UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 8-K

                                 Current Report
     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported): January 11, 2005



                           DRAGON PHARMACEUTICAL INC.
                           --------------------------
             (Exact name of registrant as specified in its charter)


           Florida                         0-27937               65-0142474
           -------                         -------               ----------
State or Other Jurisdiction of    (Commission File Number)      (IRS Employer
        Incorporation)                                       Identification No.)


      1055 Hastings Street, Suite 1900
         Vancouver, British Columbia                      V6E 2E9
        ----------------------------                      -------
  (Address of Principal Executive Offices)               (Zip Code)


                                 (604) 669-8817
                                 --------------
              (Registrant's telephone number, including area code)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)

[ ]  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[ ]  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))

<PAGE>


Item 2.01 Completion of Acquisition or Disposition of Assets

     On June 11, 2004, Dragon Pharmaceutical Inc. (the "Company"), Oriental Wave
Holding Ltd.  ("Oriental  Wave") and Mr. Yanlin Han, Mr.  Zhanguao Weng, and Ms.
Xuemei Liu entered into a Share Purchase Agreement. Under the terms of the Share
Purchase Agreement, Mr. Han, Mr. Weng and Ms. Liu would receive in the aggregate
shares of common stock equal to 68.35% of the Company's outstanding common stock
after  consummation  of the  acquisition of Oriental Wave in exchange for all of
their shares of Oriental Wave. In addition,  Mr. Han, Mr. Weng and Ms. Liu would
also receive  additional  shares of common  stock  ("Additional  Dragon  Closing
Shares")  such that they will  continue  to own 68.35% of the  Company's  common
stock if all of the  Company's  outstanding  options  and  warrants  to purchase
common stock as of the date of the closing are exercised.

     On January 11, 2005,  the  Company's  shareholders  approved two  proposals
related  to the  acquisition  of  Oriental  Wave.  The  terms of Share  Purchase
Agreement,   financial  statements  for  the  Company  and  Oriental  Wave,  and
description of the proposals were described in a proxy  statement dated December
8, 2004.  The closing of the  acquisition of Oriental Wave pursuant to the Share
Purchase  Agreement  occurred  on January  12,  2005.  Under  terms of the Share
Purchase  Agreement,  Mr. Han,  Mr. Weng and Ms. Liu  received in the  aggregate
44,502,004  shares of common  stock of which  26,533,405  shares are  subject to
escrow.  The shares of common stock held in escrow will be released on the first
and second  anniversary dates of the close provided that the Company has made no
claims against Oriental Wave and its shareholders for misrepresentations made in
the Share Purchase  Agreement.  Mr. Han, Mr. Weng and Ms. Liu will retain voting
rights of those  shares  held in  escrow.  In  addition,  pursuant  to the Share
Purchase  Agreement,  Mr.  Han,  Mr.  Weng  and Ms.  Liu  collectively  received
4,282,402 Additional Dragon Closing Shares. The Additional Dragon Closing Shares
are being held in escrow and may be released or  cancelled  depending on whether
or not certain of the Company's options or warrants  outstanding as of the close
have been subsequently  exercised or expired. Mr. Han, Mr. Weng and Ms. Liu will
have no voting rights or dispositive  powers over the Additional  Dragon Closing
Shares  while  they  are held in  escrow,  and they  will  not be  deemed  to be
outstanding unless they are released from escrow.

Item 3.02 Unregistered Sales of Equity Securities.

     On January 12,  2005,  the Company  completed  the  acquisition  of all the
outstanding shares of Oriental Wave pursuant to the Share Purchase Agreement. In
connection with the  acquisition,  the Company issued an aggregate of 44,502,004
shares of common stock and 4,282,402 shares of Additional  Dragon Closing Shares
as follows:

---------------------- ------------------ --------------------------------------
Name                   Common Stock       Additional Dragon Closing Shares
---------------------- ------------------ --------------------------------------
Yanlin Han             31,151,403                   2,997,682
---------------------- ------------------ --------------------------------------
Zhanguao Weng           8,900,401                     856,480
---------------------- ------------------ --------------------------------------
Xuemei Liu              4,450,200                     428,240
---------------------- ------------------ --------------------------------------

     The issuance of the shares of common stock and  Additional  Dragon  Closing
Shares by the  Company to Mr. Han,  Mr.  Weng and Ms. Liu  pursuant to the Share
Purchase Agreement was exempt from registration upon reliance of Regulation S.

                                        2
<PAGE>

Item 5.01 Changes in Control of Registrant

     (a) As a result of the consummation of the Share Purchase Agreement,  there
has been a change in  control  of the  registrant.  Mr.  Han  beneficially  owns
31,151,403 shares of common stock, or 47.8% of the outstanding  common stock, of
which  18,573,384  shares are  subject to escrow.  Mr.  Weng  beneficially  owns
8,900,401 shares of common stock, or 13.7 % of the outstanding  common stock, of
which  5,306,681  shares  are  subject  to escrow.  Ms.  Liu  beneficially  owns
4,650,200  shares of common stock, or 7.1% of the  outstanding  common stock, of
which 2,653,340 shares are subject to escrow.

     (b) The following  table shows the amount of our common stock  beneficially
owned (unless  otherwise  indicated) by each  shareholder  known by us to be the
beneficial  owner of more than 5% of our common stock,  by each of our executive
officers and directors as of January 12, 2005.

<TABLE>
<CAPTION>
<S>      <C>                                                <C>                             <C>

-------------------------------------------------------------------------------------------------------
                                                                 Share Beneficially Owned
                                                 ------------------------------------------------------
                                                 ------------------------      ------------------------
Name and Address of Beneficial Owner                         Number                     Percent
                                                 ------------------------      ------------------------
Maggie Deng, Chief Operating Officer                         200,000(1)                       *
Garry Wong, Chief Financial Officer                          200,000(1)                       *
Alexander Wick, President and Director                       975,000(2)                     1.4%
Yiu Kwong Sun, Director                                      975,000(3)                     1.4%
Yanlin Han, Chief Executive Officer & Director            31,151,403                       47.8%
Zhangou Weng, Vice President, China
  Operation & Director                                     8,900,401                       13.7%
Xuemei Liu, Director                                       4,650,200(4)                     7.1%
-------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
* Less than one percent.
(1)  Represents  options to purchase shares of common stock  exercisable  within
     sixty days.

(2)  Includes options to purchase 675,000 shares exercisable within sixty days.

(3)  Includes   options  to  purchase  275,000  shares  of  common  stock  owned
     exercisable within sixty days. Also includes 100,000 shares of common stock
     directly  owned and 600,000  shares of common  stock owned by Yukon  Health
     Enterprises for which Mr. Sun serves as a director.

(4)  Includes options to purchase 200,000 shares of common stock.

Item 5.02 Departure of Directors of Principal  Officers;  Election of Directors;
Appointment of Principal Officers.

     Pursuant to the Share Purchase Agreement, on January 12, 2005, Mr. Han, Mr.
Weng and Ms. Liu were appointed to the Company's Board of Directors. Mr. Han was
also elected as Chairman of the Board.  The  Company's  Board of  Directors  now
consists of five directors  including Dr. Wick and Dr. Sun who were reelected to
the Board at the annual meeting of shareholders held on January 11, 2005.

                                        3
<PAGE>

     In  addition,  effective  January 12, 2005,  the  following  officers  were
appointed to the Company:

         Chief Executive Officer:          Mr. Han
         President:                        Dr. Wick
         Vice President, China Operation:  Mr. Weng
         Chief Operating Officer:          Ms. Maggie Deng
         Chief Financial Officer:          Mr. Garry Wong

     As description of Mr. Han, Dr. Wick and Mr. Weng was in the Company's proxy
statement dated December 8, 2004.

     The business  background  for Ms. Deng and Mr. Wong for the past five years
is as follows:

          Maggie  Deng.  Maggie  Deng,  age 37,  holds a  Bachelor  degree  from
     Tsinghua  University  in  China.  Ms Deng has  over 10 years of  experience
     working in or with public companies,  mainly on IPOs and secondary offering
     for Chinese  companies on domestic stock exchange as well as  international
     ones.  Ms Deng  was the  senior  manager  of  China  International  Capital
     Corporation,  a Morgan  Stanley  joint venture  investment  banking firm in
     China,  from  1998 to  2001.  Ms Deng  moved to  Canada  in 2001 and held a
     position  of  Assistant  to  President  in a  start-up  biotech  company in
     Vancouver.

          Garry Wong. Mr. Wong has been appointed as our Chief Financial Officer
     since January 2005. Prior to his current  position,  Mr. Wong served as our
     Executive  Assistant to  President  and CEO from  February  2002 to January
     2005.  Before  joining us, Mr. Wong was a member of the Global  Mergers and
     Acquisitions  Group at Nortel  Networks since 1996. He managed and executed
     transactions consisted of acquisitions,  divestitures,  equity investments,
     spin-offs,  public  market  listing  and joint  ventures,  and  occurred in
     Europe,  North  America,  Asia and the Middle East. Mr. Wong is a Chartered
     Financial  Analyst,  who  received  an  International  MBA degree from York
     University  with double  majors in  Corporate  Finance  and  Greater  China
     studies and a Bachelor degree in Business Administration from University of
     Hong Kong.

     Mr. Wong replaces Mr. Matthew  Kavanagh who was previously  Chief Financial
Officer.

Item 9.01   Financial Statements and Exhibits

     (c)  Exhibits

            10.16   Waivers  of  Certain   Conditions  to  the  Share   Purchase
                    Agreement

            10.17   Escrow agreement among Dragon Pharmaceutical,  Oriental Wave
                    Holding Limited, Yanlin Han, Zhanguo and Xuemei Liu.

            99.1    Press release dated January 11, 2004.

            99.2    Press release dated January 14, 2004


                                        4
<PAGE>

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


Date:  January 17, 2005             DRAGON PHARMACEUTICAL INC.


                                    /s/ Garry Wong
                                    --------------------------------------------
                                    Garry Wong
                                    Chief Financial Officer
                                    (Principal Financial and Accounting Officer)



                                        5
<PAGE>
                                                                   Exhibit 10.16

                           DRAGON PHARMACEUTICAL INC.
                                   ("DRAGON")


                           WAIVER AND ACKNOWLEDGEMENT


To:       Oriental Wave Holding Ltd. ("Oriental")

And:      Yan-Lin  Han,  Zhan-Guo  Weng  and  Xue-Mei  Liu  (collectively,   the
          "Vendors" and each, a "Vendor")

Re:       Share Purchase Agreement (the "Agreement") made among Dragon, Oriental
          and the Vendors

--------------------------------------------------------------------------------

The undersigned,  pursuant to ss.4.4 of the Agreement,  hereby waives, on behalf
of Dragon,  compliance by Oriental and the Vendors of their obligation under the
Agreement to deliver

1.   pursuant to ss.6.2(b), a certificate of status,  compliance,  good standing
or like  certificate  with respect to each  subsidiary  of  Oriental,  issued by
appropriate   government   officials  of  their   respective   jurisdictions  of
incorporation,

2.   pursuant to ss.6.2(d),  the consents of the Vendors to their appointment to
the board of directors of Dragon, and

3.   pursuant to ss.6.2(h),  legal  opinions  addressing  the matters set out at
numbers 2 and 3 with respect to Oriental's subsidiaries, number 4, number 5 with
respect to the Escrow  Agreement,  numbers 6, 7 and 8, number 9 with  respect to
Oriental's subsidiaries and numbers 10 and 12 of Schedule D to the Agreement.

The undersigned also  acknowledges that Oriental has advised it that no Consents
or  Regulatory  Approvals  are required to be obtained by Oriental in connection
with the Agreement

DATED January 12, 2005.

DRAGON PHARMACEUTICAL INC.


/s/ Dr. Alexander Wick
-------------------------
Dr. Alexander Wick
President

                                       1

<PAGE>



                           WAIVER AND ACKNOWLEDGEMENT


To:       Dragon Pharmaceutical Inc. ("Dragon")

Re:       Share Purchase Agreement (the "Agreement") made among Dragon, Oriental
          Wave  Holding  Ltd.  ("Oriental"),  Yan-Lin Han,  Zhan-Guo  Weng,  and
          Xue-Mei Liu (collectively, the "Vendors" and each, a "Vendor")

--------------------------------------------------------------------------------

The Vendors,  pursuant to ss.4.2 of the  Agreement,  hereby waive  compliance by
Dragon of its obligation under the Agreement to deliver

1.   pursuant to ss.6.3(c), a certificate of status,  compliance,  good standing
or like  certificate  with  respect  to each  subsidiary  of  Dragon,  issued by
appropriate   government   officials  of  their   respective   jurisdictions  of
incorporation, and

2.   pursuant to ss.6.3(k),  legal  opinions  addressing  the matters set out in
Schedule E to the Agreement.

