FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997

                         Commission File Number 1-09623

                                IVAX CORPORATION

                FLORIDA                                  16-1003559
--------------------------------                      ------------------
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                       Identification No.)

        4400 BISCAYNE BOULEVARD, MIAMI, FLORIDA                 33137
   --------------------------------------------------------------------
    (Address of principal executive offices)                (Zip Code)

                                 (305) 575-6000
              ---------------------------------------------------
              (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.

               121,485,701 SHARES OF COMMON STOCK, $.10 PAR VALUE, OUTSTANDING 
AS OF APRIL 30, 1997


<PAGE>
<TABLE>
<CAPTION>

                                IVAX CORPORATION

                                      INDEX

PART I - FINANCIAL INFORMATION                                                     PAGE NO.
                                                                                   --------
<S>           <C>                                                                   <C>    
     Item 1 - Financial Statements

              Condensed Consolidated Balance Sheets as of March 31, 1997
              and December 31, 1996                                                  2

              Condensed Consolidated Statements of Operations
              for the three months ended March 31, 1997 and 1996                     3

              Condensed Consolidated Statements of Cash Flows
              for the three months ended March 31, 1997 and 1996                     4

              Notes to Condensed Consolidated Financial Statements                   5

     Item 2 - Management's Discussion and Analysis of Financial Condition and
              Results of Operations                                                  8

PART II - OTHER INFORMATION

     Item 1 - Legal Proceedings                                                     13

     Item 6 - Exhibits and Reports on Form 8-K                                      14


</TABLE>



<PAGE>
<TABLE>
<CAPTION>

PART I -- FINANCIAL INFORMATION

ITEM 1 -- FINANCIAL STATEMENTS

                        IVAX CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

                                                                                  MARCH 31,       DECEMBER 31,
                                                                                    1997              1996
                                                                                 (UNAUDITED)       (AUDITED)
                                                                                 -----------      -----------
<S>                                                                             <C>              <C>   
                               ASSETS
Current assets:
     Cash and cash equivalents                                                  $      74,812    $      80,806
     Accounts receivable, net                                                         207,912          257,922
     Inventories                                                                      271,124          288,987
     Other current assets                                                             136,579          132,320
                                                                                -------------    -------------
         Total current assets                                                         690,427          760,035

Property, plant and equipment, net                                                    423,538          414,711
Cost in excess of net assets of acquired companies, net                                50,642           51,502
Patents, trademarks, licenses and other intangibles, net                               47,881           48,091
Other                                                                                 125,945          120,975
                                                                                -------------    -------------
         Total assets                                                           $   1,338,433    $   1,395,314
                                                                                =============    =============

                  LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Loans payable                                                              $       6,445    $       5,027
     Current portion of long-term debt                                                  5,741            5,860
     Accounts payable                                                                  77,556           84,282
     Accrued income taxes payable                                                      18,934           16,393
     Accrued expenses and other current liabilities                                   108,501          113,200
                                                                                -------------    -------------
         Total current liabilities                                                    217,177          224,762

Long-term debt, net of current portion                                                411,982          443,424

Other long-term liabilities                                                            17,073           17,432

Minority interest                                                                      14,971           14,568

Shareholders' equity:
     Common stock, $.10 par value, authorized 250,000 shares,
         issued and outstanding 121,483 shares (121,476 in 1996)                       12,148           12,148
     Capital in excess of par value                                                   515,080          515,070
     Retained earnings                                                                153,021          160,960
     Cumulative translation adjustment and other                                       (3,019)           6,950
                                                                                -------------    -------------
         Total shareholders' equity                                                   677,230          695,128
                                                                                ------------     -------------
         Total liabilities and shareholders' equity                             $   1,338,433    $   1,395,314
                                                                                =============    =============

</TABLE>

    The accompanying Notes to Condensed Consolidated Financial Statements are
                    an integral part of these balance sheets.

                                       2
<PAGE>
<TABLE>
<CAPTION>
       
                        IVAX CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

THREE MONTHS ENDED MARCH 31,
(In thousands, except per share data)                                                 1997             1996
                                                                                -------------    -------------
<S>                                                                             <C>             <C>    
NET REVENUES                                                                    $     284,550    $     334,045

COST OF SALES                                                                         182,985          189,570
                                                                                -------------    -------------

     Gross Profit                                                                     101,565          144,475
                                                                                -------------    -------------

OPERATING EXPENSES:
     Selling                                                                           53,080           50,965
     General and administrative                                                        36,854           28,498
     Research and development                                                          16,873           16,522
     Amortization of intangible assets                                                  2,006            2,563
     Merger expenses                                                                    2,095              184
                                                                                -------------    -------------

     Total operating expenses                                                         110,908           98,732
                                                                                -------------    -------------

