UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the quarterly period ended:        APRIL 30, 2007

                                       or

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

For the transition period from ______________________ to _______________________

                         Commission File Number: 0-22011
                                                 -------

                         SYNOVICS PHARMACEUTICALS, INC.
               (EXACT NAME OF COMPANY AS SPECIFIED IN ITS CHARTER)

            NEVADA                                              86-0760991
----------------------------                                  ---------------
(STATE OR OTHER JURISDICTION OF                               I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION)                             IDENTIFICATION NUMBER

2575 E. CAMELBACK RD., SUITE 450  PHOENIX, ARIZONA                85016
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                        (ZIP CODE)

                                  602-508-0112
                -------------------------------------------------
                (COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE)

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

            Indicate by check mark whether the Company is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one):

Large accelerated filer [ ] Accelerated Filer [ ] Non-accelerated filer [X]

Indicate by check mark whether the Company is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [ X ]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

As of June 11, 2007 there were 29,614,630 shares of common stock outstanding.





<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
                            INDEX TO QUARTERLY REPORT
                                  ON FORM 10-Q



                                                                            PAGE
PART I - FINANCIAL INFORMATION

ITEM I.     Financial Statements.

                                   (UNAUDITED)
            Condensed Consolidated Balance Sheets                             3
            Condensed Consolidated Statements of Operations                   4
            Condensed Consolidated Statements of Cash Flows                   5
            Notes to Condensed Consolidated Financial Statements              6

ITEM 2.     Management's Discussion and Analysis of Financial Condition
            and Results of Operations.                                       21

ITEM 3.     Quantitative and Qualitative Disclosures About Market Risk.      26

ITEM 4.     Controls and Procedures.                                         27


PART II - OTHER INFORMATION

ITEM 1.     Legal Proceedings.                                               28

ITEM 1A.    Risk Factors.                                                    31

ITEM 2.     Unregistered Sales of Equity Securities and Use of Proceeds.     31

ITEM 3.     Defaults upon Senior Securities.                                 31

ITEM 4.     Submission of Matters to a Vote of Security Holders.             31

ITEM 5.     Other Information.                                               31

ITEM 6.     Exhibits.                                                        31

SIGNATURES                                                                   32



                                       2
<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                         APRIL 30,          OCTOBER 31,
                                                                                           2007                2006
                                                                                      -----------------------------------------
                                                                                        (Unaudited)   (Derived from audited
ASSETS                                                                                                 financial statements)
<S>                                                                                    <C>                 <C>
CURRENT ASSETS:
  Cash and cash equivalents                                                            $  2,983,885        $  2,393,437
  Accounts receivable, net                                                                2,944,078           2,037,860
  Other receivables                                                                         510,813             509,241
  Inventory                                                                               2,145,105           2,376,480
  Prepaid expenses                                                                          739,325             413,429
                                                                                       ------------        ------------

                 Total Current Assets                                                     9,323,206           7,730,447
                                                                                       ------------        ------------

PROPERTY - Net of accumulated depreciation of $305,487
  and $163,303, respectively                                                              2,186,620           1,642,282
                                                                                       ------------        ------------

OTHER ASSETS:
  Deposits                                                                                  337,548             379,622
  Goodwill                                                                               11,447,698          11,447,698
  Deferred financing and Warrant fees                                                     3,183,276           1,967,937
  Intangible assets  - net of accumulated amortization of
      $500,614 and $343,113, respectively                                                15,633,970          15,714,664
                                                                                       ------------        ------------

                 Total Other Assets                                                      30,602,492          29,509,921
                                                                                       ------------        ------------

TOTAL ASSETS                                                                           $ 42,112,318        $ 38,882,650
                                                                                       ============        ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                                                     $  3,860,523        $  3,226,664
  Accrued expenses                                                                        3,138,927           1,970,277
  Current portion of note payable - others                                                1,500,000                  --
  Current portion of note payable - bank                                                    750,000           1,000,000
  Current portion of note payable - seller                                                1,075,000           1,000,000
  Notes payable - shareholders and others                                                   100,000             180,929
  Convertible bridge notes                                                                4,321,014           3,906,118
  Current portion of capital lease obligation                                                52,202              71,227
  Accrued interest                                                                        3,382,149           1,735,174
                                                                                       ------------        ------------

                 Total current liabilities                                               18,179,815          13,090,389
                                                                                       ------------        ------------

LONG-TERM LIABILITIES:
  Deferred revenue                                                                          847,335             980,363
  Note payable - bank, net of current maturities                                          9,250,000           9,500,000
  Note payable - seller, net of current maturities                                        2,000,000           2,000,000
  Capital lease obligations - net of current portion                                        147,015             208,411
                                                                                       ------------        ------------

                 Total Liabilities                                                       30,424,165          25,779,163
                                                                                       ------------        ------------

STOCKHOLDERS' EQUITY:
   Preferred stock - $.001 par value - authorized, 5,000,000 shares; 591,850 and
      591,850 issued and outstanding, respectively
      (liquidation preference of $798,998)                                                  798,998             798,998
   Common stock - $.001 par value - authorized, 45,000,000 shares;
      29,614,630 and 26,044,630 issued and outstanding, respectively                         29,594              26,044
   Additional paid-in capital                                                            68,536,494          61,876,506
   Warrants                                                                               5,206,797           4,139,972
   Accumulated deficit                                                                  (62,548,930)        (53,403,233)
                                                                                       ------------        ------------
                                                                                         12,022,953          13,438,287
Subscription receivable                                                                    (150,000)           (150,000)
Common Stock in Treasury                                                                   (184,800)           (184,800)
                                                                                       ------------        ------------
                 Total stockholders' equity                                              11,688,153          13,103,487
                                                                                       ------------        ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                             $ 42,112,318        $ 38,882,650
                                                                                       ============        ============
</TABLE>


See notes to the condensed consolidated financial statements.


                                       3
<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED                       SIX MONTHS ENDED
                                                              -------------------------------       -------------------------------
                                                                APRIL 30           APRIL 30           APRIL 30           APRIL 30
                                                                  2007               2006               2007               2006
                                                              ------------       ------------       ------------       ------------
<S>                                                           <C>                <C>                <C>                <C>
REVENUES, net                                                 $  5,713,761       $        475       $ 11,257,660       $      2,115

COST OF REVENUES                                                 4,121,421                 79          8,183,525                335
                                                              ------------       ------------       ------------       ------------

                  GROSS PROFIT                                   1,592,340                396          3,074,135              1,780
                                                              ------------       ------------       ------------       ------------

OPERATING EXPENSES
  Research and development                                         278,363            163,639            533,363            324,487
  Selling, general, and administrative                           6,460,217            638,619          8,138,829          1,381,450
                                                              ------------       ------------       ------------       ------------
                  Total expenses                                 6,738,580            802,258          8,672,192          1,705,937
                                                              ------------       ------------       ------------       ------------

                  LOSS FROM OPERATIONS                          (5,146,240)          (801,862)        (5,598,057)        (1,704,157)
                                                              ------------       ------------       ------------       ------------

OTHER INCOME (EXPENSES):
   Other income                                                      2,047             30,000              4,315            140,000
   Interest expense, net                                        (1,628,108)          (517,078)        (3,551,956)          (844,853)
                                                              ------------       ------------       ------------       ------------

                  Total other (expenses) income                 (1,626,061)          (487,078)        (3,547,641)          (704,853)
                                                              ------------       ------------       ------------       ------------

LOSS BEFORE PROVISION FOR
     INCOME TAX                                                 (6,772,301)        (1,288,940)        (9,145,698)        (2,409,010)

PROVISION FOR INCOME TAXES                                              --                 --                 --                 --
                                                              ------------       ------------       ------------       ------------

LOSS FROM CONTINUING OPERATIONS                                 (6,772,301)        (1,288,940)        (9,145,698)        (2,409,010)
LOSS FROM DISCONTINUED OPERATIONS
   Equity in the loss in InCon Processing, LLC                          --           (963,685)                --         (1,042,119)
                                                              ------------       ------------       ------------       ------------

NET LOSS                                                      $ (6,772,301)      $ (2,252,625)      $ (9,145,698)      $ (3,451,129)
                                                              ============       ============       ============       ============

BASIC AND DILUTED NET LOSS PER COMMON SHARE
   FROM CONTINUING OPERATIONS                                 $      (0.26)      $      (0.06)      $      (0.34)      $      (0.11)
   FROM DISCONTINUED OPERATIONS                                         --              (0.04)                --              (0.05)
                                                              ------------       ------------       ------------       ------------

NET LOSS PER SHARE                                            $      (0.26)      $      (0.10)      $      (0.34)      $      (0.16)
                                                              ============       ============       ============       ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING                                                     26,533,267         22,681,725         27,004,765         22,681,725
                                                              ============       ============       ============       ============
</TABLE>

See notes to the condensed consolidated financial statements.


