Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

The table below summarizes the allocation of the purchase price based upon estimated fair values of assets acquired and liabilities assumed at February 21, 2014.

(in thousands)

Fair value of tangible assets acquired and liabilities assumed:
Cash	$	43,631
Accounts receivable		19,652
Inventory (i)		55,259
Prepaid expenses and other assets		2,375
Property, plant and equipment		40,264
Deferred taxes, net		21,337
Income tax receivable		2,452
Accounts payable and accrued liabilities		(22,918	)
Provision for chargebacks		(1,946	)
Contingent purchase consideration		(1,284	)
Deferred revenue		(6,378	)
Total fair value of tangible assets acquired and liabilities assumed		152,444

Acquired in-process research and development		8,300
Acquired intangible assets		36,200
Goodwill		24,566
Total purchase price	$	221,510

(i) Acquired inventory reflects a $8.8 million adjustment to record inventory at fair value, referred to as a step-up adjustment. The $8.8 million step-up is estimated to be amortized through cost of product sales and contract manufacturing over the next five years based on expected inventory turnover, which will increase cost of product sales and contract manufacturing during such period.

Fair Value of Intangible Assets

The table below summarizes the fair value of intangible assets acquired and the estimated amortization periods:

				Amortization
				Period
( in thousands)	Amount			in years

Corporate Trade Name		$	2,800		5.0
Marketed Products			8,100		10.0
Licensed Products			3,100		7.0
Biodefense Products			16,700		12.0
Contract Manufacturing			5,500		8.0

Total identified intangible assets		$	36,200

Cangene pro forma

The following pro forma information is presented as if the acquisition had occurred on January 1, 2013, and combines the historical results of operations of the Company and Cangene for the year ended December 31, 2014 and 2013.

	December 31,
(in thousands)	2014		2013
Pro forma revenue	$	462,446	$	428,194
Pro forma net income	$	34,624	$	10,994

EV 035 [Member]

Business Acquisition [Line Items]

Purchase Price Allocation

In conjunction with the revision to the total purchase price and based on this same information and analysis, the Company has recast of the fair value of the in-process research and development ("IPR&D") asset attributed to the EV-035 series of molecules, via a measurement period adjustment through June 30, 2015. The table below summarizes the recast allocation of the purchase price based upon fair values of assets acquired.

(in thousands)	Purchase Price Allocation		Measurement Period Adjustment			Recast Purchase Price Allocation
Acquired intangible assets	$	27,700	$	(17,172	)	$	10,528
Goodwill		2,000		10,601			12,601
Total purchase price	$	29,700	$	(6,571	)	$	23,129

Preliminary Purchase Price

The table below summarizes the total purchase price:

(in thousands)	Purchase Price		Measurement Period Adjustment			Recast Purchase Price
Amount of cash paid to Evolva Holdings SA	$	1,500	$	-		$	1,500
Fair value of contingent consideration		28,200		(6,571	)		21,629
Total purchase price	$	29,700	$	(6,571	)	$	23,129

Adjusted Balance Sheet

The Company has recast, in this filing, the historical December 31, 2014 balance sheet line items for in-process research and development, goodwill and contingent consideration.

(in thousands)	Balance as of December 31, 2014		EV-035 Purchase Price Adjustments			Adjusted Balance as of December 31, 2014
Assets:
In-process research and development	$	77,800	$	(17,172	)	$	60,628
Goodwill		41,984		10,601			52,585
Total assets	$	119,784	$	(6,571	)	$	113,213

Liabilities:
Contingent consideration, net of current portion	$	41,170	$	(6,571	)	$	34,599
Total liabilities	$	41,170	$	(6,571	)	$	34,599

In addition, the Company has reflected the impact of the above adjustments to the disclosures in Notes 4 and 9.