The manufacturer of well-known consumer brands like Aveeno and Tylenol, Johnson & Johnson is facing several lawsuits claiming that its talc-based baby powder causes cancer, the accusation is that it helped fuel the nationwide opioid epidemic.
Johnson & Johnson reported an increase in its Q3 revenue and earnings, beating several industry expectations. Johnson & Johnson shares also increased by 2%, which is likely to reach $133.70, which has helped address investor concerns over increasing legal challenges with regards to its antipsychotic drug Risperdal, talc-based products, medical devices, and opioids. The company has expanded its full-year guidance from the previous $8.52 to $8.62 a share to $8.63 to $8.68 per share, with revenue forecast between $81.9 billion to $82.4 billion. Johnson & Johnson failed to offer an updated cost-sheet on its legal expenses, which over the first eight to nine months, have reached $832 million. Chief Financial Officer Joseph Wolk stated in a statement, “that the company is open to “a reasonable” settlement that would settle the hundreds of opioid lawsuits from state and local municipalities, adding its painkillers represented less than 1% of the overall market.” “Our third-quarter results represent strong performance, driven by underlying competitive growth in Pharmaceuticals and Medical Devices, as well as continued optimization in our Consumer business,” J&J Chairman and CEO Alex Gorsky said in a statement.
Sales of Johnson & Johnson’s rheumatoid arthritis drug Remicade is likely to decrease by 25% year over year. Sales of its multiple myeloma drugs named Darzalex is expected to increase by 53% year over year to reach $764 million, whereas sales of its cancer drug Imbruvica is anticipated to increase by 30.5% and reach $921 million. Despite several lawsuits, Johnson & Johnson shares were up by around 1% this year this week, and some Wall Street analysts were predicting a relatively dull quarter with modest development in its consumer and pharmaceutical units.