| Goodwill* £m |
Software £m |
Development costs £m |
Patent rights £m |
Marketing authorisations £m |
Acquired intangibles £m |
Total £m |
|
| Cost | |||||||
| At 1 July 2018 | 229.3 | 16.7 | 13.2 | 3.9 | 0.9 | 674.0 | 938.0 |
| Additions | – | 2.8 | 1.2 | – | – | 7.9 | 11.9 |
| Acquisitions through business combinations (Restated*) | 12.4 | 0.1 | – | 0.4 | – | 18.2 | 31.1 |
| Remeasurement (note 32) | – | – | – | – | – | (1.5) | (1.5) |
| Disposals | – | – | (0.3) | – | – | – | (0.3) |
| Foreign exchange adjustments | 4.0 | 0.1 | (0.1) | – | – | 11.2 | 15.2 |
| At 30 June 2019 and 1 July 2019 (Restated*) | 245.7 | 19.7 | 14.0 | 4.3 | 0.9 | 709.8 | 994.4 |
| Additions | – | 1.8 | 1.8 | 0.3 | – | 46.2 | 50.1 |
| Acquisitions through business combinations | 6.6 | 0.1 | – | – | – | 14.9 | 21.6 |
| Remeasurement (note 32) | – | – | – | – | – | 10.9 | 10.9 |
| Foreign exchange adjustments | 1.5 | 0.1 | 0.1 | (0.1) | – | 9.6 | 11.2 |
| At 30 June 2020 | 253.8 | 21.7 | 15.9 | 4.5 | 0.9 | 791.4 | 1,088.2 |
| Accumulated Amortisation | |||||||
| At 1 July 2018 | – | 3.7 | 7.1 | 3.0 | – | 214.4 | 228.2 |
| Charge for the year | – | 2.5 | 1.3 | 0.3 | – | 76.8 | 80.9 |
| Foreign exchange adjustments | – | (0.1) | 0.1 | – | – | 4.7 | 4.7 |
| At 30 June 2019 and 1 July 2019 | – | 6.1 | 8.5 | 3.3 | – | 295.9 | 313.8 |
| Charge for the year | – | 2.9 | 1.2 | 0.2 | – | 69.6 | 73.9 |
| Foreign exchange adjustments | – | – | 0.1 | – | – | 8.2 | 8.3 |
| At 30 June 2020 | – | 9.0 | 9.8 | 3.5 | – | 373.7 | 396.0 |
| Net book value | |||||||
| At 30 June 2020 | 253.8 | 12.7 | 6.1 | 1.0 | 0.9 | 417.7 | 692.2 |
| At 30 June 2019 (Restated*) | 245.7 | 13.6 | 5.5 | 1.0 | 0.9 | 413.9 | 680.6 |
* Restated as detailed in note 31 Acquisitions.
The assets within patent rights include the rights to Equidone® which was launched in the USA during 2011, and has a carrying value of £0.1 million with a remaining amortisation period of 1 year, and the in-licensed products within Canada (acquired in 2016 with a carrying value of £0.2 million and has a remaining amortisation period of 6.5 years). During the year, £0.3 million was added to patent rights within EU Pharmaceuticals Segment.
£0.8 million of the marketing authorisations relate to the Vetivex range of products. Ownership of the marketing authorisations rests with the Group in perpetuity. There are not believed to be any legal, regulatory or contractual provisions that limit their useful lives. Vetivex is an established range of products which are relatively simple in nature and there are a limited number of players in the market. Accordingly, the Directors believe that it is appropriate that the marketing authorisations are treated as having indefinite lives for accounting purposes.
The software intangible asset includes £10.5 million relating to the ERP system in the EU Pharmaceuticals Segment, this has a remaining amortisation period of 5 years.
Goodwill is allocated across cash generating units that are expected to benefit from that business combination. Key assumptions made in this respect are given in note 14.
In accordance with the disclosure requirements of IAS 38 'Intangible Assets', the components of acquired intangibles are summarised below:
| Commercial relationships £m |
Pharmacological process £m |
Brand £m |
Capitalised development costs £m |
Product rights £m |
Total £m |
|
| Cost | ||||||
| At 1 July 2018 | 6.7 | 49.6 | 15.4 | 367.3 | 235.0 | 674.0 |
| Additions | – | – | – | – | 7.9 | 7.9 |
| Reclassification* | – | – | – | 2.9 | (2.9) | – |
| Acquisitions through business combinations | – | – | 0.6 | 17.6 | – | 18.2 |
| Remeasurement | – | – | – | – | (1.5) | (1.5) |
| Foreign exchange adjustments | 0.1 | 1.8 | 0.3 | 5.8 | 3.2 | 11.2 |
| At 30 June 2019 and 1 July 2019 | 6.8 | 51.4 | 16.3 | 393.6 | 241.7 | 709.8 |
| Additions | – | – | – | – | 46.2 | 46.2 |
| Acquisitions through business combinations | 1.9 | – | – | 13.0 | – | 14.9 |
| Remeasurement | – | – | – | – | 10.9 | 10.9 |
| Foreign exchange adjustments | – | 1.8 | 0.3 | 3.4 | 4.1 | 9.6 |
| At 30 June 2020 | 8.7 | 53.2 | 16.6 | 410.0 | 302.9 | 791.4 |
| Accumulated Amortisation | ||||||
| At 1 July 2018 | 1.3 | 20.2 | 4.4 | 47.4 | 141.1 | 214.4 |
| Charge for the year | 2.3 | 6.8 | 1.6 | 55.0 | 11.1 | 76.8 |
| Reclassification* | – | – | – | 0.2 | (0.2) | – |
| Foreign exchange adjustments | 0.1 | 0.9 | 0.1 | 1.7 | 1.9 | 4.7 |
| At 30 June 2019 and 1 July 2019 | 3.7 | 27.9 | 6.1 | 104.3 | 153.9 | 295.9 |
| Charge for the year | 2.0 | 5.7 | 1.6 | 48.2 | 12.1 | 69.6 |
| Foreign exchange adjustments | 0.2 | 1.1 | 0.2 | 3.4 | 3.3 | 8.2 |
| At 30 June 2020 | 5.9 | 34.7 | 7.9 | 155.9 | 169.3 | 373.7 |
| Net book value | ||||||
| At 30 June 2020 | 2.8 | 18.5 | 8.7 | 254.1 | 133.6 | 417.7 |
| At 30 June 2019 | 3.1 | 23.5 | 10.2 | 289.3 | 87.8 | 413.9 |
* Apex IPR&D acquired October 2016 has been reclassified from Product rights to Capitalised development costs.
