11-Year Financial Summary (Unaudited)
(In millions, except per share, stock price and employee data)

2005

2005   GAAP Differences Non-GAAP         TOTAL OPERATING REVENUES $6,633   $6,633   Product sales 5,488   5,488   Royalties 935   935   Contract revenue 210   210 TOTAL COSTS AND EXPENSES $4,712 $(181) $4,531   Cost of sales  1,011    1,011   Research and development  1,262    1,262   Marketing, general and administrative  1,435    1,435   Collaboration profit sharing  823   823   Recurring charges related to redemption(3)  123  (123)   -   Special items  58  (58)   - Other income, net $   91    - $   91 INCOME (LOSS) DATA         Income (loss) before taxes and cumulative effect of accounting change  $2,013  $ 181  $2,193   Income tax (benefit) provision  734  72  806   Income (loss) before cumulative effect of accounting change 1,279 108 1,387   Cumulative effect of accounting change, net of tax  -  -  -   Net income (loss) 1,279 108 1,387 EARNINGS (LOSS) PER SHARE:         Basic: Earnings before cumulative effect of accounting change $   1.21 $   0.11 $   1.32     Cumulative effect of accounting change, net of tax  -  -  -     Net earnings per share $   1.21 $   0.11 $   1.32   Diluted: Earnings before cumulative effect of accounting change $   1.18 $   0.10 $   1.28     Cumulative effect of accounting change, net of tax  -  -  -     Net earnings per share $   1.18 $   0.10 $   1.28 SELECTED BALANCE SHEET DATA         Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities  $3,814     -   Accounts receivable 1,083    -   Inventories  703    -   Property, plant and equipment, net 3,349     -   Goodwill   1,315     -   Other intangible assets  574     -   Other long-term assets 1,041(12)     -   Total assets   12,147     -   Total current liabilities   1,660     -   Long-term debt 2,083 (14), (15)     -   Total liabilities   4,677     -   Total stockholders' equity   7,470     - OTHER DATA         Depreciation and amortization expense $  370    -   Capital expenditures  1,400(15)    - SHARE INFORMATION         Shares used to compute basic EPS  1,055    1,055   Shares used to compute diluted EPS  1,081    1,081   Actual year-end  1,054    - PER SHARE DATA         Market price:      High $ 100.20    -          Low $   43.90    -   Book value $     7.09    - NUMBER OF EMPLOYEES AT YEAR-END  9,563

(Table Continued below)

2004-2003

2004 2003   GAAP Differences Non-GAAP GAAP Differences Non-GAAP               TOTAL OPERATING REVENUES $4,621   $4,621 $3,300   $3,300   Product sales 3,749   3,749 2,621   2,621   Royalties 641   641 501   501   Contract revenue 231   231 178   178 TOTAL COSTS AND EXPENSES $3,484 $(183) $3,302 $2,496 $(41) $2,454   Cost of sales  673    673  480    480   Research and development  948    948  722    722   Marketing, general and administrative  1,088    1,088  795    795   Collaboration profit sharing  594    594  458    458   Recurring charges related to redemption(3)  146  (146)   -  154  (154)   -   Special items  37  (37)   -  (113)  113   - Other income, net $   83    - $   83 $   93    - $   93 INCOME (LOSS) DATA               Income (loss) before taxes and cumulative effect of accounting change  $1,219  $ 183  $1,402  $ 897  $  41  $ 939   Income tax (benefit) provision  435  73  508  287  16  304   Income (loss) before cumulative effect of accounting change 785 110 894 610 25 635   Cumulative effect of accounting change, net of tax  -  -  -  (48)(1)  48 -   Net income (loss) 785 110 894 563 72 635 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     -  $2,935    -   Accounts receivable  960    -  599    -   Inventories  590    -  470    -   Property, plant and equipment, net 2,091(1)     - 1,618(1)     -   Goodwill   1,315     -   1,315     -   Other intangible assets   668     -   811     -   Other long-term assets 788(12)     - 811(12)     -   Total assets   9,403     -   8,759     -   Total current liabilities   1,238     -   893     -   Long-term debt   412(1)     -   412(1)     -   Total liabilities   2,621     -   2,239     -   Total stockholders' equity   6,782     -   6,520     - OTHER DATA               Depreciation and amortization expense $  353    - $  295    -   Capital expenditures  650    -  322    - SHARE INFORMATION               Shares used to compute basic EPS  1,055    1,055  1,035    1,035   Shares used to compute diluted EPS  1,079    1,079  1,058    1,058   Actual year-end  1,047    -  1,049    - 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

2002 2001   GAAP Differences Non-GAAP GAAP Differences Non-GAAP TOTAL OPERATING REVENUES $2,584   $2,584 $2,044   $2,044   Product sales 2,164   2,164 1,743   1,743   Royalties 366   366 265   265   Contract revenue 55   55 37   37 TOTAL COSTS AND EXPENSES $2,662 $(700) $1,962 $1,896 $(322) $1,574   Cost of sales  442    442  355    355   Research and development  624    624  526    526   Marketing, general and administrative  546    546  447    447   Collaboration profit sharing  351    351  247    247   Recurring charges related to redemption(3)  156(11)  (156)  -  322  (322)   -   Special items 544(10)  (544)   -   -  -  - Other income, net  $  108  -  $  108  $135(8)  $  (10)  $  125 INCOME (LOSS) DATA               Income (loss) before taxes and cumulative effect of accounting change  $   30  $  700  $  729  $  283  $  312  $  595   Income tax (benefit) provision  (34)  280  246  127  63  190   Income (loss) before cumulative effect of accounting change 64 420 484 156 249 405   Cumulative effect of accounting change, net of tax  -  -  -  (6)(8)  6  -   Net income (loss) 64(11) 420 484 150 254 405 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  $1,602    -  $2,865    -   Accounts receivable  443    -  330    -   Inventories  394    -  357    -   Property, plant and equipment, net  1,069    -  866    -   Goodwill  1,315    -  1,303    -   Other intangible assets  928    -  1,113    -   Other long-term assets  790(12)    -  127    -   Total assets  6,776    -  7,162    -   Total current liabilities  661    -  677(9)    -   Long-term debt  -    -  -    -   Total liabilities  1,437    -  1,242    -   Total stockholders' equity  5,339    -  5,920    - OTHER DATA               Depreciation and amortization expense $275(11)    -  $  428    -   Capital expenditures  323    -  213    - SHARE INFORMATION               Shares used to compute basic EPS  1,038    1,038  1,054    1,054   Shares used to compute diluted EPS  1,049    1,049  1,071    1,071   Actual year-end  1,026    -  1,057    - 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

2000 1999   GAAP Differences Non-GAAP GAAP(6) Differences Non-GAAP TOTAL OPERATING REVENUES $1,514   $1,514 $1,292   $1,292   Product sales 1,278   1,278 1,039   1,039   Royalties 207   207 189   189   Contract revenue 29(5)   29 64   64 TOTAL COSTS AND EXPENSES $1,726 $(468) $1,258 $2,730 $(1,729) $1,001   Cost of sales  365(7)  (93)   272  286(7)  (93)  192   Research and development  490    490  367    367   Marketing, general and administrative  367    367  367    367   Collaboration profit sharing  129    129  74    74   Recurring charges related to redemption(3)  375  (375)   -   198  (198)   -   Special items   -  -  -  1,438(2)  (1,438)   - Other income, net  $  216  -  $  216  $   77  -  $   77 INCOME (LOSS) DATA               Income (loss) before taxes and cumulative effect of accounting change  $     4  $  468  $  472  $(1,361)  $1,729  $  368   Income tax (benefit) provision  20  127  147  (203)  325  122   Income (loss) before cumulative effect of accounting change (16) 342 325 (1,158) 1,404 247   Cumulative effect of accounting change, net of tax  (58)(5)  58  -  -  -  -   Net income (loss) (74) 399 325 (1,158) 1,404 247 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    -  $1,957    -   Accounts receivable  284    -  238    -   Inventories  266    -  275    -   Property, plant and equipment, net  753    -  730    -   Goodwill  1,456    -  1,609    -   Other intangible assets  1,280    -  1,453    -   Other long-term assets  169    -  201    -   Total assets  6,739    -  6,561    -   Total current liabilities  475    -  503    -   Long-term debt  150    -  150    -   Total liabilities  1,065     -   1,291     -   Total stockholders' equity   5,674     - 5,270(4)     - OTHER DATA               Depreciation and amortization expense  $   463    -  $   281    -   Capital expenditures  113    -  95   - SHARE INFORMATION               Shares used to compute basic EPS  1,044    1,044  1,026    1,026   Shares used to compute diluted EPS  1,044  28  1,072  1,026  33  1,059   Actual year-end  1,051    -  1,032    - PER SHARE DATA               Market price:      High  $  61.25    -  $   11.25 $35.75**    -          Low  $  21.13    -  $   9.32 $12.13**    -   Book value  $    5.40    -  $    5.10     NUMBER OF EMPLOYEES AT YEAR-END  4,459      3,883

(Table Continued below)

1998-1995

1998 1997 1996 1995 TOTAL OPERATING REVENUES $1,053 $  936 $  904 $  851   Product sales 718 585 583 635   Royalties 230 241 215 191   Contract revenue 106 110 107 25 TOTAL COSTS AND EXPENSES $  874 $  839 $  816 $  731   Cost of sales 139 103 105 98   Research and development 396 471 471 363   Marketing, general and administrative 299 266 240 245   Collaboration profit sharing 40 - - -   Recurring charges related to redemption(3) - - - -   Special items - - - 25(13) Other income, net $   73 $   73 $   59 $   52 INCOME (LOSS) DATA           Income (loss) before taxes and cumulative effect of accounting change $  253 $  170 $  148 $  172   Income tax (benefit) provision 71 41 30 26   Income (loss) before cumulative effect of accounting change 182 129 118 146   Cumulative effect of accounting change, net of tax - - - -   Net income (loss) 182 129 118 146 EARNINGS (LOSS) PER SHARE:           Basic: Earnings before cumulative effect of accounting change $   0.18 $   0.13 $   0.12 $   0.15     Cumulative effect of accounting change, net of tax - - - -     Net earnings per share $   0.18 $   0.13 $   0.12 $   0.15   Diluted: Earnings before cumulative effect of accounting change $   0.18 $   0.13 $   0.12 $   0.15     Cumulative effect of accounting change, net of tax - - - -     Net earnings per share $   0.18 $   0.13 $   0.12 $   0.15 SELECTED BALANCE SHEET DATA           Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities $1,605 $1,287 $1,159 $1,097   Accounts receivable 162 189 198 172   Inventories 149 116 92 94   Property, plant and equipment, net 700 683 586 504   Goodwill - - - -   Other intangible assets 65 55 40 42   Other long-term assets 131 123 109 63   Total assets 2,868 2,507 2,226 2,011   Total current liabilities 303 289 250 233   Long-term debt 150 150 150 150   Total liabilities 524 476 425 409   Total stockholders' equity 2,344 2,031 1,801 1,602 OTHER DATA           Depreciation and amortization expense $   78 $   66 $   62 $   58   Capital expenditures 88 155 142 70 SHARE INFORMATION           Shares used to compute basic EPS 1,007 984 965 946   Shares used to compute diluted EPS 1,039 1,011 992 974   Actual year-end 1,017 994 971 954 PER SHARE DATA           Market price:      High $   9.97 $   7.58 $   6.92 $  6.63*          Low $   7.41 $   6.66 $   6.42 $  5.56*   Book value $   2.30 $   2.04 $   1.85 $   1.68 NUMBER OF EMPLOYEES AT YEAR-END 3,389 3,242 3,071 2,842

Footnotes The preceding 11-year Financial Summary reflects adoption of Financial Accounting Standards Board Interpretation No. 46 (FIN 46), as revised by FIN 46R, in 2003, Statement of Financial Accounting Standards (FAS) No. 141, 142, 144 and 148 in 2002, FAS 133 in 2001, the Securities and Exchange Commission's Staff Accounting Bulletin No. 101 (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 2005 was comprised of accrued interest and bond costs related to the City of Hope (COH) judgment and net amounts paid related to other litigation settlements, in 2004 it was comprised of accrued interest and bond costs related to the 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 accrued interest and bond costs related to the COH litigation), 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 Redemption and the effects of "push-down" accounting as required by U.S. generally accepted accounting principles, and legal settlements, (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 (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 ($1,208 million) and legal settlements ($230 million).

(3) Primarily reflects amortization of other intangible assets in 2005, 2004, 2003, 2002, 2001, 2000, and 1999, and goodwill amortization in 2001, 2000 and 1999 related to the Redemption and push-down accounting.

(4) Reflects the effect of the Redemption and related push-down accounting of $5,202 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 pushdown 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 effect of the adoption of FAS 133 on Accounting for Derivative Instruments and Hedging Activities.

(9) The $150 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 COH 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 $158 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 $735 million at December 31, 2005, $682 million at December 31, 2004 and $630 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 7, "Leases, Commitments and Contingencies" in Part II, Item 8 of our 2005 Form 10-K on file with the SEC.

(13) Primarily includes charges related to 1995 merger and the 1995 Agreement with Roche ($21 million).

(14) Includes approximately $2 billion related to our debt issuance in July 2005, net of the repayment of $425 million in the third quarter of 2005 to extinguish the debt and noncontrolling interest related to a synthetic lease obligation. For further information, see Note 7, "Leases, Commitments and Contingencies" in Part II, Item 8 of our 2005 10-K on file with the SEC.

(15) In 2005, we capitalized costs of approximately $94 million related to our accounting for a construction project of which we are considered to be the owner during the construction period. These costs have been excluded from 2005 capital expenditures, and have been recognized as a construction financing obligation in long-term debt.