Lotus Pharmaceuticals Inc (LTUS)

[BiotechValues]

NEWS: Lotus Pharmaceuticals, Inc. Strengthens Beijing Presence with Direct Sales to Drug Stores

BEIJING, Nov. 30 /PRNewswire-Asia-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC:LTUS) (BULLETIN BOARD: LTUS) ("Lotus" or the "Company") a growing developer and producer of prescription drugs and licensed national seller of pharmaceutical products in the People's Republic of China ("PRC"), today reported that its Over-the-Counter Drug division ("OTC Division") successfully entered into supply contracts with more than five hundred drug stores in Beijing as of today. The Company already has direct purchase contracts in place with around 300 manufacturers nationwide to distribute more than 800 types of medicines. All contracts have a term from one to two years and are renewable upon mutual agreement.

"I'm pleased with the experienced sales force of our OTC Division," said Dr. Zhong Yi Liu, Chairman and Chief Executive Officer of the Company. "Since the establishment of the OTC Division at the end of the last year, we have demonstrated substantial success in entering this new market segment in Beijing. Our market research shows that the current sales revenue for 4,500 drug stores in Beijing is estimated to be in the aggregate RMB 5 billion per year. Looking forward, we believe that our revenues generated from direct sales to drug stores could contribute around RMB 60 million to net revenues by the end of 2010 with an estimated 25% in net margin."

The Company believes it will be able to enter into purchase agreements with a total of approximately 900 manufacturers throughout the PRC by the end of 2012. The Company also believes it will be able to enter into supply contracts with approximately 2,000 drug stores by 2012 and gradually become their main supplier of majority drugs. Since the Company is currently planning to build a 10,000 square meter modern storage in the new general office building in Chaoyang District of Beijing, and to put it into use by the third quarter of 2010, the Company believes it could realize annual sales of around RMB 200 million by 2012.

About Lotus Pharmaceuticals, Inc. (http://www.lotuspharma.com/ )

Lotus Pharmaceuticals, Inc. is a growing developer and producer of prescription drugs and a licensed national seller of pharmaceutical items in the People's Republic of China. Lotus operates Liang Fang Pharmaceutical, Ltd. and En Ze Jia Shi Pharmaceutical, Ltd. Lotus' current drug development pipeline is focused on the treatment of cerebro-cardiovascular disease, asthma, and diabetes. More than 8,000 products are sold by Liang Fang directly and indirectly through its national sales channels to hospitals, clinics and drugs stores in 30 provinces