================================================================================
			       UNITED STATES
		    SECURITIES AND EXCHANGE COMMISSION
			  Washington, D.C. 20549

				 Form 10-Q

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

For the quarterly period ended September 30, 1998, 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   000-21615
			------------


			  BOSTON BIOMEDICA, INC.
	  (Exact name of Registrant as Specified in its Charter)

     Massachusetts                                      04-2652826
------------------------                           ----------------------
    (State or other                                  (I.R.S. Employer
    Jurisdiction of                                  Identification No.)
      Incorporation or
     Organization)

   375 West Street,
   West Bridgewater,
     Massachusetts                                        02379-1040
------------------------                           ----------------------
 (Address of Principal                                    (Zip Code)
  Executive Offices)

Registrant's telephone number, including area code    (508) 580-1900
						      --------------

  Indicate by check 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 [ ]

  The number of shares outstanding of the  Registrant's  only  class  of  common
stock as of November 20, 1998 was 4,667,826.
================================================================================
<PAGE>

Part I. Financial Information
Item 1. Financial Statements

		BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
		   CONSOLIDATED STATEMENTS OF INCOME
			      (Unaudited)

<TABLE>
<CAPTION>

					  For the Three Months Ended   For the Nine Months Ended
						September 30,                 September 30,
					  ---------------------------  --------------------------
					      1998           1997          1998          1997
					  -------------  ------------  ------------  ------------
REVENUE:
<S>                                       <C>            <C>           <C>           <C>
  Products                                $  3,037,553   $ 3,342,772   $ 9,417,716   $ 7,886,684
  Services                                   3,143,406     2,797,010     9,419,169     7,111,101
					  -------------  ------------  ------------  ------------
    Total revenue                            6,180,959     6,139,782    18,836,885    14,997,785

COSTS AND EXPENSES:
  Cost of product sales                      1,575,772     1,783,485     5,022,361     4,110,569
  Cost of services                           2,157,365     1,815,023     6,479,595     4,746,749
  Research and development                     526,167       378,451     1,542,147       872,196
  Acquired research and development          3,380,812          -        4,230,812          -
  Selling and marketing                        913,891       870,425     2,768,518     2,259,379
  General and administrative                   986,202       940,403     2,999,214     2,314,485
					  -------------  ------------  ------------  ------------
    Total operating costs and expenses       9,540,209     5,787,787    23,042,647    14,303,378

    (Loss) income from operations           (3,359,250)      351,995    (4,205,762)      694,407


Interest income                                    352        60,294        27,393       259,460
Interest (expense)                             (15,458)       (2,044)      (19,600)       (4,540)
					  -------------  ------------  ------------  ------------

    (Loss) income before income taxes       (3,374,356)      410,245    (4,197,969)      949,327

(Provision for) benefit from income taxes       (2,453)     (164,098)      310,520      (379,731)
					  -------------  ------------  ------------  ------------

    Net (loss) income                     $ (3,376,809)  $   246,147   $(3,887,449)  $   569,596
					  =============  ============  ============  ============

    Net (loss) income per share, basic    $      (0.72)  $      0.06   $     (0.84)  $      0.13
    Net (loss) income per share, diluted  $      (0.72)  $      0.05   $     (0.84)  $      0.12

Number of shares used to calculate net
 income per share
    Basic                                    4,665,603     4,437,562     4,650,158     4,407,168
    Diluted                                  4,665,603     4,816,720     4,650,158     4,834,332

</TABLE>

		See Notes to Consolidated Financial Statements

				      2

		BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
		      CONSOLIDATED BALANCE SHEETS
			      (Unaudited)


						September 30,   December 31,
						-------------  -------------
						    1998            1997
						-------------  -------------

			 ASSETS
			 ------
CURRENT ASSETS:
   Cash and cash equivalents                     $   315,590    $ 2,772,360
   Accounts receivable, less allowances of
     $609,506 in 1998 and $446,517 in 1997         4,611,259      5,558,710
   Inventories                                     6,971,229      5,902,821
   Prepaid expense and other                         604,050        288,481
   Deferred income taxes                             378,458        328,562
						-------------  -------------
	Total current assets                      12,880,586     14,850,934
						-------------  -------------

