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The Company intends to market Laevo-Bambutero as a better alternative toBambutero for the treatment of asthma, since it is uses an integrated methodof composition and has fewer side effects. Lotus plans to launch the drug by2012, pending on the approval from SFDA. Approximately 300 million people inthe world suffer from asthma and that figure is expected to grow over thecoming years due to increasing air pollution and other environmental factors.Lotus estimates that 400 million people will have asthma by 2015.
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The Chinese government has granted a patent for Laevo-Bambutero. Lotusobtained the patent, along with exclusive production rights forLaevo-Bambutero in China, through the technology transfer agreement withDongguan Kaifa for a cash payment of RMB 48 million and a 3% royalty onproducts sales. The Company has already paid RMB 20 million to Dongguan Kaifa.
"Through the technology transfer agreement with Dongguan Kaifa we haveobtained exclusive production rights to a highly effective drug with a largeaddressable patient population," said Dr. Zhongyi Liu, Chairman, CEO andPresident of Lotus Pharmaceuticals, Inc. "We believe that thecommercialization of Laevo-Bambutero will help to further strengthen anddiversify our product portfolio and make a meaningful contribution to ourrevenue in the years ahead."
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. ("Lotus") controls and operates LiangfangPharmaceutical, Ltd. ("Liangfang") and Enze Jiashi Pharmaceutical, Ltd.("Enze"), two pharmaceutical companies located in Beijing, China. Together,Liangfang and Enze form the main enterprise (together, "Lotus East"), whichintegrates the production, trade, sales and marketing operations ofpharmaceutical products. Lotus East has some of the most advancedpharmaceutical-production equipments in China. The combined company hasmanufacturing facilities certified by the National GMP, a portfolio ofmedicines produced by Liangfang and/or Enze and a number of highly skilledscientists on staff. Lotus East has office facilities of 2,000 square meters,warehouse of 1,000 square meters and operates ten retail pharmacies in theBeijing area. Lotus East engages in the business of new drug discovery, drugmanufacturing, wholesale and retail sale of medicines. For more information,visit http://www.LotusEast.com .
Safe Harbor Statement
This press release contains "forward-looking statements" within themeaning of the "safe-harbor" provisions of the Private Securities LitigationReform Act of 1995. Such statements involve known and unknown risks,uncertainties and other factors that could cause the actual results of theCompany to differ materially from the results expressed or implied by suchstatements, including changes from anticipated levels of sales, futurenational or regional economic and competitive and regulatory conditions,changes in relationships with customers, access to capital, difficulties indeveloping and marketing new products, marketing existing products, customeracceptance of existing and new products, and other factors. Additionalinformation regarding risks can be found in the Company's Annual Report onForm 10K filed with the SEC. Accordingly, although the Company believes thatthe expectations reflected in such forward-looking statements are reasonable,there can be no assurance that such expectations will prove to be correct. TheCompany has no obligation to update the forward-
