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 June 29, 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 August 1, 1997
               -------                        ----------------------------- 
Common Stock, $.01 par value per share                  14,630,632
                                      

<PAGE>
                                    INDEX

                  SEROLOGICALS CORPORATION AND SUBSIDIARIES


PART I. 

Item 1.  Financial Statements (Unaudited)

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

Condensed Consolidated Statements of Income - 
   For the six and three months ended June 30, 1996 and June 29, 1997...4

Condensed Consolidated Statements of Cash Flows -
     For the six months ended June 30, 1996 and June 29, 1997 ...........5

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


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

PART II. 

Item 4.  Submission of Matters to a Vote of Security Holders............14
Item 6.  Exhibits and Reports on Form 8-K ..............................14

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

                                   2
<PAGE>

PART I.  

Item 1.  Financial Statements

                  SEROLOGICALS CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                  (Unaudited)
                                                 December 29,      June 29,
                                                    1996            1997
                                                 ------------      --------
ASSETS
CURRENT ASSETS:
 Cash and cash equivalents                          $21,232         $14,371
 Trade accounts receivable, net                       5,235           8,368
 Inventories                                          5,746           7,706
 Other current assets                                 1,131           1,267
                                                    -------         -------
Total current assets                                 33,344          31,712
                                                    -------         -------
PROPERTY AND EQUIPMENT, net                           9,800          11,901
                                                    -------         -------
                                                    -------         -------
OTHER ASSETS:
 Goodwill, net                                       33,541          44,447
 Other                                                4,152           5,398
                                                    -------         -------
 Total other assets                                  37,693          49,845
                                                    -------         -------
                                                    $80,837         $93,458
                                                    =======         =======
		
LIABILITIES AND STOCKHOLDERS' EQUITY	
CURRENT LIABILITIES:			
 Current maturities of long-term debt
  and capital lease obligations                      $3,567          $1,655
 Accounts payable                                     2,795           2,102
 Accrued liabilities                                  6,208           8,157
 Deferred revenue                                        69             501
                                                    -------         -------
 Total current liabilities                           12,639          12,415
                                                    -------         -------
		
LONG-TERM DEBT AND CAPITAL LEASE
 OBLIGATIONS, less current maturities                   147           2,781
                                                    -------         -------
OTHER LIABILITIES                                       168             307
		
STOCKHOLDERS' EQUITY:
 Common stock                                           141             149
 Additional paid-in capital                          52,164          56,794
 Retained earnings                                   15,368          20,866
 Cumulative translation adjustment                      210             146
                                                    -------         -------
 Total stockholders' equity                          67,883          77,955
                                                    -------         -------
                                                    $80,837         $93,458
                                                    =======         =======

             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)

                              Six Months Ended         Three Months Ended
                            --------------------      ---------------------
                            June 30,   June 29,       June 30,     June 29,
                              1996       1997           1996         1997
                            ---------  ---------      ---------   ---------
Net sales                    $31,440    $45,962        $16,661     $26,059
Costs and expenses:
 Cost of sales                18,508     29,211          9,837      17,133
 Selling, general and 
  administrative expenses      4,632      6,204          2,339       3,264
 Product development expenses  1,130      1,000            541         445
 Interest expense (income), net  373       (224)           210         (65)
 Other expense, net              882      1,077            462         596
                             -------    -------        -------     -------
Income before income taxes
 and extraordinary loss        5,915      8,694          3,272       4,686
Provision for income taxes     2,141      3,196          1,127       1,714
                             -------    -------        -------     -------
Income before extraordinary 
 loss                          3,774      5,498          2,145       2,972
Extraordinary loss on early
 retirement of debt, net of
 income taxes                    (14)         -            (14)          -
                             -------    -------        -------     -------
Net income                    $3,760     $5,498         $2,131      $2,972
                             =======    =======        =======     =======
Net income per common
 share-primary:
  Income before extraordinary
   loss                        $0.27      $0.36          $0.15       $0.19
  Extraordinary loss               -          -              -           -
                             -------    -------        -------     -------
Net income                     $0.27      $0.36          $0.15       $0.19
                             =======    =======        =======     =======
Weighted average common and
 common equivalent shares
 outstanding-primary          13,756     15,360         14,071      15,620
                             =======    =======        =======     =======

