U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended June 30, 2006

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

                        For the transition period from to

                        Commission file number 000-52021

                          Heratsi Pharmaceuticals, Inc.
        (Exact name of small business issuer as specified in its charter)


                 Delaware                              33-1131290
     -------------------------------              ---------------------
     (State or other jurisdiction of                (I.R.S. employer
      incorporation or organization)              identification number)

     933 Mamaroneck Avenue, Suite 103
     Mamaroneck, NY                                        10543
     ----------------------------------------            ---------
     (Address of principal executive offices)            (Zip Code)

                     Issuer's telephone number: 914-715-0567

                                    No change
                   ------------------------------------------
                     (Former name, former address and former
                   fiscal year, if changed since last report)

<PAGE>

      Check  whether  the issuer (1) filed all  reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X No.

      Check  whether the issuer is a shell  company (as defined in Rule 12b-2 of
the Exchange Act). Yes |X| No |_|

                      APPLICABLE ONLY TO CORPORATE ISSUERS

      State the number of shares  outstanding of each of the issuer's classes of
common equity, as of the latest  practicable  date:  14,000,000 shares of Common
Stock, par value $ .0001 per share, outstanding as of September 7, 2006.

Transitional Small Business Disclosure Format (Check one): YES |_| NO |X|

<PAGE>

                          HERATSI PHARMACEUTICALS, INC.

                                    - INDEX -

                                                                            Page
                                                                            ----
PART I - FINANCIAL INFORMATION:

Balance Sheet as of June 30, 2006 (unaudited)                                F-1

Statements of Operations for the Cumulative Period from Inception            F-2
     (January 24, 2006) through June 30, 2006 (unaudited) and the
     three months ended June 30, 2006

Statement of Stockholder's Deficiency for the Period from Inception          F-3
     (January 24, 2006) through June 30, 2006 (unaudited)

Statements of Cash Flows for the Cumulative Period from Inception            F-4
     (January 24, 2006) through June 30, 2006 (unaudited) and the
     three months ended June 30, 2006

Notes to Unaudited Financial Statements                                      F-5

Item 2.  Management's Discussion and Analysis or Plan of Operation             1

Item 3.  Controls and Procedures                                               1

PART II - OTHER INFORMATION:

Item 1.  Legal Proceedings                                                     2

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

Item 3.  Defaults Upon Senior Securities                                       2

Item 4.  Submission of Matters to a Vote of Security Holders                   2

Item 5.  Other Information                                                     2

Item 6.  Exhibits                                                              2

Signatures                                                                     3


<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                          HERATSI PHARMACEUTICALS, INC.
                           A Development Stage Company
                                  BALANCE SHEET

                                     Assets

                                                            June 30,2006
                                                            (Unaudited)
                                                            -----------

Current Assets
   Cash                                                      $  4,141
                                                             --------

      Total Assets                                           $  4,141
                                                             ========


         Liabilities and Stockholder's (Deficiency)

Current Liabilities
   Accounts payable and accrued expenses                     $  2,943

Notes payable - stockholder                                    31,100
                                                             --------

      Total Liabilities                                        34,043
                                                             --------

Stockholder's Deficiency
   Preferred stock, $.0001 par value, 10,000,000
      shares authorized; none outstanding                          --
   Common stock, $.0001 par value; 125,000,000 shares
      authorized; 14,000,000 shares issued and outstanding      1,400
   Deficit accumulated during the development stage           (31,302)
                                                             --------

      Total Stockholder's (Deficiency)                        (29,902)
                                                             --------

      Total Liabilities and Stockholder's (Deficiency)       $  4,141
                                                             ========

                  See notes to unaudited financial statements.

                                      F-1
<PAGE>

                          HERATSI PHARMACEUTICALS, INC.
                           A Development Stage Company
                            STATEMENTS OF OPERATIONS

                                                             FOR THE PERIOD
                                                            JANUARY 24, 2006
                                     THREE MONTHS ENDED       (INCEPTION)
                                       JUNE 30, 2006     THROUGH JUNE 30, 2006
                                        (UNAUDITED)           (UNAUDITED)
                                      ----------------      ----------------

Revenue                               $             --      $             --

General and administrative expenses            (15,859)              (30,859)
                                      ----------------      ----------------

Loss before interest expense                   (15,859)              (30,859)

Interest expense                                  (317)                 (443)
                                      ----------------      ----------------

   Net loss                           $        (16,176)     $        (31,302)
                                      ================      ================


Basic and diluted net loss per
   share                              $          (0.00)     $          (0.00)
                                      ================      ================

Weighted average common shares
   outstanding                              14,000,000            12,848,101
                                      ================      ================

                  See notes to unaudited financial statements.

