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 March 30, 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 April 30, 1997
              -----                            -----------------------------
Common Stock, $.01 par value per share                 14,567,142

                                      INDEX

                    SEROLOGICALS CORPORATION AND SUBSIDIARIES



PART I.
-------

Item 1.  Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets -
     December 29, 1996 and March 30, 1997 . . . . . . . . . . . . . . . . 3

Condensed Consolidated Statements of Income - 
     For the quarters ended March 31, 1996 and March 30, 1997 . . . . . . 4

Condensed Consolidated Statements of Cash Flows -
     For the quarters ended March 31, 1996 and March 30, 1997 . . . . . . 5

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


Item 2.  Management's Discussion and Analysis of Financial 
     Condition and Results of Operations . . . . . . . . . . . . . . . 9-12

PART II. 
--------

Item 2.  Changes in Securities . . . . . . . . . . . . . . . . . . . . . 13
Item 6.  Exhibits and Reports on Form 8-K  . . . . . . . . . . . . . . . 13

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
----------

PART I.
-------

Item 1.  Financial Statements

                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
                                    (Unaudited)

                                                  December 29,       March 30,
                                                      1996              1997
                                                  ------------      ----------
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                         $21,232           $11,632
  Trade accounts receivable, net                      5,235             7,162
  Inventories                                         5,746             8,362
  Other current assets                                1,131               855
                                                    -------           -------
  Total current assets                               33,344            28,011
                                                    -------           -------
PROPERTY AND EQUIPMENT, net                           9,800            11,188
                                                    -------           -------
OTHER ASSETS:
  Goodwill, net                                      33,541            44,697
  Other                                               4,152             5,618
                                                    -------           -------
  Total other assets                                 37,693            50,315
                                                    -------           -------
                                                    $80,837           $89,514
                                                    -------           -------
                                                    -------           -------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current maturities of long-term debt and capital
    lease obligations                                $3,567            $4,900
  Accounts payable                                    2,795             2,464
  Accrued liabilities                                 6,208             7,793
  Deferred revenue                                       69             1,021
                                                    -------           -------
  Total current liabilities                          12,639            16,178
                                                    -------           -------
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS,
  less current maturities                               147             2,801
                                                    -------           -------
OTHER LIABILITIES                                       168               231
                                                    -------           -------
STOCKHOLDERS' EQUITY:
  Common stock                                          141               141
  Additional paid-in capital                         52,164            52,196
  Retained earnings                                  15,368            17,894
  Cumulative translation adjustment                     210                73
                                                    -------           -------
  Total stockholders' equity                         67,883            70,304
                                                    -------           -------
                                                    $80,837           $89,514
                                                    -------           -------
                                                    -------           -------
 The accompanying notes are an integral part of these condensed consolidated 
 balance sheets.

                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share amounts)
                                    (Unaudited)


                                                       Quarter Ended
                                                       -------------
                                                 March 31,          March 30, 
                                                   1996                1997
                                             --------------         ---------
Net sales                                       $14,779               $19,903
Costs and expenses: 
  Cost of sales                                   8,665                12,078
  Selling, general and administrative expenses    2,293                 2,940
  Product development expenses                      589                   555
  Other expense, net                                426                   481
  Interest expense (income), net                    163                  (159)
                                                -------               --------

Income before income taxes                        2,643                 4,008
Provision for income taxes                        1,015                 1,482
                                                -------               --------
Net income                                       $1,628                $2,526
                                                -------               --------
                                                -------               --------

Net income per share                              $0.12                 $0.17
                                                -------               --------
                                                -------               --------

Weighted average common and common equivalent 
  shares outstanding - primary                   13,457                15,081
                                                -------               --------
                                                -------               --------






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


                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In thousands)
                                    (Unaudited)