     Income (loss) from operations                                                     (9,343)          45,743

OTHER INCOME (EXPENSE):
     Interest income                                                                      668              321
     Interest expense                                                                  (7,819)          (5,691)
     Other income, net                                                                  6,806            3,840
                                                                                -------------    -------------

                                                                                         (345)          (1,530)
                                                                                -------------    -------------

     Income (loss) before income taxes, minority
         interest and extraordinary item                                               (9,688)          44,213

PROVISION (BENEFIT) FOR INCOME TAXES                                                   (3,221)           6,133
                                                                                -------------    -------------

     Income (loss) before minority interest and
         extraordinary item                                                            (6,467)          38,080

MINORITY INTEREST                                                                      (1,472)          (2,184)
                                                                                -------------    -------------

     Income (loss) before extraordinary item                                           (7,939)          35,896

     Extraordinary item, net of taxes                                                       -               (1)
                                                                                -------------    -------------

NET INCOME (LOSS)                                                               $      (7,939)   $      35,895
                                                                                =============    =============

EARNINGS (LOSS) PER COMMON SHARE:

       Earnings (loss) before extraordinary item                                $        (.07)   $         .30
       Extraordinary item                                                                   -                -
                                                                                -------------    -------------
       Net earnings (loss)                                                      $        (.07)   $         .30
                                                                                =============    =============

WEIGHTED AVERAGE NUMBER OF
     COMMON SHARES OUTSTANDING:                                                       121,479          121,379
                                                                                =============    =============


</TABLE>

  The accompanying Notes to Condensed Consolidated Financial Statements are an
                       integral part of these statements.

                                       3
<PAGE>
<TABLE>
<CAPTION>
                        IVAX CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

THREE MONTHS ENDED MARCH 31,                                                           1997            1996
(In thousands)                                                                      ------------   ----------
<S>                                                                             <C>              <C>  
Cash flows from operating activities:
    Net income (loss)                                                           $      (7,939)   $      35,895
    Adjustments to reconcile net income (loss) to net cash
       provided by (used for) operating activities:
       Depreciation and amortization                                                   13,631           13,669
       (Benefit) provision for deferred taxes                                          (6,852)               5
       Provision for allowances for doubtful accounts                                   3,234              762
       Losses (gains) on sale of long-term assets                                         558             (105)
       Minority interest                                                                1,472            2,184
       Changes in assets and liabilities:
          Decrease (increase) in accounts receivable                                   41,653          (45,550)
          Decrease (increase) in inventories                                           13,125          (21,621)
          Increase in other current assets                                             (5,442)          (4,100)
          Decrease in other assets                                                      3,328              189
          (Decrease) increase in accounts payable, accrued expenses
              and other current liabilities                                            (4,635)           2,741
          Decrease in other long-term liabilities                                        (249)          (2,826)
       Other, net                                                                        (264)            (950)
                                                                                -------------    -------------

          Net cash provided by (used for) operating activities                         51,620          (19,707)
                                                                                -------------    -------------

Cash flows from investing activities:
    Capital expenditures, net of sales proceeds                                       (15,283)         (20,179)
    Acquisitions of patents, trademarks, licenses,
       and other intangibles, net of sales proceeds                                    (1,601)            (758)
    Acquisition of manufacturing facility and other                                   (10,627)               -
    Other, net                                                                            (25)          (2,006)
                                                                                -------------    -------------

          Net cash used for investing activities                                      (27,536)         (22,943)
                                                                                -------------    -------------

Cash flows from financing activities:
    Payments on long-term debt and loans payable                                      (54,740)         (37,552)
    Borrowings on long-term debt and loans payable                                     26,992           60,708
    Issuance of common stock                                                               10           10,509
                                                                                -------------    -------------

          Net cash (used for) provided by financing activities                        (27,738)          33,665
                                                                                -------------    -------------

Effect of exchange rate changes on cash                                                (2,340)           2,190
                                                                                -------------    -------------

Net decrease in cash and cash equivalents                                              (5,994)          (6,795)

Cash and cash equivalents at the beginning of the year                                 80,806           14,720
                                                                                -------------    -------------

Cash and cash equivalents at the end of the period                              $      74,812    $       7,925
                                                                                =============    =============

Supplemental disclosures:

    Interest paid                                                               $       6,868    $       2,384
                                                                                =============    =============

    Income tax payments                                                         $       1,003    $       3,539
                                                                                =============    =============

</TABLE>

  The accompanying Notes to Condensed Consolidated Financial Statements are an
                       integral part of these statements.

