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: JULY 31, 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 September 15, 2007 there were 29,714,630 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.                                          14

ITEM 3.   Quantitative and Qualitative Disclosures About Market Risk.         17

ITEM 4.   Controls and Procedures.                                            17

PART II - OTHER INFORMATION

ITEM 1.   Legal Proceedings.                                                  18

ITEM 1A.  Risk Factors.                                                       19

ITEM 2.   Unregistered Sales of Equity Securities and Use of Proceeds.        19

ITEM 3.   Defaults upon Senior Securities.                                    19

ITEM 4.   Submission of Matters to a Vote of Security Holders.                20

ITEM 5.   Other Information.                                                  20

ITEM 6.   Exhibits.                                                           20

SIGNATURES                                                                    21

<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                              JULY 31,      OCTOBER 31,
                                                                2007            2006
                                                            ------------   -------------
                                                            (Unaudited)    (Derived from
                                                                               audited
ASSETS                                                                        financial
                                                                             statements)

<S>                                                         <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents                                 $  2,546,110    $  2,393,437
  Accounts receivable, net                                     3,609,609       2,037,860
  Other Receivables                                              121,372         509,241
  Inventory                                                    2,093,728       2,376,480
  Prepaid expenses                                               577,564         413,429
                                                            ------------    ------------

         Total Current Assets                                  8,948,383       7,730,447
                                                            ------------    ------------

PROPERTY - Net of accumulated depreciation of $378,957
  and $163,303, respectively                                   2,262,306       1,642,282
                                                            ------------    ------------

OTHER ASSETS:
  Deposits on Kirk Bldg. and security deposits                    87,548         379,622
  Goodwill                                                    11,447,698      11,447,698
  Deferred financing and Warrant fees                          3,580,552       1,967,937
  Intangible assets  - net of accumulated amortization of
      $573,735 and $343,113, respectively                      1,600,849      15,714,664
                                                            ------------    ------------

         Total Other Assets                                   16,716,647      29,509,921
                                                            ------------    ------------

TOTAL ASSETS                                                $ 27,927,336    $ 38,882,650
                                                            ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                          $  4,395,528    $  3,226,664
  Accrued expenses                                             2,744,119       1,970,277
  Current portion of notes payable                             3,840,000       2,180,929
  Convertible bridge notes                                     6,865,107       3,906,118
  Current portion of capital lease obligations                    54,676          71,227
  Accrued interest                                             4,201,111       1,735,174
                                                            ------------    ------------

         Total current liabilities                            22,100,541      13,090,389
                                                            ------------    ------------

LONG-TERM LIABILITIES:
  Deferred revenue                                               847,335         980,363
  Notes payable, net of current maturities                     9,250,000      11,500,000
  Capital lease obligations, net of current portion              131,022         208,411
                                                            ------------    ------------

         Total Liabilities                                    32,328,898      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; 29,902,575 and 26,044,630
    issued and outstanding, respectively                          29,714          26,044
  Additional paid-in capital                                  71,013,635      61,876,506
  Warrants                                                     4,892,997       4,139,972
  Accumulated deficit                                        (70,034,496)    (53,403,233)
                                                            ------------    ------------
                                                               6,700,848      13,438,287
Subscription receivable                                         (150,000)       (150,000)
Common Stock in Treasury                                     (10,952,410)       (184,800)
                                                            ------------    ------------
         Total stockholders' equity                           (4,401,562)     13,103,487
                                                            ------------    ------------

TOTAL LIAILITIES AND STOCKHOLDERS' EQUITY                   $ 27,927,336    $ 38,882,650
                                                            ============    ============
</TABLE>

See notes to the consolidated financial statements.


                                       3
<PAGE>

                 SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED                     NINE MONTHS ENDED
                                                              -------------------------------       -------------------------------
                                                                JULY 31,           JULY 31,            JULY 31,           JULY 31,
                                                                  2007              2006                2007                2006
                                                              ------------       ------------       ------------       ------------

<S>                                                           <C>                <C>                <C>                <C>
REVENUES, net                                                 $  6,881,212       $  5,354,000       $ 18,138,872       $  5,356,115

COST OF REVENUES                                                 4,295,639          3,886,668         12,479,164          3,887,003
                                                              ------------       ------------       ------------       ------------

         GROSS PROFIT                                            2,585,573          1,467,332          5,659,708          1,469,112

OPERATING EXPENSES
  Research and development                                         316,200            570,942            849,563            895,429
  Selling, general, and administrative                           4,456,732          1,445,511         12,594,400          2,826,986
                                                              ------------       ------------       ------------       ------------
         Total expenses                                          4,772,932          2,016,453         13,443,963          3,722,415
                                                              ------------       ------------       ------------       ------------

         LOSS FROM OPERATIONS                                   (2,187,359)          (549,121)        (7,784,255)        (2,253,303)
                                                              ------------       ------------       ------------       ------------

