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

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

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

| Large accelerated filer  ̈                | Accelerated filer  ̈    |
|-----------------------------------------------|-----------------------------|
|                                          |                        |
| Non-accelerated filer  ̈                  | Smaller reporting company x |
| (Do not check if a smaller reporting company) |                        |

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|                                                  | Page No.                                                                                                  |
|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                  |                                                                                                           |
| SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS     | 3                                                                                                              |
|                                                  |                                                                                                           |
| PART I - CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
|                                                  |                                                                                                           |
| Item 1.                                               | Condensed Consolidated Financial Statements                                                                    |   |
|                                                  |                                                                                                           |   |
|                                                  | Condensed Consolidated Balance Sheets – March 31, 2011 (Unaudited) and December 31, 2010 (Audited)       | 4 |
|                                                  |                                                                                                           |   |
|                                                  | Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2011 and 2010 (Unaudited) | 5 |
|                                                  |                                                                                                           |   |
|                                                  | Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2011 and 2010 (Unaudited) | 6 |
|                                                  |                                                                                                           |   |
|                                                  | Notes to Condensed Consolidated Financial Statements (Unaudited)                                               | 7 - 8 |
|                                                  |                                                                                                           |   |
| Item 2.                                               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                    | 9 – 10 |
|                                                  |                                                                                                           |   |
| Item 3.                                               | Quantitative and Qualitative Disclosures About Market Risk                                                     | 10 |
|                                                  |                                                                                                           |   |
| Item 4.                                               | Controls and Procedures                                                                                        | 10 |
|                                                  |                                                                                                           |   |
| PART II - OTHER INFORMATION                           |
|                                                  |                                                                                                           |
| Item 1.                                               | Legal Proceedings                                                                                              | 11 |
|                                                  |                                                                                                           |   |
| Item 1A.                                              | Risk Factors                                                                                                   | 11 |
|                                                  |                                                                                                           |   |
| Item 2.                                               | Unregistered Sales of Equity Securities and Use of Proceeds                                                    | 11 |
|                                                  |                                                                                                           |   |
| Item 3.                                               | Defaults Upon Senior Securities                                                                                | 11 |
|                                                  |                                                                                                           |   |
| Item 5.                                               | Other Information                                                                                              | 11 |
|                                                  |                                                                                                           |   |
| Item 6.                                               | Exhibits                                                                                                       | 11 |
|                                                  |                                                                                                           |   |
| SIGNATURES                                            | 12                                                                                                             |
|                                                  |                                                                                                           |
| EXHIBIT INDEX                                         | 13                                                                                                             |

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|                                             |   | March 31,2011 |        |   | December 31,2010 |   |
|--------------------------------------------------|--------|--------------------|-------------|--------|-----------------------|--------|
|                                             |   | (Unaudited)        |        |   | (Audited)             |   |
| ASSETS                                           |   |               |        |   |                  |   |
|                                             |   |               |        |   |                  |   |
| Current assets:                                  |   |               |        |   |                  |   |
| Cash and cash equivalents                        |   | $                  | 23,678,517  |   |                  | $      | 23,789,400 |   |
| Interest receivable                              |   |               | 437         |   |                  |   | 885 |   |
| Prepaid and other current assets                 |   |               | 17,640      |   |                  |   | 7,090 |   |
|                                             |   |               |        |   |                  |   |   |   |
| Total current assets                             |   |               | 23,696,594  |   |                  |   | 23,797,375 |   |
|                                             |   |               |        |   |                  |   |   |   |
| Investment in other ventures                     |   |               | 194,253     |   |                  |   | 194,232 |   |
| Patents, net                                     |   |               | 269,927     |   |                  |   | 291,535 |   |
| Total assets                                     |   | $                  | 24,160,774  |   |                  | $      | 24,283,142 |   |
|                                             |   |               |        |   |                  |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |               |        |   |                  |   |   |   |
|                                             |   |               |        |   |                  |   |   |   |
| Current liabilities:                             |   |               |        |   |                  |   |   |   |
| Accrued expenses and other current liabilities   |   | $                  | 36,293      |   |                  | $      | 4,778 |   |
| Total current liabilities                        |   |               | 36,293      |   |                  |   | 4,778 |   |
|                                             |   |               |        |   |                  |   |   |   |
| Commitments                                      |   |               |        |   |                  |   |   |   |
|                                             |   |               |        |   |                  |   |   |   |
| Stockholders’ equity:                      |   |               |        |   |                  |   |   |   |
| Common stock                                     |   |               | 132,857     |   |                  |   | 132,857 |   |
| Additional paid-in capital                       |   |               | 59,847,443  |   |                  |   | 59,847,443 |   |
| Accumulated deficit                              |   |               | (35,555,744 | )      |                  |   | (35,401,861 | ) |
| Treasury stock – at cost                   |   |               | (300,075    | )      |                  |   | (300,075 | ) |
| Total stockholders’ equity                 |   |               | 24,124,481  |   |                  |   | 24,278,364 |   |
| Total liabilities and stockholders’ equity |   | $                  | 24,160,774  |   |                  | $      | 24,283,142 |   |

