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                                                                    Exhibit 99.1

RISK FACTORS

Key risk factors that may have a direct bearing on the Company's results,
performance and financial condition include:

     o    the Company's ability to successfully develop, on its own behalf and
          on behalf of its customers, and timely and successfully commercialize,
          launch and sell new and improved pharmaceutical products and services;

     o    the potential outcomes and commercial implications of clinical trials
          related to products under development by the Company;

     o    the ability and willingness of the Company's customers to successfully
          commercialize, launch and sell new and improved pharmaceutical
          products in which the Company has an economic interest;

     o    the Company's ability to successfully enter into and perform
          beneficial royalty, milestone and fee-for-service agreements with
          pharmaceutical companies;

     o    the introduction and sale of new or modified pharmaceutical products
          and technologies by other companies that affect the demand for
          pharmaceutical products and services in which AAI has a financial
          interest, either directly or through sales to, or royalties,
          milestones or other fees to be received from, AAI's customers and
          marketing partners;

     o    the Company's success in obtaining timely regulatory approvals of the
          Company's internally developed products and to obtain other regulatory
          approvals and regulatorily acceptable governmental audits and
          inspections of the Company's facilities, records and other regulated
          activities;

     o    our ability to hire and retain adequate numbers of qualified
          employees;

     o    industry outsourcing trends and volumes;

     o    changes in economic and market conditions that impact the demand for
          the Company's products and services;

     o    our ability to obtain suitable types and quantities of raw materials,
          excipients and active pharmaceutical ingredients used to develop,
          improve or manufacture products, at commercially viable prices;

     o    federal, state and foreign regulatory and legal changes and
          developments that impact the pharmaceutical industry and those
          companies developing or providing services and products to the
          pharmaceutical industry, including the

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          Company, as well as the outcome of related judicial cases involving or
          affecting the industry or such companies, including any such changes,
          developments or judicial cases pertaining to FDA or other regulatory,
          environmental, health and safety matters;

     o    changes in tariffs and import/export controls and restrictions;

     o    account receivable collection by the Company, and bankruptcy,
          insolvency or impaired ability by the Company's customers to pay
          amounts owed to the Company, in full and on a timely basis;

     o    risks inherent in international operations, including, e.g., possible
          economic, political, military, trade restraints or restrictions,
          monetary, or currency instabilities or developments affecting the
          United States, Canada, the European Union and its member states, the
          People's Republic of China, Turkey and Argentina, among others;

     o    the effects of vigorous competition and/or mergers and acquisitions in
          the pharmaceutical industry and those companies developing or
          providing services and products to the pharmaceutical industry;

     o    changes in interpretations and application of generally accepted
          accounting practices and policy standards by regulatory and accounting
          bodies that may cause the Company's reported financial results to
          differ from anticipated results;

     o    the concurrence of the Internal Revenue Service and state and foreign
          taxation agencies with the Company's interpretation and application of
          the applicable tax laws and regulations to the Company's operations
          and financial results, including in the Company's tax filings and
          returns;

     o    the Company's ability to successfully persuade the U.S. Patent and
          Trademark Office and its foreign counterparts to issue patents with
          strong claims, on a timely basis, and to enforce such issued patents
          against infringing companies;

     o    the outcome of any government reviews, investigations, claims or
          challenges that may arise with respect to the contracts, asset and
          stock sales and acquisitions, mergers, and joint ventures of or
          involving the Company;

     o    our ability to successfully find and complete advantageous
          acquisitions, joint ventures and mergers, including, e.g., our ability
          to accurately identify and assess the value, strengths, weaknesses,
          synergies, contingent and other liabilities and potential
          profitability of acquisition or merger candidate or of joint ventures
          and to successfully integrate acquired or merged operations into the
          operations of the Company; and

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     o    the compliance by the Company's customers, suppliers, licensors,
          licensees or other third parties with which the Company has
          contractual relations, with their contractual obligations to the
          Company, as well as the Company's ability to enforce such obligations
          through litigation, arbitration, mediation or other dispute resolution
          efforts.


Discussion of Risk Factors in the Pharmaceutical Industry. The Company believes
that the pharmaceutical industry in which it currently operates through its
development and commercialization of new and improved pharmaceutical products
and services holds tremendous opportunities for companies successful in
competing in that industry. At the same time, the Company is aware of what it
takes to be successful in this industry and the risk factors associated with the
industry.

