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Impairment of Intangible Asset (Notes)
9 Months Ended
Sep. 30, 2019
Impairment of Intangible Asset [Abstract]  
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]
Indefinite lived intangible assets are also tested annually for impairment and whenever indicators of impairment are present. When performing the impairment assessment, the Company first assesses qualitative factors to determine whether it is necessary to recalculate the fair value of its intangible assets. If management believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the intangible assets is less than its carrying amount, the Company calculates the asset’s fair value. If the carrying value of the asset exceeds its fair value, then the intangible asset is written down to its fair value. See Note 9, Impairment of Intangible Asset, for additional information.

Goodwill Impairment:  Goodwill is not amortized, but is tested at least annually for impairment at the reporting unit level.  The Company has determined that the reporting unit is the single operating segment disclosed in its current financial statements. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value.  The first step in the impairment process is to determine the fair value of the reporting unit and then compare it to the carrying value, including goodwill.  If the fair value exceeds the carrying value, no further action is required and no impairment loss is recognized.  Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances that would indicate that, more likely than not, the carrying value of goodwill has been impaired.
9.      Impairment of Intangible Asset
 
In 2007, Lexicon entered into a series of related agreements providing for the financing of the clinical development of certain of its drug candidates (the “Programs”), including LX1031 and LX1033. Under the financing arrangement, Lexicon licensed to Symphony Icon, Inc. (“Symphony Icon”) the Company’s intellectual property rights relating to the Programs. In 2010, Lexicon exercised an exclusive purchase option to acquire all of the equity of Symphony Icon, thereby reacquiring the Programs.
Intangible assets which were included in the Programs and related to in-process research and development (“IPR&D”) were recognized and considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. These indefinite‑lived assets are not amortized, but are tested for impairment on an annual basis, as well as between annual tests if there are changes in circumstances that would indicate a reduction in the fair value of the IPR&D projects to less than their respective carrying amounts. A deferred tax liability was recognized related to the tax impact of future amortization or possible impairments associated with the identified intangible assets, which are not deductible for tax purposes.
The Company determined that a triggering event occurred upon execution of the Termination Agreement with Sanofi and the Company’s resulting decision to substantially reallocate resources from the development of certain programs, including LX1031 and LX1033 for irritable bowel syndrome, to the development of sotagliflozin. In connection with such triggering event, the Company determined that its LX1031 and LX1033 programs for irritable bowel syndrome, collectively an intangible asset, were considered to be impaired and recorded an impairment charge of $28.6 million to IPR&D and a related income tax benefit of $6.0 million in the condensed consolidated statements of comprehensive income (loss) during the three months ended September 30, 2019. The impairment reduced the remaining book value to zero.