U. S.  Securities and Exchange Commission
                        Washington, D.C. 20549

                               Form 10-QSB


(Mark One)
[ X ]  Quarterly Report Under Section 13 or 15(d) of the Securities Exchange 
       Act of 1934  

For the quarterly period ended September 30, 1996                       	
                               ------------------

[    ]   Transition Report Under Section 13 or 15(d) of the Securities 
         Exchange  Act of 1934   

For the transition period from________________to__________________

Commission file number 0-17032

                        PROTEIN DATABASES, INC.
          -------------------------------------------------
    (Exact name of small business issuer as specified in its charter)   

          Delaware                                  13-3186604
--------------------------------                  -----------------
(State or other jurisdiction                     (I.R.S. Employer
of incorporation or organization)	              Identification No.)

405 Oakwood Road, Huntington Station, New York	        11746
----------------------------------------------       ----------
(Address of principle executive offices)				       (Zip Code)

(516)-673-3939
--------------
Issuer's telephone number 

--------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last 
 report)

Check whether the issuer (1) filed all reports required to be filed by Section 
13 or 15(d) of the Exchange Act during the past 12 months (or for such short-
er 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___.
     ---
State the number of shares outstanding of each of the issuer's classes of 
common equity, as of the latest practicable date.

            Class                          Outstanding at November 6, 1996
---------------------------                ---------------------------------
Common Stock $.01 par value                           1,459,724

<PAGE>

                      PROTEIN DATABASES, INC. AND SUBSIDIARY

                       CONDENSED CONSOLIDATED BALANCE SHEET

                              SEPTEMBER 30, 1996
                                 ( UNAUDITED )

                                    ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                               $   301,242
  Accounts receivable                                         198,377
  Inventory                                                    43,191
  Prepaid expenses                                             16,768
                                                          -----------
     Total current assets                                     559,578
                                                          -----------
PROPERTY AND EQUIPMENT-NET                                    267,435
                                                          -----------
OTHER ASSETS                                                   13,520
                                                          -----------

TOTAL                                                     $   840,533
                                                          ===========

                 LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES:
  Accounts payable                                         $   60,738
  Accrued expenses                                             36,393
  Unearned revenue                                             31,354
                                                           ----------
    Total current liabilities                                 128,485
                                                           ----------
STOCKHOLDERS' EQUITY:
  Common stock                                                 14,597
  Additional paid-in capital                                8,519,636
  Accumulated deficit                                      (7,822,185)
                                                           ----------
    Stockholders' Equity                                      712,048
                                                           ----------
TOTAL                                                      $  840,533
                                                           ==========

<PAGE>

                  PROTEIN DATABASES, INC. AND SUBSIDIARY

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (UNAUDITED)


                   For the Three Months               For the Nine Months
                    Ended September 30,               Ended September 30,
                   --------------------              --------------------
                      1996        1995                 1996        1995
                      ----        ----                 ----        ----
Revenues            $308,863    $696,128            $1,218,212  $2,190,108 
                    --------    --------            ----------  ----------
Expenses
  Cost of sales       88,484     146,958               437,573     491,588 
  General and 
    administrative   138,707     157,429               472,788     488,494
  Marketing and 
    sales            137,400     231,839               525,751     704,313 
  Research and 
    development      110,232     127,333               399,947     384,108 
                     -------     -------            ----------   ---------- 
    Total expenses   474,823     663,559             1,836,059   2,068,503 
                     -------     -------            ----------   ----------

    Net income 
     (loss)        $(165,960)    $32,569            $(617,847)    $121,605 
                    =========    =======            ==========  ==========

    Net income 
     (loss) per 
        common 
          share       $(.11)        $.02               $(.42)         $.07 
                   =========    ========           ==========   ==========

Weighted average number
  of shares used in 
   computing earnings 
     (loss) per share    
             
                  1,459,724    1,713,729           1,459,724     1,658,225
                  =========    =========           =========     =========
<PAGE>

                    PROTEIN DATABASES, INC. AND SUBSIDIARY

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                ( UNAUDITED )

