BOCA RATON, Fla., March 22, 2007 (PRIME NEWSWIRE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) announced that Lotus Pharmaceuticals, Inc. (OTCBB:LTUS) unveiled its plan to rank among China's top pharmaceutical companies, by reaching annual revenues exceeding $100 million.
Lotus Pharmaceuticals is a 2006 graduate of Genesis Equity Partners' capital and growth program. This customized private-to-public initiative presently has three additional Chinese contract partners at various stages of the program. Genesis estimates that each graduate could produce a minimum of $2 million in net income. The Company presently owns 6,736,896 shares of LTUS common stock.
Lotus CEO Liu Zhongyi described how the Beijing-based company intends to start a major expansion program through acquisition and its well-performing R&D program. His comments followed Lotus' obtaining initial financing of $3 million in February:
"We have targeted the acquisition of a Beijing company that is a major drug supplier to 99% of the 'Triple A' hospitals in Beijing (the highest grade hospitals in China), and to 90% of the 'Double A' hospitals in Beijing. These dominant market positions are valuable to Lotus to market its current drug products as well as reselling new drugs from overseas pharmaceutical companies. If completed, this acquisition could add about $100 million to Lotus's annual revenues.
"We have also targeted a pharmaceutical manufacturing and marketing company in South China. The value of this company is its strong R&D capability. This company had revenues of about $9 million last year, with a 20% profit margin. It has developed and owns 30 new drugs approved by SFDA, with very strong market prospects. One of the new drugs, already in the clinical trial stage, is classified as a 'National Class One New Drug' for cardiac vascular diseases. This drug is expected to deliver an effective and cheap alternative to the current costly drugs of the same category.
"With appropriate financing, our strategy is that, by acquiring these two companies, Lotus will establish itself as one of the major pharmaceutical companies with much expanded marketing channels and a good range of products, plus a superb R&D capability. The revenue expansion comes from selling a range of both high turn-around products and new and effective drugs through the much-expanded marketing channels. The profit margin improvement comes from selling more self-manufactured drugs. These are the key strategies for a pharmaceutical company to win in China under the current market conditions.
"To summarize our post-acquisition profile, Lotus could have near-term revenues of about $142 Million, with a 10% profit margin. More importantly, it would put Lotus on the fast track to leverage on the synergy of the companies. And we conservatively forecast 20% growth in revenue for the coming years, with an average margin of about 12-15% after acquisitions. This would place Lotus amongst the top 100 pharmaceutical companies in China," Dr. Liu concluded.
About Genesis Technology Group, Inc.
Genesis Technology Group, Inc. (d/b/a Genesis China and GTEC) is a U.S. public company that earns, enhances and markets equity positions in small to mid-sized Chinese enterprises. Commitment, dedication, and expertise are the key components to the Genesis "Mission Statement." It has created a successful profit center by incubating Chinese companies in a wide range of sectors, creating so-coined "partner companies." Genesis makes a long-term commitment with management consultation, board of directors composition, creation and implementation of successful business models, which include expansion of markets in China and abroad. To help drive the success and profitability of these operations, Genesis provides resources and proficiency to maximize partners' leadership potential in China and attempts to increase high-margin, predictable earnings. For more information, visit http://www.Genesis-China.net.
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