In order to assist our stockholders in better understanding the risk factors in
the pharmaceutical industry, the Company is taking this opportunity to summarize
and discuss them:

     COMPETITION. The Company encounters aggressive competition in all areas of
     its business. Our competitors are numerous, ranging from large
     pharmaceutical companies to many smaller specialized firms. AAI competes
     primarily on the basis of innovation, ability to obtain regulatory
     approvals successfully and at early dates, technology and patents, a
     sophisticated understanding of chemistry, finding and developing novel
     chemical opportunities with respect to new or existing pharmaceutical
     products, service performance, price, quality, reliability, and customer
     service and support.

     Product opportunities frequently arise as innovator drugs approach the end
     of their patent lives. These include both product life cycle management
     (PLCM) activities to extend the product franchise life cycles for innovator
     pharmaceutical firms and to engage in generic product development.
     Developing new or improved drug products is complex and difficult, both
     technically and from a regulatory standpoint. Commercial success and
     viability depends on whether (and how many) other companies are developing
     new or improved competing drugs or generic equivalents to innovator drugs,
     which companies receive the earliest regulatory approvals to market the
     competing or generic products, and differences in the competing products'
     characteristics, effectiveness, safety, stability and side effects
     profiles. The product development process requires, often years in advance,
     accurate anticipation of market and customer acceptance of particular
     products, customers' needs, emerging technological trends, and a timely
     ability to complete successfully many dependent and complex chemistry,
     analytical, testing and regulatory approval requirements. When developed,
     new formulations may not accomplish desired delivery, clinical or product
     stability characteristics, and new or reformulated drugs may not have
     acceptable safety, effectiveness, stability or side effect profiles.
     Complications can also arise during production scale-up and/or developing
     or using acceptable analytical methodologies that materially affect the
     commercial or technical viability of a

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     new or improved product. New or improved products can also encounter
     unexpected unresolvable patent conflicts. Delays or problems may also arise
     from internal conflicts for resource availability, personnel errors or
     equipment failures. Pharmaceutical product development life cycles are long
     (typically several years) with substantial risks of failure in any of the
     development and clinical testing phases. The windows of opportunity to
     develop and commercialize such products open and close quickly with
     regulatory and market developments. To remain competitive, the Company must
     develop or license new and improved products, find, develop and
     commercialize PLCM opportunities for innovator drugs whose patent
     protection is soon to expire or generic products, periodically enhance its
     existing products and services, and compete effectively on the basis of the
     factors described above.

     The Company is also subject to the impact of marketplace actions of its
competitors. For example, in the event of business difficulties faced by a major
competitor, the competitor may decide to slash its prices or take other pricing
or market actions in order to obtain new business at any price, thereby
disrupting the entire marketplace for pricing and obtaining of new business for
the Company and other marketplace participants. There can be no assurance that
disruptive actions by the Company's competitors will not occur or affect the
Company's financial results or business operations.

     SELECTION AND INVESTMENT IN NEW RESEARCH AND DEVELOPMENT PROJECTS. The
     Company seeks to select new or improved products and services to work on in
     its judgment of those that may yield strong commercial success for the
     Company, in light of its then-available resources, technical capabilities
     and alternatives. However, in light of the multi-year product development
     cycle times, the Company must make long-term investments in its research
     and development projects and commit significant resources before knowing
     whether its predictions will eventually result in products that achieve
     customer and market acceptance and success.

     MARKETING OF NEW AND IMPROVED PRODUCTS AND SERVICES. After a new or
     improved pharmaceutical product or service is successfully developed, the
     Company must either find a pharmaceutical marketing partner and
     successfully enter into a profitable license and distribution agreement or
     seek to sell the product or service through its own sales force. Commercial
     success by the Company depends on our ability to create and maintain such
     effective marketing channels.

     MANUFACTURING OBLIGATIONS. Frequently, the Company has related
     manufacturing obligations that require it to manufacture sufficient volumes
     of marketable product at acceptable costs. This is a process that requires
     accurate forecasting of costs, volumes and mix of products and service
     estimates. Moreover, the supply and timing of a new product or service must
     match customers' demand and timing for the particular product or service.
     Given the wide variety of products and

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     services the Company offers and is developing, the process of planning
     production and projecting profitable cost charges is difficult.