                                                         Quarter Ended
                                                         -------------
                                                  March 31,        March 31,
                                                    1996             1997
                                                 -----------      -----------
Operating activities:
  Net income                                       $1,628             $2,526
  Adjustments to reconcile net income to net
   cash provided by operating activities: 
  Depreciation and amortization                       815              1,033
  Deferred income tax (benefit) provision             (11)                77
  Changes in operating assets and liabilities,
   net of acquisitions of businesses:
  Trade accounts receivable, net                   (1,944)            (1,906)
  Inventories                                        (163)            (1,040)
  Other current assets                               (500)               326
  Accounts payable                                    199               (476)
  Accrued expenses                                    407                527
  Deferred revenue                                    (76)               116
                                                   -------            -------
  Total adjustments                                (1,273)            (1,343)
                                                   -------            -------
   Net cash provided by operating activities          355              1,183
                                                   -------            -------
Investing activities:
  Purchases of property and equipment                (459)              (506)
  Acquisitions of businesses                       (4,639)           (10,282)
  Other                                                (2)               (31)
                                                   -------            -------
   Net cash used in investing activities           (5,100)           (10,819)
                                                   -------            -------

Financing activities:
  Net borrowings under revolving line of credit     4,693                 --
  Payments on long-term debt and capital 
   lease obligations                               (1,306)               (13)
  Other                                                62                 33
                                                   -------            -------
   Net cash provided by financing activities        3,449                 20
                                                   -------            -------
  Effect of changes in foreign exchange rate          (21)                16
                                                   -------            -------
  Net decrease in cash and cash equivalents        (1,317)             (9,600)
  Cash and cash equivalents, beginning of period    2,887              21,232
                                                   -------            -------
  Cash and cash equivalents, end of period         $1,570             $11,632
                                                   -------            -------
                                                   -------            -------
Supplemental Disclosures:
Interest Paid                                      $1,337                 $76
Taxes Paid                                            178               1,080

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


                     SEROLOGICALS CORPORATION AND SUBSIDIARIES
               NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
                                    (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 specialty antibody collections 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 the 
quarters ended March 31, 1996 and March 30, 1997 have been adjusted to reflect 
the Company's 3-for-2 common stock split effected in the form of a 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 busi-
nesses 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 discussed in Note 3).  The 
Company financed the $10.2 million of cash paid at closing with cash on hand.

     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 quarters ended March 31, 1996 and March 30, 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.

                                                         Quarter Ended
(In thousands, except per share data)                   -------------
                                                 March 31,           March 30,
                                                   1996                1997
                                               ----------           ----------
          Net sales                              $16,219             $23,025
          Net income                              $1,477              $2,479
          Net income per share                     $0.11               $0.16


3.  LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

     Long-term debt and capital lease obligations at December 29, 1996 and 
March 30, 1997 consisted of the following (in thousands):

                                       December 29, 1996     March 30, 1997
                                       -----------------     --------------

$4.0 million convertible subordinated
 note payable, interest at 4.5% payable
 quarterly commencing July 1, 1997;
 maturing on March 7, 2002 (see the 
 Nations Note, as defined below)          $   --                $4,000

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

Capital lease obligations at varying
 interest rates and terms, maturing 
 through 2001                                200                   189
Other notes at varying interest 
 rates and terms maturing through
 March 2000                                   14                    12
                                          ------                ------
                                           3,714                 7,701
Less current maturities                    3,567                 4,900
                                          ------                ------
                                            $147                $2,801
                                          ------                ------
                                          ------                ------

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), subject 
to certain restrictions, 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 be effective for the Company's fiscal year ending 
December 28, 1997.  This statement established 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. Had the 
Company been required to adopt SFAS 128 currently, the first quarter basic 
earnings per share for 1996 and 1997, would have been $0.13 and $0.18, 
respectively,  and diluted earnings per share would have equaled the current 
and historically reported primary earnings per share.


5.  SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES

     The following non-cash investing and financing transactions were entered 
into during the quarters ended March 31, 1996 and March 30, 1997 (in thousands):

                                                         Quarter Ended
                                                         -------------
                                                 March 31,           March 30,
                                                   1996                 1997
                                                ----------          ----------
Debt assumption                                   $1,154             $    --
Forgiveness of note receivable in 
  connection with the acquisition of Am-Rho          500                  --
Issuance of promissory note as 
  acquisition consideration                           --               4,000

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 in 1997;  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 un-
certainties, 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 May 1, 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.

     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 4).  The Company financed the $10.2 million of cash paid at closing 
with cash on hand.  