                                       4
<PAGE>



                        IVAX CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                      (In thousands, except per share data)
                                   (Unaudited)

(1) GENERAL:

         In management's opinion, the accompanying unaudited condensed
consolidated financial statements of IVAX Corporation and subsidiaries ("IVAX")
contain all adjustments (consisting of only normal recurring adjustments)
necessary to present fairly the financial position of IVAX as of March 31, 1997,
and the results of its operations for the three months ended March 31, 1997 and
1996. The results of operations and cash flows for the three months ended March
31, 1997 are not necessarily indicative of the results of operations or cash
flows which may be reported for the remainder of 1997.

         The accompanying unaudited interim condensed consolidated financial
statements have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission for reporting on Form 10-Q. Pursuant to such
rules and regulations, certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. The condensed consolidated
financial statements should be read in conjunction with the Consolidated
Financial Statements and the Notes to Consolidated Financial Statements included
in IVAX' Annual Report on Form 10-K for the year ended December 31, 1996.

         The accounting policies followed for interim financial reporting are
the same as those disclosed in Note 2 of the Notes to Consolidated Financial
Statements included in IVAX' Annual Report on Form 10-K for the year ended
December 31, 1996.

         Certain amounts presented in the condensed consolidated financial
statements for prior periods have been reclassified for comparative purposes.

(2) EARNINGS (LOSS) PER SHARE:

         Earnings (loss) per share is computed by dividing net income (loss) by
the weighted average number of common and dilutive common equivalent shares
outstanding for each period. Common stock equivalents include the dilutive
effect of all outstanding stock options and warrants using the treasury stock
method.

         Statement of Financial Accounting Standards ("SFAS") No. 128, EARNINGS
PER SHARE, requires the disclosure of "basic" and "diluted" earnings per share
for periods ending after December 15, 1997. The computation under SFAS No. 128
differs from the computation of primary and fully diluted earnings per share
under Accounting Principles Board ("APB") Opinion No. 15 primarily in the manner
in which potential common stock (that is, securities such as options, warrants,
convertible securities, or contingent stock agreements) is treated. Basic
earnings per share is computed by dividing net income (loss) by the
weighted-average number of common shares outstanding for the period. In the
computation of diluted earnings per share, the weighted-average number of common
shares outstanding is adjusted for the effect of all dilutive potential common
stock.

         Basic and diluted earnings per share computed in accordance with SFAS
No. 128 for the quarters ended March 31, 1997 and 1996 do not differ from the
primary earnings per share reported 


                                       5
<PAGE>

in the accompanying consolidated statements of operations. Both diluted earnings
per share computed in accordance with SFAS No. 128 and fully diluted earnings
per share computed under APB Opinion No. 15 are not dilutive for periods
presented.

(3) INCOME TAXES:

         The provision (benefit) for income taxes is based on the consolidated
United States entities' and individual foreign companies' estimated tax rates
for the applicable year. IVAX utilizes the asset and liability method, and
deferred taxes are determined based on the estimated future tax effects of
differences between the financial accounting and tax bases of assets and
liabilities using the applicable tax laws. Deferred income tax provisions and
benefits are based on the changes in the deferred tax asset or tax liability
from period to period.

         The provision (benefit) for income taxes consists of the following:

Three Months Ended March 31,                     1997              1996
                                            --------------    -------------

Current:
     United States                          $            -    $      (6,413)
     Foreign, including Puerto Rico
       and U.S. Virgin Islands                       3,631           12,541
Deferred                                            (6,852)               5
                                            --------------    -------------
Provision (benefit) for income taxes        $       (3,221)   $       6,133
                                            ==============    =============

         As of March 31, 1997, a net deferred tax asset aggregating $107,838
($90,417 and $17,421 domestic and foreign, respectively) is included in other
current assets and liabilities and other assets and other long-term liabilities
in the accompanying condensed consolidated balance sheet. Realization of the
net deferred tax asset is dependent upon generating sufficient future taxable
income. Although realization is not assured, management believes it is more
likely than not that the net deferred tax asset will be realized based upon
estimated future taxable income and, accordingly, no valuation allowances in
addition to those existing at December 31, 1996 were deemed necessary at March
31, 1997. Management's estimates of future taxable income are subject to
revision due to, among other things, regulatory and competitive factors
affecting the generic pharmaceutical industry. Such factors are further
discussed in "Management's Discussion and Analysis of Financial Condition and
Results of Operations" included in IVAX' Annual Report on Form 10-K for the year
ended December 31, 1996.

          At March 31, 1997, an estimated refund of federal income taxes paid in
prior years and available in the carry-back period of $52,495 is included in
other current assets in the accompanying condensed consolidated balance sheet.

(4) MERGERS:

         On March 20, 1997, IVAX announced that Bergen Brunswig Corporation
("Bergen") unilaterally terminated the proposed merger between IVAX and Bergen.
On March 21, 1997, Bergen filed a lawsuit against IVAX in federal court
alleging, among other things, various breaches of the merger agreement. IVAX
does not believe that Bergen had a contractual right to terminate the merger
agreement, intends to defend the suit vigorously, and has filed a counterclaim
for breach of the merger agreement by Bergen. Included in the accompanying
condensed consolidated statement of operations for the quarter ended March 31,
1997 are $2,095 of merger expenses related to the terminated merger.