OTHER INCOME (EXPENSES):
  Gain on debt forgiveness                                              --             31,017                 --             31,017
  Impairment loss                                               (3,962,390)                --         (3,962,390)                --
  Other income                                                     143,572                 --            143,572            140,000
  Interest expense, net                                         (1,479,442)        (1,013,395)        (5,027,081)        (1,858,249)
                                                              ------------       ------------       ------------       ------------

         Total other (expenses) income                          (5,298,260)          (982,378)        (8,845,899)        (1,687,232)
                                                              ------------       ------------       ------------       ------------
Loss

NET LOSS BEFORE PROVISION FOR
  INCOME TAX                                                    (7,485,619)        (1,531,499)       (16,630,154)        (3,940,535)

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

  LOSS FROM CONTINUING OPERATIONS                               (7,485,619)        (1,531,499)       (16,630,154)        (3,940,535)
  LOSS FROM DISCONTINUED OPERATIONS
    Equity in the loss in InCon Processing, LLC                         --                 --                 --         (1,042,119)
                                                              ------------       ------------       ------------       ------------

NET LOSS                                                      $ (7,485,619)      $ (1,531,499)      $(16,630,154)      $ (4,982,654)
                                                              ============       ============       ============       ============

BASIC AND DILUTED NET LOSS PER COMMON SHARE
  FROM CONTINUING OPERATIONS                                  $      (0.25)      $      (0.06)      $      (0.60)      $      (0.17)
                                                                        --                 --                 --              (0.04)
                                                              ------------       ------------       ------------       ------------

NET LOSS PER SHARE                                            $      (0.25)      $      (0.06)      $      (0.60)      $      (0.21)
                                                              ============       ============       ============       ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING                                                   29,661,257         25,276,999         27,921,065         23,556,323
                                                              ============       ============       ============       ============
</TABLE>

See notes to the consolidated financial statements.


                                       4
<PAGE>

                SYNOVICS PHARMACEUTICALS, INC. AND SUBSIDIARIES

          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                                     NINE MONTHS END JULY 31,
                                                   ----------------------------
                                                       2007            2006
                                                   ------------    ------------
OPERATING ACTIVITIES:
Net loss                                           $(16,630,154)   $ (4,982,654)
Adjustments to reconcile net loss to net cash
  used in operating activities:
  Impairment of long lived assets                     3,692,390               0

  Depreciation and amortization                         369,469          26,570
  Equity in the loss of joint venture                        --       1,042,119

  Stock based compensation                            4,908,443              --
  Amortization of financing costs                     2,036,930       1,094,216

  Changes in operating assets and liabilities:

     Accounts receivable                             (1,693,121)        748,525

     Inventory                                          282,752        (418,280)

     Prepaids and other current assets                  345,106            (664)

     Security Deposits and other assets                  42,074         (49,338)
     Accounts payable                                 1,168,864      (2,028,162)

     Accrued interest                                 2,465,937              --
     Accrued liabilities                              1,081,790       1,382,452

     Deferred Revenues                                 (133,028)             --
                                                   ------------    ------------
Net cash used in operating activities                (2,062,548)     (3,185,216)
                                                   ------------    ------------

INVESTING ACTIVITIES:
   Acquisition of intangible assests                   (250,000)     (1,145,000)

   Purchases of equipment                              (835,678)       (167,021)
   Acquisition activities and Deferred fees                  --      (8,800,000)
                                                   ------------    ------------
Net cash used in investing activities                (1,085,678)    (10,112,021)
                                                   ------------    ------------

FINANCING ACTIVITIES:
   Issuance of common stock                           1,354,839       5,640,000
   Proceeds from issuance of notes payable            2,790,000      12,359,362
   Payments on notes payable                           (750,000)       (341,783)
   Payment of capital lease obligations                 (93,940)       (270,422)
                                                   ------------    ------------

Net cash provided by financing activities             3,300,899      17,387,157
                                                   ------------    ------------

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS                                        152,673       4,089,920

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

CASH AND CASH EQUIVALENTS, END OF PERIOD           $  2,546,110    $  4,218,739
                                                   ============    ============

SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING
AND INVESTING ACTIVITIES:
  Settlement of debt through issuance
    of common stock                                $          0    $  2,394,000
                                                   ============    ============

See notes to the 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 nine month period ended July 31, 2007 and July
         31, 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
         $70,034,496 through July 31, 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, Kirk Pharmaceuticals, Inc.,
         AndaPharm, LLC and Synovics Laboratories, Inc. All significant
         inter-company transactions have been eliminated in consolidation.

         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.

         RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
         -----------------------------------------
         In June 2006, the Financial Accounting Standards Board ("FASB") issued
         FASB Interpretation No. 48, "Accounting for Uncertainty in Income
         Taxes," an interpretation of FASB Statement No. 109 ("FIN 48"), which
         provides criteria for the recognition, measurement, presentation and
         disclosure of uncertain tax positions. A tax benefit from an uncertain
         position may be recognized only if it is "more likely than not" that
         the position is sustainable on its technical merits. The provisions of
         FIN 48 are effective for fiscal years beginning after December 15,
         2006. The Company does not expect FIN 48 will have a material effect on
         its consolidated financial condition, results of operations or cash
         flows.

         In September 2006, the FASB issued FASB Statement No. 157 "Fair Value
         Measurements" ("FASB No. 157") which relate to the definition of fair
         value, the methods used to measure fair value, and the expanded
         disclosures about fair value measurements. The provisions of FASB No.
         157 are effective for financial statements issued for fiscal years
         beginning after November 15, 2007. The Company does not expect this
         statement to have a material effect on its consolidated financial
         condition, results of operations or cash flows upon adoption.


                                       6
<PAGE>

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


         In September 2006, the SEC issued Staff Accounting Bulletin 108,
         "Considering The Effects Of Prior Year Misstatements When Quantifying
         Misstatements In Current Year Financial Statements", which provides
         guidance regarding the process of quantifying financial statements
         misstatements for the purpose of materiality assessment. The provisions
         are effective for fiscal years ending on or after November 15, 2006.
         This bulletin did not have a material effect on its consolidated
         financial condition, results of operations or cash flows upon adoption.

         In February 2007, the FASB issued FASB Statement No. 159, "The Fair
         Value Option for Financial Assets and Financial Liabilities, including
         an amendment of FASB Statement No. 115",("FASB No. 159") which permits
         entities to choose to measure many financial instruments and certain
         other items at fair value that are not currently required to be
         measured at fair value. The objective is to improve financial reporting
         by providing entities with the opportunity to mitigate volatility in
         reported earnings caused by measuring related assets and liabilities
         differently without having to apply complex hedge accounting
         provisions. FASB No. 159 is expected to expand the use of fair value
         measurement, which is consistent with the Board's long-term measurement
         objectives for accounting for financial instruments. FASB No. 159 also
         establishes presentation and disclosure requirements designed to
         facilitate comparisons between entities that choose different
         measurement attributes for similar types of assets and liabilities.
         FASB No. 159 does not affect any existing accounting literature that
         requires certain assets and liabilities to be carried at fair value.
         FASB No. 159 does not establish requirements for recognizing and
         measuring dividend income, interest income, or interest expense. FASB
         No. 159 does not eliminate disclosure requirements included in other
         accounting standards, including requirements for disclosures about fair
         value measurements, included in FASB Statements No. 157, "Fair Value
         Measurements, and No. 107, Disclosures about Fair Value of Financial
         Instruments." FASB No. 159 is effective as of the beginning of an
         entity's first fiscal year that begins after November 15, 2007. The
         Company has not yet completed its assessment of the impact upon
         adoption of FASB No. 159 on its consolidated financial condition,
         results of operations or cash flows.

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 - TERMINATION OF TECHNOLOGY LICENSE AGREEMENTS

         The Company and its subsidiary Synovics Laboratories, Inc. ("Synovics
         Labs"), have been involved in a legal dispute with Nostrum
         Pharmaceuticals, Inc. ("Nostrum") and Nirmal Mulye, Ph.D. ("Mulye"). As
         disclosed in the Company's previous periodic reports, these parties
         were among the parties to pending actions and proceedings before the
         federal District Court of the Southern District of New York and the
         District of New Jersey as well as arbitration before the American
         Arbitration Association.

         On July 31, 2007, the Company together with its subsidiary Synovics
         Labs entered into a settlement agreement with all parties to the
         various actions. Under the terms of the settlement agreement, all
         pending actions and proceedings between the parties were dismissed with
         prejudice, the parties mutually released one another and all
         pre-settlement agreements were terminated, including the Technology
         License Agreement between the Company and Nostrum and the ANDA
         Ownership Transfer and Product License Agreement ("ANDA Agreement")
         between Synovics Labs and Nostrum. In connection with the termination
         of the ANDA Agreement, the Company and Synovics Labs assigned to
         Nostrum the Abbreviated New Drug Application for the Metformin Extended
         Release 500mg.

