SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


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

         For the quarterly period ended      September 30, 2001
                                             -------------------

|_|      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 0-28674
                                                -------

                        CADUS PHARMACEUTICAL CORPORATION
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified on its Charter)


           Delaware                                      13-3660391
----------------------------------------   -------------------------------------
(State of Other Jurisdiction of             (I.R.S. Employer Identification No.)
Incorporation or Organization)





  767 Fifth Avenue, New York, New York                     10153
----------------------------------------   -------------------------------------
(Address of Principal Executive Offices)                 (Zip Code)

    Registrant's Telephone Number,
          Including Area Code                          (212) 702-4315
                                           -------------------------------------

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 registrant's common stock, $0.01 par value,  outstanding
as of October 31, 2001 was 13,144,040.

<PAGE>


                        CADUS PHARMACEUTICAL CORPORATION

                                      INDEX

                                                                        PAGE NO.
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS                             3

                    PART I - CONDENSED FINANCIAL INFORMATION

Item 1.  Condensed Financial Statements

         Condensed Balance Sheets - September 30, 2001 (unaudited)
           and December 31, 2000 (audited)                                    4

         Condensed Statements of Income - Three Months and Nine
           Months ended September 30, 2001 and 2000 (unaudited)           5 - 6

         Condensed Statements of Cash Flows - Nine Months Ended
           September 30, 2001 and 2000 (unaudited)                            7

         Notes to Condensed Financial Statements (unaudited)              8 - 9

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                       9 - 12

Item 3.  Quantitative and Qualitative Disclosures About Market Risk          12


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                                   12

Item 2.  Changes in Securities and Use of Proceeds                           12

Item 3.  Defaults Upon Senior Securities                                     12

Item 4.  Submission of Matters to a Vote of Security Holders            12 - 13

Item 5.  Other Information                                                   13

Item 6.  Exhibits and Reports on Form 8-K                                    13

SIGNATURES                                                                   14

EXHIBIT INDEX                                                                15

                                       2
<PAGE>


SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain   statements  in  this   Quarterly   Report  on  Form  10-Q   constitute
"forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. Such forward-looking  statements involve known
and unknown risks,  uncertainties,  and other factors which may cause the actual
results,  performance, or achievements of the Company to be materially different
from any future  results,  performance or  achievements  expressed or implied by
such forward-looking statements.  Factors that could cause or contribute to such
differences  include,  but  are  not  limited  to,  technological  uncertainties
regarding  the  Company's  technologies,  uncertainties  regarding the Company's
future acquisition and in-licensing of technologies, the Company's capital needs
and uncertainty of future funding,  the Company's  history of operating  losses,
the Company's  dependence on proprietary  technology and the unpredictability of
patent protection,  intense  competition in the pharmaceutical and biotechnology
industries,  rapid  technological  development  that may result in the Company's
technologies  becoming  obsolete,  as  well as  other  risks  and  uncertainties
discussed in the Company's prospectus dated July 17, 1996.

                                       3
<PAGE>


                        CADUS PHARMACEUTICAL CORPORATION
                            CONDENSED BALANCE SHEETS

                                     ASSETS

                                                    SEPTEMBER 30,   DECEMBER 31,
                                                        2001           2000
                                                    ------------   ------------
                                                     (Unaudited)     (Audited)
Current assets:
    Cash and cash equivalents                       $ 24,653,120   $ 24,383,352
    Prepaid and other current assets                     125,722         81,250
                                                    ------------   ------------
        Total current assets                          24,778,842     24,464,602

Investment in other ventures                             166,333        162,528
Other assets, net                                      1,010,848      1,081,527
                                                    ------------   ------------
        Total assets                                $ 25,956,023   $ 25,708,657
                                                    ============   ============



LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
    Accrued expenses and other current liabilities  $    151,896   $     36,244
                                                    ------------   ------------
        Total current liabilities                        151,896         36,244
                                                    ------------   ------------
        Total liabilities                                151,896         36,244
                                                    ------------   ------------

Stockholders' equity
    Common stock                                         132,857        132,857
    Additional paid-in capital                        59,844,355     59,844,355
    Accumulated deficit                              (33,873,010)   (34,004,724)
    Treasury stock                                      (300,075)      (300,075)
                                                    ------------   ------------
        Total stockholders' equity                    25,804,127     25,672,413
                                                    ------------   ------------
            Total liabilities and
                stockholders' equity                $ 25,956,023   $ 25,708,657
                                                    ============   ============


           See accompanying notes to condensed financial statements.

