all of these different types of relationships are part of our unique business model and create near and long-term shareholder value . the clinical successes of the drugs in our pipeline continue to create new partnering opportunities . for example , in january 2012 , we formed a new strategic alliance with biogen idec to develop and commercialize isis-smn rx to treat spinal muscular atrophy . we received a $ 29 million upfront payment and are eligible to receive up to $ 270 million in payments and double-digit royalties on sales from isis-smn rx . since 2007 , our partnerships have generated an aggregate of more than $ 880 million in payments from upfront and licensing fees , equity purchase payments , milestone payments and research and development funding . in addition , for our current partnered programs we have the potential to earn more than $ 3.5 billion in future milestone payments . we also will share in the future commercial success of our inventions and drugs resulting from these partnerships through earn out , profit sharing , or royalty arrangements . our strong financial position is a result of the successful execution of our business strategy as well as our inventive and focused research and development capabilities . we protect our proprietary technologies and products through our substantial patent estate . as an innovator in rna-targeting drug discovery and development , we design and execute our patent strategy to provide us with extensive protection for our drugs and our technology . with our ongoing research and development , we continue to add to our substantial patent estate . the patents not only protect our key assetsour technology and our drugsthey also form the basis for lucrative licensing and partnering arrangements . to date , we have generated over $ 400 million from our intellectual property sale and licensing program that helps support our internal drug discovery and development programs . 49 business segments prior to 2011 , we reported our results in two separate segments : drug discovery and development and regulus . beginning in 2011 , we no longer consider regulus as an operating segment because our chief decision making officer no longer reviews regulus ' operating results for purposes of making resource allocations . therefore we now only operate in , and will provide financial information and results for , our drug discovery and development operations . in our drug discovery and development operations we are exploiting a novel drug discovery platform we created to generate a broad pipeline of first-in-class drugs for us and our partners . with our proprietary drug discovery platform we can rapidly identify drugs , providing a wealth of potential targets to treat a broad range of diseases . we focus our efforts in therapeutic areas where our drugs will work best , efficiently screening many targets in parallel and carefully selecting the best drugs . when we combine this efficiency with our rational approach to selecting disease targets we can build a large and diverse portfolio of drugs to treat a variety of health conditions , including cardiovascular , metabolic , inflammatory , ocular , severe and rare diseases , and cancer . we currently have 26 drugs in development . our partners are developing , with our support , 10 of these 26 drugs , which substantially reduces our development costs . critical accounting policies we prepare our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america . as such , we make certain estimates , judgments and assumptions that we believe are reasonable , based upon the information available to us . these judgments involve making estimates about the effect of matters that are inherently uncertain and may significantly impact our quarterly or annual results of operations and financial condition . each quarter , our senior management discusses the development , selection and disclosure of such estimates with our audit committee of our board of directors . in the following paragraphs , we describe the specific risks associated with these critical accounting policies . for all of these policies , we caution that future events rarely develop exactly as one may expect , and that best estimates routinely require adjustment . historically , our estimates have been accurate as we have not experienced any material differences between our estimates and our actual results . the significant accounting policies , which we believe are the most critical to aid in fully understanding and evaluating our reported financial results , require the following : · assessing the propriety of revenue recognition and associated deferred revenue ; · determining the proper valuation of investments in marketable securities and other equity investments ; · assessing the recoverability of long-lived assets , including property and equipment , intellectual property and licensed technology ; · determining the proper valuation of inventory ; · determining the appropriate cost estimates for unbilled preclinical studies and clinical development activities ; · estimating our net deferred income tax asset valuation allowance ; · determining when we are the primary beneficiary for entities that we identify as variable interest entities ; · determining the fair value of convertible debt without the conversion feature ; and · determining the fair value of stock-based compensation , including the expected life of the option , the expected stock price volatility over the term of the expected life and estimated forfeitures . descriptions of these critical accounting policies follow . revenue recognition we generally recognize revenue when we have satisfied all contractual obligations and are reasonably assured of collecting the resulting receivable . we are often entitled to bill our customers and receive payment from our customers in advance of recognizing the revenue under current accounting rules . in those instances in which we have received payment from our customers in advance of recognizing revenue , we include the amounts in deferred revenue on our consolidated balance sheet . story_separator_special_tag we consider the following factors : · evidence of decreases in market value ; · changes in the extent or manner in which we use an asset ; · adverse changes in legal factors or in the business climate that would affect the value of an asset ; · an adverse action or assessment by a regulator ; · an accumulation of costs significantly in excess of amounts originally expected to acquire or construct an asset ; · current period operating or cash flow loss combined with a history of operating or cash flow losses associated with an asset used for the purpose of producing revenue ; and · challenges or potential challenges to our existing patents , the likelihood that the united states patent and trademark office , or foreign equivalent , will issue an application and the scope of our issued patents . we recorded a charge of $ 1.9 million , $ 1.5 million and $ 696,000 for the years ended december 31 , 2011 , 2010 and 2009 , respectively , primarily related to the write-down of intangible assets to their estimated net realizable values . valuation of inventory we capitalize the costs of raw materials that we purchase for use in producing our drugs because until we use these raw materials they have alternative future uses . we include in inventory