Other Intangibles

9 Months Ended

Sep. 30, 2011

Other Intangibles [Abstract]

Other intangibles

7. Other Intangibles

     At the time of the Merger, the Company measured the fair value of Schering-Plough’s marketed products and legacy pipeline programs and capitalized these amounts. During the first nine months of 2011, the Company recorded an intangible asset impairment charge of $118 million within Materials and production costs related to a marketed product. Also, during the third quarter and first nine months of 2011, the Company recorded $22 million and $343 million, respectively, of in-process research and development (“IPR&D”) impairment charges within Research and development expenses primarily for pipeline programs that had previously been deprioritized and were either deemed to have no alternative use in the period or were out-licensed to a third party for consideration that was less than the related asset’s carrying value. During the third quarter and first nine months of 2010, the Company recorded $189 million and $216 million, respectively, of IPR&D impairment charges attributable to compounds identified during the Company’s pipeline prioritization review that were abandoned and determined to have either no alternative use or were returned to the respective licensor, as well as from expected delays in the launch timing or changes in cash flow assumptions for certain compounds. The Company may recognize additional non-cash impairment charges in the future related to marketed products or for the cancellation of other legacy Schering-Plough pipeline programs and such charges could be material.