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 29, 1996
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.
                  Ste. 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 31, 1996
Common Stock, $.01 par value per share                9,407,345

<PAGE>
                                     INDEX

                   SEROLOGICALS CORPORATION AND SUBSIDIARIES


PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets -
     December 31, 1995 and September 29, 1996......................    3

Condensed Consolidated Statements of Income - 
     Nine and Three Months ended October 1, 1995
     and September 29, 1996........................................    4

Condensed Consolidated Statements of Cash Flows -
     Nine Months Ended October 1, 1995 and September 29, 1996......    5

Notes to Condensed Consolidated Financial Statements...............  6-8


Item 2.  Management's Discussion and Analysis of Financial 
Condition and Results of Operations................................ 9-14

PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K...........................   15


SIGNATURES..........................................................   15






<PAGE>

PART I.  FINANCIAL INFORMATION
Item 1. Financial Statements

                   SEROLOGICALS CORPORATION AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                          December 31,      September 29,
                                              1995                 1996
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                 $2,887,225         $18,257,853
Trade accounts receivable, net             5,607,840           6,020,083
Inventories                                3,865,635           6,012,691
Other current assets                         734,760           1,172,127
                                          ----------          ----------
Total current assets                      13,095,460          31,462,754
                                          ----------          ----------
PROPERTY AND EQUIPMENT, net                6,595,410           8,454,901
                                          ----------          ----------
OTHER ASSETS:
Goodwill, net                             27,960,637          31,482,968
FDA Licenses                               1,812,839           2,538,035
Non-compete agreements, net                  544,475             924,813
Other                                        315,004             441,648
                                          ----------          ----------
                                          30,632,955          35,387,464
                                          ----------          ----------
                                         $50,323,825         $75,305,119
                                          ==========          ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt
   and capital lease obligations            $272,255             $74,311
Accounts payable                           2,240,215           1,642,161
Accrued liabilities                        4,331,704           4,409,293
Deferred revenue                              77,650             305,511
                                           ---------           ---------
Total current liabilities                  6,921,824           6,431,276
                                           ---------           ---------
LONG-TERM DEBT AND CAPITAL LEASE
 OBLIGATIONS, less current maturities      6,750,945           3,661,126
                                           ---------           ---------
OTHER LIABILITIES                             58,390              34,112
                                           ---------           ---------
STOCKHOLDERS' EQUITY
Common stock, $.01 par value;
 30,000,000 shares authorized,
 8,406,251 shares issued and outstanding
 at December 31, 1995 and 9,407,345
 shares issued and outstanding at 
 September 29, 1996                           84,063              94,073
Additional paid-in capital                29,339,537          51,945,241
Retained earnings                          7,131,915          13,099,586
Cumulative translation adjustment             37,151              39,705
                                          ----------          ----------
Total stockholders' equity                36,592,666          65,178,605
                                          ----------          ----------
                                         $50,323,825         $75,305,119
                                          ==========          ==========
            The accompanying notes are an integral part of these
                        consolidated balance sheets.

                                     Page 3

<PAGE>

                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
 
                               Nine Months Ended         Three Months Ended
                            ----------------------     ----------------------
                             Oct. 1,     Sept. 29,       Oct. 1,   Sept. 29,
                              1995         1996           1995       1996
                            ----------   ----------    ----------  ----------