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|                                                                            |   | Three Months EndedMarch 31, |       |
|---------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                            |   | 2011                                       |       |   | 2010 |   |
|                                                                            |   | (Unaudited)                                |       |   | (Unaudited) |   |
| License and maintenance fees                                                    |   | $                                          | -0-        |   |   | $ | 100,000 |   |
| Total revenues                                                                  |   |                                       | -0-        |   |   |   | 100,000 |   |
| Costs and expenses:                                                             |   |                                       |       |   |   |   |   |   |
| General and administrative expenses                                             |   |                                       | 134,128    |   |   |   | 153,063 |   |
| Amortization of patent costs                                                    |   |                                       | 21,608     |   |   |   | 21,608 |   |
| (Income) from equity in other ventures                                          |   |                                       | (21        | ) |   |   | (31 | ) |
| Total costs and expenses                                                        |   |                                       | 155,715    |   |   |   | 174,640 |   |
| Operating loss                                                                  |   |                                       | (155,715   | ) |   |   | (74,640 | ) |
| Other income:                                                                   |   |                                       |       |   |   |   |   |   |
| Interest income                                                                 |   |                                       | 1,832      |   |   |   | 2,671 |   |
| Loss before provision for income taxes                                          |   |                                       | (153,883   | ) |   |   | (71,969 | ) |
| Provision for income taxes                                                      |   |                                       | -          |   |   |   | - |   |
| Net loss                                                                        |   | $                                          | (153,883   | ) |   | $ | (71,969 | ) |
| Basic and diluted (loss) per weighted average share of common stock outstanding |   | $                                          | (0.01      | ) |   | $ | (0.01 | ) |
| Weighted average shares of common stock outstanding – basic and diluted   |   |                                       | 13,144,040 |   |   |   | 13,144,040 |   |

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|                                                                            |   | Three Months EndedMarch 31, |       |
|---------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                            |   | 2011                                       |       |   | 2010 |   |
|                                                                            |   | (Unaudited)                                |       |   | (Unaudited) |   |
| Cash flows from operating activities:                                           |   |                                       |       |   |   |   |
| Net loss                                                                        |   | $                                          | (153,883   | ) |   | $ | (71,969 | ) |
| Adjustments to reconcile net (loss) to net cash (used in) operating activities: |   |                                       |       |   |   |   |   |   |
| Amortization of patent costs                                                    |   |                                       | 21,608     |   |   |   | 21,608 |   |
| (Income) from equity in other ventures                                          |   |                                       | (21        | ) |   |   | (31 | ) |
| Changes in assets and liabilities:                                              |   |                                       |       |   |   |   |   |   |
| Increase in prepaid and other current assets                                    |   |                                       | (10,550    | ) |   |   | (9,664 | ) |
| Increase in accrued expenses and other current liabilities                      |   |                                       | 31,963     |   |   |   | 23,234 |   |
| Net cash used in operating activities                                           |   |                                       | (110,883   | ) |   |   | (36,822 | ) |
| Net decrease in cash and cash equivalents                                       |   |                                       | (110,883   | ) |   |   | (36,822 | ) |
| Cash and cash equivalents – beginning of period                           |   |                                       | 23,789,400 |   |   |   | 24,098,443 |   |
| Cash and cash equivalents – end of period                                 |   | $                                          | 23,678,517 |   |   | $ | 24,061,621 |   |

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| Note - 1 | Organization and Basis of Preparation |
|----------|---------------------------------------|

| Note – 2  | Cash Equivalents |
|----------------------|------------------|

| Note - 3  | Net (Loss) Per Share |
|----------------|----------------------|

| Note - 4  | Licensing Agreements |
|----------------|----------------------|

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| Note – 5  | Fair Value of Financial Instruments |
|----------------------|-------------------------------------|

| Note – 6  | Newly Adopted Accounting Pronouncements |
|----------------------|-----------------------------------------|

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

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| Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| Item 4.  | CONTROLS AND PROCEDURES |
|--------------------|-------------------------|

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| ITEM 1.  | LEGAL PROCEEDINGS. |
|---------------|--------------------|

| ITEM 1A. | RISK FACTORS. |
|----------|---------------|

| ITEM 2.  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
|---------------|--------------------------------------------------------------|

| ITEM 3.  | DEFAULTS UPON SENIOR SECURITIES. |
|---------------|----------------------------------|

| ITEM 5.  | OTHER INFORMATION. |
|---------------|--------------------|

| ITEM 6.  | EXHIBITS. |
|---------------|-----------|

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|                | CADUS CORPORATION |
|---------------------|-------------------|
|                | (Registrant)      |
|                |              |
| Dated: May 16, 2011 | By:          | /s/ David Blitz |
|                |              | David Blitz |
|                |              | President and Chief Executive Officer (AuthorizedOfficer and Principal Financial Officer) |

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| Exhibit No. |         | Description                                                                                                            |
|------------------|--------------|------------------------------------------------------------------------------------------------------------------------|
|             |         |                                                                                                                   |
| 31               |         | Certifications                                                                                                         |
|             |         |                                                                                                                   |
| 32               |    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

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