                                       4
<PAGE>

SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                        SIX MONTHS END APRIL 30,
                                                                                                      2007                  2006
                                                                                                   ---------------------------------
<S>                                                                                                <C>                  <C>
OPERATING ACTIVITIES:
Loss from continuing operations                                                                    $(9,145,697)         $(2,409,010)
Adjustments to reconcile net loss to net cash used in operating activities:
  Depreciation and amortization                                                                        222,839               17,473
  Stock based compensation                                                                           4,255,053                   --
  Amortization of bridge loan discount                                                                 771,047              553,651
  Amortization of deferred financing costs                                                             572,891                   --
  Changes in operating assets and liabilities:
      Accounts receivable                                                                           (1,417,031)                  --
      Inventory                                                                                        231,375                  342
      Prepaids and other current assets                                                                183,345                2,225
      Deposits                                                                                          42,074                   --
      Accounts payable                                                                                 633,859              236,856
      Accrued expenses                                                                               1,220,852               65,477
      Accrued interest                                                                               1,646,975                   --
      Deferred revenues                                                                               (133,028)                  --
                                                                                                   -----------          -----------
Net cash used in operating activities                                                                 (915,446)          (1,532,986)
                                                                                                   -----------          -----------

INVESTING ACTIVITIES:
 Purchases of equipment                                                                               (686,483)             (46,412)
 Acquisition activities and Deferred fees                                                                   --             (108,472)
                                                                                                   -----------          -----------
Net cash used in investing activities                                                                 (686,483)            (154,884)
                                                                                                   -----------          -----------

FINANCING ACTIVITIES:
   Proceeds from issuance of common stock                                                            1,250,000                   --
   Payment of deferred financing fees                                                                       --             (250,853)
   Proceeds from Debt                                                                                1,575,000            3,000,000
   Repayment of Debt                                                                                  (500,000)             (45,648)
   Repayment of leases                                                                                (132,623)                  --
                                                                                                   -----------          -----------

Net cash provided by financing activities                                                            2,192,377            2,703,499
                                                                                                   -----------          -----------

NET CASH PROVIDED BY CONTINUING OPERATIONS                                                             590,448            1,015,629
NET CASH PROVIDED BY (USED IN) DISCONTINUED OPERATIONS                                                      --                   --
                                                                                                   -----------          -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                                              590,448            1,015,629

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                       2,393,437              128,819
                                                                                                   -----------          -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                                           $ 2,983,885          $ 1,144,448
                                                                                                   ===========          ===========

SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING
AND INVESTING ACTIVITIES:
  Settlement of debt through issuance of common stock                                              $   450,000          $         0
                                                                                                   ===========          ===========
</TABLE>

See notes to the condensed consolidated financial statements.


                                       5
<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note A -      BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

              The accompanying unaudited Condensed Consolidated Financial
              Statements of Synovics Pharmaceuticals, Inc. (the "Company") have
              been prepared in accordance with accounting principles generally
              accepted in the United States of America and with the instructions
              to Form 10-Q for interim financial information. Accordingly, they
              do not include all the information and footnotes required by
              accounting principles generally accepted in the United States of
              America for complete financial statements. In the opinion of
              management, all adjustments (which include normal recurring
              adjustments) necessary to present fairly the financial position,
              results of operations and cash flows for all periods presented
              have been made. The results of operations for the three month
              period and six month period ended April 30, 2007 and April 30,
              2006 are not necessarily indicative of the operating results that
              may be achieved for the entire year ending October 31, 2007. These
              unaudited condensed consolidated financial statements should be
              read in conjunction with the Company's financial statements and
              accompanying notes thereto as of and for the year ended October
              31, 2006. The accompanying condensed consolidated financial
              statements have been prepared on a going concern basis, which
              contemplates the realization of assets and the satisfaction of
              liabilities in the normal course of business. The Company has
              incurred accumulated operating losses of $62,548,930 through April
              30, 2007 which have been funded through the issuance of stock and
              debt. The losses incurred to date, the uncertainty regarding the
              ability to raise additional capital and the Company's inability to
              generate gross profits and positive cash flows from operations
              indicate that the Company may not be able to continue as a going
              concern for a reasonable period of time.


              PRINCIPLES OF CONSOLIDATION
              ---------------------------

              The condensed consolidated financial statements include the
              accounts of Synovics Pharmaceuticals, Inc. and its wholly owned
              subsidiaries, including, Kirk Pharmaceuticals, LLC, ANDAPharm,
              LLC and Synovics Laboratories, Inc. All significant inter-company
              transactions have been eliminated in consolidation.


                                       6
<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note A -      BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
              (CONTINUED)

              CONCENTRATIONS OF CREDIT RISK
              -----------------------------

              The Company places its cash balances with high quality financial
              institutions. At times, such balances may be in the excess of the
              FDIC insurance limit. The Company has not experienced any losses
              on such accounts and management believes that there is little risk
              of loss.

              Accounts receivable are reported net of an allowance for doubtful
              accounts. The allowance is based on management's estimate of the
              amount of receivables that will be actually collected. Management
              performs on-going credit evaluations of its customers and provides
              an allowance based on credit history and worthiness of its
              customers. Receivables are written off when deemed uncollectible.

              REVENUE RECOGNITION
              -------------------

              The Company recognizes revenue upon shipment of product.

              INVENTORY
              ---------

              Inventories are stated at the lower of cost (first-in, first-out
              method) or market.

Note B -      NET LOSS PER COMMON SHARE

              Basic net loss per share is computed by dividing the net loss by
              the weighted average number of common shares outstanding during
              the presented periods. Diluted net loss per share has not been
              presented as it was anti-dilutive. Options and warrants are
              excluded from the diluted net loss per share calculation, as they
              are anti-dilutive.

Note C -      TECHNOLOGY LICENSE AGREEMENT AND ANDA AGREEMENT

              The Technology License Agreement (the "Technology Agreement")
              dated March 16, 2005 entered into with Nostrum Pharmaceuticals,
              Inc. ("Nostrum") and the Company, replaced in its entirety the
              Product Development and License Agreement dated as of June 16,
              2004. Under the Technology Agreement, as amended, the Company
              received an exclusive license under Nostrum's oral controlled
              release proprietary technology to develop and commercialize ten
              505(b)(2) products


                                       7
<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note C -      TECHNOLOGY LICENSE AGREEMENT AND ANDA AGREEMENT (CONTINUED)

              (brandable pharmaceutical products that qualify for filing with
              the United States Food and Drug Administration (the "FDA") under a
              "505(b)(2)" application) and ten generic products (generic
              bio-equivalents of branded products which qualify for filing with
              the FDA pursuant to an Abbreviated New Drug Application)
              designated by the Company within a three year period. To date, the
              Company designated four drugs for development namely Alprazolam,
              Alfuzosin, Paroxetine and Metoprolol Succinate (formerly known as
              SNG1001a, SNG1002a, SNG1003a,b,c and SNG1004a,b,c., respectively).
              As consideration for the Technology Agreement, the Company issued
              twelve million shares of its common stock, and agreed to pay
              Nostrum royalties on net sales of generic products equal to 50% of
              gross profit. As of April 30, 2007, the Company paid $1,963,637 to
              Nostrum as remuneration for research and development costs
              associated with the licensed technology, as well as advanced to
              Nostrum $250,000 for future invoices associated with the licensed
              technology. As more fully described in Notes D and M below, the
              Company sued Nostrum in an arbitration action and, based upon
              allegations of Nostrum's misconduct, seeks a return of all or a
              substantial part of the cash and stock provided to Nostrum under
              the Technology Agreement.