                                       4
<PAGE>


                        CADUS PHARMACEUTICAL CORPORATION

                         CONDENSED STATEMENTS OF INCOME
                                   (UNAUDITED)

                                                      Three Months Ended
                                                         September 30,
                                                    2001               2000
                                                 -----------       -----------

License and maintenance fees                     $        --       $    23,470
                                                 -----------       -----------
        Total revenues                                    --            23,470
                                                 -----------       -----------
Costs and expenses:
    General and administrative expenses              163,639           251,701
    (Gain) loss of equity in other ventures           (1,826)          126,418
                                                 -----------       -----------
        Total costs and expenses                     161,813           378,119
                                                 -----------       -----------
Operating loss                                      (161,813)         (354,649)
                                                 -----------       -----------

Other income:
    Interest income                                  185,346            71,394
    Gain on reversal of litigation judgment,
      net of legal fees                                   --        18,841,489
                                                 -----------       -----------
        Total other income                           185,346        18,912,883
                                                 -----------       -----------
Income before income taxes                            23,533        18,558,234
Income taxes                                              --           (16,181)
                                                 -----------       -----------
        Net income                               $    23,533       $18,574,415
                                                 ===========       ===========
Basic and diluted net income per share           $      0.00       $      1.41
                                                 ===========       ===========

Weighted average shares of common stock
  outstanding - basic and diluted                 13,144,040        13,144,040
                                                 ===========       ===========


           See accompanying notes to condensed financial statements.

                                       5
<PAGE>


                        CADUS PHARMACEUTICAL CORPORATION

                         CONDENSED STATEMENTS OF INCOME
                                   (UNAUDITED)

                                                        Nine Months Ended
                                                          September 30,
                                                      2001             2000
                                                  ------------     ------------

License and maintenance fees                      $    100,000     $    723,470
                                                  ------------     ------------
        Total revenues                                 100,000          723,470
                                                  ------------     ------------
Costs and expenses:
    General and administrative expenses                812,547        1,451,793
    (Gain) loss of equity in other ventures             (3,805)         840,656
    (Gain) on sale of equipment                             --         (100,000)
                                                  ------------     ------------
        Total costs and expenses                       808,742        2,192,449
                                                  ------------     ------------
Operating loss                                        (708,742)      (1,468,979)
                                                  ------------     ------------

Other income:
    Interest income                                    714,840          214,735
    Net reimbursement of SIBIA litigation costs        125,616               --
    Gain on reversal of litigation judgment,
      net of legal fees                                     --       18,841,489
                                                  ------------     ------------
        Total other income                             840,456       19,056,224
                                                  ------------     ------------
Income before income taxes                             131,714       17,587,245
Income taxes                                                --          (16,181)
                                                  ------------     ------------
        Net income                                $    131,714     $ 17,603,426
                                                  ============     ============
Basic and diluted net income per share            $       0.01     $       1.34
                                                  ============     ============

Weighted average shares of common stock
  outstanding - basic and diluted                   13,144,040       13,130,140
                                                  ============     ============

           See accompanying notes to condensed financial statements.

