ABII » Topics » Amortization of Intangible Assets

This excerpt taken from the ABII 10-K filed Mar 12, 2010.

Amortization of Intangible Assets

Amortization of intangibles assets totaled $39.8 million, $39.4 million and $38.6 million for the years ended December 31, 2009, 2008 and 2007, respectively, and included $31.5 million in each of the years for amortization associated with the U.S. rights to Abraxane®. The increase in 2008 amortization of intangible assets from 2007 relates to incremental amortization associated with the acquisition of Shimoda Biotech and Platco Technologies in April 2008.

This excerpt taken from the ABII 10-Q filed May 8, 2009.

Amortization of Intangible Assets

Amortization of intangible assets for the three months ended March 31, 2009 was $9.9 million compared to $9.7 million for the same period in the prior year.

These excerpts taken from the ABII 10-K filed Mar 6, 2009.

Amortization of Intangible Assets

Amortization of intangibles assets totaled $39.4 million, $38.6 million and $27.3 million for the years ended December 31, 2008 2007 and 2006, respectively, and included $31.5 million in each of 2008 and 2007 and $22.2 million in 2006 of amortization associated with the U.S. rights to Abraxane®. The increase in 2008 amortization of intangible assets from 2007 relates to incremental amortization associated with the acquisition of Shimoda Biotech and Platco Technologies in April 2008 and the increase in the 2007 amortization from 2006 relates to the fact that 2006 did not include a full year of amortization associated with the U.S. rights to Abraxane.

Amortization of Intangible Assets

Amortization of intangibles assets totaled $39.4 million, $38.6 million and
$27.3 million for the years ended December 31, 2008 2007 and 2006, respectively, and included $31.5 million in each of 2008 and 2007 and $22.2 million in 2006 of amortization associated with the U.S. rights to AbraxaneFACE="Times New Roman" SIZE="1">®
. The increase in 2008 amortization of intangible assets from 2007 relates to incremental amortization associated with the acquisition of Shimoda Biotech and Platco Technologies in April 2008
and the increase in the 2007 amortization from 2006 relates to the fact that 2006 did not include a full year of amortization associated with the U.S. rights to Abraxane.

FACE="Times New Roman" SIZE="2">Acquired in-Process Research and Development

In connection with the purchase of Shimoda
Biotech and Platco Technologies in April 2008, we acquired certain research and development projects that were required to be expensed in accordance with generally accepted accounting principles. Approximately $13.9 million of the purchase price was
expensed as in-process research and development for projects that, as of the acquisition date, had not yet reached technological or regulatory feasibility and had no alternative future uses in their current states.

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The $83.4 million of in-process research and development in 2006 resulted from the 2006 Merger. Research
and development activities that had not yet reached technological or regulatory feasibility and had no alternative future use in their current state at the merger date were expensed.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Merger Related Costs

Merger
related costs of $16.7 million in 2006 included (i) non-cash stock compensation expense related to shares issued to ABI employees in the 2006 Merger and (ii) direct merger and transaction-related costs.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Litigation Costs

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">On June 13, 2008, a jury ruled that we infringed upon one of Élan’s patent, which
runs until 2011, and awarded Élan $55.2 million in damages for sales of Abraxane ® through the judgment date. We have filed various post-trial motions and are appealing the jury
ruling (See Note 13 – Contingencies to the condensed consolidated financial statements for further discussion). For the year ended December 31, 2008, we expensed $57.6 million for this matter, which includes $2.4 million for
interest expense.

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