Abraxis BioScience (ABII)

Investment in Drug Source Company, LLC

Drug Source Company, LLC is a joint venture with three other partners established in June 2000 to purchase raw materials for resale to pharmaceutical companies. Since our 50% interest in Drug Source Company does not provide financial or operational control of the entity, we account for our interest in Drug Source Company under the equity method. Our equity in the net income of Drug Source Company is classified in operating expenses in the consolidated and combined statements of operations.

Investment in Drug Source Company, LLC

Investment in Drug Source Company, LLC

Drug Source Company, LLC is a joint venture with three other partners established in June 2000 to purchase raw materials for resale to pharmaceutical companies. Because our 50% interest in Drug Source Company does not provide financial or operational control of the entity, we account for our interest in Drug Source Company under the equity method. Our equity in the net income of Drug Source Company is classified in operating expenses in the combined and consolidated statements of operations.

66

Table of Contents

Investment in Drug Source Company, LLC

Drug Source Company, LLC is a joint venture with three other partners established in June 2000 to purchase raw materials for resale
to pharmaceutical companies. Because our 50% interest in Drug Source Company does not provide financial or operational control of the entity, we account for our interest in Drug Source Company under the equity method. Our equity in the net income of
Drug Source Company is classified in operating expenses in the combined and consolidated statements of operations.

66

Table of Contents

Investment in Drug Source Company, LLC

Drug Source Company is a joint venture with three other partners established in June 2000 to purchase raw materials for resale to pharmaceutical companies. Because our 50% interest in Drug Source Company does not provide financial or operational control of the entity, we account for our interest in Drug Source Company under the equity method. Our equity income in Drug Source Company for the three and nine months ended September 30, 2007 was $1.0 million and $2.9 million, respectively, compared to $1.5 million and $2.2 million, respectively in the comparable periods of 2006.

5

Table of Contents

Investment in Drug Source Company, LLC

Drug Source Company is a joint venture with three other partners established in June 2000 to purchase raw materials for resale to pharmaceutical companies, including New Abraxis. Because New Abraxis’ 50% interest in Drug Source Company does not provide financial or operational control of the entity, New Abraxis accounts for its interest in Drug Source Company under the equity method. New Abraxis’ equity in the net income of Drug Source Company is classified in operating expenses in the accompanying combined statements of income.