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): November 15, 2004



                           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>

Section 2 - Financial Information
---------------------------------

Item 2.02   Results of Operations and Financial Condition

          Dragon Pharmaceutical Inc. announced its results for the third quarter
ended September 30, 2004 on the attached press release.


Section 9 - Financial Statements and Exhibits
---------------------------------------------

Item 9.01   Financial Statements and Exhibits

            Exhibit No.         Exhibit Description
            -----------         -------------------

                99              Press release announcing third quarter results



<PAGE>


                                    SIGNATURE

     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.


                                    DRAGON PHARMACEUTICAL INC.,
                                    a Florida Corporation


Dated:  November 17, 2004           /s/ Matthew Kavanagh
        -------------------         --------------------------------------------
                                    Matthew Kavanagh
                                    Director of Finance and Compliance
                                    (Principal Financial and Accounting Officer)


<PAGE>

                                  EXHIBIT INDEX


        Exhibit No.             Description
        -----------             -----------

            99                  Press release dated November 15, 2004 titled
                                "Dragon  Reports Third Quarter Results of 2004"


<PAGE>

                                                                EXHIBIT 99
                                                                ----------

                  Dragon Reports Third Quarter Results of 2004

Vancouver,  BC- November 15, 2004. - Dragon  Pharmaceutical  Inc. (TSX: DDD; OTC
BB: DRUG;  BBSE:  DRP) is pleased to announce the results for the third  quarter
ended September 30, 2004.

For the three-month ended September 30, 2004
--------------------------------------------
During the third quarter in 2004, the Company posted revenues of $1,057,254 from
the sales of rHu Erythropoietin (EPO) compared to $1,151,646 for the same period
of the prior year.  Revenues of $691,669  were  generated  in China and $365,585
from outside of China during the third  quarter of 2004  compared to $742,467 in
China and $409,179 from outside of China for the same period in 2003.  The gross
profit  margin was 73% for the  period in 2004,  which  improved  from the gross
margin of 69% for the same period in 2003.

Net loss for the third quarter in 2004 was $212,148 or $0.01 per share, compared
to a net loss of $282,581 or $0.01 per share,  for the same period in 2003.  The
decrease  in net loss for the  third  quarter  in 2004 was  mainly  due to lower
selling,  general and  administrative  expenses  and  research  and  development
expenses related to the development of EPO product for the European market.

For the nine-month ended September 30, 2004
-------------------------------------------
Revenues for the nine-month period in 2004 were $2.84 million,  slightly up from
$2.82 million from the same period in 2003. Sales in and outside of China were $
2.05 million and $0.79 million  respectively  during the period in 2004 compared
to $1.77 million in China and $1.05 million outside of China for the same period
in 2003.  The gross profit margin was 75% for the period of 2004,  improved from
69% for the same  period  in 2003.  Net loss for the  period  of 2004 was  $0.85
million  or $0.04 per share  compared  to a loss of $1.25  million  or $0.06 per
share for the same period in 2003,  reflecting  a higher  gross margin and lower
selling,  general and  administrative  expenses  the results of  effective  cost
control measures and a leaner corporate structure.

Status on the  Proposed  Acquisition  of  Oriental  Wave and the Annual  General
--------------------------------------------------------------------------------
Meeting
-------
Dragon has filed a revised  preliminary Proxy Statement with the U.S. Securities
and Exchange  Commission  (SEC) in  connection  to the proposed  acquisition  of
Oriental Wave. Once the regulatory  reviews are completed,  Dragon will announce
the date for the Annual General Meeting which is currently  anticipated to be in
the second half of December, 2004.
<PAGE>

New Markets for Dragon's EPO:  Dominican  Republic,  Trinidad-Tobago  and Kosovo
--------------------------------------------------------------------------------
Dragon is pleased to announce  that  Dragon's  EPO  products  have been  granted
market  approvals in the Dominican  Republic and  Trinidad-Tobago  as advised by
Dragon's licensees. In addition, the health authority of Kosovo has accepted our
licensee's  application  for the market  approval and under such a circumstance,
Dragon's licensee is allowed to bid for government tender and has since won such
a tender.  Initial shipment of our EPO products to all three additional  markets
has been started  during the fourth  quarter of 2004.  Together with the already
approved markets in China, Brazil, India, Egypt, Peru and Ecuador,  Dragon's EPO
products have been marketed in a total of 9 countries  across Asia,  Central and
South America, the Middle East and Eastern Europe. For details,  please refer to
the announcement of a separate press release  regarding the Dominican  Republic,
Trinidad-Tobago and Kosovo markets.

