Johnson & Johnson: to record charge on abandoned drug

(CercleFinance.com) - Johnson & Johnson on Friday said that it will record an intangible asset impairment charge of 700 million dollars after abandoning the development of AL-8176, an investigational drug for the treatment of respiratory viruses.


The non-cash after tax impairment charge represents the remaining intangible asset value related to AL-8176 and will be reflected in the company's fiscal first quarter results, J&J said.

The US health giant previously disclosed a non-cash after-tax partial impairment charge for AL-8176 in the fiscal third quarter of 2018, which amounted to approximately 630 million dollars.

J&J took charge of AL-8176 due to the acquisition of Alios Biopharma in 2014, for which it paid 1.75 billion dollars in cash.

However, J&J shares seemed to be resisting on Friday, limiting their losses on the Dow Jones, slipping just 0.3% in morning trading.

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