Note 10 - Goodwill:


($ amounts in thousands)	March 31, 2012		December 31, 2011

Kali Laboratories, Inc.	$	63,729	$	63,729
Anchen Acquisition		219,703		219,703
Edict Acquisition		29,905		-
	$	313,337	$	283,432

In 2004, we acquired all of the capital stock of Kali Laboratories, Inc., a generic pharmaceutical research and development company, for approximately $142,800 thousand in cash and warrants to purchase 150,000 shares of our common stock valued at approximately $2,500 thousand. The acquisition resulted in goodwill of $63,729 thousand, which was allocated to Par.

As noted in Note 2, "Anchen Acquisition," in 2011 we acquired Anchen for $412,753 thousand in aggregate consideration. Based upon our preliminary purchase price allocation, we recorded $219,703 thousand of incremental goodwill. This goodwill was allocated to Par.

As noted in Note 3, "Edict Acquisition," on February 17, 2012 we acquired Edict, now renamed Par Formulations Private Limited, for $36,600 thousand in aggregate consideration. Based upon our preliminary purchase price allocation, we recorded $29,905 thousand of incremental goodwill. This goodwill was allocated to Par.

In accordance with FASB ASC 350-20-35-30, goodwill is not being amortized, but is tested at least annually, on or about December 31stor whenever events or changes in business circumstances necessitate an evaluation for impairment using a fair value approach. The goodwill impairment test consists of a two-step process. The first step is to identify a potential impairment and the second step measures the amount of impairment, if any. Goodwill is deemed to be impaired if the carrying amount of a reporting unit exceeds its estimated fair value.

The FASB has issued ASU 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. This amendment of Codification will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this amendment, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendment includes a number of examples of events and circumstances for an entity to consider in conducting the qualitative assessment. This amendment to the Codification is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.