"During  the third  quarter,  we  managed to achieve  16%  sequential  growth in
revenues over the second quarter.  We are especially  encouraged to see stronger
international  sales  during the third  quarter.  On a  year-to-date  basis,  we
continued to lower our cost structure which led to a lower net loss. Compared to
last year, our net loss has already been  decreased by 33% at a similar  revenue
level.",  said Dr.  Alexander Wick,  President and CEO of Dragon  Pharmaceutical
Inc.  "Further,  while the  regulatory  review  process in  connection  with the
proposed  acquisition of Oriental Wave has taken longer time than  expected,  we
look forward to completing the process as soon as we can so that we can hold the
Annual General Meeting to vote on the transaction by the end of this year."

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 products are being marketed in 9 countries:  China,  India,
Egypt,  Brazil, Peru, Ecuador,  Trinidad-Tobago,  Dominican Republic 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
preparing to enter the European Union market.

Dragon  Pharmaceutical  Inc. announced  entering into a definitive  agreement to
acquire  Oriental Wave Holdings  Ltd. The proposed  acquisition  is subject to a
number of conditions  including  regulatory and shareholders'  approval.  If the
proposed acquisition is consummated,  the combined company will have diverse and
proven product lines under 3 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 drug  production,
and a Biotech division for EPO and in-licensed G-CSF. For details,  please refer
to the press  release on June 14, 2004 - "Dragon and Oriental  Wave Announce the
Signing of  Definitive  Agreement to Create a  Competitive  and Growth  Oriented
Pharmaceutical Company"

For further information, please contact Garry Wong (email: ir@dragonbiotech.com)
at (604) 669-8817 or North America toll free at  1-877-388-3784 or visit our web
site at www.dragonpharma.com or www.dragonbiotech.com.

<PAGE>
Forward  Looking  Statement:
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 forward looking  statements  include,  but are not limited to, that Dragon
and Oriental Wave will consummate the  acquisition.  Forward-looking  statements
are not guarantees of future performance.  They involve risk,  uncertainties and
assumptions  including  risks  discussed  under  "Risks  Associated  With Dragon
Pharmaceuticals" in the Company's annual report on Form 10-KSB, SEC File No.: 0-
27937 and other documents filed with the SEC. The Company does not undertake the
obligation  to  publicly  revise  these  forward-looking  statements  to reflect
subsequent events or circumstances.

The foregoing  may be deemed to be soliciting  materials of Dragon in connection
with its  definitive  agreement to acquire  Oriental Wave  announced on June 14,
2004.  This  disclosure is being made in connection with Regulation of Takeovers
and Security Holder  Communications  (Release Nos. 33-7760 and 34-42055) adopted
by the  Securities  and  Exchange  Commission  ("SEC") and Rule 14a-12 under the
Securities  Exchange  Act of 1934,  as amended.  Dragon  shareholders  and other
investors are urged to read the  definitive  proxy  statements  that Dragon that
will be filed  with  the SEC and sent to  shareholders  in  connection  with the
proposed  acquisition  because it contains  important  information about Dragon,
Oriental  Wave and  related  matters.  Dragon and its  directors  and  executive
officers may be deemed to be  participants  in Dragon's  solicitation of proxies
from  Dragon   shareholders  in  connection   with  the  proposed   acquisition.
Information  regarding the participants and their security holdings can be found
in each of Dragon's  most recent proxy  statement and Form 10-KSB filed with the
SEC, which are or will be available from the SEC and Dragon as described  below,
and the definitive proxy statement when it is filed with the SEC. The definitive
proxy  statement  will  be  available  for  free,  both  on  the  SEC  web  site
(http://www.sec.gov) and from Dragon as follows:

Garry Wong
Dragon Pharmaceutical, Inc
1900 - 1055 West Hastings Street, Vancouver, British Columbia, V6E 2E9
Telephone: (604) 669-8817 or North American Toll Free: 1-877-388-3784
Fax: (604) 669-4243
Email: ir@dragonbiotech.com
Website: www.dragonpharma.com or www.dragonbiotech.com

In addition to the preliminary proxy statement,  Dragon files annual,  quarterly
and special reports,  proxy  statements and other  information with the SEC. You
may read and copy any reports,  statements or other  information filed by Dragon
at the SEC's public reference room at 450 Fifth Street, N.W.,  Washington,  D.C.
20549.  Please call the SEC at  1-800-SEC-0330  for further  information  on the
public  reference  rooms.  Dragon filings with the SEC are also available to the
public from commercial  document-retrieval services and on the SEC's web site at
http://www.sec.gov.


