3116--3/30/2006--AKORN

related topics

{stock, price, share}

{product, liability, claim}

{product, candidate, development}

{customer, product, revenue}

{personnel, key, retain}

{stock, price, operating}

{acquisition, growth, future}

{product, market, service}

{financial, litigation, operation}

{property, intellectual, protect}

{cost, regulation, environmental}

{regulation, change, law}

{interest, director, officer}

We depend on a small number of distributors, the loss of any of which could have a material adverse effect. Certain of our directors are subject to conflicts of interest. We may require additional capital to grow our business and such funds may not be available to us. 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 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 meritless. Our revenues depend on sale of products manufactured by third parties, which we cannot control. Dependence on key executive officers. We must continue to attract and retain key personnel to be able to compete successfully. 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 the conversion of subordinated debt and preferred stock may have a substantial dilutive effect on our common stock. The terms of our preferred stock may reduce the value of our common stock. Our obligations to pay dividends on our preferred stock decrease the returns available to our common shareholders. 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. The requirements of being a public company may strain our resources and distract management.

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3116--3/30/2006--AKORN_INC