| 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**:  |                                                                                                        |    |
|                                                |                                                                                                        |    |    |   |    |
| Item                1. Financial Statements:        |                                                                                                        |    |
|                                                |                                                                                                        |    |    |   |    |
|                                                | Balance              Sheet as of June 30, 2007 (Unaudited)                                                  |    | F-1     |
|                                                |                                                                                                        |    |    |   |    |
|                                                | Statements              of Operations (Unaudited) for the Three Months Ended June 30, 2007                  |    | F-2     |
|                                                | and              2006, for the Six Months Ended June 30, 2007, for the Period January              24,      |    |    |
|                                                | 2006              (Inception) Through June 30, 2006 and for the Period January 24,              2006        |    |    |
|                                                | (Inception)              Through June 30, 2007                                                              |    |    |
|                                                |                                                                                                        |    |    |   |    |
|                                                | Statement              of Stockholder’s Deficiency for the Period January 24, 2006 (Inception)        |    | F-3     |
|                                                | Through              June 30, 2007 (Unaudited)                                                              |    |    |
|                                                |                                                                                                        |    |    |   |    |
|                                                | Statements              of Cash Flows for the Six Months Ended June 30, 2007 (Unaudited),                   |    | F-4     |
|                                                | for              the Period January 24, 2006 (Inception) Through June 30, 2006              (Unaudited)     |    |    |
|                                                | and              for the Period January 24, 2006 (Inception) Through June 30, 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                                              |   |
|                                                                      |   |    |   |
|                                                                      |   |
|                                                                      |   |  JUNE                30, 2007 |   |
|                                                                           |   |   (UNAUDITED) |   |
| Assets                                                                    |   |   |   |
| Current                Assets                                             |   |    |   |
| Cash                                                                      |   | $ | 1,606 |   |
|                                                                      |   |   |   |   |
|  Total                Assets                                         |   | $ | 1,606 |   |
|                                                                      |   |   |   |   |
|                                                                      |   |   |   |   |
| Liabilities                and Stockholder's (Deficiency)                 |
|                                                                      |   |   |   |   |
| Current                Liabilities                                        |   |   |   |   |
| Accrued                expenses                                           |   | $ | 1,500 |   |
|                                                                      |   |   |   |   |
| Other                Liabilities                                          |   |   |   |   |
| Notes                payable - stockholder                                |   |   | 59,600 |   |
| Accrued                interest payable                                   |   |   | 2,247 |   |
|  Total                Other Liabilities                              |   |   | 61,847 |   |
|                                                                      |   |   |   |   |
|  Total                Liabilities                                    |   |   | 63,347 |   |
|                                                                      |   |   |   |   |
| 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           |   |   | (63,141 | ) |
|                                                                      |   |   |   |   |
|  Total                Stockholder's (Deficiency)                     |   |   | (61,741 | ) |
|                                                                      |   |   |   |   |
|  Total                Liabilities and Stockholder's (Deficiency)     |   | $ | 1,606 |   |

----

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

|                                                  |   |                                          |       |                             |   |                              |   | FOR                  THE PERIOD   |       | FOR                  THE  PERIOD |   |
|-------------------------------------------------------|--------|-----------------------------------------------|------------|----------------------------------|--------|-----------------------------------|--------|-----------------------------------|------------|--------------------------------------------|--------|
|                                                  |   |                                          |       |                             |   |                              |   | JANUARY                  24, 2006 |       |  JANUARY24,                  2006     |   |
|                                                  |   |                                          |       | FOR                      THE SIX |   | (INCEPTION)                       |   | (INCEPTION)                       |       |
|                                                  |   | FOR                    THE THREE MONTHS ENDED |       | MONTHSENDED                      |   | THROUGH                  JUNE 30, |   | THROUGHJUNE                  30,  |       |
|                                                  |   | JUNE                  30, 2007                |       | JUNE                  30, 2006   |   | JUNE                  30, 2007    |   | 2006                              |       | 2007                                       |   |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |
| Revenue                                               |   | $                                             | -          |                             | $      | -                                 |   | $                                 | -          |                                       | $      | - |   | $ | - |   |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| General                  and administrative expenses  |   |                                          | 7,141      |                             |   | 15,859                            |   |                              | 16,060     |                                       |   | 30,859 |   |   | 60,894 |   |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| Loss                  before interest expense         |   |                                          | (7,141     | )                                |   | (15,859                           | )      |                              | (16,060    | )                                          |   | (30,859 | ) |   | (60,894 | ) |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| Interest                  expense                     |   |                                          | 590        |                             |   | 317                               |   |                              | 1,004      |                                       |   | 443 |   |   | 2,247 |   |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| Net                  loss                             |   | $                                             | (7,731     | )                                | $      | (16,176                           | )      | $                                 | (17,064    | )                                          | $      | (31,302 | ) | $ | (63,141 | ) |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| Basic                  and diluted net loss per share |   | $                                             | (0.00      | )                                | $      | (0.00                             | )      | $                                 | (0.00      | )                                          | $      | (0.00 | ) |   |   |   |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| Weighted                  average common shares       |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |
| outstanding                                           |   |                                          | 14,000,000 |                             |   | 14,000,000                        |   |                              | 14,000,000 |                                       |   | 12,848,101 |   |   |   |   |
|                                                  |   |                                          |       |                             |   |                              |   |                              |       |                                       |   |   |   |   |   |   |

