FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2012

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

	As of March 31, 2012										As of December 31, 2011

	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	$	171,970		$	171,970	$	—	$	—		$	27,711		$	27,711	$	—	$	—
Available-for-sale equity securities		—			—		—		—			3,364			3,364		—		—
Available-for-sale debt securities:
Corporate bonds		1,049			1,049		—		—			2,974			2,974		—		—

Total financial assets	$	173,019		$	173,019	$	—	$	—		$	34,049		$	34,049	$	—	$	—

Cash equivalents	$	171,970		$	171,970	$	—	$	—		$	27,711		$	27,711	$	—	$	—
Marketable securities		1,049			1,049		—		—			6,338			6,338		—		—

Total financial assets	$	173,019		$	173,019	$	—	$	—		$	34,049		$	34,049	$	—	$	—

Liabilities:
Acquisition-related contingent consideration	$	(421,333	)	$	—	$	—	$	(421,333	)	$	(420,084	)	$	—	$	—	$	(420,084	)

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

			January 1, 2012			Issuances^(a)			Payments^(b)			Unrealized Loss^(c)			Foreign Exchange^(d)			Transfers Into Level 3			Transfers Out of Level 3			March 31, 2012

	Acquisition-related contingent consideration		$	(420,084	)	$	(17,744	)	$	27,500		$	(9,839	)	$	(1,166	)	$	—		$	—		$	(421,333	)

(a): Relates to the Gerot Lannach and Eyetech acquisitions as described above in note 3.
(b): Relates to payments of acquisition-related contingent consideration related to Elidel®/Xerese®.
(c): Recognized as Acquisition-related contingent consideration in the consolidated statements of (loss) income. The balance is primarily driven by fair value adjustments of $6.9 million related to the Elidel®/Xerese® license agreement entered into in June 2011 and $2.2 million related to the iNova acquisition described above in note 3.
(d): Included in Foreign exchange and other in the consolidated statements of (loss) income.

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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