The undersigned  also  acknowledge that Dragon has advised them that no Consents
or Regulatory  Approvals  other than the approval of the Toronto Stock  Exchange
are required to be obtained by Dragon under the Agreement.

DATED January 12, 2005.


/s/ Yan-Lin Han
----------------------
Yan-Lin Han


/s/ Zhan-Guo Weng
----------------------
Zhan-Guo Weng


/s/ Xue-Mei Liu
----------------------
Xue-Mei Liu


                                       2

<PAGE>
                                                                   Exhibit 10.17


                                ESCROW AGREEMENT

THIS AGREEMENT is made effective this 12th day of January, 2005

AMONG:

          DRAGON  PHARMACEUTICAL  INC.,  of 1990 - 1055  West  Hastings  Street,
          Vancouver, British Columbia, V6E 2E9

          ("Dragon")

AND:

          LML&S  SERVICES  INC. of 1500 - 1055 West Georgia  Street,  Vancouver,
          British Columbia, V6E 4N7

          ("Escrow Agent")

AND:

          YAN-LIN  HAN,  c/o Shanxi  Weigida  Pharmaceutical  Co.  Ltd.,  Datong
          Economic and Technology Development Zone, Shanxi, China 037300

          ZHAN-GUO  WENG,  c/o Shanxi Weigida  Pharmaceutical  Co. Ltd.,  Datong
          Economic and Technology Development Zone, Shanxi, China 037300

          XUE-MEI LIU, c/o Yongfeng  Enterprise,  9/F, Tower B, Yingjia  Center,
          No. 2, Dongsanhuan Nanlu, Chaoyang District, Beijing, China 100022

          (collectively, the "Vendors" and each, a "Vendor")

WHEREAS:

(A)  Pursuant  to a share  purchase  agreement  made June 11,  2004 (the  "Share
Purchase  Agreement")  among Dragon,  the Vendors and Oriental Wave Holding Inc.
("Oriental"),  the  Vendors  have sold their  shares of  Oriental  to Dragon for
common shares of Dragon; and

(B)  The Share Purchase  Agreement  provides for the deposit by the Vendors with
the Escrow  Agent of  certificates  representing  a total of  26,533,405  common
shares of Dragon,  to be held and released in accordance  with the terms of this
Agreement;

WITNESSES that in consideration of the mutual covenants and agreements contained
in this  Agreement and in the Share  Purchase  Agreements,  the Parties agree as
follows:

                                       1
<PAGE>
                                     PART 1

                    DEFINITIONS, INTERPRETATION AND SCHEDULES

Definitions

1.1  In this Agreement, except as otherwise expressly provided or as the context
otherwise requires,

     (a)  "ADCS  Escrow  Shares"  means a total of  4,282,402  common  shares of
     Dragon deposited  hereunder and designated in the Share Purchase  Agreement
     as the "Additional Dragon Closing Shares";

     (b)  "Agreement"  means this Escrow  Agreement and the  schedules  attached
     hereto, as may be supplemented or amended from time to time and in effect;

     (c)  "Business Day" means a day that is not a Saturday, Sunday or statutory
     holiday in Vancouver, British Columbia;

     (d)   "Claim" has the meaning ascribed to it in ss.4.4;

     (e)  "DCS  Escrow  Shares"  means a total of  22,251,003  common  shares of
     Dragon deposited  hereunder and designated in the Share Purchase  Agreement
     as the "Dragon Closing Shares";

     (f)  "Dispute" has the meaning ascribed to it in ss.5.1;

     (g)  "Effective Date" means the effective date of this Agreement, being the
     date first above written;

     (h)   "Escrow Agreement Claim" has the meaning ascribed to it in ss.3.5;

     (i)  "Escrow  Shares"  means  the ADCS  Escrow  Shares  and the DCS  Escrow
     Shares;

     (j)  "Force  Majeure"  means any event or occurrence  beyond the reasonable
     control  of  a  Party  which  prevents  such  Party  from   performing  its
     obligations under this Agreement including an act of God, government order,
     strike,  lockout  or other  industrial  disturbance,  war,  terrorist  act,
     blockade,  insurrection,  riot, earthquake,  typhoon,  hurricane,  flood or
     other natural disaster;

     (k)  "Notice" has the meaning ascribed to it in ss.6.2;

     (l)  "Party" means a Person that is a party to this Agreement;

     (m)  "Person" means any individual,  company, body corporate, firm, limited
     or unlimited  liability  company,  partnership,  syndicate,  joint venture,
     society,  association,  trust,  unincorporated  organisation  or government
     authority,  or  any  trustee,   executor,   administrator  or  other  legal
     representative thereof;

                                       2
<PAGE>

     (n)  "Vendors' Declaration" has the meaning ascribed to in ss.4.8; and

     (o)  "Vendors'  Representative"  means  Yan-Lin  Han or another  individual
     appointed by the Vendors to act as their  representative,  provided written
     notice of such appointment is provided to Dragon and the Escrow Agent;

Interpretation

1.2  In this Agreement, except as otherwise expressly provided,

     (a)  the headings are for  convenience  only and do not form a part of this
     Agreement  and are not  intended to  interpret,  define or limit the scope,
     extent or intent of this Agreement or any provision hereof;

     (b)  whenever  required by context,  a word importing the masculine  gender
     includes the feminine or neuter gender and a word in the singular  includes
     the plural and vice versa;

     (c)  a reference  to a Part means a Part of this  Agreement  and the symbol
     "ss."  followed  by a number or letter or some  combination  of numbers and
     letters  refers to the provision of this  Agreement so  designated  and the
     words "hereof", "hereto", "herein" and "hereunder" refer to the entirety of
     this Agreement rather than any particular Part or section;

     (d)  a  reference  to a statute  includes  all  regulations  made  pursuant
     thereto, all amendments to the statute or regulations in force from time to
     time and any statute or  regulations  that  supplement  or  supersede  such
     statute or regulations;

     (e)  a reference  to a corporate  entity  includes  any  successor  to that
     entity;

     (f)  a reference to currency means Canadian currency;

     (g)  a reference  to  "approval",  "authorization",  "notice" or  "consent"
     means  written  approval,  authorization,  notice  or  consent  not  to  be
     unreasonably withheld or delayed;

     (h)  the  words  "including"  and  "include",   when  following  a  general
     statement  or  term,  are  not to be  construed  as  limiting  the  general
     statement  or term to any  specific  item or matter set forth or to similar
     items or matters, but rather as permitting the general statement or term to
     refer to all other items or matters that could  reasonably  fall within its
     broadest possible scope; and

     (i)  an  accounting  term not  otherwise  defined  herein  has the  meaning
     assigned to it, and every  calculation  to be made hereunder is to be made,
     in  accordance  with Canadian  Generally  Accepted  Accounting  Principles,
     applied on a consistent basis.

                                       3
<PAGE>
                                     PART 2

                             ESTABLISHMENT OF ESCROW

Appointment of Escrow Agent

2.1  Dragon and the Vendors  hereby  appoint  the Escrow  Agent to act as escrow
agent,  and the  Escrow  Agent  agrees  to such  appointment,  on the  terms and
conditions set forth in this Agreement.

Power of Attorney Forms

2.2  Together with the Escrow  Shares,  each Vendor will deposit with the Escrow
Agent ten undated  executed  share transfer power of attorney forms in favour of
Dragon (the "PoA Forms") and each Vendor  hereby  authorizes  Dragon to complete
such Vendor's PoA Forms for the purpose of effecting the return and cancellation
of the Escrow Shares as may be provided for pursuant to this Agreement.

Acceptance of Deposits

2.3  The Escrow Agent hereby  acknowledges  receipt of the Escrow Shares and PoA
Forms and  concurrent  with the execution of this Agreement will deliver to each
Vendor a receipt for the Escrow Shares they deposited.

                                     PART 3

                                  ESCROW AGENT

Escrow Shares and PoA Forms

3.1  The Escrow  Shares and PoA Forms  deposited  with the Escrow  Agent will be
held in escrow  and  dealt  with by the  Escrow  Agent in  accordance  with this
Agreement.

Terms and Conditions

3.2  The Escrow Agent accepts its duties and obligations under this Agreement on
the following terms and conditions:

     (a)  the Escrow Agent may rely upon any notice, request, statement, waiver,
     consent, receipt, certificate or any paper or document furnished to it, and
     executed  with or  without  seal by any of  Dragon or a Vendor or any other
     Person, not only as to its due execution and the validity and effectiveness
     of its  provisions  but  also  as to the  truth  and  acceptability  of any
     information therein contained, and the Escrow Agent will not be required to
     determine the  authenticity of signatures or the power and authority of any
     signatory to execute any document;

                                       4
<PAGE>

     (b)  the  Escrow  Agent may engage  such  professional  advisers  and legal
     counsel as it  determines  to be  necessary or advisable in order to fulfil
     its obligations under this Agreement;

     (c)  the Escrow  Agent will not be  required to make any  determination  or
     decision  with respect to the validity of any claim made by any Party or of
     any denial thereof but will be entitled to rely  conclusively  on the terms
     hereof  and the  documents  tendered  to it in  accordance  with the  terms
     hereof;

     (d)  the duties and  obligations  of the Escrow Agent  hereunder are purely
     administrative  in nature and the  Escrow  Agent will not be liable for any
     error of  judgement,  or for any act done or step taken or omitted by it in
     good faith, or for any mistake of fact or law, or for anything which it may
     do or  refrain  from  doing in  connection  herewith,  except for the gross
     negligence, wilful default or dishonesty of its employees or agents;

     (e)  upon the Escrow  Agent's  delivery of the Escrow  Shares in accordance
     with the  provisions  of this Escrow  Agreement,  the Escrow  Agent will be
     automatically  and  immediately  released  from all duties and  obligations
     under this  Agreement  to any Party and to any other Person with respect to
     any of the Escrow Shares held in escrow under this Agreement;

     (f)  the  Escrow  Agent may,  if the Escrow  Agent  deems it  necessary  or
     desirable,  seek advice and  directions  from the Supreme  Court of British
     Columbia with respect to its duties and obligations hereunder; and

     (g)  the duties and  obligations of the Escrow Agent  hereunder will at all
     times be  subject  to the  orders  or  directions  of a court of  competent
     jurisdiction in the Province of British Columbia.

Consents and Waivers

3.3  The Escrow Agent will have no duties  except as expressly set forth herein,
and will not be bound by any notice of a claim or demand with  respect  thereto,
or any  waiver,  modification,  amendment,  termination  or  rescission  of this
Agreement,  unless  received  by it in writing,  and  executed by Dragon and the
Vendors,  and, if the Escrow Agent's duties,  obligations or liabilities  herein
are affected, unless it gives its written consent thereto.

Interpleader

3.4  The Escrow  Agent may, at any time,  give notice to all other  Parties that
the Escrow Agent is terminating its duties and obligations hereunder, and

     (a)  at any time more than 30 days after it gives such notice; and

     (b)  before  the  other  Parties  jointly  direct  the  Escrow  Agent as to
     delivery of the Escrow Shares in its possession to some other Person,

                                       5
<PAGE>
may deliver the Escrow Shares in its  possession to the Supreme Court of British
Columbia by way of interpleader and will thereupon be released of its duties and
obligations hereunder.  The Parties agree that in no event will the Escrow Agent
be held liable for any failure to deliver all or a portion of the Escrow  Shares
during the period referred to in ss.3.4(a).

Indemnity

3.5  The Vendors,  collectively,  and Dragon (each an "Indemnifying Party") will
jointly and  severally  indemnify  and save  harmless  the Escrow Agent from and
against any and all actions,  suits,  investigations,  proceedings  or claims of
every kind (each an "Escrow Agreement Claim") and any and all expenses,  losses,
damages  or  liabilities,  including  reasonable  attorney's  fees  and  charges
incidental  thereto  (collectively   "Liabilities")  as  and  when  incurred  or
sustained,  and the  reasonable  fees and  expenses  incurred by Escrow Agent in
investigating  or  defending  an Escrow  Agreement  Claim to which it may become
subject or otherwise  involved in any capacity  insofar as such Escrow Agreement
Claims or Liabilities  arise out of or are based,  directly or indirectly,  upon
the Escrow Agent's performance of its duties and obligations  hereunder,  except
to the extent that the Escrow  Agent's  agents or employees  are guilty of gross
negligence,  wilful default or dishonesty in the  performance of such duties and
obligations.  If an  Indemnifying  Party pays an amount to the  Escrow  Agent in
respect of a Liability  hereunder,  then such Indemnifying  Party is entitled to
recover  from the  other  Indemnifying  Party  one-half  of the  amount  of such
Liabilities paid.

