Navigation Links
Lotus Pharmaceuticals, Inc. Purchases Intellectual Property Rights to an Established Prescription Drug
Date:2/18/2009

BEIJING, Feb. 18 /PRNewswire-Asia-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS, "Lotus" or the "Company"), a company that controls and operates pharmaceutical companies in the People's Republic of China ("PRC"), today announced that contractually controlled Beijing Liang Fang Pharmaceutical Co., Ltd. ("Liang Fang") entered into an intellectual rights transfer contract with Beijing Yipuan Bio-Medical Technology Co., Ltd. ("Yipuan") in December 2008 to acquire the drug Yipubishan, a highly effective and stable octreotide acetate injection solution, according to a clinical research report issued by Beijing Union Medical College Hospital Center for Clinical Pharmacology, used to treat the symptoms of gastric ulcers and hemorrhages of the upper digestive tract since 2004.

Liang Fang will pay RMB54 million (about $7.9 million) in installments within six months of the date of signing the intellectual rights transfer contract with Yipuan (the intellectual property rights to Yipubishan are documented in an official drug certificate for Yipubishan). Liang Fang has paid RMB20 million (approximately $2.9 million) to Yipuan as of December 31, 2008 and the remaining balance of RMB34 million (approximately $5 million) is due by May 31, 2009. Liang Fang intends to use its present working capital to fund the project.

Part of the development costs of Yipubishan were funded through the use of grants from the Innovation Fund for Small - Medium Technology Based Firms of the Ministry of Science and Technology of the PRC. Because of its advanced bio-medical technology and impact, Yipubishan became the first prescription drug of its kind developed in China to be included in the National Torch Project. The National Torch Project, approved by China State Department, recognizes and promotes commercialization of high-tech discoveries and encourages companies to use high technology.

Estimated third party revenue for Yipubishan in 2008 was RMB67 million (about $9.8 million), with a 75.0% gross profit margin. Lotus is expecting to have RMB75 million of revenue from Yipubishan in 2009 with a 75.0% gross profit margin. After 2009, revenue from Yipubishan is expected to increase by 25% a year through 2011.

Yipuan has a manufacturing agreement with Beijing Si Huan pharmaceutical Co., Ltd. ("Si Huan") to manufacture Yipubishan. Si Huan will continue to manufacture Yipubishan for Liang Fang. Yipubishan's current packaging will not be changed.

As part of the sale of Yipubishan, Yipuan is transferring its distribution channels, including sales representatives, to Liang Fang in phases. Most of Yipuan's sales of Yipubishan take place in Jiangxi province, Xi'an and Shanghai. In 2006, Liang Fang started distributing Yipubishan in Anhui and Inner Mongolia. Liang Fang is considering whether to use the distribution channels it is acquiring from Yipuan for some of its own products.

"The purchase of Yipubishan is part of Liang Fang's strategy to increase its drug portfolio by acquiring well established drugs that have demonstrated commercial success," said Dr. Zhongyi Liu, the CEO and Chairman of Lotus. "We are familiar with the superior quality of this drug, believe it has great market potential, and will sell it through our national sales network along with the distribution channels which we acquire from Yipuan."

About Lotus Pharmaceuticals, Inc.

Lotus Pharmaceuticals, Inc. controls and operates Liang Fang Pharmaceutical, Ltd. ("Liang Fang") and Enze Jiashi Pharmaceutical, Ltd. ("Enze"), two pharmaceutical companies located in Beijing, China. Together, Liang Fang and Enze ("Lotus East") undertake the development, production, marketing and distribution of pharmaceutical products. Lotus East has some of the most advanced pharmaceutical production equipment in China and its manufacturing facilities meet national Good Manufacturing Practices (GMP). The Company distributes its own portfolio of drugs and pharmaceutical products produced by other manufacturers in the PRC through an extensive national distribution network. Lotus owns ten pharmacies in Beijing through which it directly sells over 5,000 western drugs, Traditional Chinese Medicines (TCM) and medical equipment items.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive and regulatory conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Additional information regarding risks can be found in the Company's Annual Report on Form 10K filed with the SEC. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Except as may be required by federal securities laws, the Company has no obligation to update the forward-looking information contained in this press release.

