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Acquisitions, Research Collaborations and License Agreements (Tables)

3 Months Ended

Mar. 31, 2020

The estimated fair value of assets acquired and liabilities assumed from ArQule is as follows:




($ in millions)	January 16, 2020
Cash and cash equivalents	$	145
IPR&D MK-1026 (formerly ARQ 531) ⁽¹⁾	2,280
IPR&D MK-7075 (formerly ARQ 092) ⁽¹⁾	170
Licensing arrangement for ARQ 087	80
Deferred income tax liabilities	(434		)
Other assets and liabilities, net	35
Total identifiable net assets	2,276
Goodwill ⁽²⁾	414
Consideration transferred	$	2,690


⁽¹⁾	The fair values of the identifiable intangible assets related to in-process research and development (IPR&D) were determined using an income approach. The future net cash flows were discounted to present value utilizing a discount rate of 12.5%. Actual cash flows are likely to be different than those assumed.

⁽²⁾

The goodwill was allocated to the Pharmaceutical segment and is not deductible for tax purposes.