UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, DC  20549


                               FORM 10-Q

[Mark One]

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
          SECURITIES EXCHANGE ACT OF 1934
          For the quarterly period ended September 28, 1997

                                  OR

     [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934
          For the transition period from            to 
                                         ----------    -----------.

Commission file Number:  0-26126

                   SEROLOGICALS CORPORATION
         (Exact Name of Registrant as Specified in its Charter)

                  Delaware                    58-2142225
         (State or other jurisdiction of   (I.R.S. Employer
          incorporation or organization)  Identification Number)

          780 Park North Blvd.
               Suite 110
          Clarkston, Georgia                   30021
          (Address of principal              (Zip Code)
          executive offices)

                         (404) 296-5595
           (Registrant's Telephone Number Including Area Code)


Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the preceding 12 months (or for such shorter period 
that the registrant was required to file such reports), and (2) has been 
subject to such filing requirements for the past (90) days.
                             Yes   /X/      No  / / 

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

            Class                         Outstanding at October 24, 1997
Common Stock, $.01 par value per share            15,634,690


<PAGE>

                                   INDEX

                 SEROLOGICALS CORPORATION AND SUBSIDIARIES


PART I. 
-------

Item 1.  Financial Statements (Unaudited)

  Condensed Consolidated Balance Sheets -
    December 29, 1996 and September 28, 1997. . . . . . . . . . . .3

  Condensed Consolidated Statements of Income - 
    For the three and nine months ended September 29, 1996 and 
    September 28, 1997. . . . . . . . . . . . . . . . . . . . . . .4

  Condensed Consolidated Statements of Cash Flows -
   For the nine months ended September 29, 1996 and 
   September 28, 1997 . . . . . . . . . . . . . . . . . . . . . . .5

Notes to Condensed Consolidated Financial Statements . . . .  . .6-9


Item 2.  Management's Discussion and Analysis of Financial 
Condition and Results of Operations . . . . . . . . . . . . . .10-15

PART II. 
--------

Item 2.  Changes in Securities. . . . . . . . . . . . . . . . . .16
Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . . . .16

SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . .16
----------

<PAGE>

PART I.  
-------

Item 1.  Financial Statements

                   SEROLOGICALS CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)
                                (Unaudited)
<TABLE>
<CAPTION>
                                                 Dec. 29,       Sept. 28, 
                                                  1996            1997
                                                  -----           -----
                                               <C>              <C>
<S>
                   ASSETS
CURRENT ASSETS:
 Cash and cash equivalents                      $21,232         $27,913
 Trade accounts receivable, net                   5,235          10,586
 Inventories                                      5,746           8,642
 Other current assets                             1,131             837
                                                 ------          ------
 Total current assets                            33,344          47,978
                                                 ------          ------
PROPERTY AND EQUIPMENT, net                       9,800          12,744
                                                 ------          ------
OTHER ASSETS:
Goodwill, net                                    33,541          51,431
Other, net                                        4,152           5,849
                                                 ------          ------
Total other assets                               37,693          57,280
                                                 ------          ------
                                                $80,837        $118,002
                                                =======        ========
    LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
 Current maturities of long-term debt 
  and capital lease obligations                  $3,567          $2,616
 Accounts payable                                 2,795           2,141
 Accrued liabilities                              6,208           8,768
 Deferred revenue                                    69             683
                                                 ------          ------
 Total current liabilities                       12,639          14,208
                                                 ------          ------
 LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS,
  less current maturities                           147           4,570
                                                 ------          ------
OTHER LIABILITIES                                   168             308
                                                 ------          ------
STOCKHOLDERS' EQUITY:
 Common stock                                       141             156
 Additional paid-in capital                      52,164          74,644
 Retained earnings                               15,368          24,093
 Cumulative translation adjustment                  210              23
                                                -------          ------
 Total stockholders' equity                      67,883          98,916
                                                -------          ------
                                                $80,837        $118,002
                                                =======        ========
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
                              balance sheets.

                                   3 
<PAGE>

                  SEROLOGICALS CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (in thousands, except per share data)
                              (Unaudited)
<TABLE>
<CAPTION>
                             Nine Months Ended         Three Months Ended
                           Sept. 29,   Sept. 28,      Sept. 29,  Sept. 28,
                             1996        1997           1996       1997
                           ---------   ---------      ----------  ---------
                           <C>         <C>            <C>         <C> 
<S>
Net sales                    $47,259     $72,571        $15,819    $26,609
Costs and expenses:
Cost of sales                 27,686      46,085          9,177     16,873
Selling, general and 
 administrative expenses       6,880       9,621          2,248      3,415
Product development expenses   1,686       1,474            556        474
Interest expense (income), net   297       (358)            (76)      (134)
Other expense, net             1,294       2,016            412        942
							
                              ------      ------         ------     ------
Income before income taxes 
 and extraordinary loss        9,416      13,733          3,502      5,039
Provision for income taxes     3,434       5,008          1,294      1,812
                              ------      ------         ------    -------
Income before extraordinary 
 loss                          5,982       8,725          2,208      3,227
Extraordinary loss on early 
 retirement of debt, net of 
 income taxes                     14         --             --          --
                              ------       -----         ------     ------
Net income                    $5,968      $8,725         $2,208     $3,227
                              ======       ======        ======     ======
Net income per common 
share-primary:
Income before extraordinary 
 loss                          $0.42       $0.57          $0.15      $0.20
Extraordinary loss                --          --             --         --
                               -----       -----          -----      -----
Net income                     $0.42       $0.57          $0.15      $0.20
                               =====       =====          =====      =====
Weighted average common and
 common equivalent shares 
 outstanding-primary          14,072      15,541         15,016     16,027
                              ======      ======         ======     ======
</TABLE>

The accompanying notes are an integral part of these condensed consolidated
                                 statements.

