907562--3/3/2006--DYAX

related topics

{product, candidate, development}

{acquisition, growth, future}

{control, financial, internal}

{property, intellectual, protect}

{product, liability, claim}

{cost, regulation, environmental}

{stock, price, operating}

{regulation, change, law}

{product, market, service}

{personnel, key, retain}

{provision, law, control}

{stock, price, share}

{operation, international, foreign}

We have a history of operating losses and expect to incur significant additional operating losses. We may be unable to raise the capital that we will need to sustain our operations. Our biopharmaceutical or diagnostic product candidates must undergo rigorous clinical trials and regulatory approvals, which could substantially delay or prevent their development or marketing. We lack experience in conducting clinical trials, handling regulatory processes, and conducting sales and marketing activities, any or all of which 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. 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 biopharmaceuticals, which could adversely affect our revenues. 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 third parties not 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. If we fail to maintain an effective system of internal controls in the future, we may not be able to accurately report our financial results or prevent fraud. As a result, investors may lose confidence in our financial reporting. Compliance with changing regulation of 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--3/3/2006--DYAX_CORP