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Abraxis BioScience Reports Record Revenue of $765 Million in 2006 Versus $521 Million for 2005

Fourth Quarter 2006 Revenue Totals a Record $257 Million versus $146 Million in the Prior Year Period

Fourth Quarter Adjusted Earnings Per Share Increases to $0.29 versus $0.09 in the Prior Year Period; GAAP Earnings Per Share for the Fourth Quarter Increases to $0.18 versus $0.02 in the Prior Year Period

LOS ANGELES--(BUSINESS WIRE)--Feb. 26, 2007--Abraxis BioScience, Inc. (NASDAQ:ABBI), an integrated, global biopharmaceutical company, today reported financial results for the full year and fourth quarter ended December 31, 2006.

Total revenue increased 47 percent in 2006 to a record $765.5 million from $520.8 in 2005. Revenue for company-wide, hospital-based products reached a record $584.4 million in 2006, a 52 percent increase from the prior year. Annual 2006 ABRAXANE(R) (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) revenue increased to $174.9 million versus $133.7 million in 2005. Fourth quarter total revenue increased to $257.1 million from $145.6 million in the same period of 2005.

The company posted adjusted net income per diluted share, which excludes merger-related items and non-cash stock compensation expense, as follows:

                       Q4 2006  Q4 2005  Full Year 2006 Full Year 2005
--------------------- --------- -------- -------------- --------------
Adjusted Net Income
      (millions)         $46.7    $14.8         $121.7          $59.4
--------------------- --------- -------- -------------- --------------
  Per diluted share      $0.29    $0.09          $0.77          $0.37
--------------------- --------- -------- -------------- --------------

On a reported basis and calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the company reported net income as follows:

                       Q4 2006  Q4 2005  Full Year 2006 Full Year 2005
---------------------- -------- -------- -------------- --------------
 Net Income / (Loss)
      (millions)         $28.4     $2.6         $(46.9)         $17.7
---------------------- -------- -------- -------------- --------------
  Per diluted share      $0.18    $0.02         $(0.30)         $0.11
---------------------- -------- -------- -------------- --------------

The attached table provides additional information regarding the basis for the adjusted net income per diluted share calculation and the rationale for providing such information may be found toward the end of this document.

"Last year was a very important year for Abraxis," said Patrick Soon-Shiong, M.D., chairman and chief executive officer of Abraxis BioScience. "In addition to achieving our highest revenues to date, we made strategic acquisitions that enhanced our product offerings and manufacturing capabilities; defined our divisions enabling each to capitalize on strategic opportunities and operate more efficiently; and, continued to drive sales of ABRAXANE while advancing our clinical programs. As we explore additional partnerships and other strategic opportunities, we believe 2007 will prove to be another important year in the evolution of Abraxis."

Segment Reporting

Abraxis BioScience is comprised of Abraxis Pharmaceutical Products, Abraxis Oncology and Abraxis Research. Beginning in the fourth quarter of 2006, the company re-aligned its segment presentation to better reflect how the business is managed. Abraxis intends to continue to report its business in two segments: Abraxis BioScience (ABI), representing the combined operations of Abraxis Oncology and Abraxis Research; and Abraxis Pharmaceutical Products (APP), representing the hospital-based operations. ABI focuses primarily on the company's internally developed proprietary products including ABRAXANE and its proprietary pipeline. APP manufactures and markets one of the broadest portfolio of injectable drugs including oncology, critical care, and anti-infectives. The attached tables provide additional detail on segment reporting.

ABI Segment

ABRAXANE revenue for the full year increased 31 percent to $174.9 million, which includes $156.7 million of net sales, versus revenue of $133.7 million in 2005. Fourth quarter 2006 ABRAXANE revenue was $56.1 million, which includes $9.1 million in deferred revenue related to the AstraZeneca co-promotion agreement in the United States. ABRAXANE net sales in the fourth quarter of 2005 were $47.4 million.

ABRAXANE continues to show a positive trend in market penetration for metastatic breast cancer. NDC data for January 2007 reports that ABRAXANE demand sales have increased 33 percent in units versus January 2006. According to IMS, ABRAXANE experienced a 52 percent unit volume increase for the period of February 2006 to December 2006 versus the same period in the prior year. This compares favorably to Taxotere(R) and Taxol(R) with growth rates for that same period of -2 percent and +9 percent, respectively.

