1023131--3/1/2007--COVANCE

related topics

{regulation, government, change}

{cost, contract, operation}

{competitive, industry, competition}

{product, liability, claim}

{product, market, service}

{personnel, key, retain}

{operation, international, foreign}

{operation, natural, condition}

{stock, price, operating}

{customer, product, revenue}

{system, service, information}

{acquisition, growth, future}

Changes in government regulation or in practices relating to the pharmaceutical industry could decrease the need for the services we provide. Failure to comply with existing regulations could result in a loss of revenue or earnings or in increased costs. We may bear financial losses because most of our contracts are of a fixed price nature and may be delayed or terminated or reduced in scope for reasons beyond our control. We may bear financial risk if we under price our contracts or overrun cost estimates. We may not be able to successfully develop and market or acquire new services. Our quarterly operating results may vary. We depend on the pharmaceutical and biotechnology industries. We operate in a highly competitive industry. We may expand our business through acquisitions. We may be affected by potential health care reform. We rely on third parties for important services. Our revenues and earnings are exposed to exchange rate fluctuations. The loss of our key personnel could adversely affect our business. Contract research services create a risk of liability. Certain service offerings and research products are dependent on limited sources of supply of services or products which if interrupted could affect our business. Actions of animal rights extremists may affect our business. Our animal populations may suffer diseases that can damage our inventory, harm our reputation, result in decreased sales of research products or result in other liability to us.

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1023131--3/1/2007--COVANCE_INC