     In February 1997, the Company declared a 3-for-2 split of its common stock 
effected in the form of a 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, a greater number of observations per inspection, deficiency notices 
and warning letters.  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 groups, such as the American Blood Resources Association 
("ABRA"), and the Company's customers continually evaluate their practices and 
procedures regarding new information or public concerns over blood safety and 
diseases which may be transmitted from donors through their blood or blood 
components.  Based upon such evaluation, a certain portion of the population 
may be prohibited from donating in the future, or certain new testing and 
screening procedures may be required to be performed with respect to certain 
donors.  One specific concern currently facing the industry is Creutzfeld-Jakob
disease ("CJD"), a fatal disease occurring sporadically in the world at an 
incidence of about one per million population per year and which has been 
reportedly linked in some cases to bovine spongiform encephalopathy, also know
as "mad cow disease".  While no acceptable testing or screening procedure 
currently exists to detect CJD, it has generally been found to have a higher 
incidence in the older population.  In response to this concern,  the Company 
has been notified by one of its customers that commencing in the second quarter
of 1997, with respect to certain products, such customer will cease accepting 
antibodies collected from donors over the age of 59.  Another standard volun-
tarily accepted by the industry which is  to be adopted during the third 
quarter of 1997 relates to the acceptance of new donors.  In an effort to 
further minimize the potential that infected plasma may enter the manufacturing
process undetected, all new (i.e., first-time) donors' plasma would be excluded
from further manufacture unless a negative set of test results is also obtained
on a second donation within six months, essentially precluding one-time 
donations.  The Company does not believe that the loss of donors resulting from
these new standards will have a material impact on its operating results.

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:
                                                         Quarter Ended
                                                         -------------
                                                 March 31,          March 30,
                                                   1996               1997
                                               ---------           ----------
Net sales                                         100.0%              100.0%
Gross profit                                       41.4                39.3
Selling, general and administrative expenses       15.5                14.8
Product development                                 4.0                 2.8
Net income                                         11.0                12.7


Quarters ended March 31, 1996 and March 30, 1997

     Net sales increased 34.7%, or $5.1 million, from $14.8 million in 1996 to 
$19.9 million in 1997. Of the increase, approximately $2.6 million was 
attributable to the full-quarter effect of the acquisitions of  Am-Rho 
Laboratories, Inc. ("Am-Rho"), Southeastern Biologics, Inc. and its affiliates 
("Southeastern") and Simi Biologicals, Inc. in February 1996, March 1996 and 
December 1996, respectively (collectively, the "1996 Acquisitions") and the 
Nations Acquisition in March 1997. The remainder of the increase, or 
approximately $2.5 million, was attributable to additional net sales of IVIG 
antibodies, monoclonal antibody products and anti-D.  The Company's net sales 
of therapeutic antibodies increased 37.1%, while net sales of diagnostic 
antibodies increased 28.5%.

     Gross profit increased 28.1%, or $1.7 million, from $6.1 million in 1996 
to $7.8 million in 1997.  Of the increase, $1.5 million was attributable to 
increased net sales of, and higher margins on, anti-D and increased sales of 
IVIG antibodies, while $332,000 was attributable to the full-quarter effect of 
the 1996 Acquisitions and, to a lesser extent, the Nations Acquisition.  Gross 
profit, as a percentage of net sales ("gross margin") decreased from 41.4% to 
39.3%, primarily attributable to an increase in net sales of generally lower-
margin IVIG antibodies as a percentage of total net sales from approximately 
31% in 1996 to 40% in 1997.  Gross margin from the Company's specialty antibody
products increased from 51.4% in 1996 to 54.5% in 1997 due primarily to a shift
in the product mix of shipments made in 1997.

     Selling, general and administrative expenses increased 28.3%, or $648,000, 
from $2.3 million in 1996 to $2.9 million in 1997.  The increase was primarily 
attributable to the larger corporate infrastructure needed to support the 
Company's acquisitions and growth and an increased sales and marketing staff at 
the Company's monoclonal antibody manufacturing subsidiary.  However, selling, 
general and administrative expenses, as a percentage of net sales, decreased 
from 15.5% to 14.8%.

     Product development expenses, which relate primarily to the development of 
monoclonal antibodies for blood typing reagents and for therapeutic products, 
were substantially unchanged, decreasing  from $590,000 in 1996 to $555,000 in 
1997.  