In the second line and second line plus metastatic breast cancer settings, market share for ABRAXANE was 28 percent and 43 percent, respectively. In these settings, ABRAXANE market share continues its positive trend and is taking market share from Taxotere(R) and Taxol.

In January 2007, ABRAXANE received compendia listing for first-line use of ABRAXANE in metastatic breast cancer.

Full-year selling and marketing expenses increased to $80.0 million, or 44 percent of revenue, versus $52.8 million, or 39 percent of revenue in 2005. In the fourth quarter of 2006, selling and marketing expenses were $21.5 million versus $14.4 million in the prior-year period. The increase primarily reflects the ABRAXANE commission expense relating to the co-promotion agreement with AstraZeneca and the recent expansion and activities of Abraxis Oncology.

ABI segment gross margin for the full year 2006 and fourth quarter was 85 percent and 86 percent, respectively, including the recognition of deferred revenue under the AstraZeneca co-promotion agreement.

Research and Development (R&D) expense totaled $57.3 million for 2006 compared with $49.0 million in 2005. The increase was primarily due to the further development of ABRAXANE and other proprietary products in the pipeline.

APP Segment

Hospital-based product revenue for the APP segment increased 51 percent to $583.2 million, including $103.7 million from the acquired AstraZeneca products, versus $385.1 million in 2005. Fourth quarter revenue increased 105 percent to $199.7 million versus $97.4 million in the fourth quarter of 2005. Sales of the hospital-based business grew 33 percent in the fourth quarter 2006 versus the third quarter of 2006.

Full-year selling and marketing expenses increased to $13.8 million, or 2 percent of revenue, versus $12.0 million, or 3 percent of revenue in 2005. In the fourth quarter of 2006, selling and marketing expenses were $3.9 million versus $3.5 million in the prior-year period.

In the fourth quarter, the company received approval from the U.S. Food and Drug Administration for its Abbreviated New Drug Application (ANDA) for the combination drug Ampicillin and Sulbactam for Injection, 15g, USP, the generic equivalent of Pfizer Inc.'s Unasyn. Also in the fourth quarter, Abraxis launched Ondansetron Injection, USP, the generic equivalent of GlaxoSmithKline's Zofran(R) Injection.

As announced in February, Abraxis closed on the acquisition of the Puerto Rico manufacturing facility from Pfizer and expects to begin commercial manufacturing from this site in the first half of 2007. The net purchase price for this facility was $32.5 million.

APP remained a market leader with 10 ANDA approvals in 2006. From 2001 to 2006, APP led the market with 55 approvals. Including the 31 ANDAs pending with the FDA, representing over $2.0 billion in annual branded sales, APP currently has over 60 product candidates in various stages of development.

Gross margin for the full year 2006 and fourth quarter was 56 percent and 58 percent, respectively, excluding product rights amortization associated with the AstraZeneca product purchase, reflecting strong margins on sales of new products.

R&D expenses totaled $28.2 million for 2006 compared with $18.9 million in 2005. The increase was primarily due to expense associated with the transfer of products to the recently acquired Puerto Rico facility.

General and Administrative Expenses

Company-wide, full-year general and administrative (G&A) expenses, excluding selling and marketing expenses, increased to $93.0 million, or 12 percent of revenue, versus $66.4 million, or 13 percent of revenue in 2005. In the fourth quarter of 2006, G&A expenses were $34.6 million versus $21.6 million in the prior-year period. These increases are primarily due to increased compensation expense and professional fees related to the merger.

Clinical Development Update

Investigational New Drug (IND) applications were filed with the FDA for nab-docetaxel (ABI 008) and the mTOR inhibitor nab-rapamycin (ABI 009) in the fourth quarter of 2006.

In December 2006, data was presented at the 29th Annual San Antonio Breast Cancer Symposium (SABCS) from an interim analysis of a randomized, head-to-head Phase II trial of ABRAXANE versus Taxotere(R) (docetaxel) Injection Concentrate, in the first-line treatment of metastatic breast cancer. The interim analysis showed that first-line treatment with weekly ABRAXANE (100 and 150 mg/m2) increased tumor response rate by greater than 60 percent with less toxicity versus Taxotere (100 mg/m2) given every three weeks in patients with metastatic breast cancer. Although the data are not fully mature, the interim analysis showed that the ABRAXANE regimens currently have longer progression-free survivals than Taxotere dosed every three weeks. The company currently plans to present the final analysis of the data to the American Society of Clinical Oncology (ASCO) in 2007.

