Abraxis BioScience (ABII)

Operating Activities

Net cash provided by operating activities was $4.5 million for year ended December 31, 2009 compared to net cash used in operating activities of $315.5 million for the same period in 2008, resulting in a $320.0 million increase in cash provided by operations. This increase was primarily due to $300.6 million in cash used to pay for letters of credits in 2008 to secure future payments under the agreement to reacquire the exclusive rights to market Abraxane^® in the United States. An increase in accounts payable in 2009 also caused an increase in cash provided by operating activities. These increases were partially offset by an increase in accounts receivable in 2009.

Net cash used in operating activities was $315.5 million for the year ended December 31, 2008 compared to cash used in operating activities of $2.9 million in 2007. The increase in cash used in operations of $312.6 million was primarily due to cash collateral set aside for the $268.0 million payment to reacquire the exclusive rights to market Abraxane^® in the United States and estimated remaining payments under the Co-Promotion Agreement of $18 million. Cash outflow for prepaid expenses, accounts payable and accrued expenses accounted for additional increases in cash used for operating activities. The uses of cash were partially offset by cash provided from decreases in accounts receivable, inventory and higher interest income earned on our cash balance in 2008.

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Operating Activities

Net cash provided by operating activities was $9.4 million for the three months ended March 31, 2009 compared to net cash used in operating activities of $0.6 million for the same period in 2008. The increase in cash provided by operations of $10.0 million was primarily due to a decrease, in excess of accruals, for cash collateral for reacquisition of agreement, and a decrease in related party receivable, which are offset by an increase in accounts receivable and a net loss for the three months ended March 31, 2009.

Operating Activities

Net cash used in operating activities was $315.5 million for the year ended December 31, 2008 compared to cash used in operating activities of $2.9 million in 2007. The increase in cash used in operations of $312.6 million was primarily due to cash collateral set aside for the $268.0 million payment to reacquire the exclusive rights to market Abraxane in the U.S. and estimated remaining payments under the Co-Promotion Agreement of $18 million. Cash outflow for prepaid expenses, accounts payable and accrued expenses accounted for additional increases in cash used for operating activities. The uses of cash were partially offset by cash provided from decreases in accounts receivable, inventory and higher interest income earned on our cash balance in 2008.

Net cash used in operating activities was $2.9 million for the year ended December 31, 2007 compared to cash provided by operating activities of $170.9 million in 2006. The $173.8 million decrease in cash provided by

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operating activities in 2007 was primarily due to the receipt in 2006 of a $200 million upfront fee associated with the Co-Promotion Agreement. This payment was recorded as deferred revenue and is being recognized over the period of the agreement. Additionally, the decrease in cash provided by operating activities was impacted by an increase in accounts receivable and other current assets offset by an increase in accounts payable.

Operating Activities

Net cash used in operating activities was $9.5 million for the nine months ended September 30, 2008 compared to net cash used in operating activities of $7.4 million for the same period in 2007. The increase in cash used in operations of $2.1 million was primarily due to decreases in accounts payable and other accrued liabilities offset by a decrease in accounts receivable, a decrease in inventory and higher interest income earned on our cash balance in 2008.

Operating Activities

Net cash used in operating activities was $11.2 million for the six months ended June 30, 2008 compared to net cash used in operating activities of $19.0 million for the same period in 2007. The increase in cash from operations of $7.8 million was primarily due to decreases in accounts accounts payable offset by an increase in accounts receivable. Additionally, higher interest income earned on our cash balance in 2008 also increased cash from operating activities over the prior year.

Operating Activities

Net cash used in operating activities was $0.6 million for the three months ended March 31, 2008 compared to cash used in operating activities of $32.7 million for the same period in 2007. The $32.1 million decrease in cash used in operating activities for the three months ended March 31, 2008 from the prior period was due to an increase in accounts payable and a decrease in accounts receivable. Additionally higher interest income earned on our cash balance in 2008 also decreased cash used in operating activities from the prior year.

Operating Activities

Net cash used in operating activities was $2.9 million for the year ended December 31, 2007 compared to cash provided by operating activities of $170.9 million in 2006. The $173.8 million decrease in cash provided by operating activities in 2007 was primarily due to the receipt in 2006 of a $200 million upfront fee associated with our co-promotion agreement with AstraZeneca. This payment was recorded as deferred revenue and is being recognized over the period of the agreement. Excluding the $700 million in cash contributed to us, the increase in cash provided by operations was also offset by a net increase in working capital.

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Cash provided by operating activities was $170.9 million for the year ended 2006 compared to cash used in operating activities of $22.3 million for the year ended 2005. The $193.1 million increase in cash provided by operations for 2006 was due primarily to the receipt in 2006 of the $200.0 million up-front payment from AstraZeneca under the co-promotion agreement. These cash sources were partially offset by an increase in deferred income taxes as a result of the 2006 Merger.

Operating Activities

Net cash used in operating activities was $7.4 million for the nine months ended September 30, 2007 compared to cash provided by operating activities of $201.6 million for the same period in 2006. The $209.0 million

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decrease in cash provided by operating activities was primarily due to the receipt in 2006 of a $200 million upfront fee associated with our co-promotion agreement with AstraZeneca. This payment was deferred and is being recognized over the period of the agreement. Cash provided by operations was also reduced by cash used for working capital.

Operating Activities

Net cash used in operating activities was $19.0 million for the six months ended June 30, 2007 compared to cash provided by operating activities of $184.7 million for the same period in 2006. The $203.7 million decrease in cash provided by operating activities for the six months ended June 30, 2007 was primarily due to the receipt in 2006 of a $200 million upfront fee associated with our co-promotion agreement with AstraZeneca. This payment was deferred and is being recognized over the period of the agreement. The reduction in cash provided by operating activities was partially offset by an increase in working capital and stronger operating results in 2007 as compared to 2006.

Cash provided by operating activities was $170.9 million for the year ended 2006 compared to cash used in operating activities of $22.3 million for the year ended 2005. The $193.7 million increase in cash provided by operations for 2006 was due primarily to the receipt of the $200.0 million upfront payment from AstraZeneca under the co-promotion agreement. These cash sources were partially offset by an increase in deferred income taxes as a result of the 2006 Merger.

Net cash used in operating activities was $22.3 million and $88.7 million for 2005 and 2004, respectively. The $66.4 million increase in cash used by operations for 2005 was primarily due to the launch of our only product, Abraxane^®, during February 2005. Prior to February 2005, our operating cash flows primarily related to the development of Abraxane^®.