3116--3/16/2010--AKORN

related topics

{stock, price, share}

{product, liability, claim}

{product, candidate, development}

{stock, price, operating}

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{personnel, key, retain}

{condition, economic, financial}

{cost, regulation, environmental}

{financial, litigation, operation}

Unstable market and economic conditions may have serious adverse consequences on our business. We depend on a small number of distributors, the loss of any of which could have a material adverse effect. Our growth depends on our ability to timely develop additional pharmaceutical products and manufacturing capabilities. We have entered into several strategic business alliances which may not result in marketable products. Our growth and profitability is dependent on our ability to successfully market and distribute new products through various distribution channels. Our success depends on the development of generic and off-patent pharmaceutical products, which are particularly susceptible to competition, substitution policies and reimbursement policies. We can be subject to legal proceedings against us, which may prove costly and time-consuming even if without merit. Our revenues depend on sale of products manufactured by third parties, which we cannot control. Certain of our directors are subject to conflicts of interest. We depend on key executive officers and must continue to attract and retain key personnel in order to compete successfully. Through stock ownership, his position on our board of directors, and his loans to us, Dr. John Kapoor has substantial influence over our business strategies and policies. We are subject to extensive government regulations that increase our costs and could subject us to fines, prevent us from selling our products or prevent us from operating our facilities. We may implement product recalls and could be exposed to significant product liability claims; we may have to pay significant amounts to those harmed and may suffer from adverse publicity as a result. The FDA may authorize sales of some prescription pharmaceuticals on a non-prescription basis, which would reduce the profitability of our prescription products. Our industry is very competitive. Additionally, changes in technology could render our products obsolete. Many of the raw materials and components used in our products come from a single source. Our patents and proprietary rights may not adequately protect our products and processes. Concentrated ownership of our common stock and our registration of shares for public sale creates a risk of sudden changes in our share price. Exercise of warrants and options may have a substantial dilutive effect on our common stock. Changes to the market value of our outstanding warrants may negatively impact or create volatility in our reported net income. We may issue preferred stock and the terms of such preferred stock may reduce the value of our common stock. We experience significant quarterly fluctuation of our results of operations, which may increase the volatility of our stock price. Penny Stock rules may make buying or selling our common stock difficult.

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3116--3/16/2010--AKORN_INC