                                   4
 
<PAGE>

                 SEROLOGICALS CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)
                                (Unaudited)
<TABLE>
<CAPTION>
                                                    Nine Months Ended
                                                 Sept. 29,      Sept. 28,
                                                  1996            1997
                                                  ----            ----
                                                  <C>             <C>
<S>
Operating activities:
 Net income                                      $5,968         $8,725
 Adjustments to reconcile net income 
  to net cash provided by operating 
  activities:                  
 Depreciation and amortization                    2,506          3,721
 Deferred income tax (benefit) provision            (61)           202
 Extraordinary loss, net                             14             --
Changes in operating assets and 
 liabilities, net of acquisitions of businesses:
  Trade accounts receivable, net                   (689)        (4,711)
  Inventories                                    (1,874)        (1,226)
  Other current assets                             (422)           281
  Accounts payable                                 (722)        (1,181)
  Accrued expenses                                  196          1,442
  Deferred revenue                                  227           (201)
                                                  -----          ------
 Total adjustments                                 (825)        (1,673) 
                                                  -----          ------ 
 Net cash provided by operating activities        5,143          7,052   
                                                 ------         -------
Investing activities:
 Purchases of property and equipment             (2,459)        (3,128)
 Acquistions of businesses                       (4,639)       (15,449) 
 Other                                             (249)          (468)
                                                 ------        -------
 Net cash used in investing activities           (7,347)       (19,045)
                                                 ------        -------
Financing activities:
 Net payments under revolving line of credit     (2,059)            --
 Proceeds from issuance of long-term debt            89            525
 Payments on long-term debt and capital 
  lease obligations                              (2,493)         (200)
 Proceeds from sales of common stock             21,670        17,542
 Proceeds from employee stock plans                 346           994
                                                 ------        ------
  Net cash provided by financing activities      17,553        18,861 
                                                 ------        ------
Effect of changes in foreign exchange rate           22          (187)
                                                 ------         ------
Net increase in cash and cash equivalents        15,371          6,681
Cash and cash equivalents, beginning of period    2,887         21,232
                                                 ------         ------
Cash and cash equivalents, end of period        $18,258        $27,913
                                                =======        =======

Supplemental Disclosures:
Interest Paid                                      $473           $207
Taxes Paid                                       $3,649         $4,311

</TABLE>
The accompanying notes are an integral part of these condensed consolidated
                                 statements.

                                     5

<PAGE>


               SEROLOGICALS CORPORATION AND SUBSIDIARIES
         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          SEPTEMBER 28, 1997 
                              (UNAUDITED)

1.  ORGANIZATION AND BASIS OF PRESENTATION

     Organization
     Serologicals Corporation (the "Company") is a leading worldwide 
provider of specialty human antibody-based products and services to major 
healthcare companies.  The Company's services, including donor 
recruitment, donor management and clinical testing services, enable the 
Company to provide value-added, antibody-based products that are used as 
the active ingredients in therapeutic and diagnostic pharmaceutical 
products.  The Company operates 59 donor centers, 16 of which specialize 
in the collection of specialty antibodies and 43 of which primarily 
collect IVIG antibodies from which a number of products are produced.   
The Company is also engaged in the development, manufacturing and sale of 
monoclonal antibodies at its facilities in the United Kingdom.

     Basis of Presentation
     The accompanying unaudited condensed consolidated financial 
statements include the accounts of the Company and its subsidiaries.  
All significant intercompany accounts and transactions have been 
eliminated in consolidation.  The accompanying statements have been 
prepared in accordance with generally accepted accounting principles for 
interim financial information and the instructions to Form 10-Q.  
Accordingly, they do not include all of the information and footnotes 
required by generally accepted accounting principles for complete 
financial statements.  In the opinion of management, the accompanying 
unaudited condensed consolidated financial statements reflect all 
adjustments, which are of a normal recurring nature, to present fairly 
the Company's financial position, results of operations and cash flows 
at the dates and for the periods presented.  Interim results of operations 
are not necessarily indicative of results to be expected for a 12-month 
period.  The interim financial statements should be read in conjunction 
with the audited consolidated financial statements as of December 29, 1996 
and the notes thereto included in the Company's Annual Report on Form 10-K 
for the year ended December 29, 1996. 

     Earnings per share
     Net income per share is computed using the weighted average number 
of shares of common stock outstanding plus common equivalent shares.  
Common equivalent shares from the Nations Note and the Bio-Lab Note (Note 
4) (using the "if-converted" method) and stock options and warrants 
(calculated according to the treasury stock method) have been included in 
the computation when dilutive. For the periods presented, fully diluted 
earnings per share has not been presented as the dilutive effect is not 
material. (Note 5).