Fees and Expenses

3.6  The  Indemnifying  Parties will jointly and severally  reimburse the Escrow
Agent  for any and all  fees  and  expenses  incurred  in  connection  with  the
performance  of its  duties  hereunder,  including  but not  limited to fees and
expenses incurred pursuant to ss.3.4. If an Indemnifying Party pays an amount to
the  Escrow  Agent in  respect  of any fees and  expenses  hereunder,  then such
Indemnifying  Party is entitled  to recover  from the other  Indemnifying  Party
one-half of the amount of such fees and expenses paid.

Escrow Agent's Counsel

3.7  Each of the parties  confirms  that it is aware that the Escrow  Agent is a
corporation  that is  controlled  and directed by Lang  Michener,  which acts as
counsel to Dragon.  The Escrow Agent may not retain Lang  Michener as counsel in
the event of any dispute hereunder.

                                     PART 4

                               RELEASE FROM ESCROW

Release of Escrow Shares

4.1  The Escrow Agent will release the Escrow Shares and PoA Forms held by it in
escrow and discharge its obligations hereunder only in accordance with

                                       6
<PAGE>

     (a)  joint written  instructions  from Dragon (executed by a senior officer
     other  than  any  Vendor  who  is  a  senior   officer)  and  the  Vendors'
     Representative,

     (b)  in the  circumstances of ss.4.5(a),  ss.4.5(b) or ss.4.7,  the written
     instruction of Dragon,

     (c)  in  the  circumstances  of  ss.4.8,  the  written  instruction  of the
     Vendors' Representative that is not disputed by Dragon, or

     (d)  an award or decision of an arbitrator pursuant to Part 5or an order of
     a court of competent jurisdiction in a final determination.

Delivery

4.2  Upon  receipt of the  instructions  described  in ss.4.1,  the Escrow Agent
will,  within five Business Days,  deliver the applicable  Escrow Shares and PoA
Forms in accordance with such instructions.

Joint Direction

4.3  Notwithstanding  any  other  provision  of this  Part,  but  subject  to an
applicable award,  decision or order referred to in ss.4.1(d),  the Escrow Agent
may act in  accordance  with a written  direction  executed by all other Parties
amending  the  procedures  set forth in this Part or the Escrow  Agent's  duties
under this Agreement.

Conditions for Release of DCS Escrow Shares

4.4  Dragon and the  Vendors  acknowledge  that the DCS Escrow  Shares have been
deposited  under  this  Agreement  in support  of  certain  representations  and
warranties made by the Vendors to Dragon,  and will be released from escrow only
if no claim (a "Claim") is made by Dragon  against the Vendors for a breach of a
representation  or warranty  made by the  Vendors to Dragon  under Part 3 of the
Share Purchase Agreement or, if a Claim is made, upon its resolution.

4.5  If

     (a)  no  Claim  is made by  Dragon  by the  first  anniversary  of the date
     hereof, Dragon will deliver a notice under ss.4.1(b) instructing the Escrow
     Agent to deliver 40% of the DCS Escrow Shares to the Vendors,

     (b)  no Claim  is made by  Dragon  by the  second  anniversary  of the date
     hereof, Dragon will deliver a notice under ss.4.1(b) instructing the Escrow
     Agent to deliver the remaining DCS Escrow Shares to the Vendors,

     (c)  if a Claim is made by Dragon, any DCS Escrow Shares and PoA Forms that
     are in escrow at the date the  Claim is made  will  remain in escrow  under
     this Agreement until an instruction,  award, decision or order is delivered
     under ss.4.1(a) or (d), and

                                       7
<PAGE>

     (d)  upon a final  determination  being made in respect of a Claim,  Dragon
     and the Vendors will  instruct the Escrow Agent on the  disposition  of the
     DCS  Escrow  Shares  and PoA Forms,  with any  determination  as to the DCS
     Escrow  Shares  and PoA  Forms,  if  any,  to be  returned  to  Dragon  for
     cancellation  to be made in accordance with the provisions of Part 8 of the
     Share Purchase Agreement.

Conditions for Release of ADCS Escrow Shares

4.6  Dragon and the Vendors  acknowledge  that the ADCS Escrow  Shares have been
issued in anticipation of the exercise of the Dragon Convertible  Securities (as
defined  in the  Share  Purchase  Agreement)  and  are  subject  to  release  or
cancellation  in the  circumstances  set out in Schedule B of the Share Purchase
Agreement.  Dragon covenants that while any Dragon Convertible Securities remain
outstanding it will provide a monthly report to the Vendors and the Escrow Agent
confirming  whether and to what extent the Dragon  Convertible  Securities  have
been exercised, expired unexercised or otherwise been cancelled.

4.7  On a  quarterly  basis,  or sooner at the  request of the Vendors or at the
discretion  of Dragon,  Dragon will  deliver a written  notice  under  ss.4.1(b)
instructing the Escrow Agent to deliver to the Vendors or Dragon, as applicable,
the ADCS Escrow Shares and PoA Forms subject to release or cancellation pursuant
to Schedule B to the Share Purchase Agreement.

Release Requested by Vendors

4.8  If  Dragon  fails  to  deliver  a notice  when  required  under  ss.4.5(a),
ss.4.5(b)  or ss.4.7,  the Vendors may request the release of the Escrow  Shares
and PoA Forms as provided under ss.4.5(a),  ss.4.5(b) or ss.4.7 by delivering to
the Escrow Agent and Dragon a statutory declaration (the "Vendors' Declaration")
executed by the  Vendors'  Representative  that the Vendors are  entitled to the
release of the

     (a)  DCS Escrow Shares as no Claim has been made by Dragon, or

     (b)  ADCS Escrow Shares on the basis of the calculations provided by Dragon
     under ss.4.6.

If within 10 Business Days of the receipt of the Vendors' Declaration the Escrow
Agent has not  received  from  Dragon a written  notice  that it  disputes  such
declaration,  the Escrow Agent will release the applicable Escrow Shares and PoA
Forms to the Vendors.

Pro Rata Release of Escrowed Shares

4.9  Any release of Escrow Shares to the Vendors  hereunder  will be made in the
following proportions:

                  Yan-Lin Han               70%
                  Zhan-Guo Weng             20%
                  Xue-Mei Liu               10%


                                       8
 <PAGE>
Voting of DCS Escrow Shares

4.10 The Vendors  will be entitled to exercise all voting  rights in  connection
with the DCS Escrow  Shares  notwithstanding  their deposit in escrow under this
Agreement.

Voting and Dividends - ADCS Escrow Shares

4.11 Neither the Vendors nor any other  person will be entitled to exercise  any
voting rights or receive any dividends or  distributions  in respect of the ADCS
Escrow Shares until they have been released from escrow under this Agreement.

Exchanging Share Certificates

4.12 If any release of Escrow Shares under this Part 4would  require a number of
shares  to be  released  that is less  than the  number  represented  by a share
certificate,  then the Escrow Agent is hereby authorized and directed to arrange
for the  splitting  of a share  certificate,  with such shares to be released in
accordance with the  instructions  described in ss.4.1 and a certificate for the
balance of the shares to be returned  into escrow.  The parties  (other than the
Escrow  Agent)  will  cooperate  with the Escrow  Agent to  complete  its duties
hereunder  including  providing any certificates or other documents requested by
the Escrow Agent

                                     PART 5

                               DISPUTE RESOLUTION

Submission to Arbitration

5.1  If,  at any  time,  there  is a  dispute,  controversy  or  claim  (each  a
"Dispute")  with  respect  to any  matter  arising  out of or  relating  to this
Agreement,  such Dispute will be referred to arbitration in accordance  with the
arbitration  provisions  of the Share  Purchase  Agreement,  and each Party will
accept as final and binding and proceed in good faith  diligently  to  implement
the award or decision of the arbitrator.

                                     PART 6

                               GENERAL PROVISIONS

Governing Law

6.1  This  Agreement  will be  exclusively  governed  by,  and  interpreted  and
construed in  accordance  with,  the laws  prevailing in the Province of British
Columbia and the Parties irrevocably and unconditionally attorn to the exclusive
jurisdiction of the courts of British  Columbia and all courts having  appellate
jurisdiction thereover.

                                       9
<PAGE>
Notice

6.2  Every notice,  request,  demand or direction  (each a "Notice") to be given
pursuant  to this  Agreement  must be in writing and must be  delivered  by hand
(e.g.  Federal Express or other reputable  courier service) or sent by facsimile
transmission or other similar form of written  transmission by electronic means,
in each case addressed as follows:

     (a)  If to Dragon, at:

          1900 - 1055 West Hastings Street
          Vancouver, British Columbia
          Canada V6E 2E9
          Attention:  Secretary
          Telecopier:  (604) 669-4243

     (b)  If to either Yan Lin Han or Zhan Guo Weng, at:

          c/o Shanxi Weiqida Pharmaceutical Co. Ltd.
          Datong Economic and Technology Development Zone
          Shanxi, China 037300
          Telecopier:  +86-352-6116451

     (c)  If to Xue-Mei Liu, at:

          c/o Yongfeng Enterprise
          9/F, Tower B, Yingjia Center
          No. 2, Dongsanhuan Nanlu, Chaoyang District
          Beijing, China 100022
          Telecopier:  +86-10-6566-2924

          with a copy to:

          Bull, Housser & Tupper
          Barristers & Solicitors
          3000 - 1055 West Georgia Street
          P.O. Box 11130
          Vancouver, BC  V6E 3R3
          Attention:        Marion V. Shaw
          Facsimile:        (604) 641-4949

     (d)  If to the Escrow Agent, at:

          LML&S Services Inc.
          1500 - 1055 West Georgia Street
          P.O. Box 11117
          Vancouver, British Columbia
          Canada V6E 4N7
          Attention: Secretary
          Telecopier:  (604) 685-7084

                                       10
<PAGE>

or to such other  address or  transmission  receiving  number as  specified by a
Party by Notice to the other Parties.

6.3  A notice delivered or sent in accordance with the preceding section will be
deemed to be given and received

     (a)  at 9:00  a.m.  on the day of  delivery  or  receipt  at the  place  of
     delivery  or receipt  if that day is a  Business  Day at that place and the
     delivery or receipt is before that time on that day,

     (b)  at the time of  delivery  or receipt if received on or after 9:00 a.m.
     and before 4:00 p.m. at the place of delivery or receipt on a day that is a
     Business Day at that place, and

     (c)  at 9:00 a.m.  at the place of delivery or receipt on the next day that
     is a Business Day at that place,  if delivered or received on a day that is
     not a Business Day at that place or after 4:00 p.m. at that place.

Language of Document

6.4  All  correspondence  in respect of this  Agreement  or the  enforcement  of
rights of the parties hereunder will be made in the English language only.

Time of Essence

6.5  Time is of the essence in the  performance  of each  obligation  under this
Agreement.

Termination and Discharge of Escrow Agent

6.6  This  Agreement  will  terminate and the Escrow Agent will be discharged of
its obligations in any of the following circumstances:

     (a)  the Escrow Shares are properly released in accordance with Part 4;

     (b)  this  Agreement is terminated by the Escrow Agent under ss.3.4 and the
     Escrow Shares are safely in the hands of the new appointee or the court; or

     (c)  the  destruction  or  corruption  of the Escrow  Shares,  if any, as a
     result of Force Majeure.

Force Majeure

6.7  No Party  will be  liable to any other  Party for  default  or delay in the
performance of its  obligations  under this Agreement to the extent such default
or delay is caused by an occurrence of Force Majeure.

                                       11
<PAGE>

Entire Agreement

6.8  The Escrow  Agent is not a party to,  and is not bound by,  any  provisions
which may be  evidenced  by, or arise out of,  any  agreement  other than as set
forth in the express provisions of this Agreement.

