present value model for the atc project

From their Full Year Accounts release. Would love to see their calculation on this. Anyone in a position to provide an estimate???

13 Intangible assets
North American marketing licence for apricitabine (ATC) – at cost (i) 20,013 16,535
Intellectual property (at cost) 12,000 12,000
Less: Accumulated amortisation (12,000) (12,000)
- -
Total intangible assets 20,013 16,535
Prior year cost to acquire the asset comprises cash of $12,895,000 plus 8 million shares issued at a total value of $3,640,000. In the current
financial year the Company incurred an additional cash cost of US$3m (AUD$3,478,261) on 8 January 2008 as a milestone payment in
accordance with the contractual agreement.
At year end, a risk-adjusted net present value model for the ATC project based on a 20 year timescale was used to assess the recoverable
amount of the intangible asset for asset impairment testing purposes. The model incorporates assumptions in respect of each of the following
components:
• The anticipated market for the product, 5% estimated annual growth of that market, penetration of that market by ATC and time
taken to ramp up sales to the peak market penetration.
• The anticipated sales price and cost of sales for the product based on the market positioning for the product and existing
manufacturing arrangements.
• The number of patients required to undertake the Phase III studies and continue to extend the Phase IIb study and the anticipated
cost per patient based on third party quotations and contractual arrangements.
• The anticipated time frame to complete the pivotal filing studies and secure FDA and other regulatory marketing approvals.
• The royalty costs payable to Shire arising from sales of the product, based on current contracted rates.
• A discount rate of 18% associated with a pharmaceutical product that has successfully completed Phase IIb trials.
• The risks associated with not reaching the Phase III clinical trial endpoint or securing the necessary regulatory approvals.
Third party market data has been sourced where available and sensitivity analyses undertaken to arrive at an estimate of recoverable amount.
Based on all the information available at the time of signing the financial report, the Company is satisfied that the recoverable amount of the
intangible asset remains in excess of the carrying value at year end.
Inherent in the above recoverable amount assessment is the assumption that the Company will continue to have access to sufficient funding in
order to develop or otherwise exploit the future n