11-Year Financial Summary

(Unaudited)
(in millions, except per share and employee data)

2004 2003   GAAP Differences Non-GAAP GAAP Differences Non-GAAP TOTAL OPERATING REVENUES $4,621.2   $4,621.2 $3,300.2   $3,300.2   Product sales 3,748.9   3,748.9 2,621.4   2,621.4   Royalties 641.1   641.1 500.9   500.9   Contract revenue 231.2   231.2 177.9   177.9 TOTAL COSTS AND EXPENSES $3,484.4 $(182.6) $3,301.8 $2,495.6 $(41.2) $2,454.4   Cost of sales  672.5    672.5  480.1    480.1   Research and development  947.5    947.5  722.0    722.0   Marketing, general and administrative  1,088.2    1,088.2  794.8    794.8   Collaboration profit sharing  593.6    593.6  457.5    457.5   Recurring charges related to redemption(3)  145.5  (145.5)   -  154.3  (154.3)   -   Special items  37.1  (37.1)   -  (113.1)  113.1   - Other income, net $   82.6    - $   82.6 $   92.8    - $   92.8 INCOME (LOSS) DATA               Income (loss) before taxes and cumulative effect of accounting change  $1,219.4  $ 182.6  $1,402.0  $ 897.4  $  41.2  $ 938.6   Income tax (benefit) provision  434.6  73.0  507.6  287.3  16.4  303.7   Income (loss) before cumulative effect of accounting change 784.8 109.6 894.4 610.1 24.8 634.9   Cumulative effect of accounting change, net of tax  -  -  -  (47.6)(1)  47.6 -   Net income (loss) 784.8 109.6 894.4 562.5 72.4 634.9 EARNINGS (LOSS) PER SHARE:               Basic: Earnings before cumulative effect of accounting change $   0.74 $   0.11 $   0.85 $   0.59 $   0.02 $   0.61     Cumulative effect of accounting change, net of tax  -  -  -  (0.05)  0.05  -     Net earnings per share $   0.74 $   0.11 $   0.85 $   0.54 $   0.07 $   0.61   Diluted: Earnings before cumulative effect of accounting change $   0.73 $   0.10 $   0.83 $   0.58 $   0.02 $   0.60     Cumulative effect of accounting change, net of tax  -  -  -  (0.05)  0.05  -     Net earnings per share $   0.73 $   0.10 $   0.83 $   0.53 $   0.07 $   0.60 SELECTED BALANCE SHEET DATA               Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities  $2,780.4     -  $2,934.7    -   Accounts receivable  957.4    -  597.4    -   Inventories  590.3    -  469.6    -   Property, plant and equipment, net 2,091.4(1)     - 1,617.9(1)     -   Goodwill   1,315.0     -   1,315.0     -   Other intangible assets   668.4     -   810.8     -   Other long-term assets 790.5(12)     - 812.7(12)     -   Total assets   9,403.4     -   8,759.5     -   Total current liabilities   1,243.3     -   896.3     -   Long-term debt   412.3(1)     -   412.3(1)     -   Total liabilities   2,621.2     -   2,239.2     -   Total stockholders' equity   6,782.2     -   6,520.3     - OTHER DATA               Depreciation and amortization expense $  353.2    - $  295.4    -   Capital expenditures  649.9    -  322.0    - SHARE INFORMATION               Shares used to compute basic EPS  1,055.2    1,055.2  1,034.5    1,034.5   Shares used to compute diluted EPS  1,079.2    1,079.2  1,057.6    1,057.6   Actual year-end  1,047.1    -  1,049.5    - PER SHARE DATA               Market price:      High $   68.25    - $   47.68    -          Low $   41.00    - $   15.77    -   Book value $     6.48    - $     6.21    - NUMBER OF EMPLOYEES AT YEAR-END  7,646      6,226

(Table Continued below)

