Johnson & Johnson looking to bankruptcy to resolve 40,000 baby powder cancer suits
The company is looking to resolve the cases in bankruptcy court.
Johnson & Johnson looking to bankruptcy to resolve 40,000 baby powder cancer suits
ByAaron Katersky
October 20, 2021, 9:46 AM
• 3 min read
MORE: Johnson & Johnson asks high court to void $2B talc verdict
The company has denied its signature Johnson’s Baby Powder and other talc-based products contained asbestos and caused cancer, as alleged by tens of thousands of plaintiffs. J&J has spent nearly $1 billion defending itself, according to a court filing.
“Debtor continues to stand behind the safety of its cosmetic talc and does not believe the claims have merit,” J&J said in a court filing. “The unfortunate reality is that this filing is necessitated by an unrelenting assault by the plaintiff trial bar, premised on the false allegations that the Debtor's 100+ year old talc products contain asbestos and cause cancer.”
The company stopped selling Baby Powder in the United States and Canada in May 2020.
“Johnson's Baby Powder has been a staple for hundreds of millions of people for over 125 years. If claimants' allegations were correct that the product causes disease, there should have been long ago an epidemic clearly attributed to the use of the product. That is not the case,” the filing said.
Johnson & Johnson has put $2 billion into a settlement fund to pay the talc claims even though the company said “$2 billion is substantially in excess of any liability the Debtor should have.”
Johnson & Johnson said it sold $502 million of its Covid-19 vaccine in the third quarter, in its earnings report Tuesday that beat Wall Street’s profit expectations.
Here’s how J&J did compared with what Wall Street expected, according to average estimates compiled by Refinitiv:
J&J increased its full-year earnings guidance to between $9.77 per share and $9.82 per share, from its previous estimates of $9.60 to $9.70 per share. It expects sales to range from $94.1 billion to $94.6 billion, up from previous guidance of $93.8 billion to $94.6 billion.
At the same time, the company maintained its Covid vaccine sales outlook for the year at $2.5 billion.
Shares of J&J jumped more than 2% in early trading.
The company’s better-than-expected profit was bolstered by higher sales in its consumer health, pharmaceutical and medical devices units.
Its consumer unit, which makes products such as Neutrogena face wash and Listerine, generated $3.7 billion in revenue, up 5.3% from a year earlier.
J&J’s pharmaceutical business, which developed the single-shot Covid vaccine, generated $12.9 billion in revenue, a 13.8% year-over-year increase.
Its medical device unit generated $6.6 billion, an 8% rise. That unit was hit hard last year as the coronavirus pandemic forced hospitals to postpone elective surgeries and Americans stayed home.
The company is looking to resolve the cases in bankruptcy court.
Johnson & Johnson looking to bankruptcy to resolve 40,000 baby powder cancer suits
ByAaron Katersky
October 20, 2021, 9:46 AM
• 3 min read
![merlin_142367775_4cbbb73f-e9c9-40a5-a134-1a46725e9d3f-superJumbo.jpg](https://static01.nyt.com/images/2019/03/14/business/14talc-sub/merlin_142367775_4cbbb73f-e9c9-40a5-a134-1a46725e9d3f-superJumbo.jpg)
MORE: Johnson & Johnson asks high court to void $2B talc verdict
The company has denied its signature Johnson’s Baby Powder and other talc-based products contained asbestos and caused cancer, as alleged by tens of thousands of plaintiffs. J&J has spent nearly $1 billion defending itself, according to a court filing.
“Debtor continues to stand behind the safety of its cosmetic talc and does not believe the claims have merit,” J&J said in a court filing. “The unfortunate reality is that this filing is necessitated by an unrelenting assault by the plaintiff trial bar, premised on the false allegations that the Debtor's 100+ year old talc products contain asbestos and cause cancer.”
The company stopped selling Baby Powder in the United States and Canada in May 2020.
“Johnson's Baby Powder has been a staple for hundreds of millions of people for over 125 years. If claimants' allegations were correct that the product causes disease, there should have been long ago an epidemic clearly attributed to the use of the product. That is not the case,” the filing said.
Johnson & Johnson has put $2 billion into a settlement fund to pay the talc claims even though the company said “$2 billion is substantially in excess of any liability the Debtor should have.”
Johnson & Johnson said it sold $502 million of its Covid-19 vaccine in the third quarter, in its earnings report Tuesday that beat Wall Street’s profit expectations.
Here’s how J&J did compared with what Wall Street expected, according to average estimates compiled by Refinitiv:
- Adjusted EPS: $2.60 per share vs $2.35 expected.
- Revenue: $23.34 billion vs $23.72 billion expected.
J&J increased its full-year earnings guidance to between $9.77 per share and $9.82 per share, from its previous estimates of $9.60 to $9.70 per share. It expects sales to range from $94.1 billion to $94.6 billion, up from previous guidance of $93.8 billion to $94.6 billion.
At the same time, the company maintained its Covid vaccine sales outlook for the year at $2.5 billion.
Shares of J&J jumped more than 2% in early trading.
The company’s better-than-expected profit was bolstered by higher sales in its consumer health, pharmaceutical and medical devices units.
Its consumer unit, which makes products such as Neutrogena face wash and Listerine, generated $3.7 billion in revenue, up 5.3% from a year earlier.
J&J’s pharmaceutical business, which developed the single-shot Covid vaccine, generated $12.9 billion in revenue, a 13.8% year-over-year increase.
Its medical device unit generated $6.6 billion, an 8% rise. That unit was hit hard last year as the coronavirus pandemic forced hospitals to postpone elective surgeries and Americans stayed home.