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&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;b&gt;&lt;font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;M.&amp;nbsp;&amp;nbsp; Subsequent Events&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;

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&lt;p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.25in"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;In October&amp;nbsp;2010, we announced a corporate restructuring, including a workforce reduction plan, pursuant to which we will reduce our workforce by 24%, or 68 positions. We communicated our decision to our employees on October&amp;nbsp;28, 2010. As a result of the reduction in our workforce, we currently estimate that we will record restructuring charges of approximately $2.7 million, the majority of which is expected to be incurred in the fourth quarter of 2010. These restructuring charges consist of approximately $2.6 million relating to employee severance benefits and approximately $0.1 million relating to other charges, including certain costs associated with automobile lease terminations. We expect that most of such amounts will be paid within the next twelve months. Our estimated restructuring charges are based on a number of assumptions. Actual results may differ materially and additional charges not currently expected may be incurred in connection with, or as a result of, these reductions. We expect the majority of the workforce reduction to be completed by the end of the fourth quarter of 2010 with any remaining positions being eliminated in the first half of 2011. During the three months ended September&amp;nbsp;30, 2010, we reversed approximately $1.6 million in equity-based and other compensation expense due to the impact of our reduction in workforce upon both the estimated forfeiture rate applied to our equity awards as well as certain other estimated accrued compensation costs.&lt;/font&gt;&lt;/p&gt;

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&lt;p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.25in"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;On November&amp;nbsp;2, 2010, we received a Civil Investigative Demand, or CID,&amp;nbsp;from the U.S. Department of Justice pursuant to the federal False Claims Act. The CID requires the delivery of documents and testimony to the United States Attorney&amp;#146;s Office in Boston, Massachusetts, relating to allegations that we caused the submission of false claims to Federal health care programs. We intend to cooperate with the Department of Justice with respect to this investigation. No assurance can be given as to the timing or outcome of this investigation.&lt;/font&gt;&lt;/p&gt;

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&lt;p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.25in"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;In addition, we recently received correspondence from a supplier with whom we have an agreement related to the supply of a certain material used in the production of &lt;i&gt;Feraheme.&lt;/i&gt; This correspondence suggests that we are in violation of the terms of the agreement. We intend to vigorously defend against any such allegations, but are currently unable to predict the outcome or reasonably estimate the range of potential loss.&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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