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This excerpt taken from the LLY 10-K filed Feb 22, 2010. Posilac
On October 1, 2008, we acquired the worldwide rights to the
dairy cow supplement Posilac, as well as the product’s
supporting operations, from Monsanto Company (Monsanto). The
acquisition of Posilac provides us with a product that
complements those of our animal health business. Under the terms
of the agreement, we acquired the rights to the Posilac brand,
as well as the product’s U.S. sales force and
manufacturing facility, for an aggregate purchase price of
$403.9 million, which included a $300.0 million
upfront payment, transaction costs, and an accrual for
contingent consideration to Monsanto based on estimated future
Posilac sales for which payment is considered likely beyond a
reasonable doubt.
This acquisition has been accounted for as a business
combination under the purchase method of accounting. We
allocated $204.3 million to identifiable intangible assets
related to Posilac, $167.6 million to inventories, and
$99.5 million of the purchase price to property and
equipment. We also assumed $67.5 million of liabilities.
Substantially all of the identifiable intangible assets are
being amortized over their estimated remaining useful lives of
20 years. The amount allocated to each of the intangible
assets acquired is deductible for tax purposes.
These excerpts taken from the LLY 10-K filed Feb 27, 2009. Posilac
On October 1, 2008, we acquired the worldwide rights to the
dairy cow supplement Posilac, as well as the product’s
supporting operations, from Monsanto Company (Monsanto). The
acquisition of Posilac provides us with a product that
complements those of our animal health business. Under the terms
of the agreement, we acquired the rights to the Posilac brand,
as well as the product’s U.S. sales force and
manufacturing facility, for an aggregate purchase price of
$403.9 million, which includes a $300.0 million
upfront payment, transaction costs, and an accrual for
contingent consideration to Monsanto based on estimated future
Posilac sales for which payment is considered likely beyond a
reasonable doubt.
This acquisition has been accounted for as a business
combination under the purchase method of accounting. We
allocated $204.3 million to identifiable intangible assets
related to Posilac, $167.6 million to inventories, and
$99.5 million of the purchase price to property and
equipment. We also assumed $67.5 million of liabilities.
Substantially all of the identifiable intangible assets are
being amortized over their estimated remaining useful lives of
20 years. The amount allocated to each of the intangible
assets acquired is deductible for tax purposes.
Posilac On October 1, 2008, we acquired the worldwide rights to the dairy cow supplement Posilac, as well as the product’s supporting operations, from Monsanto Company (Monsanto). The acquisition of Posilac provides us with a product that complements those of our animal health business. Under the terms of the agreement, we acquired the rights to the Posilac brand, as well as the product’s U.S. sales force and manufacturing facility, for an aggregate purchase price of $403.9 million, which includes a $300.0 million upfront payment, transaction costs, and an accrual for contingent consideration to Monsanto based on estimated future Posilac sales for which payment is considered likely beyond a reasonable doubt. This acquisition has been accounted for as a business combination under the purchase method of accounting. We allocated $204.3 million to identifiable intangible assets related to Posilac, $167.6 million to inventories, and $99.5 million of the purchase price to property and equipment. We also assumed $67.5 million of liabilities. Substantially all of the identifiable intangible assets are being amortized over their estimated remaining useful lives of 20 years. The amount allocated to each of the intangible assets acquired is deductible for tax purposes.
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