J&J Posts Impairment Charge on Key Drug From Alios Deal

   By Colin Kellaher 
 

Johnson & Johnson (JNJ) on Tuesday said it recorded a $630 million impairment charge in the third quarter related to the key drug in its acquisition of Alios Biopharma Inc. and warned that it may post a further impairment on the asset.

J&J in late 2014 agreed to pay $1.75 billion for Alios, an antiviral drug-maker whose lead candidate, AL-8176, targets respiratory syncytial virus, the leading cause of bronchiolitis and pneumonia in children under age 1 in the U.S., according to the Centers for Disease Control and Prevention.

J&J earlier this year suspended phase 2B trials of AL-8176 pending analysis of information it received late in the second quarter. The New Brunswick, N.J., company on Tuesday said it received further information during the third quarter that prompted a reassessment of the $1.7 billion carrying value of the AL-8176 in-process research-and-development asset.

The company said it continues to evaluate the AL-8176 development program, adding that it will monitor the remaining $900 million intangible asset for further impairment.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

October 16, 2018 09:05 ET (13:05 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.