This excerpt taken from the ABII 8-K filed Nov 8, 2007.
Selling, General and Administrative, or SG&A
SG&A expense increased $46.5 million, or 68%, in 2006 to $114.5 million as compared to $68.0 million in 2005. The increase was due primarily to additional Abraxane® related expenses, including costs associated with increased marketing activities, additional Abraxane® costs associated with the quarterly co-promotion payments due to 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 63% as compared to 50% in 2005.
SG&A expense in 2005 increased by $26.4 million, or 63% to $68.0 million as compared to $41.6 million for the prior year due primarily to direct Abraxane® sales and marketing costs following launch. The increase also included costs incurred relating to the 2006 Merger.