917520--5/16/2008--INTEGRA_LIFESCIENCES_HOLDINGS

related topics

{product, liability, claim}

{property, intellectual, protect}

{customer, product, revenue}

{product, market, service}

{stock, price, share}

{tax, income, asset}

{personnel, key, retain}

{financial, litigation, operation}

{acquisition, growth, future}

{debt, indebtedness, cash}

{operation, international, foreign}

{control, financial, internal}

{cost, regulation, environmental}

{regulation, change, law}

Our current strategy involves growth through acquisitions, which requires us to incur substantial costs and potential liabilities for which we may never realize the anticipated benefits. Our future financial results could be adversely affected by impairments or other charges. To market our products under development we will first need to obtain regulatory approval. Further, if we fail to comply with the extensive governmental regulations that affect our business, we could be subject to penalties and could be precluded from marketing our products. Certain of our products contain materials derived from animal sources and may become subject to additional regulation. Certain of our products are derived from human tissue and are subject to additional regulations and requirements. Lack of market acceptance for our products or market preference for technologies that compete with our products could reduce our revenues and profitability. Our intellectual property rights may not provide meaningful commercial protection for our products, potentially enabling third parties to use our technology or very similar technology and could reduce our ability to compete in the market. Our competitive position depends, in part, upon unpatented trade secrets which we may be unable to protect. Our success will depend partly on our ability to operate without infringing or misappropriating the proprietary rights of others. We may be involved in lawsuits relating to our intellectual property rights and promotional practices, which may be expensive. It may be difficult to replace some of our suppliers. If any of our manufacturing facilities were damaged and/or our manufacturing or business processes interrupted, we could experience lost revenues and our business could be seriously harmed. We are exposed to a variety of risks relating to our international sales and operations, including fluctuations in exchange rates, local economic conditions and delays in collection of accounts receivable. Changes in the healthcare industry may require us to decrease the selling price for our products or may reduce the size of the market for our products, either of which could have a negative impact on our financial performance. Regulatory oversight of the medical device industry might affect the manner in which we may sell medical devices. Our private-label business depends significantly on key relationships with third parties, which we could be unable to establish and maintain. We may have significant product liability exposure and our insurance may not cover all potential claims. We are subject to requirements relating to hazardous materials which may impose significant compliance or other costs on us. The loss of key personnel could harm our business. We have material weaknesses in our internal control over financial reporting and cannot assure you that additional material weaknesses will not be identified in the future. The accounting method for our convertible debt securities will change. Our failure to timely file periodic reports with the Securities and Exchange Commission could result in the delisting of our common stock from The NASDAQ Global Select Market which could adversely affect the liquidity of our common stock and the market price of our common stock could decline. As a result of our disclosed material weaknesses in internal controls and the related delay in filing this Annual Report, we obtained certain waivers in connection with the delivery of financial statements and related matters under financing arrangements for our bank debt. We may require additional waivers in the future, and failure to obtain the necessary waivers could have a material adverse effect on our business, liquidity and financial condition. Our failure to deliver periodic reports to the trustee under the indentures governing our 2.75% senior convertible notes due 2010 and our 2.375% senior convertible notes due 2012 within the periods specified in the indentures could result in an event of default under the indentures, which could result in acceleration of the notes.

Full 10-K form ▸

917520--5/16/2008--INTEGRA_LIFESCIENCES_HOLDINGS_CORP