              On May 17, 2006, the Company's subsidiary, Synovics Laboratories,
              Inc. ("Synovics Labs") entered into an ANDA Ownership Transfer and
              Product License Agreement with Nostrum (the "ANDA Agreement"). The
              ANDA Agreement transferred ownership to Synovics Labs of an
              Abbreviated New Drug Application to an AB rated, generic 500mg
              equivalent (Metformin ER) of the branded product Glucopophage-XR
              ("Metformin Drug") and additionally granted the Company an
              exclusive license under Nostrum's technology to develop, make and
              sell the Metformin Drug and an additional strength version of the
              Metformin Drug in the United States. In consideration for the
              grant of rights under the ANDA Agreement, the Company paid Nostrum
              a total of $300,000 in two payments of $150,000 each, one in
              May 2006 and one in August 2006. Synovics Labs is further
              required to reimburse Nostrum for expenses incurred by it under
              the ANDA Agreement and pay royalties of 20% of net sales of the
              Metformin Drug up to $1,500,000. As more fully described in
              Notes D and M below, the Company sued Nostrum in an arbitration
              action, and has obtained an injunction in Federal District Court
              in the Southern District of New York prohibiting Nostrum from
              terminating the ANDA Agreement with respect to Metformin products
              under the ANDA Agreement.


                                       8
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note C -      TECHNOLOGY LICENSE AGREEMENT AND ANDA AGREEMENT (CONTINUED)

              In July 2006, the Company announced that the FDA had approved the
              Company's Abbreviated New Drug Application for the Metformin Drug.
              The Company is in the process of taking steps to permit it to move
              forward with a manufacturing site transfer application with the
              FDA and plans to launch the sales program for the drug following
              approval.

Note D -      NOSTRUM DISPUTE

              The Company is currently involved in a legal dispute with Nostrum
              over Nostrum's purported termination of certain drugs covered by
              the Technology Agreement and the ANDA Agreement.

              On November 20, 2006, the Company obtained a temporary restraining
              order from the United States District Court for the Southern
              District of New York enjoining Nostrum from terminating the
              Technology Agreement and on December 6, 2006, the Court further
              extended the order preliminarily enjoining Nostrum from
              terminating the Technology Agreement until January 31, 2007 but
              with respect to the four products designated by the Company. The
              Company posted a $100,000 bond in connection with the grant of
              injunctive relief.

              On February 20, 2007, the above injunction was extended until
              April 30, 2007 and Nostrum was further enjoined from terminating
              the ANDA Agreement until April 30, 2007; the foregoing conditioned
              upon the Company increasing its previously posted bond to
              $500,000, which it subsequently posted.

              On December 4, 2006, the Company commenced arbitration proceedings
              against Nostrum with the American Arbitration Association
              challenging the purported terminations.


                                       9
<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note D -      NOSTRUM DISPUTE (CONTINUED)

              On March 2, 2007, the Company commenced a separate action in the
              United States District Court for the District of New Jersey
              against Nirmal Mulye ("Mulye"), Anil Anand ("Anand") and Nostrum.
              Mulye is a former member of the Board of Directors of the Company
              (the "Board") and former Chief Scientific Officer. As part of the
              lawsuit, the Company alleges that Mulye introduced Anand to the
              Company without disclosing the background of Anand, a confessed
              felon in a $700 million bank fraud. In the action, the Company
              alleges, among other things, that (i) Mulye breached fiduciary
              duties and usurped corporate opportunities as a member of the
              Board and Chief Scientific Officer and that Anand and Nostrum
              aided and abetted Mulye in such actions, (ii) Mulye, Anand and
              Nostrum tortiously interfered with prospective contractual
              relationships of the Company, (iii) Mulye fraudulently induced the
              Company to enter into certain financial transactions, and (iv)
              Mulye, Anand and Nostrum conspired to breach fiduciary duties and
              steal valuable corporate opportunities. The Company has requested
              a jury trial and seeks compensatory and punitive damages and a
              constructive trust over corporate opportunities usurped from the
              Company. A trial date has not yet been scheduled in the action.

Note E -      2005 BRIDGE NOTE FINANCING

              In October 2005, the Company began issuing convertible bridge
              notes ("2005 Bridge Notes") and issued notes in the aggregate
              principal amount of $4,845,000. The 2005 Bridge Notes bear
              interest at 9% per annum and are convertible at $3.00 per share at
              the option of the holder. In the case of default, interest on the
              2005 Bridge Notes increases to 18% per annum retroactively to the
              date of the note on the unpaid principal. The 2005 Bridge Notes
              initially had a maturity date of 18 months from the date of
              issuance. The 2005 Bridge Notes also provided that if the Company
              consummates a "Qualified Equity Financing" prior to the eighteen
              (18) month anniversary of the issuance date, the maturity date
              would be extended to the third anniversary of the issuance date.
              In connection with the issuance of the 2005 Bridge Notes, the
              Company also issued detachable stock purchase warrants to purchase
              807,493 shares of common stock at $4.00 per share. The warrants
              expire three years from the date of issuance. Based on the
              relative fair values, the Company attributed $1,429,540 of the
              total proceeds to the warrants and recorded the warrants as
              additional paid-in capital and discount to the 2005 Bridge Notes.
              The resulting discount on the 2005 Bridge Notes is being amortized
              over the term of the 2005 Bridge Notes as interest expense. The
              per share weighted


                                       10
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note E -      2005 BRIDGE NOTE FINANCING (CONTINUED)

              value of the warrants to purchase 807,493 shares of common stock
              at $4.00 per share is $4.47. The warrants were valued using the
              Black-Scholes option pricing model with the following weighted
              average assumptions: no dividend yield; expected volatility of
              between 198% and 550%; risk free interest rate of 4.9%; and
              expected life of 3 years.

              In connection with the issuance of the 2005 Bridge Notes, the
              Company paid a cash commission of $301,050 to Indigo Securities,
              LLC and issued to it three year warrants to purchase 500,000
              shares of Common Stock at $5.00 per share and 75,263 at $4.00 per
              share for its role as placement agent of a portion of the 2005
              Bridge Notes sold. The per share weighted value of the warrants to
              purchase the combined total of 575,263 shares of common stock is
              $4.87. The warrants were valued using the Black-Scholes option
              pricing model with the following weighted average assumptions: no
              dividend yield; expected volatility of 198%; risk free interest
              rate of 4.9%; and expected life of 3 years.

              As a result of the consummation of the acquisition of Kirk
              Pharmaceuticals, LLC ("Kirk") and ANDAPharm LLC ("ANDAPharm")
              which was financed through Bank of India loans, and the $6,000,000
              equity investment by Maneesh Pharmaceuticals PVT LTD. ("Maneesh"),
              the Company may have been required to repay its outstanding 9%
              Convertible Bridge Notes. Accordingly, the Company determined the
              need to revise the terms of the 2005 Bridge Notes and solicited
              the consent of the holders of the 2005 Bridge Notes to convert
              their 2005 Bridge Notes into, and exchange their 2005 Bridge Notes
              for, an amended form of convertible note (the "Revised Notes")
              accruing interest at the rate of 9% per annum and convertible into
              shares of common stock at the conversion price of $2.50 per share.
              The Revised Notes mature on April 3, 2009 and constitute unsecured
              indebtedness of the Company. Of the $4,845,000 then outstanding,
              $2,150,000 aggregate principal amount converted to the Revised
              Notes. Of the remaining $2,695,000 aggregate principal amount of
              2005 Bridge Notes, $300,000 was repaid on July 6, 2006 and an
              aggregate principal amount of $2,395,000 and all accrued and
              unpaid interest thereon matured and became payable on
              September 1, 2006.


                                       11
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note E -      2005 BRIDGE NOTE FINANCING (CONTINUED)

              The Company did not pay any amounts due to the holders of 2005
              Bridge Notes on September 1, 2006 and requested that the holders
              agree to extend the maturity date to November 1, 2006. In
              exchange, the Company offered to increase the interest rate on the
              outstanding principal amount to 18% per annum for the period of
              such extension, as well as to reduce the exercise price of the
              warrants issued with the sale of the 2005 Bridge Notes to $2.50
              per share.

              The Company also did not pay back the principal to holders of the
              2005 Bridge Notes on November 1, 2006 and has not paid the accrued
              interest due to the holders of the Revised Notes and 2005 Bridge
              Notes.

              The Company is accruing the aforementioned 18% default interest
              retroactively to the date of issuance of the notes on the unpaid
              principal. As of April 30, 2007, the outstanding 2005 Bridge Notes
              and Revised Notes in the aggregate principal amount of $4,528,761
              have accrued interest of $881,761.

