SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)


[X]      Quarterly Report pursuant Section 13 or 15(d) of the Securities
         Exchange Act of 1934 for the quarterly period ended September 30, 1997

[ ]      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 0-24760

                              Orphan Medical, Inc.
             (Exact name of registrant as specified in its charter)

         Minnesota                                     41-1784594
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
incorporation or organization)

 13911 Ridgedale Drive, Suite 475, 
         Minnetonka, MN 55305                        (612) 513-6900
 (Address of principal executive offices     (Registrant's telephone number,
             and zip code)                         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, and (2) has been subject to such filing requirements
for the past 90 days.
           Yes   _X_                    No ___

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.

 Common Stock, $.01 par value                             6,099,562
 ----------------------------                             ---------
           (Class)                            (Outstanding at October 30, 1997)


<PAGE>


                                      INDEX

                             ORPHAN MEDICAL, INC.(R)
                          (A Development Stage Company)

                                                                        Page No.
                                                                        --------
PART I.  FINANCIAL INFORMATION
------------------------------

Item 1.  Financial Statements (Unaudited)

Balance Sheets - September 30, 1997 and December 31, 1996.                  3

Statements of Operations - Three month and nine month periods ended 
September 30, 1997 and September 30, 1996 and for the period January 1, 
1993 (inception) through September 30, 1997.                                4

Statements of Cash Flows - Nine month periods ended September 30, 1997 
and September 30, 1996 and for the period January 1, 1993 (inception) 
through September 30, 1997.                                                 5

Notes to Financial Statements                                               6

Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations.                                                      8

Item 3.  Quantitative and Qualitative Disclosures about Market Risks       11

PART II.  OTHER INFORMATION
---------------------------

Items 1 through 4 have been omitted since all items are inapplicable or 
answers negative.

Item 5.  Other Information                                                 11

Item 6.  Exhibits and Reports on Form 8-K                                  11

          Signature                                                        12


Antizol(TM), Antizol-Vet(TM), Caprogel(TM), Busulfanex(TM), Repliderm(TM),
Intrachol(TM), Colomed(TM), Cystadane(R), Elliotts B(R) Solution, Sucraid(TM),
Xyrem(TM), "The" Orphan Drug Company(TM), Orphan Medical, Inc.(R) and Dedicated
to Patients with Uncommon Diseases(R) are trademarks of the Company.


<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                                 BALANCE SHEETS
                              ORPHAN MEDICAL, INC.
                          (A Development Stage Company)

<TABLE>
<CAPTION>

                                                                             September 30,         December 31,
                                                                                 1997                  1996
                                                                             ------------          ------------
       ASSETS                                                                 (Unaudited)             (Note)
<S>                                                                          <C>                   <C>         
      Current assets:
         Cash and cash equivalents                                           $  2,691,441          $  3,927,945
         Available-for-sale securities                                          6,938,444            12,779,961
         Accounts receivable                                                      384,639               151,185
         Inventory                                                                163,895                  --
         Prepaid expenses                                                          78,227                35,070
                                                                             ------------          ------------
      Total current assets                                                     10,256,646            16,894,161

      Property and equipment, net of depreciation                                 313,072               256,438
                                                                             ------------          ------------
      Total assets                                                           $ 10,569,718          $ 17,150,599
                                                                             ============          ============

      LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
         Chronimed obligation (Note 4)                                       $    979,952          $       --
         Accounts payable and accrued expenses                                  2,816,629             2,297,736
         Accrued payroll and related taxes                                         77,408                57,532
                                                                             ------------          ------------
      Total current liabilities                                                 3,873,989             2,355,268

      Non current liabilities
         Chronimed obligation (Note 4)                                          1,004,551                  --

      Commitments (Note 5)

