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Intangible Assets and Goodwill
3 Months Ended
Mar. 31, 2012
Intangible Assets and Goodwill [Abstract]  
Intangible Assets and Goodwill
4.      In-process research and development and goodwill

In mid-March 2012, Pfizer informed the Company of its intent to cease development of one of its two development programs with respect to an SBI-087 product candidate. In April 2012, Pfizer informed the Company of its intent to cease development of the second program, and that it intended to terminate its development and commercialization agreement with the Company. The Company considered this initial communication a potential indicator of an impairment of the related SBI-087 IPR&D asset. As a result of these communications, the Company has assessed the fair value of this asset. As part of this assessment, the Company considered the impact of Pfizer’s decision, along with the Company’s current intentions not to pursue further development of this asset. As a result of this impairment analysis, the Company recorded an impairment charge of $9.6 million, which represents the entire carrying value of the SBI-087 IPR&D asset as of March 31, 2012. This charge is classified in the Company’s statement of operations as impairment of in-process research and development, within the Company’s Biosciences segment.
 
The Company determined the fair value of the SBI-087 IPR&D asset by utilizing an income approach. The Company’s cash flow projections include management’s estimates related to the costs to develop the acquired technology into commercially viable products, the resulting revenue from the projects, and discounting the net cash flows to present value. The revenue and costs projections were adjusted to reflect the probability of successful new drug development. Additionally, the projections considered the relevant market sizes and growth factors, expected trends in technology, and the nature and expected timing of new product introductions. The rates utilized to discount the net cash flows to their present value were commensurate with the stage of development of the SBI-087 product candidate and uncertainties in the economic estimates used in the projections described above.

As a result of the impairment of the SBI-087 IPR&D asset, the Company also performed an interim impairment analysis of goodwill as of March 31, 2012.  Based on the interim impairment assessment, the estimated fair value of the reporting unit was in excess of carrying value, and therefore no impairment of goodwill was recorded.