Property and equipment, net                        6,447,549      4,980,164

OTHER ASSETS:
   Long term investment                                -          1,482,500
   Goodwill and other intangibles, net             2,864,501      2,212,220
   Notes receivable and other                        104,656        124,178
						-------------  -------------
						   2,969,157      3,818,898
						-------------  -------------
	     TOTAL ASSETS                        $22,297,292    $23,649,996
						=============  =============


     LIABILITIES AND STOCKHOLDERS' EQUITY
     ------------------------------------

CURRENT LIABILITIES:
   Current maturities of long term debt          $   672,695    $    14,878
   Accounts payable                                2,376,662      2,218,685
   Accrued compensation                              774,092      1,103,837
   Accrued income taxes                                -            132,802
   Other accrued expenses                          1,613,664        498,247
   Deferred revenue                                  801,835      1,249,024
						-------------  -------------
	Total current liabilities                  6,238,948      5,217,473
						-------------  -------------

LONG-TERM LIABILITIES:
   Long term debt, less current liabilities          910,101         26,820
   Deferred rent and other liabilities               736,403        189,117
   Deferred income taxes                             142,887        149,333

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
   Common stock, $.01 par value; authorized
      20,000,000 shares in 1998 and 1997;
      issued and outstanding 4,667,826 in 1998
      and 4,622,566 in 1997                           46,678         46,226
   Additional paid-in capital                     16,117,746     16,029,049
   Retained earnings                              (1,895,471)     1,991,978
						-------------  -------------
	Total stockholders' equity                14,268,953     18,067,253
						-------------  -------------
      TOTAL LIABILITIES & STOCKHOLDERS' EQUITY   $22,297,292    $23,649,996
						=============  =============

		 See Notes to Consolidated Financial Statements

				       3



		BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
		 CONSOLIDATED STATEMENTS OF CASH FLOWS
			      (Unaudited)

<TABLE>
<CAPTION>

								 For the Nine Months Ended
								       September 30,
							       ----------------------------
								   1998           1997
							       -------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                            <C>            <C>
  Net (loss) income                                             $(3,887,449)   $   569,596
  Adjustments to reconcile net income to net
     cash provided by operating activities:
  Depreciation and amortization                                     909,905        596,747
  Provision for doubtful accounts                                   197,903        140,676
  Deferred rent                                                     123,578        (53,916)
  Deferred income taxes                                             (56,342)       (34,364)
  Acquired research and development                               4,230,812           -
Changes in operating assets and liabilities:
  Accounts receivable                                               756,695       (926,265)
  Other assets                                                                     (11,823)
  Inventories                                                    (1,068,408)      (474,671)
  Prepaid expenses                                                 (268,266)       (97,869)
  Accounts payable                                                  112,289         86,323
  Accrued compensation and other expenses                          (183,971)      (312,574)
  Deferred revenue                                                 (447,189)       187,330
							       -------------  -------------
    Net cash provided by (used in) operating activities             419,557       (330,810)
							       -------------  -------------

CASH FLOWS FOR INVESTING ACTIVITIES:
  Acquired research and development                                (850,000)          -
  Payments for additions to property and equipment               (2,136,725)    (1,652,588)
  Purchase of Intangible Assets                                      (2,970)        (5,752)
  Advances under notes receivable and other assets                   19,522           -
  Purchase of long term investment                                     -          (750,000)
  Acquisitions (net of cash acquired)                              (878,901)    (1,993,722)
							       -------------  -------------
    Net cash used in investing activities                        (3,849,074)    (4,402,062)
							       -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from long term debt                                      883,598           -
  Repayments of long-term debt                                         -        (1,116,497)
  Proceeds of common stock issued                                    89,149        154,601
							       -------------  -------------
    Net cash provided by (used in) financing activities             972,747       (961,896)
							       -------------  -------------

DECREASE IN CASH:                                                (2,456,770)    (5,694,768)
    Cash and cash equivalents, beginning of period                2,772,360      8,082,642
							       -------------  -------------
    Cash and cash equivalents, end of period                    $   315,590    $ 2,387,874
							       =============  =============

</TABLE>

		 See Note to Consolidated Financial Statements

				       4

		BOSTON BIOMEDICA, INC. AND SUBSIDIARIES

	       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(1) Basis of Presentation
-------------------------

	The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for the
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. 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, all
adjustments (consisting of only normal recurring adjustments) considered
necessary for a fair presentation have been included. Operating results for the
nine months ended September 30, 1998 are not necessarily indicative of the
results that may be expected for the year ending December 31, 1998. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the annual report of Form 10-K filing for the fiscal year
ended December 31, 1997 for Boston Biomedica, Inc. and Subsidiaries ("the
Company" or "Boston Biomedica"). Certain prior years' amounts in the
consolidated financial statements may have been reclassified to conform to the
current year's presentation.

