1036968--3/18/2009--VAXGEN_INC

related topics
{stock, price, share}
{acquisition, growth, future}
{product, liability, claim}
{property, intellectual, protect}
{personnel, key, retain}
{operation, natural, condition}
{control, financial, internal}
{cost, regulation, environmental}
{product, candidate, development}
We may use some or all of our remaining resources, including available cash, while we seek to identify a strategic transaction; we may fail to identify an appropriate transaction; our stockholders may vote against a proposed transaction; and even if a strategic transaction is completed, it may be unsuccessful in creating value for stockholders. If we fail to identify and manage successfully any company or product acquisitions, joint ventures or in-licensed product candidates, we will be unable to rebuild our product candidate pipeline. We may need to raise additional capital to support our operations and in order to continue as a going concern if we successfully complete a strategic transaction. As a result of the reductions in our workforce that we announced throughout 2007 and 2008, we may not be successful in retaining key employees and in attracting qualified new employees as required in the future. If we are unable to retain our management or to attract additional qualified personnel, our ability to rebuild our business will be seriously jeopardized. We have only a limited operating history and we expect to continue to generate operating losses. We may fail to protect any intellectual property that we acquire in the future and future activities of the company may infringe on the intellectual property rights of others, either of which could harm our business. Natural disasters, including earthquakes, may damage our facilities. We are defendants in a lawsuit which, if successful, could result in liability by us for significant damages and the loss of our biopharmaceutical manufacturing facility in South San Francisco. Our use of hazardous materials and chemicals require us to comply with regulatory requirements and exposes us to potential liabilities. We may become subject to product liability claims, which could result in damages that exceed our insurance coverage. We may be subject to claims that our employees or we have wrongfully used or disclosed alleged trade secrets of their former employers. We are not currently listed on a national exchange and there can be no assurance we will ever be listed. Our stockholders could experience substantial dilution as a result of the issuance of additional shares of common or preferred stock.

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