Shares of Johnson & Johnson fell Monday on a report that courtroom proceedings might expose probably damaging paperwork.
J&J is dealing with quite a few lawsuits claiming its talc merchandise similar to Johnson’s Baby Powder prompted cancer. The company has insisted its baby powder doesn’t include asbestos and causes neither mesothelioma nor ovarian cancer.
In a press release, a J&J spokesman pointed to a California decide ruling in favor of J&J in November in a lawsuit by a lady who stated she developed mesothelioma after utilizing the corporate’s talc-based mostly merchandise. He stated the corporate would proceed to defend its place in future instances.
“We are confident that our talc products are, and always have been, free of asbestos, based on decades of monitoring, testing and regulation dating back to the 1970s,” he stated. “Historical testing of samples by the FDA, numerous independent laboratories, and numerous independent scientists have all confirmed the absence of asbestos in our talc products.”
J&J’s inventory fell 5 % on Monday. Jefferies analyst Jared Holz stated the report reads poorly, however he doubts it’s going to have an actual influence.
In a word to buyers, Wells Fargo analyst Larry Biegelsen stated the considerations on the talc lawsuits “appear overblown.”
Even if J&J settled all 5,500 instances for $280,000 per case (the very best quantity amongst legal responsibility instances within the drug and system sectors the agency has tracked), the whole legal responsibility to J&J can be $1.5 billion, he wrote. At the top of the fourth quarter, J&J had $18.four billion of money and marketable securities.