             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)
                                                   Six Months Ended
                                                 --------------------
                                                 June 30,    June 29, 
                                                   1996        1997
                                                 --------    --------
Operating activities:
Net income                                        $3,760      $5,498
		
   Adjustments to reconcile net income to net
    cash provided by operating activities: 
    Depreciation and amortization                  1,670       2,231
    Deferred income tax (benefit) provision          (52)        178
    Extraordinary loss, net                           14           -

   Changes in operating assets and liabilities,
    net of acquisitions of businesses:
     Trade accounts receivable, net               (1,322)      (2,742)
     Inventories                                    (856)        (372)
     Other current assets                           (489)        (116)
     Accounts payable                               (574)      (1,214)
     Accrued expenses                                546          830
     Deferred revenue                                142         (383)
                                                  ------       ------		
    Total adjustments                               (921)      (1,588)
                                                  ------       ------
Net cash provided by operating activities          2,839        3,910
                                                  ------       ------		
Investing activities:
  Purchases of property and equipment             (1,151)      (1,697)
  Acquisition of businesses                       (4,639)     (10,020)
  Other                                             (198)         (75)
		                                                ------       ------
       Net cash used in investing activities      (5,988)     (11,792)
                                                  ------       ------
Financing activities:			
  Net payments under revolving line of credit     (3,213)           -
  Proceeds from issuance of long-term debt             -          230
  Payments on long-term debt and capital
   lease obligations                              (1,306)        (108)
  Proceeds from public stock offering             21,670            -
  Proceeds from employee stock plans                 294          886
                                                  ------       ------
Net cash provided by financing activities         17,445        1,008
                                                  ------       ------
Effect of changes in foreign exchange rate            11           13
                                                  ------       ------
Net increase (decrease) in cash and
 cash equivalents                                 14,307       (6,861)
Cash and cash equivalents, beginning of period     2,887       21,232
                                                  ------       ------
Cash and cash equivalents, end of period         $17,194      $14,371
                                                  ------       ------
Supplemental Disclosures:			
Interest Paid                                       $362         $146
Taxes Paid                                         1,843        3,523

             The accompanying notes are an integral part of these
                    condensed consolidated statements.
                                    5


<PAGE>

                 SEROLOGICALS CORPORATION AND SUBSIDIARIES
            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                JUNE 29, 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 58 donor centers, 14 of which specialize in the collection 
of specialty antibodies and 44 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 (Note 3) (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 4).

     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.     ACQUISITION OF THE NATIONS GROUP

     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 3).  The Company financed the $10.2 million of cash paid at closing 
with cash on hand.
                                    6
<PAGE>
     The Nations Acquisition was accounted for as a purchase in accordance 
with APB No. 16, and accordingly, the purchase price has been preliminarily 
allocated to the net tangible and identifiable intangible assets acquired 
based on their estimated fair values as of the acquisition date.  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.

     The following unaudited data summarize the pro forma results of 
operations for the six months ended June 30, 1996 and June 29, 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 six months ended June 30, 1996 include a non-
recurring gain of $555,000 recognized by the Nations Group from the sale of 
a donor center.

                                                      Six Months Ended
                                                   ------------------------
(In thousands, except per share data)               June 30,      June 29,
                                                      1996          1997
                                                    --------      --------		
Net sales                                           $34,540       $49,084
		
Net income                                           $3,908        $5,451
Net income per share                                  $0.28         $0.36

3.     LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

Long-term debt and capital lease obligations at December 29, 1996 and June 
29, 1997 consisted of the following (in thousands):

                                             December 29,          June 29,
                                                1996                 1997
                                             ------------          --------		
$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                  --
		
Capital lease obligations at varying 
interest rates and terms, maturing through
 2001                                              200                  169
		
Other notes at varying interest rates and 
terms maturing through March 2000                   14                  267
                                                ------               ------
                                                 3,714                4,436
Less current maturities                          3,567                1,655
                                                ------               ------
                                                  $147               $2,781
                                                ======               ======
                                     7
<PAGE>

     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.
 
