J&J Posts Impairment Charge on Key Drug From Alios Deal
October 16 2018 - 9:20AM
Dow Jones News
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 colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 16, 2018 09:05 ET (13:05 GMT)
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