Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

6.	Intangible Assets and Goodwill

Intangible assets consist of the following ($ in 000’s):


	June 30, 2013 (As Restated)
	Gross Amount		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Weighted Average Amortization Period (years)
ZEVALIN intangibles—US	$	41,900	$	(21,595	)	$	—		$	—		$	20,305		5.5
ZEVALIN intangibles—Ex. US		23,490		(3,604	)		(663	)		—			19,223		8.8
FUSILEV intangibles		16,778		(3,966	)		—			—			12,812		6.5
FOLOTYN distribution rights		27,900		(2,300	)		—			(1,023	)		24,577		9.1
FOLOTYN developed technology		118,400		(6,231	)		—			—			112,169		13.5
Melphalan license with CyDex Pharmaceuticals		7,700		—			—			—			7,700		n/a

Total intangible assets	$	236,168	$	(37,696	)	$	(663	)		(1,023	)	$	196,786

On May 29, 2013 the Company and Mundipharma entered into an amendment to their collaboration agreement in order to modify the scope of the Mundipharma licensed territories and the respective development obligations of the parties. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and royalty and milestone rates were modified. The modification of the Company’s associated royalty and milestone rights constituted a change in the contractual provisions under which the Company measured its original acquired intangible asset (FOLOTYN distribution rights) with Mundipharma. The Company determined that an impairment of the Mundipharma intangible asset of $1.0 million resulted from the amendment and is recorded in the amortization and impairment of purchased intangibles in the accompanying statement of operations.

During the six months ended June 30, 2013, ZEVALIN and FOLOTYN intangible amortization of $3.3 million and $5.6 million, respectively, is included in amortization of purchased intangibles. In addition, during the six months ended June 30, 2013, $1.0 million is included in cost of product sales related to FUSILEV milestones.

Goodwill

Goodwill includes the following:


	June 30, 2013 (As Restated)			December 31, 2012 (As Restated)
	($ in ‘000’s)
Acquisition of Zevalin Rights	$	2,525		$	2,525
Acquisition of Allos		4,791			4,791
Foreign exchange translation effects		(70	)		(37	)

	$	7,246		$	7,279

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details