Johnson & Johnson Knew For Decades That Its Baby Powder Had Cancer-causing Asbestos: Report

Agencies
December 15, 2018

Dec 15: Shares of Johnson & Johnson fell 10 percent on Friday and were on track to post their biggest percentage drop in more than 16 years, after Reuters reported that the pharma major knew for decades that cancer-causing asbestos lurked in its Baby Powder.

The decline in shares erased about $40 billion from the company's market capitalisation, with investors worrying about the impact of the report as it faces thousands of talc-related lawsuits.

The stock was the biggest drag on the broader Dow Jones Industrial Average DJI and S&P 500 SPX indexes and was among the most traded on U.S. exchanges. About 28 million shares exchanged hands by 1830 GMT, more than three times its 25-day moving average.

J&J was found to have known about the presence of small amounts of asbestos in its products from as early as 1971, a Reuters examination of company memos, internal reports and other confidential documents showed.

The report also said the company had commissioned and paid for studies conducted on its Baby Powder franchise and hired a ghostwriter to redraft the article that presented the findings in a journal.

In response to the report, the company said "any suggestion that Johnson & Johnson knew or hid information about the safety of talc is false."

"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," Ernie Knewitz, J&J's vice president of global media relations, wrote in an emailed response to the report.

The company also said Baby Powder was asbestos-free and added it would continue to defend the safety of its product.

At least two Wall Street analysts said the stock appeared to be oversold on the news.

"In our opinion litigation overhangs are real, and we do not minimize the situation, but the stock pull back does seem over done to us," BMO Capital Markets analyst Joanne Wuensch said.

J&J, in 1976, had assured the U.S. Food and Drug Administration that no asbestos was "detected in any sample" of talc produced between December 1972 and October 1973 when at least three tests by three different labs from 1972 to 1975 had found asbestos in its talc.

The company has been battling more than 10,000 cases claiming its Baby Powder and Shower to Shower products cause ovarian cancer. The products have also been linked with mesothelioma, a rare and deadly form of cancer that affects the delicate tissue that lines body cavities.

"We believe it is highly unlikely the company's exposure to this talc issue will even come close to the $40 billion in lost market cap today," J.P. Morgan analysts said.

They added that talc was not an issue that would resolve quickly for J&J and expect shares to trade at a lower multiple pending further clarity on the company’s exposure to the issue.

While J&J has dominated the talc powder market for more than 100 years, the products contributed to a mere 0.5 percent of its revenue of $76.5 billion last year. Talc cases make up fewer than 10 percent of all personal injury lawsuits pending against the company.

However, Baby Powder is considered essential to J&J's image as a caring company – a "sacred cow," as one 2003 internal email put it.

CFRA Research analyst Colin Sarcola said, "We see today's news potentially impacting sales of everything from baby shampoo to prosthetic hips."

"Given these elevated risks, we no longer feel JNJ shares are attractive at recent prices," Sarcola added.

Shares were last down 8 percent at $135.85, also pulling down the broader S&P 500 healthcare index.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 8,2024

flightairindia.jpg

Nearly 80 Air India Express flights were canceled after the cabin crew members went on a "mass sick leave", official sources said on Wednesday.

As many as 79 international and domestic flights were canceled after about 300 senior cabin crew members reported sick at the last minute and switched off their mobile phones.

The Air India Express management is currently trying to reach out to the crew, who are protesting against the new employment term at the Tata Group-owned airline, sources said.

The cabin crew has also alleged that there was a lack of equality in the treatment of the staff after the merger with Tata Group. They claim that some staff members were offered lower job position despite clearing interviews, sources said.

"A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations. While we are engaging with the crew to understand the reasons behind these occurrences, our teams are actively addressing this issue to minimise any inconvenience caused to our guests as a result," an Air India Express spokesperson said.

"We sincerely apologise to our guests for this unexpected disruption and emphasise that this situation does not reflect the standard of service we strive to provide," the spokesperson added.