              On March 6, 2007, the Company concluded the renegotiation of the
              terms of one of the 2005 Bridge Notes in the principal amount of
              $100,000 with First Mirage, Inc. (the "First Mirage Note")
              according to which the maturity date of the First Mirage Note was
              extended to May 31, 2007 and the First Mirage Note became
              exchangeable in certain instances by both the Company and First
              Mirage for shares of common stock of the Company. As of April 30,
              2007, $36,360 of the First Mirage Note was exchanged for 50,000
              shares of the Company's common stock.

              The Company has entered into a registration rights agreement in
              connection with the sale of 2005 Bridge Notes. The agreement
              provides that the Company file a registration statement with the
              SEC that covers the resale of 125% of the registrable securities
              (the shares issuable upon conversion at the initial current
              conversion price and upon exercise of related warrants at the
              initial exercise price) (the "Mandatory Registration Statement").


                                       12
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note E -      2005 BRIDGE NOTE FINANCING (CONTINUED)

              According to the registration rights agreement, if the Mandatory
              Registration Statement has not been declared or ordered effective
              within one hundred twenty (120) days after the closing of the
              offering, the Company is to pay each investor a fee equal to 1% of
              the purchase price paid by such investor for the securities
              purchased plus the aggregate exercise price of the warrants and
              the placement agent warrants for the first two thirty (30) day
              periods after such failure and 2.5% of such amount for each
              subsequent thirty (30) day period (pro rata, in each case, for
              partial months). Any such payments are to be made at the end of
              each calendar month until the date that the Mandatory Registration
              Statement is declared effective. There is no cap on the maximum
              amount of the penalties that could be payable under the agreement.
              The Company will recognize the penalties, if any, incurred under
              the registration rights agreement as interest expense in the
              period in which they are incurred.

              Although the Company filed a Manadatory Registration Statement,
              the Company failed to have the Mandatory Registration Statement
              declared effective and recognized $2,050,795 of penalties as of
              April 30, 2007, which are reflected as interest expense.

Note F -      ACQUISITION OF INTANGIBLE ASSET

              The Company's wholly-owned subsidiary ANDAPharm paid $790,520 to
              Lehigh Valley Technologies and assumed costs of $131,099 to
              acquire the right to license, make and sell the generic form of
              certain estrogen products. The transaction was effectuated on May
              14, 2006. The intangible asset is being amortized over its useful
              life of 5 years and has a net book value of $844,812 as of April
              30, 2007.

Note G -      2006 BRIDGE NOTE FINANCING

              Between October and December 2006, the Company's subsidiary, Kirk,
              issued to accredited investors short term bridge notes in the
              principal amount of $700,000, bearing interest ranging from 10% to
              20% per annum In connection therewith the Company issued warrants
              to acquire an aggregate of 466,664 shares of its common stock at
              initial exercise prices of between $2.00 and $3.00 per share
              (subject to adjustment in certain circumstances) with exercise
              periods ranging from three to five years. Of the warrants issued,
              warrants to acquire 75,000 shares of the Company's common stock
              are exercisable on a cashless or net issuance basis. Of the notes
              issued, accrued and unpaid interest at maturity date of a note in
              the principal amount of $250,000 is convertible into 50,000 shares
              of common stock of the Company. Notes in the principal amount of
              $450,000 were


                                       13
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note G -      2006 BRIDGE NOTE FINANCING (CONTINUED)

              subsequently exchanged for units of the 2007 Private Placement (as
              discussed in Note H below). The per share weighted value of the
              warrants to purchase 466,664 shares of common stock at initial
              exercise prices of between $2.00 and $3.00 per share was between
              $1.50 and $1.77. The warrants were valued using the Black-Scholes
              option pricing model with the following weighted average
              assumptions: no dividend yield; expected volatility between 215%
              and 225%; risk free interest rate between 4.5% and 4.84%; and
              expected life of between 3 and 5 years.

Note H -      2007 PRIVATE PLACEMENT

              During January and February 2007, the Company completed closings
              of a private placement ("2007 Private Placement"), whereby the
              Company sold an aggregate of 1,500,000 units ("Units") to
              accredited investors. Of the 1,500,000 Units sold, 450,000 Units
              were exchanged in lieu of repayment of notes issued in the 2006
              Bridge Note Financing in the principal amount of $450,000.

              The price per Unit was $1.00 and each Unit consisted of (i) one
              share of common stock of the Company, par value $0.001 per share
              (the "Common Stock"); and (ii) a warrant to purchase, at any time
              prior to the third anniversary following the final closing of the
              Private Placement, one share of Common Stock at an exercise price
              of $3.00 per share, subject to adjustment in certain instances.
              The warrants are also redeemable by the Company where the exercise
              price exceeds a certain amount. The per share weighted value of
              the warrants to purchase 1,500,000 shares of common stock at $3.00
              per share was between $0.98 and $1.32. The warrants were valued
              using the Black-Scholes option pricing model with the following
              weighted average assumptions: no dividend yield; expected
              volatility between 153% and 155%; risk free interest rate of
              between 4.63% and 4.9%; and expected life of 3 years.

              The subscription agreement requires the Company to file a
              registration statement, covering the securities sold in the 2007
              Private Placement within 30 days of final closing of the 2007
              Private Placement and use its best efforts to cause the
              registration statement to become effective within 90 days of final
              closing. If the registration statement has not been declared
              effective within 150 days following final closing, the Company has
              agreed to pay to the investors liquidated damages, payable in cash
              or common stock, of 1.5% of the purchase price paid by the
              investor in the 2007 Private Placement and 1% of the purchase
              price paid by the investor in the


                                       14
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note H -      2007 PRIVATE PLACEMENT (CONTINUED)

              2007 Private Placement for each subsequent 30 day period, with the
              total of the foregoing capped at 9%.

Note I -      CONSULTING AGREEMENTS

              On February 1, 2007, the Company entered into consulting
              agreements with each of Saggi Capital Corp. and Bridge Ventures,
              Inc. (each, a "Consultant") for the provision of consulting
              services (including investor relations and strategic consulting)
              by the Consultants. Under the consulting agreements, each
              Consultant is entitled to receive $5,000 per month during the term
              of the agreement and five-year warrants to acquire 200,000 shares
              of the Company's common stock, par value $0.001 per share, at an
              exercise price of $2.00 per share, subject to adjustment in
              certain circumstances, or on a cashless or net issuance basis. The
              per share weighted value of the warrants to purchase 400,000
              shares of common stock at $2.00 per share is $1.37. The warrants
              were valued using the Black-Scholes option pricing model with the
              following weighted average assumptions: no dividend yield;
              expected volatility of 153%; risk free interest rate of 4.84%; and
              expected life of 5 years.

Note J -      VCG AGREEMENT

              On February 1, 2007, the Company entered into a consulting
              agreement (the "VCG Agreement") with VCG & A, Inc. ("VCG") for the
              provision of consulting services by VCG that include assisting the
              Company in its capital raising efforts, the development of an
              overall business strategy and the purchase of an over the counter
              generic version of Omeprazole (the "Target Product") as well as to
              assist the Company in ongoing management, sales and marketing
              support. Under the VCG Agreement, the Company agreed to pay VCG
              cash fees and royalties based upon the net sales of the Target
              Product. In addition, VCG is entitled to receive stock options to
              purchase 300,000 shares of the Company's common stock, par value
              $0.001 per share, at an exercise price of $1.40. The stock options
              vested immediately upon execution of the VCG Agreement. The per
              share weighted value of the options to purchase 300,000 shares of
              common stock at $1.40 per share is $1.39. The options were valued
              using the Black-Scholes option pricing model with the following
              weighted average assumptions: no dividend yield; expected
              volatility of 153%; risk free interest rate of 4.84%; and expected
              life of 5 years.


                                       15
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note K -      STRATEGIC ALLIANCE

              On April 20, 2007, the Company entered into a strategic alliance
              with Harcharan Singh ("Singh"). In connection with this strategic
              alliance, the Company and its subsidiary, Kirk, entered into a
              Consulting Agreement with Singh (the "Consulting Agreement") and
              Kirk issued to 2133820 Ontario, Inc., an affiliate of Singh, a
              note in the principal amount of $1,250,000 (the "Singh Note") in
              exchange for cash equal to such principal amount.

