<PAGE>


                              
             SECURITIES AND EXCHANGE COMMISSION
                              
                   Washington, D.C.  20549
                              
                         FORM 10-Q/A
                       Amendment No. 1
                              


(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, 1998

                             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  6,  1998  was
14,203,383.

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In connection with Synthetech, Inc.'s Form 10Q for the
quarter ended September 30, 1998, "Part I, Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations Business" is hereby amended and
restated in its entirety as follows:


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 Income.


                                                                              
                                    Percentage of Revenues
                                                                               
                           For the Three Months      For the Six Months
                            Ended September 30,      Ended September 30,
                              1998      1997          1998        1997
----------------------       ------    ------        ------      ------
                                                                              
Revenues                     100.0 %    100.0 %       100.0 %     100.0 %
Cost of sales                 56.4       57.7          58.6        53.3      
                             -----      -----         -----       -----
Gross Profit                  43.6       42.3          41.4        46.7      
                                                                               
Research and Development       1.4        3.5           1.7         3.8      
Selling, General and             
 Administration                7.2       21.5           7.8        20.5
                             -----      -----         -----       -----
Operating Expense              8.6       25.0           9.5        24.3      
                                                                              
Operating Income              35.0       17.3          31.9        22.4      
Other Income                   1.2        5.0           1.3         5.3
                             -----      -----         -----       -----
                                                                              
Income Before Income Taxes    36.2       22.3          33.2        27.7      
Provision For Income Taxes    13.7        7.7          12.6        10.1
                             -----      -----         -----       -----
Net Income                    22.5 %     14.6 %        20.6 %      17.6 %
                             =====      =====         =====       =====


Revenues
--------
Revenues  increased by 257% to $5.33 million in  the  second
quarter  of  fiscal 1999 from $1.49 million  in  the  second
quarter of fiscal 1998.  Revenues were $9.46 million for the
first half of fiscal 1999, a 218% increase from revenues  of
$2.97   million   in  the  first  half   of   fiscal   1998.
International sales, mainly to Western Europe, were $799,000
and  $2.06 million for the second quarter and first half  of
fiscal  1999  as  compared  to $417,000  million  and  $1.19
million  for  the second quarter and first  half  of  fiscal
1998.

<PAGE>

The  increase in revenues for the second quarter  and  first
half  of  fiscal 1999 over the same periods of  fiscal  1998
principally  reflected the $3.08 million and  $5.31  million
revenue contribution, respectively, of shipments from large-
scale  Peptide Building Block ("PBB") orders to be  used  in
two  marketed  drugs.  The  Company  has  recently  received
additional orders for these two PBBs of nearly $10  million.
With  these  additional orders, the Company has  orders  for
these  two  large-scale  PBBs  totaling  $11.8  million  for
periodic  deliveries expected to be completed by the  Summer
of  1999.   Accordingly,  the  Company  expects  large-scale
orders to continue to provide a substantial contribution  to
revenue for the balance of fiscal 1999.

Although  PBB sales associated with marketed drugs are  more
likely to provide a longer term, ongoing revenue stream than
sales  associated  with drugs at the discovery  or  clinical
stage,  continuation  of  customer  demand  for  these  PBBs
associated  with marketed drugs remains subject  to  various
market  conditions, including potential use  of  alternative
manufacturing  routes, competition from other  suppliers  of
PBBs and continued market demand for the drug.  For example,
one  of  the large-scale PBB customers referenced above  has
advised  the  Company that it is researching the feasibility
of an alternative lower-cost manufacturing route involving a
different PBB than the one currently being sold to  it.   At
this   time,   the  Company  does  not  know  whether   this
alternative  manufacturing  route  will  be  feasible.   The
Company's customer has advised the Company that, even if the
alternative route is selected, the customer will continue to
purchase  and  take delivery of the $9.2 million  of  orders
that  it  has  already placed with Synthetech.  Accordingly,
while  large-scale  orders for marketed  drugs  can  provide
significant and predictable revenues for the duration of the
orders,  there  continues  to be  a  significant  risk  that
revenues   can  fluctuate  from  period  to  period.    (See
"Industry Factors" below.)

