June 11, 1996






Securities & Exchange Commission
Corporate Finance Division
Chief Counsel's Office
450 Fifth Street, N.W.
Washington, DC 20549-1007

RE: Cheung Laboratories, Inc.
    SEC File No. 2-93826-W

Dear Sir or Madam:

Enclosed is an original and four copies of a Form 8K for Cheung
Laboratories, Inc.

Should you have any questions, please give us a call.

Very truly yours,



Augustine Y. Cheung
President


AYC/ls
Enclosures


              SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C. 20549

                   ___________________________

                            FORM 8-K

                         CURRENT REPORT




               Pursuant to Section 13 or 15(d) of 
               the Securities Exchange Act of 1934



Date of Report                              June 11, 1996



                     CHEUNG LABORATORIES, INC.


                             MARYLAND



2-93826-W                   52-1256615
(Commission File Number)    (IRS Employer Identification  Number)




10220 Old Columbia Road Suite I Columbia, MD 21046

                                    (410) 290-5390







ITEM 5:  OTHER EVENTS


Cheung Laboratories, Inc. (the "Registrant') has entered into an
agreement to repurchase 16 million shares of its outstanding
common stock by rescinding its 9.6% ownership in Aestar Fine
Chemical Incorporated Limited ("Aestar") and to repurchase an
additional 4 million shares at $0.55 per share from Mr. Gao Yu
Wen. The total 20 million share transaction, which is to be
consummated with payment of $2.2 million to Mr. Gao by November
30, 1996, represents the repurchase of approximately  51% of the
outstanding common shares of the Registrant.

On March 31, 1996,there were 39,502,664 shares of common stock
outstanding.  The 16 million share redemption associated with
rescinding the Registrant's 9.6% interest in Aestar was effected
under the agreement and the 16 million shares will be retired
when The Registrant completes the transactions by paying Mr. Gao
$2.2 million for the remaining 4 million shares in the
transaction. 

On July 31 1995, the Registrant announced it had sold a
controlling interest to Mr. Gao in order to position the
Registrant to enter into the large Chinese personal care market
through Aestar and to capitalize upon the businesses and business
contacts of Mr. Gao.  Mr. Gao, a businessman with companies in
China, Hong Kong and Macau, also serves as Deputy Director of the
Economic Committee of the City of Zhongshan, Guangdong Province,
China (PRC). Because of recent health problems, Mr. Gao will not
be able to fulfill his desires to open business opportunities for
the Registrant and develop an ongoing business with Aestar. 
Therefore, Mr. Gao and the Registrant have mutually agreed to end
their relationship.  This step will allow the Registrant to focus
its resources on its core business, which is the design, 
manufacturing and sale of microwave therapy devices for cancer
and prostatic diseases. 

                           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 of the undersigned thereunto duly authorized.

                                                                  
                                   CHEUNG LABORATORIES, INC.

Date: June 11, 1996                                               
                           By:______________________
                                                                  
                            Dr. Augustine Y. Cheung, President