	The Company periodically evaluates the potential impairment of its
long-lived assets whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable.  At the occurrence of a
certain event or change in circumstances, the Company evaluates the potential
impairment of an asset based on estimated future undiscounted cash flows.  In
the event impairment exists, the Company will measure the amount of such
impairment based on the present value of estimated future cash flows using a
discount rate commensurate with the risks involved.  Based on management's
assessment as of September 30, 1998, the Company has determined that no 
impairment of long-lived assets exists.

(2)  Use of Estimates
---------------------

	In conformity with generally accepted accounting principles, management
is required to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenues, and expenses for the periods presented. Such
estimates include reserves for uncollectable accounts receivable as well as the
net realizable value of its inventory.

	The valuation methodology applied to the acquisition of BioSeq, Inc.
was based on estimated discounted future cash flows. The purchase price
accounting is based on the valuation which is being finalized. Significant
assumptions include gross and operating profit margins, and future tax,
discount, and royalty rates.

	Actual results could differ from the estimates and assumptions used by
management.

(3)  Inventories 
----------------

	Inventories consisted of the following:

			      September 30,     December 31,
				 1998              1997
			     --------------     ------------
       Raw materials...........$2,275,722        $2,033,040
       Work-in-process..........1,849,539         1,190,567
       Finished goods...........2,845,968         2,679,214
			     --------------     ------------
			       $6,971,229        $5,902,821
			     ==============     ============

(4)  Comprehensive Income
-------------------------

	Statement of Financial Accounting Standards No. 130, "Reporting
Comprehensive Income" (SFAS 130) is effective for fiscal years beginning after
December 15, 1997. SFAS 130 requires that changes in comprehensive income be
shown in a financial statement that is displayed with the same prominence as
other financial statements. The Company adopted SFAS 130 in the first quarter
of fiscal year ended December 31, 1998. Adoption of this statement has had no
impact on the Company's consolidated financial position and results of
operations as comprehensive income (loss) is the same as net income (loss).

				   5

		BOSTON BIOMEDICA, INC. AND SUBSIDIARIES

	       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(5)  Acquired Research and Development
--------------------------------------

	In March 1998, the Company acquired from BioSeq, Inc.("BioSeq"), the
sole and exclusive worldwide right to development stage technology, including
the use of BioSeq technical information, licensed processes and improvements to
develop, manufacture, market and sell or sublicense products or services in the
field of human in vitro immunodiagnostics. In accordance with accounting
standards for development stage technology, the purchase price and related
acquisition costs totaling $850,000, were expensed in the first quarter.


(6)  Computation of Net Income per Share
----------------------------------------

	In February 1997, the Financial Accounting Standards Board issued
Statement of  Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share". SFAS 128 establishes a different method of computing net income per
share than was required under the provisions of the previous
standard-Accounting Principles Board opinion No. 15. The following illustrates
the computation of basic and diluted net income per share.

<TABLE>
<CAPTION>

				     Three Months Ended         Nine Months Ended
					September 30,             September 30,
				 -------------------------  ------------------------
				     1998         1997          1998        1997
				 ------------ ------------  ------------ -----------

<S>                              <C>          <C>           <C>          <C>
Average common stock outstanding   4,665,603    4,437,562     4,650,158   4,407,168

Net effect of dilutive common
   stock equivalents-based on
   treasury stock method using
   average market price *             -           379,158         -         427,164

				 ------------ ------------  ------------ ------------
				   4,665,603    4,816,720     4,650,158    4,834,332
				 ============ ============  ============ ============

Net (loss) income                $(3,376,809)  $  246,147   $(3,887,449)  $  569,596
				 ============ ============  ============ ============

Net (loss) income per share            (0.72)        0.05         (0.84)        0.12
				 ============ ============  ============ ============

</TABLE>

	* Potentially dilutive securities of 136,554 and 203,396 were
	not included in the computation of diluted earnings per share
	because to do so would have been antidilutive for the three and
	nine months ended September 30, 1998.

(7)  Extension of Line of Credit
--------------------------------

	Effective June 30, 1998, the maturity date of the Company's $7.5
million revolving line of credit agreement was extended from June 30, 1999 to
June 30, 2000. Accordingly, the balance borrowed against the line as of
September 30, 1998 is classified as long term debt.
		
