----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

----

**FORM      10-QSB**

|   | (Mark                One) |                                                                                                                                                         |   |
|--------|---------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | x                         | **QUARTERLY REPORT              PURSUANT              TO SECTION 13              or 15(d)              OF              THE SECURITIES EXCHANGE ACT OF 1934** |
|   |                      | **For                the quarterly period ended January                31, 2006**                                                                            |
|   |                      |                                                                                                                                                         |   |
|   | o                         | **TRANSITION REPORT              UNDER              SECTION 13 or 15(d) OF              THE EXCHANGE ACT**                                                   |
|   |                      |                                                                                                                                                         |   |
|   |                      | For                the transition period from ______________ to                ________________                                                              |   |
|   |                      |                                                                                                                                                         |   |
|   |                      |  Commission                File                No.333-1164                                                                                              |   |

**FERMAVIR      PHARMACEUTICALS, INC.**

|   | Florida                                                                 |   | 16-1639902                                       |   |
|--------|-------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|   | (State                or jurisdiction of incorporation or organization) |   | (IRS                Employer Identification No.) |   |
|   |                                                                    |   |                                             |   |

|   | 420                Lexington Avenue, Suite 445, New York, NY 10170 |   |
|--------|--------------------------------------------------------------------|--------|
|   | (Address                of Principal Executive Office)             |   |

|   | (212)                413-0802                    |   |
|--------|--------------------------------------------------|--------|
|   | (Issuer’s                telephone number) |   |

|   | N/A                                                                                                              |   |
|--------|------------------------------------------------------------------------------------------------------------------|--------|
|   | (Former                name, former address and former fiscal year, if changed since last                report) |   |

|   | Yes **o** | No                    **x** |
|--------|----------------|-----------------------------|

|   | Yes **o** | No                **x** |
|--------|----------------|-------------------------|

----

----

**INTRODUCTORY      NOTE **

----

**PART      I - FINANCIAL INFORMATION**

**Item      1:**
**Financial      Statements**

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**                                        |   |
|---------------------------------------------------------------------------------------------------------|--------|
| **(A                Development Stage Company)**                                                        |   |
| **Condensed                Consolidated Balance Sheets**                                                |   |
| **(Unaudited)**                                                                                         |   |
|                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                    |   |   | **January                31,****2006** | ** ** | ** ** | **April                30,****2005** |   |
|                                                                                                    |   |   |   |   |   |   |   |
| **Assets**                                                                                              |
|                                                                                                    |   |   |   |   |   |   |   |
| Current                assets:                                                                          |   |   |   |   |   |   |   |
| Cash                                                                                                    |   | $ | 359,486 |   | $ | 224 |   |
| Prepaid                expenses                                                                         |   |   | 26,970 |   |   | 0 |   |
| Total                current assets                                                                     |   |   | 386,456 |   |   | 224 |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Property                and equipment, net                                                              |   |   | 24,282 |   |   | 0 |   |
| Deposit                                                                                                 |   |   | 43,890 |   |   | 0 |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Total                assets                                                                             |   | $ | 454,628 |   | $ | 224 |   |
|                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders' Equity (Deficiency)**                                    |
|                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Current                liabilities - accounts payable and accrued expenses                              |   | $ | 124,788 |   | $ | 10,000 |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Non-current                liabilities - deferred rent                                                  |   |   | 10,341 |   |   | 0 |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Total                liabilities                                                                        |   |   | 135,129 |   |   | 10,000 |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Commitments                                                                                             |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |
| Stockholders'                equity (deficiency):                                                       |   |   |   |   |   |   |   |
| Preferred                stock, $0.001 par value, 20,000,000 shares authorized,                         |   |   |   |   |   |   |   |
| no                shares outstanding                                                                    |   |   | 0 |   |   | 0 |   |
| Common                stock, $0.0001 par value, 100,000,000 shares authorized,                          |   |   |   |   |   |   |   |
| 17,542,550                and 79,380,000 issued and outstanding at                                      |   |   |   |   |   |   |   |
| January                31, 2006 and April 30, 2005, respectively                                        |   |   | 1,754 |   |   | 7,932 |   |
| Additional                paid-in capital                                                               |   |   | 5,561,190 |   |   | 6,568 |   |
| Less                subscription receivable                                                             |   |   | (5,600 | ) |   | 0 |   |
| Deferred                stock-based compensation                                                        |   |   | (268,589 | ) |   | 0 |   |
| Deficit                accumulated during development stage                                             |   |   | (4,969,256 | ) |   | (24,276 | ) |
| Total                stockholders' equity (deficiency)                                                  |   |   | 319,499 |   |   | (9,776 | ) |
|                                                                                                    |   |   |   |   |   |   |   |
| Total                liabilities and stockholders' equity (deficiency)                                  |   | $ | 454,628 |   | $ | 224 |   |
|                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these financial                statements |

