U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    Form 10-Q

[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

     For the quarterly period ended March 31, 2003

                                       OR

[ ]  TRANSITION  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF
     1934

     For the transition period from _____ to _____

                         Commission file number 0-27937

                           DRAGON PHARMACEUTICAL INC.
        (Exact name of small business issuer as specified in its charter)


             Florida                                        65-0142474
  (State or other jurisdiction                            (IRS Employer
        of incorporation                                Identification No.)
        or organization)


                      1055 West Hastings Street, Suite 1900
                           Vancouver, British Columbia
                                 Canada V6E 2E9
                    (Address of principal executive offices)

                                 (604) 669-8817
                           (Issuer's telephone number)

                  (Former address if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be  filed by  Section  13 or 15(d) of the  Exchange  Act of 1934  during  the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days. Yes [ X ] No [ ]

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12 b-2 of the Exchange act). Yes [ ] No [ X ]

Number of shares of common stock outstanding as of March 31, 2003: 20,334,000


<PAGE>

PART 1.  FINANCIAL INFORMATION

Item 1. Financial Statements

DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
<S>                                                                                             <C>                      <C>

----------------------------------------------------------------------------------------------------------------------------------
                                                                                          March 31, 2003        December 31, 2002
----------------------------------------------------------------------------------------------------------------------------------
ASSETS

Current
  Cash and short term securities                                                    $          4,112,753      $         4,935,766
  Accounts receivable                                                                            757,025                  949,045
  Inventories                                                                                  1,240,163                1,208,277
  Prepaid and deposits                                                                           155,627                  154,551
----------------------------------------------------------------------------------------------------------------------------------
Total current assets                                                                           6,265,568                7,247,639

Fixed assets                                                                                   2,336,538                2,420,613

Due from related party - Hepatitis B vaccine project                                                 100                      100

Patent rights - related party                                                                    500,000                  500,000

Licence and permit                                                                             3,337,974                3,475,740
----------------------------------------------------------------------------------------------------------------------------------

Total assets                                                                        $         12,440,180      $        13,644,092
==================================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current
  Bank loans                                                                        $                  -      $           483,162
  Accounts payable and accrued liabilities                                                     1,537,696                1,525,404
----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities                                                                      1,537,696                2,008,566
----------------------------------------------------------------------------------------------------------------------------------
Commitments (Note 13)

Stockholders' Equity

Share capital
  Authorized:  50,000,000 common shares at
    par value of $0.001 each
  Issued and outstanding:  20,334,000 common shares                                               20,334                   20,334

Additional paid in capital                                                                    26,644,998               26,644,998

Accumulated other comprehensive (loss)                                                          (34,026)                 (35,011)

Accumulated deficit                                                                         (15,728,822)             (14,994,795)
----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity                                                                    10,902,484               11,635,526
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity                                          $         12,440,180      $        13,644,092
==================================================================================================================================

The accompanying notes are an integral part of these financial statements.

</TABLE>

                                       2
<PAGE>


DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES

Consolidated Statements of Stockholders' Equity
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
<S>                                             <C>         <C>              <C>            <C>           <C>              <C>

------------------------------------------------------------------------------------------------------------------------------------

                                                                                                        Accumulated
                                                                                  Compre-                     other           Total
                                                Common stock      Additional      hensive                   compre-          Stock-
                                            ------------------      paid-in        income       Deficit     hensive        holders'
                                             Shares    Amount       capital        (loss)   accumulated      income          equity
------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2001               20,331,000  $ 20,331  $ 26,624,741            -   $ (9,743,849)  $ (25,008)   $ 16,876,215

Exercise of stock options for cash            3,000         3         1,497            -              -           -           1,500

Stock based compensation                          -         -        18,760            -              -           -          18,760

Components of comprehensive income (loss)
 - foreign currency translation                   -         -             -      (10,003)             -     (10,003)        (10,003)

- net (loss) for the year                         -         -             -   (5,250,946)    (5,250,946)          -      (5,250,946)
------------------------------------------------------------------------------------------------------------------------------------

Comprehensive (loss)                                                         $(5,260,949)
                                                                             ============

Balance, December 31, 2002               20,334,000  $ 20,334  $ 26,644,998                $(14,994,795)  $ (35,011)   $ 11,635,526
============================================================================               ========================================

The accompanying notes are an integral part of these financial statements.

</TABLE>

                                       3
<PAGE>


DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES

Consolidated Statements of Stockholders' Equity
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
<S>                                             <C>         <C>          <C>          <C>           <C>           <C>           <C>

------------------------------------------------------------------------------------------------------------------------------------

                                                                                                           Accumulated
                                                                                    Compre-                      other        Total
                                                Common stock       Additional       hensive                    compre-        Stock-
                                          ----------------------      paid-in        income        Deficit     hensive      holders'
                                              Shares     Amount       capital        (loss)    accumulated      income       equity
------------------------------------------------------------------------------------------------------------------------------------

Balance, December 31, 2002                20,334,000  $  20,334  $ 26,644,998            -   $(14,994,795)  $ (35,011) $ 11,635,526

Components of comprehensive income (loss)
 - foreign currency translation                    -          -             -          985              -         985           985

- net (loss) for the year                          -          -             -     (734,027)      (734,027)          -      (734,027)
------------------------------------------------------------------------------------------------------------------------------------

Comprehensive (loss)                                                            $ (733,042)
                                                                                ===========

Balance, March 31, 2003                   20,334,000  $  20,334  $ 26,644,998               $ (15,728,822)  $ (34,026) $ 10,902,484
================================================================================           =========================================

The accompanying notes are an integral part of these financial statements.


