904146--7/16/2008--Gamma_Pharmaceuticals

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{stock, price, share}

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{product, market, service}

{stock, price, operating}

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RISKS RELATING TO OUR COMPANY. Our limited operating history makes it difficult to evaluate our future prospects and results of operations. We will need additional capital to fund our operations, and we may not be able to obtain sufficient capital and may be forced to limit the scope of our operations. We need to manage growth in operations to maximize our potential growth and achieve our expected revenues. If we are not able to implement our strategies in achieving our business objectives, our business operations and financial performance may be adversely affected. We may have difficulty defending our intellectual property rights from infringement. Intense competition from existing and new entities may adversely affect our revenues and profitability. The products and the processes we use could expose us to substantial liability. Our failure to comply with current or future governmental regulations could adversely affect our business. We depend on our key management personnel and the loss of their services could adversely affect our business. We may never pay any dividends to our stockholders. Our future success will depend on our ability to anticipate and respond in a timely manner to changing consumer demands. If our products fail to perform properly, our business could suffer with increased costs and reduced income. RISKS RELATING TO THE PEOPLE'S REPUBLIC OF CHINA There could be changes in government regulations towards the pharmaceutical, health supplement and food industries that may adversely affect our business. There are risks associated with the Chinese economy that is in transition from a command economy to a market economy. Economic, political and social conditions and government policies in China could have a material adverse effect on our business, financial condition and results of operations. Governmental control of currency conversion may affect the value of your investment. We will be subject to restrictions on making payments from China. Uncertainties with respect to the PRC legal system could adversely affect us. It may be difficult to effect service of process upon us or our directors or senior management who live in the PRC or to enforce any judgments obtained from non-PRC courts. RISKS RELATING TO OUR STOCK Our Certificate of incorporation authorizes the issuance of shares of preferred stock, the rights, preferences, designations and limitations of which may be set by the board of directors. Because our common stock is deemed a low-priced Penny stock, an investment in our common stock should be considered high risk and subject to marketability restrictions. FINRA sales practice requirements may also limit a stockholder's ability to buy and sell our stock. If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board, which would limit the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market. Our principal stockholders, current executive officers and directors own a significant percentage of our company and will be able to exercise significant influence over our company. Our internal controls may be inadequate, which could cause our financial reporting to be unreliable and lead to misinformation being disseminated to the public.

Full 10-K form ▸

904146--7/16/2008--Gamma_Pharmaceuticals_Inc