Gross Profit
------------
Gross  profit  increased  to $2.32  million  in  the  second
quarter  of fiscal 1999 from $630,000 in the second  quarter
of  fiscal  1998.   As  a  percent of  sales,  gross  profit
increased  to 44% in the second quarter of fiscal 1999  from
42%  for  the same period last year.  Gross profit increased
to  $3.91  million or 41% of revenues in the first  half  of
fiscal  1999 from $1.39 million or 47% of revenues  for  the
same period of fiscal 1998.

The gross profit margins for the second quarter and the
first half of fiscal 1999 resulted primarily from the mix of
products.  Revenues from large-scale PBB orders during the
second quarter and the first half of fiscal 1999 represented
58% and 56%, respectively, of total revenue for the periods.
While large-scale orders for marketed drugs can provide
significant revenues for the duration of the orders, they
typically generate a lower gross profit margin than the sale
of smaller quantities of the same PBB product during the
drug discovery and clinical stages.  The Company, however,
continuously seeks to improve the gross profit margins of
large-scale orders through process improvements and
operating efficiencies.

<PAGE>

While there were no significant large-scale PBB sales during
the  second  quarter  or  first half  of  fiscal  1998,  the
relatively  low  gross profit margins during  these  periods
resulted principally from a low level of revenues occasioned
by  the  timing of orders.  To a lesser extent, the  mix  of
products  also  affected gross profit margins  during  these
periods.

Operating Expenses
------------------
Research  and  development (R&D) and  selling,  general  and
administrative (SG&A) expenses were $459,000  in the  second
quarter  of  fiscal 1999 compared to $373,000 in the  second
quarter  of fiscal 1998.  As a percentage of sales, R&D  and
SG&A  expenses  decreased to 9% in  the  second  quarter  of
fiscal  1999 from 25% in the same period of fiscal 1998  due
to  the  higher  level of revenues.  R&D and  SG&A  expenses
increased to $895,000 in the first half of fiscal 1999  from
$723,000 in fiscal 1998.  As a percentage of sales, R&D  and
SG&A  expenses decreased to 10% in the first half of  fiscal
1999  from 24% in the same period of fiscal 1998 due to  the
higher level of revenues.  The increases in R&D expense  for
the  second quarter and first half of fiscal 1999  reflected
increases  in  staffing  and  staffing  compensation.    The
increases  in SG&A expense for the second quarter and  first
half  of  fiscal  1999  principally reflected  increases  in
staffing compensation and related payments.

Operating Income
----------------
Operating  income  increased to  $1.86  million  or  35%  of
revenues  in the second quarter of fiscal 1999 from $257,000
or 17% for the same period last year.  For the first half of
fiscal  1999 operating income increased to $3.02 million  or
32%  of revenues compared with $664,000 or 22% for the first
half  of fiscal 1998.  The significant increase in operating
income for the second quarter and first half of fiscal  1999
reflected  the substantial increase in revenues  over  prior
periods.

Other Income
------------
The  net  other income of $63,000 for the second quarter  of
fiscal 1999 included $68,000 of interest earnings and $4,000
of  interest expense.  The net other income of $122,000  for
the second half of fiscal 1999 included $132,000 of interest
earnings  and $8,000 of interest expense.  The  $75,000  and
$158,000  net other income in the second quarter  and  first
half  of  fiscal  1998, respectively,  came  primarily  from
interest earnings.

Net Income
----------
For  the  second quarter and first half of fiscal 1999,  the
Company  earned  $1.92  million, and  $3.14  million  before
income taxes, respectively.  A provision for income taxes of
$731,000  resulted in net income of $1.19  million  for  the
second  quarter  and a provision for income taxes  of  $1.19
million  resulted  in net income of $1.95  million  for  the
first half of fiscal 1999.  The Company's effective tax rate
for  the first half of fiscal 1999 was 38% and for the first
half  of  fiscal 1998 was 36.5% reflecting a  one  time  tax
credit legislated by the State of  Oregon.