              During the term of the Consulting Agreement, Singh is being
              retained to provide strategic consulting services to the Company
              and will participate as an observer of the Company's board
              meetings. In consideration for these services, Singh is to receive
              a $10,000 monthly retainer commencing May 31, 2007, was issued
              2,000,000 shares of the Company's common stock and warrants to
              purchase a further 1,000,000 shares of the Company's common stock.
              In addition, if the Company achieves annual earnings before
              interest, taxes, depreciation and amortization (EBITA) of at least
              $20,000,000, then Singh will be entitled to a further grant of
              1,000,000 shares of Company's common stock and warrants to
              purchase 500,000 shares of the Company's common stock. The
              warrants are exercisable for a period of seven years from the date
              of grant at an initial exercise price of $2.00, subject to
              adjustment in certain circumstances, and contain a cashless or net
              issuance component. The per share weighted value of the warrants
              to purchase 1,000,000 shares of common stock at $2.00 is $1.19 The
              warrants were valued using the Black-Scholes option pricing model
              with the following weighted average assumptions: no dividend
              yield; expected volatility of 133%; risk free interest rate of
              4.62% and expected life of 7 years.

              The Note, issued in conjunction with the Consulting Agreement,
              bears interest of 15% per annum with interest payments payable
              monthly commencing May 1, 2007 and matures on September 12, 2007.
              The Note is exchangeable into equity of the Company under certain
              circumstances.

Note L -      PRESIDENT AND COO EMPLOYMENT AGREEMENT

              On April 18, 2007, the Company entered into an employment
              agreement with David Coffin-Beach, Ph.D. as the Company's
              President and Chief Operating Officer.


                                       16
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note L -      PRESIDENT AND COO EMPLOYMENT AGREEMENT (CONTINUED)

              According to Coffin-Beach's employment agreement, Mr.
              Coffin-Beach's employment with the Company is for a three year
              term ending April 18, 2010 and may be automatically renewed for
              additional one year periods. Mr. Coffin-Beach is entitled to a
              base salary of $300,000 per annum and a discretionary year end
              bonus payable in cash and/or shares of the Company's common stock.
              In addition, Mr. Coffin-Beach was granted options to acquire an
              aggregate of 1,500,000 shares of the Company's common stock
              exercisable for seven years at an initial exercise price of $2.00
              per share and vesting annually in three equal installments, with
              the first installment vesting on April 18, 2008. The per share
              weighted value of the options to purchase 1,500,000 shares of
              common stock at $2.00 is $1.19 The options were valued using the
              Black-Scholes option pricing model with the following weighted
              average assumptions: no dividend yield; expected volatility of
              133%; risk free interest rate of 4.62%; and expected life of 7
              years.

              The Company may also in its discretion grant Mr. Coffin-Beach
              options pursuant to any eligible equity compensation plan.

              If the Company terminates Mr. Coffin-Beach's employment without
              cause, Mr. Coffin-Beach's death or Mr. Coffin Beach terminates his
              employment for good reasons including a change of control event,
              Mr. Coffin-Beach shall be entitled to the following severance:
              (i) Mr. Coffin-Beach's current base salary for one year plus any
              accrued bonus prior to termination; and (ii) any earned but unpaid
              base salary plus any unpaid reimbursable expenses through the date
              of termination of his employment. In the event that the Company
              terminates Mr. Coffin-Beach's employment for cause or Mr.
              Coffin-Beach terminates his employment with the Company without
              good reason, Mr. Coffin-Beach shall be entitled to any earned but
              unpaid base salary plus any unpaid reimbursable expenses through
              the date of termination of his employment.


                                       17
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note M -      SUBSEQUENT EVENTS

              NOSTRUM DISPUTE
              ---------------

              On May 31, 2007, the United States District Court for the Southern
              District of New York modified its previously issued preliminary
              injunction and extended it to April 26, 2008 unless, prior to that
              date, an award issues in the arbitration entitled Synovics
              Pharmaceuticals, Inc. et al. v. Nostrum Pharmaceuticals, Inc. (the
              "Arbitration Matter") currently pending before the American
              Arbitration Association, in which event the Court will entertain
              requests to extend the injunction pending any appeal from any such
              award. The injunction applies to Metformin Extended Release
              formulations. While the Arbitration Matter is pending the Company
              is free to continue to prosecute the continued development of
              Metformin, to file with the FDA an application for a site transfer
              for the manufacture of the approved 500 mg extended release
              version, and to decide whether to file an Abbreviated New Drug
              Application (ANDA) for a 750 mg extended release version of the
              drug. The Court Order requires certain progress reporting
              conditions of the Company.

              As requested by the Company, the injunction was modified to
              terminate its application to Alprazolam, Alfuzosin, Paroxetine and
              Metoprolol Succinate. The modification is consistent with the
              Company's position in the Arbitration Matter that the Technology
              Agreement, under which rights to an exclusive license for these
              and other potential products were provided by Nostrum, should be
              invalidated and all shares of stock purchased by Nostrum and all
              monies paid under the agreement should be returned to the Company
              in light of the underlying facts and Nostrum's misconduct. The
              hearing in the Arbitration Matter is scheduled to begin on January
              21, 2008 before a three-judge arbitration panel.

              ASIA PACIFIC LAWSUIT
              --------------------

              On May 11, 2007, the Company received a summons by Asia Pacific
              Investment Holdings Limited ("Asia Pacific") and a Notice of
              Motion seeking an order from the Supreme Court of the State of New
              York, County of New York granting summary judgment arising from a
              default by the Company of a Convertible Promissory Note dated
              April 17, 2006 in the principal amount of $1,500,000. The
              affidavit which accompanied the Notice stated that the maturity
              date of the Note has been accelerated as a result of the failure
              to pay required quarterly installments of interest and that
              accrued but unpaid interest as of May 4, 2007 was $265,300.


                                       18
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note M -      SUBSEQUENT EVENTS (CONTINUED)

              CEO EMPLOYMENT AGREEMENT
              ------------------------

              On May 17, 2007, the Company executed an Employment Agreement
              dated as of January 30, 2007 (the "Lane Employment Agreement")
              with Ronald H. Lane ("Lane"), its Chief Executive Officer,
              providing for Lane to serve as the Company's Chief Executive
              Officer through January 30, 2010, renewable for an additional one
              year unless either the Company or Lane provides written notice of
              termination at least 60 days prior to the end of the term.

              According to the Lane Employment Agreement, Lane is to receive an
              annual base salary of $400,000 and, solely at the discretion of
              the Board, based on his performance and the Company's financial
              condition and operating results, a bonus payable in cash or shares
              of the Company's common stock. The Lane Employment Agreement
              further provides that the Board may grant him options under any
              equity compensation plan in which he is eligible to participate.
              The Lane Employment Agreement provides that the Company owes Lane
              an amount to be mutually agreed by them (the "Deferred
              Obligation").

              The Lane Employment Agreement provides that if Lane's employment
              by the Company is terminated without cause, by his death, or by
              Lane for good reason which includes a change of control, Lane will
              be entitled in addition to unpaid salary through the date of
              termination, payment of the Deferred Obligation and a severance
              amount of all or a portion (not less than one-half) of his base
              salary for one year based on the number of completed years of
              service under the Lane Employment Agreement.

              OMEPRAZOLE LICENSE
              ------------------

              On May 1, 2007, the Company's subsidiary, Synovics Laboratories,
              Inc ("Synovics Labs") entered into a License and Supply Agreement
              dated as of April 11, 2007 with Fluid Air Inc. doing business as
              PharmPro ("FAI") for the development and commercialization of the
              over the counter generic version of Omeprazole (the "License
              Agreement"). According to the License Agreement, FAI granted
              Synovics Labs, under FAI's patent rights, an exclusive worldwide
              license to develop, commercialize and sublicense capsules
              containing the generic version of over the counter Omeprazole (the
              "Drug Product"). FAI will be responsible for developing the Drug
              Product in accordance with the Drug Product development plan


                                       19
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note M -      SUBSEQUENT EVENTS (CONTINUED)

              while Synovics Labs will be responsible for research and
              development activities and will file in registrant's name, the
              appropriate regulatory filings with FAI being responsible for the
              chemistry, manufacturing and controls review portion of such
              filings. Once developed and necessary regulatory approvals have
              been obtained, Synovics Labs will be responsible for promoting,
              marketing and distributing the Drug Product supplied exclusively
              by FAI.

              As partial consideration for the rights granted, Synovics Labs
              paid FAI a license fee of $500,000 with further payments due upon
              the completion of certain milestones. Commencing upon the first
              commercial sale of the Drug Product, the registrant is also
              required to pay to FAI royalties on the net product sales of the
              Drug Product until the later of (i) the expiration of the last to
              expire FAI patent rights covering the Drug Product; and (ii) ten
              years from the first commercial sale of the Drug Product. Unless
              terminated sooner for cause, the License Agreement will expire on
              a country by country basis on the expiration of Synovics Labs'
              obligation to make royalty payments with respect to such country.


