Abraxis BioScience (ABII)

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Abraxis Oncology, one of our divisions, and AstraZeneca agreed to co-promote AbraxaneSIZE="1">^® in the United States beginning on July 1, 2006 for a term of five and one-half years;

AstraZeneca paid to us a $200 million up-front signing fee in May 2006, which is being recognized as deferred revenue over the five and one half year term of the
agreement beginning July 1, 2006;

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The parties are sharing in certain of the costs associated with advertising and promoting AbraxaneFACE="Times New Roman" SIZE="1">^® in the United States and the cost of certain clinical trials that are part of the product’s overall clinical development program. Any reimbursement from AstraZeneca relating to the cost
sharing will be recorded as a reduction of operating expenses;

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we will supply Abraxane^® during the five and one half year
term;

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we will pay AstraZeneca a 22% commission on U.S. net sales of AbraxaneSIZE="1">^® during the term of the agreement, with a trailing commission of ten percent for the first year and five percent for the second year following the end of the five and one half year term. The related commission expense
is recorded as a component of selling, general and administrative expenses. Payments commenced in November 2006; and

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we will be entitled to receive certain milestone payments from AstraZeneca in the event of FDA approvals for new
indications for Abraxane^® are obtained within specific timelines.