1054102--3/17/2006--PDI

related topics

{personnel, key, retain}

{customer, product, revenue}

{acquisition, growth, future}

{provision, law, control}

{product, market, service}

{regulation, government, change}

{financial, litigation, operation}

{stock, price, operating}

{stock, price, share}

{product, liability, claim}

{condition, economic, financial}

{cost, operation, labor}

Changes in outsourcing trends in the pharmaceutical and biotechnology industries could materially adversely affect our business, financial condition, results of operations and growth rate. Our service businesses depend on expenditures by companies in the life sciences industries. Most of our service revenue is derived from a limited number of clients, the loss of any one of which could materially adversely affect our business, financial condition or results of operations. Our service contracts are generally short-term agreements and are cancelable at any time, which may result in lost revenue and additional costs and expenses. Product liability claims could harm our business. If we do not meet performance goals set in our incentive-based and revenue sharing arrangements, our profits could suffer. If we pursue a strategy that includes copromotion and exclusive distribution arrangements, and/or licensing and brand ownership of products, we cannot assure you that we can successfully develop this business. We may make acquisitions in the future which may lead to disruptions to our ongoing business. We, a current officer, and a former officer are defendants in a class action shareholder lawsuit which could divert our time and attention from more productive activities. Our failure, or that of our clients, to comply with applicable healthcare regulations could limit, prohibit or otherwise adversely impact our business activities. Our industry is highly competitive and our failure to address competitive developments promptly will limit our ability to retain and increase our market share. Our stock price is volatile and could be further affected by events not within our control. In 2005, our stock traded at a low of $11.12 and a high of $22.26. In 2004, our stock traded at a low of $18.84 and a high of $33.23. Our quarterly revenues and operating results may vary, which may cause the price of our common stock to fluctuate. We may require additional funds in order to implement our evolving business model. If we are unable to attract key employees, we may be unable to support the growth of our business. Our business will suffer if we are unable to hire and retain key management personnel to fill critical vacancies. Our business may suffer if we fail to attract and retain qualified sales representatives. Our controlling stockholder continues to have effective control of us, which could delay or prevent a change in corporate control that may otherwise be beneficial to our stockholders. We have anti-takeover defenses that could delay or prevent an acquisition and could adversely affect the price of our common stock.

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1054102--3/17/2006--PDI_INC