Amortization charges, including the amortization on acquired products, were $58.4 million for the six months to June 30, 2007 (2006: $31.9 million) including intangible asset impairment charges of $0.4m (2006: $0.1 million). The increase in amortization is primarily due to the commencement of amortization of capitalized intangibles for DAYTRANA, ELAPRASE and DYNEPO following their launches in June 2006, July 2006 and March 2007 respectively. The intangible asset impairment charge arose as a result of the economic value and strategic worth of the product concerned being less than its carrying value.
The goodwill impairment charge for the six months to June 30, 2007 was $80.9 million, (2006: $nil). The impairment charge on goodwill arising on the acquisition of BioChem Pharma Inc, primarily reflects the after tax value of 3TC and Zeffix royalty income received over the six months ended June 30, 2007.
Integration costs (included in selling, general and administrative expenses)
For the six months to June 30, 2007 Shire incurred $2.7 million of costs associated with the integration of the New River business (2006: $3.9 million relating to the TKT acquisition). New River is now fully integrated and no further integration costs are anticipated.
Gain on sale of product rights
For the six months to June 30, 2007 Shire recognized a gain on the disposal of certain non-core product rights of $5.0 million (2006: $nil).
For the six months to June 30, 2007 Shire received investment revenue of $34.7 million (2006: $24.2 million). Investment revenue primarily related to interest received on cash balances. Investment revenue for the six months to June 30, 2007 is significantly higher than for the six months ending June 30, 2006 due to increases in the US dollar interest rate and higher average cash balances.
For the six months to June 30, 2007 Shire incurred finance costs of
|SOURCE Shire plc|
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