         (2.5)      12.6
                                     ------     ------       ------     ------
Net Income (Loss)                     (43.1) %    19.1 %       (4.2) %    20.6 %
                                     =======    =======      =======    =======
</TABLE>



Revenues
--------

Revenues decreased by 68% to $1.08 million in the second  quarter
of fiscal 2001 from $3.37 million in the second quarter of fiscal
2000.   Revenue  in  the second quarter of fiscal  2001  included
$282,000  related  to  closure fees associated  with  one  order.
Revenues were $3.78 million for the first half of fiscal 2001,  a
53% decrease from revenues of $8.01 million in the first half  of
fiscal 2000.  International sales were $385,000 and $712,000  for
the  second  quarter and first half of fiscal 2001, respectively,
as  compared  to $2.55 million and $5.56 million for  the  second
quarter and first half of fiscal 2000, respectively.  These sales
were mainly to Europe in the first half of fiscal 2001 and mainly
to Europe and Mexico in the first half of fiscal 2000.

<PAGE> 10

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

The  decrease in revenues for the second quarter of  fiscal  2001
from   the   second   quarter  of  fiscal  2000   reflected   the
unpredictable  ordering  cycles  inherent  in  drug   development
projects.   In  addition,  the Company did  not  complete  a  new
$300,000  pilot project on schedule due to unexpected  processing
delays,  resulting  in a shift of this revenue  from  the  second
quarter  of fiscal 2001 to the third quarter of fiscal 2001.  The
decrease  in revenues for the first half of fiscal 2001 from  the
first  half of fiscal 2000 reflected the absence of revenue  from
large  scale orders, as well as the unpredictable ordering cycles
inherent  in  drug development projects.  Looking  ahead  to  the
second  half  of  fiscal 2001, the Company is encouraged  by  the
recent  receipt  of over $2 million of new orders,  with  one  of
these  projects likely to require additional amounts during  this
fiscal  year.    The Company also continues to be a  supplier  of
PBBs   for  several  other  pharmaceutical  development  projects
advancing  through clinical trials and these projects could  have
substantial future business potential.  There are, however,  many
factors   affecting  the  success  of  all  drug   projects   and
Synthetech's involvement.  (See "Industry Factors" below.)

The  Company's strong balance sheet has allowed it to weather the
current  level of business without hindering long-term  strategic
direction.   Synthetech  continues to  invest  in  the  necessary
infrastructure and organizational resources.  (See "Liquidity and
Capital Resources" below.)


Gross Profit (Loss)
-------------------

Cost  of  sales for the second quarter of fiscal 2001  was  $1.49
million,  resulting  in  a gross loss  of  $409,000.   While  the
Company's  pricing strategy incorporates a gross  profit  margin,
the  low  level of revenue for the second quarter of fiscal  2001
caused  a negative gross profit since cost of sales includes  all
labor,  facility and similar expenses incurred by  the  Company's
manufacturing  department  during  the  period-not   just   those
expenses   directly  allocated  to  manufacturing  the  Company's
products  sold during the period.  By comparison, a significantly
higher  level  of revenue for the second quarter of  fiscal  2000
created  a gross profit of $1.37 million for that quarter.  Gross
profit  for  the first half of fiscal 2001 decreased to  $551,000
from  $3.37  million for that same period of fiscal 2000.   As  a
percentage of sales, gross profit decreased to 15% in  the  first
half  of fiscal 2001 from 42% of revenues for the same period  of
fiscal 2000.

The negative gross profit margin for the second quarter of fiscal
2001  and lower gross profit margin for the first half of  fiscal
2001  as  compared  to the gross profit margins  for  the  second
quarter  and  first half in fiscal 2000 primarily  reflected  the
downward  pressure caused by a lower level of  revenues  and  the
increased manufacturing overhead costs associated with the second
phase expansion of the new plant.


Operating Expenses
------------------

Research  and  development  (R&D)  expenses  were  $131,000   and
$226,000  in  the second quarter and first half of  fiscal  2001,
respectively,  compared to $121,000 and $248,000  in  the  second
quarter  and  first  half  of fiscal 2000,  respectively.   As  a
percentage of sales, R&D expenses increased to 12% in the  second
quarter of fiscal 2001 from 4% in the same period of fiscal  2000
and increased to 6% for the first half fiscal 2001 as compared to
3%  in  the  first half of fiscal 2000. The fluctuations  of  R&D
expenses during the periods principally reflected the absence  or
presence  of one-time costs associated with employee hiring  and,
to a lesser extent, slight variations in employee head count.

<PAGE> 11

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

SG&A  expenses increased to $322,000 and $679,000 in  the  second
quarter  and  first  half  of  fiscal  2001,  respectively,  from
$289,000  and  $632,000 in the second quarter and first  half  of
fiscal  2000,  respectively.  As  a  percentage  of  sales,  SG&A
expenses increased to 30% in the second quarter of fiscal 2001 as
compared  to  9%  in  the  second quarter  of  fiscal  2000,  and
increased to 18% for the first half of fiscal 2001 as compared to
8%  in  the  same  period  of fiscal 2000.   The  increase  as  a
percentage  of  sales in the second quarter  and  first  half  of
fiscal  2001 as compared to the second quarter and first half  of
fiscal 2000 was primarily attributable to lower revenues.