         As part of the settlement, 10,661,000 shares of common stock of the
         Company that are owned by Nostrum have been placed in escrow pursuant
         to a separate escrow agreement (the "Escrow Shares"). If the guarantees
         of Mulye and Nostrum to the Bank of India ("BOI") in connection with
         the Company's credit facility with BOI are extinguished in full or in
         part by May 1, 2008, the Escrow Shares will be released to Synovics in
         an amount proportionate to the amount by which the guarantees have been
         extinguished. If by May 1, 2008 any Escrow Shares have not been
         released to the Company or if the Company defaults on its credit
         facility with BOI and such default remains uncured for more than sixty
         days, any remaining Escrow Shares will be released to Nostrum. If the
         Escrow Shares are released to Nostrum and during the escrow period the
         Company issues additional shares of common stock or common stock
         equivalents to cause the Escrow Shares to represent less than 32% of
         the outstanding shares of the Company on a fully diluted basis, then
         the Company is required to issue to Nostrum additional shares of common
         stock so that the Escrow Shares together with the additional shares
         constitute 32% of the outstanding shares of the Company on a fully
         diluted basis. Such additional shares will be reduced proportionately
         if any of the Escrow Shares are released to Synovics during the escrow
         period. The current amount of the outstanding principal loan balance
         with BOI is $9,750,000. Subsequently, this loan has been paid down to a
         balance of $7,450,000.


                                       7
<PAGE>

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


NOTE C - TERMINATION OF TECHNOLOGY LICENSE AGREEMENTS (CONTINUED)

         As a result of the settlement, the Company has written off $14,460,000
         which had been included in intangible assets on the balance sheet. In
         this connection, a charge of $3,692,390 has been recognized in the
         current income statement. The shares that have been placed in escrow
         are being treated as treasury stock. The fair value of the shares
         included in treasury stock at July 31, 2007 was $10,767,610. The
         Company believes that it is probable that the guarantee to the BOI by
         Nostrum and Mulye will be extinguished in full. In the event that any
         shares are returned to Nostrum and Mulye from escrow, the Company may
         recognize an additional charge at that time.

NOTE D - BRIDGE NOTE FINANCINGS

         In 2005, 2006 and 2007, the Company issued convertible Bridge notes.
         The current value of these notes included in the accompanying balance
         sheet is $ $6,865,107.

         2005 BRIDGE NOTES
         -----------------
         In October 2005, the Company issued convertible bridge notes ("2005
         Bridge Notes") in the aggregate principal amount of $4,845,000. The
         2005 Bridge Notes initially had a maturity date of 18 months from the
         date of issuance. 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 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 three 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 three years. As a result of the
         consummation of the acquisition of Kirk Pharmaceuticals, LLC ("Kirk")
         and ANDAPharm LLC "ANDAPharm"), the 2005 Bridge Notes were revised (the
         "Revised Notes"). The Revised Notes mature on April 3, 2009 and
         constitute unsecured indebtedness of the Company. Of the $4,845,000,
         $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.

         The Company did not repay 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 repay
         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 July 31, 2007, the
         outstanding 2005 Bridge Notes and Revised Notes in the aggregate
         principal amount of $4,479,107 have accrued interest of $1,083,715.

         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 was
         extended to May 31, 2007 and the Note became exchangeable in certain
         instances by both the Company and note holder for shares of common
         stock of the Company. As of July 31, 2007, $65,832 of the note was
         exchanged for 95,000 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 registerable 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"). According to the registration
         rights agreement, if the Mandatory Registration Statement has not been
         declared or ordered effective within one hundred twenty


                                       8
<PAGE>

         (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)


                                       9
<PAGE>

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


NOTE D - BRIDGE NOTE FINANCINGS (CONTINUED)

         2005 BRIDGE NOTES (CONTINUED)
         -----------------------------
         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 Mandatory Registration Statement, the Company failed to have
         the Mandatory Registration Statement declared effective and recognized
         $2,615,525 of penalties as of July 31, 2007, which are reflected as
         interest expense.

         2006 BRIDGE NOTE
         ----------------
         Between October and December 2006, the Company's subsidiary, Kirk,
         issued 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 subsequently exchanged
         for units of the 2007 Private Placement (as discussed in Note E 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 three and five years.

         2007 BRIDGE NOTE
         ----------------
         On July 5, 2007, the Company and its wholly owned subsidiary, completed
         an initial closing of a bridge round of debt financing, whereby Kirk
         issued convertible bridge notes in the principal amount of $2,100,000.
         The bridge notes bear interest at 6% per annum increasing to 18% in the
         case of an event of default and have a maturity date of six months from
         the issuance date, unless earlier converted.

         Upon the closing of a Qualified Equity Financing (as defined in the
         convertible bridge notes issued on July 5, 2007), such convertible
         bridge notes automatically convert into the Company's future Series C
         Preferred Stock to be issued in a Qualified Equity Financing at a
         premium of 110% of the unpaid principal and interest of the bridge
         notes. In addition, upon closing of the Qualified Equity Financing,
         holders of the bridge notes are entitled to receive common stock
         purchase warrants of the Company at an exercise price and other terms
         identical to the warrants to be issued in the Qualified Equity
         Financing. The amount of common stock into which the common stock
         purchase warrants are exercisable ranges from 40% to 50% of the number
         of shares of common stock issuable to bridge note holders upon
         conversion of the Series C Preferred Stock receivable upon conversion
         of the bridge notes, with the range depending on the timing of the
         initial closing of the Qualified Equity Financing.

