1017491--3/26/2007--NEXMED

related topics

{product, candidate, development}

{stock, price, share}

{control, financial, internal}

{interest, director, officer}

{personnel, key, retain}

{cost, regulation, environmental}

{product, liability, claim}

{property, intellectual, protect}

{condition, economic, financial}

FACTORS THAT COULD AFFECT OUR FUTURE RESULTS RISKS RELATED TO THE COMPANY We continue to incur operating losses. Our independent registered public accounting firm has doubt as to our ability to continue as a going concern. We will need partnering agreements and significant funding to continue with our research and development efforts, and they may not be available. We currently have no sales force or marketing organization and will need, but may not be able, to attract marketing partners or afford qualified or experienced marketing and sales personnel. Pre-clinical and clinical trials are inherently unpredictable. If we or our partners do not successfully conduct these trials, we or our partners may be unable to market our products. We depend on Novartis to realize the potential of NM100060, and, if we successfully enter into similar licensing agreements for other products, we will similarly be dependent upon our other partners. Patents and intellectual property rights are important to us but could be challenged. We and our licensees depend upon third party manufacturers for chemical manufacturing supplies. We may be subject to potential product liability and other claims, creating risks and expense. We are vulnerable to volatile market conditions. We and our licensees are subject to numerous and complex government regulations which could result in delay and expense. RISKS RELATED TO OWNING OUR COMMON STOCK We do not expect to pay dividends on our common stock in the foreseeable future. We may issue additional shares of our capital stock that could dilute the value of your shares of common stock.

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1017491--3/26/2007--NEXMED_INC