----

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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  March 31,              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                                           | 12 |
|                                                                                  |                                                                         |   |
| ITEM                  2                                                               | Unregistered                  Sales of Equity Securities and Use of Proceeds | 12 |
|                                                                                  |                                                                         |   |
| 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                            | 13 |
|                                                                                  |                                                                         |   |
| 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 March 31, 2007 And December 31,                  2006 |
|---|---------------------------------------------------------------------------------------------|

| 4 | Statements Of Operations And Income                For The Three Months Ended March 31, 2007 and March 31,                2006 |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Statements Of                Cash Flows For The Three Months Ended March 31, 2007 and March                31, 2006 |
|---|------------------------------------------------------------------------------------------------------------------------------------|

| 7 - 31 | Notes                  To Financial Statements – March 31,                  2007 |
|--------|----------------------------------------------------------------------------------------|

----

| **INTEGRATED                  PHARMACEUTICALS, INC.**        |
|-------------------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**           |
| **BALANCE                  SHEETS**                          |

|                                                                     |   | March                  31, |        |   |                          |   |
|--------------------------------------------------------------------------|--------|----------------------------|-------------|--------|-------------------------------|--------|
|                                                                     |   | 2007                       |        |   | December                  31, |   |
|                                                                     |   | (unaudited)                |        |   | 2006                          |   |
| **ASSETS**                                                               |   |                       |        |   |                          |   |   |   |
| CURRENT                  ASSETS                                          |   |                       |        |   |                          |   |   |   |
| Cash                                                                     |   | $                          | 509,688     |   |                          | $      | 872,182 |   |
| Accounts                  receivable                                     |   |                       | 686         |   |                          |   | 686 |   |
| Inventory                                                                |   |                       | 119,709     |   |                          |   | 118,068 |   |
| Prepaid                  expenses                                        |   |                       | 14,959      |   |                          |   | 47,128 |   |
| Total                  Current Assets                                    |   |                       | 645,042     |   |                          |   | 1,038,064 |   |
|                                                                     |   |                       |        |   |                          |   |   |   |
| PROPERTY                  AND EQUIPMENT, net                             |   |                       | 1,144,474   |   |                          |   | 1,279,401 |   |
|                                                                     |   |                       |        |   |                          |   |   |   |
| OTHER                  ASSETS                                            |   |                       |        |   |                          |   |   |   |
| Investments                                                              |   |                       | 2,720       |   |                          |   | 3,590 |   |
| Patents,                  net of amortization                            |   |                       | 107,554     |   |                          |   | 107,800 |   |
| Total                  Other Assets                                      |   |                       | 110,274     |   |                          |   | 111,390 |   |
|                                                                     |   |                       |        |   |                          |   |   |   |
| **TOTAL                  ASSETS**                                        |   | $                          | 1,899,790   |   |                          | $      | 2,428,855 |   |
|                                                                     |   |                       |        |   |                          |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                |   |                       |        |   |                          |   |   |   |
| CURRENT                  LIABILITIES                                     |   |                       |        |   |                          |   |   |   |
| Accounts                  payable                                        |   | $                          | 120,131     |   |                          | $      | 218,754 |   |
| Accrued                  expenses                                        |   |                       | 124,604     |   |                          |   | 162,039 |   |
| Related                  party short-term debt                           |   |                       | 12,722      |   |                          |   | 24,061 |   |
| Total                  Current Liabilities                               |   |                       | 257,457     |   |                          |   | 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;                  40,560,163 and 40,024,316 shares            |   |                       |        |   |                          |   |   |   |
| issued                  and outstanding, respectively                    |   |                       | 405,602     |   |                          |   | 400,243 |   |
| Additional                  paid-in capital                              |   |                       | 16,838,293  |   |                          |   | 16,728,424 |   |
| Other                  comprehensive income                              |   |                       | 700         |   |                          |   | 1,570 |   |
| Accumulated                  deficit prior to development stage          |   |                       | (494,624    | )      |                          |   | (494,624 | ) |
| Accumulated                  deficit during development stage            |   |                       | (15,107,638 | )      |                          |   | (14,611,612 | ) |
|                                                                     |   |                       |        |   |                          |   |   |   |
| Total                  Stockholders' Equity                              |   |                       | 1,642,333   |   |                          |   | 2,024,001 |   |
|                                                                     |   |                       |        |   |                          |   |   |   |
| **TOTAL                  LIABILITIES AND**                               |   |                       |        |   |                          |   |   |   |
| **STOCKHOLDERS'                  EQUITY**                                |   | $                          | 1,899,790   |   |                          | $      | 2,428,855 |   |