In January 2007, the Therapeutic Goods Administration (TGA) in Australia accepted for review the company's marketing application for ABRAXANE for the treatment of metastatic breast cancer. This represented the second global regulatory filing for ABRAXANE to be accepted for review in a four-month period. A marketing authorization application also is currently under review with the European Medicines Agency (EMEA) for use of ABRAXANE in the treatment of breast cancer.

The company continues to study the use of ABRAXANE in a variety of oncology settings and currently intends to focus its Phase III trials in first-line metastatic breast cancer, first-line non-small cell lung cancer (NSCLC) and melanoma by developing three Phase III superiority trials using weekly dosing schedules of ABRAXANE. Abraxis plans to initiate the worldwide head-to-head Phase III registration trial in the first half of 2007 comparing weekly ABRAXANE to every three week Taxotere for the treatment of first-line metastatic breast cancer. Special Protocol Assessments (SPA) for the design of these Phase III trials were submitted to the FDA in the first quarter of 2007. Initiation of the Phase III trials for NSCLC and melanoma are planned for the second half of 2007.

2007 Financial Guidance

For the full year of 2007, Abraxis is providing the following financial guidance estimates, which excludes effects of stock compensation:

  • APP segment hospital-based product net sales increase mid-teens from prior year with gross margins between 48 percent and 52 percent, excluding product rights amortization associated with the AstraZeneca product purchase;
  • ABRAXANE net sales between $285 million and $305 million;
  • Company-wide R&D expenses between $100 million and $110 million; and
  • Company-wide Selling, General and Administrative expenses, excluding ABRAXANE commissions, between $195 million and $205 million.
Conference Call Information

On Monday, February 26, 2007, the company will host a conference call with interested parties beginning at 8:30 a.m. PST/11:30 a.m. EST to review its results of operations for the full year and fourth quarter of 2006. The conference call may be heard by interested parties through a live audio Internet broadcast at www.abraxisbio.com and www.earnings.com. For those unable to listen to the live broadcast, a playback of the webcast will be available at both websites for approximately six months beginning shortly after the conclusion of the call.

Non-GAAP Financial Measures

Adjusted net income per diluted share is a non-GAAP financial measure comprised of reported diluted earnings per share excluding the impact of merger-related purchase accounting, other direct merger and transaction-related costs, non-cash stock compensation expense, minority interests, non-cash amortization of acquired intangible assets. The company believes that its presentation of non-GAAP financial measures provides useful supplementary information to investors in understanding the underlying operating performance of the company and facilitates additional analysis by investors. The company also uses non-GAAP financial measures internally for operating, budgeting and financial planning purposes. The non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance calculated in accordance with GAAP. A reconciliation of GAAP net income to adjusted net income for each of the three- and twelve-month periods ending December 31, 2006 and December 31, 2005 is included with this press release.

About ABRAXANE

The U.S. Food and Drug Administration approved ABRAXANE(R) for Injectable Suspension (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) in January 2005 for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease or relapse within six months of adjuvant chemotherapy. Prior therapy should have included an anthracycline unless clinically contraindicated. For the full prescribing information for ABRAXANE(R) please visit www.abraxane.com.

About Abraxis BioScience, Inc.

Abraxis BioScience, Inc. is an integrated global biopharmaceutical company dedicated to meeting the needs of critically ill patients. The company develops, manufactures and markets one of the broadest portfolios of injectable products and leverages revolutionary technology such as its nab(TM) platform to discover and deliver breakthrough therapeutics that transform the treatment of cancer and other life-threatening diseases. The first FDA approved product to use this nab platform, ABRAXANE(R), was launched in 2005 for the treatment of metastatic breast cancer. Abraxis trades on the NASDAQ Global Market under the symbol ABBI. For more information about the company and its products, please visit www.abraxisbio.com.

