Abraxis BioScience (ABII)

Sources and Uses of Cash

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.

Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain our manufacturing capabilities and infrastructure and to acquire various intellectual property rights.

Net cash used for the acquisition of property, plant and equipment for the three months ended March 31, 2009 totaled $19.0 million. The majority of this amount related to expenditures for the modernization of our Melrose Park, Illinois and Phoenix, Arizona manufacturing facilities. For the three months ended March 31, 2009, we had proceeds from the sale of marketable securities of $3.7 million. Additionally, in 2009, we received net proceeds of $2.0 million from the sale of our subsidiary in Barbengo, Switzerland.

Net cash used for acquisition of property, plant and equipment for the three months ended March 31, 2008 was $1.9 million. Additionally, we purchased $4.5 million in marketable securities and other investments during the first quarter of 2008.

Financing Activities

Net cash provided by financing activities for the three months ended March 31, 2009 represented cash received upon the exercise of stock options.

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Sources and Uses of Cash

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.

Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain our manufacturing capabilities and infrastructure and to acquire various intellectual property rights. Additionally, we purchased investments and marketable securities, which we classify as available-for-sale securities.

Net cash used for the acquisition of property, plant and equipment for the nine months ended September 30, 2008 totaled $22.6 million. The majority of this amount related to expenditures for the modernization of our Melrose Park, Illinois and Phoenix, Arizona manufacturing facilities. For the nine months ended September 30, 2008, we purchased $16.4 million in marketable securities and other investments. Additionally, in 2008, net cash paid for acquisition of $15.0 million relates to our acquisition of Shimoda Biotech and Platco Technologies.

Net cash used for acquisition of property, plant and equipment for the nine months ended September 30, 2007 was $35.5 million. This amount primarily related to the acquisition of our Puerto Rico facility. In addition, we paid $1.8 million for investments and marketable securities in 2007.

Financing Activities

Net cash provided by financing activities of $2.1 million for the nine months ended September 30, 2008 represented cash received upon the exercise of options. Net cash provided by financing activities for the nine months ended September 30, 2007 included $44.8 million in net transactions with parent company. For periods prior to November 13, 2007, net transactions with parent company were presented in lieu of stockholder’s equity as the assets and liabilities that comprised our company were a part of Old Abraxis.

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Sources and Uses of Cash

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.

Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain our manufacturing capabilities and infrastructure and to acquire various intellectual property rights. Additionally, we purchased investments and marketable securities, which we classify as available for sale securities.

Net cash used for the acquisition of property, plant and equipment for the six months ended June 30, 2008 totaled $13.2 million. The majority of this amount related to expenditures for the modernization of our Melrose Park, Illinois and Phoenix, Arizona manufacturing facilities. For the six months ended June 30, 2008, we purchased $9.4 million in marketable securities and other investments. Additionally, in 2008, net cash paid for acquisition of $15.0 million relates to our acquisition of Shimoda Biotech and Platco Technologies.

Net cash used for acquisition of property, plant and equipment for the six months ended June 30, 2007 was $16.4 million. This amount primarily related to the acquisition of our Puerto Rico facility. In addition, we paid $1.8 million for investments and marketable securities in 2007.

Financing Activities

Net cash provided by financing activities for the six months ended June 30, 2008 represented cash received upon the exercise of options. Net cash provided by financing activities for the six months ended June 30, 2007 included $37.1 million in net transactions with parent company. For periods prior to November 13, 2007, net transactions with parent company were presented in lieu of stockholder’s equity as the assets and liabilities that comprised our company were a part of Old Abraxis.

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Sources and Uses of Cash

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.

Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain our manufacturing capabilities and infrastructure and to acquire various intellectual property rights. Additionally, we purchase investments and marketable securities, which we intend to own long-term and are classified as available for sale securities.

Net cash used for the acquisition of property, plant and equipment for the three-month periods ended March 31, 2008 and 2007, totaled $1.9 million and $11.3 million, respectively. This decrease was primarily due to the acquisition of our Puerto Rico manufacturing facility in 2007. For the three months ended March 31, 2008, we purchased $4.5 million in marketable securities and other investments compared to $0.5 million for the same period in 2007.

Financing Activities

Net cash provided by financing activities for the three months ended March 31, 2008 represent cash received upon the exercise of options. Net cash provided in financing activities for the three months ended March 31, 2007 included $44.6 million in net transactions with parent company. For periods prior to November 13, 2007, net transactions with parent company were presented in lieu of stockholder’s equity as the assets and liabilities that comprised our company was a part of Old Abraxis.

Sources and Uses of Cash

FACE="Times New Roman" SIZE="2">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.

SIZE="2">Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain
our manufacturing capabilities and infrastructure and outlays necessary to acquire various intellectual property rights.

