----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-QSB**

|  | þ | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|--|--------|-----------------------------------------------------------------------------------------------------------------|
|   |   | For              the quarterly period ended  June 30,              2007 |
|--------|--------|-----------------------------------------------------------------------------------|

|  | o | RANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|--|---|-----------------------------------------------------------------------------------------------------------------|
|   |   | For              the transition period from ______________              to________________ |
|--------|--------|--------------------------------------------------------------------------------------------|

| **Integrated                Pharmaceuticals, Inc.**                                |
|------------------------------------------------------------------------------------|
| (Exact                name of small business issuer in its                charter) |

| **Idaho**                                                                       |   | **04-3413196**                                        |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) |   | (I.R.S.                  Employer Identification No.) |

|   | **310                    Authority Drive****Fitchburg,                    MA  01420** |  |
|--------|--------------------------------------------------------------------------------------------|--|
|        | (Address                    of principal executive offices) (Zip Code)                     |  |

|   | **(978)                      696-0020**                                     |  |
|--------|-----------------------------------------------------------------------------|--|
|        | (Issuer’s                      telephone number, including area code) |  |

| **Title                of class**                           | **Name                of Exchange on Which Registered** |
|-------------------------------------------------------------|---------------------------------------------------------|
|  Common                Stock, par value $.01 per share |  None                                              |

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING DURING THE PRECEDING FIVE      YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

** **

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**INTEGRATED        PHARMACEUTICALS, INC.**

**FORM      10-QSB**

**TABLE      OF CONTENTS**

**                                                                 **

| **PART                  I.     FINANCIAL INFORMATION**  | **PAGE**                                                                       |
|---------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                                  |                                                                           |   |
| ITEM                  1                                                               | Financial                  Statements                                          | 2 |
|                                                                                  |                                                                           |   |
| ITEM                  2                                                               | Plan                  of Operation; Management’s Discussion and Analysis | 11 |
|                                                                                  |                                                                           |   |
| ITEM                  3                                                               | Controls                  and Procedures                                       | 12 |
|                                                                                  |                                                                           |   |
|                                                                                  |                                                                           |   |
|                                                                                  |                                                                           |
|                                                                                  |                                                                           |
| **PART                  II. – OTHER INFORMATION**                          |                                                                           |
|                                                                                  |                                                                           |   |
| ITEM                  1                                                               | Legal                  Proceedings                                             | 13 |
|                                                                                  |                                                                           |   |
| ITEM                  2                                                               | Unregistered                  Sales of Equity Securities and Use of Proceeds   | 13 |
|                                                                                  |                                                                           |   |
| ITEM                  3                                                               | Default                  Upon Senior Securities                                | 13 |
|                                                                                  |                                                                           |   |
| ITEM                  4                                                               | Submission                  of Matters to a Vote of Security Holders           | 13 |
|                                                                                  |                                                                           |   |
| ITEM                  5                                                               | Other                  Information                                             | 13 |
|                                                                                  |                                                                           |   |
| ITEM                  6                                                               | Exhibits                  and Reports on Form 8-K                              | 14 |
|                                                                                  |                                                                           |   |
| SIGNATURES                                                                            |                                                                           | 15 |

**NOTE      REGARDING FORWARD-LOOKING STATEMENTS**

**Except        for statements of historical fact, certain information described in this        document contains “forward-looking statements” that involve substantial risks        and uncertainties. You can identify these statements by forward-looking words        such as “anticipate,”“believe,”        “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or        similar words. You should read the statements that contain these words carefully        because these statements discuss our future expectations, contain projections        of        our future results of operations or of our financial position or state other        “forward-looking” information. Integrated Pharmaceuticals, Inc. believes that it        is important to communicate our future expectations to our investors. However,        there may be events in the future that we are not able to accurately predict        or        control. The factors listed below in the section captioned “Risk Factors,”within the section “Description of Business” as well as any cautionary language        in this Form, provide examples of risks, uncertainties and events that may        cause        our actual results and achievements expressed or implied to differ materially        from the expectations we described in our forward-looking statements. Integrated        Pharmaceuticals, Inc. believes that before you invest in our common stock,        you        should be aware that the occurrence of the events described in these risk        factors and elsewhere in this Form could have a material adverse effect on        our        business, results of operations and financial        position.**

