Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 7. Fair Value Measurements

As of December 31, 2012, the Company held a liability for acquisition-related contingent consideration that is required to be measured at fair value on a recurring basis.

The Company's acquisition-related contingent consideration is measured at fair value on a recurring basis using Level 3 inputs.

The following table presents changes to the Company's acquisition-related contingent consideration for the years ended December 31, 2012 and 2011:

	Fair Value Measurements Using Significant
	Unobservable Inputs(Level 3)
	Acquisition-related Contingent Consideration
	2012		2011
Balance at January 1	E	5,753	E	3,212
Change in fair value recorded in earnings		780		2,541
Balance at December 31	E	6,533	E	5,753

The fair value recorded as of December 31, 2011 was determined based on a projection period ending in 2023, which corresponds to the lifetime of the underlying patents. This projection period has been extended to 2030 based on management's revised assessment of the Company's ability to generate new patents from its research, in the fair value calculation performed as December 31, 2012. At the time of the acquisition the RSV vaccine was originally planned to be out-licensed after the pre-clinical phase with potential royalties of 2%. Management's new plan is to bring the RSV vaccine through a Phase I and II, which adds considerable value and changes expected royalties to 10% and therefore increased the liability due to NIL. Additionally, the contingent consideration related to the intra-nasal influenza vaccine has been reduced to zero, as it is very unlikely that the Phase III clinical trial will start before April 1, 2013, now that the Company has regained the rights to the influenza vaccine technology.