<PAGE>
                 SELECTED CONSOLIDATED STATEMENT OF OPERATIONS*
                 ----------------------------------------------
<TABLE>
<CAPTION>
<S>     <C>                                             <C>               <C>                 <C>                <C>
                                                            For the Three-month                 For the Nine-month
                                                            Ended September 30                  Ended September 30
                                                       ----------------------------        ----------------------------
                                                       2004              2003                2004              2003
                                                       ----              ----                ----              ----

Sales                                                  $1,057,254        $1,151,646        $2,843,669         $2,823,654

Gross Profit                                             $775,718          $797,648        $2,120,636         $1,941,387

Gross Profit Margin                                         73.4%             69.3%             74.6%              68.8%


Net (loss) for the period                              ($212,148)        ($282,581)        ($849,576)       ($1,253,034)
                                                  ================ ================= ================= ==================
(Loss) per share - basic and diluted                      ($0.01)           ($0.01)           ($0.04)            ($0.06)
                                                  ================ ================= ================= ==================
Weighted average number of common shares
outstanding
Basic and diluted                                      20,582,000        20,334,000        20,534,847         20,337,590
</TABLE>


                    SELECTED CONSOLIDATED BALANCE SHEET DATA*
                    -----------------------------------------

                                   September 30, 2004         December 31, 2003
                                   ------------------         -----------------
Cash and Short-term Securities        $ 2,383,072                $ 3,126,667
Total Current Assets                  $ 5,689,283                $ 5,622,402
Total Current Liabilities             $ 1,341,471                $ 1,428,257
Working Capital                       $ 4,347,812                $ 4,194,145
Total Shareholders' Equity            $ 8,917,951                $ 9,707,795
Total Assets                         $ 10,259,422               $ 11,136,052


* For greater detail, please refer to the Company's 10-QSB, which has been filed
with  the  SEC  and  the  Ontario  Securities  Commission.  The  full  financial
statements will also be available on Dragon's website at www.dragonpharma.com or
www.dragonbiotech.com.  The Company's financial statements comply with U.S. GAAP
(Generally Accepted Accounting  Principles) and all dollar amounts are expressed
in U.S. currency.
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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): November 15, 2004

                           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))
Section 2 - Financial Information
---------------------------------

Item 2.02   Results of Operations and Financial Condition

          Dragon Pharmaceutical Inc. announced its results for the third quarter
ended September 30, 2004 on the attached press release.

Section 9 - Financial Statements and Exhibits
---------------------------------------------

Item 9.01   Financial Statements and Exhibits

            Exhibit No.         Exhibit Description
            -----------         -------------------

                99              Press release announcing third quarter results
SIGNATURE

     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.

                                    DRAGON PHARMACEUTICAL INC.,
                                    a Florida Corporation

Dated:  November 17, 2004           /s/ Matthew Kavanagh
        -------------------         --------------------------------------------
                                    Matthew Kavanagh
                                    Director of Finance and Compliance
                                    (Principal Financial and Accounting Officer)
EXHIBIT INDEX

        Exhibit No.             Description
        -----------             -----------

            99                  Press release dated November 15, 2004 titled
                                "Dragon  Reports Third Quarter Results of 2004"
EXHIBIT 99
                                                                ----------

                  Dragon Reports Third Quarter Results of 2004

Vancouver,  BC- November 15, 2004. - Dragon  Pharmaceutical  Inc. (TSX: DDD; OTC
BB: DRUG;  BBSE:  DRP) is pleased to announce the results for the third  quarter
ended September 30, 2004.

For the three-month ended September 30, 2004
--------------------------------------------
During the third quarter in 2004, the Company posted revenues of $1,057,254 from
the sales of rHu Erythropoietin (EPO) compared to $1,151,646 for the same period
of the prior year.  Revenues of $691,669  were  generated  in China and $365,585
from outside of China during the third  quarter of 2004  compared to $742,467 in
China and $409,179 from outside of China for the same period in 2003.  The gross
profit  margin was 73% for the  period in 2004,  which  improved  from the gross
margin of 69% for the same period in 2003.

