Ex-10.1

                              SETTLEMENT AGREEMENT

This Settlement  Agreement (the "Agreement") is entered into as of July 31, 2007
(the "Effective  Date"),  by and among Synovics  Pharmaceuticals,  Inc. ("SPI"),
Synovics Laboratories, Inc. ("Synovics Labs" and together with SPI, "Synovics"),
Nostrum  Pharmaceuticals,  Inc.  ("Nostrum"),  and  Nirmal  Mulye,  Ph.D.  ("Dr.
Mulye").

In resolution of all actual and potential  disputes  between the parties to this
Agreement  through and including the Effective Date, and in consideration of the
representations  and mutual promises  hereinafter set forth, the following terms
are agreed as of the execution of this Agreement:

1.  The parties  shall  dismiss and  discontinue,  with  prejudice,  all pending
    actions and proceedings  between  Synovics and Nostrum,  including,  without
    limitation,  the federal  district  court  actions  pending in the  Southern
    District  of New York (06 Civ.  13286  (JSR);  07 Civ.  303  (JSR))  and the
    District of New Jersey  (07-1010  (FSH-PS)  and the  arbitration  before the
    American Arbitration  Association (AAA Case No.  13-133-Y-02706-06  02) (the
    "AAA Arbitration").  Upon execution of this Agreement,  Synovics shall enter
    into  a  separate  agreement  with  Anil  Anand  ("Anand")  providing  for a
    settlement  and release of all claims  between  them.  Synovics  and Nostrum
    shall each bear one-half of the  arbitrators'  fees and the other awarded or
    billed costs of pre-hearing conferences in the AAA Arbitration. Stipulations
    providing for such dismissals,  fully executed by counsel for the parties to
    such  actions  and  proceedings,  shall be  delivered  at the  Closing  (the
    "Closing")  which will take place at the offices of Carlton R.  Asher,  Jr.,
    Esq., New York,  New York on August 1, 2007,  commencing at 11:00 a.m. or at
    such other place and time as the parties may mutually determine.

2.  (a) All pre-settlement agreements between Synovics (or its subsidiaries) and
    Nostrum  (or Dr. Mulye)  shall  be terminated including, without limitation,
    the Technology License Agreement and any amendments thereto ("TLA") and  the
    ANDA Ownership Transfer and Product License Agreement relating to  Metformin
    (the "Metformin  Agreement"). To  the  extent  held  by  Synovics  or  their
    subsidiaries, the ownership and other rights with respect  to  all  products
    under the TLA and the Metformin Agreement (and all  formulations,  processes
    and other technology, approvals,  applications, and  records related to  the
    development and commercialization of the products) shall be, and are  hereby
    transferred, assigned and returned to Nostrum, free and clear of all  claims
    by Synovics or their subsidiaries and Nostrum shall have the right hereafter
    to develop, manufacture and otherwise commercialize the  products.  Synovics
    shall  be  free to explore and enter into any financial arrangements without
    regard  to  any  restrictions or  limitations  under  the TLA (including its
    amendments)  or  otherwise. Notwithstanding the provisions of this paragraph
    to   the   contrary,  the  indemnification  and  confidentiality  provisions
    contained in the TLA and the Metformin Agreement and the provisions  of  the
    Stock Purchase Agreements

<PAGE>

    between Synovics and Nostrum (the "Stock Purchase  Agreements") shall remain
    in full  force and effect in  accordance  with  their  terms and  conditions
    except  to the  extent  that  they  have  been  amended  or  limited  by the
    provisions of this Agreement.

    (b) Synovics  shall  promptly  return  to  Nostrum,  in  "as  is" condition,
    Nostrum's fluid air mill  and  all  tooling,  punches,  dies  and  API  that
    Synovics or its subsidiaries have in their  possession,  custody  or control
    which they originally received from Nostrum. Nostrum shall pay or  reimburse
    Synovics for their reasonable out of pocket expenses incurred  in  returning
    such equipment and other property to Nostrum.

