Amgen 2013 Annual Report Download - page 89

The finite-lived intangible assets acquired are related primarily to the fair values of MN's regulatory approvals and customer relationships with regard to
the marketing of pharmaceutical products and are being amortized on a straight-line basis over their estimated useful lives. The weighted-average useful life of
these intangible assets is eight years.
Goodwill is attributable primarily to MN's expected continued commercial presence in Turkey and other benefits.
Micromet, Inc.
On March 7, 2012, we acquired for cash consideration Micromet, Inc. (Micromet), a publicly held biotechnology company focused on the discovery,
development and commercialization of innovative antibody-based therapies for the treatment of cancer. This transaction provides us with an opportunity to
further expand our oncology pipeline.
The estimated fair value of acquired IPR&D is related to blinatumomab, which is in phase 3 clinical development for the treatment of acute
lymphoblastic leukemia (ALL) and outlicense agreements entered into by Micromet prior to our acquisition of the company where we continue to play an active
role in the development of the respective programs.
During 2012, a non-key program under one of these outlicensing arrangements was terminated and resulted in an impairment charge of $19 million
which was included in Other operating expenses.
The R&D technology rights acquired relate to Micromet's BiTE ® technology platform which has produced various product candidates that are currently
being developed as cancer treatments by Micromet and others and may lead to the development of additional product candidates. The fair value of this
technology is being amortized on a straight-line basis over its estimated useful life of 10 years.
Goodwill is attributable primarily to expected synergies and other benefits from combining Micromet with our oncology development and
commercialization activities.
BioVex Group, Inc.
On March 4, 2011, we acquired all of the outstanding stock of BioVex Group, Inc. (BioVex), a privately held biotechnology company developing
treatments for cancer and for the prevention of infectious disease, including talimogene laherparepvec, a novel oncolytic vaccine in phase 3 clinical
development for the treatment of melanoma. The transaction provides us with an opportunity to expand our efforts to bring novel therapeutics to market.
The acquisition date consideration consisted of $407 million of cash and contingent consideration obligations with an aggregate acquisition date fair
value of $190 million. The contingent consideration obligations are additional payments to be made to the former shareholders of BioVex of up to $575
million contingent upon the achievement of various regulatory and sales milestones with regard to talimogene laherparepvec, including the filing of a Biologics
License Application (BLA) with the FDA; the first commercial sale in each of the United States and the European Union (EU) following receipt of marketing
approval, which includes use of the product in specified patient populations; and upon achieving specified levels of sales. No payments have been made as of
December 31, 2013.
The contingent consideration obligations to make regulatory milestone payments were valued based on assumptions regarding the probability of
achieving the milestones and making the related payments, with such amounts discounted to present value based on our credit risk. The contingent
consideration obligations to make sales milestone payments were valued based on assumptions regarding the probability of achieving specified product sales
thresholds to determine the required payments, with such amounts discounted to present value based on our credit risk. See Note 16, Fair value measurement
for information regarding the estimated fair values of these obligations as of December 31, 2013.
The estimated fair value of acquired IPR&D is related to talimogene laherparepvec. Goodwill is attributable primarily to future economic benefit arising
from other assets acquired that could not be individually identified.
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