AbbVie 2012 Annual Report Download - page 80

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required for the achievement of certain development and regulatory milestones associated with the
chronic kidney disease compound in development.
In the fourth quarter of 2011, AbbVie entered into a collaboration with Reata for the joint
development and commercialization of second-generation oral antioxidant inflammation modulators
resulting in a charge to IPR&D of $400 million, which was paid in the first quarter of 2012.
On October 17, 2012, Reata informed AbbVie that it is discontinuing the Phase III clinical study for
bardoxolone methyl for chronic kidney disease. Reata and AbbVie will closely examine the data from
this study to determine whether there is an appropriate path forward for the development of
bardoxolone methyl in chronic kidney disease or other indications. In the fourth quarter of 2012,
AbbVie recorded a charge of $52 million in other (income) expense, net for the impairment of the
equity investment in Reata.
Seattle Genetics, Inc.
In October 2012, AbbVie recorded a charge to IPR&D of $28 million as a result of entering into a
two-year collaboration agreement with Seattle Genetics, Inc. to research, develop and commercialize up
to three compounds with Antibody-Drug Conjugate approaches. Additional payments of up to
$220 million for each licensed compound may be required based on the achievement of specified
development, regulatory and commercial milestones under this agreement.
Action Pharma A/S
In May 2012, AbbVie recorded a charge to IPR&D of $110 million as a result of the acquisition of
ABT-719 (previously referred to as AP214), a drug under development for the prevention of acute
kidney injury associated with major cardiac surgery in patients at increased risk.
Galapagos NV
In February 2012, AbbVie recorded a charge to IPR&D of $150 million as a result of entering into a
global collaboration with Galapagos NV to develop and commercialize a next-generation, oral Janus
Kinase 1 (JAK1) inhibitor in Phase II development with the potential to treat multiple autoimmune
diseases. Additional payments of approximately $1.2 billion could be required for the achievement of
certain development, regulatory and commercial milestones under this agreement.
Biotest AG
In June 2011, AbbVie entered into a global agreement with Biotest AG to develop and commercialize
an anit-CD4, a treatment for rheumatoid arthritis and psoriasis, resulting in an $85 million charge to
IPR&D. AbbVie could, in the future, be required to make additional payments totaling up to
$395 million based on the achievement of certain development, regulatory and commercial milestones
under this agreement.
Neurocrine Biosciences, Inc.
In June 2010, AbbVie entered into an exclusive worldwide agreement with Neurocrine Biosciences, Inc.
to develop and commercialize a product for the treatment of endometriosis, resulting in a $75 million
charge to IPR&D. AbbVie could, in the future, be required to make additional payments of up to $500
million based on the achievement of certain development, regulatory and commercial milestones under
this agreement.
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