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The following table shows the results of the Net
Present Value (NPV) assessment:
Project
Development
phase
Book value
2010
Allocated
value
HF0220 Clinical phase II 5,044 5,044
HF 0299 Clinical phase I 50 50
HF 1220 Discovery 50 50
5,144 5,144
As uncertainty remains as to whether a final and
successful market registration will be achieved, a risk
of additional future adjustments to the carrying
amount of the above in-process R&D stays.
15 Available-for-sale investment
Available-for-sale investment of EUR 584 (2010: EUR
584) is entirely represented by a minority interest
(17%) held in a Special Purpose Vehicle (SPV) – Trident
Pharmaceuticals Inc. – set-up to develop a late-pre -
cli nical compound in asthma. The investment was
acquired in 2008 upon the finalization of Hunter
Fleming deal.
As the value of the investment is completely depending
on the value of its core asset, a development compound
in preclinical phase, the same methodology as under
Note 14 was applied for the impairment test.
16 Receivables and prepayments
(In thousand euro) As of December 31
2011 2010
Receivables 876 498
Government grants receivable 547 2,066
Prepayments 142 475
Deferred costs 51 51
VAT receivable 333 31
Other receivables 67 1,502
2,016 4,623
Government grants receivable decreased by EUR
1,519: the variance is due to the combined effect of the
following: a) on February 16, 2011, the Company
cashed in the first reimbursement of EUR 1,580 related
to the grant awarded to the Company by the Italian
government’s Ministero dell’Istruzione, dell’Università
e della Ricerca (M.I.U.R.); b) on March 8, 2011, the
Company cashed in EUR 327 (of which EUR 9 were
unexpected) related to the last tranche of a scientific
project awarded by DGR n. 4032 – January 24, 2007;
c) on December 28, 2011, the Company received EUR
70 by Ministero delle Attività Produttive (M.A.P.)
related to the last tranche of a scientific project awarded
by Law 46, and d) the accrual of EUR 449 related to
the ongoing granted projects.
The impairment test of the recoverable amount of the
available-for-sale investment performed did not result
in the requirement to recognize impairment of the
carrying value of the asset. As uncertainty remains as
to whether a final and successful market registration
will be achieved, a risk of future adjustments to the
carrying amount stays.
Notes to the Consolidated Financial Statements – Newron Annual Report 2011 5 9