     INTELLECTUAL PROPERTY. The Company generally relies upon patent, copyright,
     trademark and trade secret laws in the United States and in selected other
     countries to establish and maintain its proprietary rights in its
     intellectual property, technology and products. However, there can be no
     assurance that any of the Company's proprietary rights will not be
     challenged, invalidated or circumvented, or that any such rights will
     provide significant competitive advantages. Moreover, because of the rapid
     pace of technological change in the pharmaceutical industry, many of the
     Company's products rely on key technologies developed by itself or others
     that may be obsoleted at any time. There can be no assurance that the
     Company will be able to continue to develop or obtain licenses to necessary
     technologies. In addition, from time to time, the Company receives notices
     from third parties regarding patent claims. Any such claims, with or
     without merit, could be time-consuming to defend, result in costly
     litigation, divert management's attention and resources and cause the
     Company to incur significant expenses. In the event of a successful claim
     of infringement against the Company and failure or inability of the Company
     to license the infringed technology or to substitute similar non-infringing
     technology, the Company's business could be adversely affected. The Company
     also routinely enters into confidential disclosure agreements with third
     parties and customers that restrict the disclosure and/or use of the
     Company's intellectual property, including its confidential and proprietary
     information, disclosed to such third parties. Failure of such third-parties
     to honor their confidentiality and non-use obligations owed to AAI can
     materially harm the Company.

     RELIANCE ON SUPPLIERS. The Company's operations are dependent on our
     ability to obtain suppliers of quality raw materials, excipients and active
     pharmaceutical ingredients at commercially acceptable prices and terms, in
     time to satisfy critical product development, testing, analytical and
     manufacturing activities, customer contracts, or the development plans of
     the Company. The Company from time to time experiences constrained timely
     and cost-effective supplies of such desired materials. Such constraints, if
     persistent or widespread, may adversely affect the Company's operating
     results until resolved or alternate sourcing can be developed.

     DEVELOPMENT OF DIRECT SALES OF NICHE PHARMACEUTICAL PRODUCTS. The Company
     is currently planning the development of its own distribution channels for
     certain "niche" pharmaceutical products not intended to conflict with
     products being sold by the Company's customers. The Company is in the
     process of developing its own, and actively seeking to buy from third
     parties, non-conflicting "niche" pharmaceutical products. There is no
     assurance that such distribution channels can be successfully developed,
     that such products can be successfully identified, acquired or developed,
     or that the Company's customers may not react adversely to such marketing
     efforts by the Company. The Company's operational and

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     financial results could be materially and adversely affected due to any
     such adverse reactions.

     INTERNATIONAL. Sales outside the United States make up a significant
     portion of the Company's revenues. In addition, a significant portion of
     the Company's facilities and personnel, along with key customers and
     suppliers, are located outside the United States. Accordingly, the
     Company's future results could be adversely affected by a variety of
     factors, including changes in a specific country's or region's political
     conditions or changes or continued weakness in economic conditions, trade
     protection measures, import or export licensing requirements, facility or
     ownership interest nationalization, the overlap of different tax
     structures, unexpected changes in regulatory requirements, military
     conflicts or actions, and natural disasters.

     MANAGEMENT AND SKILLED PERSONNEL. As with any technological company, the
     Company's operations require adequate numbers of skilled scientific and
     technical personnel, as well as strong management and sales capabilities,
     to be successful. Such personnel are in strong demand by many other
     companies and the Company's personnel are frequently hired away by other
     companies. Retaining skilled personnel, and hiring replacements, are
     critical to the Company's success. There can be no assurance that the loss
     of key personnel, whether to other companies or to accident, illness,
     death, injury or retirement, will not occur at a time or in a manner that
     will not disrupt or delay key projects and activities of the Company and
     thereb adversely affect our operations or financial results.

     DEMANDS OF GROWTH. In recent years, the Company has been growing in size
     and complexity of operations. An organization bears many burdens
     organizationally caused by such growth, including, among others,
     successfully improving, increasing and changing the financial, information
     technology, operational, personnel-related and other systems, policies and
     practices of the organization and the organizational structure of the
     business and its management, as well as finding and hiring the appropriate
     people for new or changed positions. The Company believes that it is
     presently meeting the challenges of growth, but any failure or inability to
     meet such challenges, or to successfully create, maintain or use such
     systems, policies or practices, can materially and adversely affect the
     operations and financial result of the Company.

