Watson incurred Global Generics segment R&D expenses of approximately $195 million in 2010, $140 million in 2009 and $119 million in 2008. We are presently developing a number of generic products through a combination of internal and collaborative programs.

Our Global Generics R&D strategy focuses on the following product development areas:

• Off-patent drugs that are difficult to develop or manufacture, or that complement or broaden our existing product lines;
• The development of sustained-release and other drug delivery technologies and the application of these technologies to proprietary drug forms; and
• Using in-house technologies to develop new products.

In 2010, our product development efforts resulted in the submission of over 30 Abbreviated New Drug Applications ("ANDAs") in the U.S. and more than 145 applications globally. At December 31, 2010, we had more than 120 ANDAs on file in the U.S. and a significant number of applications on file internationally.