(8) Acquisition of BioSeq, Inc.
-------------------------------

	On September 30, 1998 the Company acquired the remaining common stock
outstanding of BioSeq (approximately 81%).   The total purchase price was
approximately $4,266,000 which includes the original 19% investment under the
1996 Purchase Agreement, $879,000 of cash (net, of acquired cash of $121,000),
warrants to purchase 100,000 shares of the Company's common stock, the
conversion of BioSeq stock options into Boston Biomedica stock options, minimum
royalty payments of $424,000, debt and accrued interest assumed at the time of
acquisition of approximately $736,000, and other acquisition costs. The
acquisition was financed from a combination of debt and cash.  The acquisition
has been recorded using purchase accounting, and BioSeq's results will be
included in the consolidated results of the Company commencing October 1, 1998.


				   6

		BOSTON BIOMEDICA, INC. AND SUBSIDIARIES

	       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


	BioSeq is a development stage company with patent pending technology
based on pressure cycling technology ("PCT"). Approximately $3,381,000 of the
purchase price has been allocated to in-process research and development and
expensed in the third quarter based on an independent valuation of the assets
acquired. The patents on the core technology have been valued and capitalized
at $778,000, which will be amortized over their remaining life, approximately
17 years.  Other assets acquired are primarily laboratory equipment, and will
be depreciated over their remaining useful lives of three to ten years.

	Allocated in-process research and development consists of two projects
that were on going at the time of the acquisition. Approximately $1.6 million
had been expended prior to September 30, 1998 by BioSeq on these projects.  The
Company estimates that it will spend in excess of $4.8 million through the year
2002 to complete their development into commercially viable products. Remaining
development efforts are focused on feasibility studies to establish the key
performance parameters and biological activities to be retained, designing and
building a prototype instrument, further development of the prototype for the
applications, scale-up of design, data generation and clinical trials, apply
and obtain Food and Drug Administration approval,  final design modifications,
and transfer to manufacturing. The Company hopes to begin realizing benefits
from these applications beginning in the year 2002. If these projects are not
successfully developed, the Company may not realize the value assigned to the
in-process research and development projects.  The value assigned to the core
technology and other acquired intangible assets may also become impaired.

	The valuation methodology was based on estimated discounted future cash
flows. The above purchase price accounting is based on the valuation which is
being finalized.  Significant assumptions include gross and operating profit
margins, and future tax, discount, and royalty rates.  Recent Securities and
Exchange Commission guidelines on valuation methodologies for in-process
research and development are still evolving and not expected to be finalized
for several months. Final guidelines may require a change in estimate possibly
resulting in a restatement of the Company's first and third quarter 1998
results. Any such change may have a corresponding impact on other intangibles
including patents and goodwill.  The Company has been advised that the SEC and
the accounting profession are in dialogue regarding the retroactive application
of these recent guidelines.  The Company cannot predict the outcome of the
dialogue, but intends to comply with that outcome after it is announced.

				  Quarter Ended          Nine Months Ended
				  September 30,            September 30,
			     -----------------------  -------------------------
				 1998        1997        1998         1997
			      Pro Forma   Pro Forma    Pro Forma    Pro Forma
			     ----------- -----------  ------------ ------------
   Revenues                   6,192,133   6,146,052    18,870,547   15,012,035
   Operating (loss)            (311,578)   (123,636)   (1,841,616)  (3,795,749)
   Net (loss)                  (193,178)    (31,383)   (1,141,802)  (3,638,073)
   Loss per share                 (0.04)      (0.01)        (0.24)       (0.76)


(9)  Recent Accounting Pronouncements
-------------------------------------

	Statement of Financial Accounting Standards No. 132, "Employers'
Disclosure about Pensions and Other Postretirement Benefits" (SFAS 132) is
effective for fiscal years beginning after December 15, 1997.  SFAS 132 revises
employers' disclosures about pension and other postretirement benefit plans. It
does not change the measurement or recognition of those plans. The Company will
adopt SFAS 132 in the fiscal year ended December 31, 1998, although no impact
on operating results or financial position is expected.

	Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities" (SFAS 133) is effective for all
fiscal quarters of fiscal years beginning after June 15, 1999. SFAS 133
addresses the accounting for derivative instruments, including certain
derivative instruments embedded in other contracts, and hedging activities. The
Company will adopt SFAS 133 in the fiscal year ending December 31, 1999
although no impact on operating results or financial position is expected.