                                       6
<PAGE>

(5) OTHER INCOME, NET:

         In January 1997, IVAX announced the recall in the United States of the
generic pharmaceutical product cefaclor as a result of the recall by the raw
material supplier of the raw material used to manufacture the product. The
Company is presently seeking approval for an alternate source of raw material,
but can not predict when, if ever, it will be in position to re-commence the
manufacture and sale of cefaclor. The Company does not believe that the recall
will have a material impact on its future results of operations due to
cefaclor's limited contribution to gross profit. In March 1997, the Company
received a payment as settlement from the raw material supplier relating to the
recall. Management evaluated its existing reserves for returns of cefaclor from
its customers at March 31, 1997, and, as a result, $4,000 of the settlement
payment was recognized in income and is included in other income, net in the
accompanying condensed consolidated statement of operations for the quarter
ended March 31, 1997.



                                       7
<PAGE>


ITEM 2--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS 
OF OPERATIONS

         The following discussion and analysis should be read in conjunction
with the Consolidated Financial Statements, the related Notes to Consolidated
Financial Statements and Management's Discussion and Analysis of Financial
Condition and Results of Operations included in IVAX' Annual Report on Form 10-K
for the year ended December 31, 1996 and the Condensed Consolidated Financial
Statements and the related Notes to Condensed Consolidated Financial Statements
included in Item 1 of this Quarterly Report on Form 10-Q. Except for historical
information contained herein, the matters discussed below are forward looking
statements made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Such statements involve risks and uncertainties,
including but not limited to economic, competitive, governmental and
technological factors affecting IVAX' operations, markets, products and prices,
and other factors discussed elsewhere in this report and the documents filed by
IVAX with the Securities and Exchange Commission ("SEC").

RESULTS OF OPERATIONS

QUARTER ENDED MARCH 31, 1997 COMPARED TO THE QUARTER ENDED MARCH 31, 1996

         IVAX reported a net loss of $7.9 million for the quarter ended March
31, 1997, compared to net income of $35.9 million for the quarter ended March
31, 1996. Net loss per common share was $.07 for the first quarter of 1997
compared to $.30 in net earnings per common share reported for the first quarter
of 1996.
<TABLE>
<CAPTION>

NET REVENUES AND GROSS PROFIT BY BUSINESS SEGMENT:
(In thousands)

Three Months Ended March 31,                                  1997                                1996
                                                 -------------------------------    -------------------------------
                                                       NET             GROSS              NET             GROSS
                                                   REVENUES            PROFIT         REVENUES            PROFIT
                                                 -------------    --------------    ---------------  --------------
<S>                                              <C>              <C>               <C>             <C>
Pharmaceuticals                                  $     163,672    $       55,172    $     212,130    $       99,384
Intravenous products                                    82,593            28,968           83,203            26,828
Other operations                                        39,107            17,425           39,244            18,263
Intersegment eliminations                                 (822)                -             (532)                -
                                                 -------------    --------------    -------------    --------------
     Total                                       $     284,550    $      101,565    $     334,045    $      144,475
                                                 =============    ==============    =============    ==============
</TABLE>

         Net revenues for the first quarter of 1997 totaled $284.6 million, a
decrease of $49.6 million, or 14.8%, compared to the same period of the prior
year. Gross profit in the first quarter of 1997 decreased $42.9 million, or
29.7%, from the same period of the prior year. Gross profit was $101.6 million
(35.7% of net revenues) for the first quarter of 1997, compared to $144.5
million (43.3% of net revenues) for the first quarter of 1996.

         Net revenues of IVAX' pharmaceutical operations decreased $48.5
million, or 22.8%, in comparison to the first quarter of 1996. An increase of
$9.5 million in net revenues of IVAX' international pharmaceutical operations
was more than offset by a decrease of $58.0 million in net revenues of IVAX'
domestic pharmaceutical operations.

         Domestic pharmaceutical net revenues totaled $76.2 million for the
first quarter of 1997, compared to $134.2 million for the same period of the
prior year. The $58.0 million, or 43.2%, 

                                       8
<PAGE>

decrease in net revenues of the domestic pharmaceutical operations was primarily
due to lower sales volumes, and, to a lesser extent, decreased prices of certain
generic products and higher sales returns and allowances, partially offset by an
increase in net revenues generated by certain new generic and proprietary
products manufactured by IVAX and introduced into the market over the past
twelve months. The lower sales volume and decreased prices primarily related to
IVAX' albuterol metered dose inhaler approved for marketing and launched during
the fourth quarter of 1995 and first quarter of 1996.