----

| HERATSI                PHARMACEUTICALS, INC.                                               |   |
|--------------------------------------------------------------------------------------------|--------|
| (A                Development Stage Company)                                               |   |
| STATEMENT                OF STOCKHOLDER'S DEFICIENCY                                       |   |
| FOR                THE PERIOD JANUARY 24, 2006 (Inception) THROUGH JUNE 30, 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 June 30, 2007                (Unaudited) |   |   | - |   |   | - |   |   | (17,064 | ) |   | (17,064 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                June 30, 2007 (Unaudited)                                          |   |   | 14,000,000 |   | $ | 1,400 |   | $ | (63,141 | ) | $ | (61,741 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| HERATSI                PHARMACEUTICALS, INC.             |   |
|----------------------------------------------------------|--------|
| (A                Development Stage Company)             |   |
| STATEMENTS                OF CASH FLOWS                  |   |
|                                                     |   |   |   |   |   |   |   |
|                                                     |   |   |   | FOR                THE PERIOD |   | FOR                THE PERIOD |   |
|                                                     |   |   |   | JANUARY                24, 2006 |   | JANUARY                24, 2006 |   |
|                                                     |   | SIX                MONTHS |   | (INCEPTION) |   | (INCEPTION) |   |
|                                                     |   | ENDED                JUNE                30, 2007 |   | THROUGH                JUNE 30, 2006 |   | THROUGH                JUNE 30, 2007 |   |
|                                                     |   | (UNAUDITED) |   | (UNAUDITED) |   | (UNAUDITED) |   |
| Cash                flows from operating activities:     |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |
| Net                loss                                  |   | $ | (17,064 | ) | $ | (31,302 | ) | $ | (63,141 | ) |
| Changes                in assets and liabilities         |   |   |   |   |   |   |   |   |   |   |
| Increase                (Decrease) in accrued expenses   |   |   | (2,000 | ) |   | 2,943 |   |   | 1,500 |   |
| Increase                in accrued interest payable      |   |   | 1,004 |   |   | - |   |   | 2,247 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                cash used in operating activities     |   |   | (18,060 | ) |   | (28,359 | ) |   | (59,394 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                flows from financing activities:     |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Proceeds                from notes payable - stockholder |   |   | 18,500 |   |   | 31,100 |   |   | 59,600 |   |
| Proceeds                from issuance of common stock    |   |   | - |   |   | 1,400 |   |   | 1,400 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                cash provided by financing activities |   |   | 18,500 |   |   | 32,500 |   |   | 61,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Increase                in cash                          |   |   | 440 |   |   | 4,141 |   |   | 1,606 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash,                beginning of period                 |   |   | 1,166 |   |   | - |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash,                end of period                       |   | $ | 1,606 |   | $ | 4,141 |   | $ | 1,606 |   |

----

----

----

----

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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, as filed with the Delaware Secretary of State                  on January                  24, 2006.                                                                                                                                                                                                          |
|                         |   |                                                                                                                                                                                                                                                                                                                                                         |
| *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, 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**

|                               |                                     |                                        |
|------------------------------------|------------------------------------------|---------------------------------------------|
|                               | HERATSI PHARMACEUTICALS, INC.            |
|                          |                                |                                   |
| Date:              August 13, 2007 | By:                            | /s/ Anna              Kazanchyan, M.D. |
|                               | Name:              Anna Kazanchyan, M.D. |
|                               | Title: President                         |

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