     Weighted average common and common equivalent shares outstanding for all
periods presented have been adjusted to reflect the Company's 3-for-2 
common stock split effected in the form of a 50% stock dividend paid 
February 28, 1997 to holders of record as of February 10, 1997.


2.  SALE OF COMMON STOCK

On September 9, 1997, the Company sold 950,000 shares of its common stock, 
at a price of $19.50 per share, in a private placement transaction made in 
reliance upon the exemption from the registration requirements of the 
Securities Act of 1933, as amended, afforded by Section 4(2) thereof.  The 
net proceeds to the Company from the sale of the shares were approximately 
$17.5 million, and will be used for general corporate purposes, including 
strategic acquisitions and investments.  Pursuant to the same transaction, 
one of the Company's shareholders sold 250,000 shares of common stock; the 
Company received none of the proceeds from this sale.  A registration 
statement relating to the resale by the purchasers of the shares of common 
stock sold by the Company was declared effective by the Securities and 
Exchange Commission on September 3, 1997.

                                  6

<PAGE>

3.  ACQUISITIONS 

     On March 6, 1997, the Company acquired Nations Biologics, Inc. and its
affiliates (the "Nations Group") for approximately $14.2 million (the 
"Nations Acquisition"), before recording certain transaction costs and 
subject to adjustment based primarily on the post-acquisition performance 
of the businesses acquired over the 14-month period subsequent to closing.  
The purchase price consisted of approximately $10.2 million of cash and 
the issuance to one of the sellers of a $4.0 million convertible 
subordinated promissory note maturing on March 7, 2002 (the Nations Note 
as defined in Note 4).  The Company financed the $10.2 million of cash 
paid at closing with cash on hand.

     The following unaudited data summarize the pro forma results of 
operations for the nine months ended September 29, 1996 and September 28, 
1997 as if the Nations Acquisition had occurred on January 1 of each 
period.  The unaudited pro forma information has been prepared for 
comparative purposes only and does not purport to represent what the 
results of operations would actually have been had the transaction 
actually occurred on the dates indicated, or what the results of 
operations may be in the future.  Further, the results for the nine 
months ended September 29, 1996 include a non-recurring gain of $555,000 
recognized by the Nations Group related to the sale of a donor center.
<TABLE>
<CAPTION>
                                                   Nine Months Ended
                                                   -----------------
                                              <C>            <C>         
<S>
(In thousands, except per share data)          Sept. 29,      Sept. 28,
                                                 1996           1997
                                                 ----           ----
Net sales                                       $52,826       $75,693

Income before extraordinary loss                 $5,864        $8,678
Income before extraordinary loss per share        $0.42         $0.56
</TABLE>

     On August 13, 1997, the Company acquired certain assets of three non-
specialty donor centers from Seracare, Inc. in exchange for two non-
specialty donor centers operated by the Company and $250,000 cash (the 
"Seracare Exchange").  The operations of two of the donor centers acquired 
were consolidated with the operations of two donor centers already 
operated by the Company in the same geographic location.  

     On September 23, 1997, the Company acquired all of the outstanding 
capital stock of Bio-Lab, Inc. and Med-Lab, Inc. for $8.5 million, before 
recording certain transaction costs and subject to adjustment based on the 
net assets of the companies acquired, as defined, as of the closing date 
(the "Bio-Lab Acquisition").  The purchase price consisted of $5.95 
million in cash and the issuance to one of the sellers of a $2.55 million 
convertible subordinated promissory note due September 23, 2000 (the "Bio-
Lab Note").  The Company financed the $5.95 million of cash paid at 
closing with cash on hand.

     The Nations Acquisition, the Bio-Lab Acquisition and the Seracare 
Exchange were accounted for as purchases in accordance with APB No. 16, 
and accordingly, the purchase prices have been preliminarily allocated to 
the net tangible and identifiable intangible assets acquired based on 
their estimated fair values as of the acquisition dates.  The excess of 
the cost over the estimated fair values of the net tangible and 
identifiable intangible assets acquired has been preliminarily allocated 
to goodwill. 
                                   7

<PAGE>
            
4.  LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

Long-term debt and capital lease obligations at December 29, 1996 and
September 28, 1997 consisted of the following (in thousands):
<TABLE>
<CAPTION>
                                                Dec. 29,    Sept. 28,
                                                  1996        1997
                                                  ----        ----
                                                <C>         <C>
<S>
$4.0 million convertible subordinated note 
payable, interest at 4.5% payable quarterly 
commencing July 1, 1997; maturing on 
March 7, 2002                                    $   --      $4,000

$3.5 million convertible subordinated note 
payable, interest payable monthly at 5.25%;
principal payable on April 9, 1997                3,500          --

$2.55 million convertible subordinated note 
payable, interest payable quarterly at 4.0%; 
principal payable on September 23, 2000	              --       2,550

Capital lease obligations at varying interest 
rates and terms, maturing through 2001              200         154

Other notes at varying interest rates and 
terms maturing through March 2000                    14          482
                                                  -----        -----
                                                  3,714        7,186
Less current maturities                           3,567        2,616
                                                  -----        -----
                                                   $147       $4,570
                                                  =====       ======
</TABLE>

     In connection with the Nations Acquisition, the Company issued one 
of the sellers a $4.0 million convertible subordinated note (the "Nations 
Note") maturing on March 7, 2002.  The Nations Note bears interest at a 
rate of 4.5% per annum through the earlier of the date of repayment, 
conversion or March 7, 2000.  On or after March 7, 1998, 1999 and 2000, 
the payee may call for repayment  (or conversion into shares of the 
Company's common stock) one-third, two-thirds and all, respectively, of 
the then outstanding principal amount of the Nations Note, subject to 
certain restrictions as to minimum amounts and frequency.  The Nations 
Note is convertible at the option of the holder at a conversion price of 
$18.76 per share, the fair market value of the Company's common stock at 
the date of issuance.  The Company has the right to call the Nations Note 
at any time commencing March 7, 2000, or earlier if certain events occur.
 