Waiver and Consent

6.9  No delay or failure  by a Party to  exercise  any of its rights  under this
Agreement constitutes a waiver of any such right. No consent or waiver,  express
or implied,  by a Party to, or of any breach or default by another Party of, any
or all of its obligations under this Agreement will,

     (a)  be valid  unless it is in writing and stated to be a consent or waiver
     pursuant to this ss.6.9,

     (b)  be  relied  upon as a consent  to or  waiver  of any  other  breach or
     default of the same or any other obligation,

     (c)  constitute a general waiver under this Agreement, or

     (d)  eliminate or modify the need for a specific consent or waiver pursuant
     to this ss.6.9 in any other or subsequent instance.

Severability

6.10 If any provision of this Agreement is at any time  unenforceable or invalid
for any reason,  it will be severable  from the remainder of this Agreement and,
in its application at that time, this Agreement will be construed as though such
provision was not contained herein and the remainder will continue in full force
and effect and be construed as if this  Agreement had been executed  without the
invalid or unenforceable provision.

Amendments

6.11 This Agreement may not be amended except in writing signed by each Party.

Further Assurances


6.12 Each Party will  execute  and deliver  such  further  agreements  and other
documents  and do such  further  acts and  things as  another  Party  reasonably
requests to  evidence,  carry out or give full force and effect to the intent of
this Agreement.

No Agency

6.13 Each Party is an independent contractor and nothing herein will, or will be
deemed to, create any  employer/employee,  agency,  partnership or joint venture
relationship  among the Parties or to give any Party any right or  authority  to
act as the agent of,  assume or create any  obligation on behalf of or to pledge
the credit of any other Party.

                                       12
<PAGE>
Assignment

6.14 This Agreement and the individual rights and obligations  hereunder may not
be  transferred  or  assigned  in  whole  or in part by any  Party,  whether  by
contract,  operation  of law or  otherwise,  without  the  consent of each other
Party,  and any purported  transfer or  assignment  without such consent will be
null and void.  Nothing in this  ss.6.14 will be deemed to limit or restrict the
Escrow Agent's rights under ss.3.4.

Enurement

6.15 This Agreement and the  provisions  hereof will enure to the benefit of and
be binding  upon the  Parties  and their  respective  successors  and  permitted
assigns.

Survival

6.16 All rights and  obligations of the Parties  occurring  before the effective
date of termination of this Agreement and all rights and  obligations  expressly
stated to  continue  after,  or accrue as a result of, the  termination  of this
Agreement  are  separate  and  distinct  rights and  obligations  binding on the
Parties, will survive its termination and will continue in full force and effect
and nothing  herein  will  affect the  enforceability  of such  provisions.  For
greater certainty,  the premature  termination of this Agreement will not affect
the rights and obligations of any Party under ss.3.4, ss.3.5 and Part 6.

Counterparts

6.17 This Agreement may be executed in any number of  counterparts,  in original
form or by facsimile, each of which will together, for all purposes,  constitute
one and the same  instrument,  binding  on the  Parties,  and each of which will
together be deemed to be an original,  notwithstanding  that each Party is not a
signatory to the same counterpart.

IN WITNESS  WHEREOF this  Agreement  has been  executed by the Parties as of the
Effective Date.


DRAGON PHARMACEUTICAL INC.


Per:   /s/ Dr. Alexander Wick
       ----------------------------------
       Authorized Signatory


LML&S SERVICES INC.


Per:
       ----------------------------------
        Authorized Signatory

                                       13
<PAGE>


Signed, Sealed and Delivered by Yan-Lin Han)
in the presence of                         )
                                           )
                                           ) /s/ Yan-Lin Han
---------------------------------------    ) -------------------------------
Witness (Signature)                        ) YAN-LIN HAN
                                           )
                                           )
---------------------------------------    )
Name (please print)                        )
                                           )
                                           )
---------------------------------------    )
Address                                    )
                                           )
                                           )
---------------------------------------    )
City, Province                             )
                                           )
                                           )
---------------------------------------    )
Occupation                                 )




Signed, Sealed and Delivered by Zhan-Guo   )
Weng in the                                )
presence of:                               )
                                           )
                                           )
                                           ) /s/ Zhan-Guo Weng
---------------------------------------    ) -------------------------
Witness (Signature)                        ) ZHAN-GUO WENG
                                           )
                                           )
---------------------------------------    )
Name (please print)                        )
                                           )
                                           )
---------------------------------------    )
Address                                    )
                                           )
                                           )
---------------------------------------    )
City, Province                             )
                                           )
                                           )
---------------------------------------    )
Occupation                                 )


                                       14

<PAGE>


Signed, Sealed and Delivered by Xue-Mei Liu)
in the presence of:                        )
                                           )
                                           )
                                           ) /s/ Xue-Mei Liu
--------------------------------------     ) ----------------------
Witness (Signature)                        ) XUE-MEI LIU
                                           )
                                           )
---------------------------------------    )
Name (please print)                        )
                                           )
                                           )
---------------------------------------    )
Address                                    )
                                           )
                                           )
---------------------------------------    )
City, Province                             )
                                           )
                                           )
---------------------------------------    )
Occupation                                 )


                                       15

<PAGE>
                                                                    Exhibit 99.1


        Dragon Receives Approval from Shareholders in Connection with the
                   Acquisition of Oriental Wave Holding Ltd.

VANCOUVER,  Jan. 11, 2005 - Dragon  Pharmaceutical Inc. (OTC BB: DRUG; TSX: DDD;
BBSE:  DRP) ("the Company") is pleased to announce that at the Annual Meeting of
Shareholders held on January 11, 2005, the shareholders approved the acquisition
by Dragon of Oriental  Wave by  accepting  all the  proposals in over 99% of the
shares  represented  and  voting.  Over  82%  of  the  outstanding  shares  were
represented at the meeting. In addition, Dr. Sun and Dr. Wick were re-elected to
the Board,  and Moore  Stephen Ellis Foster were ratified to audit the Company's
financial  statements for the year ended December 31, 2004.

"We, at Dragon, are delighted that this acquisition of Oriental Wave on which we
have  worked  hard  for an  extended  period  of time has  been  approved  by an
overwhelming  majority of our  shareholders.  This  demonstration  of unity will
provide an excellent basis to  successfully  face the challenges of the future,"
said Dr.  Alexander  Wick,  President  and CEO of  Dragon.  "Both  the  physical
presence of individual  Dragon  shareholders  and the owners of Oriental Wave at
the meeting have been highly  appreciated."

The  Company  also  wishes to  announce  that the  Toronto  Stock  Exchange  has
conditionally approved the issue of shares in connection with the acquisition of
Oriental Wave, subject to the filing of customary documentation. The Company and
Oriental  Wave expect the  acquisition  to close within the next couple of days.

About Dragon  Pharmaceutical Inc.

Dragon  Pharmaceutical  Inc.  is  an  international  bio-pharmaceutical  company
headquartered in Vancouver,  Canada,  with a GMP production facility in Nanjing,
China.  Dragon's EPO has been  marketed to treat anemia due to renal failure and
surgery  in 9  countries:  China,  India,  Egypt,  Brazil,  Peru,  Ecuador,  the
Dominican   Republic,   Trinidad-Tobago   and  Kosovo.   Additional   regulatory
submissions are in progress  throughout Central and Eastern Europe,  Asia, Latin
America,  the Middle East and Africa and the Company is in the final preparation
to enter the  European  Union  market.

About  Oriental  Wave  Holding  Limited.

Oriental  Wave  Holding  Limited  is a  privately  held  holding  company of its
operating subsidiary, Shanxi Weiqida Pharmaceutical Co. Ltd. The Company engages
in production and sales of generic  pharmaceutical  and chemical products with 3
production  facilities in Datong city,  China.

For further information please contact:

    Dragon  Pharmaceutical Inc.
    Garry Wong, CFA, IMBA
    Telephone: +1-(604)-669-8817 or North America Toll Free: 1-877-388-3784
    Email:  irdragon@dragonpharma.com
    Website:  www.dragonbiotech.com or  www.dragonpharma.com
    or

                                       1
<PAGE>
    Renmark
    Financial Communications Inc.
    John Boidman: jboidman@renmarkfinancial.com
    Sylvain Laberge: slaberge@renmarkfinancial.com
    Media - Cynthia Lane: clane@renmarkfinancial.com
    Telephone: +1-(514) 939-3989
    Website: www.renmarkfinancial.com

                                       2

<PAGE>
                                                                    Exhibit 99.2

           Dragon Completes Acquisition of Oriental Wave Holding Ltd.
                and Announces Appointment of Key Management Team

VANCOUVER,  Jan. 14, 2005- Dragon  Pharmaceutical  Inc. (OTC BB: DRUG; TSX: DDD;
BBSE:  DRP) ("the  Company") is pleased to announce  that it has  completed  the
acquisition of Oriental Wave Holding Ltd.

At closing, and as described in Dragon's proxy statement dated December 8, 2004,
Mr. Yanlin Han, Mr.  Zhanguo Weng and Ms. Xuemei Liu were appointed to the Board
of Directors  that now consists of five members  including  Dr. Wick and Dr. Sun
who were re-elected at the Company's annual meeting of  shareholders.  The Board
of Directors  also  appointed the following  individuals  as the key  management
team:

     Mr. Yanlin Han as the Chief Executive Officer
     Dr. Alexander Wick as the President
     Mr. Zhanguo Weng as the Vice President, China Operation
     Mr. Garry Wong, CFA as the Chief Financial Officer Ms.
     Maggie Deng as the Chief Operating Officer

"The first  practical  step to integrate  the original  Dragon and Oriental Wave
into a new and  efficient  organization  has already  been  started"  said,  Dr.
Alexander  Wick,  President of Dragon.  "A new and  state-of-the-art  production
facility for EPO  (Erythropoietin)  using the proven cell-line and technology of
Nanjing Huaxin Bio-pharmaceutical Co. Ltd., the Company's subsidiary in Nanjing,
is being set up on  Dragon's  Chemical  division  campus in Datong,  sharing the
existing energy and administrative infrastructure. This campus will also house a
new workshop  for the  freeze-drying  of  temperature  sensitive  pharmaceutical
products,  among  them,  Levofloxacin,  a  currently  marketed  product  of  the
Company."

About Dragon Pharmaceutical Inc.

Dragon  Pharmaceutical  Inc.  (Ticker:  OTCBB:  DRUG, TSX: DDD, BBSE: DRP) is an
international  pharmaceutical company headquartered in Vancouver, Canada, with 4
production  facilities  located  in  Nanjing  and  Datong,  China.  The  Company
currently  produces  more than 40 products in China and markets them in China as
well as internationally.  These products are organized under 3 distinct business
divisions:  a Pharma  division for  prescription  and  over-the-counter  generic
drugs, a Chemical division for bulk pharmaceutical  chemicals such as Clavulanic
Acid,  7-ACA and  sterilized  bulk  drugs,  and a Biotech  division  for EPO and
in-licensed  G-CSF.  For the full year of 2003, the Company  achieved  pro-forma
revenues of US$29.7 million and a net profit of US$5.59 million.

     For further information please contact:
     Dragon Pharmaceutical Inc.
     Garry Wong, CFA, IMBA
     Telephone: +1-(604)-669-8817 or North America Toll Free: 1-877-388-3784
     Email: irdragon@dragonpharma.com
     Website: www.dragonbiotech.com or www.dragonpharma.com

                                       1
<PAGE>

     or

     Renmark Financial Communications Inc.
     John Boidman : jboidman@renmarkfinancial.com
     Sylvain Laberge : slaberge@renmarkfinancial.com
     Media - Cynthia Lane : clane@renmarkfinancial.com
     Telephone: +1-(514) 939-3989
     Website: www.renmarkfinancial.com

     Cautionary  Statement for Purposes of the "Safe  Harbor"  Provisions of the
     Private  Securities  Litigation  Reform Act of 1995: All statements,  other
     than  historical  facts,  included  in  the  foregoing  press  release  are
     forward-looking  statements.  These  statements  are based on  management's
     beliefs  and  assumptions,   and  on  information  currently  available  to
     management.  Forward-  looking  statements  are not  guarantees  of  future
     performance.  They involve risk,  uncertainties  and assumptions  including
     risks discussed under "Risks Associated With Dragon  Pharmaceutical" in the
     Company's  annual report on Form 10-K, SEC File No.: 0- 27937, all of which
     are  incorporated  herein by reference.  The Company does not undertake the
     obligation to publicly revise these  forward-looking  statements to reflect
     subsequent events or circumstances.


