Lotus Pharmaceuticals, Inc. (OTCBB: LTUS)

Overview

Lotus Pharmaceuticals, Inc. (OTCBB: LTUS) is an emerging Chinese leader in offering medicines to ensure well-being, cure disease and improve quality of life. The company's goal is to discover, develop and successfully market innovative products to help people globally, to help patients manage afflictions and to enhance the quality of life.

Lotus continues to discover, develop and successfully market innovative products to help people globally, to help patients manage afflictions and to enhance the quality of life. Lotus has a unique positioning amongst major pharmaceutical companies in China, as it resides in a small class of leadership in both patented and generic pharmaceuticals. The Company is strengthening its medicine-based portfolio, and investing in strategic growth platforms as follows:

Innovation-driven prescription medicines
Cost-effective and high-quality generic medicines
Retail Sales of leading self-medication (OTC) brands
Human vaccines that address public health and therapeutic needs

Lotus leads their regional industry with 14 new product approvals in the China since 2000, with key approvals in 2005 for Levofloxacin Lactate Freeze-Dry Powder Injection (Junxin), the broad spectrum antibiotic. Lotus intends to make VALSARTAN, one of their best selling products, the number one prescribed brand in its class of high blood pressure medications in China. Lotus owns and operates 10 retail outlets throughout metropolitan Beijing.

Lotus has a unique positioning amongst major pharmaceutical companies in China, as it resides in a small class of leadership in both patented and generic pharmaceuticals. The company is strengthening its medicine-based portfolio, investing in strategic growth platforms:

Innovation-driven prescription medicines
Cost-effective and high-quality generic medicines
Retail Sales of leading self-medication (OTC) brands
Human vaccines that address public health and therapeutic needs

Retail Pharmacies

The company owns and operates 10 drug stores throughout many different districts of Beijing, including:

Xin Zhong Tai Drugstore
Long Ren Tang Drugstore
Wan Shou Road Drugstore
He Ping Li Drugstore
Feng Lin Lu Zhou
Youth Lake Drugstore
Capital Airport Drugstore
Young An Zhong Sheng Drugstore
Cheng Zhuang Road Drugstore
Feng Tai Drugstore

These 10 drugstores all deal in Western and traditional Chinese drinking pieces, medical treatment facilities of over 5,000 types, and adopts the general principles of the unification of distribution, balance, price and the comprehensive management. In face of the fierce competition of the market, with the faith in industry, practice, stridence and progress, Lotus has set up a development mode that agrees with the exploding Chinese economy and fits its own advancement.

Lotus intends to adhere to the general development strategy of putting pharmaceutical production and trade as its priority; adopt the principle of specification and scale-managements. In the future, the company plans to still concentrate on the development of high-tech personnel, knowledge, and scientific research, giving priority to projecting the image of the Company, and progress in the direction of industrialization and globalization of pharmacy.

Continued Growth

Pharmaceuticals continue to be the largest and most profitable business for Lotus. Cardiovascular and Oncology franchises are the key growth drivers, delivering dynamic performances in challenging markets, particularly from VALSARTAN for hypertension.

Altogether there are four organs attached to this Corporation handling respectively the scientific research on new medicine, the production, wholesale and retail of medicine to treat chronic myeloid leukemia. Overall, the division once again successfully increased its market share last year. With a total of 12 projects in clinical development, Lotus has a full, innovative and promising pipeline. The Company will continue to underwrite research and development in order to keep a sharp eye on the market’s evolution.

On February 15, 2007, Lotus Pharmaceuticals, Inc. announced it had completed a $3 million financing with a U.S.-based investment fund. The proceeds will be utilized to expand its domestic markets, increase sales and to acquire additional drugs for its Beijing retail stores.

Disclosure: Pentony Enterprises LLC was compensated $10,000 directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Product Lines

VALSARTAN

Among Lotus best selling products, VALSARTAN Capsules are a medicine for primary hypertension or high blood pressure. It is an angiotensin II receptor blocker, also called an ARB.1. Valsartan first came to market in America in 1996, known as Diovan. The Novartis AG version of the Diovan product generated almost 21 percent of that company's 2005 revenues from branded pharmaceuticals.

VALSARTAN can be prescribed in a broader range of heart failure patients and is no longer limited to those intolerant of ACE inhibitors. VALSARTAN will treat high blood pressure, high-risk heart attack survivors and people with heart failure. Every day, more than 3,000 patients suffer a heart attack in the United States. Although there have been significant advances in recent years, death following a heart attack remains unacceptably high.