</TABLE>
                                       4
<PAGE>


DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Consolidated Statements of Operations
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
<S>                                                                                             <C>                  <C>

------------------------------------------------------------------------------------------------------------------------------
                                                                                        Three Months             Three Months
                                                                                         Ended March              Ended March
                                                                                            31, 2003                 31, 2002
------------------------------------------------------------------------------------------------------------------------------

Sales                                                                           $            664,322     $          1,372,808


Cost of sales                                                                                201,282                  190,524
------------------------------------------------------------------------------------------------------------------------------

Gross profit                                                                                 463,040                1,182,284

Selling, general and
  administrative expenses                                                                   (968,559)              (1,096,460)

Depreciation of fixed assets and
  amortization of licence and permit                                                        (185,299)                (181,658)

Net write off of land-use right and fixed assets                                                   -                   (1,225)

Research and development expenses                                                                  -                 (755,572)

New market development                                                                       (15,479)                 (52,588)

Provision for doubtful debts                                                                 (30,710)                 (25,856)

Loan interest expense                                                                         (3,460)                 (40,410)

Stock-based compensation                                                                           -                        -
-------------------------------------------------------------------------------------------------------------------------------

Operating loss                                                                              (740,467)                (971,485)

Interest income                                                                                6,440                   33,607
--------------------------------------------------------------------------------------------------------------------------------

Net (loss) for the period                                                       $           (734,027)     $          (937,878)
================================================================================================================================

(Loss) per share
      Basic and diluted                                                         $              (0.04)     $             (0.05)
================================================================================================================================

Weighted average number of
  common shares outstanding
      Basic and diluted                                                                   20,334,000               20,331,000
================================================================================================================================


The accompanying notes are an integral part of these financial statements.

</TABLE>

                                       5

<PAGE>


DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
<S>                                                                                          <C>                    <C>

-----------------------------------------------------------------------------------------------------------------------------
                                                                                         Three Months           Three Months
                                                                                      Ended March 31,        Ended March 31,
                                                                                                 2003                   2002
-----------------------------------------------------------------------------------------------------------------------------

Cash flows from (used in) operating activities
   Net (loss) for the year                                                         $         (734,027)     $        (937,878)
   Adjustments to reconcile net loss to
     net cash used in operating activities:
     - depreciation of fixed assets and amortization of
          licence and permit                                                                  239,008                181,658
     - net write off of land-use right and fixed assets                                             -                  1,225
     - provision for doubtful debts                                                            30,710                 25,856
  Changes in non-cash working capital items:
     - accounts receivable                                                                    161,310               (557,582)
     - inventories                                                                            (31,886)               (15,076)
     - prepaid expenses and deposits                                                           (1,076)              (130,091)
     - accounts payable and accrued liabilities                                                12,292               (188,416)
     - management fees payable - related parties                                                    -               (208,167)
-----------------------------------------------------------------------------------------------------------------------------

                                                                                             (323,669)            (1,828,471)
-----------------------------------------------------------------------------------------------------------------------------

Cash flows used in investing activities
  Purchase of fixed assets                                                                    (16,912)               (44,392)
  (Increase) decrease in restricted funds                                                     510,000                299,985
  Acquisition of Patent rights                                                                      -               (500,000)
  Acquisition of balance of Huaxin                                                                  -             (1,400,000)
  Refundable investment deposits                                                                    -                400,000
-----------------------------------------------------------------------------------------------------------------------------

                                                                                              493,088             (1,244,407)
-----------------------------------------------------------------------------------------------------------------------------


Cash flows from financing activities
Loan proceeds                                                                                (483,162)              (278,177)
-----------------------------------------------------------------------------------------------------------------------------

Foreign exchange (gain) loss on cash
  held in foreign currency                                                                        730                 (3,884)
-----------------------------------------------------------------------------------------------------------------------------

 Decrease in cash and cash equivalents                                                       (313,013)            (3,354,939)

Cash and cash equivalents, beginning of period                                              4,425,766              6,306,129
-----------------------------------------------------------------------------------------------------------------------------

Cash and cash equivalents, end of period                                           $        4,112,753     $        2,951,190
=============================================================================================================================

The accompanying notes are an integral part of these financial statements.

</TABLE>
                                       6
<PAGE>


DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

1.   Basis of Presentation

     The accompanying unaudited interim consolidated balance sheets,  statements
     of  operations  and cash flows  reflected  all  adjustments,  consisting of
     normal  recurring  adjustments  and other  adjustments,  that  are,  in the
     opinion of management,  necessary for a fair  presentation of the financial
     position of the Company,  at March 31, 2003,  and the results of operations
     and cash flows for the interim periods ended March 31, 2003 and 2002.

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared in accordance  with the  instruction for Form 10-Q pursuant to the
     rules and regulations of Securities and Exchange Commission and, therefore,
     do not  include  all  information  and notes  normally  provided in audited
     financial  statements and should be read in conjunction  with the Company's
     consolidated  financial  statements  for the year ended  December  31, 2002
     included in the annual report previously filed on Form 10-K.

     The  results  of  operations  for the  interim  periods  presented  are not
     necessarily indicative of the results to be expected for the full year.

