Question-and-Answer Session
Operator
Your first question comes from Gary Nachman – Leerink Swann.
Gary Nachman – Leerink Swann
First question, I guess, to Peter, how were you able to recognize so much profit sharing from generic BenzaClin? That deal closed at the end of September. And is that profit sharing reflective of a full quarter or could that number actually go higher going forward?
Peter J. Blott
Mylan launched the products, I think, at the beginning of September. They did include to some extent a fill of the pipeline as you would normally do. So to the extent to which it was – represents a full quarter, but there was only actually one month of sales, and we recorded that $8.5 million was – of alliance revenue that we recorded – was the profit share on those sales through the 30th of September.
Gary Nachman – Leerink Swann
But I guess the fact that you did the deal at the end of the quarter you were able to retroactively record that because you own that asset at this point?
Peter J. Blott
Essentially because of the way the deal was structured, we bought Dow Pharmaceuticals, the legal entity last year, but there were just remaining contractual considerations with the previous owners of Dow. And the Dow buyout arrangement that we did in September essentially just gave us the full rights to those unencumbered and, therefore, we were able to recognize all of the profit share in the quarter and will do in all previous quarters.
The other piece about the accounting was because of the Dow buyout, the original acquisition we had negative goodwill because there were some deferred consideration treatment from the U.S. GAAP. So this actual deal didn't create any intangibles and, therefore, there's no amortization associated with it. And therefore the profit share essentially drops straight to operating income.
Gary Nachman – Leerink Swann
And what is the profit share? Could you give us sort of a range on that?
Peter J. Blott
We've disclosed it as being significant, as in greater than 50%, but we've not given details of the exact profit share arrangements.
Gary Nachman – Leerink Swann
And this for Mike, on your 2010 guidance, your double digit growth goal, is that for both top and bottom line? I just want to clarify that. And then the two stretch goals for the derm business and also for the generic business. Is that organic or are you assuming that you're going to have to do deals to get there to that goal?
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