                                      F-2
<PAGE>

                          HERATSI PHARMACEUTICALS, INC.
                           A Development Stage Company
                      STATEMENT OF STOCKHOLDER'S DEFICIENCY
        FOR THE PERIOD JANUARY 24, 2006 (Inception) THROUGH JUNE 30, 2006

<TABLE>
<CAPTION>
                                                         Deficit
                                                       Accumulated
                                  Common Stock          During the        Total
                           -------------------------   Development    Stockholder's
                             Shares        Amount         Stage       (Deficiency)
                           -----------   -----------   -----------    -----------
<S>                        <C>           <C>           <C>            <C>
Balance, January 24,
   2006(inception)                  --   $        --   $        --    $        --

Issuance of 14,000,000
   Shares of common
   stock                    14,000,000         1,400            --          1,400

Net loss - January 24,
   2006 through June 30,
   2006 (Unaudited)                 --            --       (31,302)       (31,302)
                           -----------   -----------   -----------    -----------

Balance, June 30, 2006
   Unaudited)               14,000,000   $     1,400   $   (31,302)   $   (29,902)
                           ===========   ===========   ===========    ===========
</TABLE>

                  See notes to unaudited financial statements.

                                      F-3
<PAGE>

                          HERATSI PHARMACEUTICALS, INC.
                           A Development Stage Company
                            STATEMENTS OF CASH FLOWS

                                                             FOR THE
                                                             PERIOD
                                                           JANUARY 24,
                                                              2006
                                            THREE MONTHS   (INCEPTION)
                                               ENDED         THROUGH
                                           JUNE 30, 2006  JUNE 30, 2006
                                             (UNAUDITED)    (UNAUDITED)
                                             -----------    -----------

Cash flows from operating activities:

   Net loss                                    $(16,176)   $(31,302)
   Changes in assets and liabilities
      Increase in accounts payable and
      accrued expenses                              317       2,943
                                               --------    --------

   Net cash used in operating activities        (15,859)    (28,359)
                                               --------    --------


Cash flows from financing activities:


   Proceeds from notes payable - stockholder         --      31,100
   Proceeds from issuance of common stock            --       1,400
                                               --------    --------

   Net cash provided by financing activities         --      32,500
                                               --------    --------

Increase (decrease) in cash                     (15,859)      4,141

Cash, beginning of period                        20,000          --
                                               --------    --------

Cash, end of period                            $  4,141    $  4,141
                                               ========    ========

                  See notes to unaudited financial statements.

                                      F-4
<PAGE>


                          HERATSI PHARMACEUTICALS,INC.
                           A Development Stage Company
                          NOTES TO FINANCIAL STATEMENTS
                                 JUNE 30, 2006
                                   (UNAUDITED)

NOTE 1 - ORGANIZATION

      Heratsi  Pharmaceuticals,  Inc. (the  "Company") was  incorporated  in the
      state of Delaware on January 24, 2006.

      From  inception  through  June  30,  2006,  the  Company  has  been in the
      development  stage,  developing  its business  plans and raising  capital.
      There have been no operations or revenue since inception.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Basis of Presentation

      The  accompanying  financial  statements  have been prepared  assuming the
      Company will continue as a going concern.  Management  plans to issue more
      shares of common  stock in order to raise  money and to continue to borrow
      funds from the existing stockholders.

      Use of Estimates

      The  preparation  of financial  statements in conformity  with  accounting
      principles  generally accepted in the United States requires management to
      make estimates and assumptions  that affect the reported amounts of assets
      and liabilities and the disclosure of contingent assets and liabilities at
      the date of the financial  statements and revenues and expenses during the
      reporting period. Actual results could differ from those estimates.

      Cash & Cash Equivalents

      For purposes of the statement of cash flows, the Company  considers highly
      liquid financial  instruments purchased with a maturity of three months or
      less to be cash  equivalents.  At June 30,  2006,  the Company has no cash
      equivalents.