----

| **INTEGRATED                PHARMACEUTICALS, INC.**          |
|-----------------------------------------------------------------------------------------------------------|
| **(A                Development Stage Company)**             |
| **STATEMENTS                OF OPERATIONS**                  |

|                                                     |   |                                                 |       |   |                              |   |       | Period                from       |   |
|----------------------------------------------------------|--------|------------------------------------------------------|------------|--------|-----------------------------------|--------|------------|----------------------------------|--------|
|                                                     |   |                                                 |       |   |                              |   |       | February                1, 2003  |   |
|                                                     |   |                                                 |       |   |                              |   |       | (inception                of     |   |
|                                                     |   | Three                Months Ending    |       |   | development                stage) |   |
|                                                     |   | March                31, 2007                        |       |   | March                31, 2006     |   |       | to                March 31, 2007 |   |
|                                                     |   | (unaudited)                                          |       |   | (unaudited)                       |   |       | (unaudited)                      |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |
| REVENUES                                                 |   | $                                                    | —    |   |                              | $      | 46,258     |                             |   | $ | 137,999 |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| COST                OF GOODS SOLD                        |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| Materials                and supplies                    |   |                                                 | —    |   |                              |   | 42,989     |                             |   |   | 101,079 |   |
| Total                Cost of Goods Sold                  |   |                                                 | —    |   |                              |   | 42,989     |                             |   |   | 101,079 |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| GROSS                PROFIT                              |   |                                                 | —    |   |                              |   | 3,269      |                             |   |   | 36,920 |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| GENERAL                AND ADMINISTRATIVE EXPENSES       |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| Depreciation                and amortization             |   |                                                 | 65,844     |   |                              |   | 66,500     |                             |   |   | 851,014 |   |
| Research                and development                  |   |                                                 | 55,558     |   |                              |   | 43,010     |                             |   |   | 1,015,355 |   |
| Marketing                                                |   |                                                 | 355        |   |                              |   | 2,072      |                             |   |   | 629,989 |   |
| Legal                and professional fees               |   |                                                 | 79,525     |   |                              |   | 46,222     |                             |   |   | 1,317,778 |   |
| Consulting                                               |   |                                                 | 59,359     |   |                              |   | 59,359     |                             |   |   | 3,193,448 |   |
| Idle                facility expense                     |   |                                                 | 139,884    |   |                              |   | 153,795    |                             |   |   | 2,155,246 |   |
| Occupancy                                                |   |                                                 | 30,985     |   |                              |   | 32,936     |                             |   |   | 1,161,381 |   |
| Labor                and benefits                        |   |                                                 | 22,575     |   |                              |   | 25,825     |                             |   |   | 874,543 |   |
| Services                paid by stock options            |   |                                                 | 2,850      |   |                              |   | 100,773    |                             |   |   | 1,494,423 |   |
| Office                supplies and expenses              |   |                                                 | 7,255      |   |                              |   | 4,881      |                             |   |   | 193,371 |   |
| Travel                                                   |   |                                                 | 770        |   |                              |   | 802        |                             |   |   | 181,147 |   |
| Other                general and administrative expenses |   |                                                 | 29,167     |   |                              |   | 50,622     |                             |   |   | 654,346 |   |
| Total                General and Administrative Expenses |   |                                                 | 494,127    |   |                              |   | 586,797    |                             |   |   | 13,722,041 |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| OPERATING                INCOME (LOSS)                   |   |                                                 | (494,127   | )      |                              |   | (583,528   | )                                |   |   | (13,685,121 | ) |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| OTHER                INCOME (EXPENSES)                   |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| Interest                income                           |   |                                                 | 2          |   |                              |   | 73         |                             |   |   | 10,281 |   |
| Interest                expense                          |   |                                                 | (1,901     | )      |                              |   | (1,568     | )                                |   |   | (1,427,238 | ) |
| Other                income (expense)                    |   |                                                 | —    |   |                              |   | —    |                             |   |   | (5,560 | ) |
| Total                Other Income and Expenses           |   |                                                 | (1,899     | )      |                              |   | (1,495     | )                                |   |   | (1,422,517 | ) |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| LOSS                BEFORE TAXES                         |   |                                                 | (496,026   | )      |                              |   | (585,023   | )                                |   |   | (15,107,638 | ) |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| INCOME                TAXES                              |   |                                                 | —    |   |                              |   | —    |                             |   |   | — |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| NET                LOSS                                  |   |                                                 | (496,026   | )      |                              |   | (585,023   | )                                |   |   | (15,107,638 | ) |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| OTHER                COMPREHENSIVE INCOME (LOSS)         |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| Unrealized                gain (loss) in market value of |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| investments                                              |   |                                                 | (870       | )      |                              |   | 1,550      |                             |   |   | 700 |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| COMPREHENSIVE                LOSS                        |   | $                                                    | (496,896   | )      |                              | $      | (583,473   | )                                |   | $ | (15,106,938 | ) |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| NET                INCOME (LOSS) PER COMMON SHARE,       |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| BASIC                AND DILUTED                         |   | $                                                    | (0.01      | )      |                              | $      | (0.03      | )                                |   |   |   |   |
|                                                     |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF COMMON         |   |                                                 |       |   |                              |   |       |                             |   |   |   |   |
| SHARES                OUTSTANDING, BASIC AND DILUTED     |   |                                                 | 40,523,130 |   |                              |   | 19,343,829 |                             |   |   |   |   |