<TABLE>
<CAPTION>
<S>     <C>                                                                         <C>                 <C>


2.       Restricted Funds

         ----------------------------------------------------------------- -------------------- --------------------
                                                                                March 31, 2003    December 31, 2002
         ----------------------------------------------------------------- -------------------- --------------------

         Term deposits held as collateral against bank loans                               $ -             $510,000
         Cash and cash equivalents                                                   4,112,753            4,425,766
         ----------------------------------------------------------------- -------------------- --------------------

         Cash and short term securities                                            $ 4,112,753          $ 4,935,766
         ================================================================= ==================== ====================

3.       Accounts Receivable

         ----------------------------------------------------------------- -------------------- --------------------
                                                                                March 31, 2003    December 31, 2002
         ----------------------------------------------------------------- -------------------- --------------------

         Trade receivables                                                           $ 968,243          $ 1,141,896
                                                                                      (309,745)            (279,018)
         Allowance for doubtful accounts
         ----------------------------------------------------------------- -------------------- --------------------
                                                                                       658,498              862,878
                                                                                        98,527               86,167
         Other receivables
         ----------------------------------------------------------------- -------------------- --------------------
                                                                                     $ 757,025            $ 949,045
         ================================================================= ==================== ====================

                                       7

<PAGE>

DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

4.       Inventories

         ------------------------------------------------------------------ -------------------- -------------------
                                                                                 March 31, 2003   December 31, 2002
         ------------------------------------------------------------------ -------------------- -------------------

         Raw materials                                                                $ 130,041           $ 135,710
                                                                                        118,575              88,857
         Finished goods
                                                                                        991,547             983,710
         Work in progress
         ------------------------------------------------------------------ -------------------- -------------------
                                                                                    $ 1,240,163         $ 1,208,277
         ================================================================== ==================== ===================


</TABLE>

<TABLE>
<CAPTION>
<S>     <C>                                                     <C>                     <C>                 <C>

5.       Fixed Assets

         -------------------------------------------- --------------------------------------------------------------
                                                                             March 31, 2003
                                                      --------------------------------------------------------------
                                                                               Accumulated            Net book
                                                             Cost             depreciation             value
         -------------------------------------------- ------------------- ---------------------- -------------------

         Motor vehicles                                         $140,406               $ 57,031            $ 83,375
         Office equipment and furniture                          399,880                163,656             236,224
         Leasehold improvements                                1,066,208                366,168             700,040
         Production and lab equipment                          2,055,433                738,534           1,316,899
         -------------------------------------------- ------------------- ---------------------- -------------------

                                                             $ 3,661,927            $ 1,352,389         $ 2,336,538
         ============================================ =================== ====================== ===================


         -------------------------------------------- --------------------------------------------------------------
                                                                            December 31, 2002
                                                      --------------------------------------------------------------
                                                                               Accumulated            Net book
                                                             Cost             depreciation             value
         -------------------------------------------- ------------------- ---------------------- -------------------

         Motor vehicles                                        $ 140,388               $ 50,103            $ 90,285
         Office equipment and furniture                          385,462                144,199             241,263
         Leasehold improvements                                1,065,313                336,503             728,810
         Production and lab equipment                          2,052,260                692,005           1,360,255
         -------------------------------------------- ------------------- ---------------------- -------------------

                                                             $ 3,643,423            $ 1,222,810          $2,420,613
         ============================================ =================== ====================== ===================

         For the three months ended March 31, 2003, depreciation expenses totalled $100,987 (2002 - $95,675).
         The majority of fixed assets are located in China.

</TABLE>
<TABLE>
<CAPTION>
<S>      <C>                                                                        <C>                 <C>

6.       Due from Related Party - Hepatitis B Vaccine Project

         ----------------------------------------------------------------- -------------------- --------------------
                                                                                March 31, 2003    December 31, 2002
         ----------------------------------------------------------------- -------------------- --------------------

         Hepatitis B Vaccine Project                                                $4,000,000           $4,000,000

         Less : Repayment                                                             (500,000)            (500,000)
                Valuation allowance                                                 (3,499,900)          (3,499,900)
         ----------------------------------------------------------------- -------------------- --------------------

                                                                                        $  100               $  100
         ================================================================= ==================== ====================

</TABLE>

                                       8
<PAGE>

DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

     (a)  Pursuant to an  agreement  dated  October 6, 2000,  the  Company  paid
          $4,000,000  for the  acquisition  of  certain  assets  and  technology
          relating to the  production of Hepatitis B vaccine.  The vendor of the
          transaction  was a company  named  Alphatech  Bioengineering  Limited,
          incorporated  in  Hong  Kong,  with  two  shareholders  who  are  both
          directors of the Company.

     (b)  Pursuant to an amended agreement dated June 5, 2001, in the event that
          the  Company  failed  to find a joint  venture  partner,  establish  a
          production  facility for the vaccine  project or sell the project to a
          third  party  within  nine  months  from  the  date  of  this  amended
          agreement,  Dr.  Longbin Liu, a director of the Company (and President
          and CEO of the Company at the time of the  transaction) and one of the
          shareholders of Alphatech, demanded to repurchase the project from the
          Company. The repurchase price of $4.0 million is payable as follows:

          (i)  $500,000 at the date of repurchase; and

          (ii) the balance to be paid within eighteen (18) months of the date of
               repurchase  with  interest at 6% per annum.  The interest will be
               accrued from six months after the date of repurchase.

     The Company  decided not to pursue the project and Dr. Liu has  repurchased
     the project on the agreed terms.

     The amount  owing by Dr. Liu to the Company is  unsecured.  The Company has
     chosen, given the significant amount involved and the lack of security,  to
     conservatively  value the amount  owing and has set up a provision  for the
     full amount, less a nominal amount of $100.

7.   Patent Rights - Related Party

     Pursuant to an agreement dated January 14, 2002, the Company entered into a
     Patent  Development  Agreement  with the Dr. Longbin Liu, a director of the
     Company  (and  President  and  CEO  of  the  Company  at  the  time  of the
     transaction) and a company  controlled by the Dr. Liu entitling the Company
     to acquire one patent filed in the United  States  related to the discovery
     of a new gene or protein. Consideration for the right to acquire the patent
     was payment of  US$500,000  (paid) and the  issuance of warrants to acquire
     1,000,000  common shares of the Company at a price of $2.50 per share for a
     period of five years.  The patent may be acquired prior to January 14, 2005
     at no additional  cost other than the  reasonable  legal costs of obtaining
     the patent.

