926844--5/29/2008--RENHUANG_PHARMACEUTICALS

related topics

{operation, international, foreign}

{product, candidate, development}

{product, liability, claim}

{acquisition, growth, future}

{product, market, service}

{stock, price, share}

{regulation, change, law}

{control, financial, internal}

{personnel, key, retain}

{property, intellectual, protect}

{competitive, industry, competition}

{cost, regulation, environmental}

{stock, price, operating}

We will need to raise additional capital to expand our business. We have a limited operating history as a publicly company, upon which to base an investment decision. We need to obtain and maintain the necessary Chinese or worldwide regulatory approvals to commercialize our products. Clinical trials are very expensive, time-consuming and difficult to design and implement The results of our clinical trials may not support our product candidate claims. Physicians, patients and other end consumer may abandon existing or choose not to accept and use our new drugs. Our drug-development program depends upon third-party research scientists who are out of our control. We need to increase our selling, marketing and distributing network. If we cannot compete successfully for market share against other similar product oriented companies, we may not achieve sufficient product revenues and our business will suffer. Developments by competitors may render our products or technologies obsolete or non-competitive. If we fail to adequately protect or enforce our intellectual property, the value of our intellectual property rights would diminish. We may not successfully manage our growth. We rely on key executive officers and scientific advisors, and their knowledge of our business and technical expertise would be difficult to replace. Our manufacturing plants are located in China and our pharmaceutical and medical products production, sale and distribution is subject to Chinese regulation. We depend upon governmental laws and regulations that may be changed in ways that hurt our business. The Chinese government exerts substantial influence over the manner in which we must conduct our business activities. Future inflation in China may inhibit our activity to conduct business in China. Restrictions on currency exchange may limit our ability to receive and use our revenues effectively. The value of our securities will be affected by the foreign exchange rate between U.S. dollars and Renminbi. We give no assurances that any plans for future expansion will be implemented. We have a limited operating history and limited historical financial information upon which you may evaluate our performance. We will face substantial competition, some of which may be better capitalized and more experienced than us Our business is largely subject to the uncertain legal environment in China and your legal protection could be limited Our common stock has been thinly traded and we cannot predict the extent to which a trading market will develop. Because we are subject to the penny stock rules, the level of trading activity in our stock may be reduced.

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926844--5/29/2008--RENHUANG_PHARMACEUTICALS_INC