XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Identifiable Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2021
Identifiable Intangible Assets | NOTE 5 – Identifiable intangible assets: Identifiable intangible assets consisted of the following:
|  | Gross carrying amount net of impairment |  |  | Accumulated amortization |  |  | Net carrying amount |
|  | June 30, |  |  | December 31, |  |  | June 30, |  |  | December 31, |  |  | June 30, |  |  | December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (U.S. $ in millions) |
Product rights |  | $ | 19,226 |  |  | $ | 19,650 |  |  | $ | 12,171 |  |  | $ | 12,094 |  |  | $ | 7,055 |  |  | $ | 7,556 |
Trade names |  |  | 648 |  |  |  | 621 |  |  |  | 219 |  |  |  | 165 |  |  |  | 429 |  |  |  | 456 |
In process research and development |  |  | 636 |  |  |  | 911 |  |  |  | — |  |  |  | — |  |  |  | 636 |  |  |  | 911 |
Total |  | $ | 20,510 |  |  | $ | 21,182 |  |  | $ | 12,390 |  |  | $ | 12,259 |  |  | $ | 8,120 |  |  | $ | 8,923 |
Product rights and trade names Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various therapeutic categories from various acquisitions with a weighted average life of approximately 10 years. Amortization of intangible assets was $173 million and $249 million in the three months ended June 30, 2021 and 2020, respectively. Amortization of intangible assets was $414 million and $507 million in the six months ended June 30, 2021 and 2020, respectively. IPR&D Teva’s IPR&D are assets that have not yet been approved in major markets. Teva’s IPR&D is comprised mainly of various generic products from the Actavis Generics acquisition of $601 million. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods. In the first six months of 2021, Teva reclassified $162 million of products from IPR&D to product rights, of which $123 million were reclassified in connection with lenalidomide (generic equivalent of Revlimid®). Intangible assets impairments Impairments of long-lived intangible assets for the three months ended June 30, 2021 and 2020, were $195 million and $120 million, respectively. Impairments in the second quarter of 2021 consisted of:
| (a) | Identifiable product rights of $168 million due to: (i) $30 million related to lenalidomide (generic equivalent of Revlimid ® ), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers, and (ii) $138 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; and
| (b) | IPR&D assets of $27 million due to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States.
Impairments in the second quarter of 2020 consisted of:
| (a) | Identifiable product rights of $103 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis Generics; and
| (b) | IPR&D assets of $17 million, mainly due to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate).
Impairments of long-lived intangible assets for the six months ended June 30, 2021 and 2020, were $274 million and $768 million, respectively. Impairments in the first six months of 2021 consisted of:
| (a) | Identifiable product rights of $196 million due to: (i) $30 million related to lenalidomide (generic equivalent of Revlimid ® ), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers, and (ii) $166 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; and
| (b) | IPR&D assets of $78 million, due to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States.
Impairments in the first six months of 2020 consisted of:
| (a) | Identifiable product rights of $420 million, mainly due to: (i) $232 million due to updated market assumptions regarding price and volume of products acquired from Actavis Generics; and (ii) $165 million in Japan in connection with ongoing regulatory pricing reductions and generic competition; and
| (b) | IPR&D assets of $348 million, primarily due to: (i) $211 million related to AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States following clinical trial results received in February 2020, which failed to meet their primary endpoints; and (ii) $117 million related to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States.
The fair value measurement of the impaired intangible assets in the first six months of 2021 is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The discount rate applied ranged from 7.25% to 10%. A probability of success factor ranging from 20% to 90% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D.

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration