Question-and-Answer Session
Operator
(Operator Instructions). We will take our first question from Shiv Kapoor with Morgan Joseph.
Shiv Kapoor – Morgan Joseph & Company
Congratulations on the strong operating cash flow this quarter. I am going to ask some partner-related questions, and then I will get back in the queue. You say in your press release that you expect some partner-related announcements in 2009, would these be clinical data announcements or possibly new partnerships or both?
Daniel M. Junius
I think it would be both, Shiv. In the comments, I tried to separate out what is going on with the specific compounds and what that would lead to in terms of data announcements; but the reference to announcements from new or current partners, obviously from new partners, we could not get much in terms of clinical data, but with current partners, we could potential see more activity there from a licensing standpoint. I reference the fact that we do not know what direction they are going take, but Genentech has a handful of options that they have to make a decision on, so that could lead to some activity. Sanofi-Aventis last August entered into an arrangement where they could take licenses from us, so there are a lot of structures already in place that people can move on quickly, but there are also our discussions with others which could evolve into licenses, so it is an active environment; it is just difficult to predict with certainty, when, how big, how many, etc., but we are confident that we would see something come through in this calendar year.
Shiv Kapoor – Morgan Joseph & Company
For the new partnerships not involving Genentech and Sanofi, are you going for more product-based or technology-based partnerships and do you think you have better negotiation power now with T-DM1 progressing as well as it is.
Daniel M. Junius
I think the buyer transaction demonstrates that we do have better negotiating power. As the pipeline evolves, I would like to think that would only become stronger. You asked would they be product or technology, I think at this point the focus is on technology. I think it would be premature; we do not see the need to be looking for product announcements, and by that I think you are referring specifically to 242 and 901.
Shiv Kapoor – Morgan Joseph & Company
What I meant was would these be specific, target-based or??
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