      Income Taxes

      The Company  follows the  provisions of Statement of Financial  Accounting
      Standards Board No. 109, "Accounting for Income Taxes," which requires the
      use of the  liability  method of  accounting  for income taxes by applying
      enacted  statutory  rates  in  effect  at the  balance  sheet  date to the
      differences  between  the tax basis of assets  and  liabilities  and their
      reported  amounts on the financial  statements.  A valuation  allowance is
      provided  when it is more likely  than not that a deferred  tax asset will
      not be realized.  The Company's gross deferred tax asset of  approximately
      $5,000 at June 30, 2006 has been fully  offset by a  valuation  allowance.
      The difference between the statutory tax rate of 15% and the effective tax
      rate of 0% is due to the  capitalization  of the Company's  start up costs
      for tax purposes.

                                      F-5
<PAGE>

                          HERATSI PHARMACEUTICALS,INC.
                           A Development Stage Company
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (UNAUDITED)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

      Loss per Common Share

      Basic net loss per share was computed by dividing net loss for the year by
      the weighted average number of shares outstanding during the year. Diluted
      loss  per  share  includes   potentially   dilutive   securities  such  as
      outstanding  options  and  warrants,  using  various  methods  such as the
      treasury stock method in the determination of dilutive shares  outstanding
      during each  reporting  period The Company  does not have any  potentially
      dilutive instruments.

      Share Based Awards

      The Company  follows the  provisions of Statement No. 123 (revised  2004),
      "Share-Based  Payments" (SFAS 123R).  This Statement  requires entities to
      recognize the cost of employee services received in exchange for awards of
      equity instruments based on the grant-date fair value of those awards with
      limited exceptions. The Company has not issued any shared based awards.

      Financial Instruments

      The carrying amounts of financial instruments,  including cash equivalents
      and accrued expenses  approximates  fair value because of their relatively
      short maturity.  The notes payable to stockholder  approximates fair value
      based on market rates  available to the Company for financing with similar
      terms.

NOTE 3 - NOTES PAYABLE TO STOCKHOLDER

      On  February  6,  2006,  the  Company  entered  into two  promissory  note
      agreements  with  one of its  controlling  stockholders  in the  aggregate
      amount of $31,100. These loans are unsecured and accrue interest at a rate
      of 4.00% per  annum.  The  promissory  notes may be prepaid in whole or in
      part at any time or from time to time prior to the maturity date, which is
      December 31, 2010.

      On July 13, 2006, the Company issued one 4.00% promissory note payable for
      $10,000,  to  Dr.  Anna  Kazanchyan,   the  sole  officer,   director  and
      stockholder of the Company (the "Note"). The Note and all accrued interest
      mature upon completion of a merger, and if no merger is consummated,  then
      the Note will reach maturity on December 31, 2010.

                                      F-6
<PAGE>

                          HERATSI PHARMACEUTICALS,INC.
                           A Development Stage Company
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (UNAUDITED)

NOTE 4 - CAPITAL STOCK

      The total  number  of  shares  of  capital  stock  which  the  Company  is
      authorized  to  issue is  135,000,000,  of which  125,000,000  shares  are
      designated  as common stock at $.0001 par value (the  "Common  Stock") and
      10,000,000  shares are  designated as preferred  stock at $.0001 par value
      (the  "Preferred  Stock").  The Preferred  Stock of the Company shall have
      such  voting  powers,  full or  limited,  or no  voting  powers,  and such
      designations,  preferences,  limitations or  restrictions  as the Board of
      Directors of the Company may determine, from time to time.

      ` Holders of shares of Common Stock shall be entitled to cast one vote for
      each share held at all  stockholder  meetings for all purposes,  including
      the  election  of  directors.  The Common  Stock does not have  cumulative
      voting rights.

      On February 6, 2006, the Company issued  14,000,000 shares of Common Stock
      at a purchase price of $.0001 per share.

NOTE 5 - INTERIM FINANCIAL STATEMENTS

      The accompanying  Interim  Financial  Statements of the Company as of June
      30, 2006,  for the three months then ended and for the period  January 24,
      2006  (Inception)  to June 30, 2006 have been prepared in accordance  with
      accounting  principles  generally accepted for interim financial statement
      presentation  and in accordance  with the  instructions to Regulation S-B.
      Accordingly,  they do not include  all of the  information  and  footnotes
      required by accounting  principles generally accepted in the United States
      of America for complete financial statement  presentation.  In the opinion
      of  management,  all  adjustments  for a fair  statement of the results of
      operations and financial  position for the interim  period  presented have
      been included. All such adjustments are of a normal recurring nature. This
      financial  information  should be read in  conjunction  with the Financial
      Statements and notes thereto  included in the Company's Form 10-SB for the
      period  January 24, 2006  (inception)  through March 31, 2006.  There have
      been no changes in significant accounting policies since March 31, 2006.


