Goodwill and Intangible Assets

The Company’s amortizable and unamortizable intangible assets at December 31, 2018 and 2017, respectively, are as follows:



	2018										2017
Goodwill and Intangible Assets:	Gross Value		Accumulated Amortization			Impairment			Net Carrying Amount		Gross Value		Accumulated Amortization			Net Carrying Amount

Amortizable intangible assets:
Acquired developed technology - Noctiva	$	73,111	$	(7,024	)	$	(66,087	)	$	—	$	73,111	$	(1,401	)	$	71,710
Acquired developed technology - Vazculep	12,061		(10,432		)	—			1,629		12,061		(9,616		)	2,445
Acquired product marketing rights ⁽¹⁾	—		—			—			—		16,600		(2,132		)	14,468
Acquired developed technology ⁽¹⁾	—		—			—			—		4,300		(634		)	3,666
Total amortizable intangible assets	$	85,172	$	(17,456	)	$	(66,087	)	$	1,629	$	106,072	$	(13,783	)	$	92,289

Unamortizable intangible assets:
Goodwill	$	18,491	$	—		$	—		$	18,491	$	18,491	$	—		$	18,491
Total unamortizable intangible assets	$	18,491	$	—		$	—		$	18,491	$	18,491	$	—		$	18,491

⁽¹⁾ These intangible assets were purchased by the buyer as part of the disposition of the pediatrics products on February 16, 2018. See Note 16: Divestiture of the Pediatric Assets.

The Company recorded amortization expense related to amortizable intangible assets of $6,619, $3,659 and $13,888 for the years ended December 31, 2018, 2017 and 2016, respectively.

During the year ended December 31, 2017, the Company acquired $73,111 in developed technology as part of the Exclusive License and Assignment Agreement (ELAA) with Serenity Pharmaceuticals, LLC. The aggregate cost was composed of an upfront payment of $50,000, an accrued payment of $20,000 which was paid for Noctiva during the year ended December 31, 2018, and $3,111 of transaction costs. The Company amortizes the developed technology over a 13 year period, which began October 1, 2017. During the fourth quarter 2018, certain conditions came to light, largely the lack of a meaningful increase in Noctiva prescriptions despite the substantial investment of resources, which indicated that the carrying value of the asset, may not be fully recoverable. As such, the Company performed an impairment test based on a comparison of the pretax discounted cash flows expected to be generated by the asset, which is a Level 3 fair value estimate, to the recorded value of the asset and concluded that the associated cash flows did not support any of the carrying value of the intangible asset and the Company recorded a full impairment charge of $66,087 at December 31, 2018 related to the acquired developed technology associated with Noctiva. The February 6, 2019 Chapter 11 bankruptcy filing of Specialty Pharma, the subsidiary which markets, sells and distributes Noctiva, confirmed management’s conclusion on the impairment. This impairment charge is included in the line “Impairment of intangible asset” in the consolidated statements of (loss) income.

Amortizable intangible assets are amortized over their estimated useful lives, which range from three to fifteen years, using the straight-line method. At December 31, 2018, total future amortization of intangible assets for the next five years is as follows:



Estimated Amortization Expense:	Amount

2019	$	815
2020	814
2021	—
2022	—
2023	—