Net loss for the third quarter in 2004 was $212,148 or $0.01 per share, compared
to a net loss of $282,581 or $0.01 per share,  for the same period in 2003.  The
decrease  in net loss for the  third  quarter  in 2004 was  mainly  due to lower
selling,  general and  administrative  expenses  and  research  and  development
expenses related to the development of EPO product for the European market.

For the nine-month ended September 30, 2004
-------------------------------------------
Revenues for the nine-month period in 2004 were $2.84 million,  slightly up from
$2.82 million from the same period in 2003. Sales in and outside of China were $
2.05 million and $0.79 million  respectively  during the period in 2004 compared
to $1.77 million in China and $1.05 million outside of China for the same period
in 2003.  The gross profit margin was 75% for the period of 2004,  improved from
69% for the same  period  in 2003.  Net loss for the  period  of 2004 was  $0.85
million  or $0.04 per share  compared  to a loss of $1.25  million  or $0.06 per
share for the same period in 2003,  reflecting  a higher  gross margin and lower
selling,  general and  administrative  expenses  the results of  effective  cost
control measures and a leaner corporate structure.

Status on the  Proposed  Acquisition  of  Oriental  Wave and the Annual  General
--------------------------------------------------------------------------------
Meeting
-------
Dragon has filed a revised  preliminary Proxy Statement with the U.S. Securities
and Exchange  Commission  (SEC) in  connection  to the proposed  acquisition  of
Oriental Wave. Once the regulatory  reviews are completed,  Dragon will announce
the date for the Annual General Meeting which is currently  anticipated to be in
the second half of December, 2004.
New Markets for Dragon's EPO:  Dominican  Republic,  Trinidad-Tobago  and Kosovo
--------------------------------------------------------------------------------
Dragon is pleased to announce  that  Dragon's  EPO  products  have been  granted
market  approvals in the Dominican  Republic and  Trinidad-Tobago  as advised by
Dragon's licensees. In addition, the health authority of Kosovo has accepted our
licensee's  application  for the market  approval and under such a circumstance,
Dragon's licensee is allowed to bid for government tender and has since won such
a tender.  Initial shipment of our EPO products to all three additional  markets
has been started  during the fourth  quarter of 2004.  Together with the already
approved markets in China, Brazil, India, Egypt, Peru and Ecuador,  Dragon's EPO
products have been marketed in a total of 9 countries  across Asia,  Central and
South America, the Middle East and Eastern Europe. For details,  please refer to
the announcement of a separate press release  regarding the Dominican  Republic,
Trinidad-Tobago and Kosovo markets.

"During  the third  quarter,  we  managed to achieve  16%  sequential  growth in
revenues over the second quarter.  We are especially  encouraged to see stronger
international  sales  during the third  quarter.  On a  year-to-date  basis,  we
continued to lower our cost structure which led to a lower net loss. Compared to
last year, our net loss has already been  decreased by 33% at a similar  revenue
level.",  said Dr.  Alexander Wick,  President and CEO of Dragon  Pharmaceutical
Inc.  "Further,  while the  regulatory  review  process in  connection  with the
proposed  acquisition of Oriental Wave has taken longer time than  expected,  we
look forward to completing the process as soon as we can so that we can hold the
Annual General Meeting to vote on the transaction by the end of this year."

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 products are being marketed in 9 countries:  China,  India,
Egypt,  Brazil, Peru, Ecuador,  Trinidad-Tobago,  Dominican Republic 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
preparing to enter the European Union market.

Dragon  Pharmaceutical  Inc. announced  entering into a definitive  agreement to
acquire  Oriental Wave Holdings  Ltd. The proposed  acquisition  is subject to a
number of conditions  including  regulatory and shareholders'  approval.  If the
proposed acquisition is consummated,  the combined company will have diverse and
proven product lines under 3 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 drug  production,
and a Biotech division for EPO and in-licensed G-CSF. For details,  please refer
to the press  release on June 14, 2004 - "Dragon and Oriental  Wave Announce the
Signing of  Definitive  Agreement to Create a  Competitive  and Growth  Oriented
Pharmaceutical Company"

For further information, please contact Garry Wong (email: ir@dragonbiotech.com)
at (604) 669-8817 or North America toll free at  1-877-388-3784 or visit our web
site at www.dragonpharma.com or www.dragonbiotech.com.
Forward  Looking  Statement:
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 forward looking  statements  include,  but are not limited to, that Dragon
and Oriental Wave will consummate the  acquisition.  Forward-looking  statements
are not guarantees of future performance.  They involve risk,  uncertainties and
assumptions  including  risks  discussed  under  "Risks  Associated  With Dragon
Pharmaceuticals" in the Company's annual report on Form 10-KSB, SEC File No.: 0-
27937 and other documents filed with the SEC. The Company does not undertake the
obligation  to  publicly  revise  these  forward-looking  statements  to reflect
subsequent events or circumstances.