     The issuance and exercise of the warrants to acquire 1,000,000 common stock
     of the Company is contingent  upon the success of the patent  applications.
     The  US$500,000  will be refunded to the Company if no patent  applications
     have been filed by January 14, 2005.

                                       9

<PAGE>
DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

8.  Licence and permit

<TABLE>
<CAPTION>
<S>                                                                                     <C>             <C>

         ------------------------------------------------------------------- -------------------- ------------------
                                                                                  March 31, 2003  December 31, 2002
         ------------------------------------------------------------------- -------------------- ------------------

         Original cost                                                                $5,012,582         $5,012,582
         Accumulated amortization                                                      1,674,608          1,536,842
         ------------------------------------------------------------------- -------------------- ------------------

                                                                                     $ 3,337,974        $ 3,475,740
         =================================================================== ==================== ==================
</TABLE>

     Amortization expenses for the licence and permit for the three months ended
     March 31, 2003 was $138,021 (2002 - $137,898).

     The estimated  amortization  expense for each of the five succeeding fiscal
     years is as follows:

         2003                       $414,000
         2004                       $552,000
         2005                       $552,000
         2006                       $552,000
         2007                       $552,000

     The above amortization  expense forecast is an estimate.  Actual amounts of
     amortization  expense may differ from  estimated  amounts due to additional
     intangible asset acquisitions,  changes in foreign currency exchange rates,
     impairment of intangible  assets,  accelerated  amortization of licence and
     permit, and other events.

9.      Bank Loans

<TABLE>
<S>     <C>                                                                             <C>                 <C>

         --------------------------------------------------------------------------- -------------- -----------------
                                                                                         March 31,      December 31,
                                                                                              2003              2002
         --------------------------------------------------------------------------- -------------- -----------------

         RMB 4,000,000, bearing interest at 3.394% per annum and due on February
         26, 2003. The loan was secured by the term deposit.                                 $   -         $ 483,162
         --------------------------------------------------------------------------- -------------- -----------------

         Total                                                                               $   -         $ 483,162
         =========================================================================== ============== =================
</TABLE>


          The weighted average interest rate was 3.394% and 5.265% for the three
          months ended March 31, 2003 and 2002.

                                       10
<PAGE>
DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

10.  Income Taxes

     (a)  Kailong and Huaxin are subject to income taxes in China on its taxable
          income  as  reported  in  its  statutory  accounts  at a tax  rate  in
          accordance with the relevant income tax laws.

          Allwin and Biotrade are not subject to income  taxes.  As at March 31,
          2003,   $3.5   million  of   unremitted   earnings   attributable   to
          international  companies were considered to be indefinitely  invested.
          No  provision  has been made for taxes  that might be payable if these
          earnings were remitted to the United States.  The company's  intention
          is  to  reinvest  these  earnings  permanently  or to  repatriate  the
          earnings when it is tax effective to do so. It is not  practicable  to
          determine the amount of incremental  taxes that might arise were these
          earnings to be remitted.

          As at March 31,  2003,  the  company  has  estimated  losses,  for tax
          purposes,  totalling  approximately  $7,875,000,  which may be applied
          against future taxable income. The potential tax benefits arising from
          these losses have not been recorded in the financial  statements.  The
          Company  evaluates its valuation  allowance  requirements on an annual
          basis based on projected future operations.  When circumstances change
          and  this  causes  a  change  in  management's   judgement  about  the
          realizability of deferred tax assets,  the impact of the change on the
          valuation allowance is generally reflected in current income.

     (b)  The  tax  effect  of  temporary  differences  that  give  rise  to the
          Company's deferred tax asset (liability) are as follows:

<TABLE>
<CAPTION>
<S>                     <C>                                                             <C>             <C>

                  ----------------------------------------------------------- ------------------- -------------------
                                                                                  March 31, 2003   December 31, 2002
                  ----------------------------------------------------------- ------------------- -------------------
                                                                                      $ 2,675,000         $ 2,560,000
                  Tax losses carried forward
                  Stock-based compensation                                                  6,400               6,400
                  Provision for amount owing from Hepatitis B Vaccine
                  Project                                                               1,118,000           1,118,000
                  Less: valuation allowance                                            (3,799,400)         (3,684,400)
                  ----------------------------------------------------------- ------------------- -------------------
                                                                               $                -  $                -
                  =========================================================== =================== ===================


                  A reconciliation of the federal statutory income tax to the Company's effective
                  income tax rate, for the three months ended March 31, 2003 and 2002 are as follows:


                  ----------------------------------------------------------- ------------------- -------------------
                                                                                            2003                2002
                  ----------------------------------------------------------- ------------------- -------------------
                  Federal statutory income tax rate                                           34%                34%
                  Benefit of loss carry forward                                              (34%)              (34%)
                  ----------------------------------------------------------- ------------------- -------------------
                  Effective income tax rate                                                     -                  -
                  =========================================================== =================== ===================
</TABLE>

                                       11

<PAGE>
DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

11.  Stock Options and Warrants

     (a)  Stock Options Plans

          There were no options  granted during the three months ended March 31,
          2003.  Subsequent to March 31, 2003,  the Company  granted  options to
          purchase  500,000  shares at a price of $0.68 per share at a time when
          the market price was $0.48 per share.