FORWARD-LOOKING STATEMENTS

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include statements regarding our expectations, beliefs, hopes, goals, intentions, initiatives or strategies, including statements regarding anticipated ABRAXANE revenue and sales, the clinical development plan for ABRAXANE and product candidates, financial guidance for 2007 and the timing of commercial manufacturing at the Puerto Rico facility. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, decision by regulatory authorities regarding whether and when to approve ABRAXANE or product candidates for various indications as well their decisions regarding labeling and other matters that could affect the availability or commercial potential of ABRAXANE and other products and product candidates, unexpected safety, efficacy or manufacturing issues with respect to ABRAXANE, other products or product candidates, the need for additional data or clinical studies for ABRAXANE or product candidates, regulatory developments (domestic or foreign) involving the company's manufacturing facilities, the market adoption and demand of ABRAXANE and other products, the costs associated with the ongoing launch of ABRAXANE, research and development associated with the nab technology platform, the impact of pharmaceutical industry regulation, the impact of competitive products and pricing, the availability and pricing of ingredients used in the manufacture of pharmaceutical products, the ability to successfully manufacture products in a time-sensitive and cost effective manner, the acceptance and demand of new pharmaceutical products and the impact of patents and other proprietary rights held by competitors and other third parties. Additional relevant information concerning risks can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2005 and in other documents it has filed with the Securities and Exchange Commission.

The information contained in this press release is as of the date of this release. Abraxis assumes no obligations to update any forward-looking statements contained in this press release as the result of new information or future events or developments.

Taxol(R) is a registered trademark of Bristol-Myers Squibb Company.

Taxotere(R) is a registered trademark of Sanofi-Aventis.

Unasyn(R) is a registered trademark of Pfizer Inc.

Zofran(R) is a registered trademark of GlaxoSmithKline.

                       Abraxis BioScience, Inc.
                 Consolidated Statements of Operation
         (unaudited, in thousands, except per share amounts)

                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ---------------------------------------
                                 2006     2005       2006      2005
                               --------- --------  --------- ---------
Hospital-based products
  Anti-infective                $56,199  $40,681   $213,489  $169,818
  Critical care                 123,859   44,481    303,485   163,581
  Oncology                       17,051   12,212     57,983    51,084
  Contract manufacturing          3,061        1      9,485       599
                               --------- --------  --------- ---------
Total hospital-based products   200,170   97,375    584,442   385,082
  Abraxane revenue               56,143   47,454    174,906   133,731
  Research revenue and other        764      774      6,140     1,944
                               --------- --------  --------- ---------
Net revenue                     257,077  145,603    765,488   520,757
Cost of sales                    96,342   60,068    307,512   227,235
                               --------- --------  --------- ---------
Gross profit                    160,735   85,535    457,976   293,522
                               --------- --------  --------- ---------
      Percent to total revenue     62.5%    58.7%      59.8%     56.4%

Operating Expenses
  Research and development       24,593   18,711     96,891    68,896
  Selling, general and
   administrative                60,044   39,440    186,789   131,237
  Amortization of merger
   related intangibles           13,509        -     38,275         -
  Merger-related in-process
   research and development
   charge                             -        -    105,777         -
  Other merger related costs      2,960    1,919     29,335     7,863
  Equity (income) loss in Drug
   Source Company                  (822)       6     (2,847)   (1,802)
                               --------- --------  --------- ---------
    Total operating expenses    100,284   60,076    454,220   206,194
                               --------- --------  --------- ---------
      Percent to total revenue     39.0%    41.3%      59.3%     39.6%
Income from operations           60,451   25,459      3,756    87,328
      Percent to total revenue     23.5%    17.5%       0.5%     16.8%
Interest expense                 (4,101)  (3,218)   (13,927)   (6,563)
Interest income and other           484       51      3,956       756
Minority interests                    -   (7,083)   (11,383)  (25,875)
                               --------- --------  --------- ---------
Income (loss) before income
 taxes                           56,834   15,209    (17,598)   55,646
Income tax expense               28,385   12,568     29,299    37,989
                               --------- --------  --------- ---------

Net income (loss)               $28,449   $2,641   $(46,897)  $17,657
                               ========= ========  ========= =========

Net income (loss) per common
 share:
  Basic                           $0.18    $0.02     $(0.30)    $0.11
                               ========= ========  ========= =========
  Diluted                         $0.18    $0.02     $(0.30)    $0.11
                               ========= ========  ========= =========