The foregoing  may be deemed to be soliciting  materials of Dragon in connection
with its  definitive  agreement to acquire  Oriental Wave  announced on June 14,
2004.  This  disclosure is being made in connection with Regulation of Takeovers
and Security Holder  Communications  (Release Nos. 33-7760 and 34-42055) adopted
by the  Securities  and  Exchange  Commission  ("SEC") and Rule 14a-12 under the
Securities  Exchange  Act of 1934,  as amended.  Dragon  shareholders  and other
investors are urged to read the  definitive  proxy  statements  that Dragon that
will be filed  with  the SEC and sent to  shareholders  in  connection  with the
proposed  acquisition  because it contains  important  information about Dragon,
Oriental  Wave and  related  matters.  Dragon and its  directors  and  executive
officers may be deemed to be  participants  in Dragon's  solicitation of proxies
from  Dragon   shareholders  in  connection   with  the  proposed   acquisition.
Information  regarding the participants and their security holdings can be found
in each of Dragon's  most recent proxy  statement and Form 10-KSB filed with the
SEC, which are or will be available from the SEC and Dragon as described  below,
and the definitive proxy statement when it is filed with the SEC. The definitive
proxy  statement  will  be  available  for  free,  both  on  the  SEC  web  site
(http://www.sec.gov) and from Dragon as follows:

Garry Wong
Dragon Pharmaceutical, Inc
1900 - 1055 West Hastings Street, Vancouver, British Columbia, V6E 2E9
Telephone: (604) 669-8817 or North American Toll Free: 1-877-388-3784
Fax: (604) 669-4243
Email: ir@dragonbiotech.com
Website: www.dragonpharma.com or www.dragonbiotech.com

In addition to the preliminary proxy statement,  Dragon files annual,  quarterly
and special reports,  proxy  statements and other  information with the SEC. You
may read and copy any reports,  statements or other  information filed by Dragon
at the SEC's public reference room at 450 Fifth Street, N.W.,  Washington,  D.C.
20549.  Please call the SEC at  1-800-SEC-0330  for further  information  on the
public  reference  rooms.  Dragon filings with the SEC are also available to the
public from commercial  document-retrieval services and on the SEC's web site at
http://www.sec.gov.
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS*
                 ----------------------------------------------
For the Three-month                 For the Nine-month
                                                            Ended September 30                  Ended September 30
                                                       ----------------------------        ----------------------------
                                                       2004              2003                2004              2003
                                                       ----              ----                ----              ----

Sales                                                  $1,057,254        $1,151,646        $2,843,669         $2,823,654

Gross Profit                                             $775,718          $797,648        $2,120,636         $1,941,387

Gross Profit Margin                                         73.4%             69.3%             74.6%              68.8%

Net (loss) for the period                              ($212,148)        ($282,581)        ($849,576)       ($1,253,034)
                                                  ================ ================= ================= ==================
(Loss) per share - basic and diluted                      ($0.01)           ($0.01)           ($0.04)            ($0.06)
                                                  ================ ================= ================= ==================
Weighted average number of common shares
outstanding
Basic and diluted                                      20,582,000        20,334,000        20,534,847         20,337,590
SELECTED CONSOLIDATED BALANCE SHEET DATA*
                    -----------------------------------------

                                   September 30, 2004         December 31, 2003
                                   ------------------         -----------------
Cash and Short-term Securities        $ 2,383,072                $ 3,126,667
Total Current Assets                  $ 5,689,283                $ 5,622,402
Total Current Liabilities             $ 1,341,471                $ 1,428,257
Working Capital                       $ 4,347,812                $ 4,194,145
Total Shareholders' Equity            $ 8,917,951                $ 9,707,795
Total Assets                         $ 10,259,422               $ 11,136,052

* For greater detail, please refer to the Company's 10-QSB, which has been filed
with  the  SEC  and  the  Ontario  Securities  Commission.  The  full  financial
statements will also be available on Dragon's website at www.dragonpharma.com or
www.dragonbiotech.com.  The Company's financial statements comply with U.S. GAAP
(Generally Accepted Accounting  Principles) and all dollar amounts are expressed
in U.S. currency.