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**                                         |       |
|----------------------------------------------------------------------------------------------------------|------------|
| **(A                Development Stage Company)**                                                         |       |
| **Condensed                Consolidated Statements of Operations**                                       |       |
| **(Unaudited)**                                                                                          |       |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |       | **Three                Months Ended****January                31** |   | **Nine                Months Ended****January                31** |   | **For                the period November 15, 2002 (Inception) to** |   |
|                                                                                                     |       | **2006** |   | **2005** |   | **2006** |   | **2005** |   | **January                31,                2006** |   |
| ** **                                                                                               | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |   |   |
| Revenues                                                                                                 |       | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research                and development                                                                  |       |   | 263,410 |   |   | 0 |   |   | 554,682 |   |   | 0 |   |   | 554,682 |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Estimated                charge for acquired in-process                                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| research                and development                                                                  |       |   | 0 |   |   | 0 |   |   | 2,695,054 |   |   | 0 |   |   | 2,695,054 |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General                and administrative:                                                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash                charges for:                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                issued for services                                                              |       |   | 1,081,230 |   |   | 0 |   |   | 1,085,093 |   |   | 0 |   |   | 1,085,093 |   |
| Amortization                of deferred stock compensation                                               |       |   | 21,726 |   |   | 0 |   |   | 38,445 |   |   | 0 |   |   | 38,445 |   |
| Other                                                                                                    |       |   | 243,428 |   |   | 9,447 |   |   | 429,614 |   |   | 13,522 |   |   | 453,890 |   |
| Total                general and administrative                                                          |       |   | 1,346,384 |   |   | 9,447 |   |   | 1,553,152 |   |   | 13,522 |   |   | 1,577,428 |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                operating expenses                                                                  |       |   | 1,609,794 |   |   | 9,447 |   |   | 4,802,888 |   |   | 13,522 |   |   | 4,827,164 |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                loss                                                                            |       |   | (1,609,794 | ) |   | (9,447 | ) |   | (4,802,888 | ) |   | (13,522 | ) |   | (4,827,164 | ) |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                           |       |   | 4,298 |   |   | 0 |   |   | 6,164 |   |   | 0 |   |   | 6,164 |   |
| Interest                expense                                                                          |       |   | (143,883 | ) |   | 0 |   |   | (148,256 | ) |   | 0 |   |   | (148,256 | ) |
| Total                other expense                                                                       |       |   | (139,585 | ) |   | 0 |   |   | (142,092 | ) |   | 0 |   |   | (142,092 | ) |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                  |       |   | ($1,749,379 | ) |   | ($9,447 | ) |   | ($4,944,980 | ) |   | ($13,522 | ) |   | ($4,969,256 | ) |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss per common share:                                                                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted                                                                         |       | $ | (0.10 | ) | $ | (0.00 | ) | $ | (0.12 | ) | $ | (0.00 | ) |   |   |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares of common                                                         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                outstanding:                                                                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted                                                                         |       |   | 17,466,688 |   |   | 79,380,000 |   |   | 41,404,983 |   |   | 79,380,000 |   |   |   |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these financial                statements. |

