<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, 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 November 10,  1999  was
14,254,630.

<PAGE> 2

                     PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements



                             SYNTHETECH, INC.

                              BALANCE SHEETS
                         -------------------------
<TABLE>
<CAPTION>
<S>                                      <C>                <C>
                                             (unaudited)
                                             September 30,       March 31,
                                                 1999              1999
------------                                -------------      -----------
  ASSETS
------------

CURRENT ASSETS:
  Cash and cash equivalents                  $  7,574,000      $  7,470,000
  Accounts receivable, less allowance
   for doubtful accounts of $15,000 for
   both periods                                  2,326,000        3,414,000
  Income tax receivable                             10,000                -
  Inventories                                    3,242,000        3,359,000
  Prepaid expenses                                 395,000          284,000
  Deferred income taxes                            133,000          133,000
  Other current assets                              10,000            5,000
                                               -----------      -----------
    TOTAL CURRENT ASSETS                        13,690,000       14,665,000

  PROPERTY, PLANT AND EQUIPMENT, at cost, net   12,408,000       11,561,000

  OTHER ASSETS                                       4,000            4,000
                                               -----------      -----------
    TOTAL ASSETS                              $ 26,102,000     $ 26,230,000
                                              ============    =============

                     See Notes To Financial Statements.
</TABLE>
<PAGE> 3

                             SYNTHETECH, INC.

                              BALANCE SHEET
                         -------------------------
                               (continued)
<TABLE>
<CAPTION>
<S>                                                 <C>           <C>
                                                   (unaudited)
                                                  September 30,  March 31,
                                                      1999         1999
------------------------------------------        -------------  ----------
  LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------------

CURRENT LIABILITIES:
  Current portion of note payable                $     14,000    $     15,000
  Accounts payable                                    552,000       1,543,000
  Accrued compensation                                 96,000         375,000
  Deferred revenue                                     81,000          44,000
  Accrued income taxes                                      -         561,000
  Other accrued liabilities                             6,000          17,000
                                                  -----------     -----------
    TOTAL CURRENT LIABILITIES                         749,000       2,555,000

DEFERRED INCOME TAXES                                 496,000         496,000

NOTE PAYABLE, net of current portion                  145,000         152,000

SHAREHOLDERS' EQUITY:
  Common stock, $.001 par value;
   authorized 100,000,000 shares;
   issued and outstanding, 14,255,000
   and 14,252,000 shares                               14,000          14,000
  Paid-in capital                                   8,746,000       8,740,000
  Deferred  compensation                              (47,000)        (76,000)
  Retained earnings                                15,999,000      14,349,000
                                                  -----------     -----------
    TOTAL SHAREHOLDERS' EQUITY                     24,712,000      23,027,000
                                                  -----------     -----------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 26,102,000    $ 26,230,000
                                                 ============    ============

                   See Notes To Financial Statements.
</TABLE>
<PAGE>4

                             SYNTHETECH, INC.

                           STATEMENTS OF INCOME
                   --------------------------------------
                               (unaudited)
<TABLE>
<CAPTION>
<S>                                    <C>        <C>             <C>          <C>
                                      For the Three Months Ended   For the Six Months Ended
                                           September 30,                  September 30,
                                         1999          1998           1999           1998
---------------------               ------------  ------------    ------------   ---------                                  --
REVENUES                             $ 3,370,000   $ 5,327,000     $ 8,006,000  $ 9,455,000
COST OF SALES                          2,005,000     3,007,000       4,634,000    5,542,000
                                    ------------  ------------    ------------  -----------
GROSS PROFIT                           1,365,000     2,320,000       3,372,000    3,913,000

RESEARCH AND DEVELOPMENT                 121,000        76,000         248,000      157,000
SELLING, GENERAL AND ADMINISTRATIVE      289,000       383,000         632,000      738,000
                                    ------------  ------------    ------------  -----------
OPERATING EXPENSE                        410,000       459,000         880,000      895,000
                                    ------------  ------------    ------------  -----------
OPERATING INCOME                         955,000     1,861,000       2,492,000    3,018,000
OTHER INCOME, net                         85,000        63,000         169,000      122,000
                                    ------------  ------------    ------------  -----------
INCOME BEFORE INCOME TAXES             1,040,000     1,924,000       2,661,000    3,140,000

PROVISION FOR INCOME TAXES               395,000       731,000       1,011,000    1,193,000
                                    ------------  ------------    ------------  ------------
NET INCOME                           $   645,000   $ 1,193,000     $ 1,650,000  $ 1,947,000
                                     ===========   ===========     ===========  ============

BASIC EARNINGS PER COMMON SHARE            $0.05         $0.08           $0.12        $0.14
                                           =====         =====           =====        =====
DILUTED EARNINGS PER COMMON SHARE          $0.05         $0.08           $0.12        $0.14
                                           =====         =====           =====        =====

                      See Notes To Financial Statements.
</TABLE>
<PAGE>5


                             SYNTHETECH, INC.