                                       6
<PAGE>


                        CADUS PHARMACEUTICAL CORPORATION

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                         Nine Months Ended
                                                           September 30,
                                                       2001            2000
                                                   ------------    ------------

Cash flows from operating activities:
  Net income                                       $    131,714    $ 17,603,426
  Adjustments to reconcile net income to net cash
    provided by operating activities:
    Amortization of patent costs                         60,679          60,679
    (Gain) loss of equity in other ventures              (3,805)        840,656
    (Gain) on sale of equipment                              --        (100,000)
    Amortization of deferred revenue                         --         (23,470)
    Reserve for litigation damages                           --         776,058
  Changes in assets and liabilities:
    Decrease in due from officer and director                --         294,636
    Increase in prepaid and other assets                (34,472)       (106,531)
    Decrease in accounts payable                             --         (17,644)
    Increase in accrued expenses and other
    current liabilities                                 115,652         941,383
                                                   ------------    ------------
Net cash provided by operating activities               269,768      20,269,193
                                                   ------------    ------------
Cash flows from investing activities:
  Increase in restricted cash                                --        (762,492)
  Proceeds from sale of equipment                            --         100,000
                                                   ------------    ------------
Net cash used in investing activities                        --        (662,492)
                                                   ------------    ------------
Cash flows from financing activities:
  Proceeds from issuance of common stock upon
  exercise of stock options                                  --         155,660
                                                   ------------    ------------
Net cash provided by financing activities                    --         155,660
                                                   ------------    ------------
Net increase in cash and cash equivalents               269,768      19,762,361
Cash and cash equivalents - beginning of period      24,383,352       5,082,212
                                                   ------------    ------------
Cash and cash equivalents - end of period          $ 24,653,120    $ 24,844,573
                                                   ============    ============


           See accompanying notes to condensed financial statements.

                                       7
<PAGE>


                        CADUS PHARMACEUTICAL CORPORATION

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                               SEPTEMBER 30, 2001

Note - 1   ORGANIZATION AND BASIS OF PREPARATION

           The information  presented as of September 30, 2001 and for the three
           and nine month  periods then ended,  is  unaudited,  but includes all
           adjustments  (consisting only of normal recurring  accruals) that the
           Company's   management   believes  to  be  necessary   for  the  fair
           presentation   of  results   for  the  periods   presented.   Certain
           information and footnote  disclosures  normally included in financial
           statements   prepared  in  accordance  with   accounting   principles
           generally  accepted in the United States of America have been omitted
           pursuant  to  the   requirements   of  the  Securities  and  Exchange
           Commission,  although  the  Company  believes  that  the  disclosures
           included  in these  financial  statements  are  adequate  to make the
           information not  misleading.  The December 31, 2000 balance sheet was
           derived from audited financial statements. These financial statements
           should be read in  conjunction  with the  Company's  annual report on
           Form 10-K for the year ended December 31, 2000.

           The results of operations  for the three month and nine month periods
           ended  September  30,  2001  are not  necessarily  indicative  of the
           results to be expected for the year ending December 31, 2001.

Note - 2   NET INCOME PER SHARE

           For the three and nine month  periods  ended  September  30, 2001 and
           2000,  basic net income per share is  computed  by  dividing  the net
           income by the weighted  average number of common shares  outstanding.
           Diluted  net  income  per share is the same as basic net  income  per
           share since the inclusion of 609,309 shares of potential common stock
           equivalents (stock options and warrants) in the computations would be
           anti-dilutive.

Note - 3   PATENT LITIGATION

           In July 1996, SIBIA Neurosciences, Inc. ("SIBIA") (which was acquired
           by Merck  and Co. in 1999)  commenced  a patent  infringement  action
           against the Company alleging  infringement by the Company of a patent
           concerning  the use of cells,  engineered to express any type of cell
           surface  receptor and a reporter gene,  used to report results in the
           screening of compounds against target assays,  and seeking injunctive
           relief and monetary damages.  On December 18, 1998, the jury issued a
           verdict in favor of SIBIA and awarded SIBIA $18.0 million in damages.
           On  January  29,  1999  the  United  States  District  Court  granted
           injunctive  relief that  precluded  the Company from using the method
           claimed in SIBIA's  patent.  The Company  appealed  the  judgment and
           deposited  $18.5 million in escrow to secure  payment of the judgment
           in the event the  Company  were to lose the  appeal  and  recorded  a
           reserve for litigation damages. Interest earned on the escrow account
           was added