         During the first quarter of 1997 and 1996, the Company's domestic
generic pharmaceutical business provided reserves which reduced gross sales by
$36.2 million and $29.7 million, respectively (which includes reserves for
expected inventory credits and returns of $16.0 million and $7.7 million,
respectively). At March 31, 1997 and December 31, 1996, these reserves totaled
$90.2 million and $98.2 million, respectively (which includes reserves for
expected inventory credits and returns of $45.7 million and $65.9 million,
respectively).

         IVAX' international pharmaceutical operations generated net revenues of
$87.4 million in the first quarter of 1997, compared to $77.9 million for the
same quarter of the prior year. The $9.5 million, or 12.2%, increase in
international pharmaceutical net revenues was primarily due to increased volume
for both generic and branded products.

         The gross profit percentage of IVAX' pharmaceutical operations
decreased from 46.9% in the first quarter of 1996 to 33.7% in the first quarter
of 1997. The decline in gross profit percentage of IVAX' pharmaceutical
operations is primarily due to price declines for United States generic drugs
and the higher levels of customer inventory credits and reserves for expected
returns relating to the United States generic pharmaceutical operations.
Significantly lower prices in the United States of the generic pharmaceutical
product albuterol metered dose inhaler also contributed to the reduction in
gross profit percentage.

         The intravenous products division generated net revenues of $82.6
million during the first quarter of 1997, a decrease of $.6 million from the
same quarter of 1996. The decrease in net revenues was primarily due to
decreased sales volume and pricing of biomedical and pharmacy equipment, lower
sales volume of specialty nutrition solutions, and lower licensing fees
partially offset by increased sales volume and pricing for basic nutrition sets
and solutions. The gross profit percentage of the intravenous products division
increased from 32.2% for the first quarter of 1996 to 35.1% for the same period
in 1997. The $2.1 million increase in gross profit and the increase in the gross
profit percentage were primarily due to licensing income and more efficient
utilization of production facilities.

         Net revenues and gross profit of IVAX' personal care products,
diagnostics and specialty chemicals operations, excluding intersegment
eliminations, collectively represent 13.7% and 17.2%, respectively, of
consolidated net revenues and consolidated gross profit for the first quarter of
1997. Combined net revenues decreased $.1 million compared with the first
quarter of 1996, primarily due to the lower net revenues of the personal care
products and diagnostics operations, partially offset by higher net revenues in
the specialty chemicals operations. Combined gross profit decreased $.8 million
primarily due to lower gross profit in the personal care products and
diagnostics operations partially offset by higher gross profit in the specialty
chemicals operations.

                                       9
<PAGE>

<TABLE>
<CAPTION>
OPERATING EXPENSES BY BUSINESS SEGMENT:
(In thousands)

                                            GENERAL          RESEARCH     AMORTIZATION
                                               AND               AND             OF         MERGER
                           SELLING      ADMINISTRATIVE    DEVELOPMENT      INTANGIBLES    EXPENSES          TOTAL
                          -----------   --------------    -------------   ------------   -----------    -----------
<S>                       <C>           <C>               <C>             <C>            <C>            <C>        
1997 FIRST QUARTER
Pharmaceuticals           $    28,773   $       19,658    $      11,537   $        905   $         -    $    60,873
Intravenous products           12,842            6,479            4,357            663             -         24,341
Other operations               11,465            3,748              979            425             -         16,617
Corporate and other                 -            6,969                -             13         2,095          9,077
                          -----------   --------------    -------------   ------------   -----------    -----------
         Total            $    53,080   $       36,854    $      16,873   $      2,006   $     2,095    $   110,908
                          ===========   ==============    =============   ============   ===========    ===========

1996 FIRST QUARTER
Pharmaceuticals           $    25,765   $       14,682    $      11,146   $        750   $        71    $    52,414
Intravenous products           13,845            5,168            4,308            993             -         24,314
Other operations               11,355            3,743            1,068            820             -         16,986
Corporate and other                 -            4,905                -              -           113          5,018
                          -----------   --------------    -------------   ------------   -----------    -----------
         Total            $    50,965   $       28,498    $      16,522   $      2,563   $       184    $    98,732
                          ===========   ==============    =============   ============   ===========    ===========
</TABLE>

         Selling expenses totaled $53.1 million (18.7% of net revenues) for the
first quarter of 1997, compared to $51.0 million (15.3% of net revenues) for the
first quarter of 1996. The $2.1 million increase was primarily due to increased
sales and marketing expenses associated with the marketing of IVAX' branded
products, partially offset by lower sales and marketing expenses for the
intravenous division.