      Shareholders' equity:
         Common Stock, $.01 par value; 25,000,000 shares 
           authorized; 6,099,562 and 6,056,088 shares issued and      
           outstanding                                                             60,974                60,561
         Additional paid-in capital                                            29,756,724            29,543,439
         Deficit accumulated during the development stage                     (24,123,281)          (14,808,669)
                                                                             ------------          ------------
                                                                                5,694,417            14,795,331
         Unrealized gain (loss) on available-for-sale securities                   (3,239)                 --
                                                                             ------------          ------------
      Total shareholders' equity                                                5,691,178            14,795,331
                                                                             ------------          ------------
      Total liabilities and shareholders' equity                             $ 10,569,718          $ 17,150,599
                                                                             ============          ============

</TABLE>

NOTE: THE BALANCE SHEET AT DECEMBER 31, 1996 HAS BEEN DERIVED FROM THE AUDITED
FINANCIAL STATEMENTS AT THAT DATE BUT DOES NOT INCLUDE ALL OF THE INFORMATION
AND FOOTNOTES REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR COMPLETE
FINANCIAL STATEMENTS.

SEE ACCOMPANYING NOTES.


<PAGE>


                            STATEMENTS OF OPERATIONS
                              ORPHAN MEDICAL, INC.
                          (A Development Stage Company)

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                                                       Period from
                                                                                                                        January 1,
                                     For the Three Months Ended                 For the Nine Months Ended                 1993    
                                  ---------------------------------         ---------------------------------        (Inception) to
                                  September 30,       September 30,        September 30,        September 30,         September 30,
                                      1997                 1996                 1997                 1996                 1997
                                  ------------         ------------         ------------         ------------         ------------
<S>                               <C>                  <C>                  <C>                  <C>                  <C>         
      Net sales                   $    145,815         $       --           $    412,524         $       --           $    449,206

      Operating expenses:
          Cost of sales                111,224                 --                231,905                 --                242,351
          Research and
            development              2,319,953            1,842,704            5,132,686            4,314,263           16,856,098
          Sales and marketing          252,815               94,876            2,937,287              239,719            3,465,193
          General and
            administrative             798,153              533,857            1,920,702            1,276,159            5,898,387
                                  ------------         ------------         ------------         ------------         ------------
      Loss from operations          (3,336,330)          (2,471,437)          (9,810,056)          (5,830,141)         (26,012,823)
                                  ------------         ------------         ------------         ------------         ------------

      Other income:                     
      Interest                          92,229              269,938              495,445              615,825            1,889,543
                                  ------------         ------------         ------------         ------------         ------------

      Net loss and deficit
        accumulated during the
        development stage         $ (3,244,101)        $ (2,201,499)        $ (9,314,611)        $ (5,214,316)        $(24,123,280)
                                  ============         ============         ============         ============         ============

      Net loss per common
        share                     $      (0.53)        $      (0.36)        $      (1.54)        $      (1.02)        $      (7.64)
                                  ============         ============         ============         ============         ============

      Weighted average
        number of shares
        outstanding                  6,073,391            6,039,588            6,065,842            5,091,048            3,155,656
                                  ============         ============         ============         ============         ============

</TABLE>

SEE ACCOMPANYING NOTES.


<PAGE>


                            STATEMENTS OF CASH FLOWS
                              ORPHAN MEDICAL, INC.
                          (A Development Stage Company)

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                                           Period from   
                                                                     For the Nine Months Ended           January 1, 1993 
                                                                 ---------------------------------        (Inception) to 
                                                                 September 30,        September 30,        September 30,
                                                                     1997                 1996                 1997
                                                                 ------------         ------------         ------------
<S>                                                              <C>                  <C>                  <C>          
      OPERATING ACTIVITIES:
      Net loss                                                   $ (9,314,611)        $ (5,214,316)        $(24,123,280)
      Adjustments to reconcile net loss to net cash used
         in operating activities:
           Depreciation & amortization                                 54,089               32,631              138,731
           Loss on disposition of fixed assets                           --                   --                  4,091
           Changes in operating assets and liabilities:
             Increase (decrease) in payables and accruals             538,769               47,701            2,894,037
             Increase (decrease) in Chronimed obligation            1,984,503                 --              1,984,503
             Decrease (increase) in receivables and other            (233,454)            (316,447)            (394,068)
             Decrease (increase) in inventory                        (163,895)                --               (163,895)
             Decrease (increase) in prepaid expenses                  (43,159)             (30,423)             (78,229)
                                                                 ------------         ------------         ------------
      Net cash provided by (used in) operating activities          (7,177,758)          (5,480,854)         (19,738,110)

