Intangible Assets

12 Months Ended

Dec. 31, 2013

Intangible Assets

Intangible Assets

6. Intangible Assets

The Company purchased certain patents from Shire Laboratories, Inc. in connection with a 2005 purchase agreement, which is being amortized over the weighted average life of the patents purchased in that transaction. Patent defense costs have been incurred in connection with a Complaint filed against Watson on August 7, 2013 related to patents for Oxtellar XR (see Part I, Item 3, Legal Proceedings). The following sets forth the gross carrying amount and related accumulated amortization of these intangible assets, in thousands:

			December 31, 2013				December 31, 2012
	Weighted- Average Life		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Purchased patents		10.0	$	2,292	$	1,838	$	2,292	$	1,609
Patent defense costs(1)			$	704	$	—	$	—	$	—

(1)

Three U.S. patents have been issued covering Oxtellar XR, providing patent protection through 2027. The Company's patent defense costs will be capitalized until the outcome of the Watson litigation becomes known. Assuming a successful outcome of that litigation, these costs will commence amortization from that point of time forward.

Amortization expense was approximately $229,000 for each year. The estimated annual aggregate amortization expense through December 31, 2015 is $229,000. The net book value of intangible assets as of December 31, 2013 and 2012 was approximately $1.2 million and $0.7 million, respectively.

There were no indicators of impairment identified at December 31, 2013 or 2012.