Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2011

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

7.    Intangible Assets and Goodwill

Intangible Assets

Intangible assets, net of accumulated amortization, impairment charges and adjustments, are summarized as follows:

		As of December 31, 2011							As of December 31, 2010
(In millions)	Estimated Life	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Out-licensed patents	12-23 years	$	578.0	$	(391.3	)	$	186.7	$	578.0	$	(350.2	)	$	227.8
Core developed technology	15-23 years		3,005.3		(1,801.1	)		1,204.2		3,005.3		(1,636.9	)		1,368.4
In-process research and development	Up to 15 years upon commercialization		110.9		—			110.9		110.9		—			110.9
Trademarks and tradenames	Indefinite		64.0		—			64.0		64.0		—			64.0
In-licensed rights and patents	6-16 years		47.2		(4.8	)		42.4		3.0		(1.3	)		1.7
Assembled workforce	4 years		2.1		(2.1	)		—		2.1		(2.1	)		—
Distribution rights	2 years		12.7		(12.7	)		—		12.7		(12.7	)		—
Total intangible assets		$	3,820.2	$	(2,212.0	)	$	1,608.2	$	3,776.0	$	(2,003.2	)	$	1,772.8

Total intangible assets was unchanged as of December 31, 2011 compared to December 31, 2010, excluding the impact of amortization and amounts recorded in connection with the license agreements for FAMPYRA and the JC virus assay described below. In December 2010, we completed our acquisition of BIN and allocated a $110.9 million of the purchase price to acquired IPR&D. For additional information related to this transaction, please read Note 2, Acquisitions to these consolidated financial statements.

Amortization of acquired intangible assets totaled $208.6 million, $208.9 million, and $289.8 million for the years ended December 31, 2011, 2010 and 2009, respectively. Amortization for acquired intangible assets is expected to be in the range of approximately $160.0 million to $200.0 million annually through 2016.

AVONEX Core Technology Asset

Our most significant intangible asset is the core technology related to our AVONEX product. The net book value of this asset as of December 31, 2011 was $1,192.1 million. Amortization of our core acquired intangible asset related to AVONEX is expected to be in the range of approximately $100.0 million to $150.0 million annually through 2016.

FAMPYRA

In July 2011, the European Commission (EC) granted a conditional marketing authorization for FAMPYRA in the E.U., which triggered a $25.0 million milestone payment. This payment was made to Acorda Therapeutics, Inc. (Acorda) in the third quarter of 2011 and was capitalized as an intangible asset.

Under the terms of our 2009 collaboration and license agreement, we will pay Acorda additional milestones based on new indications and ex-U.S. net sales. The next expected milestone would be $15.0 million, due when ex-U.S. net sales reach $100.0 million over a period of four consecutive quarters. We will capitalize these milestones upon achievement as an intangible asset. Amortization will utilize an economic consumption model that will be based on an estimate of all of the probable payments we expect to make as contingent consideration, such as sales-based milestones, for entering into the license agreement.

For additional information related to our collaboration with Acorda, please read Note 20, Collaborations to these consolidated financial statements.

JC Virus Assay

In the first quarter of 2011, we licensed rights for the diagnostic and therapeutic application of recombinant virus-like particles, known as VP1 proteins, to detect antibodies of the JC virus (JCV) in serum or blood. Under the terms of this license, we expect to make payments totaling approximately $58.9 million through 2016. These payments include upfront and milestone payments as well as the greater of an annual maintenance fee or usage-based royalty payment. As of December 31, 2011, we recognized an intangible asset in the amount of $19.2 million, reflecting the total of upfront payments made and other time-based milestone payments. We will further capitalize additional payments due under this arrangement as an intangible asset upon achievement. Amortization will utilize an economic consumption model that will be based on an estimate of all of the probable payments we expect to make in relation to the total number of JCV assay tests performed through 2016.

Goodwill

The following table provides a roll forward of the changes in goodwill:

	As of December 31,
(In millions)	2011		2010
Beginning balance	$	1,146.3	$	1,138.6
Goodwill acquired during the year		—		25.6
Other		—		(17.9	)
Ending balance	$	1,146.3	$	1,146.3

As of December 31, 2011, we had no accumulated impairment losses related to goodwill.

In December 2010, we completed our acquisition of BIN and allocated a $25.6 million of the purchase price to goodwill. For additional information related to this transaction, please read Note 2, Acquisitions to these consolidated financial statements. During 2010, we also recorded a decrease to goodwill of $17.9 million to establish a deferred tax asset that existed at the time of the merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation in 2003.