Intangible Assets, Net

9 Months Ended

Sep. 30, 2013

H. Intangible Assets, Net

In June 2013, we acquired the MuGard Rights from Access and recorded $16.9 million to finite-lived intangible assets based on the estimated fair value of the MuGard Rights as of the Acquisition Date.

We will amortize the MuGard Rights using an economic consumption model over ten years, which represents our best estimate of the period over which we expect the majority of the asset’s cash flows to be derived. We believe this is the best approximation of the period over which we will derive the majority of value of the MuGard Rights. We recorded less than $0.1 million of amortization related to the MuGard Rights in cost of product sales in our condensed consolidated statements of operations for each of the three and nine months ended September 30, 2013 and as a result, our intangible asset related to the MuGard Rights remained at $16.9 million as of September 30, 2013.

Intangible assets are reviewed for impairment at least annually and whenever facts or circumstances suggest that the carrying value of these assets may not be recoverable. Our policy is to identify and record impairment losses, if necessary, on intangible assets when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets.

We expect future annual amortization expense related to our intangible asset to be as follows (in thousands):

Period	Estimated Amortization Expense

Year Ended December 31, 2013	$	41
Year Ended December 31, 2014	660
Year Ended December 31, 2015	915
Year Ended December 31, 2016	1,215
Year Ended December 31, 2017	1,616
Year Ended December 31, 2018	2,103
Thereafter	10,316
Total	$	16,866