         General and administrative expenses totaled $36.9 million (13.0% of net
revenues) for the first quarter of 1997, compared to $28.5 million (8.5% of net
revenues) for the first quarter of 1996. The $8.4 million increase was primarily
attributable to higher occupancy expenses in the international pharmaceutical
operations, higher bad debt expense in the domestic pharmaceutical operations,
and increases in insurance, legal and salary costs at corporate and other.
Higher salary and benefit costs at the intravenous division in the first quarter
of 1997 as compared to the same period in 1996, also contributed to the
increase.

         Research and development expenses for the first quarter of 1997
increased $.4 million, or 2.1%, compared to the first quarter of 1996, to a
total of $16.9 million. Expenditures by IVAX' pharmaceutical operations
represented 68.4% of the total research and development expenses for the first
quarter of 1997. The future level of research and development expenditures will
depend on, among other things, the outcome of clinical testing of products under
development, delays or changes in government required testing and approval
procedures, technological and competitive developments, and strategic marketing
decisions.

         Merger expenses increased $1.9 million in the first quarter of 1997 as
compared to the same period in the prior year as a result of higher merger costs
relating to the terminated proposed merger with Bergen Brunswig Corporation.

         Other income, net increased $3.0 million from the first quarter of
1996, primarily due to the recognition of $4.0 million in income in the first
quarter of 1997 resulting from management's evaluation of its existing reserves
at March 31, 1997 for returns of the generic pharmaceutical product cefaclor
from its customers. The increase in interest expense is associated with higher
debt levels.

                                       10
<PAGE>

         In January 1997, IVAX announced the recall in the United States of the
generic pharmaceutical product cefaclor as a result of the recall by the raw
material supplier of the raw material used to manufacture the generic drug. The
Company is presently seeking approval for an alternate source of raw material,
but can not predict when, if ever, it will be in position to re-commence the
manufacture and sale of cefaclor. The Company does not believe that the recall
will have a material impact on its results of operations due to cefaclor's
limited contribution to gross profit.

CURRENCY FLUCTUATIONS

         For the quarters ended March 31, 1997 and 1996, approximately 34% and
25%, respectively, of IVAX' net revenues were attributable to operations which
principally generated revenues in currencies other than the United States
dollar. Fluctuations in the value of foreign currencies relative to the United
States dollar impact the reported results of operations for IVAX. If the United
States dollar weakens relative to the foreign currency, the earnings generated
in the foreign currency will, in effect, increase when converted into United
States dollars and vice versa. As a result of exchange rate differences, net
revenues increased by approximately $2.5 million for the quarter ended March 31,
1997, as compared to the quarter ended March 31, 1996.

INCOME TAXES

         IVAX recognized a $3.2 million tax benefit for the quarter ended March
31, 1997. The tax benefit resulted from domestic losses benefited at the
prevailing federal and state statutory rates which exceeded foreign income taxed
at the prevailing generally lower foreign rates.

         At March 31, 1997, IVAX has recorded a net deferred tax asset
aggregating $107.8 million. Realization of this asset is dependent upon
generating sufficient future taxable income. Although realization is not
assured, management believes it is more likely than not that the deferred tax
asset will be realized based upon estimated future taxable income and,
accordingly, no valuation allowances in addition to those existing at December
31, 1996 were deemed necessary at March 31, 1997. Management's estimates of
future taxable income are subject to revision due to, among other things,
regulatory and competitive factors affecting the generic pharmaceutical
industry. Such factors are further discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included in IVAX'
Annual Report on Form 10-K for the year ended December 31, 1996.

LIQUIDITY AND CAPITAL RESOURCES

         At March 31, 1997, IVAX' working capital was approximately $473.3
million, compared to $535.3 million at December 31, 1996. Cash and cash
equivalents totaled $80.8 million at December 31, 1996, as compared to $74.8
million at March 31, 1997 and $7.9 million at March 31, 1996.

         Net cash of $51.6 million was provided by operating activities during
the first quarter of 1997, compared to $19.7 million in cash used for operating
activities during the first quarter of 1996. The increase in cash provided by
operating activities, as compared to the first quarter of 1996, was primarily
the result of increased cash collections in the first quarter of 1997 as
compared to the first quarter of 1996 on receivables in the domestic generic
pharmaceutical operations.

                                       11
<PAGE>

         Net cash of $27.5 million was used for investing activities during the
first quarter of 1997 as compared to $22.9 million for the same period of the
prior year. The $4.9 million decrease in capital expenditures was primarily
attributable to management focusing on reducing capital expenditures in the
first quarter of 1997 due to spending constraints imposed by the revolving
credit facility. During the first quarter of 1997, IVAX purchased a
pharmaceutical manufacturing facility in Kirkland, Canada for $10.5 million.