          The  following is a summary of the employee  stock option  information
          for the period ended March 31, 2003:

<TABLE>
<CAPTION>
<S>                <C>                                                              <C>                  <C>


                  ------------------------------------------------------ ------------------ ------------------------
                                                                                                   Weighted Average
                                                                                    Shares           Exercise Price
                  ------------------------------------------------------ ------------------ ------------------------
                  Options outstanding at December 31, 2000                       3,043,000            $   1.89
                  Granted                                                          195,000            $   1.79
                  Forfeited                                                       (137,500)           $   2.93
                  Exercised                                                       (131,000)           $   0.50
                  ------------------------------------------------------ ------------------ ------------------------
                  Options outstanding at December 31, 2001                       2,969,500            $   1.92
                  Granted                                                          920,000            $   1.70
                  Forfeited                                                       (598,500)           $   2.30
                  Exercised                                                         (3,000)           $   0.50
                  ------------------------------------------------------ ------------------ ------------------------
                  Options outstanding at December 31, 2002 and March
                  31, 2003
                                                                                 3,288,000             $ 1.82
                  ====================================================== ================== ========================
</TABLE>
<TABLE>
<CAPTION>
<S>                     <C>             <C>             <C>             <C>              <C>

                       Options Outstanding                                 Options Exercisable
------------------------------------------------------------------- ----------------------------------
                                     Weighted
                                      Average         Weighted                           Weighted
     Range of                        Remaining         Average                           Average
     Exercise         Number        Contractual       Exercise           Number          Exercise
      Prices       Outstanding         Life             Price          Exercisable        Price
------------------------------------------------------------------- ----------------------------------

     $0.01 - $1.00     1,226,500        1.03         $   0.50          1,226,500        $   0.50

     $1.01 - $2.00       726,500        4.05         $   1.70            726,500        $   1.70

     $2.01 - $3.00        60,000        1.61         $   2.50             60,000        $   2.50

     $3.01 - $4.00     1,275,000        2.62         $   3.13          1,275,000        $   3.13
                       -------------------------     ---------        ----------        --------

                       3,288,000        2.32         $   1.82          3,288,000        $   1.82
                       =========== =============     =========        ==========        ========


</TABLE>

                                       12

<PAGE>

DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

11.  Stock Options and Warrants (continued)

          The  Company  accounts  for  its  stock-based   compensation  plan  in
          accordance  with APB Opinion No. 25,  under which no  compensation  is
          recognized in connection with options  granted to employees  except if
          options  are  granted  with a strike  price  below  fair  value of the
          underlying stock. The Company adopted the disclosure requirements SFAS
          No. 123,  Accounting for Stock-Based  Compensation.  Accordingly,  the
          Company is required to  calculate  and present the pro forma effect of
          all awards granted.  For disclosure  purposes,  the fair value of each
          option  granted to an employee  has been  estimated  as of the date of
          grant using the Black-Scholes  option pricing model with the following
          assumptions:  risk-free  interest  rate of 5.5%,  dividend  yield  0%,
          volatility of 90%, and expected lives of  approximately  0 to 5 years.
          Based on the  computed  option  values and the  number of the  options
          issued, had the Company recognized compensation expense, the following
          would have been its effect on the Company's net loss:

<TABLE>
<CAPTION>
<S>                     <C>                                                             <C>             <C>


                  ------------------------------------------------------------ ------------------ ------------------
                                                                                  March 31, 2003     March 31, 2002
                  ------------------------------------------------------------ ------------------ ------------------
                  Net (loss) for the period:
                  - as reported                                                      $ (734,027)        $ (937,878)
                  - pro-forma                                                        $ (734,027)        $ (937,878)
                  ------------------------------------------------------------ ------------------ ------------------
                  Basic and diluted (loss) per share:
                  - as reported                                                         $ (0.04)           $ (0.05)
                  - pro-forma                                                           $ (0.04)            $(0.05)
                  ------------------------------------------------------------ ------------------ ------------------
</TABLE>


     (b)  Warrants

          Share purchase warrants outstanding as at March 31, 2003:
<TABLE>
<CAPTION>
<S>                       <C>                      <C>                    <C>                   <C>

                        Number                  Underlying            Exercise Price
                      of Warrants                 Shares                 Per Share          Expiry Date

                       3,500,000                  1,750,000                $2.00            September 13, 2003
                          50,000                     50,000                $1.70            November 15, 2004
                       1,000,000*                 1,000,000                $2.50            January 14, 2007


           * See Note 7

</TABLE>

                                       13

<PAGE>
DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

12.  Related Party Transactions

     (a)  The Company  incurred the following  expenses to a director (2002: two
          directors) of the Company:

<TABLE>
<CAPTION>
<S>               <C>                                                                   <C>               <C>

                  --------------------------------------------------------------- ----------------- ----------------
                                                                                    March 31, 2003   March 31, 2002
                  --------------------------------------------------------------- ----------------- ----------------

                  Management fees                                                         $ 20,000          $57,500
                  =============================================================== ================= ================
</TABLE>

     (b)  Pursuant to an agreement  dated January 14, 2002, the Company  entered
          into a Project Development Agreement with Dr. Longbin Liu ("Dr. Liu"),
          a director of the Company (and President and CEO of the Company at the
          time of the  transaction)  to continue the research and development of
          G-CSF and Insulin for the  Company.  The Company will make payment for
          the development of G-CSF as follows:

          (i)  US$500,000 to be provided at the  commencement of the research in
               the G-CSF Project (paid);

          (ii) US$500,000 to be provided when  cell-line and related  technology
               is established and animal experimentation  commences in the G-CSF
               Project; and

          (iii)US$300,000 to be provided  when a permit for clinical  trials for
               G-CSF has been issued by the State Drug  Administration  of China
               ("SDA"); and

          (iv) US$200,000  to be provided  when a new drug  license for G-CSF is
               issued to Dragon by the SDA.

          (v)  US$500,000  to be paid as a bonus if the SDA  issues the new drug
               license for G-CSF to Dragon before January 14, 2005.