                                       20
<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.

ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
              RESULTS OF OPERATIONS

        The following discussion and analysis should be read in conjunction with
the Condensed Consolidated Financial Statements, the related Notes to
Consolidated Financial Statements and Management's Discussion and Analysis of
Financial Condition and Results of Operations included in the Company's Annual
Report on Form 10-K for the fiscal year ended October 31, 2006 (the "10-K") and
the Unaudited Condensed Consolidated Financial Statements and related Notes to
Condensed Consolidated Financial Statements included in Item 1 of Part I of this
Quarterly Report on Form 10-Q.

        The Company has included in this Quarterly Report certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 concerning the Company's business, operations and
financial condition. "Forward-looking statements" consist of all non-historical
information, and the analysis of historical information, including the
references in this Quarterly Report to future revenue growth, future expense
growth, future credit exposure, earnings before interest, taxes, depreciation
and amortization, future profitability, anticipated cash resources, anticipated
capital expenditures, capital requirements, and the Company's plans for future
periods. In addition, the words "could", "expects", "anticipates", "objective",
"plan", "may affect", "may depend", "believes", "estimates", "projects" and
similar words and phrases are also intended to identify such forward-looking
statements.

        Actual results could differ materially from those projected in the
Company's forward-looking statements due to numerous known and unknown risks and
uncertainties, including, among other things, unanticipated technological
difficulties, the volatile and competitive environment for drug delivery
products, changes in domestic and foreign economic, market and regulatory
conditions, the results of development agreements with pharmaceutical companies,
the inherent uncertainty of financial estimates and projections, the
uncertainties involved in certain legal proceedings, instabilities arising from
terrorist actions and responses thereto, and other considerations described as
"Risk Factors" in other filings by the Company with the SEC including its Annual
Report on Form 10-K. Such factors may also cause substantial volatility in the
market price of the Company's common stock. All such forward-looking statements
are current only as of the date on which such statements were made. The Company
does not undertake any obligation to publicly update any forward-looking
statement to reflect events or circumstances after the date on which any such
statement is made or to reflect the occurrence of unanticipated events.

BUSINESS OVERVIEW

        Synovics Pharmaceuticals, Inc. is a specialty pharmaceutical company
with three operating subsidiaries, Synovics Labs, Kirk and ANDAPharm.


                                       21
<PAGE>

        Until recently, the Company's principal focus was on the development of
oral controlled-release drug formulations utilizing proprietary drug
formulations and delivery technologies under license from Nostrum.

        During the course of the previous twelve months, this focus has
gradually shifted as a result of the combination of three main developments.
First, the Company's evolving dispute with Nostrum which began towards the end
of 2006, has, among other things, become a drain on the Company's resources.
Second, in May 2006, the Company acquired Kirk and ANDAPharm which develop,
market and sell private label Over-the-Counter ("OTC") and generic prescription
drugs. This immediately transformed the Company from a pharmaceutical product
development company to a fully operational developer, manufacturer and marketer
of approximately 30 drug products and with a staff of over one hundred
employees. Third, most recently in April, 2007, the Company established a
strategic alliance with Harcharan Singh, an industry veteran with a proven track
record, which is principally designed to assist the Company in sourcing low cost
active pharmaceutical ingredients and finished products in India and provide
access to drug candidates developed in India and China.

        As a result of the confluence of these events, the Company is actively
pursuing four principal objectives:

        o       the continuation in the increasing of Kirk's operating
                efficiencies;

        o       the implementation of an India "front end" strategy of sourcing
                low cost active pharmaceutical ingredients and finished products
                from India as well as the accessing of FDA approved ANDA's from
                Indian pharmaceutical companies that do not have a U.S.
                presence, the goal being to produce high margin products with
                shorter time-to-market spans;

        o       the hiring of new management to support and implement the
                Company's growth strategy; and

        o       the identification and development of new product candidates
                through ANDAPharm and Synovics Labs.

        During the Company's fiscal quarter ended April 30, 2007, the Company
began to see the initial of the realization of these objectives. The Company has
seen the start of acceleration in the monthly revenue and positive cash flow of
Kirk. The Company strategically aligned itself with Harcharan Singh to implement
the India "front end strategy", the Company hired industry veteran, David
Coffin-Beach, Ph.D., as its new President and Chief Operating Officer, the
Company entered into a binding letter of intent for the development and
commercialization of an OTC generic version of Omeprazole, the Company continued
its ongoing process of formalizing Kirk and ANDAPharm's operational procedures
and the Company entered into a consulting agreement with VCG&A, Inc., to provide
it with relationship driven market access to enhance Kirk and ANDAPharm's
product penetration and sales.

        Nevertheless, the Company has a working capital deficiency and requires
capital to sustain its operations and the Company anticipates an ongoing period
of losses and negative cash flows while the Nostrum dispute persists, interest
continues to accrue on the Company's


                                       22
<PAGE>

indebtedness, penalties continue to accrue for failure of the Company's
registration statement to go effective and expenses attributed to warrants
continue to grow.

        Accordingly, future operating results will depend largely on the
Company's ability to achieve the following:

        o       debt and equity financing to support the Company's immediate
                cash flow needs, including the servicing of its debt;

        o       successful implementation of improvements and method changes in
                the operations at Kirk to increase output and revenues;

        o       successful implementation of the India "front end" product
                acquisition and marketing strategy to increase revenues and
                improve margins;

        o       successful resolution of the Company's dispute with Nostrum and
                related parties, including the recent Asia Pacific lawsuit;

        o       successful development and testing of product candidates and
                receipt and maintenance of required regulatory approvals; and

        o       continued attraction of high quality industry professionals.


RESULTS OF OPERATIONS

THREE MONTHS ENDED APRIL 30, 2007 COMPARED WITH THREE MONTHS ENDED APRIL 30,
2006.

        Consolidated gross revenues for the quarter ended April 30, 2007 were
$5,713,761 compared to $475 for the same quarter in 2006. This increase in
revenue represents sales from the Company's subsidiaries, Kirk and ANDAPharm
which were acquired in May 2006. Kirk's four largest customers represented
approximately 68% of the sales for the period. Although the Company believes
Kirk has good working relationships with each of these customers, Kirk is
working to further relationships with these and other entities in order to
broaden its sales base.

        Sales of products containing pseudoephedrine, ephedrine and/or
guaifenesen accounted for approximately 72% of sales. These products have come
under increasing government regulation due to the concern of these products in
the production of methamphetamine.

        Cost of revenues for the three month period ended April 30, 2007 was
$4,121,421 compared to $79 for the three month period ended January 31, 2006.
This increase in cost of revenue represents the costs associated with the sales
from OTC products of Kirk and from the generic prescription drug product of
ANDAPharm.

        Research and development expenses for the three month period ended April
30, 2007 was $278,363 compared to $163,639 for the three month period ended
April 30, 2006. This increase is due primarily to research and development
activities at Kirk and ANDAPharm. The research and development expenses are in
line with historical norms


                                       23
<PAGE>

of Kirk and ANDAPharm, and contain no significant, unusual expenses. Research
and development expense consists of direct costs which include salaries and
related costs of research and development personnel, and the costs of
consultants, materials and supplies associated with research and development
projects, as well as clinical studies. Indirect research and development costs
include facilities, depreciation, and other indirect overhead costs.

        Selling, general, and administrative expenses for the three month period
ended April 30, 2007 was $6,460,217 as compared to $638,619 for the three month
period ended April 30, 2006. This increase is due primarily to operating
activities associated with Kirk and ANDAPharm and an increase in salaries,
consulting, travel, accounting and legal expenses. The operating expenses are in
line with historical norms of Kirk and ANDAPharm, and contain no significant,
unusual expenses.

        The net loss of $6,772,301, or $.26 per share, for the three month
period ended April 30, 2007 as compared to $2,252,625 or $.10 per share for the
three month period ended April 30, 2006 was due primarily to cash to support
operations, interest accruing on the Company's indebtedness, penalties accruing
for failure of its registration statement to become effective, expenses
attributed to warrants and mounting legal fees. The Company expects cumulative
losses to continue for the foreseeable future.