----

| **FermaVir                    Pharmaceuticals, Inc. and Subsidiary**                                             |
|------------------------------------------------------------------------------------------------------------------|
| **(A                    Development Stage Company)**                                                             |
| **Condensed                    Consolidated Statements of Stockholders' Equity                    (Deficiency)** |
| **(Unaudited)**                                                                                                  |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | **Deficit** | ** ** | ** ** | ** ** |
| ** **                                                                                                       | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | **Deferred** | ** ** | **Accumulated** | ** ** | ** ** | ** ** |
| ** **                                                                                                       | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | **Additional** | ** ** | ** ** | ** ** | **Stock-** | ** ** | **During** | ** ** | ** ** | ** ** |
| ** **                                                                                                       | ** ** | **Preferred                    Stock** | ** ** | **Common                    Stock** | ** ** | **Paid-In** | ** ** | **Subscription** | ** ** | **Based** | ** ** | **Development** | ** ** |   | ** ** |
| ** **                                                                                                       | ** ** | **Shares** | ** ** | **Amount** | ** ** | **Shares** | ** ** | **Amount** | ** ** | **Capital** | ** ** | **Receivable** | ** ** | **Compensation** | ** ** | **Stage** | ** ** | **Total** |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    November 15, 2002 (Inception)                                                        |   |   | 0 |   | $ | 0 |   |   | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock to founders                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                    cash at $0.00003 per share                                                                |   |   |   |   |   |   |   |   | 70,560,000 |   |   | 7,050 |   |   | (5,050 | ) |   | (2,000 | ) |   |   |   |   |   |   |   | 0 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    April 30, 2003                                                                       |   |   | 0 |   |   | 0 |   |   | 70,560,000 |   |   | 7,050 |   |   | (5,050 | ) |   | (2,000 | ) |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Payment                    of subscription receivable                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,000 |   |   |   |   |   |   |   |   | 2,000 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock for cash                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                    $0.0014 per share                                                                          |   |   |   |   |   |   |   |   | 8,820,000 |   |   | 882 |   |   | 11,618 |   |   |   |   |   |   |   |   |   |   |   | 12,500 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (159 | ) |   | (159 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    April 30, 2004                                                                       |   |   | 0 |   |   | 0 |   |   | 79,380,000 |   |   | 7,932 |   |   | 6,568 |   |   | 0 |   |   | 0 |   |   | (159 | ) |   | 14,341 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (24,117 | ) |   | (24,117 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    April 30, 2005                                                                       |   |   | 0 |   |   | 0 |   |   | 79,380,000 |   |   | 7,932 |   |   | 6,568 |   |   | 0 |   |   | 0 |   |   | (24,276 | ) |   | (9,776 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock and warrants                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                    cash at $0.75 per share net of                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| expenses                                                                                                         |   |   |   |   |   |   |   |   | 3,863,527 |   |   | 386 |   |   | 2,864,431 |   |   |   |   |   |   |   |   |   |   |   | 2,864,817 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock and warrants                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                    exchange for note payable                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| with                    a fair value of $1.55 per share                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                    $1.06 per warrant ($23,865)                                                               |   |   |   |   |   |   |   |   | 150,000 |   |   | 15 |   |   | 256,350 |   |   |   |   |   |   |   |   |   |   |   | 256,365 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                    issued in connection with the                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| acquisition                    of FermaVir Research,                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inc.                    valued at $0.70 per share                                                                |   |   |   |   |   |   |   |   | 1,829,000 |   |   | 183 |   |   | 1,280,117 |   |   | (5,600 | ) |   |   |   |   |   |   |   | 1,274,700 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redemption                    and retirement of stock                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                    $0.011 per share                                                                           |   |   |   |   |   |   |   |   | (67,679,977 | ) |   | (6,762 | ) |   | (743,238 | ) |   |   |   |   |   |   |   |   |   |   | (750,000 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of warrants to consultants                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,085,093 |   |   |   |   |   |   |   |   |   |   |   | 1,085,093 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of stock options to consultants                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 504,835 |   |   |   |   |   |   |   |   |   |   |   | 504,835 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of stock options to employee                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 303,348 |   |   |   |   |   | (303,348 | ) |   |   |   |   | 0 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                    of deferred stock-based                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| compensation                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 34,759 |   |   |   |   |   | 34,759 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Stock-based                    compensation                    to directors                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,686 |   |   |   |   |   |   |   |   |   |   |   | 3,686 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                         Net loss                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,944,980 | ) |   | (4,944,980 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    January 31, 2006                                                                     |   |   | 0 |   | $ | 0 |   |   | 17,542,550 |   | $ | 1,754 |   | $ | 5,561,190 |   |   | ($5,600 | ) |   | ($268,589 | ) |   | ($4,969,256 | ) | $ | 319,499 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                    accompanying notes are an integral part of these financial                    statements. |