4.     RECENT ACCOUNTING PRONOUNCEMENTS

     In February 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 128 ("SFAS No. 128"), 
"Earnings per Share", 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 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:

                              Six months ended         Three months ended
                            --------------------       -------------------
                            June 30,    June 29,        June 30,   June 29,
                              1996       1997             1996       1997
                            --------    --------        --------   -------
Basic earnings per share-
pro forma                    $0.29      $0.38            $0.16       $0.20
				
Diluted earnings per share-
pro forma                    $0.27      $0.36            $0.15       $0.19


     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.
                                   8
<PAGE>

5.     SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES

     The following non-cash investing and financing transactions were 
entered into during the six months ended June 30, 1996 and June 29, 1997 
(in thousands):

                                                   Six Months Ended
                                                 --------------------
                                                 June 30,    June 29,
                                                   1996        1997
		                                               --------    --------
Debt assumption                                    $1,154     $    --
Forgiveness of note receivable in 
  connection with business acquisition                500          --
Issuance of promissory notes as 
  acquisition consideration                            --       4,100
Conversion of subordinated note payable
  into common stock                                    --       3,500
		

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 
August 1, 1997, the Company operated 58 donor centers, 14 of which 
specialize in specialty antibody collections and 44 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.
 
     On March 6, 1997, the Company acquired Nations Biologics, Inc. and its 
affiliates (the "Nations Group"), which operated 16 non-specialty donor 
centers (the "Nations Acquisition").  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 to one of the sellers of a $4.0 million convertible subordinated 
promissory note maturing on March 7, 2002 (See Note 3 of Notes to Condensed 
Consolidated Financial Statements).  The Company financed the $10.2 million 
of cash paid at closing with cash on hand.  
                                9

<PAGE>	
     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.	

     Increasing regulatory scrutiny continues to be a significant factor 
affecting the industry, resulting in more detailed and frequent inspections 
by the FDA and a greater number of observations per inspection, deficiency 
notices and warning letters.  One factor contributing to this trend is the 
FDA's implementation of a new approach to plasma facility inspections 
entitled "Team Biologics".  Under this new approach, substantially all 
plasma facility 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 
known 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 is likely to have a material impact on its current operating 
results, there is no assurance that the long-term impact of these 
requirements, or the imposition of other measures will not have a material 
adverse effect on future operations.  

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:

                              Six months ended   Three months ended
                             -----------------   -----------------
                             June 30,  June 29,  June 30,  June 29,
                              1996       1997      1996     1997
                             -------   -------   -------   -------
Net sales                    100.0%     100.0%   100.0%    100.0%
Gross profit                  41.1%      36.4%    41.0%     34.3%
Selling, general and
 administrative expenses      14.7%      13.5%    14.0%     12.5%
Product development expenses   3.6%       2.2%     3.2%      1.7%
Income before extraordinary
 loss                         12.0%      12.0%    12.9%     11.4%
Net income                    12.0%      12.0%    12.8%     11.4%

                                10

<PAGE>
Three months  ended June 30, 1996 and June 29, 1997

     Net sales increased 56.4%, or $9.4 million, from $16.7 million in 1996 
to $26.1 million in 1997. Of the increase, approximately $5.3 million was 
attributable to the full-quarter effect of the acquisition of Simi 
Biologicals, Inc. ("Simi") in December 1996 and the Nations Acquisition in 
March 1997.  Net sales attributable to the Nations Acquisition included 
initial shipments from two donor centers which received the requisite 
approvals to commence shipping during the quarter.  The remainder of the 
increase, or approximately $4.1 million, was primarily attributable to 
additional net sales of anti-D antibodies, IVIG antibodies and, to a lesser 
extent, additional net sales of clinical diagnostic antibodies and anti-
hepatitis antibodies.  The Company's net sales of therapeutic antibodies 
increased 68.0%, while net sales of diagnostic antibodies increased 17.2%.

     Gross profit increased 30.8%, or $2.1 million, from $6.8 million in 
1996 to $8.9 million in 1997.  Of the increase, approximately $1.5 million 
was primarily attributable to increased net sales of, and higher margins 
on, anti-D antibodies and increased net sales of IVIG antibodies, while the 
remainder was primarily attributable to the full-quarter effect of the 
Nations Acquisition and, to a lesser extent, the acquisition of Simi.  
Gross profit, as a percentage of net sales ("gross margin") decreased from 
41.0% to 34.3%, 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.  In addition, gross margins in 
the second quarter of 1997 were negatively impacted by initial shipments 
from two donor centers approved during the quarter, whose cost of sales 
generally include a higher amount of non-recurring start up expenses.  
Gross margins from the Company's specialty antibody products decreased 
slightly, from 55.3% in 1996 to 54.9% in 1997, due primarily to a shift in 
the product mix of monoclonal antibody shipments made in 1997, offset by 
higher gross margins on anti-D.