raw material costs for drugs that we manufacture for our partners under contractual terms and that we use primarily in our clinical development activities and drug products . we can use each of our raw materials in multiple products and , as a result , each raw material has future economic value independent of the development status of any single drug . for example , if one of our drugs failed , we could use the raw materials allocated for that drug to manufacture our other drugs . we expense these costs when we deliver the drugs to our partners , or as we provide these drugs for our own clinical trials . we reflect our inventory on the balance sheet at the lower of cost or market value under the first-in , first-out method . we review inventory periodically and reduce the carrying value of items we consider to be slow moving or obsolete to their estimated net realizable value . we consider several factors in estimating the net realizable value , including shelf life of raw materials , alternative uses for our drugs and clinical trial materials and historical write-offs . estimated liability for clinical development costs we record accrued liabilities related to expenses for which service providers have not yet billed us related to products or services that we have received , specifically related to ongoing preclinical studies and clinical trials . these costs primarily relate to third-party clinical management costs , laboratory and analysis costs , toxicology studies and investigator grants . we have multiple drugs in concurrent preclinical studies and clinical trials at several clinical sites throughout the world . in order to ensure that we have adequately provided for ongoing preclinical and development costs during the period in which we incur such costs , we maintain an accrual to cover these expenses . we update our estimate for this accrual on at least a quarterly basis . the assessment of these costs is a subjective process that requires judgment . upon settlement , these costs may differ materially from the amounts accrued in our consolidated financial statements . our historical accrual estimates have not been materially different from our actual amounts . valuation allowance for net deferred tax assets we record a valuation allowance to offset our net deferred tax assets because we are uncertain that we will realize these net tax assets . except for 2009 , we have had net losses since inception , and as a result , we have established a 100 percent valuation allowance for our net deferred tax asset . if we determine that we are able to realize a portion or all of these deferred tax assets in the future , we will record an adjustment to the valuation allowance . 54 segment information prior to 2011 , we reported our results in two separate segments : drug discovery and development and regulus . beginning in the first quarter of 2011 , we no longer consider regulus as an operating segment because our chief decision making officer no longer reviews regulus ' operating results for purposes of making resource allocations . therefore we only provide financial information and results for our drug discovery and development operations . convertible debt we account for convertible debt instruments that may be settled in cash upon conversion ( including partial cash settlement ) by separating the liability and equity components of the instruments in a manner that reflects our nonconvertible debt borrowing rate when we recognize interest expense in subsequent periods . as a result , we assigned a value to the debt component of our 2 5 / 8 percent convertible notes equal to the estimated fair value of a similar debt instrument without the conversion feature , which resulted in us recording the debt at a discount . we are amortizing the resulting debt discount over the life of the debt as additional non-cash interest expense utilizing the effective interest method . at adoption , we retrospectively implemented the presentation and disclosure requirements to all periods presented in our consolidated financial statements . for additional information , see note 5 , long-term obligations and commitments , in the notes to the consolidated financial statements . determining the fair value of the debt component requires the use of accounting estimates and assumptions . these estimates and assumptions are judgmental in nature and could have a significant impact on the determination of the debt component , and the associated non-cash interest expense . we determine the carrying amount of the liability component by measuring the fair value of a similar debt instrument that does not

liquidity and capital resources we have financed our operations with revenue primarily from research and development collaborative agreements . additionally , we have earned revenue from the sale or licensing of our intellectual property . we have also financed our operations through the sale of our equity securities and the issuance of long-term debt . from our inception through december 31 , 2011 , we have earned approximately $ 1.0 billion in revenue from contract research and development and the sale and licensing of our intellectual property . from the time we were founded through december 31 , 2011 , we have raised net proceeds of approximately $ 824.1 million from the sale of our equity securities and we have borrowed approximately $ 568.5 million under long-term debt arrangements to finance a portion of our operations . at december 31 , 2011 , we had cash , cash equivalents and short-term investments of $ 343.7 million and stockholders ' equity of $ 171.4 million . in comparison , we had cash , cash equivalents and short-term investments of $ 472.4 million and stockholders ' equity of $ 244.5 million at december 31 , 2010. at december 31 , 2011 , we had consolidated working capital of $ 284.0 million compared to $ 377.2 million at december 31 , 2010. the decrease in cash and working capital primarily relates to cash used for our operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources we have financed our operations with revenue primarily from research and development collaborative agreements . additionally , we have earned revenue from the sale or licensing of our intellectual property . we have also financed our operations through the sale of our equity securities and the issuance of long-term debt . from our inception through december 31 , 2011 , we have earned approximately $ 1.0 billion in revenue from contract research and development and the sale and licensing of our intellectual property . from the time we were founded through december 31 , 2011 , we have raised net proceeds of approximately $ 824.1 million from the sale of our equity securities and we have borrowed approximately $ 568.5 million under long-term debt arrangements to finance a portion of our operations . at december 31 , 2011 , we had cash , cash equivalents and short-term investments of $ 343.7 million and stockholders ' equity of $ 171.4 million . in comparison , we had cash , cash equivalents and short-term investments of $ 472.4 million and stockholders ' equity of $ 244.5 million at december 31 , 2010. at december 31 , 2011 , we had consolidated working capital of $ 284.0 million compared to $ 377.2 million at december 31 , 2010. the decrease in cash and working capital primarily relates to cash used for our operations .