2002 2001   GAAP Differences Non-GAAP GAAP Differences Non-GAAP TOTAL OPERATING REVENUES $2,583.7   $2,583.7 $2,044.1   $2,044.1   Product sales 2,163.6   2,163.6 1,742.9   1,742.9   Royalties 365.6   365.6 264.5   264.5   Contract revenue 54.5   54.5 36.7   36.7 TOTAL COSTS AND EXPENSES $2,661.6 $(699.6) $1,962.0 $1,896.1 $(321.8) $1,574.3   Cost of sales  441.6    441.6  354.5    354.5   Research and development  623.5    623.5  526.2    526.2   Marketing, general and administrative  546.2    546.2  446.9    446.9   Collaboration profit sharing  350.7    350.7  246.7    246.7   Recurring charges related to redemption(3)  155.7(11)  (155.7)  -  321.8  (321.8)   -   Special items 543.9(10)  (543.9)   -   -  -  - Other income, net  $  107.7  -  $  107.7  $135.0(8)  $  (10.0)  $  125.0 INCOME (LOSS) DATA               Income (loss) before taxes and cumulative effect of accounting change  $   29.8  $  699.6  $  729.4  $  283.0  $  311.8  $  594.8   Income tax (benefit) provision  (34.0)  279.8  245.8  127.1  63.2  190.3   Income (loss) before cumulative effect of accounting change 63.8 419.8 483.6 155.9 248.6 404.5   Cumulative effect of accounting change, net of tax  -  -  -  (5.6)(8)  5.6  -   Net income (loss) 63.8(11) 419.8 483.6 150.3 254.2 404.5 EARNINGS (LOSS) PER SHARE:               Basic: Earnings before cumulative effect of accounting change  $   0.06  $    0.41  $   0.47  $    0.15  $   0.23  $   0.38     Cumulative effect of accounting change, net of tax  -  -  -  (0.01)  0.01  -     Net earnings per share $   0.06 $   0.41 $   0.47 $    0.14 $   0.24 $   0.38   Diluted: Earnings before cumulative effect of accounting change $   0.06 $   0.40 $   0.46 $    0.15 $   0.23 $   0.38     Cumulative effect of accounting change, net of tax  -  -  -  (0.01)  0.01  -     Net earnings per share $   0.06 $   0.40 $   0.46 $    0.14 $   0.24 $   0.38 SELECTED BALANCE SHEET DATA               Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities  $1,601.9    -  $2,864.9    -   Accounts receivable  435.8    -  329.9    -   Inventories  393.5    -  356.9    -   Property, plant and equipment, net  1,068.7    -  865.7    -   Goodwill  1,315.0    -  1,302.5    -   Other intangible assets  927.5    -  1,113.3    -   Other long-term assets  796.8(12)    -  127.2    -   Total assets  6,775.5    -  7,161.5    -   Total current liabilities  664.0    -  678.4    -   Long-term debt  -    -  -    -   Total liabilities  1,436.6    -  1,241.7    -   Total stockholders' equity  5,338.9    -  5,919.8    - OTHER DATA               Depreciation and amortization expense $275.0(11)    -  $  428.1    -   Capital expenditures  322.8    -  213.4    - SHARE INFORMATION               Shares used to compute basic EPS  1,038.4    1,038.4  1,054.0    1,054.0   Shares used to compute diluted EPS  1,048.8    1,048.8  1,070.6    1,070.6   Actual year-end  1,025.6    -  1,056.6    - PER SHARE DATA               Market price:      High  $  27.58    -  $  42.00    -          Low  $  12.55    -  $  19.00    -   Book value  $    5.21    -  $    5.60    - NUMBER OF EMPLOYEES AT YEAR-END  5,252      4,950

(Table Continued below)

