Also contributing to this decline in gross margins were increased labor costs incurred to support revenue growth, increased research and development expense in the testing business to support expansion of PGxHealth’s line of PGxPredict tests, and lower margins from our Cogenics gene sequencing services due to competitive pricing pressures. Also contributing to the decline in profit margins for the period were increased labor costs incurred to support revenue growth, increased research and development expenses incurred to support growth in the proprietary test business, and lower margins from our Cogenics gene sequencing services due to competitive pricing pressures. We will also provide additional resources to support strong growth in our proprietary marker development and genetic and pharmacogenetic testing businesses, as we continue to actively pursue the development of vilazodone, and look for opportunities that further leverage our intellectual property to target therapeutics in populations where drug response and safety can be enhanced. Food and Drug Administration and equivalent foreign regulatory agencies and for which indications; whether we will be able to successfully identify and validate biomarkers for response to Vilazodone; whether Vilazodone will be successfully marketed if approved; the extent to which genetic markers (haplotypes) are predictive of clinical outcomes and drug efficacy and safety; the strength of our intellectual property rights; competition from pharmaceutical, biotechnology and diagnostics companies; the development of and our ability to take advantage of the market for pharmacogenetic and biomarker products and services; our ability to raise additional capital to fund our operations on terms acceptable to the Company; general economic downturns; and other risks contained in our various SEC reports and filings, including but not limited to our Annual Report on Form 10-K for the fiscal year ended March 31, 2008, our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2007 and our Current Reports on Form 8-K filed with the Securities and Exchange Commission. read more

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