884629--3/1/2010--WATSON_PHARMACEUTICALS

related topics

{product, liability, claim}

{acquisition, growth, future}

{operation, international, foreign}

{property, intellectual, protect}

{competitive, industry, competition}

{tax, income, asset}

{customer, product, revenue}

{product, candidate, development}

{regulation, government, change}

{personnel, key, retain}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{gas, price, oil}

{condition, economic, financial}

If we are unable to successfully develop or commercialize new products, our operating results will suffer. Our brand pharmaceutical expenditures may not result in commercially successful products. If we do not successfully integrate Arrow Group into our business operations, our business will be adversely affected. Any acquisitions of technologies, products and businesses, may be difficult to integrate, could adversely affect our relationships with key customers, and/or could result in significant charges to earnings. If we are unsuccessful in our joint ventures and other collaborations, our operating results could suffer. If we are unable to adequately protect our technology or enforce our patents, our business could suffer. If pharmaceutical companies are successful in limiting the use of generics through their legislative, regulatory and other efforts, our sales of generic products may suffer. If competitors are successful in limiting competition for certain generic products through their legislative, regulatory and litigation efforts, our sales of certain generic products may suffer. From time to time we may need to rely on licenses to proprietary technologies, which may be difficult or expensive to obtain. Third parties may claim that we infringe their proprietary rights and may prevent us from manufacturing and selling some of our products. Our distribution operations are highly dependent upon a primary courier service. Our distribution operations concentrate on generic products and therefore are subject to the risks of the generic industry. If we are unable to obtain sufficient supplies from key manufacturing sites or suppliers that in some cases may be the only source of finished products or raw materials, our ability to deliver our products to the market may be impeded. Our policies regarding returns, allowances and chargebacks, and marketing programs adopted by wholesalers, may reduce our revenues in future fiscal periods. Investigations of the calculation of average wholesale prices may adversely affect our business. The design, development, manufacture and sale of our products involves the risk of product liability claims by consumers and other third parties, and insurance against such potential claims is expensive and may be difficult to obtain. The loss of our key personnel could cause our business to suffer. Significant balances of intangible assets, including product rights and goodwill acquired, are subject to impairment testing and may result in impairment charges, which will adversely affect our results of operations and financial condition. We may need to raise additional funds in the future which may not be available on acceptable terms or at all. Our business could suffer as a result of manufacturing difficulties or delays. Our substantial debt and other financial obligations could impair our financial condition and our ability to fulfill our debt obligations. Any refinancing of this substantial debt could be at significantly higher interest rates. Our business will continue to expose us to risks of environmental liabilities. Global economic conditions could harm us. Our foreign operations may become less attractive if political and diplomatic relations between the United States and any country where we conduct business operations deteriorates. Our global operations expose us to risks and challenges associated with conducting business internationally. We have exposure to foreign tax liabilities. Foreign currency fluctuations could adversely affect our business and financial results. Risks Relating To Investing In the Pharmaceutical Industry Extensive industry regulation has had, and will continue to have, a significant impact on our business, especially our product development, manufacturing and distribution capabilities. Federal regulation of arrangements between manufacturers of brand and generic products could adversely affect our business. We are subject to federal and state healthcare fraud and abuse laws which may adversely affect our business. Healthcare reform and a reduction in the coverage and reimbursement levels by governmental authorities, HMOs, MCOs or other third-party payers may adversely affect our business. The pharmaceutical industry is highly competitive. Sales of our products may continue to be adversely affected by the continuing consolidation of our distribution network and the concentration of our customer base.

Full 10-K form ▸

884629--3/1/2010--WATSON_PHARMACEUTICALS_INC