          The  Company  will make  payment  for the  development  of  Insulin as
          follows:

          (i)  US$750,000 to be provided by at the  commencement of the research
               in the Insulin Project (paid);

          (ii) US$750,000 to be provided when  cell-line and related  technology
               is  established  and  animal  experimentation  commences  in  the
               Insulin Project (paid);

          (iii)US$300,000 to be provided  when a permit for clinical  trials for
               Insulin has been issued by the SDA; and

          (iv) US$200,000  to be provided when a new drug license for Insulin is
               issued to Dragon by the SDA.

                                       14

<PAGE>

DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------

12.  Related Party Transactions (continued)

          (v)  US$500,000  to be paid as a bonus if the SDA  issues the new drug
               license for Insulin to Dragon before January 14, 2005.

          For both the G-CSF and Insulin Projects:

          (i)  If the Company elects to cease development of the project it will
               forfeit any payments made and lose ownership of the Project,  but
               it will not be obligated to make any further  payments toward the
               Project;

          (ii) if an application for permit for clinical trials is not submitted
               within  three  years with  respect  to the G-CSF  Project or four
               years with  respect to the Insulin  Project or if the SDA rejects
               the  Projects  for   technical  or   scientific   reasons  or  If
               development of the Project is terminated by Dr. Liu, then Dr. Liu
               will refund to the Company all amounts paid,  without interest or
               deduction, with respect to the Project within six months.

          As at March 31, 2003,  the Company has paid a total of $1,500,000  and
          $500,000  towards the Insulin and G-CSF  Projects,  respectively.  The
          Company has paid an additional $100,000 to a company controlled by Dr.
          Liu to produce Insulin samples for drug registration purposes.

     (c)  see Notes 5 and 6 also.

13.  Commitments

     The Company has entered into  operating  lease  agreements  with respect to
     Huaxin's production plant in Nanjing,  China for an amount of RMB 2,700,000
     (US$326,200)   per  annum   until  June  11,   2009,   and  the   Company's
     administrative   offices  in  Vancouver  for  an  amount   escalating  from
     CDN$200,000 to CDN$230,000 (US$136,000 to US$157,000) per annum until March
     31, 2007. Minimum payments required under the agreements are as follows:

                2003                                       $ 347,289
                2004                                         479,011
                2005                                         480,184
                2006                                         483,700
                2007                                         365,851
                2008 - 2009                                  470,841
                -----------------------------------------------------

                Total                                    $ 2,626,876
                =====================================================


                                       15

<PAGE>

DRAGON PHARMACEUTICALS INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------------


14.  Segmented Information

     The Company  operates  exclusively  in the biotech  sector.  The  Company's
     assets and revenues are distributed as follows:
<TABLE>
<CAPTION>
<S>     <C>                                                                             <C>                    <C>


                                                                                   March 31, 2003        December 31,2002
         -----------------------------------------------------------------------------------------------------------------
         ASSETS
         North America                                                                 $3,804,593              $4,144,668
         China                                                                          8,161,267               9,020,882
         Others                                                                           474,320                 478,542
         -----------------------------------------------------------------------------------------------------------------
         Total                                                                        $12,440,180             $13,644,092
         =================================================================================================================


         ------------------------------------------------------------------------------------------------------------------
                                                                               Three months ended       Three months ended
                                                                                   March 31, 2003           March 31, 2002
         ------------------------------------------------------------------------------------------------------------------
         REVENUE
         North America                                                                    $     -                  $     -
         China                                                                            454,347                  525,308
         Others                                                                           209,975                  847,500
         ------------------------------------------------------------------------------------------------------------------
         Total                                                                          $ 664,322              $ 1,372,808
         ==================================================================================================================

</TABLE>

15.  Comparative Figures

     Certain 2002 comparative  figures have been  reclassified to conform to the
     financial statement presentation adopted for 2003.

                                       16

<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

The  following  discusses  the  Company's  financial  condition  and  results of
operations based upon the Company's consolidated financial statements which have
been prepared in accordance with generally accepted  accounting  principles.  It
should be read in conjunction  with the Company's  financial  statements and the
notes thereto and other  financial  information  included in the Company's  Form
10-K for the fiscal year ended December 31, 2002.

Overview

The Company (or  "Dragon")  was formed on August 22, 1989,  under the name First
Geneva Inc. First Geneva  Investment's  business was to evaluate  businesses for
possible  acquisition.  On July 28, 1998, First Geneva Investment entered into a
share exchange agreement with Allwin Newtech.  Allwin Newtech was formed in 1998
for the purpose of  developing  and marketing  pharmaceutical  drugs for sale in
China. Prior to the acquisition of Allwin Newtech,  First Geneva Investments had
no operations.  On September 21, 1998, First Geneva Investments changed its name
to Dragon Pharmaceutical Inc.

On  July  27,  1999,   Dragon   acquired  a  75%  interest  in  Nanjing   Huaxin
Bio-pharmaceutical  Co. Ltd.  ("Huaxin"),  which  manufactures EPO in China. The
Company  increased  the  efficiencies  in the  production  of EPO by improving a
proprietary  high-yield  mammalian cell line and  "vectoring  process" which has
been  developed  by  Dragon.  The  Company   successfully   achieved  commercial
production during the last quarter of calendar 1999. In January 2002 the Company
purchased the balance of Huaxin for $1,400,000.

On September 6, 2000,  Dragon  incorporated  Allwin Biotrade Inc.  ("Biotrade").
Biotrade  was  incorporated  for  the  purpose  of  marketing  and  distributing
biopharmaceutical   products  outside  China.  On  September  15,  2000,  Dragon
incorporated  Dragon  Pharmaceutical  (Canada) Inc.  ("Dragon  Canada").  Dragon
Canada was  incorporated  for the  purpose of  researching  and  developing  new
biopharmaceutical products.