                                                      For the Nine Months
                                                      Ended September 30,
                                                      -------------------
                                                      1996          1995
                                                      ----          ----
Cash flow from operations:
  Net income (loss)                                $(617,847)  $  121,605
  Adjustments to reconcile net income
   to net cash provided by (used in) operations:
    Depreciation and amortization                     72,000       72,000 
    Changes in operating assets and liabilities:
      Accounts receivable                            223,115      364,578
      Inventory                                       21,497       20,646 
      Prepaid expenses and deposits                   (3,481)      (8,336) 
      Accounts payable and accrued expenses         (104,868)    (148,147)
      Unearned revenue                                 1,663      (46,289)
                                                    --------    ---------
    Net cash provided by (used in) operations       (407,921)     376,057
                                                    --------    ---------
Cash flows used for investments in
  property and equipment, net                        (69,555)     (98,232)
                                                    --------    ---------

Increase (decrease) in cash and cash equivalents    (477,476)     277,825
                                                   
Cash and cash equivalents, beginning of period       778,718      622,895
                                                    --------    ---------
 
Cash and cash equivalents, end of period            $301,242     $900,720 
                                                    ========    =========

<PAGE>

                  PROTEIN DATABASES, INC.,  AND SUBSIDIARY

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           SEPTEMBER 30, 1996

NOTE 1 - GENERAL:
-----------------

    The accompanying unaudited financial statements include all adjustments,
consisting of normal recurring accruals, which are, in the opinion of
management, necessary for a fair statement of the results of the interim
periods.  The statements have been prepared in accordance with the require-
ments for quarterly reports on Form 10-QSB and, therefore, do not include
all disclosures or financial details required by generally accepted account-
ing principles.  These condensed financial statements should be read in 
conjunction with the financial statements and the notes thereto included in
the Company's Annual Report on Form 10-KSB for the year ended December 31,
1995.

    The results of operations for the interim periods are not necessarily
indicative of results to be expected for a full year's operations.

<PAGE>

                    PROTEIN DATABASES, INC. AND SUBSIDIARY
                    --------------------------------------
              Management's Discussion and Analysis of Operations
              --------------------------------------------------

Liquidity and Capital Resources

As a result of purchases of the Company's software products by Pharmacia 
Biosystems B.V. and Pharmacia Biotech AB ("Pharmacia"), the Company 
operated profitably in the quarter and nine months ended September 30, 1995.
However, as a result of the completion of Pharmacia's software purchase 
requirements during the third quarter of 1995, the Company operated un-
profitably in the fourth quarter of 1995 and the first three quarters of 1996.
On April 19, 1996 the Company was informed by Pharmacia, the most significant
worldwide distributor of its products, that Pharmacia elected not to renew 
its contract to distribute the Company's products.

The Company implemented cost reduction measures in the beginning of the 
second quarter of 1996 and management currently believes that the Company 
will have adequate funds to sustain its operations in 1996.  However, the 
Company is almost totally dependent upon distributors for the sale of its 
products outside of the United States.  Pharmacia accounted for 29% and 42%,
and Toyobo Co. Ltd., the exclusive distributor of the Company's products in 
Japan and a non-exclusive distributor of the Company's products in all other
countries in the Far East, accounted for 19% and 23% of the Company's total 
revenues in 1995 and 1994, respectively.

The Company is attempting to arrange one or more suitable alternative dis-
tribution arrangements for its products; however, if the Company is not 
successful in completing such arrangements, the Company's sales will continue 
to be materially and adversely affected and the Company will not operate 
profitably.

During the quarter ended September 30, 1996, the Company had a net loss from
operations of $165,960.  As of September 30, 1996, the Company's total current
assets were $559,578 (including cash and cash equivalents of $301,242) and its
total liabilities were $128,485 (see accompanying Balance Sheet)

The Company had no material commitments for capital equipment additions at 
September 30, 1996.

Revenues

The Company generates revenues primarily by selling software and to a lesser 
extent, from contract research and development, royalties, and other income 
sources.

Software systems revenues include revenues from the sale of the Company's 
proprietary software, Original Equipment Manufacturers (OEM) equipment, 
software maintenance and software updates.  Software systems revenues during 
the third quarter and first nine months of 1996 include sales of OEM equip-
ment that cost $40,239 and $262,773, respectively, as compared with $75,375
and $271,900, respectively, of such costs in the third quarter and first nine
months of 1995, respectively.  The Company obtains its principle OEM equipment
from a limited number of suppliers.  If the Company were unable to continue
to obtain the equipment on reasonable terms from its current suppliers,  or 
from alternate sources, the Company would be materially and adversely 
affected.

