1003124--3/2/2006--PHARMACEUTICAL_PRODUCT_DEVELOPMENT

related topics

{product, candidate, development}

{regulation, government, change}

{product, market, service}

{property, intellectual, protect}

{operation, natural, condition}

{acquisition, growth, future}

{cost, regulation, environmental}

{regulation, change, law}

{stock, price, share}

{customer, product, revenue}

{system, service, information}

{personnel, key, retain}

{operation, international, foreign}

{debt, indebtedness, cash}

{stock, price, operating}

{financial, litigation, operation}

{cost, contract, operation}

{gas, price, oil}

{product, liability, claim}

Changes in trends in the pharmaceutical and biotechnology industries could adversely affect our operating results. Our revenue depends on a small number of industries and clients. The majority of our customers contracts can be terminated upon short notice. We might not be able to recruit and retain the experienced personnel we need to compete in the drug discovery and development industry. Our future success depends on our ability to keep pace with rapid technological changes that could make our services and products less competitive or obsolete. Any failure by us to comply with existing regulations could harm our reputation and operating results. Proposed and future legislation or regulations might increase the cost of our business or limit our service or product offerings. We might lose business opportunities as a result of healthcare reform. The drug discovery and development services industry is highly competitive. Our business has experienced substantial expansion in the past and we might not properly manage that expansion in the future. Future acquisitions or investments could disrupt our ongoing business, distract our management and employees, increase our expenses and adversely affect our business. The fixed price nature of our development contracts could hurt our operating results. Our business exposes us to potential liability for personal injury claims that could affect our financial condition. Our business uses biological and hazardous materials, which could injure people or violate laws, resulting in liability that could hurt our financial condition and business. If we are unable to attract suitable willing investigators and volunteers for our clinical trials, our development business might suffer. Our business is subject to international economic, currency, political and other risks that could negatively affect our revenue and results of operations. Our inability to adequately protect our intellectual property rights could hurt our business. The drug discovery and development industry has a history of patent and other intellectual property litigation, and we might be involved in costly intellectual property lawsuits. We have only limited experience in the drug discovery business, and our prospects for success in this business remain uncertain and are dependent on third parties with whom we collaborate. We are dependent on third parties for certain essential business functions for our risk-sharing arrangements, and failures of these third party providers could materially adversely affect our business, financial condition and results of operations. We might not be able to obtain government approval for our product candidates. We might incur substantial expense to develop products that are never successfully developed and commercialized. Our operations might be affected by the occurrence of a natural disaster or other catastrophic event. Our development operations might be affected if there was a disruption to the air travel system. You might not receive any dividends, and the reduction or elimination of dividends might negatively affect the market price of our common stock. Our dividend policy might limit our ability to pursue other growth opportunities. Recent changes to accounting standards could cause us to record significant compensation expense and could significantly reduce our GAAP earnings in future periods. Because our stock price is volatile, our stock price could experience substantial declines.

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1003124--3/2/2006--PHARMACEUTICAL_PRODUCT_DEVELOPMENT_INC