2000 1999   GAAP Differences Non-GAAP GAAP(6) Differences Non-GAAP TOTAL OPERATING REVENUES $1,514.2   $1,514.2 $1,292.2   $1,292.2   Product sales 1,278.3   1,278.3 1,039.1   1,039.1   Royalties 207.3   207.3 189.3   189.3   Contract revenue 28.6(5)   28.6 63.8   63.8 TOTAL COSTS AND EXPENSES $1,726.3 $(468.2) $1,258.1 $2,729.7 $(1,728.8) $1,000.9   Cost of sales  364.9(7)  (92.9)   272.0  285.6(7)  (93.4)  192.2   Research and development  489.9    489.9  367.3    367.3   Marketing, general and administrative  367.4    367.4  367.1    367.1   Collaboration profit sharing  128.8    128.8  74.3    74.3   Recurring charges related to redemption(3)  375.3  (375.3)   -   197.7  (197.7)   -   Special items   -  -  -  1,437.7(2)  (1,437.7)   - Other income, net  $  216.1  -  $  216.1  $   76.9  -  $   76.9 INCOME (LOSS) DATA               Income (loss) before taxes and cumulative effect of accounting change  $     4.0  $  468.2  $  472.2  $(1,360.6)  $1,728.8  $  368.2   Income tax (benefit) provision  20.4  126.7  147.1  (203.1)  324.6  121.5   Income (loss) before cumulative effect of accounting change (16.4) 341.5 325.1 (1,157.5) 1,404.2 246.7   Cumulative effect of accounting change, net of tax  (57.8)(5)  57.8  -  -  -  -   Net income (loss) (74.2) 399.3 325.1 (1,157.5) 1,404.2 246.7 EARNINGS (LOSS) PER SHARE:               Basic: Earnings before cumulative effect of accounting change  $ (0.02)  $   0.33  $   0.31  $ (1.13)  $   1.37  $   0.24     Cumulative effect of accounting change, net of tax  (0.05)  0.05  -  -  -  -     Net earnings per share $ (0.07) $   0.38 $   0.31 $ (1.13) $   1.37 $   0.24   Diluted: Earnings before cumulative effect of accounting change $ (0.02) $   0.32 $   0.30 $ (1.13) $   1.36 $   0.23     Cumulative effect of accounting change, net of tax  (0.05)  0.05  -  -  -  -     Net earnings per share $ (0.07) $   0.37 $   0.30 $ (1.13) $   1.36 $   0.23 SELECTED BALANCE SHEET DATA               Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities  $2,459.4    -  $1,957.4    -   Accounts receivable  284.1    -  237.5    -   Inventories  265.8    -  275.2    -   Property, plant and equipment, net  752.9    -  730.1    -   Goodwill  1,455.8    -  1,609.1    -   Other intangible assets  1,280.4    -  1,453.3    -   Other long-term assets  168.5    -  201.1    -   Total assets  6,738.8    -  6,560.5    -   Total current liabilities  475.7    -  503.2    -   Long-term debt  149.7    -  149.7    -   Total liabilities  1,064.6     -   1,290.7     -   Total stockholders' equity   5,674.2     - 5,269.8(4)     - OTHER DATA               Depreciation and amortization expense  $   463.0    -  $   280.7    -   Capital expenditures  112.7    -  95.0   - SHARE INFORMATION               Shares used to compute basic EPS  1,044.4    1,044.4  1,025.7    1,025.7   Shares used to compute diluted EPS  1,044.4  27.8  1,072.2  1,025.7  33.3  1,059.0   Actual year-end  1,051.0    -  1,032.4    - PER SHARE DATA               Market price:      High  $  58.62    -  $   11.25 $35.75**    -          Low  $  23.07    -  $   9.32 $12.13**    -   Book value  $    5.40    -  $    5.10     NUMBER OF EMPLOYEES AT YEAR-END  4,459      3,883

(Table Continued below)