				       7



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

Three Months Ended September 30, 1998 and 1997

	Total revenue showed only a slight increase of 0.7%, or $41,000, to
$6,181,000 for the three months ended September 30, 1998 from $6,140,000 in the
prior year period. This increase was the net result of an increase in specialty
laboratory services of 12.4%, or $346,000, to $3,143,000 from $2,797,000,
offset by a decrease in product sales of 9.1%, or ($305,000), to $3,038,000
from $3,343,000. The increase in service revenue was the result of additional
revenue on new government research contracts at the Company's new facility in
Gaithersburg, MD, as well as increased revenue from immunology testing at its
clinical testing laboratory in Connecticut. The decrease in product revenue was
the result of lower instrument and panel sales, partially offset by continued
significant increases in Accurun(r) sales.  Panel sales were negatively
effected by slower spending rates at several major customers, and the lower
instrument sales were a result of a customer requested delay in shipping dates.

	Gross profit decreased 3.7%, or $93,000, to $2,448,000 for the current
three months from $2,541,000 in the prior year period. Overall gross margin
decreased to 39.6% from 41.4%.  The decrease was primarily  attributable to
services as margins at the Company's clinical testing laboratory experienced
test kit cost increases.

	Research and development expenses increased 39.0%, or $148,000, to
$526,000 for the current three months from $378,000 in the prior year period.
The increase was primarily attributable to additional spending on new molecular
test services, new Quality Control Products, and development spending on new
instruments.

	There was an accounting charge of $3,381,000 for the quarter ended
September 30, 1998 related to in-process technology as a result of the
Company's $4,266,000 acquisition of BioSeq, Inc. See note 8 to the consolidated
financial statements.

	Selling and marketing expenses increased 5.0%, or $43,000, to $914,000
for the current three months from $871,000 in the prior year period. This
increase was primarily the result of increased promotional and trade show
expenditures for all the Company's products and services.

	General and administrative expenses increased 4.9%, or $46,000, to
$986,000 for the current three months from $940,000 in the prior year period.
The increase relates to the addition of human resource, information systems,
and administrative support personnel.

	Net interest expense was ($15,000) for the current quarter compared to
net interest income of $58,000 in the prior year period. The Company has
productively employed the proceeds from its initial public offering and, at the
end of the second quarter of 1998, began to borrow funds under its line of
credit to continue its infrastructure investments.

	Based on current tax planning, the Company provided taxes at the
combined federal and state statutory rate of 38% in the current quarter versus
40% in the prior year period.  There was no tax benefit associated with the
acquired in-process technology from BioSeq, Inc. as the acquisition was
structured as a stock purchase.

Nine Months Ended September 30, 1998 and 1997

	Total revenue increased 25.6%, or $3,839,000, to $18,837,000 for the
nine months ended September 30, 1998 from $14,998,000 in the prior year period.
This increase was the result of an increase in product sales of 19.4%, or
$1,531,000, to $9,418,000 from $7,887,000 and an increase in specialty
laboratory services of 32.5%, or $2,308,000, to $9,419,000 from $7,111,000. The
BBI Source acquisition contributed $1,852,000 to the overall revenue increase.
The remaining increase in product revenue is due to Accurun(r) sales which more
than doubled those of the prior year period. The remaining increase in
specialty laboratory services is attributable to increases  in both clinical
testing and contract research revenue.

				       8

	Gross profit increased 19.5%, or $1,195,000, to $7,335,000 for the
current nine months from $6,140,000 in the prior year period. The gross profit
margin decreased to 38.9% for the current nine months versus 40.9% in the prior
year period. This is due primarily to lower margins on instruments and higher
test kit costs at the Company's clinical testing laboratory.

	Research and development expenses increased 76.8%, or $670,000, to
$1,542,000 for the current nine months from $872,000 in the prior year period.
The increase is primarily the result of the inclusion of Source's development
efforts for new laboratory instruments as well as additional spending on
molecular tests and Quality Control Products.

	There were two accounting charges during the nine months ended
September 30, 1998.  In the first quarter there was an accounting charge of
$850,000 related to the acquisition of the worldwide exclusive rights to BioSeq
Inc's immunodiagnostic research and development technology.  In the third
quarter, the Company had a charge of $3,381,000 related to in-process
technology as a result of the Company's $4,266,000 acquisition of BioSeq, Inc.
See notes 5 and 8 to the consolidated financial statements.

