BEIJING, Feb. 4, 2011 /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"), today announced that it will add two additional stories to its new headquarters building in Chaoyang District, Beijing, which is currently under construction and is scheduled to be completed in the second quarter of 2011.
The facility was originally designed to have nine floors with a gross area of approximately 25,000 sq. meters (269,000 sq. feet) and house the Company's GMP-certified manufacturing facility, 10,000 sq. meters (108,000 sq. feet) of storage space, a research and development center, and Lotus' main administrative offices. The two new floors will contain between 90 and 120 apartments for employees and will add approximately 9,000 sq. meters (97,000 sq. feet) of space to the building, bringing the total gross area to 34,000 sq. meters (366,000 sq. feet).
The incremental cost for the new construction will be approximately $9 million, which includes design, materials, and labor costs, as well as expenses for approval and public relations. The Company expects the facility to be completed by the end of June 2011, in line with management's previous estimates.
Lotus expects its total investment in the construction of the Beijing facility to be no more than $48 million, of which $36 million had already been paid by the Company by the end of 2010. At the current market price of $3,000-$3,700 per sq. meter (approximately $279-$344 per sq. foot) in Beijing, the total market value of the building is estimated to be $102-$126 million.
Dr. Zhongyi Liu, Lotus' Chairman and CEO, stated, "In order to better motivate our staff, the Company decided to add two new stories onto current construction for apartments. These will be given to managers at all levels of the Company to ensure a stable and loyal team, which we expect to benefit the Company financially in the long run. We currently have not taken out any loans for the building, and we expect to finance all of the costs associated with the facility through our internal operations."
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.
SOURCE Lotus Pharmaceuticals, Inc.