930184--3/16/2006--VALEANT_PHARMACEUTICALS

related topics

{product, liability, claim}

{product, candidate, development}

{operation, international, foreign}

{financial, litigation, operation}

{regulation, government, change}

{regulation, change, law}

{customer, product, revenue}

{tax, income, asset}

{property, intellectual, protect}

{acquisition, growth, future}

{provision, law, control}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, share}

If we cannot successfully develop or obtain future products and commercialize those products, our growth would be delayed. The introduction of generic products has significantly impacted ribavirin royalties and may negatively impact future financial results. Third parties may be able to sell generic forms of our products or block our sales of our products if our intellectual property rights or data exclusivity rights do not sufficiently protect us; patent rights of third parties may also be asserted against us. If taribavirin does not become an approved and commercially successful product, our ability to generate future growth in revenue and earnings will be adversely affected. We are subject to uncertainty related to health care reform measures and reimbursement policies. If competitors develop vaccines or more effective or less costly drugs for our target indications, our business could be seriously harmed. Obtaining necessary government approvals is time consuming and not assured. Dependence on key personnel leaves us vulnerable to a negative impact if they leave. If we or our third-party manufacturers are unable to manufacture our products or the manufacturing process is interrupted due to failure to comply with regulations or for other reasons, the manufacture of our products could be interrupted. Many of our key processes, opportunities and expenses are a function of existing national and/or local government regulation. Significant changes in regulations could have a material adverse impact on our business. We are subject to price control restrictions on our pharmaceutical products in the majority of countries in which we operate. Our business, financial condition and results of operations are subject to risks arising from the international scope of our operations. Our debt agreements permit us to incur additional debt; however, we may not be able to secure sufficient or acceptable financing to fund our operations. Cash earned by our foreign subsidiaries is held at those subsidiaries and transferring that cash to the United States could have a negative impact on our earnings. We are involved in various legal proceedings that could adversely affect us. If our products are alleged to be harmful, we may not be able to sell them and we may be subject to product liability claims not covered by insurance. Existing and future audits by, or other disputes with, taxing authorities may not be resolved in our favor. Our flexibility in maximizing commercialization opportunities for our compounds may be limited by our obligations to Schering-Plough. Difficulties in completing, financing and integrating acquisitions could have a material adverse impact on our future growth. Due to the large portion of our business conducted outside the United States, we have significant foreign currency risk. If our nucleoside analog library is destroyed because of an earthquake or other disaster, our research and development program may be seriously harmed. Our stockholder rights plan and anti-takeover provisions of our charter documents could provide our board of directors with the ability to delay or prevent a change in control of us. We are subject to a consent order with the Securities and Exchange Commission We are subject to fraud and abuse and similar laws and regulations, and a failure to comply with such regulations or prevail in any litigation related to noncompliance could harm our business.

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930184--3/16/2006--VALEANT_PHARMACEUTICALS_INTERNATIONAL