	Selling and marketing expenses increased 22.5%, or $509,000, to
$2,768,000 for the current nine months from $2,259,000 in the prior year
period. The inclusion of Source contributed $138,000 to the increase.  In
addition,  increased personnel costs associated with the expansion of the TQS
and clinical laboratory sales, marketing and technical support staff as well as
increased promotional and trade show expenditures contributed to the increase.

	General and administrative expenses increased 29.6%, or $685,000, to
$2,999,000 for the current nine months from $2,314,000 in the prior year
period. This increase was a result of the first time inclusion of Source as
well as additional human resource, information systems, collection, and
administrative support personnel.

	Net interest income decreased 96.9%, or $247,000 to $8,000 for the
current nine months from $255,000 in the prior year period. The Company has
productively employed its proceeds from its initial public offering and, at the
end of the second quarter of 1998, began to borrow funds from its revolving
line of credit to continue its infrastructure investments.

	Based on current tax planning, the Company provided taxes at the
combined federal and state statutory rate of 38% in the current quarter versus
40% in the prior year period.  There was no tax benefit associated with the
acquired in-process technology from BioSeq, Inc. as the acquisition was
structured as a stock purchase.


Liquidity and Financial Condition

	As of September 30, 1998, the Company has cash and cash equivalents of
316,000, and borrowed $910,000 against its line of credit, primarily in
connection with the acquisition of BioSeq. Working capital had declined from
$9,633,000 to $6,642,000, primarily due to the investment of the cash and cash
equivalents in the business as discussed further below.

	The Company has financed its operations to date through cash flow from
operations, borrowings from banks and issuance of common stock. The Company
expects to meet its working capital needs from its cash flow and revolving line
of credit.

	Net cash provided by operations for the nine months ended September 30,
1998 was $420,000 as compared to cash used of ($331,000) in the prior year
period. This improvement in cash flow was primarily attributable to strong cash
collections in the third quarter of 1998.

	Cash used in investing activities for the nine months ended September
30, 1998 was $3,849,000 as compared to $4,402,000 in the prior year period. The
cash used in 1998 relates to the acquisition of the remaining common stock of
BioSeq, Inc. and the related, acquired in-process technology, as well as the
equipment purchases and

				       9


improvements in the Company's Massachusetts and Maryland facilities. The cash
used for investing in 1997 includes the acquisition of the net assets of Source
Scientific, Inc. as well as expenditures for equipment and improvements at two
facilities.

	Cash provided by financing activities for the nine months ended
September 30, 1998 was $973,000 as compared to cash used of ($962,000) in the
prior year period. The cash received was from borrowings against the revolving
line of credit and the exercise of stock options during the period.

	The Company anticipates capital expenditures for the expansion of the
West Bridgewater facility and additional improvements in its Maryland facility
as a result of recently awarded contracts to be completed by the end of 1998.
The Company also expects to replace its business information software over the
next twelve months at a cost of approximately $750,000, of which approximately
$150,000 has already been expended. The Company believes that the borrowing
capacity available under its revolving line of credit and cash generated from
operations are sufficient to fund operations and anticipated capital
expenditures through the year ended December 31, 1999. Except for the purchase
orders and commitments in connection with the facilities expansion and the
business information software, there were no material financial commitments for
capital expenditures as of September 30, 1998.

Recent Accounting Pronouncements

	Statement of Financial Accounting Standards No. 132, "Employers'
Disclosure about Pensions and Other Postretirement Benefits" (SFAS 132) is
effective for fiscal years beginning after December 15, 1997.  SFAS 132 revises
employers' disclosures about pension and other postretirement benefit plans. It
does not change the measurement or recognition of those plans. The Company will
adopt SFAS 132 in the fiscal year ended December 31, 1998, although no impact
on operating results or financial position is expected.

	Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities" (SFAS 133) is effective for all
fiscal quarters of fiscal years beginning after June 15, 1999. SFAS 133
addresses the accounting for derivative instruments, including certain
derivative instruments embedded in other contracts, and hedging activities. The
Company will adopt SFAS 133 in the fiscal year ending December 31, 1999,
although no impact on operating results or financial position is expected.