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**PART      I**

**ITEM      1.                      Financial      Statements**

|  | 3 | Balance                  Sheets As At June 30, 2007 And December 31,                  2006 |
|--|---|--------------------------------------------------------------------------------------------|

|  | 4 | Statements  Of  Operations  And  Income                  For The Three Months  Ended June 30, 2007 and June 30,                  2006 |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5 | Statements  Of                  Cash  Flows For The Three Months  Ended June 30, 2007                  and June 30, 2006 |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7-                31 |  Notes                To Financial Statements – June 30,                2007 |
|--|----------------------|-----------------------------------------------------------------------------------------|

----

**INTEGRATED      PHARMACEUTICALS, INC.**

**(A      Development Stage Company)**

**BALANCE        SHEETS**

|                                                            |   | June                30, |        |   | Audited                     |   |
|-----------------------------------------------------------------|--------|-------------------------|-------------|--------|-----------------------------|--------|
|                                                            |   | 2007                    |        |   | December                31, |   |
|                                                            |   | (unaudited)             |        |   | 2006                        |   |
|                                                            |   |                    |        |   |                        |   |
| **ASSETS**                                                      |   |                    |        |   |                        |   |
| CURRENT                ASSETS                                   |   |                    |        |   |                        |   |
| Cash                                                            |   | $                       | 267,674     |   |                        | $      | 872,182 |   |
| Accounts                receivable                              |   |                    | 686         |   |                        |   | 686 |   |
| Inventory                                                       |   |                    | 113,126     |   |                        |   | 118,068 |   |
| Prepaid                expenses                                 |   |                    | 27,779      |   |                        |   | 47,128 |   |
| Total                Current Assets                             |   |                    | 409,265     |   |                        |   | 1,038,064 |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| PROPERTY                AND EQUIPMENT, net                      |   |                    | 1,025,416   |   |                        |   | 1,279,401 |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| OTHER                ASSETS                                     |   |                    |        |   |                        |   |   |   |
| Investments                                                     |   |                    | 3,810       |   |                        |   | 3,590 |   |
| Deposits                                                        |   |                    | —     |   |                        |   | — |   |
| Patents,                net of amortization                     |   |                    | 106,683     |   |                        |   | 107,800 |   |
| Total                Other Assets                               |   |                    | 110,493     |   |                        |   | 111,390 |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| **TOTAL                ASSETS**                                 |   | $                       | 1,545,174   |   |                        | $      | 2,428,855 |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**   |   |                    |        |   |                        |   |   |   |
| CURRENT                LIABILITIES                              |   |                    |        |   |                        |   |   |   |
| Accounts                payable                                 |   | $                       | 194,217     |   |                        | $      | 218,754 |   |
| Accrued                expenses                                 |   |                    | 150,811     |   |                        |   | 162,039 |   |
| Related                party short-term debt                    |   |                    |        |   |                        |   | 24,061 |   |
| Capital                leases payable - current portion         |   |                    | —     |   |                        |   | — |   |
| Total                Current Liabilities                        |   |                    | 345,028     |   |                        |   | 404,854 |   |
|                                                            |   |                    |        |   |                        |   |   |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| COMMITMENTS                AND CONTINGENCIES                    |   |                    | —     |   |                        |   | — |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| STOCKHOLDERS’                EQUITY                       |   |                    |        |   |                        |   |   |   |
| Preferred                stock, $0.10 par value, 20,000 shares  |   |                    |        |   |                        |   |   |   |
| authorized;                no shares issued                     |   |                    | —     |   |                        |   | — |   |
| Common                stock, $0.01 par value, 75,000,000 shares |   |                    |        |   |                        |   |   |   |
| authorized;                40,685,800 and 40,024,316 shares     |   |                    |        |   |                        |   |   |   |
| issued                and outstanding, respectively             |   |                    | 406,858     |   |                        |   | 400,243 |   |
| Additional                paid-in capital                       |   |                    | 16,857,948  |   |                        |   | 16,728,424 |   |
| Other                comprehensive income (loss)                |   |                    | 1,790       |   |                        |   | 1,570 |   |
| Accumulated                deficit prior to development stage   |   |                    | (494,624    | )      |                        |   | (494,624 | ) |
| Accumulated                deficit during development stage     |   |                    | (15,571,826 | )      |                        |   | (14,611,612 | ) |
|                                                            |   |                    |        |   |                        |   |   |   |
| Total                Stockholders’ Equity                 |   |                    | 1,200,146   |   |                        |   | 2,024,001 |   |
|                                                            |   |                    |        |   |                        |   |   |   |
| **TOTAL                LIABILITIES AND**                        |   |                    |        |   |                        |   |   |   |
| **STOCKHOLDERS’                EQUITY**                   |   | $                       | 1,545,174   |   |                        | $      | 2,428,855 |   |

