874443--3/22/2007--GENELABS_TECHNOLOGIES_INC_/CA

related topics
{product, candidate, development}
{stock, price, share}
{acquisition, growth, future}
{product, liability, claim}
{property, intellectual, protect}
{operation, natural, condition}
{cost, regulation, environmental}
{personnel, key, retain}
Our research programs are in an early stage and may not successfully produce commercial products. We face substantial competition which may result in others discovering, developing or commercializing drugs before or more successfully than us. If third parties on whom we rely do not perform as contractually required or expected, we may not be able to obtain regulatory approval for or commercialize our product candidates. The results of our clinical trial of Prestara tm , Genelabs drug candidate for systemic lupus erythematosus, were not positive, substantially decreasing the probability that Prestara will ever be approved for marketing and thus diminishing our business prospects. Our outside suppliers and manufacturers for Prestara tm are subject to regulation, including by the FDA, and if they do not meet their commitments, we would have to find substitute suppliers or manufacturers which could delay supply of product to the market. We may be unable to obtain patents or protect our intellectual property rights, or others could assert their patents against us. We may be unable to attract or retain key personnel. Although we currently meet the standards for continued listing on the Nasdaq Capital Market, there is no guarantee that we will continue to meet these standards in the future and if we are delisted the value of your investment in Genelabs may substantially decrease. Our facilities are located near an earthquake fault, and an earthquake could disrupt our operations and adversely effect results. Our activities involve hazardous materials and improper handling of these materials by our employees or agents could expose us to significant legal and financial penalties. We may not be able to obtain or maintain sufficient insurance on commercially reasonable terms or with adequate coverage against potential liabilities in order to protect ourselves against product liability claims. Risks Relating to Owning Our Stock Because our stock is volatile, the value of your investment in Genelabs may substantially decrease.

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