         Net cash of $27.7 million was used for financing activities during the
first quarter of 1997, compared to $33.7 million provided by financing
activities in the same period of the prior year, primarily reflecting a net
reduction in amounts outstanding under the revolving credit facility.

         To date, IVAX has incurred approximately $26.7 million in capital
expenditures in developing its Duplex(TM) drug delivery system, a proprietary
system for medications administered intravenously, and expects to commit
approximately $24.2 million in additional capital expenditures relating to the
design, manufacture, and installation of equipment needed to manufacture the
system. The marketing of pharmaceutical products in the Duplex(TM) system
requires approval of the FDA. No assurance can be given that IVAX will be able
to successfully complete the development of the Duplex(TM) system or that
required regulatory approvals will be obtained and, accordingly, a risk exists
that the current and future capitalized costs associated with the equipment
required to manufacture the system could be impaired.

         IVAX' principal sources of short term liquidity are borrowings under
the credit facility and internally generated funds. In addition, during May
1997, IVAX expects to receive an approximate $52.5 million refund of federal
income taxes paid in prior years. IVAX believes its short term financing needs
will be satisfied by these sources. The availability of the credit facility is
subject to IVAX' continued compliance with the financial and other covenants
contained in the credit agreement, including a covenant requiring minimum levels
of earnings before interest expense, income taxes, depreciation and amortization
on a quarterly basis. IVAX' ability to satisfy these covenants will depend on
its quarterly results which are subject to the risks discussed in "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
included in IVAX' Annual Report on Form 10-K for the year ended December 31,
1996. If IVAX does not satisfy the credit agreement covenants in future periods,
the lenders have the right, among other things, to require immediate repayment
of all outstanding indebtedness and to prohibit future borrowings under the
credit facility. If the lenders require repayment of such indebtedness, IVAX
would be compelled to seek alternative sources of financing to satisfy its
obligations. Finding an alternative source of financing may involve a
significant amount of time, and no assurance can be given that the terms of
alternative financing would be available, if at all, on the same or similar
terms as the existing credit facility. If IVAX were unable to obtain
satisfactory alternative financing, IVAX may be required to sell assets in order
to meet its obligations to its lenders. For the long term, IVAX believes it will
be able to obtain long term capital and financing to the extent necessary. Such
capital may be obtained, in part, from the disposition of certain non-strategic
assets.

                                       12
<PAGE>


PART II -- OTHER INFORMATION

ITEM 1 -- LEGAL PROCEEDINGS

         On April 21, 1997, individuals purporting to be shareholders of IVAX
filed a class action complaint styled FAUSTO POMBAR V. IVAX CORPORATION, PHILLIP
FROST AND MICHAEL W. FIPPS against IVAX, its chairman and its chief financial
officer in the United States District Court for the Southern District of
Florida. Plaintiffs seek to act as representatives of a class consisting of all
persons who purchased IVAX common stock or call options during the period from
August 2, 1996 through November 11, 1996, inclusive. The complaint alleges
claims for violation of Section 10(b) of the Securities Exchange Act of 1934 and
Rule 10b-5 and for negligent misrepresentation. The complaint alleges, among
other things, that during the class period defendants made untrue statements of
material fact and omitted to state material facts necessary to make statements
made not misleading in its statements to the public, including in a September
30, 1996 press release regarding IVAX's forecasted earnings for the third
quarter of 1996. The complaint seeks unspecified compensatory damages, interest,
attorneys' fees, costs of suit and unspecified other and further relief from the
court.

         On April 18, 1997, Eli Lilly & Company ("Lilly") filed a complaint in
the United States District Court for the District of New Jersey styled ELI LILLY
AND COMPANY V. ROUSSEL CORP., ET AL against various defendants, including Zenith
Goldline Pharmaceuticals, Inc. and Zenith Laboratories, Inc. (collectively
"Zenith"). With respect to Zenith, the complaint asserts claims for violation of
the Lanham Act, unfair competition under New Jersey state law, common law unfair
competition and unjust enrichment. Also named as defendants are Roussel
Corporation, Roussel UCLAF Holdings Corporation, Roussel UCLAF S.A., Hoechst
Marion Roussel North America, and Biochimica Opos S.p.A. (collectively, the
"Roussel Defendants"), The Rugby Group, Inc., and Rugby Laboratories, Inc.
(collectively, "Rugby"), and American Home Products Corporation and American
Cyanamid Company (collectively, the "American Home Defendants"). The claims
asserted against the American Home Defendants and Rugby are essentially the same
as those asserted against Zenith. Additional claims are asserted against the
Roussel Defendants, including fraud, negligent misrepresentation, common law
conspiracy, tortuous interference with business relations, and violations of
both the federal and state Racketeer Influenced And Corrupt Organizations Acts.