```    
 Suspicious Activity Report : all of these different types of relationships are part of our unique business model and create near and long-term shareholder value . the clinical successes of the drugs in our pipeline continue to create new partnering opportunities . for example , in january 2012 , we formed a new strategic alliance with biogen idec to develop and commercialize isis-smn rx to treat spinal muscular atrophy . we received a $ 29 million upfront payment and are eligible to receive up to $ 270 million in payments and double-digit royalties on sales from isis-smn rx . since 2007 , our partnerships have generated an aggregate of more than $ 880 million in payments from upfront and licensing fees , equity purchase payments , milestone payments and research and development funding . in addition , for our current partnered programs we have the potential to earn more than $ 3.5 billion in future milestone payments . we also will share in the future commercial success of our inventions and drugs resulting from these partnerships through earn out , profit sharing , or royalty arrangements . our strong financial position is a result of the successful execution of our business strategy as well as our inventive and focused research and development capabilities . we protect our proprietary technologies and products through our substantial patent estate . as an innovator in rna-targeting drug discovery and development , we design and execute our patent strategy to provide us with extensive protection for our drugs and our technology . with our ongoing research and development , we continue to add to our substantial patent estate . the patents not only protect our key assetsour technology and our drugsthey also form the basis for lucrative licensing and partnering arrangements . to date , we have generated over $ 400 million from our intellectual property sale and licensing program that helps support our internal drug discovery and development programs . 49 business segments prior to 2011 , we reported our results in two separate segments : drug discovery and development and regulus . beginning in 2011 , we no longer consider regulus as an operating segment because our chief decision making officer no longer reviews regulus ' operating results for purposes of making resource allocations . therefore we now only operate in , and will provide financial information and results for , our drug discovery and development operations . in our drug discovery and development operations we are exploiting a novel drug discovery platform we created to generate a broad pipeline of first-in-class drugs for us and our partners . with our proprietary drug discovery platform we can rapidly identify drugs , providing a wealth of potential targets to treat a broad range of diseases . we focus our efforts in therapeutic areas where our drugs will work best , efficiently screening many targets in parallel and carefully selecting the best drugs . when we combine this efficiency with our rational approach to selecting disease targets we can build a large and diverse portfolio of drugs to treat a variety of health conditions , including cardiovascular , metabolic , inflammatory , ocular , severe and rare diseases , and cancer . we currently have 26 drugs in development . our partners are developing , with our support , 10 of these 26 drugs , which substantially reduces our development costs . critical accounting policies we prepare our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america . as such , we make certain estimates , judgments and assumptions that we believe are reasonable , based upon the information available to us . these judgments involve making estimates about the effect of matters that are inherently uncertain and may significantly impact our quarterly or annual results of operations and financial condition . each quarter , our senior management discusses the development , selection and disclosure of such estimates with our audit committee of our board of directors . in the following paragraphs , we describe the specific risks associated with these critical accounting policies . for all of these policies , we caution that future events rarely develop exactly as one may expect , and that best estimates routinely require adjustment . historically , our estimates have been accurate as we have not experienced any material differences between our estimates and our actual results . the significant accounting policies , which we believe are the most critical to aid in fully understanding and evaluating our reported financial results , require the following : · assessing the propriety of revenue recognition and associated deferred revenue ; · determining the proper valuation of investments in marketable securities and other equity investments ; · assessing the recoverability of long-lived assets , including property and equipment , intellectual property and licensed technology ; · determining the proper valuation of inventory ; · determining the appropriate cost estimates for unbilled preclinical studies and clinical development activities ; · estimating our net deferred income tax asset valuation allowance ; · determining when we are the primary beneficiary for entities that we identify as variable interest entities ; · determining the fair value of convertible debt without the conversion feature ; and · determining the fair value of stock-based compensation , including the expected life of the option , the expected stock price volatility over the term of the expected life and estimated forfeitures . descriptions of these critical accounting policies follow . revenue recognition we generally recognize revenue when we have satisfied all contractual obligations and are reasonably assured of collecting the resulting receivable . we are often entitled to bill our customers and receive payment from our customers in advance of recognizing the revenue under current accounting rules . in those instances in which we have received payment from our customers in