Net sales                  $38,317,510  $47,258,891   $13,609,878 $15,818,716
Costs and expenses:
Cost of sales               23,026,340   27,686,252     8,326,708   9,177,168
Selling, general, and 
 administrative expenses     6,124,023    6,880,080     1,860,083   2,248,412
Product development expenses 1,507,982    1,685,832       400,278     555,663
Interest expense (income)    1,892,737      296,795       137,271     (75,813)
Other expense, net             989,835    1,293,667       320,831     411,687
                             ---------    ---------     ---------   ---------
Income before income taxes  
 and extraordinary loss      4,776,593    9,416,265     2,564,707   3,501,599
Provision for income taxes   1,827,616    3,434,387       932,978   1,293,588
                             ---------    ---------     ---------   ---------
Income before extraordinary
 loss                        2,948,977    5,981,878     1,631,729   2,208,011
Extraordinary loss on early
 retirement of debt, net of
 income taxes               (1,822,988)     (14,206)         -           -
                             ---------    ---------     ---------   ---------
Net income                   1,125,989    5,967,672     1,631,729   2,208,011
Accretion of common stock
 put warrants                   45,556         -             -           -		
                             ---------    ---------     ---------   ---------
Net income available for
 common stockholders        $1,080,433   $5,967,672    $1,631,729  $2,208,011
                             =========    =========     =========   =========
Net income per common share:
 Income before
  extraordinary loss             $0.40        $0.64         $0.19       $0.22
  Extraordinary loss             (0.25)           -             -           -
                                 -----        -----         -----       -----
Net income available for
   common stockholders           $0.15        $0.64         $0.19       $0.22
                                 =====        =====         =====       =====
Weighted average common and
 common equivalent shares
 outstanding                 7,242,840    9,381,142     8,722,682  10,010,836

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

                                     Page 4
<PAGE>
                   SEROLOGICALS CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                      Nine Months Ended
                                               ------------------------------
                                               October 1,       September 29,
                                                 1995                1996
                                               ----------       -------------
Operating activities:
Net income                                     $1,125,989          $5,967,672
                                               ----------          ----------
Adjustments to reconcile net income to 
 net cash provided by operating activities:

Depreciation and amortization                   2,041,470           2,506,021
Deferred income tax provision (benefit)            27,486             (60,806)
Extraordinary loss, net                         1,822,988              14,206
Non-cash compensation expense                     346,500                   -
Payments of corporate relocation expenses        (267,184)             (6,250)
	
Changes in operating assets and liabilities, 
 net of acquired working capital

Trade accounts receivable, net                 (2,658,476)           (188,881)
Inventories                                        67,174          (1,873,901)
Other current assets                             (318,731)           (422,206)
Accounts payable                                  422,912            (721,812)
Accrued liabilities                             1,120,601             202,239
Deferred revenue                                   51,844             227,341
                                               ----------          ----------
Total adjustments                               2,656,584            (324,049)
                                               ----------          ----------
   Net cash provided by operating activities    3,782,573           5,643,623
                                               ----------          ----------
Investing activities:
Purchases of property and equipment              (968,793)         (2,459,410)
Purchase of businesses                               -             (6,292,304)
Other                                            (833,917)           (250,169)
                                               ----------          ----------
   Net cash used in investing activities       (1,802,710)         (9,001,883)
                                               ----------          ----------
Financing activities:
Proceeds from revolving line of credit          6,503,739           7,796,047
Payments on revolving line of credit           (4,445,575)         (9,854,803)
Proceeds from long-term debt and capital
 lease obligations                             21,747,699              89,100
Payments on long-term debt and capital
 lease obligations                            (54,722,652)         (1,339,221)
Payment of debt issuance costs                     13,692                -
Proceeds from issuance of stock                24,577,618          21,670,120
Proceeds from exercise of stock options              -                345,604
                                               ----------          ----------
 Net cash (used in) provided by
  financing activities                         (6,325,479)         18,706,847
                                               ----------          ----------
Effect of changes in foreign exchange rate         29,917              22,041
                                               ----------          ----------
	Net (decrease) increase in cash
  and cash equivalents                         (4,315,699)         15,370,628
Cash and cash equivalents,
 beginning of period                            6,900,854           2,887,225			
                                               ----------          ----------
Cash and cash equivalents, end of period       $2,585,155         $18,257,853
                                               ==========          ==========
			
Supplemental Disclosures:			
Interest Paid                                  $1,973,912            $472,561
Taxes Paid                                     $1,150,457          $3,648,702

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

                                     Page 5
<PAGE>
                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
                                  (UNAUDITED)

1.     BASIS OF PRESENTATION
     The accompanying unaudited condensed consolidated financial statements 
include the accounts of Serologicals Corporation (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 with 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 the management of the Company, 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 31, 1995 and the notes 
thereto included in the Company's Annual Report on Form 10-K for the year 
ended December 31, 1995.  Furthermore, certain reclassifications have been 
made to the 1995 financial statements to be consistent with the 1996 
financial statement presentation.