         The bridge notes have been secured by a pledge by Ronald H. Lane, the
         Company's Chief Executive Officer and Chairman of the Board, of
         2,000,000 shares of common stock of the Company owned by Mr. Lane. In
         addition, the Company agreed to issue 1,000,000 shares of its future
         Series B Convertible Preferred Stock to the bridge note holders. The
         Series B Convertible Preferred Stock will be convertible into the
         Company's common stock on a 1:15 basis in the event of default under
         the bridge notes, will have full ratchet anti-dilution protection, will
         be surrendered upon the completion of the Qualified Equity Financing,
         will have voting rights on an as converted basis and will be
         non-transferable other than in an event of default under the bridge
         notes.


                                       10
<PAGE>

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


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

NOTE F - CONSULTING AND STRATEGIC ALLIANCE 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 five years. The Company recorded a charge of $273,212
         for each consultant, to recognize the 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 five years. The Company recorded a charge of $416,475 to recognize
         the agreement.

         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").


                                       11
<PAGE>

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


NOTE F - CONSULTING AND STRATEGIC ALLIANCE AGREEMENTS (CONTINUED)

         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 seven years. The Company recorded a charge of $1,192,153 to
         recognize the agreement.

         In addition, the Company issued a note to Singh note (the "Singh Note")
         in conjunction with the Consulting Agreement, which bears interest of
         15% per annum with interest payments payable monthly commencing May 1,
         2007 and matures on September 12, 2007. The Singh Note is exchangeable
         into equity of the Company under certain circumstances.

         On May 1, 2007, the Company issued 1,300,000 share options exercisable
         for Five (5) years at a price equal to the closing share price as at
         the day prior to the execution of a licensing agreement by the Company
         to acquire the rights to an Omeprazole type product with the assistance
         of VCG. These share options shall survive termination or non-renewal of
         this agreement. The stock options vested immediately upon execution of
         the VCG Agreement. The per share weighted value of the options to
         purchase 1,300,000 shares of common stock at per share is $1.17. The
         options were valued using the Black-Scholes option pricing model with
         the following weighted average assumptions: no dividend yield; expected
         volatility of 130%; risk free interest rate of 4.67%; and expected life
         of five years. The Company recorded a charge of $1,527,000 to recognize
         the agreement.

NOTE G - EMPLOYMENT AGREEMENTS

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

         On May 17, 2007, the Company executed an Employment Agreement dated as
         of January 30, 2007 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"), representing, among other things, accrued, but
         unpaid salary.


                                       12
<PAGE>

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


NOTE G - EMPLOYMENT AGREEMENTS (CONTINUED)

         On July 9, the Company entered into an employment agreement with Steven
         Getraer as the Company's Executive Vice President and Chief Financial
         Officer. Mr. Getraer agreed to employment with the Company is for a
         three year term ending July 9, 2010, renewable for subsequent terms
         unless earlier terminated by either party. Mr. Getraer is entitled to a
         base salary of $265,000 per annum, increasing to $280,000 per annum
         commencing on July 10, 2008 and to $295,000 commencing on July 10,
         2009. In addition, Mr. Getraer is entitled to a discretionary fiscal
         year-end bonus payable in cash and/or shares of the Company's common
         stock and was granted options to acquire an aggregate of 600,000 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 July 10, 2008. The
         per share weighted value of the options to purchase 600,000 shares of
         common stock at $2.00 is $0.92. The options were valued using the
         Black-Scholes option pricing model with the following weighted average
         assumptions: no dividend yield; expected volatility of 122%; risk free
         interest rate of 4.97%; and expected life of seven years. The Company
         may also in its discretion grant Mr. Getraer options pursuant to any
         eligible equity compensation plan.

NOTE H - OTHER MATTERS

         LICENSE AGREEMENT

         On May 1, 2007, the Company's subsidiary, 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 while
         Synovics Labs will be responsible for research and development
         activities and will file in Company'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 Company 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.

         ASIA PACIFIC LAWSUIT

         On May 11, 2007, the Company received from its agent for service of
         process in Nevada a copy of a Summons (the "Summons"), together with a
         Notice of Motion, for Summary Judgment in Lieu of Complaint filed by
         Asia Pacific Investment Holdings Limited ("Asia Pacific"). In the
         Summons, Asia Pacific sought an order from the Supreme Court of the
         State of New York, County of New York (the "Court"), granting summary
         judgment with respect to claims arising from an alleged default by the
         Company of the terms of a certain Convertible Promissory Note issued to
         Asia Pacific on April 17, 2006, in the principal amount of $1,500,000
         (the "Asia Pacific Note"). As of July 31, 2007, $317,625 of accrued but
         unpaid interest was owed under the Asia Pacific Note.

