1274057--2/18/2010--HOSPIRA

related topics

{regulation, government, change}

{product, candidate, development}

{property, intellectual, protect}

{tax, income, asset}

{cost, operation, labor}

{system, service, information}

{product, market, service}

{operation, international, foreign}

{competitive, industry, competition}

{gas, price, oil}

{loss, insurance, financial}

{stock, price, operating}

{financial, litigation, operation}

{condition, economic, financial}

{capital, credit, financial}

Hospira faces significant competition and may not be able to compete effectively. If Hospira does not successfully introduce new products in a timely manner, its sales and operating results may decline. Failure to effectively manage efforts under product collaboration agreements may harm Hospira's business and profitability. The Company is increasingly dependent on its outsourcing and third-party provider arrangements. Hospira is subject to the cost-containment efforts of wholesalers, distributors, third-party payors and government organizations. If Hospira is unable to obtain or maintain its GPO and IDN pricing agreements, sales of its products could decline. Changes in the buying patterns of Hospira's customers could adversely affect Hospira's operating results. Hospira and its suppliers and customers are subject to various governmental regulations, and it could be costly to comply with these regulations and to develop compliant products and processes. In addition, failure to comply with these regulations could subject us to sanctions which could adversely affect our business, results of operations and financial condition. Hospira may continue to acquire other businesses and assets, license rights to technologies or products from third parties, form alliances, or dispose of businesses and assets, and any of these actions may not be completed in a timely or cost-effective manner, or at all. Current economic conditions could adversely affect our operations. Acquisitions have increased Hospira's investment balances, intangible assets and goodwill balances, and a decline in the value of assets may adversely affect Hospira's financial position or results of operation. The manufacture of Hospira's products is highly exacting and complex, and if Hospira or its suppliers encounter problems manufacturing, storing or distributing products, Hospira's business could suffer. Hospira can experience higher costs to produce its products as a result of rising oil and gas prices. Hospira depends on third parties to supply raw materials, electromechanical and other components, and third party finished goods. Hospira may not be able to obtain sufficient quantities of these materials, which could limit Hospira's ability to manufacture or sell products on a timely basis and could harm its profitability. Hospira's cost-reduction and optimization activities have resulted, and may continue to result, in significant charges and cash expenditures. These activities may disrupt Hospira's business and may not result in the intended cost savings. Hospira's manufacturing capacity could limit its ability to expand its business without significant capital investment. Hospira relies on the performance of its information technology systems, the failure of which could have an adverse effect on Hospira's business and performance. Hospira conducts sales activity outside of the U.S. and is subject to additional business risks, including fluctuations in foreign currency exchange rates, that may cause its sales and profitability to decline. Hospira is involved in various lawsuits and proceedings that could negatively affect its business. Income taxes can have an unpredictable effect on Hospira's results of operations and result in greater-than-anticipated liabilities. Hospira may incur product liability losses and insurance coverage could be inadequate or unavailable to cover these losses. If Hospira is unable to protect its intellectual property rights, its business and prospects could be harmed. If Hospira infringes the intellectual property rights of third parties, Hospira may face legal action, increased costs and delays in marketing new products. Changes in the funded status or costs of Hospira's pension or post-retirement benefit plans could adversely affect Hospira's financial position and results of operations. The stock market can be volatile and fluctuations in Hospira's operating results, as well as other factors, could cause its stock price to decline.

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1274057--2/18/2010--HOSPIRA_INC