Merck 2014 Annual Report Download - page 210

205CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
Marketing authorizations, patents, licenses and similar
rights, brands, trademarks and other
The changes in the scope of consolidation comprise additions to
intangible assets resulting from the acquisition of AZ Electronic
Materials S.A., Luxembourg. A detailed presentation of this acqui-
sition can be found in Note [4].
The net carrying amount of “Marketing authorizations, patents,
licenses and similar rights, brands, trademarks and other” with
finite
useful lives amounting to €5,398.9 million (2013: €4,940.1
million) mainly included the identified and capitalized assets from
the purchase price allocations for the acquisition of AZ Electronic
Materials S.A., the Millipore Corporation and Serono SA. The vast
majority was attributable to marketing authorizations of active
pharmaceutical ingredients and technologies. The remaining useful
lives of these assets ranged between 0.5 and 19.3 years.
The additions to intangible assets with finite useful lives
amounted to €62.1 million in 2014 (2013: €7.0 million). The
Biopharmaceuticals division accounted for €59.0 million of this
figure. Most of this amount was attributable to the license agree-
ment with Auxogyn regarding the Eeva test, to a cooperation
agreement with Sutro Biopharma, USA , to develop antibody active
ingredient conjugates in oncology, and to marketing rights for
Glucophage® and Euthyrox® in Russia, for Rovatitan® in Korea and
for Cetrotide®
in Japan.
The item “Marketing authorizations, patents, licenses and sim-
ilar rights, brand names, trademarks and other” with indefinite
useful lives primarily related to rights that the Group had acquired
for active ingredients, products or tech
nologies that were still in
the research and development stage.
Owing to the uncertainty as
to the extent to which these projects will ultimately lead to mar-
ketable products, the period for which the resulting capitalized
assets would generate an economic benefit for the Group could
not yet be determined. Amortization will only begin once the
products receive marketing approval and is carried out on a
straight- line basis over the shorter period of the patent or contract
term or the expected useful life.
In 2014, additions to intangible assets with indefinite useful
lives amounted to €38.6 million (2013: €64.5 million) and were
exclusively attributable to the Biopharmaceuticals division. The
amounts related to further milestone payments to Symphogen A/S,
Denmark, for the acquisition of a license to an oncological com-
pound. Additionally, the Group entered into two new licensing agree-
ments with Mersana Therapeutics Inc., USA, and Sutro Biopharma,
USA, in oncology.
Goodwill
Goodwill was incurred mainly in connection with the acquisition
of AZ Electronic Materials S.A., the Millipore Corporation and
Serono SA. The changes in goodwill caused by foreign exchange
rates resulted almost exclusively from translating the goodwill of
AZ Electronic Materials S.A. and the Millipore Corporation, part of
which is carried in U.S. dollars, into the reporting currency.
In connection with the sale of the Discovery and Development
Solutions business field of the Life Science division to Euro fins
Scientific S.A., Luxembourg, in 2013 goodwill allocated to the
business field in the amount of €16.5 million was reclassified to
“assets held for sale” and disposed of after the closing in the first
quarter of 2014.