Abraxis BioScience (ABII)

Basis of Accounting and Combination

The combined financial statements include the assets, liabilities and results of operations of the legal entities and components of Old Abraxis that constituted the proprietary business that was separated and contributed to us subsequent to September 30, 2007. Such entities include, among others, our wholly-owned operating subsidiary, Abraxis BioScience, LLC, wholly-owned subsidiaries of Abraxis BioScience, LLC, Pharmaceutical Partners Switzerland GmbH, VivoRx AutoImmune, Inc. and Chicago BioScience, LLC, as well as its majority-owned subsidiaries, Resuscitation Technologies, LLC and Cenomed BioSciences, LLC. Additionally, the combined statements include our investment in Drug Source Company, LLC, which is accounted for using the equity method. All material intercompany balances and transactions have been eliminated in combination. Historical cost basis of assets and liabilities has been reflected in these financial statements. Because a direct ownership relationship did not exist among all the various units prior to the date of the combined financial statements, Old Abraxis’ investment in us is shown in lieu of stockholder’s equity in the combined financial statements. Management believes that the assumptions underlying the combined financial statements are reasonable. However, the financial information in these financial statements does not include all the expenses that would have been incurred had we been a separate, stand-alone entity and does not reflect our results of operations, financial position and cash flows had we been a stand-alone company during the periods presented.

Basis of Accounting and Combination

The combined financial statements include the assets, liabilities and results of operations the legal entities and components of Abraxis BioScience that constitute the proprietary products business to be separated. Such entities include, among others, New Abraxis’ wholly owned subsidiaries, Pharmaceutical Partners Switzerland GmbH, VivoRx AutoImmune, Inc., Chicago BioScience, LLC and Transplant Research Institute, as well as its majority-owned subsidiaries, Resuscitation Technologies, LLC and Cenomed BioSciences, LLC, and its investment in Drug Source Company, LLC, which is accounted for using the equity method. All material intercompany balances and transactions have been eliminated in combination. Historical cost basis of assets and liabilities has been reflected in these financial statements. Management believes that the assumptions underlying the combined financial statements are reasonable. However, the financial information in these financial statements does not include all the expenses that would have been incurred had New Abraxis been a separate, stand-alone entity and does not reflect New Abraxis’ results of operations, financial position and cash flows had New Abraxis been a stand-alone company during the periods presented.