                         STATEMENTS OF CASH FLOWS
                    -----------------------------------
                              (unaudited)
<TABLE>
<CAPTION>
<S>                                                   <C>          <C>
For the Six Month Period Ended September 30              1999         1998
-------------------------------------------          -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                           $ 1,650,000   $ 1,947,000
Adjustments to reconcile net income to
 net cash provided by operating activities:
      Depreciation, amortization and other               785,000       583,000
      Amortization of deferred compensation               23,000        54,000
      Loss on disposal of property, plant
       and equipment                                       3,000             -

    (Increase) decrease in assets:
      Accounts receivable, net                         1,088,000      (410,000)
      Inventories                                        117,000      (449,000)
      Prepaid expenses                                  (111,000)        6,000
      Other assets                                       (15,000)        9,000

    Increase (decrease) in liabilities:
      Accounts payable and accrued liabilities        (1,843,000)      424,000
      Deferred revenue                                    37,000      (201,000)
                                                     -----------    ----------
        Net cash provided by operating activities      1,734,000     1,963,000
                                                     -----------    ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property, plant and equipment purchases            (1,633,000)     (641,000)
                                                     -----------    ----------
        Net cash used by investing activities         (1,633,000)     (641,000)
                                                     -----------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments under long-term
    debt obligations                                      (8,000)       (7,000)
   Proceeds from stock option exercises
    and disqualifying dispositions                        11,000         7,000
                                                     -----------    ----------
        Net cash provided by financing activities          3,000             -
                                                     -----------    ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS                104,000     1,322,000

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       7,470,000     4,976,000
                                                     -----------    ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD           $ 7,574,000   $ 6,298,000
                                                     ===========   ===========
NON-CASH INVESTING ACTIVITIES:
Issuance of stock options at below fair value        $     4,000   $    38,000
Mature shares exchanged for the exercise
 of stock options                                    $         -   $   231,000

                         See Notes To Financial Statements.
</TABLE>
<PAGE>6






                NOTES TO FINANCIAL STATEMENTS

NOTE A.   GENERAL AND BUSINESS


The  summary financial statements included herein have  been
prepared,   without  audit,  pursuant  to  the   rules   and
regulations  of  the  Securities  and  Exchange  Commission.
Certain   information  and  footnote  disclosures   normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed
or  omitted pursuant to such rules and regulations, although
Synthetech  management  believes that  the  disclosures  are
adequate  to  make the information presented not misleading.
It  is suggested that these summary financial statements  be
read  in  conjunction with the financial statements and  the
notes thereto included in Synthetech's 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 September 30:

<TABLE>
<CAPTION>
<S>                        <C>       <C>             <C>          <C>
          Cash Paid
          ---------
                                 Three Months                Six Months
                              1999         1998           1999        1998
                              ----         ----           ----        ----
      Income Taxes        $ 1,082,000   $  841,000    $ 1,572,000   $  856,000
      Interest            $     4,000   $    4,000    $     7,000   $    8,000

</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 Months      For the Six Months
                                       Ended September 30,     Ended September 30,

                                      1999        1998         1999         1998
                                      ----        ----         ----         ----
     Weighted average shares
      outstanding for Basic EPS    14,254,630   14,201,171   14,253,376  14,180,688

     Dilutive effect of
      common stock options
      issuable under
      treasury stock method            51,566       86,039       59,507      91,928
                                   ----------   ----------   ----------  ----------
     Weighted average common
      and common equivalent
      shares outstanding for
      Diluted EPS                  14,306,196   14,287,210   14,312,883  14,272,616
                                   ==========   ==========   ==========  ==========
</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 Months     For the Six Months
                                 Ended September 30,      Ended September 30,

                                  1999      1998          1999       1998
                                  ----      ----          ----       ----
      Common stock options
       outstanding               523,800   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 Income.