advance of recognizing revenue , we include the amounts in deferred revenue on our consolidated balance sheet . story_separator_special_tag we consider the following factors : · evidence of decreases in market value ; · changes in the extent or manner in which we use an asset ; · adverse changes in legal factors or in the business climate that would affect the value of an asset ; · an adverse action or assessment by a regulator ; · an accumulation of costs significantly in excess of amounts originally expected to acquire or construct an asset ; · current period operating or cash flow loss combined with a history of operating or cash flow losses associated with an asset used for the purpose of producing revenue ; and · challenges or potential challenges to our existing patents , the likelihood that the united states patent and trademark office , or foreign equivalent , will issue an application and the scope of our issued patents . we recorded a charge of $ 1.9 million , $ 1.5 million and $ 696,000 for the years ended december 31 , 2011 , 2010 and 2009 , respectively , primarily related to the write-down of intangible assets to their estimated net realizable values . valuation of inventory we capitalize the costs of raw materials that we purchase for use in producing our drugs because until we use these raw materials they have alternative future uses . we include in inventory raw material costs for drugs that we manufacture for our partners under contractual terms and that we use primarily in our clinical development activities and drug products . we can use each of our raw materials in multiple products and , as a result , each raw material has future economic value independent of the development status of any single drug . for example , if one of our drugs failed , we could use the raw materials allocated for that drug to manufacture our other drugs . we expense these costs when we deliver the drugs to our partners , or as we provide these drugs for our own clinical trials . we reflect our inventory on the balance sheet at the lower of cost or market value under the first-in , first-out method . we review inventory periodically and reduce the carrying value of items we consider to be slow moving or obsolete to their estimated net realizable value . we consider several factors in estimating the net realizable value , including shelf life of raw materials , alternative uses for our drugs and clinical trial materials and historical write-offs . estimated liability for clinical development costs we record accrued liabilities related to expenses for which service providers have not yet billed us related to products or services that we have received , specifically related to ongoing preclinical studies and clinical trials . these costs primarily relate to third-party clinical management costs , laboratory and analysis costs , toxicology studies and investigator grants . we have multiple drugs in concurrent preclinical studies and clinical trials at several clinical sites throughout the world . in order to ensure that we have adequately provided for ongoing preclinical and development costs during the period in which we incur such costs , we maintain an accrual to cover these expenses . we update our estimate for this accrual on at least a quarterly basis . the assessment of these costs is a subjective process that requires judgment . upon settlement , these costs may differ materially from the amounts accrued in our consolidated financial statements . our historical accrual estimates have not been materially different from our actual amounts . valuation allowance for net deferred tax assets we record a valuation allowance to offset our net deferred tax assets because we are uncertain that we will realize these net tax assets . except for 2009 , we have had net losses since inception , and as a result , we have established a 100 percent valuation allowance for our net deferred tax asset . if we determine that we are able to realize a portion or all of these deferred tax assets in the future , we will record an adjustment to the valuation allowance . 54 segment information prior to 2011 , we reported our results in two separate segments : drug discovery and development and regulus . beginning in the first quarter of 2011 , we no longer consider regulus as an operating segment because our chief decision making officer no longer reviews regulus ' operating results for purposes of making resource allocations . therefore we only provide financial information and results for our drug discovery and development operations . convertible debt we account for convertible debt instruments that may be settled in cash upon conversion ( including partial cash settlement ) by separating the liability and equity components of the instruments in a manner that reflects our nonconvertible debt borrowing rate when we recognize interest expense in subsequent periods . as a result , we assigned a value to the debt component of our 2 5 / 8 percent convertible notes equal to the estimated fair value of a similar debt instrument without the conversion feature , which resulted in us recording the debt at a discount . we are amortizing the resulting debt discount over the life of the debt as additional non-cash interest expense utilizing the effective interest method . at adoption , we retrospectively implemented the presentation and disclosure requirements to all periods presented in our consolidated financial statements . for additional information , see note 5 , long-term obligations and commitments , in the notes to the consolidated financial statements . determining the fair value of the debt component requires the use of accounting estimates and assumptions . these estimates and assumptions are judgmental in nature and could have a significant impact on the determination of the debt component , and the associated non-cash interest expense . we determine the carrying amount of the liability component by measuring the fair value of a similar debt instrument that does not