     In connection with the Bio-Lab Acquisition, the Company issued one of 
the sellers the Bio-Lab Note,  which bears interest at a rate of 4.0% per 
annum through the earlier of the date of repayment or conversion.  
Commencing September 23, 1999, the Bio-Lab Note may be prepaid, in whole 
or in part, upon not less than thirty days prior written notice by the 
Company.  The Company may also prepay the note prior to September 23, 
1999, in whole or in part, at a premium of the then outstanding principal 
balance if certain events occur.  On or after September 23, 1998, 1999 and 
2000, the payee may call for repayment  (or conversion into shares of the 
Company's common stock) one-third, two-thirds and all, respectively, of 
the then outstanding principal amount of the Bio-Lab Note, subject to 
certain restrictions as to minimum amounts and frequency.  The Bio-Lab 
Note is convertible at the option of the holder at a conversion price of 
$20.97 per share, the fair market value of the Company's stock at the date 
of issuance.

                                   8 
<PAGE>

5.  RECENT ACCOUNTING PRONOUNCEMENTS

     In February 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 128, "Earnings per Share" 
("SFAS No. 128"), which will become effective for the Company in its 
fiscal quarter and year ending December 28, 1997.  This statement 
establishes new, simplified standards for computing and presenting 
earnings per share.  SFAS No. 128 replaces the traditional presentations 
of primary earnings per share and fully diluted earnings per share with 
basic earnings per share and diluted earnings per share, respectively.  
Basic earnings per share excludes the dilutive effect of stock options, 
warrants, convertible indebtedness and similar instruments while diluted 
earnings per share is computed similarly to fully diluted earnings per 
share.  Pro forma earnings per share, assuming the adoption of SFAS No. 
128 for the periods indicated below, is as follows:

<TABLE>
<CAPTION>
                             Nine months ended       Three months ended
                             ------------------------------------------
                            Sept. 29,  Sept. 28,  Sept. 29,  Sept. 28,
                              1996       1997       1996       1997
                              ----       ----       ----       ----
                              <C>        <C>        <C>        <C>
<S>
Basic earnings per share-
pro forma                    $0.45      $0.60      $0.16      $0.22

Diluted earnings per share-
pro forma                    $0.42      $0.57      $0.15      $0.20

</TABLE>

     In July 1997, the FASB issued Statement of Financial Accounting 
Standards No. 130, "Reporting Comprehensive Income" ("SFAS No. 130"), 
which establishes standards for reporting and display of "comprehensive 
income", which is the total of net income and all other non-owner changes 
in stockholders' equity, and its components.  The Company is in the 
process of evaluating SFAS No. 130 and its impact and will adopt the 
standard in the first quarter of its 1998 fiscal year.

     In July 1997, the FASB issued Statement of Financial Accounting 
Standards No. 131, "Disclosures About Segments of an Enterprise and 
Related Information" ("SFAS No. 131").  SFAS No. 131, which supersedes 
SFAS Nos. 14, 18, 24 and 30, establishes new standards for segment 
reporting, using the "management approach," in which reportable segments 
are based on the same criteria on which management disaggregates a 
business for making operating decisions and assessing performance. The 
Company is in the process of evaluating SFAS No. 131 and its impact and 
will adopt the standard for its 1998 fiscal year.

6.	SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES

     The following non-cash investing and financing transactions were 
entered into during the nine months ended September 29, 1996 and 
September 28, 1997 (in thousands):

<TABLE>
<CAPTION>
                                                 Nine Months Ended
                                                 -----------------
                                              Sept. 29,      Sept. 28,
                                                1996           1997
                                                ----           ----
                                              <C>             <C>
<S>
Debt assumption                                $1,154         $  --
Forgiveness of note receivable in 
 connection with business acquisition             500            --
Issuance of promissory notes as acquisition 
 consideration                                     --         6,650
Conversion of subordinated note payable into 
 common stock                                      --         3,500
</TABLE>

                                   9
<PAGE>

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

Forward Looking Statements

     This Form 10-Q contains certain "forward looking statements" within 
the meaning of the Private Securities Litigation Reform Act of 1995, which 
generally can be identified by the use of terms such as "may," "expect," 
"anticipate," "intend," "estimate," "believe," "continue" or similar 
variations or the negative thereof. These forward looking statements 
include, without limitation, statements regarding the effect of changing 
regulatory and industry standards; the level of capital expenditures 
during the following twelve months; the sufficiency of capital and 
liquidity to fund operations, capital expenditures and the Company's 
acquisition strategy; and the use of proceeds from the Company's Revolver. 
These forward looking statements are subject to certain risks and 
uncertainties, such as changes in the economy or market conditions, 
changes in government policy or regulations and other factors discussed in 
Part I of the Company's Annual Report on Form 10-K for the year ended 
December 29, 1996, which could cause actual results to differ materially.

