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Goodwill and other intangible assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill The changes in the carrying amounts of goodwill were as follows (in millions):
| December 31,
| 2024 |  | 2023
Beginning balance | $ | 18,629 |  |  | $ | 15,529 |
Changes to goodwill resulting from acquisitions, net(1) | 25 |  |  | 3,089 |
Foreign currency translation adjustments | (17) |  |  | 11 |
Ending balance | $ | 18,637 |  |  | $ | 18,629 |
____________ (1) For 2024, changes to Goodwill consisted of measurement-period adjustments related to our Horizon acquisition. For 2023, changes to Goodwill primarily consisted of goodwill resulting from our Horizon acquisition. See Note 4, Acquisitions and divestitures. Other intangible assets Other intangible assets consisted of the following (in millions):
| December 31,
| 2024 |  | 2023
| Gross carrying amounts |  | Accumulated amortization |  | Other intangible assets, net |  | Gross carrying amounts |  | Accumulated amortization |  | Other intangible assets, net
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Developed-product-technology rights | $ | 48,611 |  |  | $ | (22,594) |  |  | $ | 26,017 |  |  | $ | 48,631 |  |  | $ | (18,049) |  |  | $ | 30,582 |
Licensing rights | 3,875 |  |  | (3,392) |  |  | 483 |  |  | 3,865 |  |  | (3,265) |  |  | 600 |
Marketing-related rights | 1,202 |  |  | (1,202) |  |  | — |  |  | 1,339 |  |  | (1,264) |  |  | 75 |
R&D technology rights | 1,374 |  |  | (1,235) |  |  | 139 |  |  | 1,394 |  |  | (1,228) |  |  | 166 |
Total finite-lived intangible assets | 55,062 |  |  | (28,423) |  |  | 26,639 |  |  | 55,229 |  |  | (23,806) |  |  | 31,423 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
In-process research and development | 1,060 |  |  | — |  |  | 1,060 |  |  | 1,218 |  |  | — |  |  | 1,218 |
Total other intangible assets | $ | 56,122 |  |  | $ | (28,423) |  |  | $ | 27,699 |  |  | $ | 56,447 |  |  | $ | (23,806) |  |  | $ | 32,641 |
Developed-product-technology rights consists of rights related to marketed products acquired in acquisitions. Licensing rights primarily consists of contractual rights to receive future milestone, royalty and profit-sharing payments; capitalized payments to third parties for milestones related to regulatory approvals to commercialize products; and upfront payments associated with royalty obligations for marketed products. Marketing-related rights primarily consists of rights related to the sale and distribution of marketed products. R&D technology rights pertain to technologies used in R&D that have alternative future uses. IPR&D consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. All IPR&D projects have major risks and uncertainties associated with the timely and successful completion of the development and commercialization of product candidates, including our ability to confirm safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. We are not permitted to market a human therapeutic without obtaining regulatory approvals, and such approvals require the completion of clinical trials that demonstrate that a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payers, including government healthcare programs and private insurance plans as well as competitive product launches, affect the revenues a product can generate. Consequently, the eventual realized values, if any, of acquired IPR&D projects may vary from their estimated fair values. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval. During the year ended December 31, 2023, the development of AMG 340 acquired in connection with our Teneobio acquisition was terminated, resulting in an impairment charge of $783 million, which was recognized in Other operating expenses in the Consolidated Statements of Income and included in Other items, net, in the Consolidated Statements of Cash Flows. See Note 18, Fair value measurement, for the impact on the related contingent consideration liability. The Company monitors intangible assets for impairment on a quarterly basis. The Developed-product-technology rights intangible asset related to Otezla has a carrying value of $5.2 billion as of December 31, 2024. In January 2025, Otezla was selected by CMS for Medicare price setting under the IRA that will be applicable beginning on January 1, 2027. Future changes to the Company’s estimates of the impact of the price negotiations under the IRA, as well as regulatory, market and competitive developments, could unfavorably impact the Company’s ability to recover the carrying value of the related intangible asset. During the years ended December 31, 2024, 2023 and 2022, we recognized amortization associated with our finite-lived intangible assets of $4.8 billion, $3.2 billion and $2.6 billion, respectively. Amortization of intangible assets is included primarily in Cost of sales in the Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the years ending December 31, 2025, 2026, 2027, 2028 and 2029, is $4.5 billion, $3.9 billion, $3.9 billion, $2.9 billion and $2.2 billion, respectively.

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