----

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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  September 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 September 30, 2007 (unaudited) And December 31,                2006 |
|---|---------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 4 | Statements  Of  Operations And  Income                  For The Nine Months Ended September 30, 2007 and September 30, 2006                  (unaudited) |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Statements  Of                  Cash  Flows For The Nine Months Ended September 30, 2007 and                  2006 (unaudited) |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 7                -                31 | Notes                To Financial Statements – September 30,                2007 |
|--------------------------------------|----------------------------------------------------------------------------------------|

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**INTEGRATED              PHARMACEUTICALS, INC.**

**(A                Development Stage Company)**

**BALANCE              SHEETS**

----

|                                                                                                                                                                                                    |   | September                      30, |        |   |                              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                    |   | 2007                               |        |   | December                      31, |   |
|                                                                                                                                                                                                    |   | (unaudited)                        |        |   | 2006                              |   |
| **ASSETS**                                                                                                                                                                               |   |                               |        |   |                              |   |
| CURRENT                      ASSETS                                                                                                                                                                |   |                               |        |   |                              |   |
| Cash                                                                                                                                                                                          |   | $                                  | 537         |   |                              | $      | 872,181 |   |
| Accounts                      receivable                                                                                                                                                           |   |                               | 27,687      |   |                              |   | 687 |   |
| Inventory                                                                                                                                                                                          |   |                               | 108,401     |   |                              |   | 118,068 |   |
| Prepaid                      expenses                                                                                                                                                              |   |                               | 71,991      |   |                              |   | 47,128 |   |
| Total                      Current Assets                                                                                                                                                          |   |                               | 208,616     |   |                              |   | 1,038,064 |   |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
| PROPERTY                      AND EQUIPMENT, net                                                                                                                                                   |   |                               | 890,503     |   |                              |   | 1,279,401 |   |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
| OTHER                      ASSETS                                                                                                                                                                  |   |                               |        |   |                              |   |   |   |
| Investments                                                                                                                                                                                        |   |                               | 2,870       |   |                              |   | 3,590 |   |
| Deposits                                                                                                                                                                                           |   |                               | —     |   |                              |   | — |   |
| Patents,                      net of amortization                                                                                                                                                  |   |                               | 104,450     |   |                              |   | 107,800 |   |
| Total                      Other Assets                                                                                                                                                            |   |                               | 107,320     |   |                              |   | 111,390 |   |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
| **TOTAL                      ASSETS**                                                                                                                                                              |   | $                                  | 1,206,439   |   |                              | $      | 2,428,855 |   |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
| **LIABILITIES                      AND STOCKHOLDERS' EQUITY**                                                                                                                                      |   |                               |        |   |                              |   |   |   |
| CURRENT                      LIABILITIES                                                                                                                                                           |   |                               |        |   |                              |   |   |   |
| Bank                      overdraft payable                                                                                                                                                        |   | $                                  | 102         |   |                              |   | — |   |
| Accounts                      payable                                                                                                                                                              |   |                               | 192,987     |   |                              | $      | 218,754 |   |
| Accrued                      expenses                                                                                                                                                              |   |                               | 146,921     |   |                              |   | 162,039 |   |
| Related                      party short-term debt                                                                                                                                                 |   |                               | —     |   |                              |   | 24,061 |   |
| Total                      Current Liabilities                                                                                                                                                     |   |                               | 340,010     |   |                              |   | 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; 40,692,434                      and                      18,632,626 shares issued and outstanding, respectively  |   |                               | 406,914     |   |                              |   | 400,243 |   |
| Additional                      paid-in capital                                                                                                                                                    |   |                               | 16,859,900  |   |                              |   | 16,728,424 |   |
| Other                      comprehensive income (loss)                                                                                                                                             |   |                               | 850         |   |                              |   | 1,570 |   |
| Accumulated                      deficit prior to development stage                                                                                                                                |   |                               | (494,624    | )      |                              |   | (494,624 | ) |
| Accumulated                      deficit during development stage                                                                                                                                  |   |                               | (15,906,611 | )      |                              |   | (14,611,612 | ) |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
| Total                      Stockholders' Equity                                                                                                                                                    |   |                               | 866,429     |   |                              |   | 2,024,001 |   |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
|                                                                                                                                                                                |   |                               |        |   |                              |   |   |   |
| **TOTAL                    LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                                                                                       |   | $                                  | 1,206,439   |   |                              | $      | 2,428,855 |   |

