906709--2/29/2008--NEKTAR

related topics

{product, candidate, development}

{acquisition, growth, future}

{property, intellectual, protect}

{stock, price, share}

{product, liability, claim}

{personnel, key, retain}

{control, financial, internal}

{financial, litigation, operation}

{stock, price, operating}

{debt, indebtedness, cash}

{operation, natural, condition}

{provision, law, control}

{cost, operation, labor}

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Risks Related to Our Business The termination of our partnership with Pfizer is likely to reduce our revenue significantly in 2008. We are unlikely to derive revenue from Exubera if we do not secure a new marketing and development partner for this product. Any future value from our NGI development program depends on successfully securing a new collaboration partnership. The termination of our contract manufacturing agreement for Exubera has resulted in significant expenses and charges and could result in future expenses and charges. We expect to continue to incur substantial losses and negative cash flow from operations and may not achieve or sustain profitability in the future. If we do not generate sufficient cash flow through increased revenue or raising additional capital, we may not be able to meet our substantial debt obligations. If we cannot raise additional capital, our financial condition will suffer. Our revenue has historically depended on revenue from collaboration agreements, causing significant fluctuation in our revenue from period to period. If we are unable to establish and maintain partnerships on commercially attractive terms, our business, results of operations and financial condition could suffer. If our partners, on which we depend to obtain regulatory approvals for and to commercialize our partnered products, are not successful, or if such collaborations fail, the development or commercialization of our partnered products may be delayed or unsuccessful. If we or our partners do not obtain regulatory approval for our product candidates on a timely basis, if at all, or if the terms of any approval impose significant restrictions or limitations on use, our business, results of operations and financial condition will be negatively affected. If the preclinical testing or clinical trials conducted by us or our partners are delayed or unsuccessful, our business could be significantly harmed. If we or our partners are not able to manufacture products in quantities and at costs that are commercially feasible, our proprietary and partnered product candidates will not be successfully commercialized. If government and private insurance programs do not provide reimbursement for our partnered products or proprietary products, those products will not be widely accepted, which would have a negative impact on our business, results of operations and financial condition. Because our proprietary product candidates are in the early stages of development, there is a high risk of failure, and we may never succeed in developing marketable products or generating revenue from our proprietary product candidates. Our strategy to develop our proprietary product candidates prior to seeking partnership arrangements may be unsuccessful and adversely impact our business, results of operations and financial condition. We depend on third parties to conduct the clinical trials for our proprietary product candidates and any failure of those parties to fulfill their obligations could harm our development and commercialization plans. Our manufacturing operations and those of our contract manufacturers are subject to governmental regulatory requirements, which, if not met, would have a material adverse effect on our business, results of operations and financial condition. If any of our pending patent applications do not issue, or are deemed invalid following issuance, we may lose valuable intellectual property protection. We rely on trade secret protection and other unpatented proprietary rights for important proprietary technologies, and any loss of such rights could harm our business, results of operations and financial condition. We may not be able to obtain intellectual property licenses related to the development of our technology on a commercially reasonable basis, if at all. Significant competition for our technology platforms, our partnered and proprietary products and product candidates could make our technologies, products or product candidates obsolete or uncompetitive, which would negatively impact our business, results of operations and financial condition. Our collaboration agreements with our partners contain complex commercial terms that could result in disputes or litigation that could adversely affect our business, results of operations and financial condition. We could be involved in legal proceedings and may incur substantial litigation costs and liabilities that will adversely affect our business, results of operations and financial condition. If product liability lawsuits are brought against us, we may incur substantial liabilities. Our future depends on the proper management of our current and future business operations and their associated expenses. We are dependent on our management team and key technical personnel, and the loss of any key manager or employee may impair our ability to develop our products effectively and may harm our business, operating results and financial condition. Because competition for highly qualified technical personnel is intense, we may not be able to attract and retain the personnel we need to support our operations and growth. If earthquakes and other catastrophic events strike, our business may be harmed. We have implemented certain anti-takeover measures, which make it more difficult to acquire us, even though such acquisitions may be beneficial to our stockholders. Risks Related to Our Securities The prices of our common stock and senior convertible debt are expected to remain volatile. Our securityholders may be diluted, and the price of our securities may decrease, by the exercise of outstanding stock options and warrants or by future issuances of securities.

Full 10-K form ▸

906709--2/29/2008--NEKTAR_THERAPEUTICS