930184--3/2/2009--VALEANT_PHARMACEUTICALS

related topics

{product, liability, claim}

{product, candidate, development}

{financial, litigation, operation}

{operation, international, foreign}

{regulation, government, change}

{control, financial, internal}

{property, intellectual, protect}

{acquisition, growth, future}

{debt, indebtedness, cash}

Due to the large portion of our business conducted outside the United States, we have significant foreign currency risk. If retigabine, taribavirin and other product candidates in development do not become approved and commercially successful products, our ability to generate future growth in revenue and earnings will be adversely affected. We may be unable to identify, acquire and integrate acquisition targets successfully. If our products cause, or are alleged to cause, serious or widespread personal injury, we may have to withdraw those products from the market and/or incur significant costs, including payment of substantial sums in damages. If we, our partners or licensees cannot successfully develop or obtain future products and commercialize those products, our growth would be delayed. If we identify a material weakness in our internal control over financial reporting in future periods, our stock price could be adversely affected and our ability to prepare complete and accurate financial statements in a timely manner could be adversely affected. The results from the interim analyses of our Phase IIb study for taribavirin may not be predictive of the final results of the 72-week Phase IIb study or of any subsequent clinical trial necessary for approval of taribavirin. 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. We are subject to uncertainty related to health care reform measures and reimbursement policies. 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 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. If the counterparties to our convertible notes hedge and warrant transactions do not fulfill their obligations, if and when they occur, such a failure could have a material adverse effect on our financial position and results of operations, and result in stockholder dilution.

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930184--3/2/2009--VALEANT_PHARMACEUTICALS_INTERNATIONAL