Year 2000 Computer Systems Compliance

	Concerns have been widely expressed regarding the inability of certain
computer programs to process date information beyond year 1999. These concerns
focus on the impact of the Year 2000 problem on business operations and the
potential costs associated with identifying and addressing the problem. Based
on its review to date, the Company believes that its products are "Year 2000
compliant."  The Company has implemented an action plan to ensure that all
systems under its control, including its operations management, administration
and financial systems (collectively, its "business systems") will be fully year
2000 compliant.

	During the third quarter of 1998, as part of its plan to significantly
improve the features, capabilities and performance of its business systems, the
Company purchased and commenced implementation of an enterprise resource
planning system ("ERP system"), which will be installed at all of the Company's
locations. The vendor has certified that the system is Year 2000 compliant. The
Company expects to expend approximately $750,000 on the ERP system including
implementation consulting.  Through September 30, 1998, approximately $150,000
of this amount has been disbursed.  The Company expects to complete
implementation by September 30, 1999.  As a backup plan in the event of any
time delays, the Company would upgrade its business systems to Year 2000
compliant versions of its existing software.

	The Company has begun to survey major customers and suppliers to
determine the status and schedule for their Year 2000 compliance, which it
plans to complete by April 30, 1999. Where it believes that a particular
supplier's situation poses unacceptable risks, the Company plans to identify an
alternative source.

				       10

	Based upon its review, the Company does not believe that the Year 2000
problem will have a material adverse effect on the Company. However, there can
be no assurances that failure to comply with Year 2000 by parties outside its
control will not have a material adverse affect on the Company.


Forward-Looking Statements

	This Quarterly Report on Form 10-Q contains forward-looking statements
concerning the Company's financial performance and business operations.  The
Company wishes to caution readers of this Quarterly Report on Form 10-Q that
actual results might differ materially from those projected in any
forward-looking statements.

	Factors which might cause actual results to differ materially from
those projected in the forward-looking statements contained herein include the
following: finalization of SEC guidlines for valuation of in process research
and development as it relates to purchase accounting; inability of the Company
to develop the end user market for quality control products; inability of the
Company to integrate the business of Source Scientific, Inc. into the Company's
business; inability of the Company to grow the sales of Source Scientific, Inc.
to the extent anticipated; the renewal and full funding of contracts with
National Institutes of Health (NIH), National Heart, Lung and Blood Institute
(NHLBI) and other government agencies; the inability of the Company to develop
the technology recently acquired as part of its purchase of BioSeq, Inc. to the
level of commercial utilization; inability of the Company to obtain an adequate
supply of the unique and rare specimens of plasma and serum necessary for
certain of its products; significant reductions in purchases by any of the
Company's major customers; and the potential insufficiency of Company
resources, including human resources, plant and equipment and management
systems, to accommodate any future growth. Certain of these and other factors
which might cause actual results to differ materially from those projected are
more fully set forth under the caption "Risk Factors" in the Company's
Registration Statement on Form S-1 (SEC File No. 333-10759).

				       11


	BOSTON BIOMEDICA, INC.

Part II. Other Information

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

None

Item 6.   Exhibits and Reports on Form 8-K
  (a) Exhibits
	Exhibit No.                                               Reference
	-----------                                               ---------
	3.1     Amended and Restated Articles of Organization
		of the Company                                       A**
	3.2     Amended and Restated Bylaws of the Company           A**
	4.1     Specimen Certificate for Shares of the Company's
		Common Stock                                         A**
	4.2     Description of Capital Stock (contained in the
		Restated Articles of Organization of the
		Company filed as Exhibit 3.1)                        A**
	27      Financial Data Schedule                          Filed herewith
_______________________

A       Incorporated by reference to the Company's Registration Statement on
	Form S-1 (Registration No. 333-10759)(the "Registration Statement").
	The number set forth herein is the number of the Exhibit in said
	registration statement.
B       Incorporated by reference to the Company's Annual Report on Form 10K
	for the fiscal year ended December 31, 1997.

**      In accordance with Rule 12b-32 under the Securities Exchange Act of
	1934, as amended, reference is made to the documents previously filed
	with the Securities and Exchange Commission, which documents are hereby
	incorporated by reference.

(b)  Reports on Form 8-K

	None 

				       12

				   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.

				BOSTON BIOMEDICA, INC.

Date: November 23, 1998        By    /s/  KEVIN W. QUINLAN
      -----------------              ---------------------------
				     Kevin W. Quinlan, Chief Financial Officer
					 (Principal Financial Officer)


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