----

**INTEGRATED                PHARMACEUTICALS, INC.**

**(A                Development Stage Company)**

**STATEMENTS                  OF OPERATIONS**

----

|                                                                                                                      |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |  Period                          from      |       |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|--------|---------------------------------------------|--------|------------|---------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|-------------------------------------------------|------------|
|                                                                                                                      |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |  February                          1, 2003 |       |
|                                                                                                                      |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |  (inception                          of    |       |
|                                                                                                                      |   | Three  Months                          Ended |       |   | Nine                          Months Ended  |   |       |  development                          stage) |   |
|                                                                                                                      |   | September                          30, 2007            |       |   | September                          30, 2006 |   |       | September                          30, 2007       |   |   | September                          30, 2006 |   |   | to                          September 30, 2007  |       |
|                                                                                                                      |   | (unaudited)                                            |       |   | (unaudited)                                 |   |       | (unaudited)                                       |   |   | (unaudited)                                 |   |   | (unaudited)                                     |       |
|                                                                                                                      |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| REVENUES                                                                                                                  |   | $                                                      | 27,000     |   |                                        | $      | —    |                                              |   | $      | 35,400                                      |   |   | $                                               | 60,658     |   |   | $ | 173,399 |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| COST                          OF GOODS SOLD                                                                               |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| Materials                          and supplies                                                                           |   |                                                   | 4,725      |   |                                        |   | —    |                                              |   |   | 12,405                                      |   |   |                                            | 56,101     |   |   |   | 113,484 |   |
| Total                          Cost of Goods Sold                                                                         |   |                                                   | 4,725      |   |                                        |   | —    |                                              |   |   | 12,405                                      |   |   |                                            | 56,101     |   |   |   | 113,484 |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| GROSS                          PROFIT                                                                                     |   |                                                   | 22,275     |   |                                        |   | —    |                                              |   |   | 22,995                                      |   |   |                                            | 4,557      |   |   |   | 59,915 |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| GENERAL                          AND ADMINISTRATIVE EXPENSES                                                              |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| Depreciation                          and amortization                                                                    |   |                                                   | 64,538     |   |                                        |   | 64,770     |                                              |   |   | 196,227                                     |   |   |                                            | 195,556    |   |   |   | 981,397 |   |
| Research                          and development                                                                         |   |                                                   | 72,532     |   |                                        |   | 47,919     |                                              |   |   | 166,683                                     |   |   |                                            | 134,452    |   |   |   | 1,126,480 |   |
| Marketing                                                                                                                 |   |                                                   | 6,743      |   |                                        |   | 3,900      |                                              |   |   | 10,760                                      |   |   |                                            | 12,749     |   |   |   | 640,394 |   |
| Legal                          and professional fees                                                                      |   |                                                   | 25,613     |   |                                        |   | 51,152     |                                              |   |   | 198,975                                     |   |   |                                            | 143,043    |   |   |   | 1,437,228 |   |
| Consulting                                                                                                                |   |                                                   | —    |   |                                        |   | 51,918     |                                              |   |   | 59,359                                      |   |   |                                            | 125,996    |   |   |   | 3,193,448 |   |
| Idle                          facility expense                                                                            |   |                                                   | 163,608    |   |                                        |   | 153,743    |                                              |   |   | 438,095                                     |   |   |                                            | 439,007    |   |   |   | 2,453,457 |   |
| Occupancy                                                                                                                 |   |                                                   | 26,422     |   |                                        |   | 30,330     |                                              |   |   | 84,995                                      |   |   |                                            | 99,540     |   |   |   | 1,215,391 |   |
| Labor                          and benefits                                                                               |   |                                                   | (31,010    | )      |                                        |   | 13,750     |                                              |   |   | 67,291                                      |   |   |                                            | 61,418     |   |   |   | 919,259 |   |
| Services                          paid by stock options                                                                   |   |                                                   | —    |   |                                        |   | 43,754     |                                              |   |   | 2,850                                       |   |   |                                            | 224,402    |   |   |   | 1,494,423 |   |