2.     ORGANIZATION AND BUSINESS OPERATIONS
     The Company is a leading worldwide provider of human antibody-based
products and services to major healthcare companies.  Through the Company's 
network of 39 donor centers, it collects, characterizes and provides antibody 
products that are used as the active ingredients in a number of pharmaceutical 
products. The Company is also engaged in the development, manufacturing and 
sale of monoclonal antibodies at its facilities in the United Kingdom 
("U.K.").

3.     PUBLIC OFFERINGS OF COMMON STOCK
     In June 1995, the Company completed an initial public offering ("IPO") 
of 2.4 million shares of its common stock at $11.50 per share which resulted 
in gross proceeds of $27.6 million (before underwriting discount and other 
offering expenses).  The net proceeds, approximately $24.6 million after 
related expenses, were used to repay long-term debt.  The early retirement of 
this debt resulted in an extraordinary loss of  $1.8 million (net of income 
taxes) due to early retirement costs associated with the $7.5 million 
subordinated note payable and the write-off of debt issuance costs.  In 
connection with the IPO, an additional 1.5 million shares of common stock 
were issued in accordance with the automatic conversion of 12,587 shares of 
the Company's Series A Preferred Stock.  Additionally, the Company recognized 
a non-recurring, non-cash charge of $346,500 ($215,000 net of income taxes) 
for compensation expense related to the acceleration of vesting of an 
officer's stock options at the IPO date.  Put options related to the holders 
of certain warrants were terminated as a result of the IPO due to previous 
agreements between such holders and the Company.  This resulted in a 
reclassification to additional paid-in capital of $2.2 million from Common 
Stock Put Warrants.

     In June 1996, the Company completed an offering (the "Secondary 
Offering") of 2.1 million shares of its common stock at $26.00 per share.  Of
the 2.1 million shares, the Company sold 900,000 shares, which resulted in 
net proceeds of approximately $22.0 million, including proceeds from options 
which were exercised and the resulting shares sold pursuant to the Secondary 
Offering.  The net proceeds were used to retire approximately $7.9 million of 
debt, with the remainder, or approximately $14.1 million, available to the 
Company for general corporate purposes. The Company recognized an 
extraordinary loss of $14,000 (net of income taxes) related to the early 
retirement of debt.
                                     Page 6
<PAGE>

4.     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 convertible preferred stock (using the if-converted 
method) and from stock options and warrants (using the treasury stock method) 
have been included in the computation when dilutive.  For periods prior to 
the IPO, pursuant to the Securities and Exchange Commission Staff Accounting 
Bulletins, common and common equivalent shares issued by the Company at 
prices below the public offering price during the twelve-month period prior 
to the IPO have been included in the calculation as if they were outstanding 
for all periods presented (using the treasury stock method and the IPO price 
of $11.50 per share).  For the periods presented, fully diluted earnings per 
share has not been presented as the effect of including related common 
equivalent shares is not dilutive.


5.  LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
     Long-term debt and capital lease obligations at December 31, 1995 and 
September 29, 1996 consisted of the following:

                                                December 31,   September 29,
                                                   1995             1996
                                                ------------   -------------

$20,000,000 revolving credit facility,
 variable interest rate (7.43% at December 31,
 1995) payable on July 20, 1998                 $2,058,756  $         -

$3,500,000 convertible subordinated note
 payable, interest at 12% and 9% at December 31,
 1995 and September 29, 1996, respectively;
 interest payable monthly, payable on December 23,
 1997 (the "Convertible Note")                      3,500,000    3,500,000

Subordinated note payable with an effective
 interest rate of 16%, principal due in full
 on February 1, 1997; interest at 5% payable
 quarterly (net of unamortized discount of
 $66,773 at December 31, 1995)                        748,552            -

Capital lease obligations at varying interest
 rates and terms, maturing through June 2001          201,674      220,310