Weighted - average common
  shares outstanding:
  Basic                         159,198  158,269    158,937   157,694
                               ========= ========  ========= =========
  Diluted                       160,169  159,845    158,937   159,742
                               ========= ========  ========= =========
                                      .
The composition of stock-based
 compensation included above
 is as follows:
  Cost of sales                    $168   $1,575     $2,668    $4,376
  Research and development        2,438      335      5,767       930
  Selling, general and
   administrative                 6,322    3,998     15,473    11,103
  Other merger related stock
   compensation                   2,116        -     11,115         -
                               --------- --------  --------- ---------
Total stock based compensation  $11,044   $5,908    $35,023   $16,409
                               ========= ========  ========= =========
                       Abraxis BioScience, Inc.
              GAAP to Adjusted Net Income Reconciliation
         (unaudited, in thousands, except per share amounts)

Adjusted Net Income and Adjusted Net Income per Diluted Share are
 defined as reported net income and reported diluted earnings per
 share excluding the impact of merger-related purchase accounting,
 other direct merger and transaction-related costs, non-cash stock
 compensation expense, minority interests, non-cash amortization of
 acquired intangible assets and other significant non-operating items.
  We believe that our presentation of non-GAAP measures provides
 useful supplementary information to investors in understanding our
 underlying operating performance and facilitates additional analysis
 by investors.  We also use non-GAAP financial measures internally for
 operating, budgeting and financial planning purposes.  The non-GAAP
 financial measures are in addition to, and not a substitute for or
 superior to, measures of financial performance calculated in
 accordance with GAAP.  A reconciliation of GAAP net income to
 adjusted net income for each of the three month periods ending
 December 31, 2006 and 2005 and for the years ended December 31, 2006
 and 2005 are as follows:

                                Three months ended      Year ended
                                   December 31,        December 31,
                                --------------------------------------
                                  2006     2005       2006     2005
                                --------- --------  --------- --------

Reported net income (loss)       $28,449   $2,641   $(46,897) $17,657
 Merger related items
  In-process research and
   development charge                  -        -    105,777        -
  Sale of inventory written up
   to fair-market value                -        -      7,706        -
  Intangible amortization          8,342        -     23,635        -
  Stock compensation charge        1,307        -      6,864        -
  Merger and transaction
   expense                           521    1,258     11,251    5,156
                                --------- --------  --------- --------
 Total merger related costs       10,170    1,258    155,233    5,156
 Stock compensation (SFAS 123R)    5,513    3,841     14,763   10,666
 Minority interests                    -    7,083     11,383   25,875
 Amortization of purchased
  product rights                   2,537        -      5,075        -
 Merger related income tax
  benefit                              -        -    (17,884)       -
                                --------- --------  --------- --------
Adjusted net income              $46,669  $14,823   $121,672  $59,354
                                ========= ========  ========= ========

Adjusted net income per diluted
 share                             $0.29    $0.09      $0.77    $0.37
                                ========= ========  ========= ========

Weighted - average common
  shares outstanding diluted     160,169  159,845    158,937  159,742
                                ========= ========  ========= ========

Reported net income (loss)         $0.18    $0.02     $(0.30)   $0.11
 Merger related items
  In-process research and
   development charge                  -        -       0.67        -
  Sale of inventory written up
   to fair-market value                -        -       0.05        -
  Intangible amortization           0.05        -       0.15        -
  Stock compensation charge         0.01        -       0.04        -
  Merger and transaction
   expense                          0.00     0.01       0.07     0.03
                                --------- --------  --------- --------
 Total merger related costs         0.06     0.01       0.98     0.03
 Stock compensation (SFAS 123R)     0.03     0.02       0.09     0.07
 Minority interests                    -     0.04       0.07     0.16
 Amortization of purchased
  product rights                    0.02        -       0.03        -
 Merger related income tax
  benefit                              -        -      (0.11)       -
                                --------- --------  --------- --------
Adjusted net income                $0.29    $0.09      $0.77    $0.37
                                ========= ========  ========= ========
                       Abraxis BioScience, Inc.
            GAAP to Adjusted Pre-tax Income Reconciliation
         (unaudited, in thousands, except per share amounts)

