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| <NonNumbericText> <div style="font-size:12pt"><p>15. Other intangible assets, net</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right"><b>December 31,</b></td><td height="17" width="120" align="right"><b>December 31,</b></td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right"><b>2009 </b></td><td height="17" width="120" align="right"><b>2008 </b></td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right"><b>$’M</b></td><td height="17" width="120" align="right"><b> $’M</b></td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">________________</td><td height="17" width="120" align="right">________________</td></tr><tr><td width="435" align="left" height="17" colspan="2">Intellectual property rights acquired</td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right"> </td><td height="17" width="120" align="right"> </td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left">Currently marketed products</td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">2,351.6 </td><td height="17" width="120" align="right">2,253.2 </td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left">IPR&D</td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">6.1 </td><td height="17" width="120" align="right">- </td></tr><tr><td width="435" align="left" height="17" colspan="2">Favorable manufacturing contracts</td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">8.7 </td><td height="17" width="120" align="right">8.7 </td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">________________</td><td height="17" width="120" align="right">________________</td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">2,366.4 </td><td height="17" width="120" align="right">2,261.9 </td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right"> </td><td height="17" width="120" align="right"> </td></tr><tr><td width="435" align="left" height="17" colspan="2">Less: Accumulated amortization</td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">(575.7)</td><td height="17" width="120" align="right">(437.0)</td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">________________</td><td height="17" width="120" align="right">________________</td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">1,790.7 </td><td height="17" width="120" align="right">1,824.9 </td></tr><tr><td height="17" width="52" align="left"> </td><td height="17" width="383" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="120" align="right">________________</td><td height="17" width="120" align="right">________________</td></tr></table><p>At December 31, 2009 the net book value of intangible assets allocated to the Specialty Pharmaceuticals segment was $1,238.0 million (December 31, 2008: $1,244.9 million) and in the HGT segment was $552.7 million (December 31, 2008: $580.0 million).<br /><br />The change in the net book value of other intangible assets for the year to December 31, 2009 is shown in the table below: </p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="573" align="left"><b> </b></td><td height="17" width="119" align="right"><b>Other intangible</b></td></tr><tr><td height="17" width="573" align="left"><b> </b></td><td height="17" width="119" align="right"><b>assets</b></td></tr><tr><td height="17" width="573" align="left"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="119"><b>$’M</b></td></tr><tr><td height="11" width="573" align="right"> </td><td height="11" style="border-top: 1px solid #000000;" align="left" width="119"> </td></tr><tr><td height="17" width="573" align="left">As at January 1, 2009</td><td height="17" width="119" align="right">1,824.9 </td></tr><tr><td height="17" width="573" align="left">Acquisitions</td><td height="17" width="119" align="right">84.0 </td></tr><tr><td height="17" width="573" align="left">Amortization charged </td><td height="17" width="119" align="right">(138.6)</td></tr><tr><td height="17" width="573" align="left">Foreign currency translation</td><td height="17" width="119" align="right">20.4 </td></tr><tr><td height="17" width="573" align="right"> </td><td height="17" width="119" align="right">________________</td></tr><tr><td height="17" width="573" align="left">As at December 31, 2009</td><td height="17" width="119" align="right">1,790.7 </td></tr><tr><td height="17" width="573" align="right"> </td><td height="17" width="119" align="right">________________</td></tr></table><p>During the year to December 31, 2009 the Company acquired intangible assets totaling $84.0 million, principally relating to $78.5 million for EQUASYM IR and XL for the treatment of ADHD ($73.0 million for currently marketed products and $5.5 million for IPR&D). The weighted average amortization period for acquired currently marketed products is 13 years. <br /><br />Amortization charged for the years to December 31, 2009, 2008 and 2007 was $138.6 million, $127.9 million and $95.8 million, respectively.<br /><br />The Company recorded impairments of $nil, $97.1 million and $0.4 million in the years to December 31, 2009, 2008 and 2007 respectively, recorded within Selling, general and administrative costs. In 2008 the Company recognized impairment charges of $97.1 million, of which $94.6 million related to the write-down of its DYNEPO intangible asset to its fair value ($nil). Changes in the external environment, including the launch of several competing bio-similars at lower prices made DYNEPO uneconomic for the Company. Accordingly Company has decided to stop commercializing DYNEPO. Product sales were wound down over the second half of 2008 as all patients were transferred off DYNEPO by the end of 2008. The fair value of DYNEPO was determined using an expected present value technique. The impairment charges relate to the Specialty Pharmaceuticals reportable segment.<br /><br />Management estimates that the annual amortization charge in respect of intangible assets held at December 31, 2009 will be approximately $140 million for each of the five years to December 31, 2014. Estimated amortization expense can be affected by various factors including future acquisitions, disposals of product rights, regulatory approval and subsequent amortization of the acquired IPR&D projects, foreign exchange movements and the technological advancement and regulatory approval of competitor products.</p></div> </NonNumbericText> |
| <NonNumericTextHeader> 15. Other intangible assets, net December 31,December </NonNumericTextHeader> |
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