    (c) In substantially the same words as  used  in  this  paragraph,  Synovics
    shall  deliver to Nostrum at  the  Closing  (i)  a  bill  of  sale  for  the
    Abbreviated  New Drug Application with respect to Metformin Extended Release
    500mg  tablets (the "Metformin Product") No. 076756 and all supplements  and
    amendments   thereto  as  of  the  date  of  Closing (the "ANDA"), any other
    regulatory  approvals issued to or for the benefit of Synovics by any  other
    regulatory   authority,  including licenses  and permits, if any, related to
    the Metformin  Product and Synovics' correspondence file with the  Food  and
    Drug  Administration ("FDA") relating to  the  ANDA,  executed  by  Synovics
    Labs;  (ii) an assignment agreement for the assignment of the right,  to the
    extent  held by Synovics, to make,  have made,  use, import, offer for sale,
    market  and sell the Metformin Product, executed by Synovics Labs; and (iii)
    a  letter  from  Synovics   Labs  addressed  to  FDA  informing FDA that the
    registration  for the Metformin Product has been transferred  from  Synovics
    to Nostrum.  After Closing, Synovics shall file the information required  of
    a former  owner of such registration, and Nostrum shall file the information
    required  of a new owner, each at Nostrum's  expense. Synovics  and  Nostrum
    further  agree to cooperate with  each other  in  order  to  effectuate  the
    foregoing transfer of such registration.

3.  Synovics shall not seek the return from Nostrum of any of the US$2.0 million
    or more paid under the TLA or the Metformin Agreement, and Nostrum shall not
    seek reimbursement from Synovics for  any invoices it  has  paid  under  any
    agreements with Synovics  (or  its subsidiaries). In addition, Nostrum shall
    be  responsible  for  any  outstanding  invoices  or claims  by Enem Nostrum
    Remedies Pvt.  Ltd.  ("Enem")  or  any  Nostrum  affiliate  excluding NexGen
    (although Synovics does not acknowledge any  responsibility  of  payment  to
    NexGen, and Nostrum disclaims affiliation with NexGen) as well  as any legal
    bills from  the Scully Scott law firm insofar as those bills  relate to work
    performed under the TLA, the Metformin Agreement or to any Nostrum products.

4.  The  parties  mutually release  and discharge any and all prior, existing or
    potential claims, contracts, judgments, rights, rights  of  action or causes
    of  action arising  from  or  relating  to  any transactions  or occurrences
    through  the  date  of  this  Agreement which Synovics and Nostrum and their
    respective officers, directors,

                                       2
<PAGE>

    employees,  agents, parents,  subsidiaries and affiliates (excluding NexGen;
    SEE  [paragraph] 3, SUPRA) may have against one another  provided,  however,
    that these provisions do not release, terminate or discharge: (a) any rights
    or obligations  arising under the provisions of this  Agreement,  the escrow
    agreement referred to below, the Stock Purchase Agreements as may be amended
    to the extent  necessary to accommodate the terms of said escrow  agreement,
    and any related agreements necessary to effectuate this settlement;  (b) any
    indemnity  obligations arising under contract, by law, statute or common law
    based on claims  asserted by third  parties  other than third  party  claims
    referenced in paragraph 3 and (c) the confidentiality  obligations set forth
    in the TLA and the Metformin  Agreement in  accordance  with their terms and
    conditions. In addition,  Nostrum and Mulye shall retain all of their rights
    of subrogation in respect of any undischarged  obligations  under their Bank
    of India  ("BOI")  guarantees.  At the Closing,  Synovics  shall  deliver to
    Nostrum releases from Synovics' Kirk and AndaPharm  subsidiaries,  Ronald H.
    Lane, Ph.D. and Steven Getraer in  substantially  the same form as Synovics'
    release contained in this paragraph 4, and Nostrum shall deliver to Synovics
    releases from Enem, Nostrum Laboratories Inc. and Anand in substantially the
    same form as Nostrum's release contained in this paragraph 4.

5.  (a) As part of the settlement provided for hereunder, Nostrum  shall deliver
    at the Closing its certificates for 10,771,000  shares  of  Synovics  common
    stock ("Common Stock") to Beigelman, Feldman &  Associates, P.C.  as  escrow
    agent  (the "Escrow Agent") pursuant to that certain Escrow Agreement  ("the
    Escrow Agreement") between  and  among  Escrow  Agent, Synovics  and Nostrum
    dated as of the Effective Date. Synovics shall promptly (i) reregister, upon
    the Escrow Agent's request, 10,000 of such shares into the name of  Margo R.
    Cohen ("Cohen Shares"), 100,000 of  such  shares into the name of  Ramesh S.
    Akella ("Akella Shares") and 10,661,000 of such  shares  into  the  name  of
    Nostrum (the "Nostrum Shares"), and (ii) deliver the  certificates  for  the
    Cohen and Akella Shares to  Carlton R.  Asher,  Jr.,  Esq.,  110  East  59th
    Street,  Suite  2900,  New  York,  New  York  10022, for transmittal to such
    registered owners, and the certificate  for the Nostrum Shares to the Escrow
    Agent, 100 Wall Street, 23rd Floor, New York, New York 10005.