                              Percentage of Revenues
                           ----------------------------
<TABLE>
<CAPTION>
<S>                            <C>        <C>           <C>       <C>
                                For the Three Months    For For the Six Months
                                 Ended September 30,      Ended September 30,
                                  1999       1998          1999      1998
-------------------------         ----       ----          ----      ----

Revenues                         100.0 %    100.0 %       100.0 %   100.0 %
Cost of sales                     59.5       56.4          57.9      58.6
                                ------     ------        ------    ------
Gross Profit                      40.5       43.6          42.1      41.4

Research and Development           3.6        1.4           3.1       1.7
Selling, General and
 Administration                    8.6        7.2           7.9       7.8
                                ------     ------        ------    ------
Operating Expense                 12.2        8.6          11.0       9.5

Operating Income                  28.3       35.0          31.1      31.9
Other Income                       2.5        1.2           2.1       1.3
                                ------     ------        ------    ------
Income Before Income Taxes        30.8       36.2          33.2      33.2
Provision For Income Taxes        11.7       13.7          12.6      12.6
                                ------     ------        ------    ------
Net Income                        19.1 %     22.5 %        20.6 %    20.6 %
                                ======     ======        ======    ======
</TABLE>



Revenues
--------
Revenues  decreased by 37% to $3.37 million  in  the  second
quarter  of  fiscal 2000 from $5.33 million  in  the  second
quarter of fiscal 1999.  Revenues were $8.01 million for the
first  half of fiscal 2000, a 15% decrease from revenues  of
$9.46   million   in  the  first  half   of   fiscal   1999.
International  sales, mainly to Europe, were  $2.55  million
and  $5.56 million for the second quarter and first half  of
fiscal 2000, respectively, as compared to $799,000 and $2.06
million  for  the second quarter and first  half  of  fiscal
1999, respectively.

<PAGE>10

The  decrease in revenues for the second quarter  and  first
half  of  fiscal  2000 from the same period of  fiscal  1999
primarily  resulted from reduced revenues  from  large-scale
orders.  The  Company  expects the revenues  for  the  third
fiscal quarter will continue to be under pressure due to the
lack  of  near  term  large-scale orders.   In  addition,  a
delivery  delay  of  a raw material will  likely  shift  the
completion  of  a significant order into the  fourth  fiscal
quarter.   As  a  result,  the  Company  expects  that   the
operating results for the third fiscal quarter may be around
a  break-even level.  Nevertheless, Synthetech  has  several
promising  projects in the pipeline that  could  become  the
drivers  for  future growth.  Depending on the progress  and
timing  of  these projects, 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 $1.37  million  in  the  second
quarter  of  fiscal 2000 from $2.32 million  in  the  second
quarter of fiscal 1999.  As a percent of sales, gross profit
decreased  to 41% in the second quarter of fiscal 2000  from
44%  for  the same period last year.  Gross profit decreased
to $3.37 million in the first half of fiscal 2000 from $3.91
million  for  that  same  period  of  fiscal  1999.   As   a
percentage  of sales, gross profit increased to 42%  in  the
first half of fiscal 2000  from 41% of revenues for the same
period of fiscal 1999.

The  lower  gross profit margins for the second  quarter  of
fiscal  2000 as compared to the same quarter in fiscal  1999
resulted  primarily from the lower level of  revenues.  This
downward  pressure  was  somewhat offset  by  higher  margin
product mix produced in the second quarter of fiscal 2000 as
compared  to the same quarter in fiscal 1999. Revenues  from
large-scale  Peptide Building Block (PBB)  orders  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. During the second quarter and
the first half of fiscal 2000, revenues from large-scale PBB
orders  represented  16%  and 42%,  respectively,  of  total
revenue  for the periods compared to 58% and 56% of revenues
for the same periods of fiscal 1999.

The  relatively similar gross profit margins for  the  first
half of fiscal 2000 as compared to the same period in fiscal
1999  represents a combination of factors netting each other
out,  including  a  weak gross profit margin  in  the  first
quarter  of fiscal 1999 when the Company had not yet reached
a  higher  manufacturing efficiency for a large-scale  order
and the factors discussed above.



Operating Expenses
------------------
Research  and  development (R&D) expenses were $121,000  and
$248,000  in  the second quarter and first  half  of  fiscal
2000, respectively, compared to $76,000 and $157,000 in  the
second  quarter and first half of fiscal 1999, respectively.
As  a percentage of sales, R&D expenses increased to 3.6% in
the  second  quarter of fiscal 2000 from 1.4%  in  the  same
period  of  fiscal 1999 and increased to 3.1% for the  first
half of fiscal 2000 as compared to 1.7% in the first half of
fiscal   1999.   These  increases  were  primarily  due   to
increases  in staffing and associated expenses and  a  lower
portion  of the R&D group effort being allocated to  product
manufacturing.

<PAGE> 10

SG&A  expenses  decreased to $289,000 and  $632,000  in  the
second  quarter and first half of fiscal 2000, respectively,
from  $383,000 and $738,000 in the second quarter and  first
half  of  fiscal 1999, respectively. The decreases  in  SG&A
expenses  for  the second quarter and first half  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 8.6% in  the
second  quarter of fiscal 2000 as compared to  7.2%  in  the
second quarter of fiscal 1999, and increased to 7.9% for the
first  half of fiscal 2000 as compared to 7.8% in  the  same
period  of fiscal 1999.  The increase in the second  quarter
of  fiscal 2000 as compared to the second quarter of  fiscal
1999 was primarily attributable to lower revenues.