    For further information, please contact:

    Lotus Pharmaceuticals, Inc.
     Mr. Adam Wasserman, CFO
     Tel:   +1-877-801-0344
     Email: info@LotusEast.com
     Web:  http://www.lotuseast.com

    CCG Investor Relations, Inc.
     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:  http://www.ccgirasia.com

'/>"/>
SOURCE Lotus Pharmaceuticals, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Lotus Pharmaceuticals, Inc. Purchases Land Use Rights to Grow its Business and Reduce Costs
2. Lotus Pharmaceuticals to Present at Rodman & Renshaw Conference
3. Lotus Pharmaceuticals Announces Conference Call to Discuss Second Quarter 2008 Results
4. Lotus Pharmaceuticals, Inc. Reaffirms its Confidence in Meeting its Make Good Target for Fiscal Year 2008
5. Lotus Pharmaceuticals, Inc. Announces Conference Call to Discuss First Quarter 2008 Results
6. Lotus Pharmaceuticals, Inc. Announces Resignation of Director Mel Rothberg
7. Lotus Pharmaceuticals, Inc. Announces Fourth Quarter and Fiscal Year 2007 Results
8. Lotus Pharmaceuticals, Inc. Announces Conference Call to Discuss Fourth Quarter and Fiscal Year 2007 Results
9. Lotus Pharmaceuticals Raises $5 Million in Private Placement
10. Lotus Pharmaceuticals, Inc. Implements Environmentally-friendly Cost Saving Strategies
11. Lotus Blossom Consulting Announces E-Book on Infertility Treatment Financing
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/29/2016)... Texas (PRWEB) , ... April 29, 2016 , ... Spine ... neck pain, is proud to announce one of their physicians has been invited to ... Family Physicians (Texas ACOFP) Family Practice Review conference on April 30, 2016. , ...
(Date:4/29/2016)... ... 29, 2016 , ... The Gluten-Free Certification Program (GFCP), in ... the launch of the GFCP Scoop in response to consumer demand ... the GFCP Scoop site is to keep the gluten-free community updated ...
(Date:4/29/2016)... ... ... Reltok Nasal Products proudly announces that Boston Medical Products, Inc., a leading ... specialty, has added the KOTLER NASAL AIRWAY™ to its diverse product line. , A ... safety device secured by nasal surgeons onto the floor of the nasal passages, at ...
(Date:4/29/2016)... ... April 29, 2016 , ... Regenerative Medicine Solutions ... Work employee satisfaction survey, earning them second place for Tampa’s Best Places to Work. ... , “This is a great accomplishment for our team,” says RMS Human Resources ...
(Date:4/29/2016)... ... April 29, 2016 , ... Natren, Inc. recently ... of probiotics, Petbiotics ™, as they fondly call them. As animal lovers, ... networking for their non-profit organizations. Animal rescues across the nation face huge hurdles ...
Breaking Medicine News(10 mins):
(Date:4/28/2016)... Calif. , April 28, 2016  Marking ... widely accessible breast and ovarian cancer risk test, ... panel analyzing 30 genes that highly impact the ... women. Available today, the Color Test analyzes hereditary ... prostate, stomach, and uterine cancers. The Color Test ...
(Date:4/28/2016)... April 28, 2016  The blood testing market in ... according to Kalorama Information and The Freedonia Group in ... nucleic acid testing.  The healthcare research firm said that ... developing blood collection stations and in improving testing at ... Information,s report, Blood Testing Market in China ...
(Date:4/28/2016)... , Net Sales of $1.90 billion represent an increase ... period, and an increase of 1.2% on an adjusted pro ... first quarter were $0.52 reported, a decrease of 47.5% from ... 29.9% over the prior year period , The Company ... Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) ...
Breaking Medicine Technology: