930184--3/17/2008--VALEANT_PHARMACEUTICALS

related topics

{financial, litigation, operation}

{product, liability, claim}

{operation, international, foreign}

{product, candidate, development}

{regulation, government, change}

{control, financial, internal}

{property, intellectual, protect}

{acquisition, growth, future}

{tax, income, asset}

{provision, law, control}

We have identified a material weakness in our internal control over financial reporting that could adversely affect our stock price and ability to prepare complete and accurate financial statements in a timely manner. The current SEC investigation could adversely affect our business and the trading price of our securities. Third parties may be able to sell generic forms of our products or block the 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. Products representing a significant amount of our revenue are not protected by patent or data exclusivity rights. If retigabine and taribavirin do not become approved and commercially successful products, 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. We are subject to price control restrictions on our pharmaceutical products in the majority of countries in which we operate. The matters relating to the Special Committee s review of our historical stock option granting practices and the restatement of our consolidated financial statements have resulted in increased litigation and regulatory proceedings against us and could have a material adverse effect on us. 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. 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. Our business, financial condition and results of operations are subject to risks arising from the international scope of our operations. Cash earned by our foreign subsidiaries is held at those subsidiaries and transferring that cash to the United States would likely have a negative impact on our earnings. We are involved in various legal proceedings that could adversely affect us. Existing and future audits by, or other disputes with, taxing authorities may not be resolved in our favor. 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. 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.

Full 10-K form ▸

930184--3/17/2008--VALEANT_PHARMACEUTICALS_INTERNATIONAL