Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2013

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Other Intangible Assets Disclosure

8.       Other intangible assets, net

		September 30,	December 31,
		2013	2012
		$’M	$’M
		________________	________________
Amortized intangible assets
	Intellectual property rights acquired for currently marketed products	2,467.9	2,462.0
	Acquired product technology	710.0	710.0
	Other intangible assets	45.3	44.5
		________________	________________
		3,223.2	3,216.5
Unamortized intangible assets
	Intellectual property rights acquired for IPR&D	952.8	231.0
		________________	________________
		4,176.0	3,447.5
Less: Accumulated amortization		(1,200.0)	(1,059.4)
		________________	________________
		2,976.0	2,388.1
		________________	________________

The change in the net book value of other intangible assets for the nine monthsto September 30, 2013and 2012is shown in the table below:

	Other intangible assets
	2013	2012
	$’M	$’M
	________________	________________
As at January 1,	2,388.1	2,493.0
Acquisitions	733.2	281.5
Amortization charged	(136.1)	(147.3)
Impairment charges	(19.9)	(27.0)
Foreign currency translation	10.7	(6.6)
	________________	________________
As at September 30,	2,976.0	2,593.6
	________________	________________

In the nine months to September 30, 2013 the Company acquired intangible assets totaling $733.2 million, relating to intangible assets acquired with SARcode, Premacure and Lotus (see Note 2 for further details).

In the second quarter of 2013 the Company reviewed certain IPR&D intangible assets acquired through Movetis N.V. (“Movetis”) for impairment and recognized an impairment charge of $19.9 million (2012: $27.0 million) recorded within R&D in the consolidated income statement, to write-down these IPR&D assets to their fair value. The fair values of these assets were determined using the income approach, which used significant unobservable (Level 3) inputs (see Note 16 for further details).

Management estimates that the annual amortization charge in respect of intangible assets held at September 30, 2013will be approximately $170million for each of the five years to September 30, 2018.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.