Overview and Recent Developments

     The Company is a leading worldwide provider of specialty human 
antibody-based products and services to major healthcare companies.  As 
of October 24, 1997, the Company operated 59 donor centers, 16 of which 
specialize in specialty antibody collections and 43 of which primarily 
collect IVIG antibodies from which a number of products are produced.  
The Company also operates two Food and Drug Administration ("FDA") 
licensed monoclonal antibody manufacturing facilities in Scotland and a 
laboratory testing facility in Clarkston (Atlanta), Georgia.

     In February 1997, the Company declared a 3-for-2 split of its common 
stock effected in the form of a 50% stock dividend paid on February 28, 
1997 to holders of record as of February 10, 1997.  All share and per 
share amounts herein have been retroactively adjusted to reflect such 
split.	

     On March 6, 1997, the Company acquired the Nations Group, which 
operated 16 non-specialty donor centers.  The Company paid approximately 
$14.2 million, before recording certain transaction costs and subject to 
adjustment based primarily on the post-acquisition performance of the 
businesses acquired over the 14-month period subsequent to closing.  The 
purchase price consisted of approximately $10.2 million of cash and the 
issuance of the Nations Note (See Note 4 of Notes to Condensed 
Consolidated Financial Statements).  The Company financed the $10.2 
million of cash paid at closing with cash on hand.  

     On August 13, 1997, the Company acquired certain assets of three non-
specialty donor centers from Seracare, Inc. in exchange for two non-
specialty donor centers operated by the Company and $250,000 in cash (the 
"Seracare Exchange"). The operations of two of the donor centers acquired 
were consolidated with the operations of two donor centers already 
operated by the Company in the same geographic location.

     On September 9, 1997, the Company sold 950,000 shares of common 
stock, at a price of $19.50 per share, in a private placement transaction 
made in reliance upon the exemption from the registration requirements of 
the Securities Act of 1933, as amended, afforded by Section 4(2) thereof. 
The net proceeds to the Company from the sale of the shares were 
approximately $17.5 million, and will be used for general corporate 
purposes, including strategic acquisitions and investments.  Pursuant to 
the same transaction, one of the Company's stockholders sold 250,000 
shares of common stock; the Company received none of the proceeds from 
this sale. A registration statement relating to the resale by the 
purchasers of the shares of common stock sold by the Company was declared 
effective by the Securities and Exchange Commission on September 3, 1997.

                                   10
<PAGE>

     On September 23, 1997, the Company acquired Bio-Lab, Inc. and Med-
Lab, Inc., which each operated one specialty donor center.  The Company 
paid $8.5 million, before recording certain transaction costs and subject 
to adjustment based on the net assets of the acquired companies, as 
defined, as of the closing date.  The purchase price consisted of $6.0 
million of cash and the issuance to one of the sellers of the Bio-Lab Note 
(See Note 4 of Notes to Condensed Consolidated Financial Statements).  The 
Company financed the $6.0 million of cash paid at closing with cash on 
hand.

     Increasing regulatory scrutiny continues to be a significant factor 
affecting the industry, resulting in more detailed and frequent 
inspections by the FDA and a potentially greater number of observations 
per inspection, deficiency notices, warning letters, product recalls and 
temporary or permanent closures of facilities.  One factor contributing to 
this trend is the FDA's implementation of a new approach to inspections of 
donor centers and manufacturing facilities, including the Company's 
customers, entitled "Team Biologics".  Under this new approach, 
substantially all inspections will be performed by highly trained field 
investigators who will focus more extensively on the FDA's current good 
manufacturing practices (GMP) and the Quality Assurance guidelines adopted 
by the FDA in 1995.  On occasion, the Company has received notifications 
and deficiency notices from the FDA of possible deficiencies in the 
Company's compliance with FDA regulations or its own internal standard 
operating procedures.  To date, the Company believes that it has 
adequately addressed or corrected such deficiencies.

     The Company is also subject to numerous industry- and customer-
mandated standards.  Industry trade organizations, such as the American 
Blood Resources Association ("ABRA"), and the Company's customers 
continually evaluate their practices and procedures regarding new 
information or public concerns over blood safety and diseases which may be 
transmitted from donors through their blood or blood components.  Based 
upon such evaluation, a certain portion of the population may be 
prohibited from donating in the future, or certain new testing and 
screening procedures may be required to be performed with respect to 
certain donors.  One specific concern currently facing the industry is
Creutzfeld-Jakob disease ("CJD"), a fatal disease occurring sporadically 
in the world at an incidence of about one per million population per year 
and which has been reportedly linked in some cases to bovine spongiform 
encephalopathy, also know as "mad cow disease".  While no acceptable 
testing or screening procedure currently exists to detect CJD, it has 
generally been found to have a higher incidence in the older population.  
In response to this concern, effective in April 1997 and with respect to 
certain products, one of the Company's customers ceased accepting 
antibodies collected from donors over the age of 59.  Another standard 
voluntarily accepted by the industry which was adopted effective July 1, 
1997 relates to the acceptance of new donors.  In an effort to further 
minimize the potential that infected plasma could enter the manufacturing 
process undetected, all new (i.e., first-time) donors' plasma is excluded 
from further manufacture until a negative set of test results is also 
obtained on a second donation within six months, essentially precluding 
one-time donations.  Although the Company does not believe that the loss 
of donors resulting from these new standards will have a material 
impact on its current operating results, there is no assurance that the 
long-term impact of these standards, or the imposition of other blood 
safety measures, will not have a material adverse effect on future 
operations.  
                                   11
<PAGE>