----

**INTEGRATED      PHARMACEUTICALS, INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF OPERATIONS**

|                                                     |   |                                         |       |   |                               |   |       | Period                from       |   |
|----------------------------------------------------------|--------|----------------------------------------------|------------|--------|------------------------------------|--------|------------|---------------------------------------|--------|
|                                                     |   |                                         |       |   |                               |   |       | February                1, 2003  |   |
|                                                     |   | Three  Months                Ended |       |   | Six                Months Ended    |   |       | (inception                of     |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   | development                stage)  |   |
|                                                     |   | June                30, 2007            |       |   | June                30, 2006  |   |       | June                30, 2007     |   |   | June                30, 2006  |   |   | to                June 30, 2007  |   |
|                                                     |   | (unaudited)                             |       |   | (unaudited)                   |   |       | (unaudited)                      |   |   | (unaudited)  |   |   | (unaudited)  |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                 |   | $                                            | 8,400      |   |                               |   | 14,400     |                                  |   |   | 8,400 |   |   | $ | 60,658 |   |   | $ | 146,399 |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| COST                OF GOODS SOLD                        |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Materials                and supplies                    |   |                                         | 7,680      |   |                               |   | 13,112     |                                  |   |   | 7,680 |   |   |   | 56,101 |   |   |   | 108,759 |   |
| Total                Cost of Goods Sold                  |   |                                         | 7,680      |   |                               |   | 13,112     |                                  |   |   | 7,680 |   |   |   | 56,101 |   |   |   | 108,759 |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS                PROFIT                              |   |                                         | 720        |   |                               |   | 1,288      |                                  |   |   | 720 |   |   |   | 4,557 |   |   |   | 37,640 |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| GENERAL                AND ADMINISTRATIVE EXPENSES       |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization             |   |                                         | 65,844     |   |                               |   | 64,286     |                                  |   |   | 131,688 |   |   |   | 130,786 |   |   |   | 916,858 |   |
| Research                and development                  |   |                                         | 39,563     |   |                               |   | 43,523     |                                  |   |   | 94,151 |   |   |   | 86,533 |   |   |   | 1,053,948 |   |
| Marketing                                                |   |                                         | 4,696      |   |                               |   | 6,777      |                                  |   |   | 5,051 |   |   |   | 8,849 |   |   |   | 634,685 |   |
| Legal                and professional fees               |   |                                         | 93,788     |   |                               |   | 45,669     |                                  |   |   | 173,363 |   |   |   | 91,891 |   |   |   | 1,411,616 |   |
| Consulting                                               |   |                                         | —    |   |                               |   | 14,719     |                                  |   |   | 59,359 |   |   |   | 74,078 |   |   |   | 3,193,448 |   |
| Idle                facility expense                     |   |                                         | 128,738    |   |                               |   | 131,469    |                                  |   |   | 269,046 |   |   |   | 285,264 |   |   |   | 2,284,408 |   |
| Occupancy                                                |   |                                         | 22,468     |   |                               |   | 36,274     |                                  |   |   | 47,981 |   |   |   | 69,210 |   |   |   | 1,178,377 |   |
| Labor                and benefits                        |   |                                         | 75,726     |   |                               |   | 21,843     |                                  |   |   | 98,301 |   |   |   | 47,668 |   |   |   | 950,269 |   |
| Services                paid by stock options            |   |                                         | —    |   |                               |   | 79,875     |                                  |   |   | 2,850 |   |   |   | 180,648 |   |   |   | 1,494,423 |   |
