Abraxis BioScience (ABII)

Accounts Receivable and Concentration of Credit Risk

We typically have multi-year contractual agreements with specialty and traditional group purchasing organizations (GPOs) and comprehensive academic cancer centers to supply our product to end-users. As is traditional in the pharmaceutical industry, a significant amount of our branded pharmaceutical products are sold to end users under GPO contracts through a relatively small number of drug wholesalers and specialty distributors, which comprise the primary pharmaceutical distribution chain in the United States. Four of the

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wholesalers represented revenue in excess of 10% of total revenue. These wholesalers collectively represented approximately 76%, 79%, and 76% of our revenue in 2009, 2008, and 2007, respectively. A single wholesaler accounted for 34%, 35%, and 50% of our revenue in 2009, 2008, and 2007, respectively, with the next largest wholesaler accounting for 17%, 17%, and 13% in 2009, 2008, and 2007, respectively. These four wholesalers also represented 59% and 82% of accounts receivable at December 31, 2009 and 2008, respectively. We have a policy to routinely monitor the creditworthiness of customers, review outstanding customer balances and record allowances for bad debts as necessary. Historical credit losses have been insignificant.

Accounts Receivable and Concentration of Credit Risk

We typically have multi-year contractual agreements with specialty and traditional group purchasing organizations (GPOs) and comprehensive academic cancer centers to supply our product to end-users. As is traditional in the pharmaceutical industry, a significant amount of our branded pharmaceutical products are sold to end users under GPO contracts through a relatively small number of drug wholesalers and specialty distributors, which comprise the primary pharmaceutical distribution chain in the United States. Four wholesalers collectively represented approximately 79%, 76% and 84% of our revenue in 2008, 2007 and 2006, respectively. A single wholesaler accounted for 35%, 50% and 45% of our revenue in 2008, 2007 and 2006, respectively, with the next largest wholesaler accounting for 17%, 13% and 16% in 2008, 2007 and 2006, respectively. These four wholesalers also represented 82% of accounts receivable at December 31, 2008 and 2007. We have a policy to routinely monitor the creditworthiness of customers, review outstanding customer balances and record allowances for bad debts as necessary. Historical credit losses have been insignificant.

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Accounts Receivable and Concentration of Credit Risk

Accounts Receivable and Concentration of Credit Risk

We typically have multi-year contractual agreements with specialty and traditional group purchasing organizations (GPOs) and comprehensive academic cancer centers to supply our product to end-users. As is traditional in the pharmaceutical industry, a significant amount of our branded pharmaceutical products are sold to end users under GPO contracts through a relatively small number of drug wholesalers and specialty distributors, which comprise the primary pharmaceutical distribution chain in the United States. Four wholesalers collectively represented approximately 76%, 84% and 91% of our revenue in 2007, 2006 and 2005, respectively. A single wholesaler accounted for 50%, 45% and 48% of our revenue in 2007, 2006 and 2005, respectively, with the next largest wholesaler accounting for 13%, 16% and 23% in 2007, 2006 and 2005, respectively. These four wholesalers also represented 82% and 58% of accounts receivable at December 31, 2007 and 2006, respectively. To help control credit exposure, we routinely monitor the creditworthiness of our customers, review outstanding customer balances and record allowances for bad debts as necessary. We insure all, or a portion of, gross receivables from our largest customers to protect against risk of significant credit loss. Historical credit losses have been insignificant.

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Accounts Receivable and Concentration of Credit Risk

We typically have multi-year contractual agreements with specialty and traditional group purchasing organizations (GPOs) and
comprehensive academic cancer centers to supply our product to end-users. As is traditional in the pharmaceutical industry, a significant amount of our branded pharmaceutical products are sold to end users under GPO contracts through a relatively
small number of drug wholesalers and specialty distributors, which comprise the primary pharmaceutical distribution chain in the United States. Four wholesalers collectively represented approximately 76%, 84% and 91% of our revenue in 2007, 2006 and
2005, respectively. A single wholesaler accounted for 50%, 45% and 48% of our revenue in 2007, 2006 and 2005, respectively, with the next largest wholesaler accounting for 13%, 16% and 23% in 2007, 2006 and 2005, respectively. These four wholesalers
also represented 82% and 58% of accounts receivable at December 31, 2007 and 2006, respectively. To help control credit exposure, we routinely monitor the creditworthiness of our customers, review outstanding customer balances and record
allowances for bad debts as necessary. We insure all, or a portion of, gross receivables from our largest customers to protect against risk of significant credit loss. Historical credit losses have been insignificant.

Accounts Receivable and Concentration of Credit Risk

New Abraxis typically has multi-year contractual agreements with Specialty Group Purchasing Organizations (GPOs), Traditional GPO’s and Comprehensive Academic Cancer Centers to supply its product to end-users. As is traditional in the pharmaceutical industry, a significant amount of its branded pharmaceutical product are sold to end users under GPO contracts through a relatively small number of drug wholesalers and specialty distributors, which comprise the primary pharmaceutical distribution chain in the United States. Four wholesalers collectively represented approximately 85% and 91% of New Abraxis’ revenue in 2006 and 2005, respectively. A single wholesaler accounted for 46% and 48% of New Abraxis’ revenue in 2006 and 2005, respectively, with the next largest wholesaler accounting for 17% and 23% in 2006 and 2005, respectively. These four wholesalers also represented 57% and 84% of accounts receivable at December 31, 2006 and 2005, respectively. The 2006 decline in the proportion of revenue and receivables to the four major wholesalers was

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due primarily to increased sales to specialty oncology distributors. To help control its credit exposure, New Abraxis routinely monitors the creditworthiness of its customers, reviews outstanding customer balances and records allowances for bad debts as necessary. New Abraxis insures all, or a portion of, gross receivables from its largest customers to protect against risk of significant credit loss. Historical credit losses have been insignificant.