Operating Expenses

Excluding other net charges and gains, operating expenses increased by 8% to $109.8 million for the second quarter of 2012, from $101.2 million for the second quarter of 2011. This reflects a $5.1 million (6%) increase in cash expenses and a $3.5 million (32%) increase in non-cash expenses, principally increased stock compensation expense.

Selling, general and administrative

Three Months Ended June 30
   

Six Months Ended June 30
2011

US$m
  2012

US$m
      2011

US$m
  2012

US$m
44.3   51.9 Cash expenses 85.7   102.7
2.7 2.1 Depreciation and amortization 5.1 4.2
3.3 6.6 Share-based compensation 7.3 13.8
50.3 60.6 Total 98.1 120.7

SG&A expenses increased by $10.3 million to $60.6 million for the second quarter of 2012, from $50.3 million for the same period of 2011, primarily as a result of increased Tysabri sales and marketing expenses and higher legal and corporate costs, along with higher non-cash stock compensation expense, following the increase in share price since the first quarter of 2011.

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