| Office                          supplies and expenses                                                                     |   |                                                   | 3,454      |   |                                        |   | 5,359      |                                              |   |   | 15,408                                      |   |   |                                            | 15,277     |   |   |   | 201,524 |   |
| Travel                                                                                                                    |   |                                                   | 542        |   |                                        |   | 2,870      |                                              |   |   | 5,326                                       |   |   |                                            | 6,491      |   |   |   | 185,703 |   |
| Other                          general and administrative expenses                                                        |   |                                                   | 14,207     |   |                                        |   | 30,380     |                                              |   |   | 63,723                                      |   |   |                                            | 106,455    |   |   |   | 688,902 |   |
| Total                          General and Administrative Expenses                                                        |   |                                                   | 346,649    |   |                                        |   | 499,845    |                                              |   |   | 1,309,692                                   |   |   |                                            | 1,564,386  |   |   |   | 14,537,606 |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| OPERATING                          INCOME (LOSS)                                                                          |   |                                                   | (324,374   | )      |                                        |   | (499,845   | )                                                 |   |   | (1,286,697                                  | )      |   |                                            | (1,559,829 | ) |   |   | (14,477,691 | ) |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| OTHER                          INCOME (EXPENSES)                                                                          |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| Interest                          income                                                                                  |   |                                                   | 2          |   |                                        |   | 3          |                                              |   |   | 6                                           |   |   |                                            | 79         |   |   |   | 10,285 |   |
| Interest                          expense                                                                                 |   |                                                   | (5,258     | )      |                                        |   | (2,805     | )                                                 |   |   | (8,308                                      | )      |   |                                            | (5,842     | ) |   |   | (1,433,645 | ) |
| Other                          income (expense)                                                                           |   |                                                   | —    |   |                                        |   | —    |                                              |   |   | —                                     |   |   |                                            | —    |   |   |   | (5,560 | ) |
| Total                          Other Income and Expenses                                                                  |   |                                                   | (5,256     | )      |                                        |   | (2,802     | )                                                 |   |   | (8,302                                      | )      |   |                                            | (5,763     | ) |   |   | (1,428,920 | ) |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| LOSS                          BEFORE TAXES                                                                                |   |                                                   | (329,630   | )      |                                        |   | (502,647   | )                                                 |   |   | (1,294,999                                  | )      |   |                                            | (1,565,592 | ) |   |   | (15,906,611 | ) |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| INCOME                          TAXES                                                                                     |   |                                                   | —    |   |                                        |   | —    |                                              |   |   | —                                     |   |   |                                            | —    |   |   |   | — |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| NET                          LOSS                                                                                    |   |                                                   | (329,630   | )      |                                        |   | (502,647   | )                                                 |   |   | (1,294,999                                  | )      |   |                                            | (1,565,592 | ) |   |   | (15,906,611 | ) |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| OTHER                          COMPREHENSIVE INCOME (LOSS)                                                                |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| Unrealized                          gain (loss) in market value of investments                                            |   |                                                   | —    |   |                                        |   | 1,570      |                                              |   |   | —                                     |   |   |                                            | 880        |   |   |   | 850 |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| COMPREHENSIVE                          LOSS                                                                               |   | $                                                      | (329,630   | )      |                                        | $      | (501,077   | )                                                 |   | $      | (1,294,999                                  | )      |   | $                                               | (1,564,712 | ) |   | $ | (15,905,761 | ) |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| NET                          INCOME (LOSS) PER COMMON SHARE, BASIC AND DILUTED                                            |   | $                                                      | nil        |   |                                        | $      | (0.02      | )                                                 |   | $      | (0.03                                       | )      |   | $                                               | (0.07      | ) |   |   |   |   |
|                                                                                                            |   |                                                   |       |   |                                        |   |       |                                              |   |   |                                        |   |   |                                            |       |   |   |   |   |   |
| WEIGHTED                          AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND                          DILUTED |   |                                                   | 40,962,434 |   |                                        |   | 22,593,196 |                                              |   |   | 40,591,909                                  |   |   |                                            | 21,019,032 |   |   |   |   |   |