      INVESTING ACTIVITIES:
         Proceeds from sale of office equipment                          --                   --                 38,192
         Purchase of office equipment                                (110,722)            (117,334)            (493,277)
         Purchase of short-term investments                       (11,178,493)         (18,717,959)         (36,097,241)
         Maturities of short-term investments                      17,016,772            7,426,121           29,155,559
                                                                 ------------         ------------         ------------
      Net cash provided by (used in) investing activities           5,727,557          (11,409,172)          (7,396,767)

      FINANCING ACTIVITIES:
         Net proceeds from capital contribution                          --                   --              5,000,000
         Proceeds from stock options exercised                        213,697                 --                297,322
         Net proceeds from stock offerings                               --             14,834,901           23,636,666
         Expenses paid by Chronimed                                      --                   --                892,330
                                                                 ------------         ------------         ------------
      Net cash provided by financing activities                       213,697           14,834,901           29,826,318
                                                                 ------------         ------------         ------------

      Increase (decrease) in cash and cash equivalents             (1,236,504)          (2,055,125)           2,691,441
      Cash and cash equivalents at beginning of
         Period                                                     3,927,945            5,029,682                 --
                                                                 ------------         ------------         ------------
      Cash and cash equivalents at end of
         period                                                  $  2,691,441         $  2,974,557         $  2,691,441
                                                                 ============         ============         ============

      Supplemental cash flow information:
         Interest received                                       $    629,675         $    386,968         $  1,847,714

SEE ACCOMPANYING NOTES

</TABLE>

<PAGE>


                              ORPHAN MEDICAL, INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

1. BASIS OF PRESENTATION
Orphan Medical, Inc. (the "Company") is a development stage company formed to
acquire, develop, and market products of high medical value intended to address
inadequately treated or uncommon diseases of well-defined patient populations
treated by health care specialists. The Company is the successor to the business
previously conducted by the Orphan Medical Division of Chronimed Inc.
("Chronimed") from January 1, 1993 (inception) to July 1, 1994.

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, these financial statements do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal, recurring accruals) considered necessary for fair presentation have
been included. Operating results for the three month and nine month periods
ended September 30, 1997 are not necessarily indicative of the results that may
be expected for the year ended December 31, 1997. For further information, refer
to the audited financial statements and accompanying notes contained in the
Company's Annual Report filed on Form 10-K for the year ended December 31, 1996.

2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Accordingly, actual results could differ from those estimates.

3. LOSS PER SHARE
Loss per share is based upon the weighted average number of shares outstanding
during the respective periods. Common stock equivalents are not included because
their effect is anti-dilutive.

4. CHRONIMED OBLIGATION
The Company and Chronimed entered into an Agreement dated June 27, 1997, in
which Chronimed agreed to terminate certain agreements that had been in
existence since the spin-off of the Company from Chronimed. Among the terminated
agreements was the Marketing and Distribution Agreement dated July 2, 1994, as
amended, under which Chronimed had the exclusive right to market and distribute
four of Orphan Medical's proposed products and receive royalties with respect to
two of Orphan Medical's current products. In consideration for terminating these
agreements, the Company agreed to pay Chronimed compensation equal to
$2,500,000, consisting of cash and shares of the Company's Common Stock.
Chronimed was 