SIX MONTHS ENDED APRIL 30, 2007 COMPARED WITH SIX MONTHS ENDED APRIL 30, 2006.

        Consolidated gross revenues for the six months ended April 30, 2007 were
$11,257,660 compared to $2,115 for the same quarter in 2006. This increase in
revenue represents sales of the Company's subsidiaries, Kirk and ANDAPharm which
were acquired by the Company in May 2006. Kirk's four largest customers
represented approximately 66% of the sales for the period. Although the Company
believes Kirk has good working relationships with each of these customers, Kirk
is working to further relationships with these and other entities in order to
broaden its sales base.

        Sales of products containing pseudoephedrine, ephedrine and/or
guaifenesen accounted for approximately 71% of sales. These products have come
under increasing government regulation due to the concern of these products in
the production of methamphetamine.


                                       24
<PAGE>

        Cost of revenues for the six month period ended April 30, 2007 was
$8,183,525 compared to $335 for the six month period ended April 31, 2006. This
increase in cost of revenue represents the costs associated with the sales from
OTC products of Kirk and from the generic prescription drug products of
ANDAPharm.

        Research and development expenses for the six month period ended
April 30, 2007 was $533,363 compared to $324,487 for the six month period ended
April 30, 2006. This increase is due primarily to research and development
activities at Kirk and ANDAPharm. The research and development expenses are in
line with historical norms of Kirk and ANDAPharm, and contain no significant,
unusual expenses. Research and development expense consists of direct costs
which include salaries and related costs of research and development personnel,
and the costs of consultants, materials and supplies associated with research
and development projects, as well as clinical studies. Indirect research and
development costs include facilities, depreciation, and other indirect overhead
costs.

        Selling, general, and administrative expenses for the six month period
ended April 30, 2007 was $8,138,829 as compared to $1,381,450 for the six month
period ended April 30, 2006. This increase is due primarily to operating
activities associated with Kirk and ANDAPharm and an increase in salaries,
consulting, travel, accounting and legal expenses. The operating expenses are in
line with historical norms of Kirk and ANDAPharm, and contain no significant,
unusual expenses.

        The net loss of $9,145,698, or $.34 per share, for the six month period
ended April 30, 2007 as compared to $3,451,129 or $.16 per share for the six
month period ended April 30, 2006 was due primarily to cash to support
operations, interest accruing on the Company's indebtedness, penalties accruing
for failure of its registration statement to become effective, expenses
attributed to warrants and mounting legal fees. The Company expects cumulative
losses to continue for the foreseeable future.

LIQUIDITY AND CAPITAL RESOURCES

        To date, the Company's operations have not generated sufficient cash to
satisfy the Company's operating capital needs. The Company has financed its
operations primarily through the sale of its common stock, warrants and debt by
means of private placements. The Company had a working capital deficit of
$8,856,609 at April 30, 2007 as compared with a working capital deficit of
$5,359,942 at April 31, 2006. As of April 30, 2007 the Company had cash and cash
equivalents of $2,983,885 as compared with $1,144,448 at April 30, 2006.

        Net cash used in operating activities during the six month period ended
April 30, 2007 was ($915,446). This resulted from the Company's net loss of
$9,145,697 offset by non-cash charges for issuance of stock-based compensation
and interest expense. The Company has generally incurred negative cash flows
from operations since inception, which will continue due to the Company's short
term and long term debt obligations, need for working capital to sustain
operations, penalties accruing on its registration statement, expenses
attributed to warrants and mounting legal expenses.


                                       25
<PAGE>

        Net cash used in investing activities during the three month period
ended April 30, 2007 was ($688,483), primarily from the purchase of equipment.

        Net cash provided by financing activities during the six month period
ended April 30, 2007 was $2,192,377 which resulted from the net proceeds from
the issuance of notes and warrants in the 2006 Bridge Note Financing and the
sale of units of the Company's common stock and warrants in the 2007 Private
Placement.

        The Company did not enter into any material capital expenditure
agreements, nor did it engage in any off balance sheet financing during the
reporting period.

        The  Company's   auditors  have   expressed  in  their  audit  report  a
qualification  as to the Company's  ability to continue as a going concern.  See
Note A of the Notes to the Consolidated Financial Statements.

        The Company is currently delinquent in its obligation to bring current
principal and interest payments of certain notes issued in the 2005 Bridge Note
Financing and the 2006 Bridge Note Financing. One of the note holders, Asia
Pacific Investment Holdings Limited, has commenced a lawsuit against the Company
as more fully described below in Part II, Item I. The Company has undertaken a
capital raising effort to address this however there is no assurance that the
Company will be successful in this effort or that none of the other note holders
will file an action against the Company for default.

        All trends, demands, commitments, events and uncertainties resulting in
a material increase or decrease in liquidity have been reported. All internal
and external sources of liquidity have been identified, and all material
commitments of capital expenditures as of the end of the quarter have been
identified.

FUTURE CAPITAL REQUIREMENTS

        Based on the Company's current operating plan, the Company believes it
will have to increase its capital resources to meet its debt and penalty
obligations, mounting legal expenses from its dispute with Nostrum and Asia
Pacific and operating and product development plan through the fourth quarter of
2007. The Company plans to continue its efforts to raise financing through the
issuance of additional debt or equity financing. The Company can provide no
assurance that additional debt or equity funding will be obtained. The Company
also intends to further explore strategic alliances and licensing agreements
with other pharmaceutical companies to generate revenues, but can give no
assurance that any of these efforts will be successful or meet expectations.

ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

        The Company does not invest in or own any market risk sensitive
instruments entered into for trading purposes or for purposes other than trading
purposes. All loans to the Company have been made with fixed interest rates,
and, accordingly, the market risk to the Company prior to the maturity of those
instruments is minimal.


                                       26
<PAGE>

ITEM 4.       CONTROLS AND PROCEDURES.

        As of the end of the period covered by this report, the Company carried
out an evaluation, under the supervision of its Chief Executive Officer and
Chief Financial officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures as defined in Rules 13a-15(e) and
15d-15(e) of the Securities Exchange Act of 1934. Based upon that evaluation,
the Company's Chief Executive Officer and Chief Financial Officer concluded that
its disclosure controls and procedures were not effective to ensure that
information required to be disclosed by it in the reports filed or submitted
by it under the Exchange Act is accumulated, recorded, processed, summarized
and reported to management, including the Company's Chief Executive Officer and
Chief Financial Officer, as appropriate, and to allow timely decisions regarding
whether or not disclosure is required. The Company is taking steps to remedy
this deficiency through a combination of increased documentation, increasing
the accounting staff, engaging independent auditors to provide it with
accounting advice and implementing internal procedures including the
distribution of documents. These deficiencies are being reported to the Board
of Directors and the Company intends to improve and strengthen its controls
and procedures.


                                       27
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.       LEGAL PROCEEDINGS.

        NOSTRUM DISPUTE
        ---------------

        As previously reported in the Company's Current Reports on Form 8K dated
November 3, 2006, December 6, 2006, February 20, 2007 and May 31, 2007 and the
Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2007,
the Company is involved in a legal dispute with Nostrum Pharmaceuticals, Inc.
("Nostrum"), the entity from whom the Company acquired what was previously its
primary technology under development.

        Nostrum owns approximately 40% of the Company's outstanding stock and as
disclosed in that certain Schedule 13D, Amendment No. 6, dated January 3, 2007,
Nirmal V. Mulye, Ph. D. ("Mulye"), beneficially owns all the outstanding stock
of Nostrum. In addition, Mulye resigned from his positions with the Company as a
Director in September 2006 and as Chief Scientific Officer in January 2007. Each
of Mulye and Nostrum is a guarantor of the Company's obligations under a Credit
Agreement, dated as of May 22, 2006 between the Company and the Bank of India
for a credit facility of up to $10,500,000.

        The Company's rights to Nostrum's technology arise out of two principal
agreements, a Technology License Agreement and ANDA Ownership Transfer and
Product License Agreement. The Technology License Agreement between the Company
and Nostrum dated as of March 16, 2005, as amended (the "Technology Agreement")
grants the Company an exclusive license under Nostrum's oral controlled release
proprietary technology to develop, make and sell exclusively and worldwide, ten
generic and ten 505(b)(2) drugs (improved formulations of previously approved
drugs), which drugs are to be designated by the Company. The ANDA Ownership
Transfer and Product License Agreement between the Company's subsidiary,
Synovics Laboratories, Inc. ("Synovics Labs") and Nostrum dated May 17, 2006
(the "ANDA Agreement") transferred ownership of an abbreviated new drug
application ("ANDA") to an AB rated, generic 500mg equivalent (Metformin ER) of
the branded product Glucophage-XR (the "Metformin Drug") and additionally grants
the Company an exclusive license under Nostrum's oral controlled release
proprietary technology to develop, make and sell the Metformin Drug and an
additional strength version of the Metformin Drug in the United States.

