Alkermes plc. Goodwill & Intangibles Disclosure
8. INTANGIBLE ASSETS AND GOODWILL
Intangible assets and goodwill consists of the following:
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December 31, 2025 |
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December 31, 2024 |
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(In thousands) |
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Weighted Amortizable Life (Years) |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net Carrying Amount |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net Carrying Amount |
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Goodwill |
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|
|
$ |
83,027 |
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|
$ |
— |
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|
$ |
83,027 |
|
|
$ |
83,027 |
|
|
$ |
— |
|
|
$ |
83,027 |
|
Finite-lived intangible assets: |
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Collaboration agreements |
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12 |
|
$ |
465,590 |
|
|
$ |
(465,590 |
) |
|
$ |
— |
|
|
$ |
465,590 |
|
|
$ |
(465,590 |
) |
|
$ |
— |
|
Capitalized IP |
|
11-13 |
|
|
118,160 |
|
|
|
(117,345 |
) |
|
|
815 |
|
|
|
118,160 |
|
|
|
(117,270 |
) |
|
|
890 |
|
Total |
|
|
|
$ |
583,750 |
|
|
$ |
(582,935 |
) |
|
$ |
815 |
|
|
$ |
583,750 |
|
|
$ |
(582,860 |
) |
|
$ |
890 |
|
The Company’s finite-lived intangible assets primarily consisted of collaborative agreements and the NANOCRYSTAL and oral controlled release technologies acquired as part of the EDT acquisition. These intangible assets were fully amortized in the year ended December 31, 2024. The Company recorded less than $0.1 million, $1.1 million and $35.7 million of amortization expense related to its finite-lived intangible assets during the years ended December 31, 2025, 2024 and 2023, respectively.
The Company performed its annual goodwill impairment test as of October 31, 2025. The Company elected to perform a qualitative impairment test and determined that based on the weight of all available evidence, the fair value of the reporting unit more-likely-than-not exceeded its carrying value.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 25, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.