<PAGE>


paid $250,000 in cash on June 27, 1997, with the remaining balance of $2,250,000
payable in quarterly installments based on a temporary royalty arrangement equal
to 3 percent of the Company's sales and the issuance of Common Stock equal to 1
percent of the Company's issued and outstanding Common Stock at each quarter
end. For the quarter ended September 30, 1997, as provided by the Agreement, the
Company paid Chronimed approximately $3,300 in royalties. The issuance of Common
Stock will commence with the Company's quarter ended March 31, 1998. The
quarterly installments of cash royalty payments and the quarterly issuance of
the Company's Common Stock will continue until Chronimed has realized cumulative
compensation, including the $250,000 cash payment, valued at $2,500,000. With
respect to this transaction, the Company recorded a sales and marketing expense
of approximately $2,172,000 for the quarter ended June 30, 1997. The difference
between the amount the Company agreed to pay Chronimed ($2,500,000) and the
amount recorded as an expense ($2,172,000) equals $328,000, which will be
accrued and reported as interest expense in subsequent quarters. For the quarter
ended September 30, 1997, the Company accrued interest expense of $66,300 and
will continue to accrue interest in subsequent quarters until its obligation to
Chronimed is fully satisfied.

The Company estimates that its unpaid obligation of $2,250,000 may take between
12 and 24 months, if not longer, to fully satisfy. At September 30, 1997, the
Company 's unpaid obligation to Chronimed has an estimated value of
approximately $1,984,503 based on its estimate of royalties payable in future
periods and its estimate of future market values for the Company's Common Stock.
Accordingly, based on these estimates and amounts incurred for the quarter ended
September 30, 1997, the Company classified $979,952 as a "Current Liability" and
$1,004,551 as a "Non Current Liability".

5. COMMITMENTS
The Company has various commitments under agreements with outside consultants,
contract drug development and technical service companies, bulk drug suppliers,
distribution companies and license and research agreements. Expenditures
incurred under these commitments and reported as research and development
expense totaled approximately $1,938,000 and $4,142,000 for the three and nine
month periods ended September 30, 1997, respectively. At September 30, 1997, the
Company estimates that it could incur approximately $3,288,000 of additional
expenditures in subsequent periods under existing commitments for those products
remaining in the Company's development portfolio. The $3,288,000 value for
future commitments does not include the one-time charge of $780,000 for the
estimated cost of phasing out the development commitments for nine of the
Company's products. Commitments for research and development expenditures will
likely fluctuate from quarter to quarter and from year to year depending on,
among other factors, the timing of product development and the progress of
clinical development programs.

6. RECLASSIFICATIONS
Certain prior period balances have been reclassified in order to conform with
the presentation for the three months ended September 30, 1997. These
reclassifications have no impact on the net loss or shareholders' equity as
previously reported.


<PAGE>


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

CAUTIONARY STATEMENT 
This Quarterly Report on Form 10-Q contains statements that
are not descriptions of historical facts. The words or phrases "will likely
result", "look for", "may result", "will continue", "is anticipated", "expect",
"project", or similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements may be forward-looking statements that are subject to
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors, including those identified in
the Company's "Cautionary Statements" on Exhibit 99 to this Quarterly Report
filed on Form 10-Q for the quarter ended September 30, 1997.

GENERAL
Orphan Medical, Inc., a development stage company, was incorporated on June 17,
1994 in order to carry on the business previously conducted by the Orphan
Medical Division of Chronimed. From inception through September 30, 1997, the
Company has incurred losses totaling $24,123,280, consisting of $16,856,098 of
research and development expenses, $3,465,193 of sales and marketing expenses,
$5,898,387 of general and administrative expenses, $206,855 of gross profit on
sales of approved products and $1,889,543 of net interest income. The Company's
activities have consisted primarily of obtaining the rights for pharmaceutical
products, hiring the personnel required to implement the Company's business
plan, managing the development of these products, preparing for the commercial
introduction of three products and fund raising. At September 30, 1997, three of
the Company's products have been approved by the Food and Drug Administration
("FDA") for marketing and are commercially available, new drug applications
("NDAs") for two products were pending before the FDA and eleven products were
in various stages of development. The Company has decided to concentrate its
resources on three products, which the Company believes have the most attractive
marketing potential. Therefore, nine of the Company's development products will
be phased out and not developed by the Company for marketing. The Company has
not generated material levels of revenue from its approved products to date and
has sustained significant operating losses each year since inception. The
Company expects to continue reporting as a development stage company at least
through 1997. In addition, the Company expects operating losses to continue into
1999.

