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INTANGIBLE ASSETS AND GOODWILL (Tables)
 3 Months Ended
Mar. 31, 2013
INTANGIBLE ASSETS AND GOODWILL  
Schedule of components of intangible assets
 
As of March 31, 2013
As of December 31, 2012
 
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Finite-lived intangible assets:
 
 
 
 
 
 
Product brands
$
8,106,401

$
(1,525,134
)
$
6,581,267

$
7,968,318

$
(1,345,367
)
$
6,622,951

Corporate brands
293,681

(27,702
)
265,979

284,287

(25,336
)
258,951

Product rights
2,148,178

(599,639
)
1,548,539

2,110,350

(525,186
)
1,585,164

Partner relationships
182,249

(52,184
)
130,065

187,012

(44,230
)
142,782

Out-licensed technology and other
206,076

(59,991
)
146,085

209,452

(57,507
)
151,945

Total finite-lived intangible assets(1)
10,936,585

(2,264,650
)
8,671,935

10,759,419

(1,997,626
)
8,761,793

Indefinite-lived intangible assets:
 
 
 
 
 
 
Acquired IPR&D
555,386

—

555,386

546,876

—

546,876

$
11,491,971

$
(2,264,650
)
$
9,227,321

$
11,306,295

$
(1,997,626
)
$
9,308,669

____________________________________
(1)
In the first quarter of 2013, the Company recognized a write-off of $22.2 million related to Opana®, a pain relief medication approved in Canada, due to production issues arising in the first quarter of 2013. These production issues resulted in higher spending projections and delayed commercialization timelines which, in turn, triggered the Company’s decision to suspend its launch plans. The Company does not believe this program has value to a market participant. This write-off was recognized in Amortization of intangible assets in the consolidated statements of loss.
Schedule of amortization expense
Three Months Ended
March 31,
2013
2012
Cost of goods sold
$
—

$
2,026

Amortization expense
326,175

200,643

$
326,175

$
202,669

Schedule of estimated aggregate amortization expense for each of the five succeeding years
2013
2014
2015
2016
2017
Amortization expense
$
1,156,545

$
1,088,490

$
1,058,227

$
1,005,899

$
976,289

Schedule of changes in the carrying amount of goodwill
Developed
Markets
Emerging
Markets
Total
Balance, January 1, 2013(a)
$
3,988,795

$
1,152,571

$
5,141,366

Additions(b)
256

35,395

35,651

Adjustments(c)
22,562

(316
)
22,246

Foreign exchange and other
(6,820
)
(27,196
)
(34,016
)
Balance, March 31, 2013
$
4,004,793

$
1,160,454

$
5,165,247

____________________________________
(a)
Effective in the first quarter of 2013, the Company has two reportable segments: Developed Markets and Emerging Markets. Accordingly, the Company has restated prior period segment information to conform to the current period presentation. For further details, see note 18 titled “SEGMENT INFORMATION”.
(b)
Primarily relates to the Natur Produkt acquisition (as described in note 3).
(c)
Primarily reflects the impact of measurement period adjustments related to the Medicis acquisition (as described in note 3).