Results of Operations

     The following table sets forth certain operating data of the Company 
as a percentage of net sales for the periods indicated below:
<TABLE>
<CAPTION>
                                Nine months ended   Three months ended
                                --------------------------------------
                             Sept. 29,  Sept. 28,   Sept. 29,  Sept. 28,
                               1996       1997        1996       1997
                              -------    -------     ------     ------
                              <C>        <C>         <C>        <C>        
<S>
Net sales                      100.0%     100.0%     100.0%     100.0%
Gross profit                    41.4%      36.5%      42.0%      36.6%
Selling, general and 
 administrative expenses        14.6%      13.3%      14.2%      12.8%
Product development expenses     3.6%       2.0%       3.5%       1.8%
Income before extraordinary 
 loss                           12.7%      12.0%      14.0%      12.1%
Net income                      12.6%      12.0%      14.0%      12.1%

</TABLE>

Three months ended September 29, 1996 and September 28, 1997

     Net sales increased 68.2%, or $10.8 million, from $15.8 million in 
1996 to $26.6 million in 1997. Of the increase, approximately $5.0 million 
was attributable to the acquisition of Simi Biologicals, Inc. ("Simi") in 
December 1996 and the Nations Acquisition in March 1997.  The remainder of 
the increase, or approximately $5.8 million, was primarily attributable to 
additional net sales of anti-D antibodies, IVIG antibodies, anti-RSV (an 
antibody used to treat respiratory syncytial virus, a new product first 
shipped during 1997), anti-hepatitis antibodies and monoclonal antibodies 
used for blood typing reagents.  The Company's net sales of therapeutic 
antibodies increased 80.4%, while net sales of diagnostic antibodies 
increased 29.6%.

     Gross profit increased 46.6%, or $3.1 million, from $6.6 million in 
1996 to $9.7 million in 1997.  Of the increase, approximately $2.6 million 
was primarily attributable to increased net sales of, and higher margins 
on, anti-D antibodies and IVIG antibodies, while the remainder was 
primarily attributable to the Nations Acquisition and, to a lesser extent, 
the acquisition of Simi.  Gross profit, as a percentage of net sales 
("gross margin") decreased from 42.0% to 36.6%, primarily due to an 
increase in net sales of relatively lower-margin IVIG antibodies as a 
percentage of total net sales from approximately 35% in 1996 to 47% in 
1997.  Gross margins from the Company's specialty antibody products 
remained consistent with the similar period of 1996.

     Selling, general and administrative expenses increased 51.9%, or $1.2 
million, from $2.2 million in 1996 to $3.4 million in 1997.  The increase 
was primarily attributable to a larger sales, financial, recruiting and, 
in particular, regulatory infrastructure needed to support the Company's 
acquisitions and growth.  However, selling, general and administrative 
expenses, as a percentage of net sales, decreased from 14.2% to 12.8%. 

     Product development expenses, which relate primarily to the 
development of monoclonal antibodies for blood typing reagents and for 
therapeutic products, decreased 14.7%, or $82,000, from $556,000 in 1996 
to $474,000 in 1997, primarily due to the timing of certain expenditures 
relating to the Company's development of a monoclonal anti-D antibody for 
therapeutic purposes.

     Net interest income increased 76.3%, or $58,000, from $76,000 in 1996 
to $134,000 in 1997, primarily as a result of generally higher cash 
balances and the receipt in September 1997 of approximately $17.5 million 
in net proceeds from a private placement of 950,000 shares of the 
Company's common stock and the subsequent investment of the remaining 
proceeds in short term instruments, offset in part by the additional 
interest expense attributable to the Nations Note.  

                                   12
<PAGE>

     Other expense, net increased 128.6%, or $530,000, from $412,000 in 
1996 to $942,000 in 1997, primarily attributable to the amortization of 
goodwill and other intangible assets relating to the acquisitions of the 
Nations Group and Simi and the write-off of two non-compete agreements 
associated with previous acquisitions.


Nine months ended September 29, 1996 and September 28, 1997

     Net sales increased 53.6%, or $25.3 million, from $47.3 million in 
1996 to $72.6 million in 1997.  Of the increase, approximately $13.4 
million was attributable to the Nations Acquisition in March 1997 and the 
acquisition of Simi in December 1996 and, to a lesser extent, the full-
period effect of acquisitions completed during the first nine months of 
1996.  The remainder of the increase, or approximately $11.9 million, was 
attributable to increased sales of anti-D and, to a lesser extent, 
increased sales of monoclonal antibodies used for blood typing reagents, 
IVIG antibodies and the introduction of anti-RSV. Consolidated net sales 
of the Company's therapeutic and diagnostic products increased 62.4% and 
25.1%, respectively.

