874443--3/31/2006--GENELABS_TECHNOLOGIES_INC_/CA

related topics
{product, candidate, development}
{stock, price, share}
{acquisition, growth, future}
{product, liability, claim}
{property, intellectual, protect}
{cost, regulation, environmental}
{operation, natural, condition}
{personnel, key, retain}
{debt, indebtedness, cash}
Because we may not continue to qualify for listing on the Nasdaq quotation system, the value of your investment in Genelabs may substantially decrease. We may not be profitable in the near future or at all and in order to carry out our business plans we will require additional funds which may not be available. 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 diminishing our business prospects. Our research programs are in an early stage and may not successfully produce commercial products. We do not have the resources to conduct preclinical development. We may be unable to attract or retain key personnel. 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. If our Japanese marketing partner for Prestara tm does not obtain approval to market Prestara in Japan, our business prospects will suffer because we do not have capabilities to develop Prestara for Japan ourselves and we would lose a significant source of potential revenue. Our outside suppliers and manufacturers for Prestara tm and our hepatitis C compounds 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. The lease for our facilities expires in November and we may not have the facilities to continue our operations. Our facilities in California 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. Because our stock is volatile, the value of your investment in Genelabs may substantially decrease.

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