     LITIGATION, INVESTIGATIONS AND CLAIMS. Any company, including AAI, always
     faces the risk of potential litigation being brought against it in the
     course of its business operations. By their nature, litigation,
     pre-litigation investigations and controversies, and claim demands occur
     when disputes arise between two parties, or between a party and a
     government agency, as to whether legal obligations are owed or breached.
     These are often difficult or impossible to predict, avoid or mitigate in
     advance. When they occur, litigation, investigations and claim demands may
     be based on either valid or unfounded claims. In either case,

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     however, litigation typically seeks substantial amounts of money and/or
     injunctive relief and involve substantial legal fees and expenses, and
     pre-litigation investigations and claim demands frequently involve major
     costs and diversions of management and personnel time and attention, which,
     in each case, can materially and adversely affect the Company's operations
     or financial results.

     CREDITWORTHINESS AND CONTRACT COMPLIANCE OF CUSTOMERS. The magnitude of the
     Company's contracts are often substantial in comparison to the Company's
     size. While many of the Company's customers are large and well-funded
     pharmaceutical companies, others are small (or are "virtual" companies)
     with substantially less resources which can run into financial or
     operational difficulties from time to time. In the event that a customer
     with a significant contract with the Company runs into financial or credit
     difficulties, declares bankruptcy, becomes insolvent or otherwise is unable
     or unwilling to pay monies owed to the Company on a timely basis or
     otherwise honor its obligations under such a contract, the Company could be
     materially and adversely affected.

     DERIVATIVE FINANCIAL INSTRUMENTS. As is common with companies operating
     internationally, the Company is exposed to foreign currency exchange rate
     risk inherent in its contracts, business dealings, and assets and
     liabilities denominated in currencies other than the U.S. dollar, as well
     as interest rate risk inherent in the Company's debt, investment and
     accounts receivable portfolio. The Company's risk management strategy
     utilizes derivative financial instruments, including forwards and swaps, to
     hedge certain foreign currency and interest rate exposures, with the intent
     of offsetting gains and losses that occur on the underlying exposures with
     gains and losses on the derivative contracts hedging them. The Company does
     not enter into derivatives for trading purposes.

     The Company has performed a sensitivity analysis assuming a hypothetical
adverse movement of 10% in foreign exchange rates and 1% in interest rates
(applied to variable rate debt and leases tied to interest rates) and disclosed
the results in Part I, Item 3 of the current Form 10-Q. Actual gains and losses
in the future may differ materially from that analysis, however, based on
changes in the timing and amount of interest rate and foreign currency exchange
rate movements and the Company's actual exposures and hedges.

     ACQUISITIONS, STRATEGIC ALLIANCES, JOINT VENTURES AND DIVESTITURES. From
     time to time, the Company engages in discussions with a variety of parties
     relating to possible acquisitions, strategic alliances, joint ventures and
     divestitures. The implementation or integration of a transaction may
     contribute to the Company's results differing from the investment
     community's expectation in a given quarter. Divestitures may result in the
     cancellation of orders and charges to earnings. Acquisitions and strategic
     alliances may require, among other things, integration or coordination with
     a different company culture, management team organization and business
     infrastructure. They may also require the development, manufacture and
     marketing of product offerings that enhance or detract from the performance

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     of the combined business or product line. Depending on the size and
     complexity of the transaction, successful integration depends on a variety
     of factors, including the hiring and retention of key employees, management
     of geographically separate facilities, and the integration or coordination
     of different research and development and product manufacturing facilities.
     All of these efforts require varying levels of management resources, which
     may temporarily adversely impact other business operations.

     HURRICANES. A significant portion of the Company's research and development
     activities, its corporate headquarters, and other critical business
     operations and certain of its suppliers are located in geographic areas
     that have had, and are likely to continue to have, hurricanes and major
     storms. To mitigate this risk, the Company maintains certain levels of
     business interruption and other insurance coverage. However, the ultimate
     impact on the Company, its operations and its infrastructure of future
     hurricanes and storms cannot be foreseen or controlled at this time.