Net cash used for
the acquisition of product license rights and other non-current assets totaled $4.3 million, $14.8 million and $1.2 million for the years ended December 31, 2007, 2006 and 2005, respectively. The decrease from 2006 was because of the
purchase of an office building and land in Culver City, California in 2006.

Net cash used for the acquisition of property, plant and
equipment for the year ended December 31, 2007, 2006 and 2005 totaled $40.6 million, $64.4 million and $17.2 million, respectively. The 2007 additions included increased capital investment in our core manufacturing and development
capabilities in 2007, including our 90,000 square foot active pharmaceutical ingredients plant in Puerto Rico and our Phoenix, Arizona manufacturing facility. The 2006 additions primarily included the purchase of the corporate aircraft. Purchases of
property, plant and equipment in 2005 were primarily related to improvements in our manufacturing and development capabilities.

SIZE="2">Financing Activities

Net cash provided in financing activities was $752.1 million for the year ended
December 31, 2007 versus a use of cash of $94.4 million in 2006. Net cash provided by financing activities in 2007 related to net transactions with Old Abraxis prior to the separation, including the $700 million in cash that was contributed to
us. Net cash used in financing activities was $94.4 million in 2006, which represented a net $190.0 million repayment of debt under our credit facility in connection with the 2006 Merger, partially offset by $96.5 million provided by net
transactions with Old Abraxis. Net cash provided in 2005 of $40.7 million was driven by $147.3 in net proceeds under our credit facilities, partially offset by $106.1 million of cash used in net transactions with Old Abraxis.

Sources and Uses of Cash

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.

Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain our manufacturing capabilities and infrastructure and outlays necessary to acquire various intellectual property rights.

Net cash used for the acquisition of product license rights and other non-current assets totaled $1.8 million and $2.1 million for the nine-month periods ending September 30, 2007 and 2006, respectively. Net cash used for the acquisition of property, plant and equipment for the nine-month periods ending September 30, 2007 and 2006 totaled $35.5 million and $74.0 million, respectively. The decrease from 2006 was due primarily to the purchase of a corporate aircraft in 2006, which was offset by increased capital investment in our core manufacturing and development capabilities in 2007.

Financing Activities

Financing activities generally included borrowings under our credit facilities, and net transactions with Abraxis BioScience.

Net cash provided in financing activities was $44.8 million versus a use of cash of $128.5 million for the nine-months ended September 30, 2007 and 2006, respectively. The nine months ended September 30, 2006 included $190.0 million of repayments from borrowings under our credit facility.

Sources and Uses of Cash

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^®.

Investing Activities

Our investing activities have included capital expenditures necessary to expand and maintain our manufacturing capabilities and infrastructure and outlays necessary to acquire various or intellectual property rights.

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Net cash used for the acquisition of product license rights and other non-current assets totaled $1.8 million, and $2.7 million for the six-month periods ending June 30, 2007 and 2006, respectively. Net cash used for the acquisition of property, plant and equipment for the six-month periods ending June 30, 2007 and 2006, totaled $16.4 million and $23.4 million, respectively.

Net cash used for the acquisition of product license rights and other non-current assets totaled $14.8 million, $1.2 million and $3.3 million for the years ended December 31, 2006, 2005 and 2004, respectively. The increase in 2006 resulted from the purchase of an office building and land in Culver City, California.

Net cash used for the acquisition of property, plant and equipment totaled $64.4 million, $17.2 million and $26.0 million for the years ended December 31, 2006, 2005 and 2004, respectively. The increase in 2006 was due primarily to the purchase of a corporate aircraft and increased capital investment in our core manufacturing and development capabilities. Purchases of property, plant and equipment in 2005 and 2004 were primarily related to improvements in our manufacturing and development capabilities.

Financing Activities

Financing activities generally included borrowings under our credit facilities, and net transactions with Abraxis BioScience.

Net cash provided in financing activities was $37.1 million versus a use of cash of $161.4 million for the six-month periods ending June 30, 2007 and 2006, respectively. The six-month period in 2006 included $190.0 million of repayments from borrowings under our credit facility.

Net cash used in financing activities was $94.4 million in 2006, which represented a net $190.0 million repayment of debt under our credit facility in connection with the 2006 Merger, partially offset by $127.3 million provided by net transactions with Abraxis BioScience. Net cash provided in 2005 of $40.7 million was driven by $147.3 in net proceeds under our credit facilities, partially offset by $101.5 million of cash used in net transactions with Abraxis BioScience.

Net cash provided by financing activities in 2004 totaled $119.5 million, which included $109.1 million provided by net transactions with Abraxis BioScience, $7.9 million in net proceeds under our credit facility, and the $4.0 million mortgage repayment on our Elk Grove Village, Illinois facility.