Abraxis BioScience (ABII)

Selling, General and Administrative

Selling, general and administrative expense for the year ended December 31, 2009 decreased $20.7 million to $200.7 million, or 55.9% of net revenue, from $221.4 million, or 64.1% of net revenue in 2008. The reacquisition of Abraxane^® marketing rights in the United States yielded savings due to the elimination of costs associated with the Co-Promotion Agreement. The decrease was partially offset by increased investments in the global expansion of Abraxane^® primarily in China and the European Union, and increased spending on U.S. sales and marketing.

Selling, general and administrative expense for year ended December 31, 2008 decreased $11.9 million to $221.4 million, or 64.1% of net revenue, from $233.3 million, or 69.9% of net revenue in 2007. The decrease was primarily the result of a legal charge taken in 2007, and overall lower domestic expenditures of marketing expenses including costs associated with the sharing provisions of the Co-Promotion Agreement. Partially offsetting the decrease in selling, general and administrative expense was increased international spending with the launch of Abraxane^®, additional administration costs associated with the 2007 Separation from APP Pharmaceutical, and expenses related to the preparation for the spin-off of Abraxis Health.

Selling, General and Administrative

Selling, general and administrative expense for the three months ended March 31, 2009 decreased $2.8 million to $42.5 million, or 58.6% of net revenue, from $45.3 million, or 55.1% of net revenue, for the same period in 2008. The reacquisition of Abraxane marketing rights in the U.S. yielded savings due to the elimination of costs associated with the co-promotion agreement. Partially offsetting this reduction was increased spending related to the international launch of Abraxane, increased spending on information systems infrastructure and an increase in sales and marketing costs.

Selling, General and Administrative

Selling, general and administrative expense for year ended December 31, 2008 decreased $13.2 million to $216.8 million, or 62.8% of net revenue, from $230.0 million, or 68.9% of net revenue in 2007. The decrease was primarily the result of a legal charge taken in 2007, and overall lower domestic expenditures of marketing expenses including costs associated with the sharing provisions of the Co-Promotion Agreement. Partially offsetting the decrease in selling, general and administrative expense was increased international spending with the launch of Abraxane, additional administration costs associated with the 2007 Separation from APP Pharmaceutical, and expenses related to the preparation for the spin-off of Abraxis Health.

Selling, general and administrative expense increased $110.6 million, or 92.6%, in 2007 to $230.0 million as compared to $119.5 million in 2006. As a percentage of net revenue, selling, general and administrative expenses in 2007 increased to 68.9% as compared to 65.5% in 2006. The increase was due primarily to increased legal-related expense, activities supporting the increase in Abraxane^® product sales, which includes costs for commission expense relating to the Co-Promotion Agreement, increased marketing activities relating to Abraxane^® and costs associated with increased market penetration of Abraxane^® in Canada. To a lesser extent, the increase was also impacted by increased stock compensation expense relating to the RSU plans assumed in connection with the 2006 Merger and professional fees. The increase in selling, general and administrative expense was partially offset by the cost sharing agreement provisions of the Co-Promotion Agreement.

Selling, General
and Administrative

Selling, general and administrative expense for year ended December 31, 2008 decreased $13.2 million to
$216.8 million, or 62.8% of net revenue, from $230.0 million, or 68.9% of net revenue in 2007. The decrease was primarily the result of a legal charge taken in 2007, and overall lower domestic expenditures of marketing expenses including costs
associated with the sharing provisions of the Co-Promotion Agreement. Partially offsetting the decrease in selling, general and administrative expense was increased international spending with the launch of Abraxane, additional administration costs
associated with the 2007 Separation from APP Pharmaceutical, and expenses related to the preparation for the spin-off of Abraxis Health.

Selling, General and Administrative

Selling, general and administrative expense for the nine months ended September 30, 2008 decreased $25.9 million to $152.0 million, or 60.0% of net revenue, from $177.9 million, or 73.3% of net revenue, for the same period in 2007. The decrease was due primarily to higher legal costs incurred in the second quarter of 2007, reduced shared marketing expenses under the co-promotion agreement and lower marketing expenses. The decrease in selling, general and administrative expense was partially offset by additional commission expense relating to the co-promotion agreement.

Selling, General and Administrative

Selling, general and administrative expense for the six months ended June 30, 2008 decreased $24.3 million to $98.0 million, or 61.3% of net revenue, from $122.2 million, or 78.8% of net revenue, for the same period in 2007. The decrease was due primarily to higher legal costs incurred in the second quarter of 2007, reduced shared marketing and other expenses under the co-promotion agreement associated with lower U.S. Abraxane sales and lower marketing expenses. The decrease in selling, general and administrative expense was partially offset by additional commission expense relating to the co-promotion agreement.

