Abraxis BioScience (ABII)

Gross Profit

Gross profit for the year ended December 31, 2009 was $295.4 million, or 82.3% of net revenue, as compared to $306.2 million, or 88.7% of net revenue, for the same period in 2008. The decrease in gross margin as a percentage of net revenue was due primarily to the elimination of deferred revenue recognized from the Co-Promotion Agreement, higher volume of sales of raw material products, a voluntary recall initiated on certain lots of Abraxane^® and increased sales of Abraxane^® outside the United States.

Gross profit for the year ended December 31, 2008 was $306.2 million as compared to $299.2 million in 2007. Included in gross profit was the recognition of $36.4 million in each of 2008 and 2007 of deferred revenue under the Co-Promotion Agreement. Excluding the recognized deferred revenue from the Co-Promotion Agreement, gross profit as a percentage of net revenue for the year ended December 31, 2008 was 87.3% versus 88.4% in 2007. The decrease in gross margin percentage over the same period of 2007 was primarily due to a milestone payment received in 2007, increased sales of lower margin products associated with our contract manufacturing in Phoenix, offset partially by a pricing increase of Abraxane^® in 2008.

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Gross Profit

Gross profit for the three months ended March 31, 2009 was $63.5 million, or 87.4% of net revenue, as compared to $73.5 million, or 89.5% of net revenue for the same period of 2008. Excluding recognized deferred revenue, gross profit as a percentage of net revenue for the three months ended March 31, 2009 was 87.3% as compared to 88.2% in 2008.

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Gross Profit

Gross profit for the year ended December 31, 2008 was $306.2 million as compared to $299.2 million in 2007. Included in gross profit was the recognition of $36.4 million in each of 2008 and 2007 of deferred revenue under the Co-Promotion Agreement. Excluding the recognized deferred revenue from the Co-Promotion Agreement, gross profit as a percentage of net revenue for the year ended December 31, 2008 was 87.3% versus 88.4% in 2007. The decrease in gross margin percentage over the same period of 2007 was primarily due to a milestone payment received in 2007, increased sales of lower margin products associated with our contract manufacturing in Phoenix, offset partially by a pricing increase of Abraxane in 2008.

Gross profit for the year ended December 31, 2007 was $299.2 million as compared to $161.1 million in 2006. Included in gross profit was the recognition of $36.4 million in 2007 and $18.2 million in 2006 of deferred revenue under the Co-Promotion Agreement. Excluding the recognized deferred revenue from the Co-Promotion Agreement, gross profit as a percentage of net revenue for the year ended December 31, 2007 was 88.4% versus 87.1% in 2006. The increase in gross margin percentage over the same period of 2006 was primarily the result of efficiencies due to higher volume of Abraxane^® sales.

Gross
Profit

Gross profit for the year ended December 31, 2008 was $306.2 million as compared to $299.2 million in 2007. Included in
gross profit was the recognition of $36.4 million in each of 2008 and 2007 of deferred revenue under the Co-Promotion Agreement. Excluding the recognized deferred revenue from the Co-Promotion Agreement, gross profit as a percentage of net revenue
for the year ended December 31, 2008 was 87.3% versus 88.4% in 2007. The decrease in gross margin percentage over the same period of 2007 was primarily due to a milestone payment received in 2007, increased sales of lower margin products
associated with our contract manufacturing in Phoenix, offset partially by a pricing increase of Abraxane in 2008.

FACE="Times New Roman" SIZE="2">Gross profit for the year ended December 31, 2007 was $299.2 million as compared to $161.1 million in 2006. Included in gross profit was the recognition of $36.4 million in 2007 and $18.2 million in 2006 of
deferred revenue under the Co-Promotion Agreement. Excluding the recognized deferred revenue from the Co-Promotion Agreement, gross profit as a percentage of net revenue for the year ended December 31, 2007 was 88.4% versus 87.1% in 2006. The
increase in gross margin percentage over the same period of 2006 was primarily the result of efficiencies due to higher volume of Abraxane^® sales.

