907562--2/29/2008--DYAX

related topics

{product, candidate, development}

{product, liability, claim}

{acquisition, growth, future}

{property, intellectual, protect}

{customer, product, revenue}

{operation, international, foreign}

{cost, regulation, environmental}

{stock, price, operating}

{control, financial, internal}

{regulation, change, law}

{product, market, service}

{personnel, key, retain}

{provision, law, control}

{stock, price, share}

We have a history of net losses and expect to incur significant additional net losses. We may be unable to raise the capital that we will need to sustain our operations. Our biopharmaceutical product candidates must undergo rigorous clinical trials and regulatory approvals, which could substantially delay or prevent their development or marketing. We lack experience in and/or capacity for conducting clinical trials, handling regulatory processes, and conducting sales and marketing activities. This lack of experience and/or capacity may adversely affect our ability to commercialize any biopharmaceuticals that we may develop. Because we currently lack the resources, capability and experience necessary to manufacture biopharmaceuticals, we will depend on third parties to perform this function, which may adversely affect our ability to commercialize any biopharmaceuticals we may develop. Even if we obtain regulatory approval, our biopharmaceutical products will continue to be subject to governmental review. If we, or our suppliers, fail to comply with FDA or other government regulations, our business, financial condition, and results of operations would be adversely affected. If we are unable to find a strategic partner for our DX-88 product candidate, we may be unable to generate revenues from, or recoup our investments in, DX-88. Paul Royalty is entitled to a significant portion of our LFRP revenues, which may limit our ability to fund some of our operations. Under certain circumstances, Paul Royalty can require us to repurchase its royalty interest at a substantial price that may significantly deplete our cash resources, limit our ability to enter into significant business transactions or make us a less attractive acquisition candidate. Product liability and other claims against us may reduce demand for our product candidates or result in substantial damages. If we fail to establish and maintain strategic license, research and collaborative relationships, or if our collaborators are not able to successfully develop and commercialize product candidates, our ability to generate revenues could be adversely affected. We and our collaborators may not be able to gain market acceptance of our biopharmaceutical product candidates, which could adversely affect our revenues. We have pledged our assets related to the LFRP to Paul Royalty; therefore, we may not be free to use those assets at our discretion. Competition and technological change may make our potential products and technologies less attractive or obsolete. Our success depends significantly upon our ability to obtain and maintain intellectual property protection for our products and technologies and upon third parties not having or obtaining patents that would prevent us from commercializing any of our products. Proceedings to obtain, enforce or defend patents and to defend against charges of infringement are time consuming and expensive activities. Unfavorable outcomes in these proceedings could limit our patent rights and our activities, which could materially affect our business. Our revenues and operating results have fluctuated significantly in the past, and we expect this to continue in the future. If we lose or are unable to hire and retain qualified personnel, then we may not be able to develop our products or processes. We use and generate hazardous materials in our business, and any claims relating to the improper handling, storage, release or disposal of these materials could be time-consuming and expensive. We may have significant product liability exposure. Our business is subject to risks associated with international operations and collaborations. Compliance with changing regulations relating to corporate governance and public disclosure may result in additional expenses. We may not succeed in acquiring technology and integrating complementary businesses. Our common stock may continue to have a volatile public trading price and low trading volume. Anti-takeover provisions in our governing documents and under Delaware law and our shareholder rights plan may make an acquisition of us more difficult.

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907562--2/29/2008--DYAX_CORP