Other notes at varying interest rates and terms
 maturing through March 1999 (net of unamortized
 discount of $10,213 at December 31, 1995)            514,218       15,127
                                                    ---------    ---------
                                                    7,023,200    3,735,437
Less current maturities                               272,255       74,311
                                                   ----------   ----------
                                                   $6,750,945   $3,661,126
                                                   ==========   ==========
                                     Page 7
<PAGE>

6.  ACQUISITION OF AM RHO LABORATORIES AND THE SOUTHEASTERN GROUP
     On February 14, 1996, the Company acquired the assets of  Am Rho 
Laboratories, Inc. ("Am Rho") for approximately $1.7 million.  The purchase 
price consisted of  $1.1 million in cash at closing, the assumption of 
certain liabilities and forgiveness of a $500,000 note receivable from Am-
Rho, Inc., the parent of Am-Rho.  The pro forma information provided below 
does not include the actual results of operations of Am Rho prior to February
14, 1996 as the impact of these results was not material.

     On March 6, 1996 the Company, through its subsidiary Seramune, Inc. 
("Seramune"), acquired the stock of Southeastern Biologics, Inc. and Plasma 
Management, Inc. and substantially all of the assets of Concho Biologics, 
Inc. in a single transaction (collectively referred to as the "Southeastern 
Acquisition") for approximately $4.75 million.  The Southeastern Acquisition 
includes a provision for contingent consideration based on the performance of 
the acquired businesses over the 12 months subsequent to closing.  The 
purchase price consisted of $3.6 million in cash and the assumption of $1.1 
million of indebtedness.  The following unaudited data summarizes the pro 
forma results of operations for the nine months ended October 1, 1995 and 
September 29, 1996 as if the Southeastern 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 have been had the transaction actually occurred on the 
date indicated, or what the results of operations may be in the future.


                                                    Nine months ended
                                              -----------------------------
(In thousands, except per share data)         October 1,      September 29,
                                                1995               1996
                                              ----------      -------------
Net sales                                      $41,878            $48,275

Income before extraordinary loss                 2,670              5,912
Income before extraordinary loss
 per common share                                $0.37              $0.63
Net income available for common stockholders       802              5,898
Net income per common share                      $0.12              $0.63


The above acquisitions were accounted for as a purchase in accordance with 
APB No. 16, and accordingly, the purchase price has been preliminarily 
allocated to the net assets acquired based on the estimated fair values as of 
the acquisition date.  The excess of the cost over the estimated fair value 
of the net assets acquired has been allocated to goodwill.

                                    Page 8
<PAGE>

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


     This Quarterly Report contains certain forward-looking statements within 
the meaning of the Private Securities Litigation Reform Act of 1995 
including, without limitation, statements regarding the sufficiency of the 
Company's liquidity and sources of capital.  These forward-looking statements 
are subject to certain risks, uncertainties and other factors which could 
cause actual results to differ materially.  Additional information on factors 
that could potentially affect the Company or its financial results may be 
found in the Company's filings with the Securities and Exchange Commission.

Overview

     The Company, through its wholly-owned subsidiaries, Serologicals, Inc. 
("Serologicals"), Bioscot, Ltd., ("Bioscot") and Seramune, is a leading 
worldwide provider of human antibody-based products and services to major 
healthcare companies.

     As of September 29, 1996, Serologicals operated 13 donor centers that 
specialize in the collection of specialty antibodies.  Bioscot operated two 
FDA-licensed monoclonal antibody manufacturing facilities in Scotland.  
Seramune operated 26 donor centers that collect antibodies for IVIG.

     In June 1995, the Company completed an IPO and issued 2.4 million shares 
of Common Stock at a price of $11.50 per share.  The net proceeds to the 
Company of $24.6 million, plus cash on hand of approximately $400,000, were 
used to retire $7.5 million of subordinated debt and approximately $17.5 
million of borrowings under a term credit facility incurred primarily for the 
Seramune acquisition.  An extraordinary charge of  $1.8 million (net of 
income taxes) was recorded in relation to the early extinguishment of this 
debt and associated debt issuance costs.  Additionally, the Company 
recognized a non-recurring, non-cash charge of $346,500 for compensation 
expense ($215,000 net of income taxes) related to the acceleration of vesting 
of an officer's stock options.
     In July 1995, the Company amended its credit agreement with NationsBank 
of Georgia, N.A. ("NationsBank") and obtained a $20.0 million revolving 
credit facility (the "Revolving Credit Facility") to provide working capital 
and finance future acquisitions, product development and new business 
opportunities.

