2018.01.2320:36:00UTC+00J&J Shares Hit by Reported New U.S. Tax Law-Related Charge

Healthcare company Johnson & Johnson reported taking a $13.6 billion charge associated with the new U.S. tax law and planned to repatriate billions of dollars from abroad immediately.

The firm posted a quarterly loss due to the charge, but surpassed analysts' profit projections excluding estimates, aided by the rise in cancer drugs and treatments from its $30-billion purchase of Actelion in 2017.

Including the tax charge, J&J booked a loss of $10.71 billion or $3.99 per share in the quarter, against a profit of $3.81 billion or $1.38 billion a year prior. Excluding items, the conglomerate earning $1.74 per share, marginally above analysts

Despite this, J&J shares declined 4.2 percent to $141.97 in afternoon trading as investors shed their holdings after the shares settled just below their record high on Monday.

On Tuesday, the U.S. appeals court also upheld a ruling that invalidated an important J&J patent on its winning rheumatoid arthritis drug Remicade.

Late last year, U.S. President Donald Trump signed the new U.S. tax law that significantly reduced corporate tax, and many large U.S. companies and pharmaceutical firms have stated they will take advantage of its new, lower tax rate on repatriated foreign earnings and cash.

The company expect an adjusted 2018 profit of $8 to 8.20 per share on revenue of $80.6 billion to $81.4 billion. The figures are higher than analysts' average estimate of $7.87 per share profit on a $80.7 billion revenue.