Cardinal Health 2008 Annual Report Download - page 44

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• problems assimilating and retaining the management or employees of the acquired company or the
Company’s employees following an acquisition;
• accounting issues that could arise in connection with, or as a result of, the acquisition of the acquired
company, including issues related to internal control over financial reporting;
• regulatory or compliance issues that could exist for an acquired company or business;
• challenges in retaining the customers of the combined businesses; and
• potential adverse short-term effects on results of operations through increased costs or otherwise.
If the Company is unable to successfully complete and integrate strategic acquisitions in a timely manner,
its results of operations and financial condition could be adversely affected.
With respect to divestitures, the Company continues to evaluate the performance and strategic fit of its
businesses and may decide to sell a business or product line based on such an evaluation. Any divestitures may
result in significant write-offs, including those related to goodwill and other intangible assets, which could have
an adverse effect on the Company’s results of operations and financial condition. In addition, the Company may
encounter difficulty in finding buyers or alternative exit strategies at acceptable prices and terms and in a timely
manner. Divestitures could involve additional risks, including the following:
• difficulties in the separation of operations, services, products and personnel;
• the diversion of management’s attention from other business concerns;
• the assumption of certain current or future liabilities in order to induce a buyer to complete the
divestiture;
• the disruption of the Company’s business; and
• the potential loss of key employees.
The Company may not be successful in managing these or any other significant risks that it may encounter in
divesting a business or product line.
The Company may be unable to effectively introduce and market new products or may fail to keep pace with
advances in technology.
The healthcare industry is characterized by continuous technological change, resulting in changing customer
preferences and requirements. The success of the Company’s manufacturing businesses depends on their ability
to introduce new products and adapt to these changing technologies and customer demands. The success of new
product development depends on many factors, including the Company’s ability to anticipate and satisfy
customer needs, obtain regulatory and reimbursement approvals on a timely basis, develop and manufacture
products in a cost-effective and timely manner, maintain advantageous positions with respect to intellectual
property and differentiate the Company’s products from those of its competitors. To compete successfully in the
marketplace, the Company must make substantial investments in new product development whether internally or
externally through licensing or acquisitions. The Company’s failure to introduce new and innovative products in
a timely manner would have an adverse effect on its results of operations and financial condition.
Even if the Company is able to develop, manufacture and obtain regulatory and reimbursement approvals
for its new products, the success of those products would depend upon market acceptance. Levels of market
acceptance for the Company’s new products could be affected by several factors, including:
• the availability of alternative products from the Company’s competitors;
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