----

| **INTEGRATED                  PHARMACEUTICALS, INC.**          |
|-------------------------------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**             |
| **STATEMENTS                  OF CASH FLOWS**                  |

|                                                                             |   |                            |     |   |                            |   |     | Period                  from        |   |
|----------------------------------------------------------------------------------|--------|---------------------------------|----------|--------|---------------------------------|--------|----------|-------------------------------------|--------|
|                                                                             |   |                            |     |   |                            |   |     | February                  1, 2003   |   |
|                                                                             |   |                            |     |   |                            |   |     | (inception                  of      |   |
|                                                                             |   | Period                  Ended   |     |   | Period                  Ended   |   |     | development                  stage) |   |
|                                                                             |   | March                  31, 2007 |     |   | March                  31, 2006 |   |     | to                  March 31, 2007  |   |
|                                                                             |   | (unaudited)                     |     |   | (unaudited)                     |   |     | (unaudited)                         |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                           |   |                            |     |   |                            |   |     |                                |   |
| Net                  income (loss)                                               |   | $                               | (496,026 | )      |                            | $      | (585,023 | )                                   |   | $ | (15,083,513 | ) |
| Adjustments                  to reconcile net income (loss) to net cash          |   |                            |     |   |                            |   |     |                                |   |   |   |   |
|   flows                  provided (used) by operating activities:      |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| Depreciation                  and amortization                                   |   |                            | 137,988  |   |                            |   | 132,915  |                                |   |   | 1,481,653 |   |
| 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                                   |   |                            | 7,298    |   |                            |   | 8,675    |                                |   |   | 606,062 |   |
| Stock                  issued for services                                       |   |                            | 21,221   |   |                            |   | 4,754    |                                |   |   | 1,197,260 |   |
| Stock                  issued for assets and securities                          |   |                            | —  |   |                            |   | —  |                                |   |   | 43,739 |   |
| Stock                  options and warrants vested                               |   |                            | 62,209   |   |                            |   | 160,132  |                                |   |   | 3,828,975 |   |
| 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                                                                      |   |                            | —  |   |                            |   | (30,724  | )                                   |   |   | 15,398 |   |
| Inventory                                                                        |   |                            | (1,641   | )      |                            |   | 11,996   |                                |   |   | (119,709 | ) |
| Prepaid                  expenses                                                |   |                            | 32,169   |   |                            |   | 26,027   |                                |   |   | 132,601 |   |
| Other                  assets                                                    |   |                            | —  |   |                            |   | 763      |                                |   |   | 6,370 |   |
| Accounts                  payable                                                |   |                            | (98,623  | )      |                            |   | (23,138  | )                                   |   |   | 21,584 |   |
| Accrued                  expenses                                                |   |                            | (37,435  | )      |                            |   | 6,054    |                                |   |   | (58,379 | ) |
| Net                  cash used by operating activities                           |   |                            | (372,840 | )      |                            |   | (287,569 | )                                   |   |   | (6,444,066 | ) |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                           |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| Purchase                  of fixed assets                                        |   |                            | —  |   |                            |   | —  |                                |   |   | (2,743,539 | ) |
| Patent                  costs                                                    |   |                            | (2,815   | )      |                            |   | (17,237  | )                                   |   |   | (125,237 | ) |
| Leasehold                  concessions received                                  |   |                            | —  |   |                            |   | —  |                                |   |   | 185,000 |   |
| Net                  cash used by investing activities                           |   |                            | (2,815   | )      |                            |   | (17,237  | )                                   |   |   | (2,683,776 | ) |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                           |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| Sale                  of common stock units                                      |   |                            | 24,500   |   |                            |   | 270,000  |                                |   |   | 8,462,140 |   |
| Payments                  on capital leases                                      |   |                            | —  |   |                            |   | (195     | )                                   |   |   | (9,563 | ) |
| Payments                  on related party loans                                 |   |                            | (11,339  | )      |                            |   | (4,595   | )                                   |   |   | (43,979 | ) |
| Proceeds                  from exercise of options                               |   |                            | —  |   |                            |   | —  |                                |   |   | 1,080 |   |
| Proceeds                  from convertible debt                                  |   |                            | —  |   |                            |   | —  |                                |   |   | 939,900 |   |
| Net                  cash provided by financing activities                       |   |                            | 13,161   |   |                            |   | 265,210  |                                |   |   | 9,349,578 |   |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| Net                  increase (decrease) in cash                                 |   |                            | (362,494 | )      |                            |   | (39,596  | )                                   |   |   | 221,736 |   |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| Cash,                  beginning of period                                       |   |                            | 872,182  |   |                            |   | 182,582  |                                |   |   | 287,952 |   |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| Cash,                  end of period                                             |   | $                               | 509,688  |   |                            | $      | 142,986  |                                |   | $ | 509,688 |   |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
|                                                                             |   |                            |     |   |                            |   |     |                                |   |   |   |   |
| 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**

