Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

INCOME TAXES

10. INCOME TAXES

The change in the effective tax rate was primarily due to changes in the overall mix of income (loss) in the jurisdictions in which we operate, including changes in our valuation allowance in such jurisdictions. In 2010, we completed an intra-entity transfer of intellectual property and, as a result, shifted certain related future development expenditures to the acquiring entity. During 2011, as insufficient evidence exists to support current or future realization of the tax benefits associated with such development expenditures as well as certain other current period expenditures, the benefit of certain tax assets has not been recognized in the current periods. The tax recovery for the nine months ended September 30, 2010 reflected a benefit of $5.6 million which was recorded as a result of the restructuring of our arrangement with Novartis under the Amended PDT Agreement.