Marginalized APC Inc.

Top 10 BioPharma Companies: Key Annual Financial Metrics

APC Genentech Amgen Novo Nordisk Merck Serono Baxter BioScience Biogen Idec Genzyme CSL Ltd.* Allergan Top 10 Top 5

$ (mil) % $ (mil) % $ (mil) % $ (mil) % $ (mil) % $ (mil) % $ (mil) % $ (mil) % $ (mil) % $ (mil) % % %

Net Sales $19,152 $36,017 $14,642 $9,566 $7,454 $5,573 $4,247 $3,562 $3,211 $1,310

Cost of Products Sold $5,098 26.6% $9,797 27.2% $4,070 27.8% $2,506 26.2% $2,020 27.1% $1,494 27% $1,249 29.4% $1,104 31.0% $967 30.1% $385 29.4% 28.2% 27.0%

Gross Margin $14,054 73.4% $26,220 72.8% $10,572 72.2% $7,060 73.8% $5,434 72.9% $4,079 73.2% $2,998 70.6% $2,458 69.0% $2,244 69.9% $925 70.6% 71.8% 73.0%
Marketing, Selling and
Administrative $3,508 18.3% $6,447 17.9% $2,650 18.1% $1,636 17.1% $1,327 17.8% $1,031 18.5% $824 19.4% $705 19.8% $581 18.1% $258 19.7% 18.5% 17.8%
Advertising and Product
Promotions $2,209 11.5% $2,917 8.1% $1,215 8.3% $890 9.3% $581 7.8% $568 10.2% $446 10.5% $349 9.8% $350 10.9% $152 11.6% 9.8% 9.0%

Total SG&A $5,717 29.9% $9,364 26.0% $3,865 26.4% $2,525 26.4% $1,908 25.6% $1,599 28.7% $1,270 29.9% $1,054 29.6% $931 29.0% $410 31.3% 28.3% 26.9%
Research and
Development $3,464 18.1% $6,591 18.3% $2,606 17.8% $1,856 19.4% $1,312 17.6% $1,003 18.0% $756 17.8% $616 17.3% $706 22.0% $288 22.0% 18.8% 18.2%

Operating Margin $4,873 25.4% $10,265 28.5% $4,100 28.0% $2,678 28.0% $2,214 29.7% $1,477 26.5% $973 22.9% $787 22.1% $607 18.9% $227 17.3% 24.7% 27.9%

Total Expenses $14,279 74.6% $25,752 71.5% $10,542 72.0% $6,888 72.0% $5,240 70.3% $4,096 73.5% $3,274 77.1% $2,775 77.9% $2,604 81.1% $1,083 82.7% 75.3% 72.1%

Employees 30000 56104 22880 14640 10780 8460 7004 5490 5004 1875
Revenue/Employee
(thousands) $ 638.4 $ 642.0 $ 639.9 $ 653.4 $ 691.5 $ 658.7 $ 606.4 $ 648.8 $ 641.7 $ 698.7

Cost of products sold

Research and development
Cost of products sold consist of material costs, internal labor and overhead of our owned manufacturing sites,
Research and development expenses consist of internal salary and benefit costs, third-party grants and fees paid
third-party processing costs, other supply chain costs and changes in foreign currency forward contracts that
to clinical research organizations, supplies and facility costs. Total research and development expenses include
offset manufacturing related assets and liabilities denominated in foreign currencies. Essentially all of these costs
the costs of discovery research, preclinical development, early- and late-clinical development and drug
are managed primarily through our global manufacturing organization, referred to as Technical Operations. In
formulation, as well as clinical trials and medical support of marketed products, proportionate allocations of
addition, discovery royalties attributed to licensed products in connection with alliances as well as the
enterprise-wide costs, and other appropriate costs. These expenses also include third-party licensing fees.
amortization of milestone payments that occur on or after regulatory approval are also included.
Certain expenses are shared with alliance partners based upon contractual agreements. Approximately 80% of
these expenses are managed by global R&D organization of which, approximately 75% of the total spend was
attributed to development activities with the remainder attributed to preclinical and research activities.

Marketing, selling and administrative Advertising and product promotion

Marketing, selling and administrative expenses consist of employee salary and benefit costs, third-party Advertising and product promotion expenses consist of related media, sales literature, promo items, and
professional and marketing fees, outsourcing fees, shipping and handling costs and other expenses that are not samples
attributed to product manufacturing costs or research and development expenses. Most of these expenses are
managed through regional commercialization functions or global functions such as finance, law, information
technology and human resources.

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