Guests impacted by cancellations will be offered a full refund or complimentary rescheduling to another date, the airline said.

Several passengers took to their social media accounts and complained about the sudden cancellations of their flights. They said that they had "no information" about the cancellations.

Some "very disappointed" passengers on X said that they had reached the airport when they were informed that their flights were canceled.

"We apologise for any inconvenience. Please be informed that your flight has been canceled due to operational reasons," Air India Express said in response to one of the posts on X.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 7,2024

rafah.jpg

Israeli military aircraft have heavily bombed the city of Rafah in the southern Gaza Strip accompanied with ground advances shortly after the Palestinian resistance movement Hamas said it had agreed to a proposal on ceasefire in Gaza.

A Palestinian journalist reported flares in the night sky, while locals said dozens of reconnaissance drones flew overhead.

The official Palestinian news agency Wafa and Egyptian media said Israeli military vehicles advanced towards the Palestinian side of the Rafah crossing with Egypt, as well as the Karem Shalom crossing with the Israeli-occupied territories.

A Palestinian security official and an Egyptian authority have told the Associated Press news agency that Israeli tanks have entered Rafah, reaching as close as 200 meters from Rafah’s border crossing with neighboring Egypt.

The Israeli military has said it was conducting “targeted strikes” against Hamas in eastern Rafah.

Israeli prime minister Benjamin Netanyahu's office has also said "Israel is continuing the operation in Rafah to exert military pressure on Hamas" in order to advance the release of captives and what it called "the other objectives of the war."

In the meantime, it described the proposal on ceasefire as "far from Israel's essential demands," but added that it would send negotiators for talks "to exhaust the potential for arriving at an agreement."

The military strikes on Rafah came ahead of talks in Egypt on Tuesday aimed at sealing a truce proposal accepted by Hamas, which was put forward by Qatari and Egyptian mediators. 

According to a copy of the proposal, there will be three phases to ending Israel’s onslaught against Gaza.

The first phase calls for a complete withdrawal of Israeli troops from the Netzarim corridor and the return of displaced Palestinians to their homes. The second phase involves an announcement of a permanent cessation of military operations. In the last phase, there would be a complete end to the blockade of the Gaza Strip. 

In return, Israel would be required to release an unspecified number of Palestinian prisoners, withdraw its troops from certain regions of the Gaza Strip, and allow Palestinians to travel from the south of the coastal sliver to the north.

About 1.5 million Palestinians are sheltering in Rafah, once designated a “safe zone” by the Israeli military. Palestinians are now struggling to evacuate the city, after the Israeli military dropped leaflets ordering them to leave as a large-scale assault on the city is planned.

UN Secretary General Antonio Guterres has said that a ground invasion of Rafah would be “intolerable” and called on Israel and Hamas “to go an extra mile” to reach a truce deal.

“This is an opportunity that cannot be missed, and a ground invasion in Rafah would be intolerable because of its devastating humanitarian consequences, and because of its destabilizing impact in the region,” Guterres told reporters on Monday ahead of a meeting with Italian President Sergio Mattarella in New York.

Jordanian Foreign Minister Ayman Safadi has also warned that Israel is “jeopardizing the deal by bombing Rafah.”

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 6,2024

karnatakabjpcong.jpg

Bengaluru: The Congress and BJP will lock horns on the electoral battleground again in less than a fortnight in Karnataka, as the stage is set for the second phase of elections in the 14 remaining Lok Sabha seats on Tuesday.

It is going to be a straight fight between the ruling Congress and BJP in Parliamentary segments in the northern districts. The JD(S) is not contesting in these seats and is supporting its National Democratic Alliance (NDA) partner -- the BJP.

The state has a total of 28 Lok Sabha constituencies. The first phase of polling in 14 seats in most of the southern and coastal districts was held on April 26.

A total of 227 candidates -- 206 men and 21 women -- are in the fray for the second phase.

