A publicly-traded biopharmaceutical company, which had just emerged out of bankruptcy protection, retained CRA to conduct its intangible asset and goodwill impairment testing. First, CRA performed a ASC 360 recoverability test of the company’s intangible asset group, which included distribution agreements, customer relationships, non-compete agreements, and trade name. CRA then conducted a ASC 350 goodwill impairment analysis, which included both a comparison of the company’s carrying value with its fair value as well as a hypothetical purchase price allocation, to determine the goodwill impairment loss.
Anticompetitive conduct and patents listed in the Orange Book
Branded pharmaceutical manufacturers are required by law to list all patents in the Orange Book that cover an approved drug product. However,...