| 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)             |

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**HERATSI      PHARMACEUTICALS, INC.**

**-      INDEX -**

|                                                                                                                                        |   | Page   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART                I - FINANCIAL INFORMATION:                                                                                              |   |   |   |   |
|                                                                                                                                        |   |   |   |   |
| Balance                Sheet as of March 31, 2007 (unaudited)                                                                               |   |   | F-1    |   |
|                                                                                                                                        |   |   |   |   |
| Statements                of Operations for the three months ended March 31, 2007                                                           |   |   | F-2    |   |
| (unaudited),                the period from January 24, 2006 (Inception) through March 31,                2006                         |   |   |   |   |
| and                the Cumulative Period from Inception (January 24, 2006) through March                31,                2007 (unaudited) |   |   |        |   |
|                                                                                                                                        |   |   |   |   |
| Statement                of Stockholder’s Deficiency for the Period from Inception                                                    |   |   | F-3    |   |
| (January                24, 2006) through March 31, 2007 (unaudited)                                                                        |   |   |   |   |
|                                                                                                                                        |   |   |   |   |
| Statements                of Cash Flows for the three months ended March 31, 2007                                                           |   |   | F-4    |   |
| (unaudited),                the period from January 24, 2006 (Inception) through March 31, 2006                                        |   |   |   |   |
| and                the Cumulative Period from Inception (January 24, 2006) through March                31,                2007 (unaudited) |   |   |        |   |
|                                                                                                                                        |   |   |   |   |
| 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                                                                                                    |   |   | 1      |   |
|                                                                                                                                        |   |   |   |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds                                           |   |   | 1      |   |
|                                                                                                                                        |   |   |   |   |
| Item                3. Defaults Upon Senior Securities                                                                                      |   |   | 1      |   |
|                                                                                                                                        |   |   |   |   |
| Item                4. Submission of Matters to a Vote of Security Holders                                                                  |   |   | 1      |   |
|                                                                                                                                        |   |   |   |   |
| Item                5. Other Information                                                                                                    |   |   | 2      |   |
|                                                                                                                                        |   |   |   |   |
| Item                6. Exhibits                                                                                                             |   |   | 2      |   |
|                                                                                                                                        |   |   |   |   |
| Signatures                                                                                                                                  |   |   | 3      |   |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

| HERATSI                PHARMACEUTICALS, INC. |
|----------------------------------------------|
| (A                Development Stage Company) |
| BALANCE                SHEET                 |

|                                                                      |   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |  MARCH                31, 2007 |   |
|                                                                      |   |  (UNAUDITED) |   |
| Assets                                                                    |   |   |   |   |
| Current                Assets                                             |   |   |   |   |
| Cash                                                                      |   | $ | 747 |   |
|                                                                      |   |   |   |   |
|  Total                Assets                                         |   | $ | 747 |   |
|                                                                      |   |   |   |   |
| Liabilities                and Stockholder's (Deficiency)                 |   |   |   |   |
| Current                Liabilities                                        |   |   |   |   |
| Accrued                expenses                                           |   | $ | 8,500 |   |
|                                                                      |   |   |   |   |
| Other                Liabilities                                          |   |   |   |   |
| Notes                payable - stockholder                                |   |   | 44,600 |   |
| Accrued                interest payable                                   |   |   | 1,657 |   |
|  Total                Other Liabilities                              |   |   | 46,257 |   |
|                                                                      |   |   |   |   |
|  Total                Liabilities                                    |   |   | 54,757 |   |
|                                                                      |   |   |   |   |
| 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           |   |   | (55,410 | ) |
|                                                                      |   |   |   |   |
|  Total                Stockholder's (Deficiency)                     |   |   | (54,010 | ) |
|                                                                      |   |   |   |   |
|  Total                Liabilities and Stockholder's (Deficiency)     |   | $ | 747 |   |

----

| HERATSI                PHARMACEUTICALS, INC. |
|----------------------------------------------|
| (A                Development Stage Company) |
| STATEMENT                OF OPERATIONS       |

|                                                        |   |  THREEMONTHSENDEDMARCH                  31, 2007(UNAUDITED |       | FOR                  THE PERIOD JANUARY                  24, 2006(INCEPTION)THROUGHMARCH                  31, 2006 |   | FOR                  THE PERIOD JANUARY                  24, 2006(INCEPTION)THROUGHMARCH                  31, 2007(UNAUDITED) |   |
|-------------------------------------------------------------|--------|-----------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| Revenue                                                     |   | $                                                               | -          |                                                                                                               | $      | -                                                                                                                             |   | $ | - |   |
|                                                        |   |                                                            |            |                                                                                                               |   |                                                                                                                          |   |   |  |   |
| General                  and administrative expenses        |   | $                                                               | (8,919     | )                                                                                                                  | $      | (15,000                                                                                                                       | )      | $ | (53,753 | ) |
|                                                        |   |                                                            |            |                                                                                                               |   |                                                                                                                          |   |   |  |   |
| Loss                  before interest expense               |   |                                                            | (8,919     | )                                                                                                                  | $      | (15,000                                                                                                                       | )      |   | (53,753 | ) |
|                                                        |   |                                                            |            |                                                                                                               |   |                                                                                                                          |   |   |  |   |
| Interest                  expense                           |   |                                                            | (414       | )                                                                                                                  |   | (126                                                                                                                          | )      |   | (1,657 | ) |
|                                                        |   |                                                            |            |                                                                                                               |   |                                                                                                                          |   |   |  |   |
| Net                  loss                                   |   | $                                                               | (9,333     | )                                                                                                                  | $      | (15,126                                                                                                                       | )      | $ | (55,410 | ) |
|                                                        |   |                                                            |            |                                                                                                               |   |                                                                                                                          |   |   |  |   |
| Basic                  and diluted net loss per share       |   | $                                                               | (0.00      | )                                                                                                                  | $      | (0.00                                                                                                                         | )      |   |  |   |
|                                                        |   |                                                            |            |                                                                                                               |   |                                                                                                                          |   |   |  |   |
| Weighted                  average common shares outstanding |   |                                                            | 14,000,000 |                                                                                                               |   | 11,242,424                                                                                                                    |   |   |  |   |