         All of the asserted claims arise out of what Lilly contends were
fraudulent misrepresentations to Lilly and the Food and Drug Administration
("FDA") by Biochimica Opos S.p.A. ("Opos"), Zenith's supplier of cefaclor raw
material, regarding the methods utilized by Opos to manufacture bulk cefaclor
and the location of the manufacturing facility of such cefaclor. According to
Lilly, through these alleged misrepresentations, Opos fraudulently obtained
approval from FDA to market bulk cefaclor in the United States. The claims
asserted against Zenith are predicated on Zenith's sale in the United States of
retail dosage units of cefaclor manufactured using Opos' bulk cefaclor. Lilly
alleges that Zenith, in marketing and selling retail dosage units of cefaclor
manufactured from Opus' bulk cefaclor, allegedly used false and misleading
descriptions and representations regarding Zenith's cefaclor product. The relief
sought by Lilly against Zenith, jointly and severally with the American Home
Defendants and Rugby, is an accounting to Lilly for any and all profits derived
by Zenith from the sale of cefaclor and an award of damages to Lilly, in an
unspecified amount, allegedly sustained by Lilly as a result of Zenith's alleged
acts of misrepresentation and unfair competition. Lilly further seeks an award
of treble damages and litigation costs, including attorneys' fees and interest.
Under its unjust enrichment claim, Lilly seeks restitution in an unspecified
amount against Zenith, jointly and severally with the other defendants.

         With respect to the case styled HARVEY M. JASPER RETIREMENT TRUST AND
HARVEY M. JASPER INDIVIDUAL RETIREMENT ACCOUNT ET AL. VS. IVAX CORPORATION AND
PHILLIP FROST ET AL., previously reported in IVAX' 


                                       13
<PAGE>

Form 10-K for the year ended December 31, 1996, on April 28, 1997, the parties
executed a definitive Stipulation of Settlement pursuant to which they agreed to
settle the action in its entirety in exchange for the payment by defendants and
their insurers of $7.5 million. The settlement is contingent upon, among other
things, court approval after all class members have been given notice of the
proposed settlement and an opportunity to be heard. On May 7, 1997, the court
entered an order preliminarily approving the settlement and, among other things,
establishing procedures for giving notice to the class, filing of objections to
the settlement or requests for exclusion from the class, and establishing a
hearing date for final approval of the settlement.

         With respect to the case styled BERGEN BRUNSWIG CORPORATION VS. IVAX
CORPORATION, previously reported in IVAX' Annual Report on Form 10-K for the
year ended December 31, 1996, on May 5, 1997, IVAX filed a counterclaim against
Bergen Brunswig for breach of the merger agreement seeking damages, attorney's
fees and litigation costs.

         IVAX intends to defend the Pombar, Bergen, and Lilly lawsuits
vigorously, but their respective outcomes cannot be predicted. Any of such
lawsuits, if determined adversely to IVAX, could have a material adverse effect
on IVAX' financial position and results of operations. IVAX' ultimate liability
with respect to these lawsuits is not presently determinable.

ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K

(a)      EXHIBITS

         10.1     IVAX Corporation 1997 Executive Retention Plan

         10.2     Supplement to IVAX Corporation 1997 Executive Retention Plan 
                  for Robert C. Strauss

         10.3     Form of Supplement to IVAX Corporation 1997 Executive 
                  Retention Plan for Samuel Broder, Michael Fipps, Jane Hsiao, 
                  and Norwick B.H. Goodspeed.

         11       Computation of Earnings (Loss) Per Share

         27       Financial Data Schedule

         99.1     Press release dated May 6, 1997 announcing 1997 first quarter
                  earnings.

(b)      REPORTS OF FORM 8-K

                  On March 27, 1997, IVAX filed a Current Report of Form 8-K
         relating to its March 20, 1997 announcement that Bergen Brunswig
         Corporation unilaterally terminated the merger agreement between the
         parties and filed a lawsuit against IVAX.

                                       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.

                                   IVAX CORPORATION

         Date:  May 14, 1997       By: /S/ MICHAEL W. FIPPS
                                       --------------------
                                       Michael W. Fipps
                                       Senior Vice President-Finance
                                       Chief Financial Officer


<PAGE>


                                INDEX TO EXHIBITS

EXHIBIT NO.                 DESCRIPTION
-----------                 -----------
10.1            IVAX Corporation 1997 Executive Retention Plan

10.2            Supplement to IVAX Corporation 1997 Executive Retention Plan 
                for Robert C. Strauss

10.3            Supplement to IVAX Corporation 1997 Executive Retention Plan for
                Samuel Broder, Michael Fipps, Jane Hsiao, and Norwick B.H. 
                Goodspeed

11              Computation of Earnings (Loss) per Share

27              Financial Data Schedule

99.1            Press release dated May 6, 1997 announcing 1997 first quarter 
                earnings.