                               Three months ended      Year ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006     2005       2006      2005
                               --------- --------  --------- ---------

Reported pretax income (loss)   $56,834  $15,209   $(17,598)  $55,646
 Merger related items --
  pretax
  In-process research and
   development charge                 -        -    105,777         -
  Sale of inventory written up
   to fair-market value               -        -     12,480         -
  Intangible amortization        13,509        -     38,275         -
  Stock compensation charge       2,116        -     11,115         -
  Merger and transaction
   expense                          844    1,919     18,220     7,863
                               --------- --------  --------- ---------
 Total merger related costs --
  pretax                         16,469    1,919    185,867     7,863
 Stock compensation (SFAS
  123R)                           8,928    5,909     23,908    16,409
 Minority interests                   -    7,083     11,383    25,875
  Amortization of purchased
   product rights                 4,109        -      8,218         -
                               --------- --------  --------- ---------
Adjusted pretax income          $86,340  $30,120   $211,778  $105,793
                               ========= ========  ========= =========
                       Abraxis BioScience, Inc.
      Consolidated Statements of Operating Highlights By Segment
            Three months ended December 31, 2006 and 2005
                      (unaudited, in thousands)

Abraxis BioScience is comprised of Abraxis Pharmaceutical Products,
 Abraxis Oncology and Abraxis Research.  Beginning in the fourth
 quarter of 2006, the Company re-aligned its segment presentation to
 better reflect how the business is managed.  Abraxis intends to
 continue to report its business in two segments: Abraxis BioScience
 (ABI) representing the combined operations of Abraxis Oncology and
 Abraxis Research; and Abraxis Pharmaceutical Products (APP),
 representing the hospital-based operations.  ABI focuses primarily on
 the Company's internally developed proprietary products including
 Abraxane.  APP manufactures and markets one of the broadest portfolio
 of injectable drugs including oncology, critical care, and anti-
 infectives.  Prior year's segment information are recalssified to
 conform with the current year presentation.  Information regarding
 these two segments is summarized below.

                                  Segment
                             ------------------
                                APP      ABI     Unallocated   Total
                                                   Costs(1)
                             --------- --------  ---------------------
Three months ended December
 31, 2006
Hospital-based products      $199,706     $464           $-  $200,170
Abraxane revenue                    -   56,143            -    56,143
Research revenue and other          -      764            -       764
                             --------- --------  ----------- ---------
Net revenue                   199,706   57,371            -   257,077
  Cost of sales                83,973    8,091        4,278    96,342
                             --------- --------  ----------- ---------
Gross profit                  115,733   49,280       (4,278)  160,735
    Percent to total revenue     58.0%    85.9%                  62.5%
Operating Expenses:
  Research and development     10,075   12,080        2,438    24,593
  Selling and marketing (2)     3,895   21,524            -    25,419
  Equity (income) in Drug
   Source Company                   -     (822)           -      (822)
                             --------- --------  ----------- ---------
    Total operating expenses   13,970   32,782        2,438    49,190
                             --------- --------  ----------- ---------
Pre-tax segment operating
 income (3)                  $101,763  $16,498      $(6,716) $111,545
                             ========= ========  =========== =========
    Percent to total revenue     51.0%    28.8%                  43.4%

Depreciation and
 amortization                   8,267      593        1,141    10,001
Capital expenditures            9,863    1,302            -    11,165

Three months ended December
 31, 2005
Hospital-based products       $97,375       $-           $-   $97,375
Abraxane revenue                    -   47,454            -    47,454
Research revenue                    -      774            -       774
                             --------- --------  ----------- ---------
Net revenue                    97,375   48,228            -   145,603
  Cost of sales                50,832    7,661        1,575    60,068
                             --------- --------  ----------- ---------
Gross profit                   46,543   40,567       (1,575)   85,535
    Percent to total revenue     47.8%    84.1%                  58.7%
Operating Expenses:
  Research and development      4,901   13,475          335    18,711
  Selling and marketing         3,463   14,427            -    17,890
  Equity (income) loss in
   Drug Source Company              -        6            -         6
                             --------- --------  ----------- ---------
    Total operating expenses    8,364   27,908          335    36,607
                             --------- --------  ----------- ---------
Pre-tax segment operating
 income (3)                   $38,179  $12,659      $(1,910)  $48,928
                             ========= ========  =========== =========
    Percent to total revenue     39.2%    26.2%                  33.6%