     In June 1996, the Company completed the Secondary Offering of 2.1 
million shares of its Common Stock at $26.00 per share.  Of the 2.1 million 
shares, the Company sold 900,000 shares, which resulted in net proceeds of 
approximately $22 million, including proceeds from options which were 
exercised and the resulting shares sold pursuant to the Secondary Offering.  
The net proceeds were used to retire approximately $7.9 million of debt, with 
the remainder, or approximately $14.1 million, available to the Company for 
general corporate purposes.  The options which were exercised and sold 
pursuant to the Secondary Offering generated income tax benefits of 
approximately $514,000, which the Company recorded as additional paid in 
capital in the second quarter.  The sale of the remaining 1.2 million shares 
by existing stockholders resulted in net proceeds of $29.5 million to those 
stockholders.

     During the third quarter of 1996, increasing regulatory scrutiny 
continued to be a significant factor in shaping the industry.  This heightened
level of regulatory oversight is creating the need for companies 
in the industry to meet higher operating standards.  The Company believes it 
maintains an adequate regulatory infrastructure and that it is currently 
allocating sufficient resources to meet these industry challenges.
 
                                     Page 9
<PAGE>

Recent Acquisitions

     On October 2, 1995, the Company acquired all of the capital stock of 
Allegheny Biologicals, Inc. ("ABI").  ABI operates two specialty donor 
centers, in Jacksonville, Florida and Pittsburgh, Pennsylvania.  The Company 
paid approximately $2.5 million in cash and also agreed to pay additional 
contingent consideration of up to $500,000 in the future based upon ABI 
achieving certain performance measures.  On February 14, 1996, the Company 
purchased a specialty donor center located in Washington, D.C. and certain 
other assets located in Jacksonville, Florida from Am-Rho.  The purchase 
price consisted of $1.1 million in cash at closing, the assumption of certain 
liabilities and forgiveness of a $500,000 note receivable from Am-Rho Inc., 
the parent of Am-Rho.  On March 6, 1996, the Company acquired all of the 
capital stock of Southeastern Biologics, Inc. and Plasma Management, Inc. and 
the assets of Concho Biologics, Inc. in the Southeastern Acquisition.  The 
purchase price consisted of $3.6 million in cash, the assumption of $1.1 
million of indebtedness and additional contingent consideration to be paid 
based on the performance of the acquired business over the 12 months 
subsequent to the closing.  All of these acquisitions were accounted for 
using the purchase method.

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.

                           Nine months ended          Three months ended
                       -------------------------   --------------------------
                       October 1,  September 29,   October 1,   September 29, 
                         1995         1996            1995          1996
                       ----------  -------------   ----------   -------------
Net sales                100.0%        100.0%        100.0%         100.0%
Gross profit              39.9%         41.4%         38.8%          42.0%
Selling, general and
 administrative costs     16.0%         14.6%         13.7%          14.2%
Product development        3.9%          3.6%          2.9%           3.5%
Income before
 extraordinary loss        7.7%         12.7%         12.0%          14.0%
Net income                 2.8%         12.6%         12.0%          14.0%



Three Months Ended October 1, 1995 and September 29, 1996

     Net sales increased 16.2%, or $2.2 million, from $13.6 million in 1995 
to $15.8 million in 1996.  The increase in net sales was due primarily to 
additional net sales related to recent acquisitions.  Revenues in the third
quarter of 1995 were positively impacted by approximately $754,000 in sales 
which related to production from the first and second quarters of 1995 but 
had not been shipped, or recognized, until the third quarter pending FDA 
licensure at two donor centers.  The Company's net sales of therapeutic 
products increased 20.8% while net sales of diagnostic products increased 
2.8% from the comparable period in the prior year.