| Office                supplies and expenses              |   |                                         | 6,182      |   |                               |   | 5,037      |                                  |   |   | 13,394 |   |   |   | 9,918 |   |   |   | 199,510 |   |
| Travel                                                   |   |                                         | 4,013      |   |                               |   | 2,819      |                                  |   |   | 4,784 |   |   |   | 3,621 |   |   |   | 185,161 |   |
| Other                general and administrative expenses |   |                                         | 23,961     |   |                               |   | 25,453     |                                  |   |   | 57,919 |   |   |   | 76,075 |   |   |   | 683,098 |   |
| Total                General and Administrative Expenses |   |                                         | 464,979    |   |                               |   | 477,744    |                                  |   |   | 957,887 |   |   |   | 1,064,541 |   |   |   | 14,185,801 |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING                INCOME (LOSS)                   |   |                                         | (464,259   | )      |                               |   | (476,456   | )                                     |   |   | (957,167 | ) |   |   | (1,059,984 | ) |   |   | (14,148,161 | ) |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                INCOME (EXPENSES)                   |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                           |   |                                         | 2          |   |                               |   | 3          |                                  |   |   | 3 |   |   |   | 76 |   |   |   | 10,282 |   |
| Interest                expense                          |   |                                         | (1,148     | )      |                               |   | (1,469     | )                                     |   |   | (3,050 | ) |   |   | (3,037 | ) |   |   | (1,428,387 | ) |
| Other                income (expense)                    |   |                                         | —    |   |                               |   | —    |                                  |   |   | — |   |   |   | — |   |   |   | (5,560 | ) |
| Total                Other Income and Expenses           |   |                                         | (1,146     | )      |                               |   | (1,466     | )                                     |   |   | (3,047 | ) |   |   | (2,961 | ) |   |   | (1,423,665 | ) |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS                BEFORE TAXES                         |   |                                         | (465,405   | )      |                               |   | (477,922   | )                                     |   |   | (960,214 | ) |   |   | (1,062,945 | ) |   |   | (15,571,826 | ) |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                TAXES                              |   |                                         | —    |   |                               |   | —    |                                  |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                LOSS                                  |   |                                         | (465,405   | )      |                               |   | (477,922   | )                                     |   |   | (960,214 | ) |   |   | (1,062,945 | ) |   |   | (15,571,826 | ) |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                COMPREHENSIVE INCOME (LOSS)         |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                gain (loss) in market value of |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| investments                                              |   |                                         |       |   |                               |   | 900        |                                  |   |   |   |   |   |   | 2,450 |   |   |   | 1,570 |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                LOSS                        |   | $                                            | (465,405   | )      |                               |   | (477,022   | )                                     |   |   | (960,214 | ) |   | $ | (1,060,495 | ) |   | $ | (15,570,256 | ) |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME (LOSS) PER COMMON SHARE,       |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                AND DILUTED                         |   | (0.01                                        | )     |   |                               | (0.02  | )          |                                  |   | (0.02 | ) |   | $ | (0.05 | ) |   |   |   |   |
|                                                     |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF COMMON         |   |                                         |       |   |                               |   |       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES                OUTSTANDING, BASIC AND DILUTED     |   |                                         | 40,235,238 |   |                               |   | 20,231,949 |                                  |   |   | 40,150,868 |   |   |   | 20,231,949 |   |   |   |   |   |

