Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from Jim Birchenough from Barclays Capital. Please go ahead.
Jim Birchenough – Barclays Capital
Hi, guys and congratulations on the strong quarter. Just wondering if you could spent a moment previewing round, you are disappoint around business development and specifically whether you would entertain another business development activities that wouldn’t be P&L friendly? I think people have been reassured by the deals you have done so far, but there was some concern that you might contemplate a dilutive transaction in the future and just wondering how you think about that.
Tony Coles
Hi, Jim. Let me start with the first part of your question which is the disciplined around BD and I just want to talk a little bit about our process, and it really does constitute what we consider a search in the evaluation process, where we literally scour the entire globe for opportunities. We are very focused on identifying those opportunities which complement our existing strength in oncology development and in commercialization. And I think have been quite successful at turning up a number of potential opportunities, some of which have already resulted in the transactions we did at the end of 2008. So the key message in this portion of my answer should focus on complementing our existing strengths in oncology and a very thorough process of oncology focus search and evaluation.
The two transactions we did last year were earlier stage and by design gives us opportunity to manage the P&L, while we are at the peak of our spending for Nexavar because as these newer compounds come along, we don’t have quite a significant expense burden from them and it gives us an opportunity to manage the spend portfolio. I think as the future transactions, it’s probably premature to speculate. But I think it’s safe to say that we are always looking for very good opportunity and I think the deals we have done demonstrate as a fact that we have shareholders at the top of our line in terms of the kind of transactions and the way we structure them so that they can be penal friendly and that we use our cash resources prudently. And those are the same criteria we will use going forward.
Next question, operator.
Operator
Our next question comes from Jessica Li from Goldman Sachs. Please go ahead.
Jessica Li – Goldman Sachs
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