Categories Markets, Retail

Johnson & Johnson: Key points on the asbestos report and stock slide

Johnson & Johnson’s (JNJ) stock fell over 8% in intraday trade on Friday after Reuters published a report stating that the company was aware that its baby powder contained the carcinogenic asbestos. The consumer products company has thousands of lawsuits pending over claims that its baby powder has led to cancer.

Here are some key points from the report:

# Reuters went through company memos, internal reports and other confidential documents, along with deposition and trial testimony, which showed that from 1971 to the early 2000s, J&J’s raw talc and finished powders tested positive for small amounts of asbestos occasionally and that the company did not disclose it to regulators or the public.

# The documents also show that efforts to influence the plans of US regulators to limit asbestos in cosmetic talc products and scientific research on the health effects of talc were successful.

# Several reports from J&J’s scientists and external labs identified contaminants in talc and finished powder products as asbestos or described them in terms typically applied to asbestos.

It’s a whopping $4.7 billion penalty for Johnson & Johnson in talcum powder case!

# In 1976, the US FDA was considering limits on asbestos in cosmetic talc products. During this time, despite at least three tests by three different labs from 1972 to 1975 finding asbestos in its talc, including a case of reportedly high levels, J&J told the agency that no asbestos was found in any sample of talc produced between December 1972 and October 1973.

Ernie Knewitz, J&J’s vice president of global media relations, wrote in an emailed response to Reuters’ findings, “Plaintiffs’ attorneys out for personal financial gain are distorting historical documents and intentionally creating confusion in the courtroom and in the media. This is all a calculated attempt to distract from the fact that thousands of independent tests prove our talc does not contain asbestos or cause cancer. Any suggestion that Johnson & Johnson knew or hid information about the safety of talc is false.”

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top