----

**INTEGRATED          PHARMACEUTICALS, INC.**

**(A        Development Stage Company)**

**STATEMENTS      OF CASH FLOWS**

|                                                                           |   |                         |     |   |                         |   |       | Period                from        |   |
|--------------------------------------------------------------------------------|--------|------------------------------|----------|--------|------------------------------|--------|------------|-----------------------------------|--------|
|                                                                           |   |                         |     |   |                         |   |       | February                1, 2003   |   |
|                                                                           |   |                         |     |   |                         |   |       | (inception                of      |   |
|                                                                           |   | Period                Ended  |     |   | Period                Ended  |   |       | development                stage) |   |
|                                                                           |   | June                30, 2007 |     |   | June                30, 2006 |   |       | to                June 30, 2007   |   |
|                                                                           |   | (unaudited)                  |     |   | (unaudited)                  |   |       | (unaudited)                       |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                           |   |                         |     |   |                         |   |       |                              |   |
| Net                income (loss)                                               |   | $                            | (960,214 | )      |                         | $      | (1,062,945 | )                                 |   | $ | (15,571,826 | ) |
| Adjustments                to reconcile net income (loss) to net cash          |   |                         |     |   |                         |   |       |                              |   |   |   |   |
|   flows                provided (used) by operating activities:      |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Depreciation                and amortization                                   |   |                         | 270,981  |   |                         |   | 266,240    |                              |   |   | 1,614,646 |   |
| Loss                on disposition of assets                                   |   |                         | —  |   |                         |   | —    |                              |   |   | 7,024 |   |
| Stock                and warrants issued as incentive for notes payables       |   |                         | —  |   |                         |   | —    |                              |   |   | 496,389 |   |
| Stock                issued for interest expense                               |   |                         | —  |   |                         |   | —    |                              |   |   | 149,878 |   |
| Stock                issued for rent expense                                   |   |                         | 12,912   |   |                         |   | 17,033     |                              |   |   | 611,676 |   |
| Stock                and options issued for services                           |   |                         | 30,864   |   |                         |   | 11,954     |                              |   |   | 1,206,903 |   |
| Stock                issued for assets and securities                          |   |                         | —  |   |                         |   | —    |                              |   |   | 43,739 |   |
| Stock                options and warrants vested                               |   |                         | 62,209   |   |                         |   | 254,726    |                              |   |   | 3,853,100 |   |
| Recognition                of noncash deferred financing expense               |   |                         | —  |   |                         |   | —    |                              |   |   | 578,699 |   |
| Options                and warrants issued for services and financing          |   |                         | —  |   |                         |   | —    |                              |   |   | 253,753 |   |
| Noncash                recovery of other income                                |   |                         | —  |   |                         |   | —    |                              |   |   | (1,850 | ) |
| Changes                in assets and liabilities:                              |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Receivables                                                                    |   |                         | —  |   |                         |   | (18,912    | )                                 |   |   | 15,398 |   |
| Inventory                                                                      |   |                         | 4,942    |   |                         |   | 15,439     |                              |   |   | (113,126 | ) |
| Prepaid                expenses                                                |   |                         | 19,349   |   |                         |   | 24,182     |                              |   |   | 119,781 |   |
| Other                assets                                                    |   |                         | —  |   |                         |   | 763        |                              |   |   | 6,370 |   |
| Accounts                payable                                                |   |                         | (24,537  | )      |                         |   | (18,859    | )                                 |   |   | 95,670 |   |
| Accrued                expenses                                                |   |                         | (11,228  | )      |                         |   | 6,313      |                              |   |   | (32,172 | ) |
| Net                cash used by operating activities                           |   |                         | (594,722 | )      |                         |   | (504,066   | )                                 |   |   | (6,665,948 | ) |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Purchase                of fixed assets                                        |   |                         | (16,997  | )      |                         |   | (4,167     | )                                 |   |   | (2,760,536 | ) |
| Patent                costs                                                    |   |                         | 1,117    |   |                         |   | (39,784    | )                                 |   |   | (121,305 | ) |
| Leasehold                concessions received                                  |   |                         | —  |   |                         |   | —    |                              |   |   | 185,000 |   |
| Net                cash used by investing activities                           |   |                         | (15,880  | )      |                         |   | (43,951    | )                                 |   |   | (2,696,841 | ) |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Sale                of common stock units                                      |   |                         | 30,154   |   |                         |   | 785,000    |                              |   |   | 8,467,794 |   |
| Payments                on capital leases                                      |   |                         | —  |   |                         |   | (195       | )                                 |   |   | (9,563 | ) |
| Proceeds                from related party loans                               |   |                         | (24,061  | )      |                         |   | (12,434    | )                                 |   |   | (56,701 | ) |
| Proceeds                from exercise of options                               |   |                         | —  |   |                         |   | —    |                              |   |   | 1,080 |   |
| Proceeds                from convertible debt                                  |   |                         | —  |   |                         |   | —    |                              |   |   | 939,900 |   |
| Net                cash provided by financing activities                       |   |                         | 6,093    |   |                         |   | 772,371    |                              |   |   | 9,342,510 |   |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Net                increase in cash                                            |   |                         | (604,509 | )      |                         |   | 224,354    |                              |   |   | (20,279 | ) |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Cash,                beginning of period                                       |   |                         | 872,182  |   |                         |   | 182,582    |                              |   |   | 287,952 |   |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Cash,                end of period                                             |   | $                            | 267,673  |   |                         | $      | 406,936    |                              |   | $ | 267,673 |   |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| SUPPLEMENTAL                CASH FLOW DISCLOSURES:                             |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Income                taxes paid                                               |   | $                            | —  |   |                         | $      | —    |                              |   | $ | — |   |
| Interest                paid                                                   |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 33,802 |   |
|                                                                           |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| NON-CASH                INVESTING AND FINANCING:                               |   |                         |     |   |                         |   |       |                              |   |   |   |   |
| Stock                and warrants issued for convertible debt                  |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 1,613,076 |   |
| Stock                issued for assets and securities                          |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 43,739 |   |
| Stock                issued as deferred incentive for notes payables           |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 519,587 |   |
| Warrants                and options issued for deferred services and financing |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 520,102 |   |
| Accounts                payable paid by contributed capital                    |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 27,767 |   |
| Noncash                recovery of other income                                |   | $                            | —  |   |                         | $      | —    |                              |   | $ | 1,850 |   |