    (b) The Nostrum Shares, together with all dividends, distributions, products
    and proceeds thereof (except dividends  and  distributions payable  in  cash
    which are to be paid to Nostrum), shall be held  in  escrow  by  the  Escrow
    Agent pursuant to the Escrow Agreement for a period (the "Escrow Period") of
    up to nine  (9)  months  from  the  Effective  Date,  to  be  determined  in
    accordance with the provisions of  this  paragraph  5(b)  and  paragraphs  6
    and 7. (To the extent that the Nostrum Shares are held in escrow pursuant to
    the  Escrow  Agreement,  such  shares,  and  all  dividends,  distributions,
    products and proceeds thereof (except dividends and distributions payable in
    cash), are hereinafter referred to as the  "Escrowed  Shares").  The  Escrow
    Period  shall end  earlier  than  nine (9) months from the Effective Date in
    the  event  that  the  guarantees  of  Dr.  Mulye  and  Nostrum to  BOI  are
    extinguished  through  refinancing  of  through any other arrangement during

                                       3
<PAGE>

    such period.  Upon  this  event,  all  Escrowed  Shares immediately shall be
    transferred by the Escrow Agent to Synovics free and clear of all claims  by
    Nostrum, or Dr. Mulye, or their affiliates.

6.  At all times from July 31, 2007 until the end of the Escrow Period, Synovics
    shall  be  free  to  obtain any financing,  including  but  not  limited  to
    refinancing  of  existing  debt,  without  any  restrictions, limitations or
    interference  from  Nostrum,  Dr.  Mulye or their agents. During  the Escrow
    Period, Synovics shall be obligated to  use  its reasonable best  efforts to
    obtain from BOI a full release and discharge of the unconditional guarantees
    that  Nostrum  and  Dr.  Mulye  delivered to BOI in connection with the Kirk
    financing  in  May 2006.  If  and  to   the   extent  that  BOI  permanently
    releases and discharges Nostrum and Dr. Mulye during the Escrow Period  from
    their  obligations to  pay  BOI  all or a specified amount of the underlying
    obligations under  the  BOI  credit  facility,  the  Escrow  Agent shall  be
    instructed by Synovics to deliver a  proportionate  amount  of the  Escrowed
    Shares to Synovics or its designee, free and clear of all claims by  Nostrum
    or Dr. Mulye  or  their affiliates. During  the Escrow Period, the  Escrowed
    Shares shall not be  voted,  exchanged or  sold by either party (and neither
    Nostrum nor Dr. Mulye shall call for a shareholder  meeting or seek to do so
    at any time after July 31, 2007 until the expiration of the Escrow  Period.)
    Notwithstanding  any provision of this paragraph or the Escrow  Agreement to
    the  contrary,  during the Escrow  Period,  Nostrum  may vote any  remaining
    Escrowed Shares regarding a proposed sale of substantially  all of Synovics'
    assets, or a proposed merger,  consolidation or other  significant  proposed
    corporate  reorganization  or capital  reclassification  in connection  with
    which  the  Nostrum  and  Mulye  guarantees  to BOI  are  not  released  and
    discharged,  but only to the  extent  that any of the  foregoing  events are
    presented  by the  Synovics  Board  of  Directors  to its  shareholders.  In
    addition,  notwithstanding  any  provision  of this  paragraph or the Escrow
    Agreement to the contrary,  during the Escrow Period, any remaining Escrowed
    Shares shall be  exchangeable  or  transferable in connection with corporate
    reorganizations and other transactions  effecting all of the stockholders in
    the same manner as any other shares of Synovics' Common Stock.

7.  Upon the expiration of nine (9) months from the Effective Date any remaining
    Escrowed Shares shall forthwith be  transferred  to Nostrum or its designee,
    free and clear of all claims by Synovics, BOI or the Escrow  Agent.  In  the
    event  that  a  default  with BOI is not  cured within sixty (60) days, upon
    instruction  by  Nostrum any  remaining  Escrowed  Shares shall forthwith be
    transferred to Nostrum or its designee,  free  and  clear  of  all claims by
    Synovics or the Escrow Agent; provided,  however,  that  during  the  Escrow
    Period Nostrum  and Dr. Mulye shall make their reasonable best efforts, upon
    written  request  of  Synovics  (and  at  Synovics' reasonable expense),  to
    cooperate with Synovics  (but without  incurring  any  financial,  legal  or
    credit  obligation  on  the  part  of Nostrum or Dr. Mulye) in extinguishing
    their unconditional guarantees to  BOI under the  Synovics' credit  facility
    with  BOI  and  in  curing any defaults under Synovics' credit facility with
    BOI. Except for Bank of India and any other institution with  which  Nostrum
    or