                                       2
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{"company-data": {"conformed-name": "DRAGON PHARMACEUTICALS INC", "cik": "0001075206", "assigned-sic": "2834", "irs-number": "650142474", "state-of-incorporation": "FL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27937", "film-number": "05534216"}, "business-address": {"street1": "543 GRANVILLE STREET SUITE 1200", "city": "VANCOUVER BC V6C 1X8", "state": "A1"}, "mail-address": {"street1": "543 GRANVILLE STREET SUITE 1200", "street2": "VANCOUVER BRITISH COLUMBIA CANADA V6C1X", "city": "VANCOUVER BRITISH CO"}}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 8-K

                                 Current Report
     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported): January 11, 2005

                           DRAGON PHARMACEUTICAL INC.
                           --------------------------
             (Exact name of registrant as specified in its charter)

           Florida                         0-27937               65-0142474
           -------                         -------               ----------
State or Other Jurisdiction of    (Commission File Number)      (IRS Employer
        Incorporation)                                       Identification No.)

      1055 Hastings Street, Suite 1900
         Vancouver, British Columbia                      V6E 2E9
        ----------------------------                      -------
  (Address of Principal Executive Offices)               (Zip Code)

                                 (604) 669-8817
                                 --------------
              (Registrant's telephone number, including area code)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)

[ ]  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[ ]  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))
Item 2.01 Completion of Acquisition or Disposition of Assets

     On June 11, 2004, Dragon Pharmaceutical Inc. (the "Company"), Oriental Wave
Holding Ltd.  ("Oriental  Wave") and Mr. Yanlin Han, Mr.  Zhanguao Weng, and Ms.
Xuemei Liu entered into a Share Purchase Agreement. Under the terms of the Share
Purchase Agreement, Mr. Han, Mr. Weng and Ms. Liu would receive in the aggregate
shares of common stock equal to 68.35% of the Company's outstanding common stock
after  consummation  of the  acquisition of Oriental Wave in exchange for all of
their shares of Oriental Wave. In addition,  Mr. Han, Mr. Weng and Ms. Liu would
also receive  additional  shares of common  stock  ("Additional  Dragon  Closing
Shares")  such that they will  continue  to own 68.35% of the  Company's  common
stock if all of the  Company's  outstanding  options  and  warrants  to purchase
common stock as of the date of the closing are exercised.

     On January 11, 2005,  the  Company's  shareholders  approved two  proposals
related  to the  acquisition  of  Oriental  Wave.  The  terms of Share  Purchase
Agreement,   financial  statements  for  the  Company  and  Oriental  Wave,  and
description of the proposals were described in a proxy  statement dated December
8, 2004.  The closing of the  acquisition of Oriental Wave pursuant to the Share
Purchase  Agreement  occurred  on January  12,  2005.  Under  terms of the Share
Purchase  Agreement,  Mr. Han,  Mr. Weng and Ms. Liu  received in the  aggregate
44,502,004  shares of common  stock of which  26,533,405  shares are  subject to
escrow.  The shares of common stock held in escrow will be released on the first
and second  anniversary dates of the close provided that the Company has made no
claims against Oriental Wave and its shareholders for misrepresentations made in
the Share Purchase  Agreement.  Mr. Han, Mr. Weng and Ms. Liu will retain voting
rights of those  shares  held in  escrow.  In  addition,  pursuant  to the Share
Purchase  Agreement,  Mr.  Han,  Mr.  Weng  and Ms.  Liu  collectively  received
4,282,402 Additional Dragon Closing Shares. The Additional Dragon Closing Shares
are being held in escrow and may be released or  cancelled  depending on whether
or not certain of the Company's options or warrants  outstanding as of the close
have been subsequently  exercised or expired. Mr. Han, Mr. Weng and Ms. Liu will
have no voting rights or dispositive  powers over the Additional  Dragon Closing
Shares  while  they  are held in  escrow,  and they  will  not be  deemed  to be
outstanding unless they are released from escrow.

Item 3.02 Unregistered Sales of Equity Securities.

     On January 12,  2005,  the Company  completed  the  acquisition  of all the
outstanding shares of Oriental Wave pursuant to the Share Purchase Agreement. In
connection with the  acquisition,  the Company issued an aggregate of 44,502,004
shares of common stock and 4,282,402 shares of Additional  Dragon Closing Shares
as follows:

---------------------- ------------------ --------------------------------------
Name                   Common Stock       Additional Dragon Closing Shares
---------------------- ------------------ --------------------------------------
Yanlin Han             31,151,403                   2,997,682
---------------------- ------------------ --------------------------------------
Zhanguao Weng           8,900,401                     856,480
---------------------- ------------------ --------------------------------------
Xuemei Liu              4,450,200                     428,240
---------------------- ------------------ --------------------------------------

     The issuance of the shares of common stock and  Additional  Dragon  Closing
Shares by the  Company to Mr. Han,  Mr.  Weng and Ms. Liu  pursuant to the Share
Purchase Agreement was exempt from registration upon reliance of Regulation S.

                                        2
Item 5.01 Changes in Control of Registrant

     (a) As a result of the consummation of the Share Purchase Agreement,  there
has been a change in  control  of the  registrant.  Mr.  Han  beneficially  owns
31,151,403 shares of common stock, or 47.8% of the outstanding  common stock, of
which  18,573,384  shares are  subject to escrow.  Mr.  Weng  beneficially  owns
8,900,401 shares of common stock, or 13.7 % of the outstanding  common stock, of
which  5,306,681  shares  are  subject  to escrow.  Ms.  Liu  beneficially  owns
4,650,200  shares of common stock, or 7.1% of the  outstanding  common stock, of
which 2,653,340 shares are subject to escrow.

     (b) The following  table shows the amount of our common stock  beneficially
owned (unless  otherwise  indicated) by each  shareholder  known by us to be the
beneficial  owner of more than 5% of our common stock,  by each of our executive
officers and directors as of January 12, 2005.
-------------------------------------------------------------------------------------------------------
                                                                 Share Beneficially Owned
                                                 ------------------------------------------------------
                                                 ------------------------      ------------------------
Name and Address of Beneficial Owner                         Number                     Percent
                                                 ------------------------      ------------------------
Maggie Deng, Chief Operating Officer                         200,000(1)                       *
Garry Wong, Chief Financial Officer                          200,000(1)                       *
Alexander Wick, President and Director                       975,000(2)                     1.4%
Yiu Kwong Sun, Director                                      975,000(3)                     1.4%
Yanlin Han, Chief Executive Officer & Director            31,151,403                       47.8%
Zhangou Weng, Vice President, China
  Operation & Director                                     8,900,401                       13.7%
Xuemei Liu, Director                                       4,650,200(4)                     7.1%
-------------------------------------------------------------------------------------------------------
Notes:
* Less than one percent.
(1)  Represents  options to purchase shares of common stock  exercisable  within
     sixty days.

(2)  Includes options to purchase 675,000 shares exercisable within sixty days.

(3)  Includes   options  to  purchase  275,000  shares  of  common  stock  owned
     exercisable within sixty days. Also includes 100,000 shares of common stock
     directly  owned and 600,000  shares of common  stock owned by Yukon  Health
     Enterprises for which Mr. Sun serves as a director.

(4)  Includes options to purchase 200,000 shares of common stock.

Item 5.02 Departure of Directors of Principal  Officers;  Election of Directors;
Appointment of Principal Officers.

     Pursuant to the Share Purchase Agreement, on January 12, 2005, Mr. Han, Mr.
Weng and Ms. Liu were appointed to the Company's Board of Directors. Mr. Han was
also elected as Chairman of the Board.  The  Company's  Board of  Directors  now
consists of five directors  including Dr. Wick and Dr. Sun who were reelected to
the Board at the annual meeting of shareholders held on January 11, 2005.

                                        3
In  addition,  effective  January 12, 2005,  the  following  officers  were
appointed to the Company:

         Chief Executive Officer:          Mr. Han
         President:                        Dr. Wick
         Vice President, China Operation:  Mr. Weng
         Chief Operating Officer:          Ms. Maggie Deng
         Chief Financial Officer:          Mr. Garry Wong

     As description of Mr. Han, Dr. Wick and Mr. Weng was in the Company's proxy
statement dated December 8, 2004.

     The business  background  for Ms. Deng and Mr. Wong for the past five years
is as follows:

          Maggie  Deng.  Maggie  Deng,  age 37,  holds a  Bachelor  degree  from
     Tsinghua  University  in  China.  Ms Deng has  over 10 years of  experience
     working in or with public companies,  mainly on IPOs and secondary offering
     for Chinese  companies on domestic stock exchange as well as  international
     ones.  Ms Deng  was the  senior  manager  of  China  International  Capital
     Corporation,  a Morgan  Stanley  joint venture  investment  banking firm in
     China,  from  1998 to  2001.  Ms Deng  moved to  Canada  in 2001 and held a
     position  of  Assistant  to  President  in a  start-up  biotech  company in
     Vancouver.

          Garry Wong. Mr. Wong has been appointed as our Chief Financial Officer
     since January 2005. Prior to his current  position,  Mr. Wong served as our
     Executive  Assistant to  President  and CEO from  February  2002 to January
     2005.  Before  joining us, Mr. Wong was a member of the Global  Mergers and
     Acquisitions  Group at Nortel  Networks since 1996. He managed and executed
     transactions consisted of acquisitions,  divestitures,  equity investments,
     spin-offs,  public  market  listing  and joint  ventures,  and  occurred in
     Europe,  North  America,  Asia and the Middle East. Mr. Wong is a Chartered
     Financial  Analyst,  who  received  an  International  MBA degree from York
     University  with double  majors in  Corporate  Finance  and  Greater  China
     studies and a Bachelor degree in Business Administration from University of
     Hong Kong.

     Mr. Wong replaces Mr. Matthew  Kavanagh who was previously  Chief Financial
Officer.

Item 9.01   Financial Statements and Exhibits

     (c)  Exhibits

            10.16   Waivers  of  Certain   Conditions  to  the  Share   Purchase
                    Agreement

            10.17   Escrow agreement among Dragon Pharmaceutical,  Oriental Wave
                    Holding Limited, Yanlin Han, Zhanguo and Xuemei Liu.

            99.1    Press release dated January 11, 2004.

            99.2    Press release dated January 14, 2004

                                        4
SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

Date:  January 17, 2005             DRAGON PHARMACEUTICAL INC.

                                    /s/ Garry Wong
                                    --------------------------------------------
                                    Garry Wong
                                    Chief Financial Officer
                                    (Principal Financial and Accounting Officer)

                                        5
Exhibit 10.16

                           DRAGON PHARMACEUTICAL INC.
                                   ("DRAGON")

                           WAIVER AND ACKNOWLEDGEMENT

To:       Oriental Wave Holding Ltd. ("Oriental")

And:      Yan-Lin  Han,  Zhan-Guo  Weng  and  Xue-Mei  Liu  (collectively,   the
          "Vendors" and each, a "Vendor")

Re:       Share Purchase Agreement (the "Agreement") made among Dragon, Oriental
          and the Vendors

--------------------------------------------------------------------------------

The undersigned,  pursuant to ss.4.4 of the Agreement,  hereby waives, on behalf
of Dragon,  compliance by Oriental and the Vendors of their obligation under the
Agreement to deliver

1.   pursuant to ss.6.2(b), a certificate of status,  compliance,  good standing
or like  certificate  with respect to each  subsidiary  of  Oriental,  issued by
appropriate   government   officials  of  their   respective   jurisdictions  of
incorporation,

2.   pursuant to ss.6.2(d),  the consents of the Vendors to their appointment to
the board of directors of Dragon, and

3.   pursuant to ss.6.2(h),  legal  opinions  addressing  the matters set out at
numbers 2 and 3 with respect to Oriental's subsidiaries, number 4, number 5 with
respect to the Escrow  Agreement,  numbers 6, 7 and 8, number 9 with  respect to
Oriental's subsidiaries and numbers 10 and 12 of Schedule D to the Agreement.

The undersigned also  acknowledges that Oriental has advised it that no Consents
or  Regulatory  Approvals  are required to be obtained by Oriental in connection
with the Agreement

DATED January 12, 2005.

DRAGON PHARMACEUTICAL INC.