         On July 16, 2007, the Court issued a decision granting Asia Pacific's
         Motion for Summary Judgment in Lieu of Complaint. On September 7, 2007,
         the Company paid Asia Pacific $1,844,625, the Registrant's calculation
         of the amount due to Asia Pacific under the Asia Pacific Note. As of
         the date hereof, the action between the Company and Asia Pacific is
         still pending.


                                       13
<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

The Company is a domestic specialty pharmaceutical company that develops,
manufactures, and markets prescription and over the counter ("OTC") drugs.
Substantially all of the Company's operations are located in Fort Lauderdale,
FL. The Company presently has three basic elements comprising its business
strategy and operations:

     o   OTC private label manufacturing and sales;

     o   Controlled Substance OTC private label manufacturing and sales; and

     o   Prescription drug development, manufacturing and sales.

A core component of the Company's business plan is its offshore "Front-End"
strategy. The Company believes that quality and pricing, together with customer
service, is, and will become even more so in the future, the requirement for
success and growth of a pharmaceutical company in the U.S. OTC and generic drug
markets. The Company is expanding out-sourcing relationships with offshore
pharmaceutical companies for the purpose of obtaining low-cost manufactured
production of its OTC private label and prescription drug products. This
sourcing will reduce costs for its highly competitive OTC private label business
and allow its manufacturing facility to increase its focus on higher-margin and
niche OTC and prescription products.

As part of its offshore Front-End strategy, the Company intends to become a
conduit for OTC and generic products developed and manufactured by small to
medium sized pharmaceutical companies located in India, which do not have a
marketing and distribution presence in the U.S. Synovics has initiated steps
with several Indian companies to effect this Front-End strategy. The Company has
signed an alliance with Harry Singh ("Singh'), principal of Glopec International
and investor in the Company, to assist it in the development of this strategy.
Initially, Mr. Singh will assist in sourcing manufacturing bulk commodity OTC
drugs. Singh also will help to provide access for Synovics to in-license, United
States Food and Drug Administration (the "FDA") approved or "ready to be filed"
abbreviated new drug applications ("ANDAs") owned by certain pharmaceutical
companies located in India.

The Company, through its Kirk Pharmaceuticals, Inc. ("Kirk") subsidiary, is
engaged in the manufacture and distribution of private label OTC drugs for major
drug store chains and distributors in the U.S. Customers include Target,
Walgreens and BJs. Kirk is an eight-year-old operation, employs in excess of 120
people in 80,000 SF of leased space and has produced a year-to-year revenue
growth since inception. Kirk has achieved growth in both the volume and number
of OTC and DEA controlled substance OTC private label products.


                                       14
<PAGE>

The Company has in-licensed exclusive rights to a generic OTC version of
omeprazole, which is the generic version of Prilosec(R). The projected sales of
Prilosec(R) in the U.S. for 2007 are $750 million. There is no generic OTC
version of omeprazole currently approved by the FDA for sale in the U.S. The
Company intends to complete clinical studies for its generic OTC version of
omeprazole and intends to file an NDA with the FDA in the first quarter of 2008.
Upon final approval of the Company's generic OTC version of omeprazole, the
product will be manufactured by the licensor Fluid Air Inc. doing business as
PharmPro, and packaged and distributed by Kirk.

The Company believes that Kirk can continue to provide future growth in revenue
and earnings before interest, taxes, depreciation and amortization (EBITDA). The
Company believes that its continued growth is dependent upon Kirk's ability to
successfully implement the cultural and operational changes necessary for
operational efficiency and performance of the Company's commitments to its
customers, as well as successfully execute Kirk's Front-End strategy with OTC
private label products.

The Company's prescription drug business, conducted through it subsidiaries
Synovics Labs and ANDAPharm, has several prescription generic drugs currently in
the market or under development. Two generic prescription drugs have been
launched under customer labels. In addition, an ANDA for another drug has been
filed with the FDA, which is currently under review. Furthermore, the Company
has other drugs under development.

The Company has announced an alliance with VCG&A, Inc. ("VCG&A"), a
pharmaceutical marketing and consulting firm. VCG&A is led by pharmaceutical
industry marketing, sales and purchasing veterans who provide the Company
relationship driven market access to enhance its product penetration and sales.
Customers targeted beyond those currently in place are major corporate retail
chains, national wholesalers, managed care organizations and government
agencies. VCG&A is also providing assistance with system interfaces critical to
meet performance requirements with key customers. VCG&A, provides additional
access to a variety of product opportunities and has several additional drug
candidates immediately available to the Company. These product candidates, if
successfully licensed and developed, have the potential to make a significant
addition to the Company's revenue and earnings over the next several years.

