Lotus Pharmaceuticals Inc (LTUS)

[Headley Lamar]

Assuming that they complete their new production facility on time, which is slated for this summer, they should start to recognize significant revenue from their new direct sales channel. The direct sales are going to be a majority of their revenues going forward and everything hinges on the production facility completion for that to come to fruition. They are projecting 2011 full year revenues of 150 million and most of that will be from direct sales.

Something that was very telling to me in the 10-k was that they announced that they are scrapping their R&D. IMO they are changing their entire business to this new direct sales model, and likely because of heavy competition in pharmaceuticals development.