More than 2.59 crore voters are eligible to exercise their franchise in 28,269 polling stations where voting will take place between 7 am to 6 pm.

The segments where elections will be held on Tuesday are: Chikkodi, Belgaum, Bagalkot, Bijapur, Gulbarga, Raichur, Bidar, Koppal, Bellary, Haveri, Dharwad, Uttara Kannada, Davangere and Shimoga.

In the 2019 Lok Sabha polls, BJP had swept all these 14 seats, defeating Congress and JD(S), which were in alliance and ruling the state then.

Having scored a thumping victory in the Assembly elections last year, the Congress now appears determined to put up a strong show.

Karnataka is the most important state for the BJP in south India as it's only here that it has held power in the past.

Speaking to PTI, Karnataka Chief Electoral Officer Manoj Kumar Meena said adequate security arrangements have been made for Tuesday's polling.

"Around 1.45 lakh polling officials have been deployed across the 14 constituencies. In addition, 35,000 civil police personnel, 65 companies of Central Paramilitary forces and armed police of other states will be deployed for the polling day," he said.

Besides this, 4,000 micro-observers will also be on duty and 17,000 polling stations will be covered by webcasting, he added.

Davangere has the maximum number of 30 candidates, followed by 23 in Shimoga and Raichur has the least number - eight.

Former Chief Ministers Basavaraj Bommai (Haveri) and Jagadish Shettar (Balgaum), Union Ministers Pralhad Joshi (Dharwad) and Bhagwanth Khuba (Bidar) -- all from BJP; Congress' Geetha Shivrajkumar (Shimoga) -- wife of actor Shivrajkumar and daughter of former CM S Bangarappa and AICC President Mallikarjun Kharge's son-in-law Radhakrishna Doddamani (Gulbarga), are among the prominent names in the fray.

Also in the contest are MP and veteran BJP leader B S Yediyurappa's son B Y Raghavendra, suspended party leader and former Deputy CM K S Eshwarappa -- both from Shimoga, former Speaker Vishweshwar Hegde Kageri and ex-Minister B Sreeramulu of BJP from Uttara Kannada and Bellary respectively and retired IAS officer G Kumar Naik of Congress from Raichur.

Stakes are high for several Ministers in this phase with their children in fray.

Sons of Ministers Laxmi Hebbalkar and Eshwar Khandre - Mrinal Ravindra Hebbalkar and Sagar Khandre - are contesting from Belgaum and Bidar respectively, while daughters of Ministers Satish Jarkiholi and Shivanand Patil -Priyanka Jarkiholi and Samyukta Patil- are in contention in Chikkodi and Bagalkot respectively.

Prabha Mallikarjun, wife of Minister S S Mallikarjun and daughter-in-law of veteran Congress leader Shamanur Shivashankarappa, is in the fray from Davangere.

The Congress' performance in the elections, especially in the second phase which covers almost all Lingayat-dominated districts, is crucial, as the party did not win one of them in 2019, and to also check whether the grand old party has managed to retain the support of a section of Lingayats -- considered as the BJP's core vote-base -- which seemed to have somewhat shifted towards it in the 2023 Assembly polls.

The Lok Sabha election is being seen as a big test of sorts for Congress state unit chief D K Shivakumar, who has made no secret of his ambition to become chief minister, amid speculations of change in guard mid-way of the Assembly term. The stakes are also high for Chief Minister Siddaramaiah, as victory in this election is seen as key to strengthening his hands, analysts say.

It is also seen as a kind of a "litmus test" for state BJP president B Y Vijayendra, who has the onerous task of helping the party retain its supremacy in the Lok Sabha polls, by regaining its traditional Lingayat vote-base.

Ensuring a BJP sweep is paramount for the son of veteran leader B S Yediyurappa, to consolidate his position and silence critics who have questioned his selection to the post, overlooking seniors and seasoned hands.

The ruling Congress is mostly banking on the implementation of its populist five guarantee schemes while the BJP seems to be leveraging the "Modi factor" to the hilt.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.