1998 1997 1996 1995 1994 TOTAL OPERATING REVENUES $1,053.1 $  935.9 $  904.4 $  850.9 $  752.6   Product sales 717.8 584.9 582.8 635.3 601.0   Royalties 229.6 241.1 214.7 190.8 126.0   Contract revenue 105.7 109.9 106.9 24.8 25.6 TOTAL COSTS AND EXPENSES $  873.5 $  839.3 $  815.7 $  731.0 $  646.1   Cost of sales 138.6 102.5 104.5 97.9 95.8   Research and development 396.2 470.9 471.1 363.0 314.3   Marketing, general and administrative 298.9 265.9 240.1 245.1 236.0   Collaboration profit sharing 39.8 - - - -   Recurring charges related to redemption(3) - - - 25.0(13) -   Special items - - - - - Other income, net $   73.0 $   73.2 $   59.2 $   52.3 $   23.1 INCOME (LOSS) DATA             Income (loss) before taxes and cumulative effect of accounting change $  252.6 $  169.8 $  147.9 $  172.2 $  129.6   Income tax (benefit) provision 70.7 40.8 29.6 25.8 5.2   Income (loss) before cumulative effect of accounting change 181.9 129.0 118.3 146.4 124.4   Cumulative effect of accounting change, net of tax - - - - -   Net income (loss) 181.9 129.0 118.3 146.4 124.4 EARNINGS (LOSS) PER SHARE:             Basic: Earnings before cumulative effect of accounting change $   0.18 $   0.13 $   0.12 $   0.15 $   0.13     Cumulative effect of accounting change, net of tax - - - - -     Net earnings per share $   0.18 $   0.13 $   0.12 $   0.15 $   0.13   Diluted: Earnings before cumulative effect of accounting change $   0.18 $   0.13 $   0.12 $   0.15 $   0.13     Cumulative effect of accounting change, net of tax - - - - -     Net earnings per share $   0.18 $   0.13 $   0.12 $   0.15 $   0.13 SELECTED BALANCE SHEET DATA             Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities $1,604.6 $1,286.5 $1,159.1 $1,096.8 $ 920.9   Accounts receivable 162.2 189.2 197.6 172.2 146.3   Inventories 148.6 116.0 91.9 93.6 103.2   Property, plant and equipment, net 700.2 683.3 586.2 503.7 485.3   Goodwill - - - - -   Other intangible assets 65.0 54.7 40.1 42.2 16.0   Other long-term assets 131.3 122.5 109.1 63.3 45.0   Total assets 2,867.8 2,507.6 2,226.4 2,011.0 1,745.1   Total current liabilities 303.8 289.6 250.0 233.4 220.5   Long-term debt 150.0 150.0 150.0 150.0 150.4   Total liabilities 524.0 476.4 425.3 408.9 396.3   Total stockholders' equity 2,343.8 2,031.2 1,801.1 1,602.0 1,348.8 OTHER DATA             Depreciation and amortization expense $   78.1 $   65.5 $   62.1 $   58.4 $   53.5   Capital expenditures 88.1 154.9 141.8 70.2 82.8 SHARE INFORMATION             Shares used to compute basic EPS 1,006.6 984.3 965.0 946.2 927.9   Shares used to compute diluted EPS 1,039.0 1,011.2 991.8 974.0 961.7   Actual year-end 1,016.9 993.8 971.4 954.1 937.9 PER SHARE DATA             Market price:      High $   9.97 $   7.58 $   6.92 $  6.63* $   6.69          Low $   7.41 $   6.66 $   6.42 $  5.56* $   5.22   Book value $   2.30 $   2.04 $   1.85 $   1.68 $   1.44 NUMBER OF EMPLOYEES AT YEAR-END 3,389 3,242 3,071 2,842 2,738

FootnotesThe 11-year Financial Summary on pages 16—18 reflects adoption of Financial Accounting Standards Board Interpretation No. 46 (or FIN 46), as revised by FIN 46R, in 2003, Statement of Financial Accounting Standards (or FAS) No. 141, 142, 144 and 148 in 2002, FAS 133 in 2001, The Securities and Exchange Commission's Staff Accounting Bulletin No. 101 (or SAB 101) in 2000, FAS 130 and 131 in 1998, FAS 128 and 129 in 1997, FAS 121 in 1996, FAS 115 in 1994.