     Gross profit increased 25.7%, or $1.3 million, from $5.3 million in 1995 
to $6.6 million in 1996.  The increase resulted primarily from increased 
margins on the Company's specialty antibody products, while $604,000 was 
related to recent acquisitions. Gross profit, as a percentage of net sales, 
increased from 38.8% in 1995 to 42.0% in 1996 due primarily to an increase in 
gross profit from specialty antibodies as a percentage of specialty antibody 
net sales.

     Selling, general and administrative expenses increased 20.8%, or 
$388,000, from $1.9 million in 1995 to $2.2 million in 1996. The increase 
resulted primarily from incremental administrative expenses associated with 
being a public company, the hiring of an additional vice president in 
February 1996 and incremental, on-going general corporate expenses related to 
the acquisition of ABI and the Am Rho and Southeastern Acquisitions.

                                     Page 10
<PAGE>

     Product development expenses increased $156,000, or 38.8%, from $400,000 
in 1995 to $556,000 in 1996.  The increase was primarily attributable to 
increased expenditures related to the development of monoclonal anti-D 
therapeutic antibodies.

     Other expense, net increased 28.3%, or $91,000 from $321,000 in 1995 to 
$412,000 in 1996 due primarily to the amortization of intangible assets as a 
result of the acquisition of ABI in October 1995 and the Am Rho and 
Southeastern Acquisitions in February 1996 and March 1996, respectively.

     Interest expense (income) decreased 155.2%, or $213,000, from $137,000 
in 1995 to ($76,000) in 1996, primarily as a result of the retirement of 
approximately $7.9 million in debt in June, 1996 with a portion of the 
proceeds of the Secondary Offering and the subsequent investment of the 
remaining proceeds.


Nine Months Ended October 1, 1995 and September 29, 1996

     Net sales increased 23.3%, or $8.9 million, from $38.3 million in 1995 
to $47.3 million in 1996.  The increase resulted from $4.9 million of 
additional net sales from recent acquisitions and increased sales of anti-D
and IVIG antibodies. Net sales of the Company's therapeutic products increased
35.9% while net sales of diagnostic products decreased 6.0% from the
comparable period in the prior year.  The decrease in net sales of diagnostic
products was due primarily to reduced shipments of clinical diagnostic
antibodies and polyclonal antibodies used in blood typing reagents during the
first two quarters of 1996.

     Gross profit increased 28.0%, or $4.3 million, from $15.3 million in 
1995 to $19.6 million in 1996.  The increase in gross profit was due largely 
to increased net sales of anti-D and IVIG antibodies, while $1.3 million of 
the increase related to recent acquisitions.  Gross profit, as a percentage 
of net sales, increased from 39.9% in 1995 to 41.4% in 1996 due to an 
increase in the gross profit from specialty antibodies as a percentage of 
specialty antibody net sales, offset in part by an increase in net sales of 
lower margin IVIG antibodies and a decrease in the gross profit from IVIG
antibodies as a percentage of IVIG net sales.

     Selling, general and administrative expenses increased 12.3%, or 
$756,000, from $6.1 million in 1995 to $6.9 million in 1996.  Recurring 
expenses in 1996 increased by 19.1%, or $1.1 million, to $6.9 million from 
$5.8 million, due primarily to incremental administrative expenses associated 
with being a public company, the hiring of an additional vice president in 
February 1996 and incremental, on-going general corporate expenses related to 
the acquisition of ABI and the Am Rho  and Southeastern Acquisitions.  In 
1995, the Company recorded a non-recurring charge of $346,500 for 
compensation expense related to the acceleration of vesting of an officer's 
stock options in connection with the Company's IPO.

     Product development expenses  increased 11.8%, or $178,000, from $1.5 
million in 1995 to $1.7 million in the current year.  The increase was 
primarily attributable to increased expenditures related to the development 
of monoclonal anti-D therapeutic antibodies.

