891288--3/30/2006--QUESTCOR_PHARMACEUTICALS

related topics

{product, candidate, development}

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{personnel, key, retain}

{product, liability, claim}

{regulation, change, law}

{stock, price, operating}

{property, intellectual, protect}

{capital, credit, financial}

Our business will be harmed if we are unable to implement our growth strategy successfully. We have little or no control over our wholesalers buying patterns, which may impact future revenues, returns and excess inventory. Our inability to secure additional funding could lead to a loss of your investment. If we are unable to contract with third party contract manufacturers, we may be unable to meet the demand for our products and lose potential revenues. If our third party distributors are unable to distribute our product or the costs to distribute our product increases substantially, we will lose potential revenues and profits. We have experienced changes in key personnel which will have an uncertain impact on future operations. Our products may not be accepted by the market, which may result in lower future revenues as well as a decline in our competitive positioning. A large percentage of our voting stock is beneficially owned by a small number of stockholders, who in the future could attempt to take control of our management and operations or exercise voting power to advance their own best interests and not necessarily those of other stockholders. If competitors develop and market products that are more effective than ours, our commercial opportunity will be reduced or eliminated. If we fail to maintain or enter into new contracts related to collaborations and in-licensed or acquired technology and products, our product development and commercialization could be delayed. If we are unable to protect our proprietary rights, we may lose our competitive position and future revenues. Since we must obtain regulatory approval to market our products in the United States and in foreign jurisdictions, we cannot predict whether or when we will be permitted to commercialize our products. Our ability to generate revenues is affected by the availability of reimbursement on our product, and our ability to generate revenues will be diminished if we fail to obtain an adequate level of reimbursement for our product from third party payors. Our business is subject to changing regulation of corporate governance and public disclosure that has increased both our costs and the risk of noncompliance.

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891288--3/30/2006--QUESTCOR_PHARMACEUTICALS_INC