Future operating results will depend largely on the Company's ability to achieve
the following:

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

     o   successful implementation of improvements and method changes in the
         operations in Fort Lauderdale to increase output and revenues and
         profits;

     o   continued success in increasing its existing business with customers
         and attaining new customers, both internally and with the participation
         of VCG & A;

     o   debt and equity financing to satisfy the Company's working capital and
         capital expansion requirements, including the servicing of its debt;

     o   successful resolution of the Company's removal of the guarantee from
         the BOI debt;

     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 JULY 31, 2007 COMPARED WITH THREE MONTHS ENDED JULY 31, 2006

Consolidated gross revenues for the quarter ended July 31, 2007 were $6,881,212
compared to $5,354,000 for the same quarter in 2006. This increase in revenue
represents increases in sales at the Company's subsidiaries, Kirk and ANDAPharm
which were acquired in May 2006. Kirk's four largest customers represented
approximately 58% 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. To this end, the Company is now selling products to an
additional three major retail organizations.

Sales of products containing pseudoephedrine, ephedrine and/or guaifenesen
accounted for approximately 58% 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 July 31, 2007 was $4,295,639
compared to $3,886,668 for the three month period ended July 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.


                                       15
<PAGE>

Research and development expenses for the three month period ended July 31, 2007
was $316,200 compared to $570,942 for the three month period ended July 31,
2006. This decrease is due primarily to the change in activity in 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 expenses include
salaries and related costs of research and development personnel, costs of
consultants, materials and supplies associated with research and development
projects, as well as clinical studies.

Selling, general, and administrative expenses for the three month period ended
July 31, 2007 was $4,456,732 as compared to $1,445,511 for the three month
period ended July 31, 2006. This increase is primarily due to costs of
consulting agreements, granting of options, and legal expenses. Consulting
expense, $1,640,121, cost of granting options, $334,165, and legal fees,
$865,072, for the quarter ended July 31, 2007. The day-to-day operating expenses
are in line with historical norms of Kirk and ANDAPharm, and contain no
significant, unusual expenses.

The net loss of $7,485,619, or $.25 per share, for the three month period ended
July 31, 2007 as compared to $1,531,499 or $.06 per share for the three month
period ended July 31, 2006. Losses were due to interest accruing on the
Company's indebtedness, penalties accruing for failure of its registration
statement to become effective, expenses attributed to warrants and legal fees,
primarily related to the legal actions referred to above. The Company has
incurred a charge of $3,692,390 due to the settlement of its ongoing litigation
with Nostrum. The Company expects cumulative losses to continue for the
foreseeable future.

NINE MONTHS ENDED JULY 31, 2007 COMPARED WITH NINE MONTHS ENDED JULY 31, 2006.

Consolidated gross revenues for the nine months ended July 31, 2007 were
$18,138,872 compared to $5,356,115 for the same period in 2006. This increase in
revenue represents sales of the Company's subsidiaries, Kirk and ANDAPharm that
were acquired by the Company in May 2006. Kirk's four largest customers
represented approximately 54% 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 63% 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 nine month period ended July 31, 2007 was $12,479,164
compared to $3,887,003 for the nine month period ended July 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 nine month period ended July 31, 2007
was $849,563 compared to $895,429 for the nine month period ended July 31, 2006.
The research and development expenses are in line with historical norms of Kirk
and ANDAPharm, and contain no significant, unusual expenses.

Selling, general, and administrative expenses for the nine month period ended
July 31, 2007 was $12,594,400 as compared to $2,826,986 for the nine month
period ended July 31, 2006. The increase in expenses is primarily due to
inclusion of Kirk and AndaPharm for the full nine month period ended July 31,
2007, as well as the cost of consulting agreements entered into in the normal
course of business by the Company. In addition, expenses were higher due to the
granting of options, and to the higher legal expenses in connection with the
financing and legal activity of the Company. The Consulting expense of the
Company was, $6,024,089, the cost to the Company of granting options was,
$354,034, and legal fees incurred by the Company were, $1,719,734, for the nine
months ended July 31, 2007. The operating expenses of Kirk and ANDAPharm are in
line with historical norms of Kirk and ANDAPharm, and contain no significant,
unusual expenses.

The net loss of $16,630,154, or $.60 per share, for the nine month period ended
July 31, 2007 as compared to $4,982,654 or $.21 per share for the nine month
period ended July 31, 2006. Losses were due to 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 took a one time charge of $3,692,390 due to the
tentative settlement of litigation with Nostrum. The Company expects losses to
continue for the foreseeable future.


                                       16
<PAGE>

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 $13,152,158 at
July 31, 2007 as compared with working capital deficit of $5,359,942 at July 31,
2006. As of July 31, 2007 the Company had cash and cash equivalents of
$2,546,110 as compared with $4,218,739 at July 31, 2006.

Net cash used in operating activities during the nine month period ended July
31, 2007 was $2,062,548. This resulted from the Company's net loss of
$16,630,154 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 legal expenses.

Net cash used in investing activities during the three month period ended July
31, 2007 was ($1,085,678), primarily from the purchase of equipment and the
acquisition of intangible assets.