Excluding the cost of OEM equipment, the Company's Software systems revenues
during the third quarter and first nine months of 1996 decreased approxi-
mately 47% and 46%, respectively, from the comparable periods of 1995.  
The decreases were primarily due to decreases in the number of products sold 
under the Company's distribution agreements with Pharmacia and by the 
Company's direct sales staff in North America.

Expenses

Excluding lower costs of OEM equipment described above, the reduction in 
the Company's cost of sales expenses in the quarter and nine months ended 
September 30, 1996 from the comparable periods in the prior year was 
primarily attributable to lower costs for equipment supplies and maintenance, 
travel and freight.  Except for OEM equipment costs, which vary significantly 
with the level of the Company's revenues, cost of sales expenses are 
relatively fixed.

The decrease in the Company's general and administration expenses in the 
three and nine months ended September 30, 1996 from the comparable periods 
of the prior year was primarily attributable to lower compensation expenses,
which were partially offset by higher professional fees.

The Company's marketing and sales expenses decreased in the three and nine 
months ended September 30, 1996 from the comparable periods in the prior year
principally as a result of lower promotional, travel, salaries and commission
expenses.

The decrease in the Company's research and development expenses in the three
months ended September 30, 1996 from the comparable period in the prior year 
was primarily attributable to lower compensation expenses.  The Company's
principal research and development costs for its current products have been 
incurred in prior years, but the Company needs continually to maintain and 
improve its products, as well as to develop new products, and anticipates 
ongoing research and development efforts.

<PAGE>

                      Part II - Other Information
                      ---------------------------

Item 6.	Exhibits and Reports on Form 8-K

      ( a )  Exhibits: EX-27.

      ( b )  Reports on Form 8-K:  There were no reports on Form 8-K filed 
             by the Company during the three months ended September 30, 1996.

<PAGE>

                                Signatures
                                ----------

    In accordance with the requirements of the Securities Exchange Act, the 
registrant has caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.

                                               Protein Databases, Inc.			
                                               -----------------------
                                                   (Registrant)


Dated November 11, 1996                           S/Stephen H. Blose
                                                  ------------------
                                                  Stephen H. Blose	   						
                                                  Director, President and 
                                                  Chief Executive Officer


Dated November 11, 1996       		                  S/Alan P. Chodosh
                                                  -----------------
                                                  Alan P. Chodosh
                                                  Vice President of Finance
                                                  (Principal Financial and 
                                                  Accounting Officer)

               INDEX TO EXHIBITS

27   - FINANCIAL DATA SCHEDULE    

       FINANCIAL DATA SCHEDULE    EXHIBIT 27

[ARTICLE] 5  
[DESCRIPTION] FDS FOR 3RD QUARTER 10-QSB
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
PROTEIN DATABASES, INC.'S SEPTEMBER 30, 1996 FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   9-MOS
[FISCAL-YEAR-END]                          DEC-31-1996
[PERIOD-END]                               SEP-30-1996
[CASH]                                         301,242
[SECURITIES]                                         0
[RECEIVABLES]                                  198,377
[ALLOWANCES]                                         0
[INVENTORY]                                     43,191
[CURRENT-ASSETS]                               559,578
[PP&E]                                       1,000,033
[DEPRECIATION]                                (732,598)
[TOTAL-ASSETS]                                 840,533
[CURRENT-LIABILITIES]                          128,485
[BONDS]                                              0
[PREFERRED-MANDATORY]                                0
[PREFERRED]                                          0
[COMMON]                                        14,597
[OTHER-SE]                                     697,451
[TOTAL-LIABILITY-AND-EQUITY]                   840,533
[SALES]                                      1,218,212
[TOTAL-REVENUES]                             1,218,212
[CGS]                                          437,573
[TOTAL-COSTS]                                1,836,059
[OTHER-EXPENSES]                                     0
[LOSS-PROVISION]                                     0
[INTEREST-EXPENSE]                                   0
[INCOME-PRETAX]                               (617,847)
[INCOME-TAX]                                         0
[INCOME-CONTINUING]                           (617,847)
[DISCONTINUED]                                       0
[EXTRAORDINARY]                                      0
[CHANGES]                                            0
[NET-INCOME]                                  (617,847)
[EPS-PRIMARY]                                     (.42)   
[EPS-DILUTED]                                     (.42)
</TABLE>