Acquisitions, Investments, and Licenses (Tables)

9 Months Ended

Sep. 30, 2013

Estimated fair value of the net assets acquired and liabilities assumed in the acquisition of at the date of acquisition

The following table summarizes the preliminary purchase price allocation and the estimated fair value of the net assets acquired and liabilities assumed in the acquisitions of Cytochroma and PROLOR at the dates of acquisition, which are subject to change while contingencies that existed on the acquisition date are resolved:



(In thousands)	Cytochroma			PROLOR
Current assets ⁽¹⁾	$	1,224		$	21,500
Intangible assets:
In-process research and development	191,530			590,200
Patents	210			—
Total intangible assets	191,740			590,200
Goodwill	2,411			139,784
Property, plant and equipment	306			1,057
Other assets	—			371
Accounts payable and accrued expenses	(1,069		)	(9,866		)
Deferred tax liability	—			(156,403		)
Total purchase price	$	194,612		$	586,643

(1)Current assets include cash of $0.4 million and $20.5 million related to the Cytochroma and PROLOR acquisitions, respectively.

Pro forma disclosure for acquisitions

The following table includes the pro forma results for the three and nine months ended September 30, 2013 and 2012 of the combined companies as though the acquisition of Cytochroma and PROLOR had been completed as of the beginning of each period, respectively.



	For the three months ended September 30,						For the nine months ended September 30,
(In thousands)	2013			2012			2013			2012
Revenues	$	20,641		$	13,976		$	75,838		$	37,327
Net loss	$	(75,858	)	$	(15,745	)	$	130,118		$	(43,864	)
Net loss attributable to common shareholders	$	(75,055	)	$	(16,302	)	$	(128,229	)	$	(45,534	)
Basic and diluted loss per share	$	(0.19	)	$	(0.04	)	$	(0.32	)	$	(0.12	)

Maximum exposure of unconsolidated investments

The following table reflects our maximum exposure, accounting method, ownership interest and underlying equity in net assets of each of our unconsolidated investments as of September 30, 2013:



(Dollars in thousands, except per share prices) Investee name	Year invested	Accounting method	Ownership at September 30, 2013		Investment			Underlying equity in net assets			Closing share price at September 30, 2013 for investments available for sale
Sorrento	2009	Equity method	14	%	$	2,300		$	821
Cocrystal	2009	Equity method	16	%	2,500			358
Neovasc	2011	Equity method	6	%	3,798			454
Fabrus	2010	VIE, equity method	13	%	650			(108		)
BZNE common stock	2012	VIE, equity method	11	%	1,276			(1,184		)
RXi	2013	Equity method	19	%	15,000			2,847
Pharmsynthez	2013	Equity method	11	%	5,036			5,156
TESARO	2010	Investment available for sale	1	%	56							$	38.74
Neovasc options	2011	Investment available for sale	N/A		925						CA	$	2.35
BZNE Note and conversion feature	2012	VIE, investment available for sale	N/A		1,700
ChromaDex	2012	Investment available for sale	1	%	1,320							$	0.81
Plus unrealized/realized gains on investments, options and warrants, net					2,708
Less accumulated losses in investees					(12,579		)
Total carrying value of equity method investees and investments, available for sale					$	24,690

SciVac [Member]

Business Acquisition [Line Items]

Summary of consolidated assets and non-recourse liabilities related to SciVac

The following table represents the consolidated assets and non-recourse liabilities related to SciVac as of September 30, 2013 and December 31, 2012. These assets are owned by, and these liabilities are obligations of, SciVac, not us.



(In thousands)	September 30, 2013		December 31, 2012
Assets
Current assets:
Cash and cash equivalents	$	136	$	174
Accounts receivable, net	205		387
Inventories, net	1,653		1,092
Prepaid expenses and other current assets	185		199
Total current assets	2,179		1,852
Property, plant and equipment, net	1,410		1,539
Intangible assets, net	1,122		1,154
Goodwill	841		796
Other assets	312		231
Total assets	$	5,864	$	5,572
Liabilities
Current liabilities:
Accounts payable	$	1,129	$	1,108
Accrued expenses	5,969		2,859
Notes payable	1,284		—
Total current liabilities	8,382		3,967
Other long-term liabilities	279		1,529
Total liabilities	$	8,661	$	5,496

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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