----

| HERATSI                PHARMACEUTICALS, INC.                                      |
|-----------------------------------------------------------------------------------|
| (A                Development Stage Company)                                      |
| STATEMENT                OF STOCKHOLDER'S DEFICIENCY                              |
| FOR                THE PERIOD JANUARY 24, 2006 (Inception) THROUGH MARCH 31, 2007 |

|                                                                         |   |                        |       | Deficit                   |   |          |   |
|------------------------------------------------------------------------------|--------|-----------------------------|------------|---------------------------|--------|---------------|--------|
|                                                                         |   |                        |       | Accumulated               |   |          |   |
|                                                                         |   |                        |       | During                the |   | Total         |   |
|                                                                         |   | Common                Stock |       | Development               |   | Stockholder's |   |
|                                                                         |   | Shares                      |       | Amount                    |   | Stage         |   | (Deficiency) |   |
| 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 December 31, 2006         |   |                        | -          |                      |   | -             |   |   | (46,077 | ) |   | (46,077 | ) |
|                                                                         |   |                        |       |                      |   |          |   |   |   |   |   |   |   |
| Balance,                December 31, 2006                                    |   |                        | 14,000,000 |                      | $      | 1,400         |   | $ | (46,077 | ) | $ | (44,677 | ) |
|                                                                         |   |                        |       |                      |   |          |   |   |   |   |   |   |   |
| Net                loss - January 1, 2007 through March 31, 2007 (Unaudited) |   |                        | -          |                      |   | -             |   |   | (9,333 | ) |   | (9,333 | ) |
|                                                                         |   |                        |       |                      |   |          |   |   |   |   |   |   |   |
| Balance,                March 31, 2007 (Unaudited)                           |   |                        | 14,000,000 |                      | $      | 1,400         |   | $ | (55,410 | ) | $ | (54,010 | ) |

----

| HERATSI                PHARMACEUTICALS, INC. |
|----------------------------------------------|
| (A                Development Stage Company) |
| STATEMENTS                OF CASH FLOWS      |

|   |   |   | THREEMONTHSENDEDMARCH                  31, 2007(UNAUDITED) |  |   | FOR                  THE PERIODJANUARY                  24, 2006(INCEPTION)THROUGHMARCH                  31, 2006 |   |   | FOR                  THE PERIODJANUARY                  24, 2006(INCEPTIONTHROUGHMARCH                  31, 2007)(UNAUDITED) |    |
|--------|--------|--------|------------------------------------------------------------|--|--------|-------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|--------------|

| Cash                  flows from operating activities:     |   |    |   |   |   |    |   |
|------------------------------------------------------------|--------|--------------|--------|--------|--------|---------|--------|
| Net                  loss                                  |   | $            | (9,333 | )      | $      | (15,126 | )      | $ | (55,410 | ) |
| Changes                  in assets and liabilities         |   |         |        |   |   |    |   |   |  |   |
| Increase                  in accrued expenses              |   |         | 5,000  |   |   |    |   |   | 8,500 |   |
| Increase                  in accrued interest payable      |   |         | 414    |   |   | 2,626   |   |   | 1,657 |   |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Net                  cash used in operating activities     |   |         | (3,919 | )      |   | (12,500 | )      |   | (45,253 | ) |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Cash                  flows from financing activities:     |   |         |        |   |   |    |   |   |  |   |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Proceeds                  from notes payable - stockholder |   |         | 3,500  |   |   | 31,100  |   |   | 44,600 |   |
| Proceeds                  from issuance of common stock    |   |         | -      |   |   | 1,400   |   |   | 1,400 |   |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Net                  cash provided by financing activities |   |         | 3,500  |   |   | 32,500  |   |   | 46,000 |   |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Increase                  (Decrease) in cash               |   |         | (419   | )      |   | 20,000  |   |   | 747 |   |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Cash,                  beginning of period                 |   |         | 1,166  |   |   | -       |   |   | - |   |
|                                                       |   |         |        |   |   |    |   |   |  |   |
| Cash,                  end of period                       |   | $            | 747    |   | $      | 20,000  |   | $ | 747 |   |

----

----

----

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

**Item      3. Controls and Procedures.**

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings.**

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

**Item      3. Defaults Upon Senior Securities.**

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

----

**Item      5. Other Information.**

**Item      6. 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 March 31, 2007. |
|    |   |                                                                                                                                                                                                                                                                                                                                                          |
| 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. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                            |                                                                            |                                                |
|---------------------------------|---------------------------------------------------------------------------------|-----------------------------------------------------|
| Date:              May 15, 2007 | HERATSI PHARMACEUTICALS, INC.                                                   |
|                       |                                                                       |                                           |
|                                 | By:                                                                   | /s/              Anna              Kazanchyan, M.D. |
|                            | Name:                Anna Kazanchyan, M.D.Title:                 President |

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