     Gross profit increased 35.3%, or $6.9 million, from $19.6 million in 
1996 to $26.5 million in 1997.  Of the increase, approximately $5.4 
million was the result of increased sales of, and higher margins on, anti-
D and, to a lesser extent, increased sales of IVIG and monoclonal antibody 
products.  The remainder of the increase, or approximately $1.5 million, 
was attributable to the full-period effect of the Nations Acquisition in 
March 1997 and, to a lesser extent, acquisitions completed during 1996. 
Gross margins decreased from 41.4% for the first nine months of 1996 to 
36.5% for the comparable period of 1997, primarily attributable to an 
increase in net sales of relatively lower-margin IVIG antibodies as a 
percentage of total net sales from approximately 34% in 1996 to 45% in 
1997 and initial shipments during 1997 from two donor centers approved 
during 1997 whose cost of sales included a higher amount of non-recurring 
start up expenses, offset by increased margins on anti-D.  

     Selling, general and administrative expenses increased 39.8%, or $2.7 
million, from $6.9 million in 1996 to $9.6 million in 1997. The increase 
was primarily attributable to a larger sales, financial, recruiting and, 
in particular, regulatory infrastructure needed to support the Company's 
acquisitions and growth.  However, selling, general and administrative 
expenses, as a percentage of net sales, decreased from 14.6% to 13.3%.

     Product development expenses decreased $210,000, or 12.6%, from $1.7 
million in the first nine months of 1996 to $1.5 million in the current 
year, primarily due to the timing of certain expenditures relating to the 
Company's development of a monoclonal anti-D antibody for therapeutic 
purposes.

     Interest expense (income), net decreased 220.5%, or $655,000, from 
net interest expense of $297,000 in 1996 to net interest income of 
$358,000 in 1997 as a result of the retirement of approximately $7.9 
million in debt in June 1996 with proceeds from a secondary stock offering 
and the subsequent investment of the remaining proceeds in short term 
instruments and the receipt in September 1997 of approximately $17.5 
million in net proceeds from a private placement sale of 950,000 shares of 
the Company's common stock, offset in part by the additional interest 
expense attributable to the Nations Note.  

     Other expense, net increased 56.0%, or $725,000, from $1.3 million in 
1996 to $2.0 million in 1997, due primarily to the amortization of 
goodwill and other intangible assets resulting from acquisitions completed 
during 1996, the completion of the Nations Acquisition in the first 
quarter of 1997 and the write-off of two non-compete agreements associated 
with previous acquisitions.


                                   13
<PAGE>

Liquidity and Capital Resources

     As of September 28, 1997, the Company had cash and cash equivalents 
and working capital of $27.9 million and $33.8 million, respectively.  
Cash and cash equivalents increased $6.7 million from December 29, 1996, 
primarily from net proceeds of approximately $17.5 million from the sale 
of 950,000 shares of the Company's common stock and $7.1 million of cash 
provided by operations, offset by the use of approximately $10.2 million 
of cash on hand for the Nations Acquisition in March 1997, $5.95 million 
for the Bio-Lab Acquisition in September 1997 and $3.1 million of capital 
expenditures.  Pending further use, the Company currently invests all 
excess cash in highly liquid, short-term instruments with original 
maturities of three months or less.

     Net cash provided by operations for the nine months ended September 
28, 1997 and September 29, 1996 was approximately $7.1 million and $5.1 
million, respectively, or an increase of approximately $1.9 million.  The 
increase in cash flow from operations was primarily attributable to 
increased net income of $2.8 million, $1.2 million of additional non-cash 
depreciation and amortization expense and $263,000 of additional non-cash 
deferred income tax provision, offset by an increase in operating working 
capital cash outflows of approximately $2.3 million.  The increased cash 
used for operating working capital was primarily attributable to a larger 
increase in accounts receivable of $4.0 million, offset by a larger 
increase in accrued expenses of $1.2 million.  The larger increase in 
accounts receivable was primarily a result of increased sales during the 
latter part of the third quarter.

     Net cash used in investing activities for the nine months ended 
September 28, 1997 was $19.0 million as compared to $7.3 million for the 
nine months ended September 29, 1996.  Cash used in investing activities 
in the first nine months of 1996 was primarily related to the February 
1996 acquisition of Am-Rho Laboratories, Inc. for approximately $1.1 
million in cash, the March 1996 acquisition of Southeastern Biologics, 
Inc. and its affiliates for approximately $3.6 million in cash and capital 
expenditures of approximately $2.5 million.  Cash used in investing 
activities in 1997 primarily consisted of approximately $10.2 million in 
cash used for the Nations Acquisition, $5.95 million in cash used for the 
Bio-Lab Acquisition and capital expenditures of approximately $3.1 million. 

     Net cash provided by financing activities, including the effects of 
changes in foreign currency rates, for the nine months ended September 28, 
1997 was approximately $18.7 million as compared to $17.6 million for the 
comparable period of 1996. Net cash provided by financing activities in 
1996 was primarily related to approximately $21.7 million in net proceeds 
to the Company from a secondary stock offering in June 1996, offset in 
part by net principal payments on the Revolver (as defined below) and 
other indebtedness.  Net cash provided by financing activities during 1997 
was primarily related to the receipt of approximately $17.5 million of net 
proceeds from a private placement sale of 950,000 shares of the Company's 
common stock and, to a lesser extent, proceeds from the exercise of stock 
options.