Selling, General and Administrative

Selling, general and administrative expense for the three months ended March 31, 2008 decreased $3.7 million to $45.3 million, or 55.1% of net revenue, from $49.0 million, or 68.2% of net revenue, for the same period in 2007. The decrease was due primarily to lower Abraxane marketing expenses and lower compensation costs. The decrease in selling, general and administrative expense was partially offset by higher legal and administrative costs related to the build-out of our administrative departments following the separation from Old Abraxis and additional commission expense relating to the co-promotion agreement with AstraZeneca

Selling, General and Administrative

Selling, general and administrative expense for year ended December 31, 2007 increased $110.6 million to $230.0 million, or 69% of net revenue, from $119.5 million, or 66% of net revenue in 2006. The increase was due primarily to increased legal-related expense, activities supporting the increase in Abraxane^® product sales, which includes costs for commission expense relating to the co-promotion agreement with AstraZeneca, increased marketing activities relating to Abraxane^® and costs associated with increased market penetration of Abraxane^® in Canada. To a lesser extent, the increase was also impacted by increased stock compensation expense relating to the RSU plans assumed in connection with the 2006 Merger and professional fees. The increase in selling, general and administrative expense was partially offset by the cost sharing agreement between us and AstraZeneca in the co-promotion agreement.

Selling, general and administrative expense increased $50.2 million, or 73%, in 2006 to $119.5 million as compared to $69.2 million in 2005. The increase was due primarily to additional Abraxane^® related expenses, including costs associated with increased marketing activities, additional Abraxane^® costs including commission expense relating to the co-promotion agreement with AstraZeneca and, to a lesser extent, costs associated with the launch of Abraxane^® in Canada, increased professional fees and stock compensation expense relating to the RSU plans assumed in connection with the 2006 Merger. The increase in SG&A expense was partially offset by the cost sharing arrangement in our co-promotion agreement with AstraZeneca. As a percentage of net revenue, SG&A expenses in 2006 increased to 66% as compared to 51% in 2005.

Selling, General and
Administrative

Selling, general and administrative expense for year ended
December 31, 2007 increased $110.6 million to $230.0 million, or 69% of net revenue, from $119.5 million, or 66% of net revenue in 2006. The increase was due primarily to increased legal-related expense, activities supporting the increase in
Abraxane^® product sales, which includes costs for commission expense relating to the co-promotion agreement with AstraZeneca, increased marketing activities relating to AbraxaneFACE="Times New Roman" SIZE="1">^® and costs associated with increased market penetration of Abraxane^® in Canada. To a lesser extent, the increase was also impacted by
increased stock compensation expense relating to the RSU plans assumed in connection with the 2006 Merger and professional fees. The increase in selling, general and administrative expense was partially offset by the cost sharing agreement between
us and AstraZeneca in the co-promotion agreement.

Selling, general and
administrative expense increased $50.2 million, or 73%, in 2006 to $119.5 million as compared to $69.2 million in 2005. The increase was due primarily to additional Abraxane^® related
expenses, including costs associated with increased marketing activities, additional Abraxane^® costs including commission expense relating to the co-promotion agreement with AstraZeneca
and, to a lesser extent, costs associated with the launch of Abraxane^® in Canada, increased professional fees and stock compensation expense relating to the RSU plans assumed in connection
with the 2006 Merger. The increase in SG&A expense was partially offset by the cost sharing arrangement in our co-promotion agreement with AstraZeneca. As a percentage of net revenue, SG&A expenses in 2006 increased to 66% as compared to 51%
in 2005.

Selling, General and Administrative

Selling, general and administrative expense for the nine months ended September 30, 2007 increased $96.9 million to $177.9 million, or 73.3% of net revenue, from $81.0 million, or 64.9% of net revenue, for the same period in 2006. The increase was due primarily to increased legal-related expense and activities supporting the increase in Abraxane^® product sales, which includes costs for commission expense relating to the co-promotion agreement with AstraZeneca, the recent expansion and marketing activities relating to Abraxane^® and the launch of Abraxane^® in Canada. To a lesser extent, the increase was also impacted by increased stock compensation expense relating to the RSU plans assumed in connection with the 2006 Merger and professional fees. The increase in selling, general and administrative expense was partially offset by the cost sharing agreement between us and AstraZeneca in the co-promotion agreement.

Selling, General and Administrative

Selling, general and administrative expense for the six months ended June 30, 2007 increased $80.4 million to $122.2 million, or 78.8% of net revenue, from $41.9 million, or 58.5% of net revenue, for the same period in 2006. The increase was due primarily to a $19.7 million reserve accrued with respect to a pending arbitration matter, additional commission expense relating to the co-promotion agreement with AstraZeneca, the recent expansion and marketing activities relating to Abraxane^® and to a lesser extent costs associated with increased stock compensation expense relating to the RSU plans assumed in connection with the 2006 Merger, the launch of Abraxane^® in Canada and professional fees. Pursuant to the indemnification provisions of the definitive agreements for the 2006 Merger, the former ABI shareholders will indemnify us for most of our obligations under the October 2007 settlement agreement and release, which covers the arbitration matter. The increase in selling, general and administrative expense was partially offset by the cost sharing agreement between us and AstraZeneca in the co-promotion agreement.