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Other Intangible Assets, Net
 6 Months Ended
Jun. 30, 2011
Other Intangible Assets, Net  
Intangible Assets Disclosure

8.       Other intangible assets, net

  June 30,December 31,
  20112010
  $’M $’M
  ________________________________
Amortized intangible assets  
 Intellectual property rights acquired for currently marketed products2,562.22,516.4
 Acquired product technology710.0-
 Other intangible assets24.222.0
  ________________________________
  3,296.42,538.4
Unamortized intangible assets  
 Intellectual property rights acquired for In-process R&D (“IPR&D”)150.6139.7
  ________________________________
  3,447.02,678.1
    
Less: Accumulated amortization(767.6)(699.2)
  ________________________________
  2,679.41,978.9
  ________________________________

At June 30, 2011 the net book value of intangible assets allocated to the SP segment was $ 2,184.5 million (December 31, 2010: $1,482.9 million) and in the HGT segment was $494.9 million (December 31, 2010: $496.0 million).

 

The change in the net book value of other intangible assets for the six months to June 30, 2011 and 2010 is shown in the table below:

 Other intangible assets
 20112010
 $’M$’M
 ________________________________
As at January 1, 1,978.91,790.7
Acquisitions711.52.7
Amortization charged (73.6)(69.3)
Foreign currency translation62.6(71.0)
 ________________________________
As at June 30, 2,679.41,653.1
 ________________________________

In the six months to June 30, 2011 the Company acquired intangible assets totaling $711.5 million, principally relating to DERMAGRAFT product technology acquired with ABH (see Note 2 for further details). The weighted average amortization period of acquired amortizable intangible assets is 18 years.

 

Management estimates that the annual amortization charge in respect of intangible assets held at June 30, 2011 will be approximately $183 million for each of the five years to June 30, 2016. Estimated amortization expense can be affected by various factors including future acquisitions, disposals of product rights, regulatory approval and subsequent amortization of the acquired IPR&D projects, foreign exchange movements and the technological advancement and regulatory approval of competitor products.