     Other expense, net increased 30.7%, or $304,000, from $1.0 million in 
1995 to $1.3 million in 1996 due primarily to the amortization of intangible 
assets resulting from the acquisition of ABI in October 1995 and the Am Rho 
and Southeastern Acquisitions in February 1996 and March 1996, respectively.

                                     Page 11
<PAGE>

     Interest expense decreased 84.3%, or $1.6 million, from $1.9 
million in 1995 to $297,000 in 1996, primarily as a result of the retirement 
of approximately $25.0 million in debt in June 1995 with proceeds from the 
IPO,  the retirement of approximately $7.9 million of debt in June 1996 with 
a portion of the proceeds from the Secondary Offering and the subsequent 
investment of the remaining proceeds.  

     The provision for income taxes, as a percentage of income before income 
taxes and extraordinary loss, decreased from 38.3% in 1995 to 36.5% in 1996, 
due primarily to an increase in 1996 in tax credits related to research and 
development expenditures and export sales and a tax benefit related to a non-
recurring dividend paid by the Company's foreign subsidiary in the second 
quarter of 1996.  

     The extraordinary loss (net of income taxes) decreased $1.8 million  
from $1.8 million in 1995 to $14,000 in 1996, due to the early extinguishment 
of debt in the second quarter of 1995 associated with the IPO.  Approximately 
$1.4 million of this amount related to the acceleration of the original issue 
discount ("OID") associated with the repayment of subordinated debt.  The 
remainder related to the write-off of the debt issuance cost associated with 
the repayment of debt from IPO proceeds.


Liquidity and Capital Resources

     As of September 29, 1996, the Company had cash and cash equivalents and 
working capital of $18.3 million and $25.0 million, respectively.  Pending 
further use, the Company currently invests all idle 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 October 1, 
1995 was $3.8 million, as compared to $5.6 million for the nine months ended 
September 29, 1996, an increase of $1.8 million.  The increase in cash flow 
from operations was primarily attributable to an increase in income before 
extraordinary items and  the effect of an increase in accounts receivable 
during 1995, primarily due to the  growth in accounts receivable from 
acquisitions and the change in the payment pattern of a significant customer 
from  advance payments for orders to payment after shipment.  The increase in 
cash provided from operations in 1996 was offset in part by an increase in 
inventories in 1996, primarily caused by the need to maintain inventory at
levels required under certain purchase agreements and a decrease in accounts
payable and accrued liabilities, due primarily to significantly higher foreign,
federal and state income tax payments in 1996. 

     Net cash flow used in investing activities for the nine months ended 
October 1, 1995, was $1.8 million as compared to $9.0 million for the nine 
months ended September 29, 1996.  The increase in cash used in investing 
activities is primarily attributable to $6.3 million used for the Am-Rho and 
Southeastern Acquisitions, which occurred in the first quarter of 1996, and 
an increase in capital expenditures of $1.5 million.

     Net cash flow (used in) provided by financing activities, including the 
effects of changes in foreign currency rates, for the nine months ended 
October 1, 1995 was ($6.3 million) as compared to $18.7 million for the nine 
months ended September 29, 1996.  The increase in net cash flow provided by 
financing activities in 1996 related primarily to the Company raising 
approximately $22.0 million in net proceeds from the Secondary Offering in 
June 1996.

     Capital expenditures relate primarily to the Company's facilities, 
related equipment, the acquisition or development of additional specialty and 
non-specialty antibody donor centers, the development of software and 
information systems and the expansion of the Company's monoclonal production 
facility in the U.K.  During the nine months ended October 1, 1995 and 
September 29, 1996, capital expenditures were $969,000 and $2.5 million, 
respectively.  The increase in capital expenditures in 1996 is due primarily 
to the renovation of a number of donor centers, the upgrading of the 
Company's information system and the expansion of the Company's monoclonal 
antibody production facilities in the U.K.

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     During 1996, the Company anticipates a significant increase in capital 
expenditures over prior years' levels.  The major factors affecting this 
increase include (i) the relocation and expansion of the Company's monoclonal
production facilities in Scotland; (ii) upgrading of the Company's 
information systems to support its planned growth; and (iii) the development, 
relocation and upgrading of specialty and non-specialty donor centers to 
increase production capabilities and efficiencies.