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**                                          |       |
|-----------------------------------------------------------------------------------------------------------|------------|
| **(A                Development Stage Company)**                                                          |       |
| **Condensed                Consolidated Statement of Cash Flows**                                         |       |
| **(Unaudited)**                                                                                           |       |
|                                                                                                      |       |   | ** ** | **For                the period November 15, 2002 (Inception) to January 31,                2006** |   |
|                                                                                                      |       | ****Nine                Months Ended****January                31 | ** ** |
| ** **                                                                                                | ** ** | **2006** | ** ** | **2005** |   |
|                                                                                                      |       |   |   |   |   |   |   |
| Operating                activities:                                                                      |       |   |   |   |   |   |   |   |   |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                   |       | $ | (4,944,980 | ) | $ | (13,522 | ) | $ | (4,969,256 | ) |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |       |   |   |   |   |   |   |   |   |   |
| Non-cash                charges for:                                                                      |       |   |   |   |   |   |   |   |   |   |
| Write-off                of estimated acquired in-process research and development                        |       |   | 2,695,054 |   |   | 0 |   |   | 2,695,054 |   |
| Issuance                of warrants for services                                                          |       |   | 1,085,093 |   |   | 0 |   |   | 1,085,093 |   |
| Value                of shares and warrants issued in excess of the principal                amount       |       |   |   |   |   |   |   |   |   |   |
| repaid                in connection with a note due to related party                                      |       |   | 143,865 |   |   | 0 |   |   | 143,865 |   |
| Amortization                of deferred stock-based compensation                                          |       |   | 38,445 |   |   | 0 |   |   | 38,445 |   |
| Depreciation                                                                                              |       |   | 2,770 |   |   | 0 |   |   | 2,770 |   |
| Changes                in operating assets and liabilities:                                               |       |   |   |   |   |   |   |   |   |   |
| Decrease                in prepaid expenses                                                               |       |   | 25,300 |   |   | 0 |   |   | 25,300 |   |
| Increase                in deposit                                                                        |       |   | (43,890 | ) |   | 0 |   |   | (43,890 | ) |
| Decrease                in accounts payable and accrued expenses                                          |       |   | (176,937 | ) |   | 0 |   |   | (166,937 | ) |
| Increase                in deferred rent                                                                  |       |   | 10,341 |   |   | 0 |   |   | 10,341 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Net                cash used in operating activities                                                      |       |   | (1,164,939 | ) |   | (13,522 | ) |   | (1,179,215 | ) |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Investing                activities:                                                                      |       |   |   |   |   |   |   |   |   |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Purchase                of property and equipment                                                         |       |   | (27,052 | ) |   | 0 |   |   | (27,052 | ) |
| Cash                acquired in acquisition                                                               |       |   | 27,156 |   |   | 0 |   |   | 27,156 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Net                cash provided by investing activities                                                  |       |   | 104 |   |   | 0 |   |   | 104 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Financing                activities:                                                                      |       |   |   |   |   |   |   |   |   |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Proceeds                from sale of common stock net of expenses                                         |       |   | 2,864,817 |   |   | 0 |   |   | 2,879,317 |   |
| Redemption                of common stock                                                                 |       |   | (400,000 | ) |   | 0 |   |   | (400,000 | ) |
| Repayment                of notes payable to related party                                                |       |   | (940,720 | ) |   | 0 |   |   | (940,720 | ) |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Net                cash provided by financing activities                                                  |       |   | 1,524,097 |   |   | 0 |   |   | 1,538,597 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Net                change in cash                                                                         |       |   | 359,262 |   |   | (13,522 | ) |   | 359,486 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Cash                - Beginning of period                                                                 |       |   | 224 |   |   | 14,341 |   |   | 0 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Cash                - End of period                                                                       |       | $ | 359,486 |   | $ | 819 |   | $ | 359,486 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash investing and financing activities:                    |       |   |   |   |   |   |   |   |   |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock in business combination                                           |       | $ | 1,280,300 |   |   | 0 |   | $ | 1,280,300 |   |
| Assumption                of consultants' options in connection with business                combination  |       |   | 504,835 |   |   | 0 |   |   | 504,835 |   |
| Assumption                of employee options in connection with business                combination      |       |   | 303,348 |   |   | 0 |   |   | 303,348 |   |
| Net                liabilities assumed in business combination                                            |       |   | 785,992 |   |   | 0 |   |   | 785,992 |   |
| Note                payable issued in connection with redemption of shares                                |       |   | 350,000 |   |   | 0 |   |   | 350,000 |   |
| Shares                and warrants issued in connection with repayment of note                payable     |       |   | 112,500 |   |   | 0 |   |   | 112,500 |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
|                                                                                                      |       |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these financial                statements   |

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

**1)    **
**Business**

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

**2)    **
**Basis      of Presentation and Significant Accounting Policies**

***Basis      of Presentation***

***Use      of Estimates***

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

***Property      and Equipment***

***Research      and Development***

***Stock-Based      Compensation***

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

**3)    **
**Acquisition      of FermaVir Research, Inc.**

| Assets                acquired:                                                    |   |   |      |   |
|------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|     Cash                                                       |   | $      | 27,156    |   |
|     Acquired                in-process research and dvelopment |   |   | 2,695,054 |   |
|     Deferred                stock-based compensation           |   |   | 303,348   |   |
|     Prepaid                expenses                            |   |   | 52,270    |   |
|     Other                current assets                        |   |   | 5,600     |   |
|                                                                               |   |   | 3,083,428 |   |

