850693--2/28/2008--ALLERGAN

related topics

{product, liability, claim}

{operation, international, foreign}

{product, candidate, development}

{property, intellectual, protect}

{regulation, government, change}

{regulation, change, law}

{cost, operation, labor}

{customer, product, revenue}

{personnel, key, retain}

{debt, indebtedness, cash}

{loan, real, estate}

{tax, income, asset}

{acquisition, growth, future}

{condition, economic, financial}

Changes in the consumer marketplace and economic conditions may adversely affect sales or the profitability of our products. We could experience difficulties obtaining or creating the raw materials needed to produce our products and interruptions in the supply of raw materials could disrupt our manufacturing and cause our sales and profitability to decline. Our future success depends upon our ability to develop new products, and new indications for existing products, that achieve regulatory approval for commercialization. Our product development efforts may not result in commercial products. If we are unable to obtain and maintain adequate protection for our intellectual property rights associated with the technologies incorporated into our products, our business and results of operations could suffer. We may be subject to intellectual property litigation and infringement claims, which could cause us to incur significant expenses and losses or prevent us from selling our products. Importation of products from Canada and other countries into the United States and intra-European Union trade may lower the prices we receive for our products. Our ownership of real property and the operation of our business will continue to expose us to risks of environmental liabilities. We may experience losses due to product liability claims, product recalls or corrections. Negative publicity concerning the safety of our products may harm our sales, force us to withdraw products and cause a decline in our stock price. Health care initiatives and other third-party payor cost-containment pressures could cause us to sell our products at lower prices, resulting in decreased revenues. We are subject to risks arising from currency exchange rates, which could increase our costs and may cause our profitability to decline. We are subject to risks associated with doing business internationally. The consolidation of drug wholesalers and other wholesaler actions could increase competitive and pricing pressures on pharmaceutical manufacturers, including us. Our failure to attract and retain key managerial, technical, selling and marketing personnel could adversely affect our business. We may acquire companies in the future and these acquisitions could disrupt our business. Uncertainties exist in integrating the business and operations of Inamed, Corn al and Esprit into our own. Compliance with the extensive government regulations to which we are subject is expensive and time consuming, and may result in the delay or cancellation of product sales, introductions or modifications. If we market products in a manner that violates health care fraud and abuse laws, we may be subject to civil or criminal penalties. We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws. If our collaborative partners do not perform, we will be unable to develop and market products as anticipated. Unanticipated changes in our tax rates or exposure to additional income tax liabilities could affect our profitability. The terms of our debt agreements impose many restrictions on us. Failure to comply with these restrictions could result in acceleration of our substantial debt. Were this to occur, we might not have, or be able to obtain, sufficient cash to pay our accelerated indebtedness. Litigation may harm our business or otherwise distract our management.

Full 10-K form ▸

850693--2/28/2008--ALLERGAN_INC