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**INTEGRATED      PHARMACEUTICALS, INC.**

**CONDENSED        NOTES TO FINANCIAL        STATEMENTS      **

**June        30,        2007      **

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**NOTE      1 – BUSINESS ORGANIZATION AND BASIS OF PRESENTATION**

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**INTEGRATED PHARMACEUTICALS, INC.**

**CONDENSED        NOTES TO FINANCIAL STATEMENTS**

**June        30,        2007**

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**NOTE      2 – LIMITED SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**NOTE      3 – PROPERTY AND EQUIPMENT**

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**INTEGRATED PHARMACEUTICALS, INC.**

**CONDENSED        NOTES TO FINANCIAL STATEMENTS**

**June        30,        2007**

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|                                                     |   | 2007   |       |   | 2006   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Equipment                                                |   | $      | 1,817,252  |   |   | $      | 1,800,255 |   |
| Furniture                and fixtures                    |   |   | 120,114    |   |   |   | 120,114 |   |
| Leasehold                improvements                    |   |   | 826,511    |   |   |   | 826,511 |   |
|                                                     |   |   | 2,763,877  |   |   |   | 2,746,880 |   |
| Less:  Accumulated                depreciation |   |   | (1,738,461 | )      |   |   | (1,467,479 | ) |
| Total                                                    |   | $      | 1,025,416  |   |   | $      | 1,279,401 |   |

**NOTE      4 – CAPITAL STOCK**

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**INTEGRATED PHARMACEUTICALS, INC.**

**CONDENSED      NOTES TO FINANCIAL STATEMENTS**

**June      30,      2007**

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**NOTE      5 – COMMON STOCK OPTIONS AND WARRANTS**

| Plan                                                                     |   | Number                of securities                to be issued                upon exercise                of outstandingoptions |   | Weighted-average                exercise                price of outstanding                options |   | Number                of securities                remaining available                for future issuance                under equity                compensation plans |
|--------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                     |   |                                                                                                                              |   |                                                                                                |   |                                                                                                                                                                    |
| Equity                compensation plan approved by security holders (1) |   | 1,025,000                                                                                                                         |   | $0.62                                                                                               |   | 575,000                                                                                                                                                                 |
|                                                                     |   |                                                                                                                              |   |                                                                                                |   |                                                                                                                                                                    |
| Total                                                                    |   |  1,025,000                                                                                                                   |   |                                                                                                |   | 575,000                                                                                                                                                            |

|                                                                  |   | Number                of Shares       |   | Weighted                Average Exercise Price    |
|-----------------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------------------|
| Outstanding                at January 1, 2006                         |   | 1,160,000                             |   | $  0.60                                 |
| Granted                                                               |   |                   250,000   |   |                      .27 |
| Exercised                                                             |   | —                               |   | —                                           |
| Forfeited                                                             |   |                   (135,000) |   |                    (0.50)          |
| Outstanding                at December 31, 2006                       |   | 1,275,000                             |   |     0.55                      |
| Granted                                                               |   | —                               |   | —                                           |
| Exercised                                                             |   | —                               |   | —                                           |
| Rescinded                                                             |   | —                               |   | —                                           |
| Options                outstanding at June 30, 2007                   |   | 1,275,000                             |   | $                 0.55                       |
|                                                                  |   |                                  |   |                                              |
| Options                exercisable at June 30, 2007                   |   |  877,4000                        |   | $                 0.67                       |
| Weighted                average fair value of options granted in 2007 |   |                                  |   | —                                           |