                                       8
<PAGE>


           to the reserve for litigation damages. On September 6, 2000 the Court
           of Appeals  ruled in favor of the  Company  stating the claims of the
           SIBIA patent  asserted  against the Company were invalid.  On October
           30,  2000,  the U.S.  District  Court set  aside  the  $18.0  million
           judgment  in favor of SIBIA and vacated  the  injunction  against the
           Company. The Company obtained the release of the cash escrow of $19.9
           million  representing  the original  $18.5  million and interest that
           accumulated  thereon.  The reserve for litigation of $18,841,489 (net
           of direct legal costs of $1 million) was reversed and credited to the
           statement  of  operations for the quarter ended  September 30,  2000.
           Pursuant to a court order,  the Company  received in February  2001 a
           $155,402 reimbursement of SIBIA litigation costs, which was partially
           offset by legal costs incurred of $29,786.


Note - 4   NON-EXCLUSIVE LICENSE OF YEAST TECHNOLOGY

           In February 2000, the Company  licensed to OSI  Pharmaceuticals  Inc.
           ("OSI"), on a non- exclusive basis, its yeast technologies, including
           various  reagents and its library of over 30,000 yeast  strains,  and
           its bioinformatics software. OSI paid to the Company a license fee of
           $100,000  and an access  fee of  $600,000,  which  were  recorded  as
           license  fee  revenue in the first  quarter of 2000.  OSI also paid a
           supplemental  license  fee of  $250,000  in  December  2000  when the
           injunction  obtained by SIBIA was dissolved.  OSI also pays an annual
           maintenance  fee of $100,000  which it is  obligated to pay until the
           earlier of 2010 or the termination of the license.  OSI may terminate
           the license at any time on 30 days prior written notice.


ITEM 2.    MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND
           RESULTS OF OPERATIONS

OVERVIEW

The  Company  was  incorporated  in  1992  and  until  July  30,  1999,  devoted
substantially  all of its resources to the  development and application of novel
yeast-based and other drug discovery technologies. On July 30, 1999, the Company
sold its drug discovery assets and ceased its internal drug discovery operations
and research  efforts for  collaborative  partners.  The Company  terminated all
employees  who were not  hired by the  purchaser  of its  assets  or who did not
voluntarily  resign except for the Chief Executive Officer who resigned in April
2000.

The Company has incurred  operating losses in each year since its inception.  At
September  30, 2001,  the Company had an  accumulated  deficit of  approximately
$33.9  million.  The  Company's  losses  have  resulted  principally  from costs
incurred in connection  with its research and  development  activities  and from
general and administrative costs associated with the Company's operations. These
costs have exceeded the Company's  revenues and interest income.  As a result of
the sale of its drug  discovery  assets and the  cessation of its internal  drug
discovery  operations  and  research  efforts for  collaborative  partners,  the
Company ceased to have research funding revenues and  substantially  reduced its
operating expenses.

                                       9
<PAGE>


RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000

REVENUES

There were no revenues  for the three  months  ended  September  30,  2001.  The
revenues for the three months ended September 30, 2000 were $23,470 representing
the amortization of license fees.

OPERATING EXPENSES

General and  administrative  expenses decreased to $163,639 for the three months
ended September 30, 2001 from $251,701 for the same period in 2000. The decrease
is attributable primarily to a decrease in legal costs of approximately $118,000
offset by increases of approximately $21,000 in patent costs and license fees.

OTHER INCOME

Interest  income for the three  months  ended  September  30, 2001  increased to
$185,346 from $71,394 for the same period in 2000. The increase is  attributable
primarily to the increase in the Company's unrestricted cash equivalent balances
as  compared to the same period in 2000 as a result of the release of funds that
were held in escrow in connection with the SIBIA litigation.

On  September 6, 2000 the United  States Court of Appeals  ruled in favor of the
Company and overturned the 1998 judgment  entered by the U.S.  District Court in
the patent infringement suit filed by SIBIA. The gain recognized  represents the
original  $18.5 million  reserve plus interest  accrued on the escrow balance of
$1,341,489  less legal fees of $1,000,000 that were contingent on the success of
the appeal.