Depreciation and
 amortization                   3,336      425          171     3,932
Capital expenditures            9,275        -            -     9,275
                       Abraxis BioScience, Inc.
Consolidated Statements of Operating Highlights By Segment (continued)
                Year ended December 31, 2006 and 2005
                      (unaudited, in thousands)

                                  Segment
                             ------------------
                                APP      ABI     Unallocated   Total
                                                   Costs(1)
                             --------- --------  ---------------------
Year ended December 31, 2006
Hospital-based products      $583,201   $1,241           $-  $584,442
Abraxane revenue                    -  174,906            -   174,906
Research revenue and other          -    6,140            -     6,140
                             --------- --------  ----------- ---------
Net revenue                   583,201  182,287            -   765,488
  Cost of sales               257,159   26,984       23,369   307,512
                             --------- --------  ----------- ---------
Gross profit                  326,042  155,303      (23,369)  457,976
    Percent to total revenue     55.9%    85.2%                  59.8%
Operating Expenses:
  Research and development     28,233   57,316       11,342    96,891
  Selling and marketing (2)    13,769   80,015            -    93,784
  Equity (income) in Drug
   Source Company                   -   (2,847)           -    (2,847)
                             --------- --------  ----------- ---------
    Total operating expenses   42,002  134,484       11,342   187,828
                             --------- --------  ----------- ---------
Pre-tax segment operating
 income (3)                  $284,040  $20,819     $(34,711) $270,148
                             ========= ========  =========== =========
    Percent to total revenue     48.7%    11.4%                  35.3%

Depreciation and
 amortization                  23,451    2,129        3,256    28,836
Capital expenditures           29,922   67,895            -    97,817

Year ended December 31, 2005
Hospital-based products      $385,082       $-           $-  $385,082
Abraxane revenue                    -  133,731            -   133,731
Research revenue and other          -    1,944            -     1,944
                             --------- --------  ----------- ---------
Net revenue                   385,082  135,675            -   520,757
  Cost of sales               201,026   21,833        4,376   227,235
                             --------- --------  ----------- ---------
Gross profit                  184,056  113,842       (4,376)  293,522
    Percent to total revenue     47.8%    83.9%                  56.4%
Operating Expenses:
  Research and development     18,925   49,041          930    68,896
  Selling and marketing        12,033   52,766            -    64,799
  Equity (income) in Drug
   Source Company                   -   (1,802)           -    (1,802)
                             --------- --------  ----------- ---------
    Total operating expenses   30,958  100,005          930   131,893
                             --------- --------  ----------- ---------
Pre-tax segment operating
 income (3)                  $153,098  $13,837      $(5,306) $161,629
                             ========= ========  =========== =========
    Percent to total revenue     39.8%    10.2%                  31.0%

Depreciation and
 amortization                  12,777    1,447        1,149    15,373
Capital expenditures           47,647    1,085            -    48,732

(1) Segment costs not allocated for the three months ended December
 31, 2006 includes $4.1 million for the amortization of APP
 AstraZeneca purchase price and $0.2 million stock compensaton, both
 included in cost of sales and $2.4 million stock compensation
 included in research and development. For the three months ended
 December 31, 2005, $1.6 million in stock compensation was not
 allocated in cost of sales. Segment costs not allocated for the year
 ended December 31, 2006 includes $12.5 million merger costs, $8.2
 million APP AstraZeneca purchase price amortization and $2.7 million
 stock compensation included in cost of sales and $5.3 million merger
 costs and $5.8 million stock compensation included in research and
 development. For the year ended December 31, 2005, $4.4 million stock
 compensation was not allocated in cost of sales and $0.9 million
 stock compensation was not allocated to research and development.
 Additionally, depreciation and amortization expense related to
 corporate activities are not allocated to the segments.
(2) ABI segment selling and marketing expense in the fourth quarter of
 2006 benefited from the reversal of accruals established in the
 second and third quarters for $3.0 million and $0.8 million,
 respectively. These reversals should have occurred in the third
 quarter.
(3) General and administrative expense, merger related costs and
 amortization, interest income, interest expense and other, minority
 interest and income tax expense are not allocated to segments. See
 "Reconciliation of Operating Income By Segment to Condensed
 Consolidated Statements of Operation" included herein.
                       Abraxis BioScience, Inc.
    Reconciliation of Operating Income by Segment to Consolidated
                       Statements of Operations
                      (unaudited, in thousands)

