1066833--3/31/2008--DOV_PHARMACEUTICAL

related topics

{product, candidate, development}

{property, intellectual, protect}

{stock, price, share}

{personnel, key, retain}

{competitive, industry, competition}

{interest, director, officer}

{customer, product, revenue}

{provision, law, control}

{cost, operation, labor}

Risks Related to our Business We have incurred significant operating loses for the past twelve years, and our cash and cash equivalents are only adequate to fund our operations for the next eight to twelve months. Based upon the recent price of our common stock on the OTC Bulletin Board, even if we are able to raise additional capital it is likely that our existing stockholders will experience substantial and permanent dilution. Our common stock is currently only quoted on the OTC Bulletin Board and the Pink Sheets and we have no research coverage by security or industry analysts. Our inability to trade on the Nasdaq or some other national securities exchange, and the lack of research coverage, has resulted in fewer shares being traded and even greater volatility in our share price, while also causing additional difficulty in raising capital. Our stock price, which is trading near its all-time low, remains highly volatile and could decline even further. Our future success is now almost entirely dependent upon the successful outcome of pending clinical trials for our lead product candidates. By conducting a clinical trial in Eastern Europe for DOV 21,947, we are exposed to a number of risks in addition to those we face conducting trials in more developed countries. At present we rely almost entirely upon our collaborative partners, XTL, Blue Note and Neurocrine to develop and commercialize three of our four most advanced product candidates, as well as protect certain of our most valuable intellectual property rights. In less than two years our staffing has been reduced from a high of 111 in 2006 to 13 as of March 11, 2008. There are a number of risks associated with our use of independent clinical investigators, contract research organizations and vendors, many of which could seriously impair our business. The success of our business depends upon the members of our senior management team, our scientific staff and our ability to continue to attract and retain qualified scientific, technical and business personnel. We are obligated to indemnify our officers and directors to the fullest extent permitted by law, which may obligate us to make substantial payments in advance of judicial resolution of entitlement. Given our limited financial resources, these payments could be material and adversely affect our liquidity. We may never receive regulatory approvals for our product candidates, and even if we can any extended delay during the approval process could materially and adversely affect our ability to commercialize the product. If we are unable to protect our intellectual property, our competitors could develop and market products based on our discoveries, which may reduce demand for our product candidates. The intellectual property of our competitors or other third parties may prevent us from developing or commercializing our product candidates. If we fail to compete effectively in many areas, our business and prospect for future success will suffer. Provisions of Delaware law, our charter and by-laws and our stockholders rights plan may make a takeover more difficult.

Full 10-K form ▸

1066833--3/31/2008--DOV_PHARMACEUTICAL_INC