Here’s how VASARTAN works to lower blood pressure: Angiotensin II is a chemical in the body that causes blood vessels to narrow. When you have narrow blood vessels, the heart has to pump harder to get blood through your vessels to your vital organs. This can increase the force of blood against the walls of your blood vessels, as well as your blood vessels' resistance to blood flow. VALSARTAN blocks the effects of angiotensin II that lead to the narrowing of the blood vessels (unhealthy vessel constriction).

High blood pressure, a disease which affects one billion people globally JNC-VII (2), greatly increases the risk of suffering a heart attack or developing heart failure. People who have suffered a heart attack are at greater risk of repeat attacks or death and may also progress to heart failure. In fact, within six years, nearly one-third of all heart attack survivors will be disabled with heart failure, a progressive condition in which the heart's muscle weakens after injury from other cardiovascular conditions, such as a heart attack or high blood pressure.

Brimonidine Tartrate

It is a new medicine for Anti-glaucoma and is produced solely by the Company as a medicine for the adrenaline receptors of an idiosyncrasy. It is mainly intended for diseases of an open glaucoma or high eye pressure.

Brimonidine Tartrate Eyes Drops

This is an anti-glaucoma medicine used for medical care and produced solely by Lotus Pharmaceuticals as a medicine for the adrenaline receptors of an idiosyncrasy a2. And it is mainly intended for diseases of open glaucoma or high eye pressure and high eye pressure as a side effect of ATL. The medicine was first put into market in America in 1998 and only in February 2, 1999, had Lotus received the legitimacy to produce it and put it into the domestic market. A fast and obvious curative effect, very few side effects, a very high exponent of cure and high endurement are prime features of the drug. It will produce no harmful effects of reducing blood pressure, resulting in calmness and so on, much like diazepam.

Leflunomide

Leflunomide is a medicine for the treatment of rheumatoid arthritis, systematically erythematic lupus, and psoriasis. It also has functions such as anti-rejection. It is among the first-rate new medications on today’s market in China

Levofloxacin Lactate for Injection

Levofloxacin is a popular anti-bacterial drug with indications of all kinds of bacterial inflections and used for medical care. In face of the fierce competition in the market, Lotus attaches great importance on quality and improvement in production, adhering to the principle that “no quality results in no survival”. Besides, it has also established a stably cooperative relationship with scientific research institutes on new medicine such as the Chinese Academy of Medicine and Chinese Academy for Traditional Chinese Medicine, as well as national inspection organs on drug quality, which lays a solid foundation for the development of the Company.

Market Ready

Lotus has a myriad of drugs ready for market deployment with Chinese FDA approval. The following list outlines the product inventory.

Gatifloxacin Lactate Injection

Indications of the two types of drugs are as follows: acute nasosinusitis caused by the treatment of sensitive bacteria, acute outbreaks of the chronic bronchitis, pneumonia attained in a community, simple or complex cystitis, nephritis of renal pelvis, simple urethra and cervix gonorrhea, acute simple-natured rectal infection of women.

Calcium Dibutyryl Adenosine Monophosphate for Injection

This medicine is for the treatment of angina and acute myocardial infarction. It is a ramification of the chemosuythesized dibutyryl adenosine and a type of activator on albumen. Its osmosis is stronger than that of dibutyryl adenosine and it is able to confront the reducing and dispelling effects of PDE. So it has a fast and enduring effect on reducing the oxygen shortage of cardiac muscles, dilating coronary artery, boost up the contractibility of cardiac muscles and increasing the flowage of blood from the heart.

Nicergoline for Infection (spec: 4mg)

Used for the treatment of poor conation and sensibility obstacles caused by naogengse sequela, such as hypoesthesia, poor concentration, memory recession, idea shortage and anxiety. It is a ramification of the half- synthetically ergot and can blocks the receptors and dilate bloods vessels. Therefore, it is able to strengthen the metabolism of brain cells and make better use of oxygen and dextrose, thus improve the working of the brain.

Soduim Aescinate for Injection (spec: 5mg, 10mg)

This medicine is used for used for the treatment of hydrocephalus caused by different diseases, tumefaction arising of wounds and operations, as well as circumfluence expediency of the vein. As a type of anti-tumefaction and inflammation-diminishing drug, it has effects such as anti-effusion, increasing vein tensility, anti-tumefaction, anti- inflammation, and improving blood circulation.

Rabeprazole Sodium, Rabeprazole Sodium Entericoated Tablet (spec: 10mg)

This medicine is used for the treated of gastric ulcer, duodenum ulcer, anastomosis ulcer, anti-flow of esophagus inflammation, Zollinger- Ellison syndrome.

Compound Allantoin Dispersible Tablets (spec: 12pill/plate)

It is used for the treatment of gastric ulcer, ulcer of the ball part of the duodenum and chronic gastritis.

