875045--2/6/2009--BIOGEN_IDEC

related topics

{product, candidate, development}

{property, intellectual, protect}

{regulation, government, change}

{cost, regulation, environmental}

{product, liability, claim}

{stock, price, operating}

{condition, economic, financial}

{operation, international, foreign}

{customer, product, revenue}

{tax, income, asset}

{loan, real, estate}

{personnel, key, retain}

{acquisition, growth, future}

{debt, indebtedness, cash}

{provision, law, control}

{competitive, industry, competition}

{financial, litigation, operation}

Adverse safety events can negatively affect our assets, product sales, operations, products in development and stock price. If we fail to compete effectively, our business and market position would suffer. We depend, to a significant extent, on reimbursement from third party payors and a reduction in the extent of reimbursement could negatively affect our product sales and revenue. We depend on collaborators for both product and royalty revenue and the clinical development of future collaboration products, which are outside of our full control. If we do not successfully execute our growth initiatives through the acquisition, partnering and in-licensing of products, technologies or companies, our future performance could be adversely affected. If we fail to comply with the extensive legal and regulatory requirements affecting the healthcare industry, we could face increased costs, penalties and a loss of business. If we fail to meet the stringent requirements of governmental regulation in the manufacture of our products, we could incur substantial remedial costs and a reduction in sales. Changes in laws affecting the healthcare industry could adversely affect our revenues and profitability. Problems with manufacturing or with inventory planning could result in our inability to deliver products, inventory shortages or surpluses, product recalls and increased costs. We rely on third parties to provide services in connection with the manufacture of our products and, in some instances, the manufacture of the product itself. The current credit and financial market conditions may exacerbate certain risks affecting our business. Our portfolio of marketable securities is significant and is subject to market, interest and credit risk that may reduce the value of our investments. We have made a significant investment in constructing a manufacturing facility the success of which depends upon the completion and licensing of the facility and continued demand for our products. If we are unable to attract and retain qualified personnel and key relationships, the growth of our business could be harmed. Our sales and operations are subject to the risks of doing business internationally. Our business could be negatively affected as a result of the actions of activist shareholders. Our operating results are subject to significant fluctuations. If we are unable to adequately protect and enforce our intellectual property rights, our competitors may take advantage of our development efforts or our acquired technology. If our products infringe the intellectual property rights of others, we may incur damages and be required to incur the expense of obtaining a license. Uncertainty over intellectual property in the biotechnology industry has been the source of litigation, which is inherently costly and unpredictable. Pending and future product liability claims may adversely affect our business and our reputation. Our effective tax rate may fluctuate and we may incur obligations in tax jurisdictions in excess of amounts that have been accrued. Our level of indebtedness could adversely affect our business and limit our ability to plan for or respond to changes in our business. Our business involves environmental risks, which include the cost of compliance and the risk of contamination or injury. Several aspects of our corporate governance and our collaboration agreements may discourage a third party from attempting to acquire us.

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875045--2/6/2009--BIOGEN_IDEC_INC.