     DRUG ENFORCEMENT AGENCY ("DEA") REGULATION. Certain of the Company's
     development, testing and other activities are subject to the Controlled
     Substances Act, administered by the Drug Enforcement Agency (the "DEA"),
     which regulates strictly all narcotic and habit-forming substances. The
     Company maintains separate, restricted-access facilities and heightened
     control procedures for projects involving such substances due to the level
     of security and other controls required by the DEA. Any failure or
     inability by the Company to comply with such Act and regulations could
     materially and adversely affect the business, operations and financial
     results of the Company.

     ENVIRONMENTAL AND HAZARDOUS MATERIALS IN THE WORKPLACE. Certain of the
     Company's operations involve the use of substances regulated under various
     federal, state, local, and international laws governing the environment.
     Moreover, the Company's activities involve the controlled use of hazardous
     materials and chemicals. The Company is subject to federal, state and local
     laws and regulations governing the use, storage, handling and disposal of
     such materials and certain waste products. In the event of an accident,
     discharges (e.g., to the groundwater or air) or other non-compliance, the
     Company could be held liable for any damages that result, including damages
     or injuries, including deaths, to persons, property or the environment,
     which could materially and adversely affect the financial condition and
     operations of the Company.

     PROFIT MARGIN. The profit margins realized by the Company vary among its
     products and services, its customers, its competitive situation, and its
     geographic areas of operation. Consequently, the overall profitability of
     the Company's operations in any given period is partially dependent on the
     product, service, customer and geographic mix, and competitive situation,
     reflected in that period's net sales.

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     CHANGES IN LAWS AND REGULATIONS. The Company operates in a highly regulated
     business. Failure or inability to comply with the laws and regulations
     applicable to our business would materially and adversely affect the
     Company's business and financial results. Moreover, these laws and
     regulations and governmental interpretations and applications thereof, both
     in the United States and in foreign countries, change over time. The
     Company can give no assurance that the laws and regulations applicable to
     our business will not change, or be interpreted or re-interpreted by
     governmental agencies or bodies, in ways harmful to the Company and its
     financial results and business operations.

     CREDIT FACILITIES AND AVAILABILITY OF CASH. The Company is dependent on its
     bank relationships and credit facilities to provide cash and funding for
     Company operations. In the event of any future disruption or limitation in
     such relationships or facilities, any decision by the Company's banks to
     terminate, reduce or impose limitations on our credit facilities or to
     exercise rights to impose restrictions or declare breaches under banking
     contract provisions, any decisions by the Company's banks to collect on any
     assets of the Company as collateral for such lending facilities, or in the
     event that the Company requires more cash than is available to it under
     such credit facilities, the Company's operations and financial condition
     could be materially and adversely affected.

FLUCTUATIONS AND VOLATILITY OF STOCK PRICES. In the pharmaceutical industry,
future revenue and margin trends cannot be reliably predicted and may cause the
Company to adjust its operations, which could cause period-to-period
fluctuations in operating results. The Company's stock price, like that of other
small pharmaceutical companies, is subject to significant volatility. The
announcement of new products, services, technological innovations or business
developments by the Company or its competitors, quarterly or annual variations
in the Company's results of operations, changes in revenue or earnings estimates
by the investment community, and speculation in the press, Internet web sites or
investment community are among the factors affecting the Company's stock price.
In addition, the stock price may be affected by general market conditions and
domestic and international macroeconomic factors unrelated to the Company's
performance. Moreover, major potential contracts or business arrangements being
negotiated or pursued by the Company frequently occur late in given financial
quarters or years. Any failure or inability by the Company in achieving, or even
brief delays in implementing, potential licensing, product life cycle
management, product development and other major contracts or arrangements being
pursued or negotiated by the Company can, and from time to time does, move the
financial and sales impact of expected or planned sales and contracts from one
accounting period to another or prevent them from being booked at all. Such
delays or inabilities are difficult or impossible to predict or control and can
materially and adversely affect quarterly or annual revenues and profitability,
which can materially and adversely affect the price of the Company's stock. In
addition, typical trading volumes in the Company stock are thin, so that the
purchase or sale of relatively small amounts of the Company stock and
announcements of Company-related news and developments can materially affect the
price of such stock, either through increases or

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decreases. Because of the foregoing reasons, recent trends should not be
considered reliable indicators of future stock prices or financial results.