A pharmaceutical company acquires a company with patents on two prescription medicines.  Drug A is a diabetes medicine and by itself, Drug A is moderately effective. Drug C is another moderately effective diabetes drug. When taken together, Drug  A and Drug C are highly effective at lowering diabetes levels. On a standalone basis, Drug A has a fair value of $75 million and Drug C has a fair value of $125 million. When the drugs are valued together, Drug A and Drug C have a combined fair value of $230 million. Determine what is the Highest and Best Use for the patents?   Summarize the highest and best use.     What is the Fair Value for the Patents for Drug A & Drug C?

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Contingent Liabilities and Provisions

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