Net cash provided by financing activities during the nine month period ended
July 31, 2007 was $3,300,899 which resulted from the proceeds of stock and debt
issuances offset by the repayment of debt in the 2007 and issuance of stock.

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 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.

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,
legal expenses from its dispute 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 sale and issuance of
additional debt or equity securities. The Company can provide no assurance that
additional debt or equity funding will be obtained on favorable terms, if at
all. 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.

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.


                                       17
<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, May 31, 2007 and August
6, 2007 and the Company's Quarterly Report on Form 10-Q for the quarter ended
January 31, 2007 and the Company's Quarterly Report on Form 10-Q for the quarter
ended April 30, 2007, the Company was 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 owned 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 owned 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 arose 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")
granted 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 were 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
granted 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.

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 purported 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 were factually incorrect and
contrary to the terms of the Technology Agreement and the ANDA Agreement. 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 until such date.

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.
then pending before the American Arbitration Association, in which event the
Court agreed to entertain requests to extend the injunction pending any appeal
from any such award. The injunction applied to Metformin Extended Release
formulations. While the arbitration was pending the Company was 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 required 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 was 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


                                       18
<PAGE>

underlying facts and Nostrum's misconduct. The hearing for the arbitration was
scheduled to begin on January 21, 2008 before a three-judge arbitration panel.

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 alleged 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 alleged, 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
requested a jury trial and sought compensatory and punitive damages and a
constructive trust over corporate opportunities usurped from the Company.

On July 31, 2007, the Company together with its subsidiary Synovics Labs entered
into a settlement agreement with all parties to the various actions. Under the
terms of the settlement agreement, all pending actions and proceedings between
the parties were dismissed with prejudice, the parties mutually released one
another and all pre-settlement agreements were terminated, including the
Technology Agreement and the ANDA Agreement. In connection with the termination
of the ANDA Agreement, the Company and Synovics Labs assigned to Nostrum the
Abbreviated New Drug Application for the Metformin Extended Release 500mg.

As part of the settlement, 10,661,000 shares of common stock of the Company that
are owned by Nostrum have been placed in escrow pursuant to a separate escrow
agreement (the "Escrow Shares"). If the guarantees of Mulye and Nostrum to the
Bank of India ("BOI") in connection with the Company's credit facility with BOI
are extinguished in full or in part by May 1, 2008, the Escrow Shares will be
released to Synovics in an amount proportionate to the amount by which the
guarantees have been extinguished. If by May 1, 2008 any Escrow Shares have not
been released to the Company or if the Company defaults on its credit facility
with BOI and such default remains uncured for more than sixty days, any
remaining Escrow Shares will be released to Nostrum. If the Escrow Shares are
released to Nostrum and during the escrow period the Company issues additional
shares of common stock or common stock equivalents to cause the Escrow Shares to
represent less than 32% of the outstanding shares of the Company on a fully
diluted basis, then the Company is required to issue to Nostrum additional
shares of common stock so that the Escrow Shares together with the additional
shares constitute 32% of the outstanding shares of the Company on a fully
diluted basis. Such additional shares will be reduced proportionately if any of
the Escrow Shares are released to Synovics during the escrow period. The current
amount of the outstanding principal loan balance with BOI is $7,450,000.

         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 from its agent for service of
process in Nevada a copy of a Summons (the "Summons"), together with a Notice of
Motion, for Summary Judgment in Lieu of Complaint filed by Asia Pacific
Investment Holdings Limited ("Asia Pacific"). In the Summons, Asia Pacific
sought an order from the Supreme Court of the State of New York, County of New
York (the "Court"), granting summary judgment with respect to claims arising
from an alleged default by the Company of the terms of a certain Convertible
Promissory Note issued to Asia Pacific on April 17, 2006, in the principal
amount of $1,500,000 (the "Asia Pacific Note"). As of July 31, 2007, $317,625 of
accrued but unpaid interest was owed under the Asia Pacific Note.

As previously reported in the Company's Current Report on Form 8-K dated
September 13, 2007, the Court issued a decision granting Asia Pacific's Motion
for Summary Judgment in Lieu of Complaint on July 16, 2007. On September 7,
2007, the Company paid Asia Pacific $1,844,625, the Registrant's calculation of
the amount due to Asia Pacific under the Asia Pacific Note. As of the date
hereof, the action between the Company and Asia Pacific is still pending.

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 July 31, 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.


                                       19
<PAGE>

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


                                       20
<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: September 19, 2007
                                        By: /S/ Ronald H. Lane
                                            ------------------------------------
                                            Ronald H. Lane
                                            Chief Executive Officer
                                            (Principal Executive Officer)



Date: September 19, 2007                By: /S/ Steven Getraer
                                            ------------------------------------
                                            Steven Getraer
                                            Chief Financial Officer
                                            (Principal Financial and Accounting
                                             Officer)


                                       21