90185--2/10/2010--SIGMA_ALDRICH

related topics

{customer, product, revenue}

{product, market, service}

{operation, international, foreign}

{property, intellectual, protect}

{cost, operation, labor}

{cost, regulation, environmental}

{product, candidate, development}

{tax, income, asset}

{regulation, government, change}

{acquisition, growth, future}

{system, service, information}

{financial, litigation, operation}

{personnel, key, retain}

{stock, price, operating}

{condition, economic, financial}

{product, liability, claim}

Risks Related to Our Sales and Operations Our performance may be affected by the economic conditions in the U.S. and in other nations where we do business. We face significant competition, including changes in pricing. Our sales and results of operations are dependent on the research and development spending patterns at pharmaceutical, biotechnology and diagnostic companies. Our sales and results of operations depend on our customers research and development efforts and their ability to obtain funding for these efforts. Due to heavy reliance on manufacturing and related operations to produce, package and distribute the products we sell, our business could be adversely affected by disruptions of these operations. If we experience a significant disruption in our information technology systems or if we fail to implement new systems and software successfully, our business could be adversely affected. We are subject to regulation by various federal, state and foreign agencies that require us to comply with a wide variety of regulations, including those regarding the manufacture of products, the distribution of our products and environmental matters. We are subject to regulations that govern the handling of hazardous substances. Changes in worldwide tax rates or tax benefits will impact our tax expense and our profits. Litigation may harm our business. Potential product liability claims could affect our earnings and financial condition and harm our reputation. If we fail to maintain adequate quality standards for our products and services, our business may be adversely affected and our reputation harmed. We heavily rely on third party air cargo carriers and other package delivery services, and a significant disruption in these services or significant increases in prices may disrupt our ability to ship products or import materials, increase our costs and lower our profitability and harm our reputation. If we fail to attract and retain key personnel, our business could be adversely affected. If the expected benefit of our supply chain initiative is not realized, our future profitability may be adversely affected. Our business may be adversely affected by a decrease in the availability of commercial paper. Our sales and operating results may vary from period to period. Technology innovations in the markets that we serve may create alternatives to our products and result in reduced sales. Demand for our products and services is subject to the commercial success of our customers products, which may vary for reasons outside our control. Rapid changes in the healthcare industry could directly or indirectly adversely affect our business. We may be unable to establish and to maintain collaborative development and marketing relationships with business partners, which could result in a decline in sales or slower than anticipated growth rates. Lack of early success with our pharmaceutical and biotechnology customers can shut us out of future business with those customers. We have significant inventories on hand. Fluctuation in the price and supply of raw fetal bovine serum could affect our business. We expect to continue to implement various process improvement initiatives that may not achieve the desired results. We may not realize the expected benefits from our restructuring activities, and our efforts may lead to additional unintended consequences. Risks Related to Growth of Our Business Acquisitions are an important part of our growth strategy. We must continually offer new products and technologies. Risks Related to International Operations Foreign currency exchange rate fluctuations may adversely affect our business. We are subject to economic, political and other risks associated with our significant international business, which could adversely affect our financial results. Risks Related to Intellectual Property We may become involved in disputes regarding our intellectual property rights, which could result in prohibition of the use of certain technology in current or planned products, exposure of the business to significant liability and diversion of management s focus. Our failure to protect our intellectual property may significantly harm our results of operations. We may incur impairment charges on our goodwill and other intangible assets with indefinite lives that would reduce our earnings.

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90185--2/10/2010--SIGMA_ALDRICH_CORP