Gross Profit

Gross profit for the nine months ended September 30, 2008 was $223.5 million, or 88.3% of net revenue, as compared to $216.7 million, or 89.2% of net revenue, for the same period in 2007. Excluding recognized deferred revenue, gross profit as a percentage of net revenue for the nine months ended September 30, 2008 was 86.7% as compared to 87.7% for the same period in 2007, with the decrease primarily due to lower production volumes in the second quarter of 2008.

Gross Profit

Gross profit for the six months ended June 30, 2008 was $141.2 million, or 88.4% of net revenue, as compared to $140.6 million, or 90.6% of net revenue, for the same period in 2007. Excluding the recognized deferred revenue, gross profit as a percentage of net revenue for the six months ended June 30, 2008 was 86.9% as compared to 89.4% for the same period in 2007, with the decrease primarily due to lower second quarter 2008 production volumes.

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Gross Profit

Gross profit for the three months ended March 31, 2008 was $73.5 million, or 89.5% of net revenue as compared to $64.2 million, or 89.3% of net revenue, for the same period of 2007. Excluding the recognized deferred revenue, gross profit as a percentage of net revenue for the three months ended March 31, 2008 was 88.2%, as compared to 87.8% for the same period in 2007. The increase was primarily due to manufacturing efficiencies as a result of higher volume of Abraxane^® sales and production. Abraxane ^® revenue represented 97.3% of net revenue during the first three months of 2008 as compared to 98.6% for the first quarter of 2007.

Gross Profit

Gross profit for the year ended December 31, 2007 was $299.2 million as compared to $161.1 million in 2006. Included in gross profit was the recognition of $36.4 million in 2007 and $18.2 million in 2006 of deferred revenue under the AstraZeneca co-promotion agreement. Excluding the recognized deferred revenue from the AstraZeneca co-promotion agreement, gross profit as a percentage of net revenue for the year ended December 31, 2007 was 88.4% versus 87.1% in 2006. The increase in gross margin percentage over the same period of 2006 was primarily the result of efficiencies due to higher volume of Abraxane^® sales. Abraxane^® revenue represented 97.3% of net revenue for the year ended December 31, 2007 as compared to 96.0% in 2006.

Gross profit for the year ended December 31, 2006 was $161.1 million, or 88.4% of net revenue, inclusive of the recognition of $18.2 million of deferred revenue under the AstraZeneca co-promotion agreement. Gross profit in 2005 was $111.6 million, or 82.3% of net revenue. Excluding the recognized deferred revenue, gross profit as a percentage of net revenue in 2006 would have been 87.1%. The increase in 2006 over the prior year was due to manufacturing efficiencies caused by greater production volume and lower manufacturing spending.

Gross Profit

Gross profit for the nine months ended September 30, 2007 was $216.7 million, or 89.2% of net revenue as compared to $108.1 million, or 86.5% of net revenue, for the same period of 2006. Included in gross profit was the recognition of $27.3 million in 2007 and $9.1 million in 2006 of deferred revenue under the AstraZeneca co-promotion agreement. Excluding the recognized deferred revenue as part of the co-promotion agreements, gross profit as a percentage of net revenue for the nine months ended September 30, 2007 was 87.9% versus 85.5% for the comparable 2006 period. The increase in gross margin over the same period of 2006 was primarily the result of higher volume of Abraxane^® sales. Abraxane^® revenue represented 97% of combined net revenue during the first nine months of 2007 as compared to 95% for the same period in 2006.

Gross Profit

Gross profit in 2006 was $161.1 million, or 88.4% of net revenue, inclusive of the recognition of $18.2 million of deferred revenue under the AstraZeneca co-promotion agreement. Gross profit in 2005 was $110.6 million, or 81.5% of net revenue. Excluding the recognized deferred revenue, gross profit as a percentage of net revenue would have been 86.9%. The increase in 2006 over the prior year was due to manufacturing efficiencies caused by greater production volume and lower manufacturing spending.

Prior to the launch of Abraxane^® in February 2005, our only source of revenue related to research.