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

| Liabilities                assumed:                                          |   |   |      |   |
|------------------------------------------------------------------------------|--------|--------|-----------|--------|
|     Accounts                payable and accrued expenses |   |   | 140,642   |   |
|     Note                payable                          |   |   | 703,220   |   |
|                                                                         |   |   | 843,862   |   |
|                                                                         |   |   |      |   |
| Purchase                price                                                |   | $      | 2,239,566 |   |

|                                         |       |       | **Three                Months                Ended** | ** ** | ** ** | **Nine                Months                Ended** | ** ** |
|----------------------------------------------|------------|------------|------------------------------------------------------|------------|------------|-----------------------------------------------------|------------|
| ** **                                   | ** ** | ** ** | **January                31,**                       | ** ** | ** ** | **January                31,**                      | ** ** |
| ** **                                   | ** ** | ** ** | **2005**                                             | ** ** | ** ** | **2006**                                            | ** ** | ** ** | **2005** | ** ** | ** ** | **2006** |   |
|                                         |       |       |                                                 |       |       |                                                |       |   |   |   |   |   |   |
| Net                loss                      |       |       | ($                14,697)                            |       |       | ($                1,750,300)                        |       |   | ($                29,272) |   |   | ($                2,257,241) |   |
|                                         |       |       |                                                 |       |       |                                                |       |   |   |   |   |   |   |
| Weighted                average number of    |       |       |                                                 |       |       |                                                |       |   |   |   |   |   |   |
| common                shares outstanding     |       |       | 16,354,023                                           |       |       | 17,466,688                                          |       |   | 16,354,023 |   |   | 16,742,644 |   |
|                                         |       |       |                                                 |       |       |                                                |       |   |   |   |   |   |   |
| Loss                per common share - Basic |       |       |                                                 |       |       |                                                |       |   |   |   |   |   |   |
| and                fully diluted             |       |       | Nil                                                  |       |       | ($0.10)                                             |       |   | Nil |   |   | ($                0.13) |   |

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

**4)    **
**Property      and Equipment:**

| Furniture                                    |   | $      | 10,760 |   |
|----------------------------------------------|--------|--------|--------|--------|
| Equipment                                    |   |   | 16,292 |   |
|                                         |   |   | 27,052 |   |
| Less                accumulated depreciation |   |   | (2,770 | )      |
| Property                and equipment, net   |   | $      | 24,282 |   |

**5)    **
**Licensing      Agreement and Commitments**

**6)    **
**Notes      Payable to Related Party**

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

**7)    **
**Stockholders'      Equity**

***Stock      Split***

***Financing      Activities***

| a) | The                Company issued 2,825,000 shares of common stock and warrants to purchase                423,750 shares of common stock to new investors and received net                proceeds                of $2,092,486 at a price of $.75 per share. The warrants expire on                August                16, 2010 and have an exercise price of $1.50 per share;                and |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | The                Company redeemed and cancelled 67,679,977 common shares held by a                related                party for total consideration of $750,000 consisting of $400,000                in cash                and the issuance of a $350,000 promissory note to that related party                as                previously described in Note 6. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

**8)    **
**Stock      Options and Warrants**

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

----

| **FermaVir                Pharmaceuticals, Inc. and Subsidiary**        |
|-------------------------------------------------------------------------|
| **(A                Development Stage Company)**                        |
| **Notes                to Condensed Consolidated Financial Statements** |
| **(Unaudited)**                                                         |

| Dividend                yield          |   |   | 0                           | %      |
|----------------------------------------|--------|--------|-----------------------------|--------|
| Risk-free                interest rate |   |   | 4.0%                to 4.5  | %      |
| Volatility                             |   |   | 80%                to 82    | %      |
| Expected                life           |   |   | 3                to 5 years |   |

**9)    **
**Consulting      Agreement With Related Party**

**10)   **
**Commitments**

----

**Item      2:  **
**Management’s      Discussion and Analysis or Plan of Operation**

**Overview**

**Plan      of Operation**

----

**Results      of Operations - Three Months Ended January 31, 2006 Compared To The Three Months      Ended January 31, 2005**