                                      F-7
<PAGE>

Item 2.  Management's Discussion and Analysis or Plan of Operation.

      Plan  of  Operation.  The  Company  has not  realized  any  revenues  from
operations since January 24, 2006 (inception), and its plan of operation for the
next  twelve  months  shall  be to  continue  its  efforts  to  locate  suitable
acquisition  candidates.  The  Company  can  provide  no  assurance  that it can
continue to satisfy its cash requirements for at least the next twelve months.

      Results of Operations. The Company has not conducted any active operations
since  inception,   except  for  its  efforts  to  locate  suitable  acquisition
candidates.  No revenue has been  generated by the Company from January 24, 2006
(inception)  to June 30, 2006. It is unlikely the Company will have any revenues
unless it is able to effect an acquisition, or merger with an operating company,
of which there can be no assurance.

Item 3.  Controls and Procedures.

Evaluation of disclosure controls and procedures.

We maintain  disclosure controls and procedures that are designed to ensure that
information  required  to be  disclosed  in our  reports  filed  pursuant to the
Securities  Exchange Act of 1934, as amended (the "Exchange  Act"), is recorded,
processed,  summarized  and reported  within the time  periods  specified in the
Securities and Exchange  Commission's rules,  regulations and related forms, and
that such  information  is  accumulated  and  communicated  to the our principal
executive  officer and principal  financial  officer,  as appropriate,  to allow
timely decisions regarding required disclosure.

As of June 30, 2006, we carried out an  evaluation,  under the  supervision  and
with the  participation  of our  management,  including our principal  executive
officer and principal  financial officer, of the effectiveness of the design and
operation of our disclosure  controls and procedures.  Based on this evaluation,
our principal  executive officer and principal  financial officer concluded that
our disclosure controls and procedures were effective.

Changes in internal controls.

There have been no changes in our  internal  controls or in other  factors  that
could significantly affect these controls and procedures during the period ended
June 30, 2006.


                                       1
<PAGE>

                          PART II -- OTHER INFORMATION

Item 1. Legal Proceedings.  To the best knowledge of the officers and directors,
the Company is not a party to any legal proceeding or litigation.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. None.

Item 3. Defaults Upon Senior Securities. None.

Item 4. Submission of Matters to a Vote of Security Holders. None.

Item 5. Other Information.

      On July 13, 2006,  the Company  issued one 4% promissory  note payable for
$10,000, to Dr. Anna Kazanchyan,  the sole officer,  director and stockholder of
the  Company  (the  "Note").  The  Note and all  accrued  interest  mature  upon
completion  of a merger,  and if no merger  is  consummated,  then the Note will
reach maturity on December 31, 2010. . Item 6. Exhibits.

Index to Exhibits

      Exhibit           Description
      -------           -----------

      *3.1              Certificate of Incorporation

      *3.2              By-laws

      31.1              Certification  of  the  Company's   Principal  Executive
                        Officer  and  Principal  Financial  Officer  pursuant to
                        Section  302 of the  Sarbanes-Oxley  Act of  2002,  with
                        respect  to the  registrant's  Quarterly  Report on Form
                        10-QSB for the quarter ended June 30, 2006.

      32.1              Certification  of  the  Company's   Principal  Executive
                        Officer and Principal  Financial  Officer pursuant to 18
                        U.S.C.  Section 1350, as adopted pursuant to Section 906
                        of the Sarbanes Oxley Act of 2002.

*     Filed as an exhibit to the Company's registration statement on Form 10-SB,
      as filed with the Securities and Exchange  Commission on May 26, 2006, and
      incorporated herein by this reference.


                                       2
<PAGE>

                                   SIGNATURES

      Pursuant to the  requirements  of the Securities  Exchange Act of 1934, as
amended, the Registrant has duly caused the Report to be signed on its behalf by
the undersigned thereunto duly authorized.


Date: September 7, 2006                 HERATSI PHARMACEUTICALS, INC.


                                        By: /s/ Anna Kazanchyan, M.D.
                                           -------------------------------------
                                        Name: Anna Kazanchyan, M.D.
                                        Title:   President




                                       3