Results of Operations

Revenues.  Revenue  is  generated  from the sale of EPO in China by  Huaxin  and
throughout the developing world by Biotrade.  Revenue for the three-month period
ending March 31, 2003 was $664,322  compared to $1,372,808  for the  three-month
period  ending March 31, 2002.  Sales in and outside of China were  $454,347 and
$209,975,  respectively  during the  three-month  period  ending March 31, 2003.
Sales during the three-month period ending March 31, 2002 were $525,308 in China
and $847,500 outside of China. The overseas sales during the three-month  period
ending March 31, 2002  included  delivery of a $700,000  order to be used by the
purchaser  for  new  drug  research  and  development.  Cost  of  sales  for the
three-months  ended March 31, 2003 of $201,282 is attributed  to the  production
costs of the  pharmaceutical  products.  The cost of sales for the  three-months
ended  March 31,  2002 was  $190,282.  The gross  profit  margin was 70% for the
three-month  period  ending  March 31, 2003 and 86% for the  three-month  period

                                       17

<PAGE>

ended March 31, 2002.  The profit  margin has decreased as the Company sold some
product with short term expiry dates at a reduced price.

Interest  income is related  primarily to interest  earned on cash received from
the private placement of common stock received during the third quarter of 2001.
Interest  income for the  three-months  period  ended  March 31, 2003 was $6,439
compared to $33,607 for the three-month period ended March 31, 2002.

Interest  income has  decreased as interest  rates have declined and as the cash
balance has decreased through the funding of operations.

Expenses.  Total operating  expenses for the  three-months  ended March 31, 2003
were  $1,203,507.  The major expenses  incurred in the first quarter of 2003 was
selling expenses of $505,672  representing 42% of total expenses.  The remaining
major expense items are represented by administrative expenses.

Significant  operating  expenses  for the  three-months  ended  March  31,  2003
included rent of $88,199,  salaries and benefits of $191,393,  $66,338 in travel
costs,  insurance of $30,166 and a bad debts  provision  of $30,710.  Management
fees of $20,000 were paid to a director for services during the first quarter of
2003.

Other  significant  expenses for the first quarter  include the  depreciation of
fixed assets and amortization of license and permit of $185,299.

Comparatively,  total operating  expenses for the  three-months  ended March 31,
2002 were $2,153,768.  The major expenses  incurred in the first quarter of 2002
were research and development  expenses of $755,572 and the selling  expenses of
$477,196 representing 35% and 22% of total expenses, respectively. The remaining
major expense items are represented by administrative expenses.

Significant  operating  expenses  for the  three-months  ended  March  31,  2002
included consulting fees of $148,737, loan interest of $40,410, rent of $61,546,
salaries and benefits of $141,686,  $78,390 in travel costs and management  fees
of $76,193.  Management  fees  include  $57,500  incurred to two  directors  for
services during the first quarter of 2002.

Other   significant   expenses  for  the  first  quarter  of  2002  include  the
depreciation of fixed assets and amortization of license and permit and land-use
rights of $181,658.

Overall, expenditures have decreased in 2003 from 2002 levels as the Company has
streamlined  operations, closed its Beijing and Hong Kong representative offices
and diligently pursued cutting costs in all areas, where practical.

Net and Comprehensive  Loss.  Dragon had a net loss and a comprehensive  loss of
$734,027 for the three-month period ending March 31, 2003.

                                       18

<PAGE>

The Company's net and comprehensive  loss for the three-month period ended March
31, 2002 was $937,878.

Basic and Diluted Net Loss Per Share

The Company's loss of $0.04 per share has been computed by dividing the loss for
the  period  by  the  weighted  average  number  of  shares  outstanding  during
three-month period ended March 31, 2003. Common stock issuable upon the exercise
of common stock  options and common stock  warrants  have been excluded from the
net loss per share calculations as their inclusion would be anti-dilutive.

Liquidity and Capital Resources

Dragon is a development stage pharmaceutical and  biotechnological  company that
has commenced the manufacture and marketing of pharmaceutical  products in China
through its 100%  equity  interest in Nanjing  Huaxin  Bio-pharmaceuticals  Ltd.
Previously,  the Company has raised funds through equity  financings to fund its
operations  and to provide  working  capital.  The Company  may  finance  future
operations through additional equity financings.

On October 14, 1999, the Company  entered into  securities  purchase  agreements
with two investors located in Hong Kong. Under the terms of this agreement,  the
investors purchased,  in the aggregate,  600,000 shares of common stock at $2.50
per share, with the Company raising in the aggregate $1.5 million.

On December 31, 1999, the Company closed a private placement raising $10,645,000
through the issue of  4,258,000  shares of common  stock at a price of $2.50 per
share.   $600,000  of  the  gross  proceeds  from  the  December  1999  offering
represented the conversion of the outstanding debt by the lenders into shares of
common stock of the Company at a price of $2.50 per share.

One million  common  shares were issued  through the  exercise of warrants  that
expired on  September  30,  2000.  These  warrants  were issued to  shareholders
through the  acquisition  of Allwin  Newtech on August 17, 1998.  Gross proceeds
from the exercise of the warrants were $1,000,000.

On September 14, 2001, the Company closed a private placement raising $7,000,000
through the issue of  3,500,000  shares of common  stock at a price of $2.00 per
share.

As of March 31, 2003, the Company had $4,112,753 in cash  available.  This cash,
the $757,025 in accounts  receivable and anticipated  sales will be used to fund
the  ongoing  operations  and  research  and  development.  Working  capital was
$4,727,872 at March 31, 2003.