**Results      of Operations - Nine Months Ended January 31, 2006 Compared To The Nine Months      Ended January 31, 2005**

----

**Liquidity      and Capital Resources**

----

| a)     | On                August 16, 2005,                we                issued 2,825,000 shares of common stock and warrants to purchase                423,750                shares of common stock to new investors and received net proceeds                of                $2,092,486 at a price of $.75 per share. The warrants expire on August                16,                2010 and have an exercise price of $1.50 per share;                                                                                                                                                                                                                                                                                                                              |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b)     | On                August 16, 2005,                we                redeemed and cancelled 67,679,977 common shares held by a related                party                for total consideration of $750,000 consisting of $400,000 in cash                and the                issuance of a $350,000 promissory note to that related party. On                October                24, 2005, we repaid principal of $234,655. On November 4, 2005, $112,500                of the remaining principal amount due under this note was repaid                to a                related party through the issuance of our common stock as described                below                and we repaid the remaining outstanding principal in                cash; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| c)     | On                October 24, 2005, we issued 699,193 shares of common stock and warrants                to                purchase 104,879 shares of common stock and received net proceeds                of                $520,831 at a price of $.75 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| d)     | On                November 4, 2005, we issued 153,334 shares of common stock and warrants                to                purchase 23,000 shares of common stock and received net proceeds                of                $113,000 at a price of $.75 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| e)     | On                November 4, 2005, we issued 150,000 shares of common stock and warrants                to                purchase 22,500 shares of common stock for consideration of $112,500                at a                price of $.75 per share. Consideration for this transaction was the                repayment of $112,500 due to a related party under the terms of a                promissory note as described above; and                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| f)     | On                December 1, 2005, we issued 186,000 shares of common stock and warrants                to                purchase 27,900 shares of common stock and received net proceeds                of                $138,500 at a price of $.75 per                share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

| Proceeds                from the sale of common stock net of expenses |   |   | 2,864,817  |   |
|-----------------------------------------------------------------------|--------|--------|------------|--------|
| Redemption                of common stock                             |   |   | (400,000   | )      |
| Repayment                of notes payable to a related party          |   |   | (940,720   | )      |
| Operating                activities                                   |   |   | (1,164,939 | )      |
| Investing                activities                                   |   |   | 104        |   |
|                                                                  |   | $      | 359,262    |   |

----

**Critical      Accounting Policies**

----

| **a)** | **Accounting                for Acquisitions**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | We                account for our acquisitions utilizing the purchase method in accordance                with Statement of Financial Accounting Standards No. 141 “Business                Combinations”. Under the purchase method, assets acquired and liabilities                assumed by the Company are recorded at their estimated fair values                as of                the date of acquisition and the results of operations of the acquired                company are consolidated with those of the Company from the date                of                acquisition.                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **b)** | **Accounting                for Stock-Based Compensation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | We                account for our stock options and warrants using the fair value method                promulgated by Statement of Financial Accounting Standards No. 123                “Share-Based Payment” which addresses the accounting for transactions in                which an entity exchanges its equity instruments for goods or services.                Therefore, our results include non-cash compensation expense as a                result                of the issuance of stock options and warrants and we expect to record                additional non-cash compensation expense in the future. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **c)** | **Research                and Development Expense**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | We                account for our research and development costs in accordance with                Statement of Financial Accounting Standards No. 2, “Accounting for                Research and Development Costs” and related interpretations. This guidance                requires that all research and development costs be expensed as                incurred.                                                                                                                                                                                                                                                      |

**Item      3:    Controls and Procedures**

----

----

**PART      II - OTHER INFORMATION**

**Item 6:    Exhibits**

| 31.1   | Certification                of Chief Executive Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a)                under the Exchange Act.                                                                  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                          |
| 31.2   | Certification                of Chief Financial Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a)                under the 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. |

**SIGNATURE**

|                                                |                                                                                                   |                                                     |
|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------|----------------------------------------------------------|
| Date: March              17,              2006 | **FERMAVIR              PHARMACEUTICALS, INC.**                                                        |
|                                                |                                                                                                   |                                                     |
|                                                | By:                                                                                               | /s/ Geoffrey W. Henson                                   |
|                                                |                                                                                                   | Geoffrey              W. Henson, Chief Executive Officer |
|                                           |                                                                                              |                                                     |
|                                                | By:                                                                                                    | /s/              Frederick Larcombe                      |
|                                                | Frederick Larcombe, Chief Financial Officer(Principal Financial and Accounting                Officer) |
|                                                |                                                                                                        |

----