United states securities and exchange commission

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We monitor events and expectations regarding 
product performance. If new information indicates that 
the assumptions underlying our most recent analysis 
are substantially different than those utilized in our 
current estimates, our analysis would be updated and 
may result in a significant change in the anticipated 
lifetime revenues of the relevant products. The 
occurrence of an adverse event could substantially 
increase the amount of amortization expense 
associated with our acquired intangible assets as 
compared to previous periods or our current 
expectations, which may result in a significant 
negative impact on our future results of operations.
For 2017 compared to 2016, the increase in 
amortization of acquired intangible assets was 
primarily due to $444.2 million of amortization and 
impairment charges associated with our U.S. and rest 
of world licenses to Forward Pharma's intellectual 
property, including Forward Pharma's intellectual 
property related to TECFIDERA, acquired in the first 
quarter of 2017, as discussed further below. 
Amortization of acquired intangible assets for 2017 
also reflects the $31.2 million impairment of our 
acquired and in-licensed rights and patents intangible 
asset related to the Article 20 Procedure of 
ZINBRYTA.
For additional information on the Article 20 
Procedure of ZINBRYTA and resulting impairment of 
ZINBRYTA related assets, please read Note 20, 
Collaborative and Other Relationships, to our 
consolidated financial statements included in this 
report.
For 2016 compared to 2015, amortization of 
acquired intangible assets was relatively consistent 
as our most recent analysis completed during the 
third quarter of 2016 resulted in no significant net 
change in our expected rate of amortization for 
acquired intangible assets. Amortization of acquired 
intangible assets for 2016 also reflects impairment 
charges recognized upon the termination of our 
collaboration agreements with Rodin Therapeutics, 
Inc. and Ataxion Inc., which resulted in impairment 
losses of $8.7 million and $3.5 million, respectively, 
related to the IPR&D assets recorded upon entering 
into the collaboration agreements.
Impairment charges related to intangible assets 
during 2015 were insignificant.
TECFIDERA License Rights
In January 2017 we entered into a settlement 
and license agreement with Forward Pharma. 
Pursuant to this agreement, we obtained U.S. and 
rest of world licenses to Forward Pharma's intellectual 
property, including Forward Pharma's intellectual 
property related to TECFIDERA. In exchange, we paid 
Forward Pharma $1.25 billion in cash. During the 
fourth quarter of 2016, we recognized a pre-tax 
charge of $454.8 million and in the first quarter of 
2017 we recognized an intangible asset of $795.2 
million related to this agreement. The pre-tax charge 
recognized in the fourth quarter of 2016 represented 
the fair value of our licenses to Forward Pharma’s 
intellectual property for the period April 2014, when 
we started selling TECFIDERA, through December 31, 
2016. The intangible asset represented the fair value 
of the U.S. and rest of world licenses to Forward 
Pharma’s intellectual property related to TECFIDERA 
revenues for the period January 2017, the month in 
which we entered into this agreement, through 
December 2020, the last month before royalty 
payments could first commence pursuant to this 
agreement.
We have two intellectual property disputes with 
Forward Pharma, one in the U.S. and one in the E.U., 
concerning intellectual property related to TECFIDERA. 
In March 2017 the U.S. intellectual property dispute 
was decided in our favor. Forward Pharma appealed to 
the U.S. Court of Appeals for the Federal Circuit and 
the appeal is pending. We evaluated the recoverability 
of the U.S. asset acquired from Forward Pharma and 
recorded an impairment charge in the first quarter of 
2017 to adjust the carrying value of the acquired U.S. 
asset to fair value reflecting the impact of the 
developments in the U.S. legal dispute. In January 
2018 the EPO announced its decision revoking 
Forward Pharma’s European Patent No. 2 801 355. 
Forward Pharma has stated that it expects to file an 
appeal to the Technical Board of Appeal of the EPO. 
Based upon our assessment of these rulings, we 
continue to amortize the remaining net book value of 
the U.S. and rest of world intangible assets in our 
consolidated statements of income utilizing an 
economic consumption model.
For additional information on our settlement and 
license agreement with Forward Pharma and related 
intangible assets, please read Note 7, Intangible 
Assets and Goodwill, to our consolidated financial 
statements included in this report. For additional 
information on these disputes, please read Note 21, 
Litigation, to our consolidated financial statements 
included in this report.

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In Process Research & Development (IPR&D) related 
to Business Combinations
Overall, the value of our acquired IPR&D assets 
is dependent upon a number of variables, including 
estimates of future revenues and the effects of 
competition, the level of anticipated development 
costs and the probability and timing of successfully 
advancing a particular research program from a 
clinical trial phase to the next. We are continually 
reevaluating our estimates concerning these variables 
and evaluating industry data regarding the productivity 
of clinical research and the development 
process. Changes in our estimates of items may 
result in a significant change to our valuation of these 
assets.
We review amounts capitalized as acquired 
IPR&D for impairment at least annually, as of October 
31, and whenever events or changes in 
circumstances indicate to us that the carrying value of 
the assets might not be recoverable. Our most recent 
impairment assessment as of October 31, 2017, 
resulted in no impairments. Changes to clinical 
development plans, regulatory feedback received, life 
cycle management strategies and changes in program 
economics, including foreign currency exchange rates, 
are evaluated regularly. The field of developing 
treatments for forms of neuropathic pain, such as 
TGN, is highly competitive and can be affected by 
changes to expected market candidates and changes 
in timing and the clinical development of our product 
candidates. There can be no assurance that we will 
be able to successfully develop BIIB074 for the 
treatment of TGN or other indications, including our 
ability to confirm safety and efficacy based on data 
from clinical trials, or that a successfully developed 
therapy will be able to secure sufficient pricing in a 
competitive market. Changes in events and 
circumstances for these programs may have a 
material impact on the value of our related IPR&D.
For additional information on the impairment and 
amortization of acquired intangible assets, including 
our TECFIDERA settlement and license agreement, 
please read Note 7, Intangible Assets and Goodwill, to 
our consolidated financial statements included in this 
report.
Acquired In-Process Research and Development
In May 2017 we completed an asset purchase of 
the Phase 3-ready candidate, BIIB093, from Remedy. 
In connection with the closing of this transaction, we 
made an upfront $120.0 million payment to Remedy, 
which was recorded as acquired in-process research 
and development in our consolidated statements of 
income as BIIB093 had not yet reached technological 
feasibility. For additional information on our 
transaction with Remedy, please read Note 2, 
Acquisitions, to our consolidated financial statements 
included in this report.

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