Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2012

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Other Intangible Assets Disclosure

6.       Other intangible assets, net

		September 30,	December 31,
		2012	2011
		$’M	$’M
		________________	________________
Amortized intangible assets
	Intellectual property rights acquired for currently marketed products	2,573.2	2,500.7
	Acquired product technology	710.0	710.0
	Other intangible assets	44.3	23.2
		________________	________________
		3,327.5	3,233.9
Unamortized intangible assets
	Intellectual property rights acquired for IPR&D	273.8	119.8
		________________	________________
		3,601.3	3,353.7
Less: Accumulated amortization		(1,007.7)	(860.7)
		________________	________________
		2,593.6	2,493.0
		________________	________________

As at September 30, 2012 the net book value of intangible assets allocated to the SP segment was $ 1,425.1 million (December 31, 2011: $1,348.3 million),to the HGT segment was $482.6 million (December 31, 2011: $453.2 million) and to the RM segment was $685.9 million (December 31, 2011: $691.5 million).

The change in the net book value of other intangible assets for the nine monthsto September 30, 2012 and 2011is shown in the table below:

	Other intangible assets
	2012	2011
	$’M	$’M
	________________	________________
As at January 1,	2,493.0	1,978.9
Acquisitions	281.5	717.1
Amortization charged	(147.3)	(120.5)
Impairment charges	(27.0)	(16.0)
Foreign currency translation	(6.6)	2.2
	________________	________________
As at September 30,	2,593.6	2,561.7
	________________	________________

In the nine months to September 30, 2012 the Company acquired intangible assets totaling $281.5 million, principally relating to intangible assets acquired with FerroKin and from Pervasis (see Note 2) and the license acquired from Mt. Sinai School of Medicine of New York University(see Note 11). The weighted average amortization period of acquired amortizable intangible assets is 7 years.

The Company reviews its intangible assets for impairment whenever events or circumstancessuggest that their carrying value may not be recoverable. In the second quarter of 2012, theCompany recorded an impairment charge of $27.0 million to write-down its RESOLOR IPR&Dassets to their fair value. In the three months to September 30, 2012, the Company reviewedthe recoverability of its RESOLOR intangible assets (comprising IPR&D assets with acarrying value of $81.6 million and an amortizing intangible asset for the RESOLOR currentlymarketed product with a carrying value of $252.4 million). Based on estimates andcircumstances at September 30, 2012 the Company determined that its RESOLOR intangibleassets remained recoverable. However, it is reasonably possible that changes tocircumstances, estimates or intentions existing at September 30, 2012 could result in therecognition of a further impairment loss in respect of the Company's RESOLOR intangibleassets in future periods.

Management estimates that the annual amortization charge in respect of intangible assets held at September 30, 2012 will be approximately $202million for each of the five years to September 30, 2017.Estimated amortization expense can be affected by various factors including future acquisitions, disposals of product rights, regulatory approval and subsequent amortization of acquired IPR&D projects, foreign exchange movements and the technological advancement and regulatory approval of competitor products.