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**INTEGRATED                  PHARMACEUTICALS, INC.**

**(A                    Development Stage Company)**

**STATEMENTS                      OF CASH FLOWS**

----

|                                                                                       |   |                                                                   |       |   |                                          |   |       | Period                            from      |   |
|--------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|--------|-----------------------------------------------|--------|------------|---------------------------------------------|--------|
|                                                                                       |   |                                                                   |       |   |                                          |   |       | February                            1, 2003 |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       | (inception                            of    |   |
|                                                                                       |   | For                            the Nine Months Ended    |       |   | development                            stage) |   |
|                                                                                       |   | September                            30, 2007                          |       |   | September                            30, 2006 |   |       | to                            Sept 30, 2007 |   |
|                                                                                       |   | (unaudited)                                                            |       |   | (unaudited)                                   |   |       | (unaudited)                                 |   |
| CASH                            FLOWS FROM OPERATING ACTIVITIES:                           |   |                                                                   |       |   |                                          |   |       |                                        |   |
| Net                            income (loss)                                               |   | $                                                                      | (1,294,999 | )      |                                          | $      | (1,565,592 | )                                           |   | $ | (15,906,611 | ) |
| Adjustments                            to reconcile net income (loss) to net cash          |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
|   flows                            provided (used) by operating activities:      |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Depreciation                            and amortization                                   |   |                                                                   | 406,891    |   |                                          |   | 405,587    |                                        |   |   | 1,750,556 |   |
| 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                                   |   |                                                                   | 13,749     |   |                                          |   | 22,605     |                                        |   |   | 636,639 |   |
| Stock                            issued for services                                       |   |                                                                   | 32,231     |   |                                          |   | 18,390     |                                        |   |   | 1,208,270 |   |
| Stock                            issued for assets and securities                          |   |                                                                   | —    |   |                                          |   | —    |                                        |   |   | 43,739 |   |
| Stock                            options and warrants vested                               |   |                                                                   | 62,209     |   |                                          |   | 350,399    |                                        |   |   | 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                                                                                |   |                                                                   | (27,000    | )      |                                          |   | (10,512    | )                                           |   |   | (11,603 | ) |
| Inventory                                                                                  |   |                                                                   | 9,667      |   |                                          |   | 7,826      |                                        |   |   | (108,401 | ) |
| Prepaid                            expenses                                                |   |                                                                   | (24,863    | )      |                                          |   | 32,951     |                                        |   |   | 75,569 |   |
| Other                            assets                                                    |   |                                                                   | —    |   |                                          |   | 763        |                                        |   |   | 6,370 |   |
| Bank                            overdraft payable                                          |   |                                                                   | 102        |   |                                          |   | —    |                                        |   |   | 102 |   |
| Accounts                            payable                                                |   |                                                                   | (25,767    | )      |                                          |   | 3,588      |                                        |   |   | 94,440 |   |
| Accrued                            expenses                                                |   |                                                                   | (15,118    | )      |                                          |   | 23,876     |                                        |   |   | (36,063 | ) |
| Net                            cash used by operating activities                           |   |                                                                   | (862,898   | )      |                                          |   | (710,119   | )                                           |   |   | (6,934,125 | ) |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| CASH                            FLOWS FROM INVESTING ACTIVITIES:                           |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Purchase                            of fixed assets                                        |   |                                                                   | (17,995    | )      |                                          |   | (39,664    | )                                           |   |   | (2,761,534 | ) |
| Patent                            costs                                                    |   |                                                                   | 3,350      |   |                                          |   | (54,573    | )                                           |   |   | (119,072 | )  |
| Leasehold                            concessions received                                  |   |                                                                   | —    |   |                                          |   | —    |                                        |   |   | 185,000 |   |
| Net                            cash used by investing activities                           |   |                                                                   | (14,645    | )      |                                          |   | (94,237    | )                                           |   |   | (2,695,606 | ) |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| CASH                            FLOWS FROM FINANCING ACTIVITIES:                           |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Sale                            of common stock units                                      |   |                                                                   | 29,960     |   |                                          |   | 785,000    |                                        |   |   | 8,467,600 |   |
| Payments                            on capital leases                                      |   |                                                                   | —    |   |                                          |   | (195       | )                                           |   |   | (9,563 | ) |
| Proceeds                            from related party loans                               |   |                                                                   | (24,061    | )      |                                          |   | (20,493    | )                                           |   |   | (56,701 | ) |
| Proceeds                            from exercise of options                               |   |                                                                   | —    |   |                                          |   | —    |                                        |   |   | 1,080 |   |
| Proceeds                            from convertible debt                                  |   |                                                                   | —    |   |                                          |   | —    |                                        |   |   | 939,900 |   |
| Net                            cash provided by financing activities                       |   |                                                                   | 5,899      |   |                                          |   | 764,312    |                                        |   |   | 9,342,316 |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Net                            increase in cash                                            |   |                                                                   | (871,644   | )      |                                          |   | (40,044    | )                                           |   |   | (287,415 | ) |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Cash,                            beginning of period                                       |   |                                                                   | 872,181    |   |                                          |   | 182,582    |                                        |   |   | 287,952 |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Cash,                            end of period                                             |   | $                                                                      | 537        |   |                                          | $      | 142,538    |                                        |   | $ | 537 |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| SUPPLEMENTAL                            CASH FLOW DISCLOSURES:                             |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Income                            taxes paid                                               |   | $                                                                      | —    |   |                                          | $      | —    |                                        |   | $ | — |   |
| Interest                            paid                                                   |   | $                                                                      | —    |   |                                          | $      | —    |                                        |   | $ | 25,000 |   |
|                                                                                       |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| NON-CASH                            INVESTING AND FINANCING:                               |   |                                                                   |       |   |                                          |   |       |                                        |   |   |   |   |
| Stock                            options and warrants vested                               |   | $                                                                      | 62,209     |   |                                          | $      | 350,399    |                                        |   | $ | 3,799,324 |   |
| 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 |   |
| Stock                            issued for prepaid and deferred rent and rent expense     |   | $                                                                      | 20,445     |   |                                          | $      | 22,605     |                                        |   | $ | 619,209 |   |
| Stock                            and warrants issued for services                          |   | $                                                                      | 32,044     |   |                                          | $      | 18,390     |                                        |   | $ | 1,108,133 |   |
| 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 INTERIM FINANCIAL STATEMENTS**