                                       4
<PAGE>

    Dr. Mulye maintains a bona fide credit or financial  relationship  (and only
    to the extent any such contact relates to such bona fide credit or financial
    relationship),  Nostrum  and Dr.  Mulye  (and  their  agents)  shall have no
    unauthorized  contact with any of Synovics' existing or potential lenders or
    financiers  (identified  to them in  writing by  Synovics  prior to any such
    contact)  for  any  purpose  relating  to  Synovics  or  its   subsidiaries.
    Furthermore,  the  parties  agree  that  either  party  may be  entitled  to
    immediate  injunctive  relief in the event that the other party breaches any
    of the provisions of this paragraph.

8.  In the event at any time during the Escrow Period Synovics issues additional
    shares of its  Common  Stock or  securities  convertible,  exchangeable,  or
    excercisable  into  shares of its  Common  Stock or other  rights to acquire
    shares  of its  Common  Stock  which  would  cause  the  Escrowed  Shares to
    represent less than 32% of the outstanding  shares of Synovics' Common Stock
    on a fully  diluted  basis,  then if the  Escrowed  Shares are  released  to
    Nostrum,  Synovics  will  issue  to  Nostrum  at the  time of  such  release
    additional  shares of its Common  Stock (the  "Additional  Shares")  without
    consideration  by Nostrum such that the Escrowed  shares  together  with the
    Additional  Shares  will  represent  on a  fully  diluted  basis  32% of the
    outstanding  shares of Synovics'  Common Stock;  provided,  however,  if the
    shares of Synovics'  Common Stock to be released to Nostrum upon  expiration
    of the Escrow  Period  represent  less than all of the  Escrowed  Shares the
    number of  Additional  Shares to be  issued to  Nostrum  shall be a pro rata
    portion of the  Additional  Shares equal to the total  number of  Additional
    Shares  multiplied  by a fraction,  the  numerator of which is the number of
    Escrowed  Shares  released  to Nostrum and the  denominator  of which is the
    total number of Escrowed  Shares.  The parties hereby  acknowledge and agree
    that Nostrum shall not by reason of its  acquisition  of  Additional  Shares
    hereunder  constitute  an  "Acquisition  Person"  within the meaning of that
    certain Rights Agreement  between Synovics and Continental  Stock Transfer &
    Trust Company dated as of September 8, 2006.

9.  This   Agreement  will  constitute   the  legal   binding  and   enforceable
    obligations  of   the   parties  hereto;   provided,  however,  the  parties
    acknowledge  and  agree  that  the   agreements  specified  herein  will  be
    incorporated  in  definitive documentation; provided, further, however, that
    this  Agreement  will  constitute   the   legally  binding  and  enforceable
    obligations of the parties hereto notwithstanding any failure of the parties
    hereto  to execute and deliver definitive  documentation.  The  parties  and
    their affiliates and agents agree to work to complete the transactions above
    in an expeditious manner.

10. This Agreement shall be governed by and construed and enforced in accordance
    with the law excluding the conflict of laws rules of the State of New York.

11. Any disputes between the parties arising out of this Agreement or the Escrow
    Agreement  shall  be  brought  in  any state or federal court located in New
    York, New York.

                                       5
<PAGE>

12. This Agreement may be executed in  any  number of counterparts and exchanged
    via facsimile.

    The parties have executed and delivered  this Agreement as of the date first
hereinabove written.

SYNOVICS PHARMACEUTICALS, INC.

By: /s/ Ronald Lane                   Date: July 31, 2007
   ----------------------------

Name: Ronald Howard Lane
   ----------------------------

Title: CEO
   ----------------------------

SYNOVICS LABORATORIES, INC.

By: /s/ Ronald Lane                   Date: July 31, 2007
   ----------------------------

Name: Ronald Howard Lane
   ----------------------------

Title: President
   ----------------------------

NOSTRUM PHARMACEUTICALS, INC.

By: /s/ Nirmal Mulye                  Date: July 31, 2007
   ----------------------------

Name: Nirmal Mulye
   ----------------------------

Title: President
   ----------------------------

      /s/ Nirmal Mulye
   ----------------------------
         NIRMAL MULYE, Ph.D.          Date: July 31, 2007

                                       6