Johnson & Johnson takes $630M hit on RSV drug bought with Alios

Four years ago, Johnson & Johnson splashed out $1.75 billion to take control of antiviral specialist Alios, but the lead drug from that deal now seems to be in trouble. J&J revealed in August that phase 2b trials of respiratory syncytial virus (RSV) drug lumicitabine—also known as AL-8176—had been placed on hold, and it now says in an SEC filing that it has taken a $630 million impairment charge in the third quarter as a result.
In the filing, J&J said it had to “reassess the carrying value of the AL-8176 in-process research and development asset”, adding that it will “monitor the remaining $900 million intangible assets for further impairment.” The news leaves the fate of the orally active antiviral, which is also being tested in human metapneumovirus (hMPV) infections, hanging by a thread.