     In early 1996, the Company received a grant from a governmental 
authority in Scotland to defray a portion of the expenses associated with the 
relocation and expansion of its monoclonal production facilities.  The grant, 
of up to L580,000, is payable to the Company in three installments over 
approximately three years and the timing and amount of the payments are 
subject to (i) the level of capital expenditures made and (ii) the creation 
of additional jobs at Bioscot.  To date, the Company has not received any 
proceeds from such grants.

     On July 20, 1995, the Company entered into the Revolving Credit Facility 
with NationsBank providing for maximum borrowings of $20.0 million.  The 
Revolving Credit Facility has a three-year term with a variable interest rate 
and provides for a maximum of $15.0 million for future acquisitions.  The 
Company anticipates using the proceeds from the Revolving Credit Facility to 
fund capital expenditures, acquisitions and any increased working capital 
needs.  The amount outstanding under the Revolving Credit Facility was $2.1 
million at December 31, 1995 and $0 at September 29, 1996.

     The Company believes that existing cash balances, cash generated from 
operations and the borrowing capacity available under the Revolving Credit 
Facility are sufficient to fund operations and anticipated capital 
expenditures for at least 12 months and may be used to fund the Company's 
acquisition strategy.

     The Company is in the second year of a five-year supply contract with 
Bayer Corporation ("Bayer") for the sale of antibodies for IVIG.  The 
contract provides 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.  In addition, pursuant to the 
Southeastern Acquisition, the Company acquired a second supply contract with 
Bayer for the sale of antibodies for IVIG, with terms substantially similar 
to those contained in the Company's existing contract with Bayer except as it 
relates to volume levels.  Early termination of these contracts could 
adversely affect the Company's net cash from operations in the short term.

     On January 21, 1996, the Company entered into an amended agreement with 
the holders of the $3.5 million Convertible Note.  Under the terms of the 
amendment, the earliest call date of the note was changed from January 21, 
1996 to January 21, 1997, the interest rate decreased to 9% from 12% and the 
conversion price increased to $14.00 from $10.93 per share of common stock.  
The amended agreement decreases the number of shares issuable at conversion 
from approximately 320,500 shares to 250,000 shares.


Recent Accounting Pronouncements

     In March 1995, the Financial Accounting Standards Board ("FASB") issued 
Statement of Financial Accounting Standards No. 121 ("SFAS 121") "Accounting 
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be 
Disposed Of", which becomes effective for fiscal years beginning after 
December 15, 1995.  SFAS 121 establishes standards for determining when 
impairment losses on long-lived assets have occurred and how impairment 
losses should be measured.  The Company adopted SFAS 121 effective January 1, 
1996.  The financial statement impact of adopting SFAS 121 was not material.

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     In October 1995, the FASB issued Statement of Financial Accounting 
Standards No. 123 ("SFAS 123") "Accounting for Stock-Based Compensation," 
which becomes effective for fiscal years beginning after December 15, 1995.  
SFAS 123 establishes new financial accounting and reporting standards for 
stock-based compensation plans.  However, entities are allowed to elect 
whether to measure compensation expense for stock-based compensation under 
SFAS 123 or  Accounting Principles Board No. 25 ("APB No. 25"), "Accounting 
for Stock Issued to Employees."  The Company has elected to remain with the 
accounting under APB No. 25 and will make the required pro forma disclosures 
of net income and earnings per share as if the provisions of SFAS 123 had 
been applied in its December 31, 1996 financial statements.  The potential 
impact of adopting this standard on the Company's pro forma disclosures of 
net income and earnings per share has not been quantified at this time.

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PART II.  OTHER INFORMATION


Item 6.  Exhibits and Reports on From 8-K

     a.  Exhibits:

         Exhibit 10.1  --  Employment Agreement between the Company and 
                           Terence Dobson
         Exhibit 27    --  Financial Data Schedule







                                  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 12, 1996              By:  /s/Russell H. Plumb//
                                           Russell H. Plumb
                                           Vice President, Finance and
                                           Chief Financial Officer



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