**September                30, 2007**

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

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**INTEGRATED                  PHARMACEUTICALS, INC.**

**CONDENSED                  NOTES TO INTERIM FINANCIAL STATEMENTS**

**September                  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 INTERIM FINANCIAL STATEMENTS**

**September                  30, 2007**

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|                                                           |   | September                      30,2007 |       |   | December                      31,2006 |   |
|----------------------------------------------------------------|--------|----------------------------------------|------------|--------|---------------------------------------|--------|
| Equipment                                                      |   | $                                      | 1,818,250  |   |                                  | $      | 1,800,255 |   |
| Furniture                      and fixtures                    |   |                                   | 120,114    |   |                                  |   | 120,114 |   |
| Leasehold                      improvements                    |   |                                   | 826,511    |   |                                  |   | 826,511 |   |
|                                                           |   |                                   | 2,764,875  |   |                                  |   | 2,746,880 |   |
| Less:  Accumulated                      depreciation |   |                                   | (1,874,372 | )      |                                  |   | (1,467,479 | ) |
| Total                                                          |   | $                                      | 890,503    |   |                                  | $      | 1,279,401 |   |

**NOTE            4 – CAPITAL STOCK**

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**INTEGRATED                  PHARMACEUTICALS, INC.**

**CONDENSED                  NOTES TO INTERIM FINANCIAL STATEMENTS**

**September                  30, 2007**

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

| Plan                                                                           |   | Number                      of securities to be issued upon exercise of outstanding options |   | 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 |      |   | WeightedAverageExercise                      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 September 30, 2007              |   |                                  | 1,275,000 |   |                                               | $      | 0.55 |   |
|                                                                        |   |                                  |      |   |                                               |   |   |   |
| Options                      exercisable at September 30, 2007              |   |                                  | 894,800   |   |                                               | $      | 0.67 |   |
| Weighted                      average fair value of options granted in 2007 |   |                                  |      |   |                                               |   | — |   |

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**INTEGRATED                      PHARMACEUTICALS, INC.**

**CONDENSED                      NOTES TO INTERIM FINANCIAL STATEMENTS**

**September                      30, 2007**

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**NOTE            6 – CONCENTRATIONS**

**NOTE            7 – COMMITMENTS AND CONTINGENCIES**

**NOTE            8 –SUBSEQUENT EVENTS**

----

**INTEGRATED                      PHARMACEUTICALS, INC.**

**CONDENSED                      NOTES TO INTERIM FINANCIAL STATEMENTS**

**September                      30, 2007**

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

**MANAGEMENT’S        DISCUSSION AND ANALYSIS **
**OF        FINANCIAL CONDITION AND PLAN OF OPERATION**

***You        should read the following discussion in conjunction with our financial        statements, together with the notes to those statements included elsewhere        in        this prospectus. The following discussion contains forward-looking statements        that involve risks, uncertainties and assumptions such as statements of our        plans, objectives, expectations and intentions. Our actual results may differ        materially from those discussed in these forward-looking statements because        of        the risks and uncertainties inherent in future        events.***

**Plan        of Operation**

| a)                      | The                  minerals are 100% absorbable; |
|----------------------------------------|----------------------------------------------------|

| b)                      | There                  is no taste of the minerals in the                  bottle; |
|----------------------------------------|------------------------------------------------------------------------------------|

| c)                      | There                  are no calories, artificial flavoring, or                  sweeteners. |
|----------------------------------------|-----------------------------------------------------------------------------------------------|

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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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