                               Three months ended      Year ended
                                  December 31,        December 31,
                               ---------------------------------------
                                 2006     2005       2006      2005
                               --------- --------  --------- ---------
Segment operating income from
 above:
  APP Segment                  $101,763  $38,179   $284,040  $153,098
  ABI Segment                    16,498   12,659     20,819    13,837
  Segment costs not allocated    (6,716)  (1,910)   (34,711)   (5,306)
                               --------- --------  --------- ---------
                                111,545   48,928    270,148   161,629
General and administrative
 expense                        (34,625) (21,550)   (93,005)  (66,438)
Amortization of merger related
 intangibles                    (13,509)       -    (38,275)        -
Merger related in-process
 research and development
 charge                               -        -   (105,777)        -
Other merger related costs       (2,960)  (1,919)   (29,335)   (7,863)
                               --------- --------  --------- ---------
Income from operations           60,451   25,459      3,756    87,328
  Interest expense               (4,101)  (3,218)   (13,927)   (6,563)
  Interest income and other         484       51      3,956       756
  Minority interests                  -   (7,083)   (11,383)  (25,875)
  Income tax expense            (28,385) (12,568)   (29,299)  (37,989)
                               --------- --------  --------- ---------
Net Income (loss)               $28,449   $2,641   $(46,897)  $17,657
                               ========= ========  ========= =========
                       Abraxis BioScience, Inc.
                Consolidated Condensed Balance Sheets
                      (Unaudited, in thousands)
                                                     December 31,
                                                    2006       2005
                                                 ----------- ---------
Assets
Current assets:
  Cash and cash equivalents                         $38,797   $28,818
  Short-term investments                                500    54,455
  Accounts receivable, net of allowances for
   doubtful accounts                                 84,684    61,868
  Inventories                                       218,280   175,282
  Prepaid expenses and other current assets          15,570    13,553
  Deferred income taxes                              78,955    16,936
                                                 ----------- ---------
      Total current assets                          436,786   350,912
Property, plant and equipment, net                  217,819   152,630
Investment in Drug Source Company, LLC                5,504     2,728
Intangible assets, net of accumulated
 amortization                                       738,440       892
Goodwill                                            401,600         -
Deferred income taxes, non-current                        -     5,993
Non-current receivables from related parties             39       649
Other non-current assets, net of accumulated
 amortization                                        25,320    10,425
                                                 ----------- ---------
      Total assets                               $1,825,508  $524,229
                                                 =========== =========

Liabilities and stockholders' equity
Current liabilities:
  Accounts payable                                  $65,471   $35,593
  Accrued liabilities                                61,428    39,364
  Income tax payable                                 80,054     6,992
  Deferred revenue                                   39,225    18,404
  Minimum royalties payable                           1,017     1,020
  Amounts due to officer/stockholder                      -     1,255
  Notes payable                                      72,248         -
                                                 ----------- ---------
      Total current liabilities                     319,443   102,628
                                                 ----------- ---------

Deferred income taxes, non-current                  142,563         -
Long-term debt                                      165,000   190,000
Long-term portion of deferred revenue               158,135         -
Other non-current liabilities                         7,006     1,400
                                                 ----------- ---------
      Total liabilities                             792,147   294,028

Minority interests                                        -   162,061

Stockholders' equity:
  Common stock                                          166       165
  Additional paid-in capital                      1,085,196    71,240
  Retained earnings                                   4,483    51,380
  Accumulated other comprehensive income              1,257     1,629
  Less treasury stock                               (57,741)  (56,274)
                                                 ----------- ---------
      Total stockholders' equity                  1,033,361    68,140
                                                 ----------- ---------
      Total liabilities and stockholders' equity $1,825,508  $524,229
                                                 =========== =========

CONTACT: Abraxis BioScience, Inc.
Investor and Media Inquiries:
Christine Cassiano, 310-405-7417

SOURCE: Abraxis BioScience, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding APP Pharmaceuticals, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.