Operating Income
----------------
Operating income decreased to $955,000 or 28% of revenues in
the  second quarter of fiscal 2000 from $1.86 million or 35%
for the same period last year.  For the first half of fiscal
2000  operating income decreased to $2.49 million or 31%  of
revenues  compared with $3.02 million or 32% for  the  first
half  of fiscal 1999.  The significant decrease in operating
income for the second quarter and first half of fiscal  2000
reflected  the  substantial decrease in  revenues  from  the
prior periods.

Other Income
------------
The  net  other income of $85,000 for the second quarter  of
fiscal 2000 included $92,000 of interest earnings, $4,000 of
interest  expense  and a $3,000 loss on  disposal  of  fixed
assets.   The  net other income of $169,000 for  the  second
half  of fiscal 2000 included $179,000 of interest earnings,
$7,000 of interest expense and a $3,000 loss on disposal  of
fixed assets.  The $63,000 and $122,000 net other income  in
the   second   quarter  and  first  half  of  fiscal   1999,
respectively,  came  primarily from  interest  earnings  and
$8,000 and $4,000 of interest expense, respectively.

Net Income
----------
For  the  second quarter and first half of fiscal 2000,  the
Company  earned  $1.04  million, and  $2.66  million  before
income taxes, respectively.  A provision for income taxes of
$395,000  resulted in net income of $645,000 for the  second
quarter  and  a provision for income taxes of $1.01  million
resulted  in net income of $1.65 million for the first  half
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.

<PAGE>12

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
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  September 30, 1999, the Company had working  capital  of
$12.94 million compared to $12.11 million at March 31, 1999.
The  Company's  cash and cash equivalents at  September  30,
1999 totaled $7.57 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, 1999.

The  decrease  in  accounts receivable to $2.33  million  at
September  30,  1999 from $3.41 million at  March  31,  1999
reflected  the  lower level of revenues  during  the  second
quarter.   The decrease in accounts payable to  $552,000  at
September  30,  1999 from $1.54 million at  March  31,  1999
reflected  reduced expenditure commitments  related  to  the
second-phase of the plant expansion and reduced raw material
purchases.  The decrease in accrued compensation to  $96,000
at  September  30,  1999 from $375,000  at  March  31,  1999
primarily  reflected accrued bonus and related  compensation
paid  during  the first quarter.  The reduction  of  accrued
income  taxes to $0 at September 30, 1999 from  $561,000  at
March 31, 1999 reflected payments of estimated taxes.

<PAGE>13

The  Company  had  approximately $1.63  million  of  capital
expenditures  during the first six months  of  fiscal  2000.
Approximately $282,000 was spent for equipment and equipment
upgrades  in the existing plant and $1.35 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 $1.3 million and for  the
second-phase  of the new plant expansion to be $2.2  million
for a total of $3.5 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.


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 lead by  its  Chief
Financial Officer. 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.  These information systems include  enterprise
software,    operating   systems,   networking   components,
application  and data servers, PC hardware and  core  office
automation  software.  The  team  has  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 is undertaking a  Y2K  supplier  and
customer  assessment  program.  It  is  in  the  process  of
completing  its  survey of key suppliers  and  customers  to
determine the level of their Y2K readiness.

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  has
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  has   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.

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 issue. 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

<PAGE>14

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 issue, 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 issue. 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.

Due  to  the nature and size of its operations and  its  Y2K
efforts to date described above, the Company does not intend
to  develop  any  contingency plans other than  to  identify
second  sources for any of its key vendors who cannot advise
the Company that they will be Y2K compliant.

               _______________________

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>15

PART II - OTHER INFORMATION

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

     The Company held its Annual Meeting of Shareholders on July 23, 1999.
At that meeting, the following Directors were elected  by the Shareholders:

Election of Directors
<TABLE>
<CAPTION>
<S>                                                <C>            <C>
     Class/Name                                    Votes For   Votes Withheld
     ----------
     Class II Directors (term expiring in 2002):
     Edward M. Giles                               7,473,029        44,830
     Charles B. Williams                           7,472,729        45,130
</TABLE>
Continuing Directors

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

     Class III Directors (term expiring in 2000):
     Howard L. Farkas
     Donald E. Kuhla, Ph.D.
     M.   ("Sreeni") Sreenivasan

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>16

                         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 10, 1999       /s/ M.Sreenivasan
                                     M. Sreenivasan
                                     President & C.E.O.



Date:    November 10, 1999       /s/ Charles B. Williams
                                     Charles B. Williams
                                     Vice President, Finance
                                     and Administration, C.F.O.,
                                     Chief Accounting Officer


<PAGE>