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**INTEGRATED PHARMACEUTICALS, INC.**

**CONDENSED          NOTES TO FINANCIAL STATEMENTS**

**June          30,          2007**

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**NOTE      6 – CONCENTRATIONS**

**NOTE      7 – COMMITMENTS AND CONTINGENCIES**

**NOTE      8 –SUBSEQUENT EVENTS**

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**Item      2  Management’s Discussion and Analysis**

**Item      6.  Management’s Discussion and Analysis or Plan of      Operation.**

*The      following discussion and analysis should be read in conjunction with the      accompanying financial statements and the notes to those financial statements      included elsewhere in this Form 10-QSB. The following discussion includes      forward-looking statements that reflect our plans, estimates and beliefs and      involve risks and uncertainties. Our actual results could differ materially      from      those discussed in these forward-looking statements. Factors that could cause      or      contribute to such differences include, but are not limited to, those discussed      below and elsewhere in this Form 10-QSB.*

**Plan      of Operation**

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**Financial      Condition and Operations**

**Financial      Condition.**

**Material      Commitments for Capital Expenditures. **

**Trends      and Seasonality.**

**Off-Balance      Sheet Arrangements**

**Item      3.  Controls and Procedures**

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**PART      II.  – OTHER INFORMATION**

**Item      1.  Legal Proceedings.**

**ITEM      2  Unregistered Sales of Equity Securities and Use of      Proceeds**

**ITEM      3  Default Upon Senior Securities**

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

**Item      5.  Other Information.**

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**ITEM      6  Exhibits and Reports on Form 8-K**

| **Number** | **Description                of Exhibit**                                                                                                                             |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                  |
| 3.1        | Amended                and Restated Articles of Incorporation of Integrated Pharmaceuticals,                Inc.                (1)                                   |
|       |                                                                                                                                                                  |
| 3.2        | Amended                and Restated Bylaws of Integrated Pharmaceuticals, Inc.                (2)                                                                     |
|       |                                                                                                                                                                  |
| 4.1        | Specimen                Certificate for Integrated Pharmaceuticals, Inc. Common Stock, par                value                $.01 per share (2)                     |
|       |                                                                                                                                                                  |
| 4.2        | Form                of Common Stock Purchase Warrant (2)                                                                                                              |
|       |                                                                                                                                                                  |
| 10.1       | Amended                and Restated  Patent License Agreement with NEC Partners                (2)                                                          |
|       |                                                                                                                                                                  |
| 10.2       | Lease                Agreement with Chantilas Properties, LLC and Advanced Process                Technologies, Inc. (2)                                              |
|       |                                                                                                                                                                  |
| 10.3       | Assignment                and Assumption of Lease(2)                                                                                                                  |
|       |                                                                                                                                                                  |
| 10.4       | Consulting                and Warrant Agreements with James Czirr (2)                                                                                                 |
|       |                                                                                                                                                                  |
| 10.5       | 2002                Stock Plan (2)                                                                                                                                    |
|       |                                                                                                                                                                  |
| 10.6       | Registration                Rights Agreement(2)                                                                                                                       |
|       |                                                                                                                                                                  |
| 10.7       | Letter                dated May 5, 2005 amending the Patent License Agreement with NEC                Partners                (3)                                     |
|       |                                                                                                                                                                  |
| 10.8       | Letter                dated October 13, 2005 amending the Patent License Agreement with                NEC                Partners (4)                                |
|       |                                                                                                                                                                  |
| 10.9       | Investment                Agreement between the Company and Dutchess Private Equities Fund,                LP dated                December 22, 2006 (5)              |
|       |                                                                                                                                                                  |
| 10.10      | Registration                Rights Agreement between the Company and Dutchess Private Equities                Fund,                LP dated December 22, 2006 (5)     |
|       |                                                                                                                                                                  |
| 10.11      | Placement                Agent Agreement among the Company, US Euro Securities Inc. and Dutchess                Private Equities Fund, LP dated December 22, 2006 (5) |
|       |                                                                                                                                                                  |
| 14         | Financial                Code of Ethics (6)                                                                                                                           |
|       |                                                                                                                                                                  |
| 21         | Subsidiaries                of Integrated Pharmaceuticals (6)                                                                                                         |

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**SIGNATURES**

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