FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2013

FAIR VALUE MEASUREMENTS

Schedule of components and classification of financial assets and liabilities measured at fair value

	As of March 31, 2013										As of December 31, 2012
	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	78,184		$	78,184	$	—	$	—		$	306,604		$	306,604	$	—	$	—
Available-for-sale equity securities	10,092			10,092		—		—			4,410			4,410		—		—
Available-for-sale debt securities:
Auction rate floating securities	—			—		—		—			7,167			—		—		7,167
Total financial assets	$	88,276		$	88,276	$	—	$	—		$	318,181		$	311,014	$	—	$	7,167
Cash equivalents	$	78,184		$	78,184	$	—	$	—		$	306,604		$	306,604	$	—	$	—
Marketable securities	10,092			10,092		—		—			11,577			4,410		—		7,167
Total financial assets	$	88,276		$	88,276	$	—	$	—		$	318,181		$	311,014	$	—	$	7,167
Liabilities:
Acquisition-related contingent consideration	$	(489,425	)	$	—	$	—	$	(489,425	)	$	(455,082	)	$	—	$	—	$	(455,082	)

Schedule of reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs (Level 3)

	Balance, January 1, 2013			Issuances(a)			Payments(b)		Net unrealized Gain(c)		Foreign Exchange(d)		Transfers Into Level 3		Transfers Out of Level 3		Balance, March 31, 2013
Acquisition-related contingent consideration	$	(455,082	)	$	(59,064	)	$	21,692	$	2,185	$	844	$	—	$	—	$	(489,425	)

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(a) Relates primarily to the Eisai acquisition as described in note 3.

(b) Relates primarily to payments of acquisition-related contingent consideration related to the Elidel®/Xerese®/Zovirax® agreement entered into in June 2011.

(c) For the three-months ended March 31, 2013, a net gain of $2.2 million was recognized as Acquisition-related contingent consideration in the consolidated statements of loss. The Acquisition-related contingent consideration net gain was primarily driven by a net gain related to the Elidel®/Xerese®/Zovirax® agreement entered into with Meda Pharma SARL (“Meda”) in June 2011. In April 2013, Mylan Inc. launched a generic Zovirax® ointment, which was earlier than previously anticipated by the Company. Also, in April 2013, the Company entered into an agreement with Actavis, Inc. (“Actavis”) to launch the authorized generic ointment for Zovirax®. See note 19 titled “SUBSEQUENT EVENTS” for further information regarding the agreements with Actavis. As a result of these events, the projected revenue forecast was adjusted, resulting in an Acquisition-related contingent consideration net gain of $3.1 million. This net gain was partially offset by fair value adjustments related to other acquisitions, including accretion for the time value of money.

(d) Included in other comprehensive (loss) income.