     Selling, general and administrative expenses increased 39.5%, or 
$925,000, from $2.3 million in 1996 to $3.3 million in 1997.  The increase 
was primarily attributable to a larger sales, financial and recruiting 
infrastructure needed to support the Company's acquisitions and growth.  
However, selling, general and administrative expenses, as a percentage of 
net sales, decreased from 14.0% to 12.5%. 

     Product development expenses, which relate primarily to the 
development of monoclonal antibodies for blood typing reagents and for 
therapeutic products, decreased 21.6%, or $96,000, from $541,000 in 1996 to 
$445,000 in 1997, or 17.7%, 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 131.0%, or $275,000, from net 
interest expense of $210,000 in 1996 to net interest income of $65,000 in 
1997, as a result of the retirement of approximately $7.9 million of debt 
in June 1996 with proceeds from a secondary stock offering 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.  

     Other expense, net increased 29.0%, or $134,000, from $462,000 in 1996 
to $596,000 in 1997, substantially all of which was due  to the full-
quarter effect of the amortization of goodwill and other intangible assets 
acquired in the Nations Acquisition.

     The provision for income taxes, as a percentage of income before 
income taxes and extraordinary loss, increased from 34.4% to 36.6%.  The 
provision for income taxes in the second quarter of 1996 was impacted by 
the tax benefit related to a non-recurring dividend paid by the Company's 
foreign subsidiary.  The provision for income taxes in the second quarter 
of 1997 reflects a higher level of non-deductible goodwill resulting from 
recent acquisitions.
                                  11

<PAGE>

Six Months June 30, 1996 and June 29, 1997

     Net sales increased 46.2%, or $14.5 million, from $31.4 million in 
1996 to $46.0 million in 1997.  Of the increase, approximately $8.0 million 
was attributable to the full-period effect of the Nations Acquisition in 
March 1997 and, to a lesser extent, acquisitions completed during 1996.  
The remainder of the increase, or approximately $6.5 million, was 
attributable to increased sales of anti-D, IVIG antibodies and clinical 
diagnostic and monoclonal antibody products. Consolidated net sales of the 
Company's therapeutic and diagnostic products increased 53.5% and 22.5%, 
respectively.

     Gross profit increased 29.5%, or $3.8 million, from $12.9 million in 
1995 to $16.8 million in 1997.  Of the increase, approximately $3.0 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 $826,000, 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 41.1% for the first six months of 1996 to 36.4% 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 33% in 1996 to 44% in 1997, initial shipments 
during 1997 from the two donor centers approved during 1997 and a shift in 
the product mix of monoclonal antibody shipments made in 1997, offset by 
higher gross margins on anti-D.

     Selling, general and administrative expenses increased 33.9%, or $1.6 
million, from $4.6 million in 1996 to $6.2 million in 1997. The increase 
was primarily attributable to a larger sales, financial and recruiting 
infrastructure needed to support the Company's acquisitions and growth.  
However, selling, general and administrative expenses, as a percentage of 
net sales, decreased from 14.7% to 13.5%.

     Product development expenses decreased $130,000, or 11.5%, from $1.1. 
million in the first six months of 1996 to $1.0 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 160.1%, or $597,000, from net 
interest expense of $373,000 in 1996 to net interest income of $224,000 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, 
offset in part by the additional interest expense attributable to the 
Nations Note.  

     Other expense, net increased 22.1%, or $195,000, from $882,000 in 1996 
to $1.1 million in 1997 due primarily to the full-quarter effect of 
amortization of intangible assets resulting from acquisitions completed 
during 1996 and the Nations Acquisition in the first quarter of 1997.

