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This excerpt taken from the ELN 6-K filed Mar 30, 2009. Prialt
intangible asset impairment
The impairment charge of $197.5 million (comprised of
$194.0 million of acquired IPR&D costs and
$3.5 million of patents and licences) relating to our
Prialt intangible assets was as a result of lower
projected sales. In light of additional data that became
available in 2007, we adjusted our sales forecast for
Prialt, which caused projected future cumulative
discounted cash flows to be lower than the carrying value of the
intangible assets, thus indicating that the carrying value was
not recoverable. Consequently, the impairment charge was
calculated as the excess of the carrying value over the
discounted net present value. As the impairment analysis is
principally based on estimated cash flows, actual outcomes could
vary significantly from such estimates. If we were to use
different estimates, then an additional material impairment
charge could arise. At 31 December 2008, the net carrying
value of the Prialt intangible asset was
$51.4 million.
This excerpt taken from the ELN 6-K filed Mar 31, 2008. Prialt
intangible asset impairment
The impairment charge of $197.5 million (comprised of
$194.0 million of acquired IPR&D costs and
$3.5 million of patents and licences) relating to our
Prialt intangible assets was as a result of lower
projected sales. In light of additional data becoming available
in 2007, we adjusted our sales forecast for Prialt, which
caused projected future cumulative discounted cash flows to be
96 Elan
Corporation, plc 2007 Annual Report
Table of Contents
Notes to the
Consolidated Financial Statements
lower than the carrying value of the intangible assets, thus
indicating that the carrying value was not recoverable.
Consequently, the impairment charge was calculated as the excess
of the carrying value over the discounted net present value. As
the impairment analysis is principally based on estimated cash
flows, actual outcomes could vary significantly from such
estimates. If we were to use different estimates, then an
additional material impairment charge could arise. At
31 December 2007, the net carrying value of the Prialt
intangible asset was $57.8 million.
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