Lotus Pharmaceuticals Receives SFDA Approval to Initiate Phase I Clinical Trials of Asthma Drug R-Bambuterol

Oct 27, 2010, 08:30 ET from Lotus Pharmaceuticals, Inc.

BEIJING, Oct. 27 /PRNewswire-Asia-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS) ("Lotus" or the "Company"), a fast-growing, profitable developer, manufacturer and seller of medicine and drugs in the People's Republic of China ("PRC"), announced today that it received approval from the State Food and Drug Administration ("SFDA") Ethics Committee to commence Phase I human clinical trials of R-Bambuterol Hydrochloride, the Company's proprietary drug candidate for the treatment of asthma. Lotus plans to initiate Phase I trials, including drug tolerance and pharmacokinetics studies, in the near term.

R-Bambuterol Hydrochloride is categorized as a Class I new drug. Lotus has patent protection for the drug until 2022. In preclinical studies, R-Bambuterol Hydrochloride demonstrated a promising efficacy and safety profile.

R-Bambuterol Hydrochloride entered the Phase I clinical stage in August 2010. Over the past two months, Lotus has completed the clinical trial design and finalized its preparations for the upcoming Phase I trials. Additionally, the Company began recruiting healthy volunteers for the clinical studies. Obtaining permission from the SFDA Ethics Committee is required for advancing the Phase I clinical program. Phase I trials will be conducted by Beijing Zenith International Medical Science and Technology Development Company Limited, a full-service clinical research organization, and will be carried out in the Third Hospital of Peking University, a top-ranked AAA hospital in China.

The Phase I studies will evaluate the drug's safety, tolerability, and pharmacokinetics. In the drug tolerance study, Lotus plans to test single-dose tolerance for 6 dosing levels, as well as multiple-dose tolerance for 2 dosing levels, in a total of 78 healthy volunteers. For the pharmacokinetics study, Lotus plans to evaluate the pharmacokinetics of the drug with food intake and 3 dosing levels in 34 volunteers. Lotus expects that the drug tolerance and pharmacokinetics studies will take 4 to 6 months to complete. The Phase I trials will enable Lotus to find the optimal dose(s) of R-Bambuterol Hydrochloride for late-stage clinical trials.

According to IMS Health, a pharmaceutical market research firm, the anti-asthma and chronic obstructive pulmonary disease market in China reached approximately $300 million in 2009. IMS Health estimates that 30 to 40 million people in China have asthma.

Chairman and Chief Executive Officer Mr. Zhongyi Liu stated, "The SFDA approval represents an important step forward in our clinical development program. R-Bambuterol has shown greater efficacy and fewer side effects compared to bambuterol in preclinical studies, and we believe that our product has the potential to effectively address China's large and growing asthma market. We look forward to initiating Phase I clinical trials and will share further developments with our investors as they occur."

About Lotus Pharmaceuticals, Inc.

Lotus Pharmaceuticals, Inc. is a fast-growing, profitable developer and producer of drugs and a licensed national seller of pharmaceutical items in the People's Republic of China (PRC). Lotus operates its business through its two controlled entities: Liang Fang Pharmaceutical, Ltd. and En Ze Jia Shi Pharmaceutical, Ltd. Lotus' current drug development is focused on the treatment of cerebro-cardiovascular diseases, asthma and diabetes. Liang Fang sells drugs directly and indirectly through its national sales channels to hospitals, clinics and drugs stores in 30 provinces of the PRC.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

Contacts:

At the Company:

Xing Shen, Ph.D.

VP of Corporate Development

Lotus Pharmaceuticals, Inc.

Tel: +1-415-690-7688

Email: shen@lotuspharma.com

Web: http://www.lotuspharma.com

Investor Relations:

Dave Gentry, U.S.

RedChip Companies, Inc.

Tel: +1-800-733-2447, Ext. 104

Email: info@redchip.com

Jing Zhang, China

RedChip Beijing Representative Office

Tel: +86 10-8591-0635

Web: http://www.RedChip.com

SOURCE Lotus Pharmaceuticals, Inc.



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