It is necessary to identify key risks for the company to get a perspective on how to hedge against them. Competitors outperforming the company with better technology and patents that the company is waiting on are a major threat. Regulatory approvals, which haunt all pharmaceuticals, for any new drugs the company has in its pipeline. Another major risk is patent expiry and the increase in generic competition forcing the price of products down significantly. Another expected challenge is the trend towards healthcare cost containment. This could result in forced regulations on pricing or introduction of price ceilings for medication.