This excerpt taken from the ABII 8-K filed Mar 3, 2009.
Full-Year 2008 Financial Results
Net revenue increased 3.5 percent to $345.3 million, compared with $333.7 million for the prior year. Revenue from sales of ABRAXANE for 2008 increased 3.4 percent to $335.6 million,
compared with $324.7 million in 2007. Net revenue for 2008 included recognition of revenue of $39.5 million that was initially deferred relating to the co-promotion agreement and the license agreements with Taiho and Green Cross, compared with $39.4 million of recognized deferred revenue last year.
Gross profit was $306.2 million, or 89 percent of net revenue, compared with $299.2 million, or 90 percent of net revenue, for 2007.
Research and development expense increased to $103.6 million, or 30 percent of net revenue, compared with $88.7 million, or 27 percent of revenue, for the prior year. The increase was primarily due to costs related to the Phoenix plant acquired in 2007, increased spending for clinical and investigator-sponsored studies and investment in R&D projects.
Selling, general and administrative expenses decreased $13.2 million to $216.8 million, or 63 percent of net revenue, versus $230.0 million, or 69 percent of net revenue, for 2007. The decrease was primarily the result of higher legal costs in 2007 and overall lower domestic marketing expenses.
For 2008, the company reported $158.9 million of net expense related to the re-acquisition costs in the fourth quarter; amortization of acquired intangibles assets of $39.4 million; a litigation charge in the second quarter of $57.6 million, including accrued interest; a $13.9 million non-recurring charge for acquired in-process research and development in connection with the companys acquisition of Shimoda Biotech and Platco Technologies; and, an impairment charge totaling $9.2 million in the third quarter for the anticipated sale of certain property, plant and equipment.
Interest income was approximately $18.8 million, compared with approximately $5.0 million for the prior year, due primarily to interest earned on the $700 million cash received in connection with the separation from APP Pharmaceuticals, Inc. in November 2007.
Other expenses increased to $5.2 million from $190,000 in 2007, due primarily to the write-down of marketable securities whose values were determined to be impaired.
Adjusted net income was $11.2 million, or $0.28 per diluted share, compared with $7.0 million, or $0.17 per diluted share, for 2007. Adjusted net income for 2008 and 2007 excludes
amortization of acquired intangible assets, an in-process research and development charge, the re-acquisition costs, litigation costs, impairment charge, realized loss on marketable securities and the impact of non-cash stock compensation expense. On a GAAP basis, and including the previously described charges, net loss for 2008 of $276.8 million, or $6.91 per share, compared with net loss of $41.6 million, or $1.04 per share, in 2007.
(Reconciliation tables are provided below)