Candesartan Pills (spec: 8mg)

It is used for the treatment of primary hypertension of light and medium levels. As AT1 CB of Angell receptors, it works through selectively blocking the combination between Angell, adrenal gland and vascular uterine cells thus restraining the shrinkage of blood vessels and excretion of aldosterone to reduce the blood pressure. (It is a patented product of Lotus Pharmaceuticals.)

Nicergoline Pills (spec: 10mg)

It is used for the treatment of poor conation and sensibility obstacles caused by naogenges sequela, such as hypoesthesia, poor concentration, memory recession, idea shortage and anxiety. It is a ramification of the half-synthetically ergot and can block the receptors and dilate blood vessels. Therefore, it is able to strengthen the metabolism of brain cells and make better use of oxygen and dextrose, thus improve the working of the brain. (It is a patented product of Lotus Pharmaceuticals.)

Rabeprazole Sodium Pills (spec: 10mg)

This medicine is used for the treatment of gastric ulcer, duodenum ulcer, anastomosis ulcer, anti-flow of esophagus inflammation, Zollinger-Ellison syndrome.

Disclosure: Pentony Enterprises LLC was compensated $10,000 directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Management

Dr. Liu Zhong Yi

Chairman, CEO & President

Dr. Liu Zhong Yi is the founder of Lotus Pharmaceuticals, Inc. in the United States and its Chinese antecedent, Liang Fang Pharmaceuticals Co., Ltd. in Beijing. He earned his Master’s Degree in Beijing hospitals, after doing his undergraduate studies in his homeland of Inner Mongolia. Dr. Liu holds the title of Deputy Chief Physician, as a professional apothecary, in operating Lotus (Liang Fang) as one of China’s most innovative and fastest growing pharmaceutical companies.

As a researcher and medical student, Dr. Liu excelled in the development of many new drugs in wide use in China today. While working for the Chinese Government in 1992, he established the Research Center of Space Flight Biological Engineering Technology, and continued his renowned research related to incretion diseases. Four years later, entering the private sector and invigorated by burgeoning capitalism in China, Dr. Liu started his first pharmaceutical company in Beijing.

The year 1999 marked a landmark for Dr. Liu and his company by the introduction of VALSARTAN, China’s most effective and popular drug for the treatment of hypertension. During this same period, he commenced his hugely successful retail drug stores that now number 10 throughout Greater Beijing.

In early 2006, Dr. Liu aligned his operations with Genesis Equity Partners, LLC, the U.S.-based capital investment firm. Lotus Pharmaceuticals, Inc. (OTCBB: LOTS) became a NASDAQ Bulletin Board Company when it officially commenced trading on month, day, 2006.

Adam Wasserman

Chief Financial Officer

Adam Wasserman is a highly effective financial executive with demonstrated success in increasing the profitability and value of companies. Throughout his career he has been an integral member of executive management responsible for financial and accounting. He has a strong background in financial reporting, budgeting and planning, mergers and acquisitions, auditing, accounting, automated systems, banking relations and internal controls. Mr. Wasserman was an audit manager at American Express Tax & Business in Fort Lauderdale , Florida.

During his tenure as manager, Mr. Wasserman successfully acted as an outsourced CFO and advisor to a diversified clientele in the wholesale, technology, distribution, medical, retail, and service industries in both the private and public sector. His responsibilities included supervising, training and evaluating senior staff members, work paper review, auditing, maintaining positive client relations, preparation of tax returns and preparation of financial statements and the related footnotes. Mr. Wasserman has experience with SEC filings such as initial public offerings, 10-Ks and 10-Qs. Prior to this, Mr. Wasserman was with Deloitte & Touche, LLP in New York City . Significant assignments included audits of public (SEC reporting) and private companies, tax preparation and planning, management consulting, systems design, staff instruction, and recruiting. Mr. Wasserman holds a Bachelor of Administration from the State University at Albany in Albany , New York . He is a CPA and a member of The American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. On several occasions, Mr. Wasserman has traveled to China to assist companies in transforming to GAPP and SEC reporting enterprises.

Disclosure: Pentony Enterprises LLC was compensated $10,000 directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Quotes & News

Disclosure: Pentony Enterprises LLC was compensated $10,000 directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

Contact Info

Lotus Pharmaceuticals, Inc.: 7900 Glades Road, Suite 420
Boca Raton, Florida 33434
Phone:: (877) 801-0344
Fax:: (954) 337-2204
Email:: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website:: http://www.lotuseast.com/

Disclosure: Pentony Enterprises LLC was compensated $10,000 directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.