Millennium Pharmaceuticals' ( MLNM) says it's on track to meet its 2006 goals. Millennium reported a 15% increase in product sales to $220 million in 2006. For 2007, the company expects overall product sales to reach $240 million to $260 million. Millennium entered an agreement with Johnson & Johnson ( JNJ) company Ortho Biotech for its blood cancer drug Velcade in October 2006, but it doesn't expect to see a significant impact on sales until the second half of this year. "We expect an increase in Velcade sales throughout the year, but we wouldn't go as far as to call it flat" at the beginning of the year, says CEO Dr. Deborah Dunsire. "I think we've been relatively conservative on the estimates." While the drug developer reported $48 million in 2006 milestone payments through the J&J co-promotion agreement, it doesn't anticipate any material milestones in 2007, the company said in a conference call Friday morning. Additionally, Millennium says it doesn't expect any of its pipeline drugs to enter phase III trials, a stage of studies conducted just before a drug is submitted to the Food and Drug Administration for marketing approval. While phase I and phase II trial results generally provide early safety and efficacy data on a few dozen to a few hundred patients, results from much larger phase III trials are considered a better indicator of a drug's efficacy.