/s/ Dr. Alexander Wick
-------------------------
Dr. Alexander Wick
President

                                       1
WAIVER AND ACKNOWLEDGEMENT

To:       Dragon Pharmaceutical Inc. ("Dragon")

Re:       Share Purchase Agreement (the "Agreement") made among Dragon, Oriental
          Wave  Holding  Ltd.  ("Oriental"),  Yan-Lin Han,  Zhan-Guo  Weng,  and
          Xue-Mei Liu (collectively, the "Vendors" and each, a "Vendor")

--------------------------------------------------------------------------------

The Vendors,  pursuant to ss.4.2 of the  Agreement,  hereby waive  compliance by
Dragon of its obligation under the Agreement to deliver

1.   pursuant to ss.6.3(c), a certificate of status,  compliance,  good standing
or like  certificate  with  respect  to each  subsidiary  of  Dragon,  issued by
appropriate   government   officials  of  their   respective   jurisdictions  of
incorporation, and

2.   pursuant to ss.6.3(k),  legal  opinions  addressing  the matters set out in
Schedule E to the Agreement.

The undersigned  also  acknowledge that Dragon has advised them that no Consents
or Regulatory  Approvals  other than the approval of the Toronto Stock  Exchange
are required to be obtained by Dragon under the Agreement.

DATED January 12, 2005.

/s/ Yan-Lin Han
----------------------
Yan-Lin Han

/s/ Zhan-Guo Weng
----------------------
Zhan-Guo Weng

/s/ Xue-Mei Liu
----------------------
Xue-Mei Liu

                                       2
Exhibit 10.17

                                ESCROW AGREEMENT

THIS AGREEMENT is made effective this 12th day of January, 2005

AMONG:

          DRAGON  PHARMACEUTICAL  INC.,  of 1990 - 1055  West  Hastings  Street,
          Vancouver, British Columbia, V6E 2E9

          ("Dragon")

AND:

          LML&S  SERVICES  INC. of 1500 - 1055 West Georgia  Street,  Vancouver,
          British Columbia, V6E 4N7

          ("Escrow Agent")

AND:

          YAN-LIN  HAN,  c/o Shanxi  Weigida  Pharmaceutical  Co.  Ltd.,  Datong
          Economic and Technology Development Zone, Shanxi, China 037300

          ZHAN-GUO  WENG,  c/o Shanxi Weigida  Pharmaceutical  Co. Ltd.,  Datong
          Economic and Technology Development Zone, Shanxi, China 037300

          XUE-MEI LIU, c/o Yongfeng  Enterprise,  9/F, Tower B, Yingjia  Center,
          No. 2, Dongsanhuan Nanlu, Chaoyang District, Beijing, China 100022

          (collectively, the "Vendors" and each, a "Vendor")

WHEREAS:

(A)  Pursuant  to a share  purchase  agreement  made June 11,  2004 (the  "Share
Purchase  Agreement")  among Dragon,  the Vendors and Oriental Wave Holding Inc.
("Oriental"),  the  Vendors  have sold their  shares of  Oriental  to Dragon for
common shares of Dragon; and

(B)  The Share Purchase  Agreement  provides for the deposit by the Vendors with
the Escrow  Agent of  certificates  representing  a total of  26,533,405  common
shares of Dragon,  to be held and released in accordance  with the terms of this
Agreement;

WITNESSES that in consideration of the mutual covenants and agreements contained
in this  Agreement and in the Share  Purchase  Agreements,  the Parties agree as
follows:

                                       1
PART 1

                    DEFINITIONS, INTERPRETATION AND SCHEDULES

Definitions

1.1  In this Agreement, except as otherwise expressly provided or as the context
otherwise requires,

     (a)  "ADCS  Escrow  Shares"  means a total of  4,282,402  common  shares of
     Dragon deposited  hereunder and designated in the Share Purchase  Agreement
     as the "Additional Dragon Closing Shares";

     (b)  "Agreement"  means this Escrow  Agreement and the  schedules  attached
     hereto, as may be supplemented or amended from time to time and in effect;

     (c)  "Business Day" means a day that is not a Saturday, Sunday or statutory
     holiday in Vancouver, British Columbia;

     (d)   "Claim" has the meaning ascribed to it in ss.4.4;

     (e)  "DCS  Escrow  Shares"  means a total of  22,251,003  common  shares of
     Dragon deposited  hereunder and designated in the Share Purchase  Agreement
     as the "Dragon Closing Shares";

     (f)  "Dispute" has the meaning ascribed to it in ss.5.1;

     (g)  "Effective Date" means the effective date of this Agreement, being the
     date first above written;

     (h)   "Escrow Agreement Claim" has the meaning ascribed to it in ss.3.5;

     (i)  "Escrow  Shares"  means  the ADCS  Escrow  Shares  and the DCS  Escrow
     Shares;

     (j)  "Force  Majeure"  means any event or occurrence  beyond the reasonable
     control  of  a  Party  which  prevents  such  Party  from   performing  its
     obligations under this Agreement including an act of God, government order,
     strike,  lockout  or other  industrial  disturbance,  war,  terrorist  act,
     blockade,  insurrection,  riot, earthquake,  typhoon,  hurricane,  flood or
     other natural disaster;

     (k)  "Notice" has the meaning ascribed to it in ss.6.2;

     (l)  "Party" means a Person that is a party to this Agreement;

     (m)  "Person" means any individual,  company, body corporate, firm, limited
     or unlimited  liability  company,  partnership,  syndicate,  joint venture,
     society,  association,  trust,  unincorporated  organisation  or government
     authority,  or  any  trustee,   executor,   administrator  or  other  legal
     representative thereof;

                                       2
(n)  "Vendors' Declaration" has the meaning ascribed to in ss.4.8; and

     (o)  "Vendors'  Representative"  means  Yan-Lin  Han or another  individual
     appointed by the Vendors to act as their  representative,  provided written
     notice of such appointment is provided to Dragon and the Escrow Agent;

Interpretation

1.2  In this Agreement, except as otherwise expressly provided,

     (a)  the headings are for  convenience  only and do not form a part of this
     Agreement  and are not  intended to  interpret,  define or limit the scope,
     extent or intent of this Agreement or any provision hereof;

     (b)  whenever  required by context,  a word importing the masculine  gender
     includes the feminine or neuter gender and a word in the singular  includes
     the plural and vice versa;

     (c)  a reference  to a Part means a Part of this  Agreement  and the symbol
     "ss."  followed  by a number or letter or some  combination  of numbers and
     letters  refers to the provision of this  Agreement so  designated  and the
     words "hereof", "hereto", "herein" and "hereunder" refer to the entirety of
     this Agreement rather than any particular Part or section;

     (d)  a  reference  to a statute  includes  all  regulations  made  pursuant
     thereto, all amendments to the statute or regulations in force from time to
     time and any statute or  regulations  that  supplement  or  supersede  such
     statute or regulations;

     (e)  a reference  to a corporate  entity  includes  any  successor  to that
     entity;

     (f)  a reference to currency means Canadian currency;

     (g)  a reference  to  "approval",  "authorization",  "notice" or  "consent"
     means  written  approval,  authorization,  notice  or  consent  not  to  be
     unreasonably withheld or delayed;

     (h)  the  words  "including"  and  "include",   when  following  a  general
     statement  or  term,  are  not to be  construed  as  limiting  the  general
     statement  or term to any  specific  item or matter set forth or to similar
     items or matters, but rather as permitting the general statement or term to
     refer to all other items or matters that could  reasonably  fall within its
     broadest possible scope; and

     (i)  an  accounting  term not  otherwise  defined  herein  has the  meaning
     assigned to it, and every  calculation  to be made hereunder is to be made,
     in  accordance  with Canadian  Generally  Accepted  Accounting  Principles,
     applied on a consistent basis.

                                       3
PART 2

                             ESTABLISHMENT OF ESCROW

Appointment of Escrow Agent

2.1  Dragon and the Vendors  hereby  appoint  the Escrow  Agent to act as escrow
agent,  and the  Escrow  Agent  agrees  to such  appointment,  on the  terms and
conditions set forth in this Agreement.

Power of Attorney Forms

2.2  Together with the Escrow  Shares,  each Vendor will deposit with the Escrow
Agent ten undated  executed  share transfer power of attorney forms in favour of
Dragon (the "PoA Forms") and each Vendor  hereby  authorizes  Dragon to complete
such Vendor's PoA Forms for the purpose of effecting the return and cancellation
of the Escrow Shares as may be provided for pursuant to this Agreement.

Acceptance of Deposits

2.3  The Escrow Agent hereby  acknowledges  receipt of the Escrow Shares and PoA
Forms and  concurrent  with the execution of this Agreement will deliver to each
Vendor a receipt for the Escrow Shares they deposited.

                                     PART 3

                                  ESCROW AGENT

Escrow Shares and PoA Forms

3.1  The Escrow  Shares and PoA Forms  deposited  with the Escrow  Agent will be
held in escrow  and  dealt  with by the  Escrow  Agent in  accordance  with this
Agreement.

Terms and Conditions

3.2  The Escrow Agent accepts its duties and obligations under this Agreement on
the following terms and conditions:

     (a)  the Escrow Agent may rely upon any notice, request, statement, waiver,
     consent, receipt, certificate or any paper or document furnished to it, and
     executed  with or  without  seal by any of  Dragon or a Vendor or any other
     Person, not only as to its due execution and the validity and effectiveness
     of its  provisions  but  also  as to the  truth  and  acceptability  of any
     information therein contained, and the Escrow Agent will not be required to
     determine the  authenticity of signatures or the power and authority of any
     signatory to execute any document;

                                       4
(b)  the  Escrow  Agent may engage  such  professional  advisers  and legal
     counsel as it  determines  to be  necessary or advisable in order to fulfil
     its obligations under this Agreement;

     (c)  the Escrow  Agent will not be  required to make any  determination  or
     decision  with respect to the validity of any claim made by any Party or of
     any denial thereof but will be entitled to rely  conclusively  on the terms
     hereof  and the  documents  tendered  to it in  accordance  with the  terms
     hereof;

     (d)  the duties and  obligations  of the Escrow Agent  hereunder are purely
     administrative  in nature and the  Escrow  Agent will not be liable for any
     error of  judgement,  or for any act done or step taken or omitted by it in
     good faith, or for any mistake of fact or law, or for anything which it may
     do or  refrain  from  doing in  connection  herewith,  except for the gross
     negligence, wilful default or dishonesty of its employees or agents;

     (e)  upon the Escrow  Agent's  delivery of the Escrow  Shares in accordance
     with the  provisions  of this Escrow  Agreement,  the Escrow  Agent will be
     automatically  and  immediately  released  from all duties and  obligations
     under this  Agreement  to any Party and to any other Person with respect to
     any of the Escrow Shares held in escrow under this Agreement;

     (f)  the  Escrow  Agent may,  if the Escrow  Agent  deems it  necessary  or
     desirable,  seek advice and  directions  from the Supreme  Court of British
     Columbia with respect to its duties and obligations hereunder; and

     (g)  the duties and  obligations of the Escrow Agent  hereunder will at all
     times be  subject  to the  orders  or  directions  of a court of  competent
     jurisdiction in the Province of British Columbia.

Consents and Waivers

3.3  The Escrow Agent will have no duties  except as expressly set forth herein,
and will not be bound by any notice of a claim or demand with  respect  thereto,
or any  waiver,  modification,  amendment,  termination  or  rescission  of this
Agreement,  unless  received  by it in writing,  and  executed by Dragon and the
Vendors,  and, if the Escrow Agent's duties,  obligations or liabilities  herein
are affected, unless it gives its written consent thereto.

Interpleader

3.4  The Escrow  Agent may, at any time,  give notice to all other  Parties that
the Escrow Agent is terminating its duties and obligations hereunder, and

     (a)  at any time more than 30 days after it gives such notice; and

     (b)  before  the  other  Parties  jointly  direct  the  Escrow  Agent as to
     delivery of the Escrow Shares in its possession to some other Person,

                                       5
may deliver the Escrow Shares in its  possession to the Supreme Court of British
Columbia by way of interpleader and will thereupon be released of its duties and
obligations hereunder.  The Parties agree that in no event will the Escrow Agent
be held liable for any failure to deliver all or a portion of the Escrow  Shares
during the period referred to in ss.3.4(a).