The table below provides further detail on the acquired intangibles and their remaining amortisation period.
| Significant assets | Description of acquired intangibles | Goodwill carrying value £m |
Acquired intangibles carrying value £m |
Sub-Total carrying value £m |
Remaining amortisation period on acquired intangibles |
| Intangible assets arising from the acquisition of Dermapet | Product, marketing and distribution rights | 0.4 | 17.7 | 18.1 | 5 ½ years |
| Intangible assets arising from the acquisition of Genetrix | Product, marketing and distribution rights | 1.8 | 0.2 | 2.0 | ½ year |
| Intangible assets arising from the acquisition of Eurovet | Technology, product, marketing and distribution rights | 40.1 | 17.1 | 57.2 | 2 years |
| Intangible assets arising from the acquisition of PSPC Inc | Product, marketing and distribution rights | 0.1 | 3.4 | 3.5 | 4 years |
| Intangible asset acquired from Pharmaderm Animal Health | Marketing and distribution rights | – | 0.3 | 0.3 | 2 years |
| HY-50 intangible asset acquired from Bexinc Limited | Marketing and distribution rights | – | 0.8 | 0.8 | 1 ½ years |
| Goodwill arising from the acquisition of Brovel | 3.0 | – | 3.0 | N/A | |
| Goodwill arising from the acquisition of Vetxx | 17.4 | – | 17.4 | N/A |
| Significant assets | Description | Goodwill carrying value £m |
Acquired Intangibles carrying value £m |
Sub-Total carrying value £m |
Remaining amortisation period on acquired intangibles |
| Goodwill arising from the acquisition of Dales | 2.2 | – | 2.2 | N/A | |
| Intangible assets arising from the acquisition of Genera | Product, brand, technology, marketing and distribution rights | 0.6 | 2 ½ year | ||
| 0.3 | 5 ½ years | ||||
| 6.7 | 10 ½ years | ||||
| 5.6 | 13.2 | Genera – total | |||
| Intangible assets arising from the acquisition of Putney | Product, brand, technology, pharmacological process, marketing and distribution rights | 6.0 | 6 years | ||
| 18.9 | 6 years | ||||
| 42.9 | 8 years | ||||
| 53.4 | 121.2 | Putney – total | |||
| Intangible asset arising from the acquisition of Apex | Product and technology | 12.6 | 13 years | ||
| 2.0 | 10 years | ||||
| 0.1 | 1 year | ||||
| 8.9 | 23.6 | Apex – total | |||
| Intangible asset related to Animal Ethics | Marketing and distribution rights | – | 37.2 | 37.2 | 10 years |
| Intangible asset related to a US and Brazilian dental licensing agreement | Marketing and distribution rights | – | 0.5 | 0.5 | 7 years |
| Intangible asset related to Bioveta | Marketing and distribution rights | – | 2.1 | 2.1 | 10 years |
| Intangible asset related to an injectable solution licensing agreement | Marketing and distribution rights | – | 6.3 | 6.3 | 10 years |
| Intangible assets arising from the acquisition of AST Farma and Le Vet | Product, brand, technology, marketing and distribution rights |
60.4 | 7 ½ years | ||
| 85.5 | 6 ½ years | ||||
| 15.0 | 8 years | ||||
| 0.5 | ½ year | ||||
| 1.3 | 2 ½ years | ||||
| 104.9 | 242.267.6 | AST Farma and Le Vet – total |
|||
| Intangible asset related to Premune | Product | – | 0.1 | 0.1 | 1 year |
| Intangible assets related to an injectable solution licensing agreement | Marketing and distribution rights | – | 8.0 | 8.0 | 15 years |
| Intangible assets arising from the acquisition of Caledonian | Product, brand, technology, marketing and distribution rights | 0.9 | 3.4 | 4.3 | 3 ½ years |
| Intangible assets arising from the acquisition of Dechra Brazil | Product, brand, technology, marketing and distribution rights | 8.5 | 7.7 0.4 0.4 0.1 |
17.1 | 8 ½ years 3 ½ years 6 ½ years ½ year Brazil – total |
| Intangible assets related to the licensing and distribution of Pimobendan Oral Solution | Product, and marketing and distribution rights | – | 0.2 | 0.2 | 10 years |
| Intangible assets arising from the acquisition of Ampharmco | Product and technology rights | 6.6 | 1.4 6.0 0.6 6.0 |
20.6 | 2 ½ years 17 ½ years 14 ½ years 13 years Ampharmco – total |
| Intangible assets arising from the acquisition of Mirataz | Product and technology rights | – | 45.0 | 45.0 | 9 ½ years |
| 253.8 | 417.7 | 671.5 |