<PAGE>

INDUSTRY FACTORS

The   market   for  PBBs  is  driven  by  the   market   for
synthetically manufactured peptide-based drugs in which they
are  incorporated.  The drug development process  for  these
peptide-based  drugs  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
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.   In spite of the two  large-scale  orders
received  by  the  Company in fiscal 1998,  the  market  for
peptide-based drugs is still very early in development.

While  the Company has recorded substantial annual sales  of
PBBs  for  discovery  and clinical trial stage  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.

While  the Company has been selling PBBs for marketed  drugs
for  several  years,  these sales represented  a  relatively
small  portion  of total revenue.  With the two  large-scale
orders  received  in  fiscal 1998 for PBBs  to  be  used  in
marketed   drugs,  revenues  of  PBBs  for  marketed   drugs
represent  a  significant portion of total revenue  for  the
first  time  in the Company's history.  Sales  of  PBBs  for
marketed drugs provide an opportunity for continuing longer-
term  sales.   Moreover,  the size of  the  PBB  orders  for
marketed  drugs can be substantially larger than  those  for
the  discovery or clinical trial stages.  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   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,
with  the  longer-term,  larger-scale  orders,  the  Company
expects  increased  competition to supply  these  PBBs,  and
industry   cost  pressures  can  also  cause  pharmaceutical
companies    to   investigate   alternative    manufacturing
processes which may not include PBBs as an intermediate.

Large-scale   PBB   orders  for  use   in   marketed   drugs
significantly  increases  the  size  and  the  term  of  the
Company's  current  order  base.  Also,  the  likelihood  of
recurring revenue from reorders is significantly higher  for
PBBs  used  in  marketed  drugs.   Nevertheless,  since  the
Company's  revenues are composed of PBB sales in  all  three
drug  development stages, and since even sales of  PBBs  for
marketed drugs are subject to cancellation or reduction, the
Company is likely to continue to experience significant

<PAGE>

fluctuations  in  its quarterly results.   Accordingly,  the
Company continues to lack a stable baseload of demand and an
ability  to  predict future demand beyond its current  order
base.


LIQUIDITY AND CAPITAL RESOURCES

At  September 30, 1998, the Company had working  capital  of
$10.18 million compared to $8.24 million at March 31,  1998.
The  Company's  cash and cash equivalents at  September  30,
1998 totaled $6.30 million.  In addition, the Company had  a
$1  million bank line of credit of which there was no amount
outstanding at September 30, 1998.

The  increase in cash and cash equivalents to $6.30  million
at  September 30, 1998 from $4.98 million at March 31,  1998
reflected  the  higher level of sales for the  period.   The
increase   in  accounts  receivable  to  $1.88  million   at
September  30,  1998 from $1.47 million at  March  31,  1998
reflected  the timing of shipments during the quarter.   The
increase of inventory to $3.63 million at September 30, 1998
from $3.18 million at March 31, 1998 primarily resulted from
restocking raw materials.

The   Company   had   approximately  $641,000   of   capital
expenditures   during  the  first  half  of   fiscal   1999.
Approximately $279,000 was spent for equipment and equipment
upgrades  in the existing plant and $362,000 was  spent  for
the  second  phase of the new plant expansion.  The  Company
anticipates total capital expenditures for fiscal  1999  for
the existing plant to be $1 million and for the second phase
of the new plant expansion to be $3.2 million for a total of
$4.2  million.  Although the Company expects to be  able  to
finance these capital expenditures from internal cash  flow,
it  is  also  considering whether bank or similar  financing
would be preferable.


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  has established a Y2K team consisting  of  its
Chief  Financial Officer and an associate from  the  Finance
and  Administration  Group.   The  team  has  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,  except   for   its
manufacturing/accounting  software  package.   The   Company
intends  to  install  a  Y2K  compliant  upgrade  for   this
manufacturing/accounting software package no later than  the
end  of  fiscal  1999.   These information  systems  include
enterprise    software,   operating   systems,    networking
components,  application and data servers, PC  hardware  and
core  office automation software.  The Company's  assessment
of  research  and development, manufacturing  processes  and
facility  management systems is underway and is expected  to
be  substantially completed by the end of fiscal 1999.   The
Company has no reason to

<PAGE>

believe  that  it  would not be able  to  complete  any  Y2K
compliant upgrades or replacements associated with  research
and   development,  manufacturing  processes   or   facility
management systems by the Summer of 1999.