**March          31, 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**

**March            31, 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**

**March            31, 2007**

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|                                                       |   | 2007   |       |   | 2006   |   |
|------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Equipment                                                  |   | $      | 1,800,255  |   |   | $      | 1,800,255 |   |
| Furniture                  and fixtures                    |   |   | 120,114    |   |   |   | 120,114 |   |
| Leasehold                  improvements                    |   |   | 826,511    |   |   |   | 826,511 |   |
|                                                       |   |   | 2,746,880  |   |   |   | 2,746,880 |   |
| Less:  Accumulated                  depreciation |   |   | (1,602,406 | )      |   |   | (1,467,479 | ) |
| Total                                                      |   | $      | 1,144,474  |   |   | $      | 1,279,401 |   |

**NOTE        4 – CAPITAL STOCK**

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**INTEGRATED            PHARMACEUTICALS, INC.**

**CONDENSED            NOTES TO FINANCIAL STATEMENTS**

**March            31, 2007**

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

| Plan                                                                       |   | Number                  of securities tobe                  issued upon exerciseof                  outstanding options |      |   | Weighted-average                  exerciseprice                  of outstanding options |   |                                                              | Number                  of securities remaining                  available forfuture                  issuance underequity                  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                  AverageExercise                  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 March 31, 2007                  |   |                              | 1,275,000 |   |                                                             | $      | 0.55 |   |
|                                                                    |   |                              |      |   |                                                             |   |   |   |
| Options                  exercisable at March 31, 2007                  |   |                              | 877,400   |   |                                                             | $      | 0.67 |   |
| Weighted                  average fair value of options granted in 2007 |   |                              |      |   |                                                             |   | — |   |

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**INTEGRATED                PHARMACEUTICALS, INC.**

**CONDENSED                NOTES TO FINANCIAL STATEMENTS**

**March                31, 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 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**

**Financial      Condition.**

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**Material      Commitments for Capital Expenditures. **

**Trends      and Seasonality.**

**Off-Balance      Sheet Arrangements**

**Item      3.          Controls and      Procedures**

**PART      II.  – OTHER INFORMATION**

**Item      1.          Legal      Proceedings.**

**Item      2.          Unregistered Sales of      Equity Securities and Use of Proceeds**

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**Item      3.          Default Upon Senior      Securities**

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

**Item      5.          Other      Information.**

**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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