EQUITY IN OTHER VENTURES

For the three months ended September 30, 2001 the Company  recognized a net gain
of $1,826 in its investment in Laurel Partners Limited  Partnership  ("Laurel").
The loss for the same  period in 2000 was  $126,418  representing a net gain  in
Laurel  of  $3,379  and  losses  of  $129,797  in  Axiom  Biotechnologies,  Inc.
("Axiom").  The  Company's  investment  in Axiom was written down to zero in the
fiscal year 2000.

NET INCOME

Net income for the three months ended  September  30, 2001  decreased to $23,533
from net income of  $18,574,415  for the same period in 2000. The net income for
the same  period in 2000 was  principally  attributable  to the  reversal of the
SIBIA litigation judgment.

NINE MONTHS ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000

REVENUES

Revenues for the nine months ended September 30, 2001 decreased to $100,000 from
$723,470 for the same period in 2000. This decrease is attributable primarily to
the Company not  receiving  an access fee similar to the $600,000 it received in
February 2000 in connection with its licensing agreement with OSI.

                                       10
<PAGE>


OPERATING EXPENSES

General and  administrative  expenses  decreased to $812,547 for the nine months
ended  September  30, 2001 from  $1,451,793  for the same  period in 2000.  Such
expenses  for the nine months  ended  September  30, 2000  included  $607,500 in
compensation  (including  $497,500 in severance)  paid to the  Company's  former
Chief  Executive  Officer.  The Company does not currently  compensate its Chief
Executive Officer. General and administrative expenses for the nine months ended
September  30,  2001  principally   consisted  of  patent   maintenance   costs,
professional fees and insurance costs.

OTHER INCOME

Interest  income for the nine  months  ended  September  30, 2001  increased  to
$714,840 from $214,735 for the same period in 2000. The increase is attributable
primarily to the increase in the Company's unrestricted cash equivalent balances
as  compared to the same period in 2000 as a result of the release of funds that
were held in escrow in connection with the SIBIA litigation.

Pursuant  to a court  order,  the Company  received in February  2001 a $155,402
reimbursement  of SIBIA  litigation  costs which was  partially  offset by legal
costs incurred of $29,786.

On  September 6, 2000 the United  States Court of Appeals  ruled in favor of the
Company and overturned the 1998 judgment  entered by the U.S.  District Court in
the patent infringement suit filed by SIBIA. The gain recognized  represents the
original  $18.5 million  reserve plus interest  accrued on the escrow balance of
$1,341,489  less legal fees of $1,000,000 that were contingent on the success of
the appeal.

EQUITY IN OTHER VENTURES

For the nine months ended  September 30, 2001 the Company  recognized a net gain
of  $3,805  in  Laurel.  The  loss  for the same  period  in 2000  was  $840,656
representing  losses  in   Laurel  of  $6,243  and in  Axiom  of  $834,413.  The
Company's investment in Axiom was written down to zero in the fiscal year 2000.

NET INCOME

Net income for the nine months ended  September  30, 2001  decreased to $131,714
from net income of  $17,603,426  for the same period in 2000. The net income for
the same  period in 2000 was  principally  attributable  to the  reversal of the
SIBIA litigation judgment.

LIQUIDITY AND CAPITAL RESOURCES

At  September  30,  2001 the  Company  held cash and cash  equivalents  of $24.7
million. The Company's working capital at September 30, 2001 was $24.6 million.

In February 2000, the Company  licensed to OSI, on a  non-exclusive  basis,  its
yeast  technologies.  OSI has paid to the Company a license fee of $100,000,  an
access fee of $600,000 and a supplemental  license fee of $250,000.  OSI is also
obligated to pay an annual maintenance fee of $100,000 until the earlier of 2010
or the termination of the license.  The Company  received an annual  maintenance
fee of $100,000 in February  2001.  OSI may terminate the license at any time on
30 days prior written notice.

