BEIJING, March 21, 2007 (PRIME NEWSWIRE) -- Lotus Pharmaceuticals, Inc. (OTCBB:LTUS) released an exchange between its CEO Dr. Liu Zhongyi and a Wall Street financial advisor, describing the Company's goal to rank among China's top pharmaceutical companies with annual revenues exceeding $100 million.
The discussion followed Lotus's obtaining initial financing of $3 million on February 12, 2007, and the program has already attracted more interest from U.S. funds that could enable Lotus to expand through acquisition and its well-performing R&D program.
Following are excerpts from Dr. Liu's address, highlighting his vision and ambitious program:
"We have targeted the acquisition of a Beijing company that is a major drug supplier to 99% of the 'Triple A' hospitals in Beijing (the highest grade hospitals in China), and to 90% of the 'Double A' hospitals in Beijing. These dominant market positions are valuable to Lotus to market its current drug products as well as reselling new drugs from overseas pharmaceutical companies. If completed, this acquisition could add about $100 million to Lotus's annual revenues.
"We have also targeted a pharmaceutical manufacturing and marketing company in South China. The value of this company is its strong R&D capability. This company had revenues of about $9 million last year, with a 20% profit margin. It has developed and owns 30 new drugs approved by SFDA, with very strong market prospects. One of the new drugs, already in the clinical trial stage, is classified as a 'National Class One New Drug' for cardiac vascular diseases. This drug is expected to deliver an effective and cheap alternative to the current costly drugs of the same category.
"With appropriate financing, our strategy is that, by acquiring these two companies, Lotus will establish itself as one of the major pharmaceutical companies with much expanded marketing channels and a good range of products, plus a superb R&D capability. The revenue expansion comes from selling a range of both high turn-around products and new and effective drugs through the much-expanded marketing channels. The profit margin improvement comes from selling more self-manufactured drugs. These are the key strategies for a pharmaceutical company to win in China under the current market conditions.
"To summarize our post-acquisition profile, Lotus could have near-term revenues of about $142 million, with a 10% profit margin. More importantly, it would put Lotus on the fast track to leverage on the synergy of the companies. And we conservatively forecast 20% growth in revenue for the coming years, with an average margin of about 12-15% after acquisitions. This would place Lotus amongst the top 100 pharmaceutical companies in China," Dr. Liu concluded.
Lotus Pharmaceuticals is a 2006 graduate of the Genesis Equity Partners' capital and growth program created by its U.S. partner Genesis Technology Group, Inc. (OTCBB:GTEC).
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. ("Lotus") owns and operates Liang Fang Pharmaceutical, Ltd. ("Liang") and En Zhe Jia Shi Pharmaceutical, Ltd. ("En Zhe"), two Chinese pharmaceutical companies located in Beijing. Liang and En Zhe form a large comprehensive enterprise, which deals in an integration of the production, trade, sales and marketing of pharmaceuticals. Together, they possess some of the most advanced pharmaceutical-production equipment used in China, workshops authenticated by the National GMP, a suite of various medicines produced by Liang and/or En Zhe (together, "Lotus East"), and a large number of high-tech personnel. Lotus East has business and office facilities of 2,000 square meters and a warehouse of 1,000 square meters. Lotus East performs scientific research on new medicines, and the production, wholesale and retail sale of medicines. For more information, visit www.LotusEast.com.
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CONTACT: Lotus Pharmaceuticals, Inc. Adam Wasserman, CFO (877) 801-0344 Fax: 954-337-2204 info@LotusEast.com