NINE MONTHS ENDED SEPTEMBER 30, 1997 VS. NINE MONTHS ENDED SEPTEMBER 30, 1996
The Company has been shipping Elliotts B Solution and Cystadane since December
1996 and commenced shipping Antizol-Vet in January 1997. The Company had no
sales during the comparable period in 1996. Sales were $412,524 for the nine
months ended September 30, 1997. Sales of Elliotts B Solution and Cystadane are
in line with expectations. However, the Company expects sales of Antizol-Vet to
decrease in the fourth quarter and to fall short of full year expectations.

Cost of sales increased from zero for the nine months ended September 30, 1996
to $231,905 for the nine months ended September 30, 1997. For the three month
period ended September 30, 1997, the Company recorded a charge of $70,000 to
cost of sales for excess Antizol-Vet inventories. Cost of sales as a percentage
of sales will fluctuate from quarter to quarter and from 


<PAGE>


year to year depending on, among other factors, demand for the Company's
products, new product introductions and the mix of approved products shipped.

Research and development expenses increased from $ 4,314,263 (74% of the total
loss from operations) for the nine months ended September 30, 1996 to $5,132,686
(52% of the total loss from operations) for the nine months ended September 30,
1997. The $818,423 increase is largely attributable to higher levels of clinical
spending for Busulfanex and Xyrem. In addition, for the three month period ended
September 30, 1997, the Company recorded a one-time charge of $780,000 for the
estimated cost of phasing out nine development products. The Company took this
action in order to focus its development efforts on those products that fit into
the antidote market segment where Antizol is expected to be an important
product, or that could be complementary to the market segments where Busulfanex
or Xyrem could be important products. Based on the Company's current development
portfolio of products that it expects to market, research and development
expense should decrease in subsequent periods, but the amount of such decrease
in subsequent periods will depend principally on the level of Busulfanex and
Xyrem clinical trial activity. The Company's clinical spending for a product is
dependent on a number of factors, including among others: the number of human
subjects required for a trial, the number of human subjects screened and
enrolled in a trial and the number of active clinical sites. The Company's
product development schedule for the products currently under development and
additional products it may develop in the future will also be influenced by
regulatory decisions, competitive pressures and the availability of funding.

Sales and marketing expenses increased from $239,719 (4% of the total loss from
operations) for the nine months ended September 30, 1996 to $2,937,287 (30% of
the total loss from operations) for the nine months ended September 30, 1997.
The $2,697,568 increase is principally due to a one-time $2,172,000 expense
related to the June termination of an agreement under which Chronimed had
exclusive rights to distribute certain Orphan Medical products. Without this
one-time $2,172,000 expense, sales and marketing expense increased approximately
$526,000 because of costs related to initiating the new distribution agreement
with Cardinal Health and marketing costs for the Company's three approved
products. Excluding one-time expenses, sales and marketing expenses are expected
to increase in subsequent quarters principally due to sales and marketing
programs associated with the Company's three approved products and due to the
addition in the fourth quarter of a small, focused sales force for Antizol,
which could receive marketing authorization from the FDA as early as the end of
1997.

General and administrative expenses increased from $1,276,159 (22% of the total
loss from operations) for the nine months ended September 30, 1996 to $1,920,702
(19% of the total loss from operations) for the nine months ended September 30,
1997. The $644,543 increase is principally due to staff additions. General and
administrative expenses are not expected to increase in subsequent quarters.

Other income is the sum of interest income from investment activities less
interest expense from financing activities. Other income decreased from $615,825
for the nine months ended September 30, 1996 to $495,445 for the nine months
ended September 30, 1997. This decrease is due to less interest income resulting
from lower levels of investable funds and interest expense incurred 


<PAGE>


in the third quarter related to the Company's obligation to Chronimed. Other
income is expected to decline in subsequent quarters as currently invested funds
are used to fund development, and marketing and sales activities, and as the
Company accrues a non-cash charge for interest expense related to the Chronimed
obligation.

Net losses for the nine months ended September 30, 1997 and for the nine months
ended September 30, 1996 were $(9,314,611) and $(5,214,316), respectively. Net
losses per common share for these respective periods were $(1.54) and $(1.02),
based on weighted average number of common shares outstanding of 6,065,842 and
5,091,048, respectively.

