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J&J to Appeal as Judge Confirms Jury Order in Talc Case
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A judge at the Missouri trial court has affirmed a previous jury’s verdict, ordering Johnson & Johnson (JNJ - Free Report) to pay a hefty fine of $4.69 billion in a lawsuit related to its talc-based products, including its baby powder The lawsuit stated that the plaintiffs, involving 22 women and their families, developed ovarian cancer due to the presence of asbestos in the products.
The verdict is the biggest blow J&J has faced to date related to allegations that its talc-based products cause cancer. In July, a verdict was given by the jury which ordered the company pay $550 million in compensatory damages and $4.14 billion in punitive damages.
J&J continues to deny the allegations and has vowed to fight the Judge’s order by pursuing all available remedies under the appellate. The company is confident about the fact that its product is completely safe and will provide data from scientific studies showing that the talc is safe and its products do not contain asbestos. The company expects the decision to turn in its favor on appeal. As a reminder, other unfavorable talc verdicts provided by the Missouri court were overturned on appeal.
However, the company had more than 10,000 cases pending related to body powders containing talc in the United States. Moreover, the talc is not the only product facing lawsuits. There are pending cases against its drugs and medical device products as well.
Talc is generally used in products which falls under the company’s consumer segment. The segment generated almost 17% of total product sales in the first six months of 2018. Baby Care category sales in the United States declined 17.7% in the said period compared with the year-ago period.
Year to date, shares of the company have declined 3.6% against the industry’s increase of 5.5%.
However, J&J generates around half of its total product sales from the pharmaceutical segment. The company’s progress with the development of new and available drugs is likely to boost segment sales further, which grew almost 20% year over year in the first six months of 2018. The new cancer drugs have shown strong growth.
The company is likely to launch or get approval for 10 new drugs over the next few years, which have blockbuster potential. It is also targeting more than 50 line extensions to expand the patient population for its drugs.
Last month, the company’s single-tablet regimen, Symtuza, received approval for the treatment of HIV. Moreover, earlier this month, the company along with its partner GlaxoSmithKline (GSK - Free Report) announced the non-inferiority of their two-drug HIV regimen compared to the current standard of care, which is a three-drug regimen, in a phase III study.
Bristol-Myers’ earnings per share estimates have increased from $3.43 to $3.59 for 2018 and from $3.66 to $3.83 for 2018 over the past 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 6.39%.
Lilly’s earnings per share estimates have increased from $5.16 to $5.42 for 2018 and from $5.55 to $5.65 for 2018 over the past 30 days. The company delivered a positive earnings surprise in all the trailing four quarters with an average beat of 10.15%. The stock has rallied 24.4% so far this year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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J&J to Appeal as Judge Confirms Jury Order in Talc Case
A judge at the Missouri trial court has affirmed a previous jury’s verdict, ordering Johnson & Johnson (JNJ - Free Report) to pay a hefty fine of $4.69 billion in a lawsuit related to its talc-based products, including its baby powder The lawsuit stated that the plaintiffs, involving 22 women and their families, developed ovarian cancer due to the presence of asbestos in the products.
The verdict is the biggest blow J&J has faced to date related to allegations that its talc-based products cause cancer. In July, a verdict was given by the jury which ordered the company pay $550 million in compensatory damages and $4.14 billion in punitive damages.
J&J continues to deny the allegations and has vowed to fight the Judge’s order by pursuing all available remedies under the appellate. The company is confident about the fact that its product is completely safe and will provide data from scientific studies showing that the talc is safe and its products do not contain asbestos. The company expects the decision to turn in its favor on appeal. As a reminder, other unfavorable talc verdicts provided by the Missouri court were overturned on appeal.
However, the company had more than 10,000 cases pending related to body powders containing talc in the United States. Moreover, the talc is not the only product facing lawsuits. There are pending cases against its drugs and medical device products as well.
Talc is generally used in products which falls under the company’s consumer segment. The segment generated almost 17% of total product sales in the first six months of 2018. Baby Care category sales in the United States declined 17.7% in the said period compared with the year-ago period.
Year to date, shares of the company have declined 3.6% against the industry’s increase of 5.5%.
However, J&J generates around half of its total product sales from the pharmaceutical segment. The company’s progress with the development of new and available drugs is likely to boost segment sales further, which grew almost 20% year over year in the first six months of 2018. The new cancer drugs have shown strong growth.
The company is likely to launch or get approval for 10 new drugs over the next few years, which have blockbuster potential. It is also targeting more than 50 line extensions to expand the patient population for its drugs.
Last month, the company’s single-tablet regimen, Symtuza, received approval for the treatment of HIV. Moreover, earlier this month, the company along with its partner GlaxoSmithKline (GSK - Free Report) announced the non-inferiority of their two-drug HIV regimen compared to the current standard of care, which is a three-drug regimen, in a phase III study.
Johnson & Johnson Price
Johnson & Johnson Price | Johnson & Johnson Quote
Zacks Rank & Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the same space are Bristol-Myers Squibb Company (BMY - Free Report) and Eli Lilly and Company (LLY - Free Report) . While Bristol-Myers sports a Zacks Rank #1 (Strong Buy), Lilly carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Bristol-Myers’ earnings per share estimates have increased from $3.43 to $3.59 for 2018 and from $3.66 to $3.83 for 2018 over the past 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 6.39%.
Lilly’s earnings per share estimates have increased from $5.16 to $5.42 for 2018 and from $5.55 to $5.65 for 2018 over the past 30 days. The company delivered a positive earnings surprise in all the trailing four quarters with an average beat of 10.15%. The stock has rallied 24.4% so far this year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>