Abraxis BioScience (ABII)

Sources of Financing and Capital Requirements

Our primary source of liquidity has been cash from operations and the $700 million cash contribution we received in connection with our separation from APP Pharmaceuticals, Inc. in November 2007. In connection with the proposed spin-off of Abraxis Health, we plan to contribute a portion of our cash balance to Abraxis Health as well as provide a secured credit facility to Abraxis Health. We believe our cash and cash equivalents on hand, together with any cash generated from operations, will be sufficient to finance our operations and our obligations under the proposed secured credit facility for at least the next twelve months. In the event we engage in future acquisitions or significant capital projects or significantly reduce our available cash resources in connection with the proposed spin-off of Abraxis Health, we may have to raise additional capital through additional borrowings or the issuance of debt or equity securities.

On June 18, 2008, we filed a registration statement on Form S-3 with the Securities and Exchange Commission (SEC). On July 2, 2009, the SEC declared this registration statement effective. Under this registration statement, we may, from time to time, offer shares of our common stock and preferred stock, various series of debt securities or warrants or rights to purchase any such securities, either individually or in units, in one or more offerings, in amounts we will determine from time to time, up to a total of $400 million. In addition, certain stockholders may, from time to time, sell in one or more offerings up to a total of 2,000,000 shares of our common stock.

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Sources of Financing and Capital Requirements

We have historically funded our research and development activities through product license fees, including milestones, and borrowings, whereas our primary sources of liquidity have been cash flow from operations and funding from Old Abraxis with which we had inter-company transactions prior to the separation. We received a $700 million cash contribution in connection with our separation from APP Pharmaceuticals, Inc. in November 2007.

Sources of Financing and Capital Requirements

We have historically funded our research and development activities through product license fees, including milestones, and borrowings, whereas our primary sources of liquidity have been cash flow from operations and funding from Old Abraxis with which we had inter-company transactions prior to the separation. We received a $700 million cash contribution in connection with the separation and related transactions in November 2007.

Sources of Financing and Capital Requirements

We received a $700 million cash contribution from APP in connection with the separation. We are using this cash contribution primarily to establish our presence globally in connection with the worldwide commercialization of Abraxane^® , to support clinical trial activity to expand indications for Abraxane^® , to invest in research and development to commercialize our clinical and discovery pipelines and for potential strategic opportunities as well as for general corporate purposes, including working capital and capital expenditures. We generally purchase short-term, investment grade, interest-bearing securities for cash investments.

Prior to the separation, our primary sources of liquidity were cash flow from operations and funding from Old Abraxis with which we had inter-company transactions.

Sources of Financing and Capital Requirements

We have historically funded our research and development activities through product licenses fees, including milestones, and borrowings, whereas our primary sources of liquidity have been cash flow from operations and funding from Old Abraxis with which we had inter-company transactions prior to the separation.

We received a $700 million cash contribution from APP in connection with the separation. We are using this cash contribution primarily to establish our presence globally in connection with the worldwide commercialization of Abraxane^® , to support clinical trial activity to expand indications for Abraxane^® , to invest in research and development to commercialize our clinical and discovery pipelines and for potential strategic opportunities as well as for general corporate purposes, including working capital and capital expenditures. We generally purchase short-term, investment grade, interest-bearing securities for cash investments.

Sources of Financing and Capital Requirements

We have historically funded our research and development activities through product licenses fees, including milestones, and borrowings, whereas our primary sources of liquidity have been cash flow from operations and funding from Old Abraxis with which we had inter-company transactions prior to the separation.

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We received a $700 million cash contribution from APP in connection with the separation. We intend to use this cash contribution primarily to establish our presence globally in connection with the worldwide commercialization of Abraxane^® , to support clinical trial activity to expand indications for Abraxane^® , to invest in research and development to commercialize our clinical and discovery pipelines and for potential strategic opportunities as well as for general corporate purposes, including working capital and capital expenditures. Pending any specific use of the $700 million contributed to us, we generally intend to invest these funds in short-term, investment grade, interest-bearing securities.

Sources of Financing and Capital Requirements

We have historically funded our research and development activities through product licenses fees, including milestones, and borrowings, whereas our primary sources of liquidity have been cash flow from operations and funding from Old Abraxis with which we had inter-company transactions prior to the separation.

We received a $700 million cash contribution in connection with the separation and related transactions. We intend to use this cash contribution primarily to establish our presence globally in connection with the worldwide commercialization of Abraxane^®, to support clinical trial activity to expand indications for Abraxane^®, to invest in research and development to commercialize our clinical and discovery pipelines and for potential strategic opportunities as well as for general corporate purposes, including working capital and capital expenditures. Pending any specific use of the $700 million contributed to us, we generally intend to invest these funds in short-term, investment grade, interest-bearing securities.

Sources of Financing and Capital Requirements

We have historically funded our research and development activities through product licenses fees, including milestones, and borrowings, whereas our primary sources of liquidity have been cash flow from operations and funding from Abraxis BioScience with which we have inter-company transactions.

Approximately $715 million will be contributed to us in connection with the separation and related transactions. We intend to use this contribution primarily to establish our presence globally in connection with the worldwide commercialization of Abraxane^®, to support clinical trial activity to expand indications for Abraxane^®, to invest in research and development to commercialize our clinical and discovery pipelines and for potential strategic opportunities as well as for general corporate purposes, including working capital and capital expenditures. Pending any specific use of the approximately $715 million contribution to us, we generally intend to invest these funds in short-term, investment grade, interest-bearing securities.