LIQUIDITY AND CAPITAL RESOURCES
From inception through September 30, 1997, the Company has used $19,738,110 to
fund operating activities. Of this amount, Chronimed paid $826,063 to fund the
Company's operating expenses from January 1, 1993 through July 1, 1994.
Thereafter, the Company has used $18,912,047 to fund operating activities. Since
July 2, 1994, the effective date the Company was spun-off from Chronimed, it has
financed its operations principally from initial working capital balances, the
net proceeds from the 1995 and 1996 public offerings, interest income and
product sales. The 1995 and 1996 public offerings resulted in aggregate net
proceeds, after commissions and expenses, of $23,636,666.

Net working capital (current assets less current liabilities) decreased from
$14,538,893 at December 31, 1996 to $6,382,657 at September 30, 1997. Cash and
cash equivalents, and available-for-sale securities decreased from $16,707,906
at December 31, 1996 to $9,629,885 at September 30, 1997. The Company invests
excess cash in short-term, interest-bearing, investment grade securities.

The Company's commitments for outside development spending decreased from
$4,287,000 at December 31, 1996 to $3,288,000 at September 30, 1997 (also see
Note 5 to the Financial Statements). The $999,000 decrease resulted principally
from the Company's decision to phase out nine products from its development
portfolio. The Company estimates that more than 84% of the $3,288,000 in future
commitments relate to Busulfanex and Xyrem. The Company expects future
commitments for Xyrem to increase significantly over current levels as
additional clinical programs are commenced.

The Company believes that it has sufficient capital to fund its operations
through 1998. The Company's future liquidity and capital requirements will
depend on, among other factors, the extent to which the Company's FDA approved
products gain market acceptance, the timing of regulatory actions regarding
future products, the costs and timing of sales, marketing and manufacturing
activities, the results of clinical trials and competition. However, to fully
implement the Company's current business plan through 1999, the Company believes
it will need to raise at least $7,000,000 of additional capital, assuming no
internally generated funding is available. The Company has no assurance that
such capital will be available on acceptable terms, or at all. In the event that
the Company is unable to raise additional capital on a timely basis, it expects
to reduce or defer the amount allocated to planned development activities.


<PAGE>


Item 3.  Quantitative and Qualitative Disclosures about Market Risks
         Not Applicable


PART II  -  OTHER INFORMATION

Item 5.  Other Information
On November 10, 1997, the Company announced that it had received notice from the
Food and Drug Administration (FDA) that the new drug application for Sucraid is
approvable pending final product labeling and acceptable responses to FDA
chemistry questions. The Company expects to begin selling Sucraid in the
domestic market during the first quarter of 1998.

In early November 1997, the Company exercised its rights under a license
agreement with Lescarden, Inc. (the "Licensor"), whereby, it notified the
Licensor that it will not develop nor market any products which use the
Licensor's bovine cartilage powder for topical use in humans in all therapeutic
applications. The Company's tradename for the product licensed from the Licensor
was Repliderm Wound Dressing. The Company had previously announced in January
1997 that the FDA granted 510(k) marketing clearance of Repliderm Wound
Dressing, but the Company would not market the product without additional
clinical trials because the 510(k) did not fully support indications the Company
considered important.

Item 6.  Exhibits and Reports on Form 8-K
(a) Exhibits
------------------ ----------------------------------------------- -------------
Exhibit Number                                                     Sequentially
                   Description                                     Numbered Page
------------------ ----------------------------------------------- -------------
       27          Financial Data Schedule - For SEC EDGAR filing
------------------ ----------------------------------------------- -------------
       99          Cautionary Statements
------------------ ----------------------------------------------- -------------

(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended September 30, 1997.


<PAGE>


SIGNATURE

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



                                                        Orphan Medical, Inc.

                                                            Registrant


    Date  November 12, 1997                 By          /s/ John H. Bullion
                                                        -------------------
                                                          John H. Bullion
                                                      Chief Executive Officer
                                                   (principal executive officer)