The Company believes that its existing capital resources, together with interest
income,  will be sufficient to support its  operations  through  mid-2003.  This
forecast of the period of time through which the

                                       11
<PAGE>


Company's  financial  resources  will be adequate to support its operations is a
forward-looking  statement  that may not prove  accurate  and,  as such,  actual
results may vary. The Company's  capital  requirements may vary as a result of a
number  of  factors,  including  the  transactions,  if any,  arising  from  the
Company's  efforts to license its technologies and otherwise  realize value from
its assets;  the  transactions,  if any,  arising from the Company's  efforts to
acquire  technologies or products or to acquire or invest in companies;  and the
expenses of pursuing such transactions.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2001,  the  Financial  Accounting  Standards  Board issued SFAS No. 141,
"Business  Combinations"  ("SFAS  141"),  and SFAS No. 142,  "Goodwill And Other
Intangible   Assets"  ("SFAS  142").  SFAS  141  addresses  the  accounting  for
acquisitions  of businesses  and is effective for  acquisitions  occurring on or
after July 1, 2001.  SFAS 142 addresses the method of identifying  and measuring
goodwill  and  other  intangible  assets,  eliminates  further  amortization  of
goodwill and intangible  assets that have indefinite  useful lives, and requires
periodic  evaluations of impairment of goodwill balances and intangible  assets.
Statement 142 also requires that intangible assets with definite useful lives be
amortized  over  their  respective  estimated  useful  lives to their  estimated
residual  values,  and reviewed for impairment in accordance  with SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of." SFAS 142 is effective for fiscal years beginning after December
15,  2001.  The  adoption  of SFAS  141 will  have no  effect  on the  Company's
financial  position or results of operations.  SFAS 142 will require the Company
to reassess the useful lives of its  capitalized  patent costs  reflected in the
accompanying  balance sheets as other assets.  The Company  amortized $60,679 of
capitalized  patent costs during the nine month periods ended September 30, 2001
and 2000. The Company is currently  assessing the impact of the adoption of SFAS
142.

SFAS No.  143,  "Accounting  for  Asset  Retirement  Obligations"  ("SFAS  143")
requires  recognition  of fair value  liability  for any  retirement  obligation
associated with long-lived assets. The offset to any liability recorded is added
to the recorded asset where the additional  amount is depreciated  over the same
period  as  the  long-lived  asset  for  which  the  retirement   obligation  is
established. SFAS 143 is effective beginning January 1, 2003.

SFAS No. 144,  "Accounting  for the Impairment or Disposal of Long-Lived  Assets
("SFAS 144") addresses financial  accounting and reporting for the impairment or
disposal of long-lived assets. SFAS 144 supercedes SFAS No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
and is effective  for  financial  statements  issued for fiscal years  beginning
January 1, 2002.

The  adoption of these  standards  should not have a  significant  effect on the
Company's financial position and results of operations.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's earnings and cash flows are subject to fluctuations due to changes
in interest  rates  primarily  from its investment of available cash balances in
money  market funds with  portfolios  of  investment  grade  corporate  and U.S.
government securities.  The Company does not believe it is materially exposed to
changes in interest rates.  Under its current  policies the Company does not use
interest  rate  derivative  instruments  to manage  exposure  to  interest  rate
changes.


PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         Nothing to report.

Item 2.  Changes in Securities and Use of Proceeds

         Nothing to report.

Item 3.  Defaults Upon Senior Securities

         Nothing to report

                                       12
<PAGE>



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

         Nothing to report.

Item 5.  Other Information

         Nothing to report

Item 6.  Exhibits and Reports on Form 8-K.

         (a)  Exhibits.

              None

         (b)  Reports on Form 8-K.

              None

                                       13
<PAGE>


                                   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.

                           CADUS PHARMACEUTICAL CORPORATION
                           (REGISTRANT)


Date: November 9, 2001     By: /s/ RUSSELL D. GLASS
                               -------------------------------------------------
                               Russell D. Glass
                               President and Chief Executive Officer (Authorized
                               Officer and Principal Financial Officer)

                                       14
<PAGE>


                                  EXHIBIT INDEX


     There are no exhibits being filed as part of this Quarterly  Report on Form
10-Q.





                                       15