Henry Schein 2014 Annual Report Download - page 36

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The market price for our common stock may be highly volatile.
The market price for our common stock may be highly volatile. A variety of factors may have a significant
impact on the market price of our common stock, including:
• the publication of earnings estimates or other research reports and speculation in the press or
investment community;
• changes in our industry and competitors;
• our financial condition, results of operations and cash flows and prospects;
• stock repurchases;
• any future issuances of our common stock, which may include primary offerings for cash, stock splits,
issuances in connection with business acquisitions, issuances of restricted stock/units and the grant or
exercise of stock options from time to time;
• general market and economic conditions; and
• any outbreak or escalation of hostilities in areas where we do business.
In addition, the NASDAQ Stock Market can experience extreme price and volume fluctuations that can be
unrelated or disproportionate to the operating performance of the companies listed on NASDAQ. Broad market
and industry factors may negatively affect the market price of our common stock, regardless of actual operating
performance. In the past, following periods of volatility in the market price of a company’ s securities, securities
class action litigation has often been instituted against companies. This type of litigation, if instituted, could result
in substantial costs and a diversion of management’ s attention and resources, which would have an adverse effect
on our business.
The health care industry is experiencing changes that could adversely affect our business.
The health care industry is highly regulated and subject to changing political, economic and regulatory
influences. In recent years, the health care industry has undergone, and is in the process of undergoing, significant
changes driven by various efforts to reduce costs, including: trends toward managed care; consolidation of health
care distribution companies; consolidation of health care manufacturers; collective purchasing arrangements and
consolidation among office-based health care practitioners; and changes in reimbursements to customers, as well as
growing enforcement activities (and related monetary recoveries) by governmental officials. Both our own profit
margins and the profit margins of our customers may be adversely affected by laws and regulations reducing
reimbursement rates for pharmaceuticals and/or medical treatments or services, changing the methodology by
which reimbursement levels are determined and, in the case of animal health practitioners, changes in the use of
feed additives (including, without limitation, antibiotics and growth promotants) used in the production of animal
products due to trade restrictions, animal welfare and/or government regulations; and changes in customer buying
habits (including customers purchasing animal health pharmaceuticals outside the veterinarians’ offices). If we are
unable to react effectively to these and other changes in the health care industry, our operating results could be
adversely affected. In addition, the enactment of significant health care reforms could have a material adverse
effect on our businesses.
The implementation of the Health Care Reform Law could adversely affect our business.
The United States Patient Protection and Affordable Care Act as amended by the Health Care and Education
Reconciliation Act, each enacted in March 2010, generally known as the Health Care Reform Law, significantly
expand health insurance coverage to uninsured Americans and changes the way health care is financed by both
governmental and private payers. We expect expansion of access to health insurance to increase the demand for
our products and services, but other provisions of the Health Care Reform Law could affect us adversely, and the
Health Care Reform Law may be invalidated, in whole or in part, or it may be repealed. Additionally, further
federal and state proposals for health care reform in the United States are likely, and foreign government authorities
may also adopt reforms of their health systems. We cannot predict what further reform proposals, if any, will be
adopted, when they may be adopted, or what impact they may have on us.