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This excerpt taken from the ABII 10-Q filed Aug 14, 2008. Sales Provisions Our sales provisions totaled $16.3 million and $14.3 million for the six months ended June 30, 2008 and 2007, respectively, and related reserves totaled $8.0 million and $7.9 million at June 30, 2008 and December 31, 2007, respectively. The increase in reserves relates primarily to contractual allowance reserves associated with increased sales of Abraxane®, as well as the timing of the related payments. This excerpt taken from the ABII 10-Q filed May 15, 2008. Sales Provisions Our sales provisions totaled $7.9 million and $5.1 million for the three months ended March 31, 2008 and 2007, respectively, and related reserves totaled $8.2 million and $7.9 million at March 31, 2008 and December 31, 2007, respectively. The increase in reserves relates primarily to contractual allowance reserves associated with increased sales of Abraxane®, as well as the timing of the related payments. These excerpts taken from the ABII 10-K filed Mar 31, 2008. Sales Provisions Our sales provisions totaled $30.5 million, $18.5 million and $26.5 million for the years ended December 31, 2007, 2006 and 2005, respectively, and related reserves totaled $7.9 million and $5.5 million at December 31, 2007 and 2006, respectively. The increase in reserves relates primarily to contractual allowance reserves associated with increased sales of Abraxane®, as well as the timing of the related payments. Sales Provisions ended December 31, 2007, 2006 and 2005, respectively, and related reserves totaled $7.9 million and $5.5 million at December 31, 2007 and 2006, respectively. The increase in reserves relates primarily to contractual allowance reserves associated with increased sales of Abraxane®, as well as the timing of the related payments. Following industry practice, we typically sell our product to independent be reduced to a lower end-user contract price, at the time of sale revenue is reduced by, and a provision recorded for, the difference between the list price and estimated end-user contract price. When the wholesaler ultimately sells the product to the end user at the end-user contract price, the wholesaler charges us, a chargeback, for the difference between the list price and the end-user contract price and such chargeback is offset against our initial estimated contra asset. The most significant estimates inherent in the initial chargeback provision relate to wholesale units pending chargeback and the ultimate end-user contract selling price. We base our estimation for these factors primarily on internal sales and chargeback processing experience, estimated wholesaler inventory stocking levels, current contract pricing and our expectation for future contract pricing changes. and 2006, respectively. Due to information constraints in the distribution channel, it has not been practical, and has not been necessary, for us to capture and quantify the impact of current versus prior year activity on the chargeback provision. Information constraints within the distribution channel primarily relate to our inability to track product through the channel on a unit or specific lot basis. In addition, for the most part, we do not receive information from our customers with respect to what level of their sales are subject to chargeback. The lack of information on a specific lot basis precludes us from tracking actual chargeback activity to the period of our initial sale. As a result, we rely on internal data, external IMS data and management estimates in order to estimate the amount of inventory in the channel subject to future chargeback. The amount of inventory in the channel is comprised of physical inventory at the distributor and that the distributor has yet to report as end user sales. Physical inventory in the channel is determined by the difference between our sales less end user sales as reported by IMS. As IMS data is reported approximately one month after end user sales, the last month of end user sales is determined by a mathematical trend incorporating IMS data for prior months. We estimate yet to be reported end user sales based on a historical average number of days to process charge back activities from the date of the end user sale. We also review current year chargeback activity to determine whether material changes in the provision relate to prior period sales; such changes have not been material to our statements of operations. As a proprietary product, Abraxane by $0.3 million and a one percent increase in wholesale units pending chargeback at December 31, 2007 would decrease total revenue in the year ended December 31, 2007 by less than $0.1 million.
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product dating. We provide for product returns and other customer credits at the time of sale by applying historical experience factors generally based on our historic data on credits issued by credit category or product, relative to related sales and we provide specifically for known outstanding returns and credits. Our reserve for customer credits and product returns totaled $0.4 million and $0.5 million at December 31, 2007 and 2006, respectively. At December 31, 2007, a one percent increase in the estimated reserve requirements for customer credits and product returns would have decreased net revenue for the year ended December 31, 2007 by $0.3 million. This excerpt taken from the ABII 10-Q filed Dec 20, 2007. Sales Provisions Our sales provisions totaled $22.7 million and $12.9 million for the nine months ended September 30, 2007 and 2006, respectively, and related reserves totaled $8.4 million and $3.7 million at September 30, 2007 and December 31, 2006, respectively. The increase in reserves relates primarily to chargeback reserves associated with increased sales of Abraxane®, as well as the timing of the related chargeback payments. This excerpt taken from the ABII 8-K filed Nov 8, 2007. Sales Provisions Our sales provisions totaled $14.3 million and $10.7 million for the six months ended June 30, 2007 and 2006, respectively, and related reserves totaled $6.6 million and $3.7 million at June 30, 2007 and December 31, 2006, respectively. The increase in reserves relates primarily to chargeback reserves associated with increased sales of Abraxane®, as well as the timing of the related chargeback payments. | EXCERPTS ON THIS PAGE:
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