Operating Income (Loss)
-----------------------

Operating  loss  in the second quarter and first half  of  fiscal
2001  was  $862,000  and  $354,000, respectively,  compared  with
operating  income in the second quarter and first half of  fiscal
2000  of $955,000 and $2.49 million, respectively.  The operating
loss  for  the  second  quarter and first  half  of  fiscal  2001
reflected  the  substantial decrease in revenues from  the  prior
periods.


Other Income
------------

Other income in the second quarter and first half of fiscal  2001
was  $115,000 and $108,000, respectively, compared to $89,000 and
$176,000, respectively, for the second quarter and first half  of
fiscal  2000.  Other income in the second quarter of fiscal  2001
primarily reflected interest earnings. Other income in first half
of fiscal 2001 included $215,000 in interest earnings offset by a
$107,000  equipment write down.  The other income in  the  second
quarter  and first half of fiscal 2000, respectively,   primarily
reflected interest earnings.


Net Income (Loss)
-----------------

For  the  second quarter of fiscal 2001, the Company  incurred  a
loss  before income taxes of $750,000.   In light of  this  loss,
the  Company received an income tax benefit of $285,000 for  that
quarter.  This  resulted in a net loss of $465,000 for the second
quarter  of fiscal 2001.  For the first half of fiscal 2001,  the
Company  incurred  a loss before income taxes  of  $252,000.   In
light of this loss, the Company received an income tax benefit of
$96,000 for that period.  This resulted in a net loss of $156,000
for the first half of fiscal 2001.


<PAGE> 12

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


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 and, as was  the  case
with  one of the 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.

<PAGE> 13


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


LIQUIDITY AND CAPITAL RESOURCES

At  September 30, 2000, the Company had working capital of $12.52
million  compared  to  $12.30 million at  March  31,  2000.   The
Company's cash and cash equivalents at September 30, 2000 totaled
$7.18  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
September 30, 2000.

The  decrease in accounts receivable to $430,000 at September 30,
2000  from  $2.43 million at March 31, 2000 reflected  the  lower
level of shipments during the second quarter of fiscal 2001.  The
increase  in  income tax receivable to $676,000 at September  30,
2000  from  $137,000 at March 31, 2000 reflected the tax  benefit
for the second quarter of fiscal 2001.  The increase in inventory
to  $4.36  million  at September 30, 2000 from $4.11  million  at
March 31, 2000 included approximately $400,000 of additional work
in process of certain products being manufactured in anticipation
of  future  orders.  This  increase  was  offset  somewhat  by  a
reduction  in the level of raw materials held in inventory.   The
decrease  in accounts payable to $319,000 at September  30,  2000
from $547,000 at March 31, 2000 primarily reflected the reduction
of  expenditure commitments related to the second  phase  of  the
plant  expansion  and  timing  of raw  material  purchases.   The
decrease  in  deferred revenue to $44,000 at September  30,  2000
from $544,000 at March 31, 2000 resulted from the recognition  of
revenue associated with a $500,000 customer advance payment.

The  Company  had approximately $959,000 of capital  expenditures
during the first half of fiscal 2001 which included $361,000  for
equipment and equipment upgrades in the existing plant,  $390,000
for the second-phase of the new plant expansion, $164,000 for the
R&D  lab remodel design, and $44,000 for preliminary design  work
relating  to  wastewater  treatment  capabilities.   The  Company
anticipates  fiscal 2001 capital expenditures  for  the  existing
plant  and  the completion of the second-phase of the  new  plant
expansion to be $700,000 and $400,000, respectively.  The Company
is  also investing an additional $1.2 million in upgrades to  the
R&D labs.  The completion of the R&D lab remodel is scheduled for
summer  of  2001.   The  Company is  also  considering  investing
roughly  $1 million in on-site wastewater treatment capabilities.
The  Company  expects  to finance all capital  expenditures  from
internal cash flow and does not anticipate the need for  any  new
debt or equity financing.


                  _____________________________


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

<PAGE> 14

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, 2000,  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> 15

              PART II - OTHER INFORMATION

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

<TABLE>
<CAPTION>
<S>   <C>          <C>             <C>          <C>            <C>

      The Company held its Annual Meeting of Shareholders on July
20, 2000.  At that meeting, the following proposals were approved
by the Shareholders:

Proposal #1:  Election of Directors

     Class/Name                                    Votes For    Votes Withheld
     ----------                                    ---------    --------------
     Class III Directors (term expiring in 2003):
     Howard L. Farkas                              12,337,125       496,079
     M.   ("Sreeni") Sreenivasan                   12,353,025       480,179

  Continuing Directors

     Class/Name
     ----------
     Class I Directors (term expiring in 2001):
     Paul C. Ahrens
     Page E. Golsan, III

     Class II Directors (term expiring in 2002):
     Edward M. Giles
     Charles B. Williams

Proposal #2:  Approval of the 2000 Employee Stock Purchase Plan

          For       Against   Abstain   Broker non-vote
          ---       -------   -------   ---------------
      12,539,039    244,483   48,982         10,871

Proposal #3:  Approval of the 2000 Stock Incentive Plan

          For       Against   Abstain   Broker non-vote
          ---       -------   -------   ---------------
      12,026,062    727,193   79,949         10,871

</TABLE>
<PAGE> 16

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 period ended June 30, 2000.


(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:  November 2, 2000            /s/  M. Sreenivasan
                                        M. Sreenivasan
                                        President & C.E.O.



Date:  November  2,   2000        /s/  Charles B. Williams
                                       Charles B. Williams
                                       Vice President, Finance
                                       and Administration, C.F.O.,
                                       Chief Accounting Officer