51
If the price of our securities continues tobe highlyvolatile, this couldmake it harder for you to liquidate your investment and
could increase your riskof sufferinga loss.
Themarket price of our common stock, like that of the securities ofmany other biopharmaceutical companies, has been and
is likely to continue tobe highlyvolatile. These fluctuations inour common stockpricemay significantly affect the tradingprice of
our securities. During the 12months precedingDecember 31, 2013, themarket price of our common stock ranged from $10.36 to
$42.69per share. Many factors can affect themarket price of our securities, including, for example, fluctuations inour operating
results, announcements of collaborations, clinical study results, technological innovations or newproducts beingdevelopedbyus or
our competitors, governmental regulation, regulatory approval, developments in patent or other proprietary rights, public concern
regarding the safetyof our drugs andgeneralmarket conditions.
We are exposed topotential product liability claims, and insurance against these claimsmaynot be available tous at a
reasonable rate in the future or at all.
Our business exposes us topotential product liability risks that are inherent in the testing,manufacturing,marketing and sale
of therapeutic products, includingpotential product liability claims related toKYNAMRO. We have clinical study insurance
coverage and commercial product liability insurance coverage. However, this insurance coveragemaynot be adequate to cover
claims against us, or be available tous at an acceptable cost, if at all. Regardless of theirmerit or eventual outcome, products liability
claimsmay result indecreaseddemand for our drugproducts, injury toour reputation, withdrawal of clinical studyvolunteers and loss
of revenues. Thus, whether or notwe are insured, a product liability claimor product recallmay result in losses that couldbe
material.
Becauseweuse biologicalmaterials, hazardousmaterials, chemicals and radioactive compounds, ifwe donot complywith
laws regulating the protectionof the environment andhealthandhuman safety, our business couldbe adversely affected.
Our research, development andmanufacturing activities involve the use of potentially harmful biologicalmaterials aswell as
materials, chemicals andvarious radioactive compounds that couldbe hazardous tohumanhealth and safetyor the environment.We
store thesematerials andvariouswastes resulting from their use at our facilities inCarlsbad, California pendingultimate use and
disposal.We cannot completely eliminate the riskof contamination, which could cause:
interruptionof our research, development andmanufacturing efforts;
injury toour employees andothers;
environmental damage resulting in costly cleanup; and
liabilities under federal, state and local laws and regulations governinghealth andhuman safety, aswell as the use,
storage, handling anddisposal of thesematerials and resultantwaste products.
In such an event, wemay be held liable for any resulting damages, and any liability could exceed our resources. Althoughwe
carry insurance in amounts and types thatwe consider commercially reasonable, we donot have insurance coverage for losses relating
to an interruptionof our research, development ormanufacturing efforts causedby contamination, and the coverage or coverage limits
of our insurance policiesmay not be adequate. If our losses exceed our insurance coverage, our financial conditionwould be adversely
affected.
We dependonRegulus for development of ourmicroRNA technology.
Regulus is a company thatwe andAlnylam established to focus ondiscovering, developing, and commercializingmicroRNA
therapeutics.We exclusively licensed toRegulus our intellectual property rights coveringmicroRNA technology. Regulus operates as
an independent company andRegulus and its employees are responsible for researching anddevelopingourmicroRNA technology. If
Regulus is not successful, the value of ourmicroRNA technologywouldbe harmed andwewould lose part or all of our investment in
Regulus.