        To date, the Company designated four drugs for development namely
Alprazolam, Alfuzosin, Paroxetine and Metoprolol Succinate (formerly known as
SNG1001a, SNG1002a, SNG1003a,b,c and SNG1004a,b,c., respectively) and intended
to invest the majority of its resources in the development and commercialization
of these and other drugs to be designated under the Technology Agreement during
the next few years.


                                       28
<PAGE>

        However, in September, October and November, 2006, the Company received
a series of written notices from Nostrum purporting to terminate: (i) the
Company's rights to four drugs designated by the Company under the Technology
Agreement, and (ii) the ANDA Agreement. Each notice purports to be effective as
of the sixtieth (60th) day from the date of the Company's receipt of such
notice. The notices also purported to terminate five other drugs allegedly
covered by the Technology Agreement.

        The Company believes that these termination notices are factually
incorrect and are contrary to the terms of the Technology Agreement and the ANDA
Agreement. Although labeled a "termination" by Nostrum and inclusion by Nostrum
of a request to terminate the ANDA Agreement, the letters received by the
Company are, in effect, a notice under the agreement of a dispute between the
parties and requires the parties to, upon completion of the exchange of certain
notices, enter into arbitration with respect to such dispute.

        On November 17, 2006, the Company commenced an action in the United
States District Court for the Southern District of New York against Nostrum and
on November 20, 2006, the Court granted a temporary restraining order enjoining
Nostrum from terminating the Technology Agreement. On December 6, 2006, the
Court extended the order enjoining the termination of the Technology Agreement
but only with respect to the four drugs designated by the Company for
development pursuant to the Technology Agreement. On February 20, 2007 the Court
subsequently extended the injunction until April 30, 2007 and further enjoined
Nostrum from terminating the ANDA Agreement.

        On May 31, 2007, the United States District Court for the Southern
District of New York modified its previously issued preliminary injunction and
extended it to April 26, 2008 unless, prior to that date, an award issues in the
arbitration entitled SYNOVICS PHARMACEUTICALS, INC. ET AL. V. NOSTRUM
PHARMACEUTICALS, INC. currently pending before the American Arbitration
Association, in which event the Court will entertain requests to extend the
injunction pending any appeal from any such award. The injunction applies to
Metformin Extended Release formulations. While the arbitration is pending
the Company is free to continue to prosecute the continued development of
Metformin, to file with the FDA an application for a site transfer for the
manufacture of the approved 500 mg extended release version, and to decide
whether to file an Abbreviated New Drug Application (ANDA) for a 750 mg extended
release version of the drug. The Court Order requires certain progress reporting
conditions of the Company.

        As requested by the Company, the injunction was modified to terminate
its application to Alprazolam, Alfuzosin, Paroxetine and Metoprolol Succinate.
The modification is consistent with the Company's position in the arbitration
that the Technology Agreement, under which rights to an exclusive license
for these and other potential products were provided by Nostrum, should be
invalidated and all shares of stock purchased by Nostrum and all monies paid
under the agreement should be returned to the Company in light of the underlying
facts and Nostrum's misconduct. The hearing in the arbitration is scheduled to
begin on January 21, 2008 before a three-judge arbitration panel.


                                       29
<PAGE>

        As previously reported in Company's Current Report on Form 8K dated
March 2, 2007, the Company commenced a separate lawsuit in the United States
District Court for the District of New Jersey against Mulye, Anil Anand
("Anand") and Nostrum. As part of the lawsuit, the Company alleges that Mulye
introduced Anand to the registrant without disclosing the background of Anand, a
confessed felon in a $700 million bank fraud. In the action, the Company
alleges, among other things, that (i) Mulye breached fiduciary duties and
usurped corporate opportunities as a member of the Board and Chief Scientific
Officer and that Anand and Nostrum aided and abetted Mulye in such actions, (ii)
Mulye, Anand and Nostrum tortiously interfered with prospective contractual
relationships of the Company, (iii) Mulye fraudulently induced the Company to
enter into certain financial transactions, and (iv) Mulye, Anand and Nostrum
conspired to breach fiduciary duties and steal valuable corporate opportunities.
The Company has requested a jury trial and seeks compensatory and punitive
damages and a constructive trust over corporate opportunities usurped from the
Company. A trial date has not yet been scheduled in the action.

        The Company intends to pursue vigorously and aggressively all further
avenues necessary and remedies available to protect and enforce any and all
rights it has in disputes relating to either the Technology Agreement, the ANDA
Agreement or the action against Mulye, Anand and Nostrum. However, the Company
cannot make any representations as to when the disputes with Mulye, Anand and
Nostrum will be resolved and the effect such resolution, if any, and the
resignation of Mulye as Chief Scientific Officer will have on the Company's
technology plans.

        BRECKENRIDGE
        ------------

        As previously reported in the Company's Quarterly Report on Form 10-Q
for the quarter ended January 31, 2007, on December 15, 2005, Breckenridge
Pharmaceutical, Inc. ("Breckenridge") commenced an action against ANDApharm and
its former controlling person John S. Copanos in the Court of the 15th Judicial
Circuit in and for Palm Beach County, Florida. The complaint alleged that
ANDApharm breached a distribution contract with Breckenridge, misappropriated
Breckenridge's trade secrets and sought an injunction against ANDApharm. On May
3, 2007, the action was dismissed with prejudice with each party bearing its own
attorneys fees and costs.

        ASIA PACIFIC
        ------------

        As previously reported in the Company's Current Report on Form 8-K dated
May 11, 2007, on May 11, 2007, the Company received a summons by Asia Pacific
Investment Holdings Limited and a Notice of Motion seeking an order from the
Supreme Court of the State of New York, County of New York granting summary
judgment arising from a default by the Company of a Convertible Promissory Note
dated April 17, 2006 in the principal amount of $1,500,000. The affidavit which
accompanied the Notice stated that the maturity date of the Note has been
accelerated as a result of the failure to


                                       30
<PAGE>

pay required quarterly installments of interest and that accrued but unpaid
interest as of May 4, 2007 was $265,300.

ITEM 1A.      RISK FACTORS.

        The Company has had no material changes to its risk factors as
previously disclosed in its Form 10-K for the year ended October 31, 2006 filed
with the Securities and Exchange Commission on January 30, 2007.

ITEM 2.       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

        None that were not previously disclosed in Form 8K filings during the
previous quarter ended April 30, 2007.

ITEM 3.       DEFAULTS UPON SENIOR SECURITIES.

        Between October 2005 and April 2006, the Company issued convertible
bridge notes bearing interest at a rate of 9% per annum as part of its 2005
Bridge Note Financing. As of the date of this filing, the Company is delinquent
in its payment of the principal and interest to certain holders of the notes
issued in the 2005 Bridge Note Financing in the amount of $5,481,251, which
indebtedness exceeds 5% of the Company's total assets.

ITEM 4.       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

        None.

ITEM 5.       OTHER INFORMATION.

        None.

ITEM 6.       EXHIBITS.
        Exhibits

        31.1  Certification of Chief Executive Officer pursuant to Rules
              13a-14(a) and 15d-14(a) of the Securities Exchange Act

        31.2  Certification of Chief Financial Officer pursuant to Rules
              13a-14(a) and 15d-14(a) of the Securities Exchange Act

        32.1  Certification of Chief Executive Officer pursuant to 18 U.S.C.
              Section 1350, as adopted pursuant to Section 906 of the
              Sarbanes-Oxley Act of 2002

        32.2  Certification of Chief Financial Officer pursuant to 18 U.S.C.
              Section 1350, as adopted pursuant to Section 906 of the
              Sarbanes-Oxley Act of 2002



                                       31
<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.


                                    SIGNATURE

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


                                               SYNOVICS PHARMACEUTICALS, INC.
                                               (Company)



Date:  June 18, 2007
                                               By: /s/ Ronald H. Lane
                                                   -----------------------------
                                                   Ronald H. Lane
                                                   (Chief Executive Officer, and
                                                   Principal Financial Officer)



                                       32