Intangible asset impairment charges within SG&A for the year to December 31, 2007 were US$0.4 million (2006: US$1.1 million). Impairment charges relating to goodwill for the year to December 31, 2007 were US$133.7 million (2006: US$271.9 million) related to the goodwill arising on the acquisition of BioChem Pharma Inc. Depreciation, amortisation and impairment charges also include an adjustment to goodwill of US$11.0 million (2006: US$nil) in respect of the prior year acquisition of TKT.
For the year to December 31, 2007 SG&A included a charge of US$51.7 million for share based compensation (2006: US$14.6 million), which included a US$22.5 million cumulative catch up charge (2006: US$nil) in respect of 2005 option awards.
The catch-up charge relates to options issued by Shire in 2005 under the 2000 Executive Scheme. This charge arises as a result of the strong growth in revenue and profits (as determined under US GAAP) which the Group generated in the fourth quarter of 2007. This growth has in turn caused the Group to revise its original assumptions on which the IFRS 2 charge was based.
Gain on sale of product rights
For the year to December 31, 2007 Shire recognised gains of US$102.9 million on the sale of non-core products.
Shire received US$209.6 million (net of transaction costs of US$2.2
million) from Laboratorios Almirall S.A. ("Almirall") for a portfolio of
non core products comprising the dermatology products SOLARAZE and VANIQA
and six non-promoted products across a range of indications, which were
sold by Shire primarily in the UK, France, Germany,
|SOURCE Shire plc|
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