105770--3/6/2006--WEST_PHARMACEUTICAL_SERVICES_INC

related topics
{cost, regulation, environmental}
{product, market, service}
{customer, product, revenue}
{operation, international, foreign}
{cost, operation, labor}
{personnel, key, retain}
{debt, indebtedness, cash}
{product, liability, claim}
{regulation, government, change}
Our sales and profitability depend to a large extent on the sale of drug products delivered by injection. If the products developed by our customers in the future use another delivery system, our sales and profitability could suffer. If we are unable to provide comparative value advantages, timely fulfillment of customer orders, or resist pricing pressure, we will have to reduce our prices, which may negatively impact our profit margins. We have significant indebtedness and debt service payments which could negatively impact our liquidity. We may experience difficulties integrating the recently acquired operations of TGI and Medimop and we may incur costs relating to acquisitions that are not anticipated. We are subject to regulation by governments around the world, and if these regulations are not complied with, existing and future operations may be curtailed, and could be subject to liability. Our business may be adversely affected by changes in the regulation of drug products and devices. Our business may be adversely affected by risks typically encountered in international operations and fluctuations in currency exchange rates. Raw material prices have a significant impact on our profitability. If raw material prices increase, and we cannot pass those price increases on to our customers, our profitability and financial condition may suffer. Disruptions in the supply of key raw materials and difficulties in the supplier qualification process, could adversely impact our operations. A loss of key personnel or highly skilled employees could disrupt our operations.

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