Indemnity

3.5  The Vendors,  collectively,  and Dragon (each an "Indemnifying Party") will
jointly and  severally  indemnify  and save  harmless  the Escrow Agent from and
against any and all actions,  suits,  investigations,  proceedings  or claims of
every kind (each an "Escrow Agreement Claim") and any and all expenses,  losses,
damages  or  liabilities,  including  reasonable  attorney's  fees  and  charges
incidental  thereto  (collectively   "Liabilities")  as  and  when  incurred  or
sustained,  and the  reasonable  fees and  expenses  incurred by Escrow Agent in
investigating  or  defending  an Escrow  Agreement  Claim to which it may become
subject or otherwise  involved in any capacity  insofar as such Escrow Agreement
Claims or Liabilities  arise out of or are based,  directly or indirectly,  upon
the Escrow Agent's performance of its duties and obligations  hereunder,  except
to the extent that the Escrow  Agent's  agents or employees  are guilty of gross
negligence,  wilful default or dishonesty in the  performance of such duties and
obligations.  If an  Indemnifying  Party pays an amount to the  Escrow  Agent in
respect of a Liability  hereunder,  then such Indemnifying  Party is entitled to
recover  from the  other  Indemnifying  Party  one-half  of the  amount  of such
Liabilities paid.

Fees and Expenses

3.6  The  Indemnifying  Parties will jointly and severally  reimburse the Escrow
Agent  for any and all  fees  and  expenses  incurred  in  connection  with  the
performance  of its  duties  hereunder,  including  but not  limited to fees and
expenses incurred pursuant to ss.3.4. If an Indemnifying Party pays an amount to
the  Escrow  Agent in  respect  of any fees and  expenses  hereunder,  then such
Indemnifying  Party is entitled  to recover  from the other  Indemnifying  Party
one-half of the amount of such fees and expenses paid.

Escrow Agent's Counsel

3.7  Each of the parties  confirms  that it is aware that the Escrow  Agent is a
corporation  that is  controlled  and directed by Lang  Michener,  which acts as
counsel to Dragon.  The Escrow Agent may not retain Lang  Michener as counsel in
the event of any dispute hereunder.

                                     PART 4

                               RELEASE FROM ESCROW

Release of Escrow Shares

4.1  The Escrow Agent will release the Escrow Shares and PoA Forms held by it in
escrow and discharge its obligations hereunder only in accordance with

                                       6
(a)  joint written  instructions  from Dragon (executed by a senior officer
     other  than  any  Vendor  who  is  a  senior   officer)  and  the  Vendors'
     Representative,

     (b)  in the  circumstances of ss.4.5(a),  ss.4.5(b) or ss.4.7,  the written
     instruction of Dragon,

     (c)  in  the  circumstances  of  ss.4.8,  the  written  instruction  of the
     Vendors' Representative that is not disputed by Dragon, or

     (d)  an award or decision of an arbitrator pursuant to Part 5or an order of
     a court of competent jurisdiction in a final determination.

Delivery

4.2  Upon  receipt of the  instructions  described  in ss.4.1,  the Escrow Agent
will,  within five Business Days,  deliver the applicable  Escrow Shares and PoA
Forms in accordance with such instructions.

Joint Direction

4.3  Notwithstanding  any  other  provision  of this  Part,  but  subject  to an
applicable award,  decision or order referred to in ss.4.1(d),  the Escrow Agent
may act in  accordance  with a written  direction  executed by all other Parties
amending  the  procedures  set forth in this Part or the Escrow  Agent's  duties
under this Agreement.

Conditions for Release of DCS Escrow Shares

4.4  Dragon and the  Vendors  acknowledge  that the DCS Escrow  Shares have been
deposited  under  this  Agreement  in support  of  certain  representations  and
warranties made by the Vendors to Dragon,  and will be released from escrow only
if no claim (a "Claim") is made by Dragon  against the Vendors for a breach of a
representation  or warranty  made by the  Vendors to Dragon  under Part 3 of the
Share Purchase Agreement or, if a Claim is made, upon its resolution.

4.5  If

     (a)  no  Claim  is made by  Dragon  by the  first  anniversary  of the date
     hereof, Dragon will deliver a notice under ss.4.1(b) instructing the Escrow
     Agent to deliver 40% of the DCS Escrow Shares to the Vendors,

     (b)  no Claim  is made by  Dragon  by the  second  anniversary  of the date
     hereof, Dragon will deliver a notice under ss.4.1(b) instructing the Escrow
     Agent to deliver the remaining DCS Escrow Shares to the Vendors,

     (c)  if a Claim is made by Dragon, any DCS Escrow Shares and PoA Forms that
     are in escrow at the date the  Claim is made  will  remain in escrow  under
     this Agreement until an instruction,  award, decision or order is delivered
     under ss.4.1(a) or (d), and

                                       7
(d)  upon a final  determination  being made in respect of a Claim,  Dragon
     and the Vendors will  instruct the Escrow Agent on the  disposition  of the
     DCS  Escrow  Shares  and PoA Forms,  with any  determination  as to the DCS
     Escrow  Shares  and PoA  Forms,  if  any,  to be  returned  to  Dragon  for
     cancellation  to be made in accordance with the provisions of Part 8 of the
     Share Purchase Agreement.

Conditions for Release of ADCS Escrow Shares

4.6  Dragon and the Vendors  acknowledge  that the ADCS Escrow  Shares have been
issued in anticipation of the exercise of the Dragon Convertible  Securities (as
defined  in the  Share  Purchase  Agreement)  and  are  subject  to  release  or
cancellation  in the  circumstances  set out in Schedule B of the Share Purchase
Agreement.  Dragon covenants that while any Dragon Convertible Securities remain
outstanding it will provide a monthly report to the Vendors and the Escrow Agent
confirming  whether and to what extent the Dragon  Convertible  Securities  have
been exercised, expired unexercised or otherwise been cancelled.

4.7  On a  quarterly  basis,  or sooner at the  request of the Vendors or at the
discretion  of Dragon,  Dragon will  deliver a written  notice  under  ss.4.1(b)
instructing the Escrow Agent to deliver to the Vendors or Dragon, as applicable,
the ADCS Escrow Shares and PoA Forms subject to release or cancellation pursuant
to Schedule B to the Share Purchase Agreement.

Release Requested by Vendors

4.8  If  Dragon  fails  to  deliver  a notice  when  required  under  ss.4.5(a),
ss.4.5(b)  or ss.4.7,  the Vendors may request the release of the Escrow  Shares
and PoA Forms as provided under ss.4.5(a),  ss.4.5(b) or ss.4.7 by delivering to
the Escrow Agent and Dragon a statutory declaration (the "Vendors' Declaration")
executed by the  Vendors'  Representative  that the Vendors are  entitled to the
release of the

     (a)  DCS Escrow Shares as no Claim has been made by Dragon, or

     (b)  ADCS Escrow Shares on the basis of the calculations provided by Dragon
     under ss.4.6.

If within 10 Business Days of the receipt of the Vendors' Declaration the Escrow
Agent has not  received  from  Dragon a written  notice  that it  disputes  such
declaration,  the Escrow Agent will release the applicable Escrow Shares and PoA
Forms to the Vendors.

Pro Rata Release of Escrowed Shares

4.9  Any release of Escrow Shares to the Vendors  hereunder  will be made in the
following proportions:

                  Yan-Lin Han               70%
                  Zhan-Guo Weng             20%
                  Xue-Mei Liu               10%

                                       8
Voting of DCS Escrow Shares

4.10 The Vendors  will be entitled to exercise all voting  rights in  connection
with the DCS Escrow  Shares  notwithstanding  their deposit in escrow under this
Agreement.

Voting and Dividends - ADCS Escrow Shares

4.11 Neither the Vendors nor any other  person will be entitled to exercise  any
voting rights or receive any dividends or  distributions  in respect of the ADCS
Escrow Shares until they have been released from escrow under this Agreement.

Exchanging Share Certificates

4.12 If any release of Escrow Shares under this Part 4would  require a number of
shares  to be  released  that is less  than the  number  represented  by a share
certificate,  then the Escrow Agent is hereby authorized and directed to arrange
for the  splitting  of a share  certificate,  with such shares to be released in
accordance with the  instructions  described in ss.4.1 and a certificate for the
balance of the shares to be returned  into escrow.  The parties  (other than the
Escrow  Agent)  will  cooperate  with the Escrow  Agent to  complete  its duties
hereunder  including  providing any certificates or other documents requested by
the Escrow Agent

                                     PART 5

                               DISPUTE RESOLUTION

Submission to Arbitration

5.1  If,  at any  time,  there  is a  dispute,  controversy  or  claim  (each  a
"Dispute")  with  respect  to any  matter  arising  out of or  relating  to this
Agreement,  such Dispute will be referred to arbitration in accordance  with the
arbitration  provisions  of the Share  Purchase  Agreement,  and each Party will
accept as final and binding and proceed in good faith  diligently  to  implement
the award or decision of the arbitrator.

                                     PART 6

                               GENERAL PROVISIONS

Governing Law

6.1  This  Agreement  will be  exclusively  governed  by,  and  interpreted  and
construed in  accordance  with,  the laws  prevailing in the Province of British
Columbia and the Parties irrevocably and unconditionally attorn to the exclusive
jurisdiction of the courts of British  Columbia and all courts having  appellate
jurisdiction thereover.

                                       9
Notice

6.2  Every notice,  request,  demand or direction  (each a "Notice") to be given
pursuant  to this  Agreement  must be in writing and must be  delivered  by hand
(e.g.  Federal Express or other reputable  courier service) or sent by facsimile
transmission or other similar form of written  transmission by electronic means,
in each case addressed as follows:

     (a)  If to Dragon, at:

          1900 - 1055 West Hastings Street
          Vancouver, British Columbia
          Canada V6E 2E9
          Attention:  Secretary
          Telecopier:  (604) 669-4243

     (b)  If to either Yan Lin Han or Zhan Guo Weng, at:

          c/o Shanxi Weiqida Pharmaceutical Co. Ltd.
          Datong Economic and Technology Development Zone
          Shanxi, China 037300
          Telecopier:  +86-352-6116451

     (c)  If to Xue-Mei Liu, at:

          c/o Yongfeng Enterprise
          9/F, Tower B, Yingjia Center
          No. 2, Dongsanhuan Nanlu, Chaoyang District
          Beijing, China 100022
          Telecopier:  +86-10-6566-2924

          with a copy to:

          Bull, Housser & Tupper
          Barristers & Solicitors
          3000 - 1055 West Georgia Street
          P.O. Box 11130
          Vancouver, BC  V6E 3R3
          Attention:        Marion V. Shaw
          Facsimile:        (604) 641-4949

     (d)  If to the Escrow Agent, at:

          LML&S Services Inc.
          1500 - 1055 West Georgia Street
          P.O. Box 11117
          Vancouver, British Columbia
          Canada V6E 4N7
          Attention: Secretary
          Telecopier:  (604) 685-7084

                                       10
or to such other  address or  transmission  receiving  number as  specified by a
Party by Notice to the other Parties.

6.3  A notice delivered or sent in accordance with the preceding section will be
deemed to be given and received

     (a)  at 9:00  a.m.  on the day of  delivery  or  receipt  at the  place  of
     delivery  or receipt  if that day is a  Business  Day at that place and the
     delivery or receipt is before that time on that day,

     (b)  at the time of  delivery  or receipt if received on or after 9:00 a.m.
     and before 4:00 p.m. at the place of delivery or receipt on a day that is a
     Business Day at that place, and

     (c)  at 9:00 a.m.  at the place of delivery or receipt on the next day that
     is a Business Day at that place,  if delivered or received on a day that is
     not a Business Day at that place or after 4:00 p.m. at that place.

Language of Document

6.4  All  correspondence  in respect of this  Agreement  or the  enforcement  of
rights of the parties hereunder will be made in the English language only.

Time of Essence

6.5  Time is of the essence in the  performance  of each  obligation  under this
Agreement.

Termination and Discharge of Escrow Agent

6.6  This  Agreement  will  terminate and the Escrow Agent will be discharged of
its obligations in any of the following circumstances:

     (a)  the Escrow Shares are properly released in accordance with Part 4;

     (b)  this  Agreement is terminated by the Escrow Agent under ss.3.4 and the
     Escrow Shares are safely in the hands of the new appointee or the court; or

     (c)  the  destruction  or  corruption  of the Escrow  Shares,  if any, as a
     result of Force Majeure.

Force Majeure

6.7  No Party  will be  liable to any other  Party for  default  or delay in the
performance of its  obligations  under this Agreement to the extent such default
or delay is caused by an occurrence of Force Majeure.

                                       11
Entire Agreement

6.8  The Escrow  Agent is not a party to,  and is not bound by,  any  provisions
which may be  evidenced  by, or arise out of,  any  agreement  other than as set
forth in the express provisions of this Agreement.

