1341843--3/23/2009--POLYMEDIX

related topics

{product, candidate, development}

{stock, price, share}

{property, intellectual, protect}

{acquisition, growth, future}

{product, liability, claim}

{capital, credit, financial}

{personnel, key, retain}

{cost, regulation, environmental}

{stock, price, operating}

{provision, law, control}

{regulation, government, change}

{cost, operation, labor}

{gas, price, oil}

Funding, especially on terms acceptable to us, may not be available to meet our future capital needs because of the deterioration of the credit and capital markets. Development of our proposed product candidates is a lengthy, expensive and uncertain process invest substantial amounts of time and money that may not yield viable products which may cause our business and results of operations to suffer. We are a development stage company, which makes it difficult to evaluate our existing business and business prospects and increases the risk that the value of any investment in our Company may decline. If our product candidates are not demonstrated to be sufficiently safe and effective in clinical trials, they will not receive regulatory approval and we will be unable to commercialize them and our business and results of operations will suffer. If we are not able to retain our current management and advisory team and attract and retain qualified scientific, technical and business personnel, our business will suffer. Our success is dependent on the continuation of certain licensing arrangements and other strategic relationships with third parties. These arrangements and relationships may not continue and we may not be successful in entering into other similar arrangements and relationships. Our i.v. antibiotic product candidate or any of our other eligible product candidates may not be granted any of the accelerated development or approval paths by the FDA and, even if any of our product candidates receive such status, development of the product candidate may not be accelerated. Even if regulatory authorities approve our product candidates, they may not be commercially successful. We do not currently have sales, marketing or distribution capabilities. If we fail to effectively sell, market and distribute any product candidate for which we receive regulatory approval, our business and results of operations will suffer. We may suffer losses from product liability claims. Due to our reliance on third-party manufacturers, suppliers and research organizations, we may be unable to implement our manufacturing, supply and clinical operations strategies, which would materially harm our business. If we make technology or product acquisitions, we may incur a number of costs, may have integration difficulties and may experience other risks that could harm our business and results of operations. Failure to effectively manage our growth may have a material adverse effect on our business, results of operations and financial condition. We rely on third parties to provide software necessary to the future success of our business. Our executive officers and directors have the ability to significantly influence matters submitted to our stockholders for approval. Risks Related to our Intellectual Property The obstacles to procurement and enforcement of our intellectual property and proprietary rights could harm our competitive position by allowing competitors access to our proprietary technology and to introduce competing products. We may have to engage in costly litigation to enforce or protect our proprietary technology, which may harm our business, results of operations, financial condition and cash flows. Our commercial success depends significantly on our ability to develop and commercialize our products without infringing the intellectual property rights of third parties. We may be unable to protect the intellectual property rights of the third parties from whom we license certain of our intellectual property or with whom we have entered into other strategic relationships, which may harm our business. International patent protection is particularly uncertain, and if we are involved in opposition proceedings in foreign countries, we may have to expend substantial sums and management resources. Risks Related to our Industry We may experience delays in obtaining required regulatory approvals in the U.S. to market our proposed product candidates. If competitors develop and market products that offer advantages as compared to our product candidates, our commercial opportunities will be limited. Healthcare reform measures could adversely affect our business. Because our activities may involve the use of hazardous materials, we may be subject to claims relating to improper handling, storage or disposal of these materials that could be time consuming and costly. Risks Related to our Capital Stock Our Common Stock is thinly traded and the price of our Common Stock may be negatively impacted by factors that are unrelated to our operations. A decline in the price of our Common Stock could affect our ability to raise further working capital and adversely impact our ability to continue operations. When we issue additional shares in the future, it will likely result in the dilution of our existing stockholders. Trading of our Common Stock may be restricted by the Securities Exchange Commission s penny stock regulations, which may limit a stockholder s ability to buy and sell our stock. Financial Industry Regulatory Authority (FINRA) sales practice requirements may also limit a stockholder s ability to buy and sell our Common Stock. We have never paid dividends on our Common Stock and do not anticipate paying any in the foreseeable future. Sales of a substantial number of shares of our Common Stock into the public market may result in significant downward pressure on the price of our Common Stock and could affect your ability to realize the current trading price of our Common Stock. Delaware law and our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that could delay and discourage takeover attempts that stockholders may consider favorable.

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1341843--3/23/2009--POLYMEDIX_INC