     Other expense, net increased 14.5%, or $61,000, from $420,000 in 1996 to 
$481,000 in 1997, due primarily to the full-quarter effect of the amortization
of goodwill and other intangible assets acquired in the 1996 Acquisitions and, 
to a lesser extent, the amortization of intangible assets acquired in the 
Nations Acquisition in March 1997.

     Interest expense (income), net decreased 197.5%, or $322,000, from net 
expense of $163,000 in 1996 to net income of $159,000 in 1997, primarily 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. 

Liquidity and Capital Resources

     As of March 30, 1997, the Company had cash and cash equivalents and 
working capital of  $11.6 million and $11.8 million, respectively.  Cash and 
cash equivalents and working capital decreased $9.6 million and $8.9 million, 
respectively, 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.  
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 quarters ended March 30, 1997 and 
March 31, 1996 was approximately $1.2 million and $355,000, respectively, or an 
increase of $828,000.  The increase in cash flow from operations was primarily 
attributable to increased  net income of $898,000 and $218,000 of additional 
non-cash depreciation and amortization expense, offset by a $376,000 higher 
investment in working capital in 1997 versus 1996. The increased investment in 
working capital in 1997 versus 1996 was primarily attributable to funding 
higher levels of inventory due to the timing of shipments of the Company's non-
specialty products and to the Company's increased level of operations.

     Net cash used in investing activities for the quarter ended March 30, 1997 
was $10.8 million as compared to $5.1 million for the quarter ended March 31, 
1996.  Cash used in investing activities in the first quarter of 1996 was 
primarily related to the February 1996 acquisition of Am-Rho for approximately 
$1.1 million in cash and the March 1996 acquisition of Southeastern for 
approximately $3.6 million in cash.  Cash used in investing activities in 1997 
primarily consisted of approximately $10.2 million in cash used for the Nations 
Acquisition. 

     Net cash  provided by financing activities, including the effects of 
changes in foreign currency rates, for the quarter ended March 30, 1997 was 
$36,000 as compared to $3.4 million for the comparable period of 1996. Net cash 
provided by financing activities in 1996 was primarily related to borrowings 
under the Revolver to finance the acquisitions of Am-Rho and Southeastern.  The 
Company had no significant cash financing activities during the first quarter 
of 1997. 

     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 quarter of 1997, capital expenditures were $506,000, consisting primarily
of expenditures related to the expansion of the Company's monoclonal production
facility, which was substantially completed during the first quarter, and 
expenditures related to upgrading the Company's information system.

     During 1997, 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 (Atlanta), 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 to fund capital expenditures, acquisitions and any increased 
working capital needs.  There were no amounts outstanding under the Revolver at 
December 29, 1996 or March 30, 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 35% of the Company's 
revenues for the quarter ended March 30, 1997. Early termination of the 
contracts could adversely affect the Company.

     On January 21, 1996, 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), subject to certain restrictions, 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 2.  Changes in Securities

         c.  On March 6, 1997, in connection with the Nations Acquisition, the 
             Company issued the Nations Note, as fully described in Note 3 of 
             the Notes to Consolidated Financial Statements (Unaudited) 
             contained elsewhere herein.  The Nations Note was issued to one of
             the sellers who made certain investment representations.  This 
             transaction was made in reliance upon the exemption from 
             registration provisions under the Securities Act of 1933, as 
             amended, contained in Section 4(2) thereof.

Item 6.  Exhibits and Reports on Form 8-K

         a.  Exhibits:

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

         b.  Reports on Form 8-K:

             The Company filed a Current Report on Form 8-K on March 21, 1997, 
             in which it announced under Item 2-Acquisition or Disposition of 
             Assets, the purchase of Nations Biologics, Inc. and its 
             affiliates.  An amended Form 8-K/A including the requisite 
             financial information related to the Nations Acquisition was filed
             on May 2, 1997.


                                    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:  May 9, 1997                  By:  /s/  Russell H. Plumb//
                                         -----------------------
                                         Russell H. Plumb
                                         Vice President/Chief Financial
                                         Officer (Principal Financial and
                                         Accounting Officer)