download PDF - Newron

sell of the property, plant and equipment. These were
estimated to be higher than the assets’ net book value,
and no impairment has been accounted for.
Impairment of intangible assets with indefinite
useful lives
Intangible assets with indefinite useful lives are not
amortized but are tested for impairment annually
either individually or at the cash-generating unit level
in accordance with IAS 36.
October 31, 2012 – with Merck Serono in accordance
with the decision – related to strategic considerations
and re-prioritization of its R&D pipeline – taken by
Merck Serono, a division of Merck KGaA, Darmstadt,
Germany, to return safinamide’s global rights to
Newron effective on April 17, 2012. Such a change has
been accounted for prospectively as a change in estimate,
resulting in a increase of 2011 licence income of
EUR 38. The change will result also in a corresponding
decrease of 2012 licence income of EUR 38.
The Group’s impairment test for intangible assets with
indefinite useful lives is based on a calculation performed
with a discounted cash flow model. The cash
flows are derived from the Group’s budget and do
not include restructuring activities that the Group is
not committed to or significant future investments
that will enhance the asset base of the cash-generating
unit being tested. According to this model, the management
performed at year end an impairment analysis
to assess the sustainability of the assets’ values and
impairment has been accounted for as disclosed in
Note 13. The key assumptions used to determine the
recoverable amount for the different cash-generating
units are further explained in the notes 13 and 14.
5 Licence income
(In thousand euro)
For the year ended
December 31
2011 2010
Licence income 280 626
Licence income of EUR 280 (2010: EUR 626) is
entirely referable to the down-payment received from
Merck Serono International SA in October 2006,
which is being recognized as revenue on a straightline
basis over the estimated period of collaboration
required to finalize the development of safinamide.
The portion of the down-payment in excess of the recognized
revenue has been recorded as deferred
income among current and non-current liabilities:
additional information is reported in note 25.
In 2011, the Company revised the recognition period
of the payment to align it with the termination of the
collaboration – previously estimated to be over on
6 Other income
(In thousand euro)
For the year ended
December 31
2011 2010
Other income 4,009 180
Other income mainly refer to a payment of EUR 4,000
received in the context of the broadening of the collaboration
between Newron and Merck Serono, a division
of Merck KGaA, Darmstadt, Germany, as signed and disclosed
in March 2011. Amongst others, Newron has
received a development licence for two Merck KGaA
clinical-stage compounds. Merck KGaA will retain
buy-back options for each compound upon completion
of proof-of-concept trials. Should these options be
exercised by Merck KGaA, Newron will have a co-development
option. Further financial details of the agreements
will only be disclosed upon affecting the financial
statements.
7 Staff costs
(In thousand euro)
For the year ended
December 31
2011 2010
Wages and salaries 1,781 3,616
Pension costs – defined contribution
plans
Share options granted to
directors and employees
Share appreciation rights
granted to directors and
employees
Employee severance
indemnity costs
529 692
842 245
(0) (180)
181 238
Social security costs 135 214
3,468 4,825
54 Newron Annual Report 2011