Waiver and Consent

6.9  No delay or failure  by a Party to  exercise  any of its rights  under this
Agreement constitutes a waiver of any such right. No consent or waiver,  express
or implied,  by a Party to, or of any breach or default by another Party of, any
or all of its obligations under this Agreement will,

     (a)  be valid  unless it is in writing and stated to be a consent or waiver
     pursuant to this ss.6.9,

     (b)  be  relied  upon as a consent  to or  waiver  of any  other  breach or
     default of the same or any other obligation,

     (c)  constitute a general waiver under this Agreement, or

     (d)  eliminate or modify the need for a specific consent or waiver pursuant
     to this ss.6.9 in any other or subsequent instance.

Severability

6.10 If any provision of this Agreement is at any time  unenforceable or invalid
for any reason,  it will be severable  from the remainder of this Agreement and,
in its application at that time, this Agreement will be construed as though such
provision was not contained herein and the remainder will continue in full force
and effect and be construed as if this  Agreement had been executed  without the
invalid or unenforceable provision.

Amendments

6.11 This Agreement may not be amended except in writing signed by each Party.

Further Assurances

6.12 Each Party will  execute  and deliver  such  further  agreements  and other
documents  and do such  further  acts and  things as  another  Party  reasonably
requests to  evidence,  carry out or give full force and effect to the intent of
this Agreement.

No Agency

6.13 Each Party is an independent contractor and nothing herein will, or will be
deemed to, create any  employer/employee,  agency,  partnership or joint venture
relationship  among the Parties or to give any Party any right or  authority  to
act as the agent of,  assume or create any  obligation on behalf of or to pledge
the credit of any other Party.

                                       12
Assignment

6.14 This Agreement and the individual rights and obligations  hereunder may not
be  transferred  or  assigned  in  whole  or in part by any  Party,  whether  by
contract,  operation  of law or  otherwise,  without  the  consent of each other
Party,  and any purported  transfer or  assignment  without such consent will be
null and void.  Nothing in this  ss.6.14 will be deemed to limit or restrict the
Escrow Agent's rights under ss.3.4.

Enurement

6.15 This Agreement and the  provisions  hereof will enure to the benefit of and
be binding  upon the  Parties  and their  respective  successors  and  permitted
assigns.

Survival

6.16 All rights and  obligations of the Parties  occurring  before the effective
date of termination of this Agreement and all rights and  obligations  expressly
stated to  continue  after,  or accrue as a result of, the  termination  of this
Agreement  are  separate  and  distinct  rights and  obligations  binding on the
Parties, will survive its termination and will continue in full force and effect
and nothing  herein  will  affect the  enforceability  of such  provisions.  For
greater certainty,  the premature  termination of this Agreement will not affect
the rights and obligations of any Party under ss.3.4, ss.3.5 and Part 6.

Counterparts

6.17 This Agreement may be executed in any number of  counterparts,  in original
form or by facsimile, each of which will together, for all purposes,  constitute
one and the same  instrument,  binding  on the  Parties,  and each of which will
together be deemed to be an original,  notwithstanding  that each Party is not a
signatory to the same counterpart.

IN WITNESS  WHEREOF this  Agreement  has been  executed by the Parties as of the
Effective Date.

DRAGON PHARMACEUTICAL INC.

Per:   /s/ Dr. Alexander Wick
       ----------------------------------
       Authorized Signatory

LML&S SERVICES INC.

Per:
       ----------------------------------
        Authorized Signatory

                                       13
Signed, Sealed and Delivered by Yan-Lin Han)
in the presence of                         )
                                           )
                                           ) /s/ Yan-Lin Han
---------------------------------------    ) -------------------------------
Witness (Signature)                        ) YAN-LIN HAN
                                           )
                                           )
---------------------------------------    )
Name (please print)                        )
                                           )
                                           )
---------------------------------------    )
Address                                    )
                                           )
                                           )
---------------------------------------    )
City, Province                             )
                                           )
                                           )
---------------------------------------    )
Occupation                                 )

Signed, Sealed and Delivered by Zhan-Guo   )
Weng in the                                )
presence of:                               )
                                           )
                                           )
                                           ) /s/ Zhan-Guo Weng
---------------------------------------    ) -------------------------
Witness (Signature)                        ) ZHAN-GUO WENG
                                           )
                                           )
---------------------------------------    )
Name (please print)                        )
                                           )
                                           )
---------------------------------------    )
Address                                    )
                                           )
                                           )
---------------------------------------    )
City, Province                             )
                                           )
                                           )
---------------------------------------    )
Occupation                                 )

                                       14
Signed, Sealed and Delivered by Xue-Mei Liu)
in the presence of:                        )
                                           )
                                           )
                                           ) /s/ Xue-Mei Liu
--------------------------------------     ) ----------------------
Witness (Signature)                        ) XUE-MEI LIU
                                           )
                                           )
---------------------------------------    )
Name (please print)                        )
                                           )
                                           )
---------------------------------------    )
Address                                    )
                                           )
                                           )
---------------------------------------    )
City, Province                             )
                                           )
                                           )
---------------------------------------    )
Occupation                                 )

                                       15
Exhibit 99.1

        Dragon Receives Approval from Shareholders in Connection with the
                   Acquisition of Oriental Wave Holding Ltd.

VANCOUVER,  Jan. 11, 2005 - Dragon  Pharmaceutical Inc. (OTC BB: DRUG; TSX: DDD;
BBSE:  DRP) ("the Company") is pleased to announce that at the Annual Meeting of
Shareholders held on January 11, 2005, the shareholders approved the acquisition
by Dragon of Oriental  Wave by  accepting  all the  proposals in over 99% of the
shares  represented  and  voting.  Over  82%  of  the  outstanding  shares  were
represented at the meeting. In addition, Dr. Sun and Dr. Wick were re-elected to
the Board,  and Moore  Stephen Ellis Foster were ratified to audit the Company's
financial  statements for the year ended December 31, 2004.

"We, at Dragon, are delighted that this acquisition of Oriental Wave on which we
have  worked  hard  for an  extended  period  of time has  been  approved  by an
overwhelming  majority of our  shareholders.  This  demonstration  of unity will
provide an excellent basis to  successfully  face the challenges of the future,"
said Dr.  Alexander  Wick,  President  and CEO of  Dragon.  "Both  the  physical
presence of individual  Dragon  shareholders  and the owners of Oriental Wave at
the meeting have been highly  appreciated."

The  Company  also  wishes to  announce  that the  Toronto  Stock  Exchange  has
conditionally approved the issue of shares in connection with the acquisition of
Oriental Wave, subject to the filing of customary documentation. The Company and
Oriental  Wave expect the  acquisition  to close within the next couple of days.

About Dragon  Pharmaceutical Inc.

Dragon  Pharmaceutical  Inc.  is  an  international  bio-pharmaceutical  company
headquartered in Vancouver,  Canada,  with a GMP production facility in Nanjing,
China.  Dragon's EPO has been  marketed to treat anemia due to renal failure and
surgery  in 9  countries:  China,  India,  Egypt,  Brazil,  Peru,  Ecuador,  the
Dominican   Republic,   Trinidad-Tobago   and  Kosovo.   Additional   regulatory
submissions are in progress  throughout Central and Eastern Europe,  Asia, Latin
America,  the Middle East and Africa and the Company is in the final preparation
to enter the  European  Union  market.

About  Oriental  Wave  Holding  Limited.

Oriental  Wave  Holding  Limited  is a  privately  held  holding  company of its
operating subsidiary, Shanxi Weiqida Pharmaceutical Co. Ltd. The Company engages
in production and sales of generic  pharmaceutical  and chemical products with 3
production  facilities in Datong city,  China.

For further information please contact:

    Dragon  Pharmaceutical Inc.
    Garry Wong, CFA, IMBA
    Telephone: +1-(604)-669-8817 or North America Toll Free: 1-877-388-3784
    Email:  irdragon@dragonpharma.com
    Website:  www.dragonbiotech.com or  www.dragonpharma.com
    or

                                       1
Renmark
    Financial Communications Inc.
    John Boidman: jboidman@renmarkfinancial.com
    Sylvain Laberge: slaberge@renmarkfinancial.com
    Media - Cynthia Lane: clane@renmarkfinancial.com
    Telephone: +1-(514) 939-3989
    Website: www.renmarkfinancial.com

                                       2
Exhibit 99.2

           Dragon Completes Acquisition of Oriental Wave Holding Ltd.
                and Announces Appointment of Key Management Team

VANCOUVER,  Jan. 14, 2005- Dragon  Pharmaceutical  Inc. (OTC BB: DRUG; TSX: DDD;
BBSE:  DRP) ("the  Company") is pleased to announce  that it has  completed  the
acquisition of Oriental Wave Holding Ltd.

At closing, and as described in Dragon's proxy statement dated December 8, 2004,
Mr. Yanlin Han, Mr.  Zhanguo Weng and Ms. Xuemei Liu were appointed to the Board
of Directors  that now consists of five members  including  Dr. Wick and Dr. Sun
who were re-elected at the Company's annual meeting of  shareholders.  The Board
of Directors  also  appointed the following  individuals  as the key  management
team:

     Mr. Yanlin Han as the Chief Executive Officer
     Dr. Alexander Wick as the President
     Mr. Zhanguo Weng as the Vice President, China Operation
     Mr. Garry Wong, CFA as the Chief Financial Officer Ms.
     Maggie Deng as the Chief Operating Officer

"The first  practical  step to integrate  the original  Dragon and Oriental Wave
into a new and  efficient  organization  has already  been  started"  said,  Dr.
Alexander  Wick,  President of Dragon.  "A new and  state-of-the-art  production
facility for EPO  (Erythropoietin)  using the proven cell-line and technology of
Nanjing Huaxin Bio-pharmaceutical Co. Ltd., the Company's subsidiary in Nanjing,
is being set up on  Dragon's  Chemical  division  campus in Datong,  sharing the
existing energy and administrative infrastructure. This campus will also house a
new workshop  for the  freeze-drying  of  temperature  sensitive  pharmaceutical
products,  among  them,  Levofloxacin,  a  currently  marketed  product  of  the
Company."

About Dragon Pharmaceutical Inc.

Dragon  Pharmaceutical  Inc.  (Ticker:  OTCBB:  DRUG, TSX: DDD, BBSE: DRP) is an
international  pharmaceutical company headquartered in Vancouver, Canada, with 4
production  facilities  located  in  Nanjing  and  Datong,  China.  The  Company
currently  produces  more than 40 products in China and markets them in China as
well as internationally.  These products are organized under 3 distinct business
divisions:  a Pharma  division for  prescription  and  over-the-counter  generic
drugs, a Chemical division for bulk pharmaceutical  chemicals such as Clavulanic
Acid,  7-ACA and  sterilized  bulk  drugs,  and a Biotech  division  for EPO and
in-licensed  G-CSF.  For the full year of 2003, the Company  achieved  pro-forma
revenues of US$29.7 million and a net profit of US$5.59 million.

     For further information please contact:
     Dragon Pharmaceutical Inc.
     Garry Wong, CFA, IMBA
     Telephone: +1-(604)-669-8817 or North America Toll Free: 1-877-388-3784
     Email: irdragon@dragonpharma.com
     Website: www.dragonbiotech.com or www.dragonpharma.com

                                       1
or

     Renmark Financial Communications Inc.
     John Boidman : jboidman@renmarkfinancial.com
     Sylvain Laberge : slaberge@renmarkfinancial.com
     Media - Cynthia Lane : clane@renmarkfinancial.com
     Telephone: +1-(514) 939-3989
     Website: www.renmarkfinancial.com

     Cautionary  Statement for Purposes of the "Safe  Harbor"  Provisions of the
     Private  Securities  Litigation  Reform Act of 1995: All statements,  other
     than  historical  facts,  included  in  the  foregoing  press  release  are
     forward-looking  statements.  These  statements  are based on  management's
     beliefs  and  assumptions,   and  on  information  currently  available  to
     management.  Forward-  looking  statements  are not  guarantees  of  future
     performance.  They involve risk,  uncertainties  and assumptions  including
     risks discussed under "Risks Associated With Dragon  Pharmaceutical" in the
     Company's  annual report on Form 10-K, SEC File No.: 0- 27937, all of which
     are  incorporated  herein by reference.  The Company does not undertake the
     obligation to publicly revise these  forward-looking  statements to reflect
     subsequent events or circumstances.

                                       2