1089542--3/22/2007--PharmaNet_Development_Group

related topics

{operation, international, foreign}

{stock, price, share}

{customer, product, revenue}

{regulation, government, change}

{regulation, change, law}

{product, liability, claim}

{cost, contract, operation}

{stock, price, operating}

{debt, indebtedness, cash}

{tax, income, asset}

{acquisition, growth, future}

{cost, regulation, environmental}

{product, market, service}

{control, financial, internal}

{system, service, information}

{personnel, key, retain}

{competitive, industry, competition}

{financial, litigation, operation}

{interest, director, officer}

The risks and uncertainties associated with discontinued operations could adversely impact our company. If we are unable to convince our clients that the problems principally related to our Miami facility were either not accurately reported or have been rectified, we may lose future revenue and our future results of operations may be materially and adversely affected. FDA actions or inspections may cause clients not to award future contracts to us or cancel existing contracts, which may have a material and adverse affect on our future results of operations. The risks set forth immediately above as well as those in the balance of these risk factors may cause us not to meet our future earnings guidance, which could cause our stock price to fall substantially. Risks Related to Our Business If we do not continue to generate a large number of new client contracts, or if our clients cancel or defer contracts, our future profitability may be adversely affected. Our backlog may not be indicative of future results. We may bear financial risk if we under-price our contracts or overrun cost estimates. Our indebtedness may impact our financial condition and results of operations and the terms of our outstanding indebtedness may limit our activities. We may not have sufficient funds to pay the principal return upon conversion or to repurchase our outstanding convertible senior notes under circumstances when we are required to do so or fund ongoing operations without having to repatriate funds from foreign operations. We experience seasonality of our revenues. We have grown rapidly over the last few years, and our growth has placed, and is expected to continue to place, significant demands on us. A significant portion of our growth has come from acquisitions, and we may make more acquisitions in the future as part of our continuing growth strategy. This growth strategy subjects us to numerous risks. We are subject to changes in outsourcing trends and regulatory requirements affecting the branded pharmaceutical, biotechnology, generic drug and medical device industries which could adversely affect our operating results. If branded pharmaceutical, biotechnology, generic drug or medical device companies reduce their expenditures, our future revenue and profitability may be reduced. We might lose business opportunities as a result of healthcare reform. At any given time, one or a limited number of clients may account for a large percentage of our revenue, which means that we could face a greater risk of loss of revenue if we lose a major client. We may incur significant taxes to repatriate funds. Our operating results can be expected to fluctuate from period to period. If we are required to write off goodwill or other intangible assets, our financial position and results of operations would be adversely affected. Our business is subject to international economic, political and other risks that could negatively affect our results of operations or financial position. Our substantial non-United States operations expose us to currency risks. We could be adversely affected by tax law changes in Canada or in other jurisdictions. Governmental authorities may question our inter-company transfer pricing policies or change their laws in a manner that could increase our effective tax or otherwise harm our business. Because we are smaller than our largest competitors, we may lack the resources needed to compete effectively. If we do not continue to develop new assay methods for our analytical applications, or if our current assay methods are incorrect, we may be unable to compete with other entities offering bioanalytical laboratory services. We risk potential liability when conducting clinical trials, which could cost us large amounts of money. We face a risk of liability from our handling and disposal of medical wastes, which could cause us to incur significant costs or otherwise adversely affect us. Failure to comply with applicable governmental regulations could harm our operating results and reputation. If we lose the services of our key personnel or are unable to attract qualified staff, our business could be adversely affected. Our business depends on the continued effectiveness and availability of our information technology infrastructure, and failures of this infrastructure could harm our operations. We are self-insured in the United States related to medical insurance which exposes us to losses. Risks Related to Our Common Stock We may issue a substantial amount of our common stock in the future which could cause dilution to new investors and otherwise adversely affect our stock price.

Full 10-K form ▸

1089542--3/22/2007--PharmaNet_Development_Group_Inc