We have paid no dividends. We currently intend to retain all future income for use in the operation of our business and for future stock repurchases and, therefore, do not anticipate paying any cash dividends in the foreseeable future.

All share and per share amounts reflect two-for-one stock splits of our Common Stock that were effected in 2004, 2000 and 1999.

Non-GAAP amounts exclude: (i) recurring charges related to the Redemption; (ii) litigation-related special items in 2004 was comprised of accrued interest and bond costs related to the City of Hope (or COH) judgment (net of a released accrual on a separate litigation matter), in 2003 it was comprised of Amgen and Bayer litigation settlements (net of COH litigation-related charges), and in 2002 it was comprised of special charges for the COH judgment in the second quarter of 2002, including accrued interest and bond costs, and certain other litigation-related matters, (iii) special charges in 1999 related to the June 30, 1999 redemption of our Special Common Stock (or Redemption) and the effects of "push-down" accounting as required by U.S. generally accepted accounting principles, (iv) costs in 2000 and 1999 related to the sale of inventory that was written up at the Redemption, (v) the cumulative effect of accounting changes, (vi) the changes in fair value of certain derivatives recorded in "other income, net" in 2001, and (vii) all related tax effects. For further information on these items, see the "Results of Operations" section of Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of Part II of our Form 10-K for the respective years on file with the Securities and Exchange Commission (or SEC).

(1) Reflects the impact of the adoption of FIN 46, "Consolidation of Variable Interest Entities."

(2) Charges related to Redemption and push-down accounting ($1,207.7 million) and legal settlements ($230.0 million).

(3) Primarily reflects amortization of other intangible assets in 2004, 2003, 2002, 2001 and 1999, and goodwill amortization in 2001, 2000 and 1999 related to the Redemption and push-down accounting.

(4) Reflects the impact of the Redemption and related push-down accounting of $5,201.9 million of excess purchase price over net book value, net of charges and accumulated amortization of goodwill and other intangible assets.

(5) Reflects the impact of the adoption of SAB 101 on revenue recognition effective January 1, 2000.

(6) GAAP 1999 results reflect the June 30, 1999 redemption and push-down accounting and include the combined New Basis and Old Basis periods presented in the 1999 Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Refer to our 2001 Form 10-K (Part II, Item 8) on file with the SEC.

(7) Includes costs related to the sale of inventory that was written up at the Redemption due to push-down accounting.

(8) Reflects the impact of the adoption of FAS 133 on Accounting for Derivative Instruments and Hedging Activities.

(9) The $149.7 million long-term debt was reclassified to current liabilities to reflect the March 27, 2002 maturity.

(10) Amount includes litigation-related special charges comprised of the City of Hope Medical Center litigation judgment in the second quarter of 2002, including accrued interest and costs related to obtaining a surety bond, and certain other litigation-related matters. For further information on these charges, see the "Results of Operations" section of Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of Part II of our 2002 Form 10-K on file with the SEC.

(11) We adopted FAS 141 on Business Combinations and FAS 142 on Goodwill and other Intangible Assets on January 1, 2002. In accordance with FAS 141 and 142, we discontinued the amortization of goodwill and our trained and assembled workforce intangible asset, which resulted in an increase in reported net income by approximately $157.6 million (or $0.15 per share) in 2002, as compared to the accounting prior to the adoption of FAS 141 and 142.

(12) Includes approximately $682.0 million at December 31, 2004 and $630.0 million at December 31, 2003 and 2002 of restricted cash pledged to secure a bond for the COH judgment. For further information on the COH judgment, see Note 6, "Leases, Commitments and Contingencies" in Part II, Item 8 of our 2004 Form 10-K on file with the SEC.

(13) Primarily includes charges related to 1995 merger and the 1995 Agreement with Roche ($21.0 million).