     Capital expenditures relate primarily to the Company's facilities and 
related equipment, the Company's information system and the development of  
additional specialty and non-specialty antibody donor centers.  During the 
first nine months of 1997, capital expenditures were approximately $3.1 
million, consisting primarily of expenditures related to the expansion of 
the Company's laboratory testing facility and international headquarters 
in Clarkston (Atlanta), Georgia, the expansion of the Company's monoclonal 
manufacturing facility in the United Kingdom and the upgrading of the 
Company's information system.

     During the next twelve months, the Company anticipates that it will 
maintain current levels of capital expenditures.  The major factors 
affecting the level of capital expenditures include the upgrading of the 
Company's information systems to support its planned growth and the 
development, relocation and upgrading of specialty and non-specialty donor 
centers to increase production capabilities and efficiencies.

                                   14                             
<PAGE>

     The Company has a revolving credit facility with a bank providing for 
maximum borrowings of $20 million, of which $15 million may be used for 
acquisitions (the "Revolver").  The Company anticipates using the proceeds 
from the Revolver primarily to fund acquisitions.  There were no amounts 
outstanding under the Revolver at December 29, 1996 or September 28, 1997.  
Subsequent to quarter-end, in October 1997, the Company and its lenders 
entered into an amended agreement, which, among other items, increased the 
total borrowing capacity under the Revolver to $35 million, of which $30 
million may be used for acquisitions.

     The Company believes that existing cash balances, cash generated from 
operations and the borrowing capacity available under the Revolver are 
sufficient to fund operations and anticipated capital expenditures for at 
least 12 months.  As the Company continues to evaluate acquisition and 
growth opportunities, it anticipates that additional funding may be 
necessary.

     The Company is in the third year of two five-year supply contracts 
with Bayer Corporation ("Bayer") for the sale of antibodies for IVIG.  The 
contracts provide for successive one-year renewals, unless notice is given 
by either party, and commitments from Bayer to purchase specified amounts 
on an escalating basis over the five-year term. The revenues provided 
under the contracts are significant and represented approximately 26% of 
the Company's revenues for the nine months ended September 28, 1997. 
Effective July 1, 1997, the Company negotiated a price increase under 
these contracts.  In addition, in connection with the Nations Acquisition, 
the Company acquired several supply contracts with Alpha Therapeutic 
Corporation for the sale of IVIG antibodies collected at 12 of the 16 
donor centers operated by the Nations Group and an additional contract 
with Bayer for the sale of IVIG antibodies collected at the remaining four 
donor centers.  Early termination of the contracts could adversely affect 
the Company. 

     On January 15, 1997, the Company entered into an amended agreement 
with the holders of a 9% convertible subordinated note issued in the 
principal amount of $3.5 million in connection with one of its 
acquisitions.  Under the terms of the amendment, the interest rate was 
decreased to 5.25%.  Concurrent with the amendment, the Company called the 
note for prepayment on April 9, 1997 and the holders of the note exercised 
their conversion rights, resulting in the issuance of 375,000 shares of 
the Company's common stock on April 2, 1997.




                                   15
<PAGE>

PART II.  
--------

Item 2.  Changes in Securities

       c.  September 9, 1997, the Company completed the sale of 950,000 
           shares of its common stock pursuant to a private placement 
           transaction with institutional and accredited purchasers.  The 
           transaction was made in reliance upon the exemption from 
           registration provisions under the Securities Act of 1933, as 
           amended, as afforded by Section 4(2) thereof.  On September 23, 
           1997, in connection with the Bio-Lab Acquisition, the Company 
           issued the Bio-Lab Note, as fully described in Note 4 of the 
           Notes to Consolidated Financial Statements (Unaudited) contained 
           elsewhere herein.  The Bio-Lab Note was issued to one of the 
           sellers who was an accredited investor.  This transaction was 
           made in reliance upon the exemption from registration provisions 
           under the Securities Act of 1933, as amended, as afforded by 
           Section 4(2) thereof.

Item 6.  Exhibits and Reports on Form 8-K

      a.  Exhibits:

          Exhibit 11:  Statement Re:  Computation of Per Share Earnings
          Exhibit 27:  Financial Data Schedule

      b.  Reports on Form 8-K:

         The Company filed a Current Report on Form 8-K on August 18, 
         1997, in which it announced under Item 5-Other Events, that it
         had entered into an agreement for the sale of 950,000 shares of
         its common stock in a private placement transaction. The Company
         also announced that pursuant to the same agreement, one of its
         shareholders had agreed to sell 250,000 shares.  On September 9,
         1997, the Company filed a Current Report on Form 8-K in which it 
         announced under Item 5-Other Events, that it had completed the
         the aforementioned private placement.

                               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.


                                     SEROLOGICALS CORPORATION
                                     ------------------------
                                     (Registrant)


Date:	November 10, 1997               By:   /s/  Russell H. Plumb//
                                           --------------------------------
                                           Russell H. Plumb
                                           Vice President/Chief Financial
                                           Officer (Principal Financial and
                                           Accounting Officer) 

                                   16