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Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2024

NOTE 5 – Identifiable intangible assets:

Identifiable intangible assets consisted of the following:


	Gross carrying amount net of impairment				Accumulated amortization				Net carrying amount
	September 30,		December 31,		September 30,		December 31,		September 30,		December 31,
	2024		2023		2024		2023		2024		2023
	(U.S. $ in millions)
Product rights	$	16,408	$	17,981	$	12,235	$	13,274	$	4,173	$	4,707
Trade names		586		583		296		269		290		314
In process research and development		294		366		—		—		294		366

Total	$	17,287	$	18,930	$	12,531	$	13,543	$	4,756	$	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 $145 million in the three months ended September 30, 2024 and 2023, respectively.

Amortization of intangible assets was $444 million and $471 million in the nine months ended September 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 September 30, 2024 and 2023 were $28 million and $47 million, respectively.

Impairments in the third quarter of 2024 consisted of:

Identifiable product rights of $28 million, mainly due to updated market assumptions regarding price and volume of products mainly in the U.S.

Impairments in the third quarter of 2023 consisted of:

(a)

IPR&D assets of $29 million, mainly due 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); and

(b)

Identifiable product rights of $18 million mainly due to updated market assumptions regarding price and volume of products.

Impairments of long-lived intangible assets for the nine months ended September 30, 2024 and 2023 were $169 million and $289 million, respectively.

Impairments in the first nine months of 2024 consisted of:

(a)

Identifiable product rights of $136 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 due 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 nine months of 2023 consisted of:

(a)

Identifiable product rights of $206 million due to: (i) $112 million in Japan, mainly due to regulatory pricing reductions; and (ii) $94 million related to updated market assumptions regarding price and volume of products; and

(b)

IPR&D assets of $83 million, mainly due 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 nine months ended September 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 of 90% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D.