the grounds of materiality.
Fair value adjustments primarily relate to:
- the recognition of intangible assets totaling $3,085.8 million, primarily represented by developed technology in respect of the pediatric indication of VYVANSE in the US ($1,133.3 million) and in-process research and development in respect of VYVANSE for non-pediatric patients in the US and VYVANSE in the RoW ($1,943.3 million);
- deferred tax liabilities of $1,202.4 million in respect of temporary differences relating to recognized intangible assets; and
- elimination of liabilities relating to deferred revenue in respect of the New River Collaboration Agreements, ($62.6 million), sold warrants ($133.0 million) and share based payment liabilities relating to cash settled SARs ($122.9 million).
The goodwill arising on the acquisition of New River primarily results from anticipated operating synergies from the combination.
If the acquisition had been completed on the first day of 2007, Group revenues for the period to June 30, 2007 would have been $1,103.1 million, and the Group's loss before tax from continuing operations would have been $156.6 million. This reflects the results of the combined entity adjusted for financing costs, the amortization of intangible assets and share based compensation costs as if the acquisition completed on January 1, 2007. The results of New River for the six months to June 30, 2007 as included within the pro forma results of the combined entity include a non-recurring charge of $82.8 million relating to New River's cash settled SARs which were extinguished as a result of the acquisition.
The results of the combined entity include the following adjustments:
(i) an adjustment to eliminate the revenues recognized by New River of $3.0 million for the six months to June 30, 2007 in connection with the New River Collaboration Agreements;
(ii) an adjustment to increase interest expense by $25.3 million for
|SOURCE Shire plc|
Copyright©2007 PR Newswire.
All rights reserved