or damage to a production site or storage site due to a natural disaster or otherwise could affect our ability to manufacture sufficient quantities of our products or to provide products to meet customer demands or contractual requirements, which may result in lost revenue and other adverse business consequences. We may also need to clean up and inc afford other costs and expenses for products that do not meet specifications, make costly renovation efforts, or are looking for more expensive manufacturing alternatives. Such developments could increase our production or development costs, cause us to lose revenue or market share, patients and physicians turning to competing therapeutic drugs, reducing our profitability or damaging our reputation. In addition, any omission by Biogen, ELOCTATE and ALPROLIX could cause us to violate our delivery contracts to Sobi for these products, which, under these agreements, may subject us to liability and affect our relationship with Sobi. On July 1, 2016, Biogen received requests from the federal government for a civil law investigation into documents and information on the handling of certain service agreements with wholesalers when calculating and reporting average prices for producers related to the Medicaid Drug Rebate program. The company and Biogen have also entered into a manufacturing and delivery agreement whereby Biogen continues to produce ELOCTATE and ALPROLIX for us on the basis of plus costs. Since the products have been transferred in the past at costs between Biogen and Bioverativ, these production and supply agreements will result in changes in the cost of products sold in future periods. These restrictions may limit our ability to track certain strategic transactions or other transactions that we believe are in the best interests of our shareholders or increase the value of our business. In addition, under the tax agreement, we are required to exempt Biogen from these tax liabilities as a result of the acquisition of our shares or assets, even if we do not participate in the acquisition or facilitate them. The separation agreements we entered into with Biogen, including the separation agreement, the tax treaty and the transitional services agreement, were concluded as part of the separation, while we were still under Biogen`s control.

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