Liquidity and Capital Resources

     As of June 29, 1997, the Company had cash and cash equivalents and 
working capital of  $14.4 million and $19.3 million, respectively.  Cash 
and cash equivalents decreased $6.9 million from December 29, 1996, 
primarily from the use of approximately $10.2 million of cash on hand for 
the Nations Acquisition on March 6, 1997, offset by cash provided by 
operations.  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 six months ended June 29, 1997 
and June 30, 1996 was approximately $3.9 million and $2.8 million, 
respectively, or an increase of  approximately $1.1 million.  The increase 
in cash flow from operations was primarily attributable to increased net 
income of $1.7 million, $561,000 of additional non-cash depreciation and 
amortization expense and $230,000 of additional non-cash deferred income 
tax provision, offset by an increase in operating working capital cash 
outflows of approximately $1.4 million.  The increased cash used for 
operating working capital was primarily attributable to a larger increase 
in accounts receivable of $1.4 million, a larger decrease in accounts 
payable and accrued expenses of $640,000 and a larger decrease in deferred 
revenue of $525,000, offset by a smaller increase in inventories of 
$484,000 and other current assets of $373,000.  The change in inventories, 
accounts receivable and accounts payable and accrued expenses was primarily 
due to the timing of product shipments, collections and payments, respectively,
while the decrease in deferred revenue was due to initial 
shipments from two donor centers licensed during 1997.
                               12
	
<PAGE>
     Net cash used in investing activities for the six months ended June 
29, 1997 was $11.8 million as compared to $6.0 million for the six months 
ended June 30, 1996.  Cash used in investing activities in the first six 
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 $1.2 million.  Cash used in investing activities in 1997 
primarily consisted of approximately $10.2 million in cash used for the 
Nations Acquisition and capital expenditures of approximately $1.7 million. 
	
     Net cash provided by financing activities, including the effects of 
changes in foreign currency rates, for the six months ended June 29, 1997 
was approximately $1.0 million as compared to $17.5 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.  The financing activities during the first six months of 1997 
primarily consisted of 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 six months of 1997, capital expenditures were approximately $1.7 
million, consisting primarily of expenditures related to the expansion of 
the Company's laboratory testing facility 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 increased 
levels of capital expenditures.  The major factors affecting this increase 
include (i) the expansion of the Company's laboratory testing facility and 
international headquarters in Clarkston, Georgia; (ii) the re-engineering 
and 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.

     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 June 29, 1997.
	
     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 evaluating alternative strategies to raise 
additional capital, including increasing the borrowing capacity under the 
Revolver and the issuance and sale of securities.

     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 30% of the 
Company's revenues for the six months ended June 29, 1997. 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.
                                  13

<PAGE>
     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.

     In connection with the Nations Acquisition, the Company issued one of 
the sellers a $4.0 million convertible subordinated 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.


PART II.  

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

     The Registrant held its 1997 Annual Meeting of Stockholders on May 20, 
1997.

     At the Annual Meeting, Samuel A. Penninger, Jr. and James L. Currie 
were elected directors.  The number of shares of common stock voted in favor 
of the election of each person was not less than 10,235,502 and not more 
than 1,080 against.  In addition, the following other directors continued as 
such after the meeting: Harold J. Tenoso, Ph.D , Matthew C. Weisman, 
Lawrence E. Tilton and George M. Shaw, M.D., Ph.D. 

     In addition, at the Annual Meeting, stockholders voted to increase the 
authorized common stock of the Company from 30 million shares to 50 million 
shares, with 9,997,843 votes FOR, 142,550 votes AGAINST and 639 ABSTAINING.  
Further, stockholders ratified at the Annual Meeting the appointment of 
Arthur Andersen LLP as independent auditors of the Company, with 10,234,895 
votes FOR, 1,048 votes AGAINST and 96,189 votes ABSTAINING


Item 6.  Exhibits and Reports on Form 8-K

     a.  Exhibits:
		
         Exhibit   3.1:  Amended and Restated Articles of Incorporation of 
                         the Company
         Exhibit  10.1:  Employment Agreement between the Company and P. Ann 
                         Hoppe
         Exhibit  10.2:  Employment Agreement between the Company and Toby 
                         Simon, M.D.
         Exhibit  27:    Financial Data Schedule

     b.  Reports on Form 8-K:

        	None

                                     14
<PAGE>
                                  SIGNATURES

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


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


Date:	August 13, 1997				By:  /s/  Russell H. Plumb//
                              -------------------------
                           	  Russell H. Plumb
                           	  Vice President/Chief Financial
                           	  Officer (Principal Financial and
                              Accounting Officer) 
		
                                  15