Item 3. Quantitative and Qualitative Disclosures About Market Risks

The Company is exposed to market risk,  primarily  related to foreign  exchange.
The Company  maintains its  accounting  records in their  functional  currencies
(i.e., U.S.  dollars,  Renminbi Yuan, and Canadian dollars  respectively).  They
translate foreign currency  transactions  into their functional  currency in the
following manner.

                                       19

<PAGE>

At  the  transaction  date,  each  asset,  liability,  revenue  and  expense  is
translated  into the  functional  currency  by the use of the  exchange  rate in
effect at that date.  At the period end,  monetary  assets and  liabilities  are
translated into the functional  currency by using the exchange rate in effect at
that date.  The  resulting  foreign  exchange  gains and losses are  included in
operations.

The following  table sets forth the  percentage of the Company's  administrative
expense by  currency  for the years  ended  December  31,  2001 and 2002 and the
three-months ended March 31, 2003 and 2002.
<TABLE>
<CAPTION>
<S>                                                             <C>                  <C>

By Currency

                                                      December 31, 2001       December 31, 2002

U.S. Dollar                                           31%                     27%

Canadian Dollar                                       12%                     46%

Renminbi Yuan                                         57%                     27%

Total                                                 100%                    100%


                                                      March 31, 2002          March 31, 2003

U.S. Dollar                                           21%                     20%

Canadian Dollar                                       39%                     60%

Renminbi Yuan                                         40%                     20%

Total                                                 100%                    100%

</TABLE>

Such  administrative  expense by currency may change from time to time. Further,
the  Company  incurred  expenses  in  China of  $600,358  and  $757,520  for the
three-months ended March 31, 2003 and 2002, respectively, all of which were paid
in RMB.

The Company has not entered  into any  material  foreign  exchange  contracts to
minimize  or  mitigate  the  effects of  foreign  exchange  fluctuations  on the
Company's operations. The Company exchanges Canadian dollars to fund its Chinese
operations.  Based on prior  years,  the  Company  does not  believe  that it is
subject to material foreign exchange fluctuations.  However, no assurance can be
given that this will not occur in the future.

Item 4. Controls and Procedures

Within the 90 days prior to the date of this Form 10-Q, the Company  carried out
an evaluation, under the supervision and with the participation of the Company's
management, of the design and operation of the Company's disclosure and internal
controls  and  procedures  pursuant  to  Exchange  Act Rule  13a-14.  The review

                                       20

<PAGE>

identified a number of areas where there could be  improvements  to increase the
effectiveness  of  controls  and the  Company  is  currently  in the  process of
improving the controls and procedures in these areas. Notwithstanding the above,
the  Company's  President and Chief  Executive  Officer along with the Company's
Chief Financial  Officer have concluded that the Company's  disclosure  controls
and  procedures  are  sufficient  enough  to  ensure  adequate  and  appropriate
disclosure  of  material  information  relating to the  Company  (including  its
consolidated subsidiaries) required to be included in this Form 10-Q.

There have been no significant  changes in the Company's internal controls or in
other factors,  which could significantly affect internal controls subsequent to
the  date the  Company  carried  out its  evaluation,  other  than  those  being
undertaken to increase the effectiveness of controls as discussed above.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 2. Changes in Securities and Use of Proceeds.

None

Item 3. Defaults Upon Senior Securities.

None

Item 4. Submission of Matters to a Vote of Security Holders.

None

Item 5. Other Information.

None

Item 6. Exhibits and Reports on From 8-K.

     (a)  Exhibit   99.1   Certification   Pursuant   to  Section   906  of  the
          Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.

     (b)  Reports on 8-K

          None.

                                       21

<PAGE>

                                   Signatures

In accordance with the requirements of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                              DRAGON PHARMACEUTICAL INC.
                                              (registrant)

                                              /s/MATTHEW KAVANAGH
Dated:   May 12, 2003                         ----------------------------------
                                              Matthew Kavanagh
                                              Director of Finance and Corporate
                                              compliance and Corporate Secretary
                                              (duly authorized Officer and
                                              Principal Financial Officer)






                                       22

<PAGE>


                            Section 302 Certification

                 CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q

I, Alexander Wick, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Dragon Pharmaceutical
     Inc. ("Registrant");

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  Registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  Registrant's  other  certifying  officer  and  I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  Registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the Registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Registrant's  other certifying  officer and I have disclosed,  based on
     our most recent  evaluation,  to the  Registrant's  auditors  and the audit
     committee of  Registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  Registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  Registrant's  auditors any material  weaknesses in
          internal controls; and

                                       23

<PAGE>


     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  Registrant's  internal
          controls;  and

6.   The  Registrant's  other  certifying  officer and I have  indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 16,  2003
                                                /s/ ALEXANDER WICK
                                                --------------------------------
                                                Alexander  Wick, President and
                                                Chief Executive Officer




                                       24

<PAGE>


                            Section 302 Certification

                 CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q

I, Matthew Kavanagh, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Dragon Pharmaceutical
     Inc. ("Registrant");

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  Registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  Registrant's  other  certifying  officer  and  I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  Registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the Registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Registrant's  other certifying  officer and I have disclosed,  based on
     our most recent  evaluation,  to the  Registrant's  auditors  and the audit
     committee of  Registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  Registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  Registrant's  auditors any material  weaknesses in
          internal controls; and

                                       25

<PAGE>


     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  Registrant's  internal
          controls; and

6.   The  Registrant's  other  certifying  officer and I have  indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


Date:  May 12, 2003
                                                     /s/ MATTHEW KAVANAGH
                                                     ---------------------------
                                                     Matthew Kavanagh, Principal
                                                     Financial Officer


                                       26