The Company has begun a Y2K supplier and customer assessment
program.   It is in the process of contacting key  suppliers
and  customers by questionnaire to determine  the  level  of
their  Y2K  readiness.  This assessment program  is  in  its
early  stages  and does not have a return  rate  useful  for
determining their level of Y2K readiness.

The  Company's information technology budget for fiscal 1999
is  $82,000, of which approximately 40% is allocated for the
Company's Y2K program.  These expenses will be paid  out  of
revenues  from operations.  In fiscal 1999, the Company  has
already  spent $9,000 and anticipates spending an additional
$10,000  for  computer hardware and software  Y2K  compliant
upgrades  or  replacements.  In  addition,  the  Company  is
currently  considering  hiring a consultant  to  assist  the
Company in running Y2K compliance tests and the Company  has
budgeted $15,000 for this effort.

Like  all  businesses,  the Company will  be  at  risk  from
external  infrastructure failures that could arise from  Y2K
failures.   It is not clear that electrical power, telephone
and computer networks, for example, will be fully functional
across  the  nation  in  the year 2000.   Investigation  and
assessment of infrastructures, like the nations' power grid,
is beyond the scope and resources of the Company.  Investors
should use their own awareness of the issues in the nations'
infrastructure   to   make   ongoing   infrastructure   risk
assessments  and  their  potential  impact  to  a  company's
performance.

It  should also be noted that there have been predictions of
failures   of   key   components   in   the   transportation
infrastructure due to the Y2K problem.  It is possible  that
there  could  be  delays  in  rail,  over-the-road  and  air
shipments due to failure in transportation control  systems.
Investigation  and validation of the world's  transportation
infrastructure is beyond the scope and the resources of  the
Company.  Investors should use their own  awareness  of  the
issues  in  the  nations'  infrastructure  to  make  ongoing
infrastructure  risk assessments and their potential  impact
to a company's performance.

The  failure to correct a material Y2K problem could  result
in  an  interruption  in, or a failure  of,  certain  normal
business  activities  or operations.   Such  failures  could
materially  and  adversely affect the Company's  results  of
operations, liquidity and financial condition.  Due  to  the
general  uncertainty inherent in the Y2K problem,  resulting
in  part from the uncertainty of the Y2K readiness of third-
party  suppliers  and customers, the Company  is  unable  to
determine  at  this  time whether the  consequences  of  Y2K
failures  will  have  a  material impact  on  the  Company's
results  of  operations, liquidity or  financial  condition.
The  Company's  efforts to help ensure Y2K preparedness  are
expected  to  significantly reduce the  Company's  level  of
uncertainty  about  the Y2K problem.  The  Company  believes
that, with completion of the above-mentioned system upgrades
and testing, the possibility of significant interruptions of
normal operations should be reduced.

The  Company  has not developed any worst-case scenarios  or
contingency  plans  in  regard  to  its  internal   systems,
supplier/customer  issues  or  any  of   the   more   global
infrastructure issues.  The Company is considering  whether,
and  to what extent, to develop such scenarios or plans  and
expects  to  have made a decision no later than the  end  of
fiscal 1999.

                              

<PAGE>

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  following factors, 
among others, could cause actual results to  differ from 
those indicated in the forward-looking statements:  the 
uncertain   market  for  products,  customer  concentration, 
potential  quarterly  revenue fluctuations,  the  impact  of
competitive  products and pricing, the impact of  government
regulation,  product  liability risks, technological  change
and  increased costs associated with the Company's  facility
expansions.  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,
1998,  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>

                         SIGNATURES



Pursuant to the requirements of the Securities Exchange  Act
of 1934, the registrant has duly caused this amendment to be
signed  on  its  behalf  by the undersigned  thereunto  duly
authorized.



                                        SYNTHETECH, INC.
                                        (Registrant)


Date:   December 23, 1998             /s/Charles B. Williams
                                      Charles B. Williams
                                      Vice  President of Finance
                                      and Administration, C.F.O.,
                                      Chief Accounting Officer,
                                      Secretary and Treasurer