The increase in net income and diluted earnings per share for the 2007 first nine months, before certain significant items, resulted from higher net revenue, lower selling, general and administrative expenses, as a percentage of net revenue, higher interest income, net and higher other income, net offset, in part, by higher cost of goods sold, as a percentage of net revenue, higher research and development spending and increased income taxes. Included in other income, net were pre-tax gains from product divestitures of $60.3 million and $38.7 million for the 2007 and 2006 first nine months, respectively.
The Company continues with its long-term productivity initiatives, which were launched in 2005 to adapt to the changing pharmaceutical industry environment. The Company recorded charges of $117.1 million ($86.0 million after-tax or $0.06 per share-diluted) for the 2007 third quarter and $209.5 million ($152.5 million after-tax or $0.11 per share-diluted) for the 2007 first nine months. These charges include costs pertaining to the closure of a manufacturing facility owned by Amgen Inc. and used in the production of Enbrel. The closure of the manufacturing facility is expected to be completed in the fourth quarter. The 2006 third quarter and first nine months included productivity initiatives charges of $80.2 million ($54.9 million after-tax or $0.04 per share-diluted) and $154.8 million ($106.4 million after-tax or $0.08 per share-diluted), respectively.
To assist in performing third quarter and first nine months comparisons, a pro forma presentation, which excludes our productivity initiatives and favorable income tax adjustment, is provided under "Results of Operations - As Adjusted" at the end of this press release.
Share Repurchase Program
As previously announced, on September 27, 2007,
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