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Identifiable Intangible Assets

6 Months Ended

Jun. 30, 2024

NOTE 5 – Identifiable intangible assets:

Identifiable intangible assets consis

ed of the following:


	Gross carrying amount net of impairment				Accumulated amortization				Net carrying amount
	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
	(U.S. $ in millions)
Product rights	$	16,186	$	17,981	$	11,952	$	13,274	$	4,234	$	4,707
Trade names		575		583		285		269		290		314
In process research and development		329		366		—		—		329		366

Total	$	17,090	$	18,930	$	12,237	$	13,543	$	4,853	$	5,387

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 in various therapeutic categories from various acquisitions with a weighted average life period of approximately 9 years.

Amortization of intangible assets was $146 million and $162 million in the three months ended June 30, 2024 and 2023, respectively.

Amortization of intangible assets was $298 million and $326 million in the six months ended June 30, 2024 and 2023, respectively.

IPR&D

Teva’s IPR&D are assets that have not yet been approved in its major markets. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods.

Intangible assets impairments

Impairments of long-lived intangible assets for the three months ended June 30, 2024 and 2023 were $61 million and $63 million, respectively.

Impairments in the second quarter of 2024 consisted of:

(a)

Identifiable product rights of $51 million, mainly due to updated market assumptions regarding price and volume of products mainly in the

U.S.; and

(b)

IPR&D assets of $10 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).

Impairments in the second quarter of 2023 consisted of:

(a)

Identifiable product rights of $28 million, mainly related to updated market assumptions regarding price and volume of products; and

(b)

IPR&D assets of $35 million, related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).

Impairments of long-lived intangible assets for the six months ended June 30, 2024 and 2023 were $141 million and $241 million, respectively.

Impairments in the first six months of 2024 consisted of:

(a)

Identifiable product rights of $108 million, mainly due to updated market assumptions regarding price and volume of products mainly in the

U.S.; and

(b)

IPR&D assets of $33 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications mainly in

the U.S. (e.g., market size, competition assumptions, legal landscape and launch date).

Impairments in the first six months of 2023 consisted of:

(a)

Identifiable product rights of $188 million due to: (i) $112 million in Japan, mainly related to regulatory pricing reductions; and (ii) $76 million related to updated market assumptions regarding price and volume of products; and

(b)

IPR&D assets of $53 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).

The fair value measurement of the impaired intangible assets in the first six months ended June 30, 2024 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 8.5% 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.