We have numerous opportunities to our milestone payments from many of the drugs in our pipeline this year. The most significant milestone payment we expect to earn is the $25 million milestone payment. Upon FDA acceptance of the KYNAMRO NDA, Genzyme submitted the NDA in March and we expect to earn this payment this quarter. We had, during the second $25 million milestone payment, associated with FDA approval of KYNAMRO this year and included this milestone payment in our 2012 guidance. However, with the January 2013 PDUFA date we now expect to earn this milestone payment next year.
As you recall, our guidance is based on a conservative projection of our financial results which does not include any significant new transactions. As such, it's still early in the year to predict how the shift of this approval milestone will affect our guidance. As expected, our expenses for the first quarter of 2012 were higher than our expenses in the first quarter of 2011. In our year end call on February, we have projected that we would have a nominal increase of about 10% in our operating expenses this year. This increase is due to the maturation of the drugs in our pipeline as we begin later-stage clinical studies designed to support either rapid groups to the market or above Phase 2 data packages.
Our increase in development spending is offset in part by a decrease in KYNAMRO related expenses. In 2011, we met our $125 million funding obligation, which means we now share KYNAMRO development expenses 50:50 with Genzyme until KYNAMRO was profitable. These development expenses are related to the FOCUS FH study, which is well underway. Genzyme is seeing all of the marketing and selling expenses until KYNAMRO was profitable.
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