What's new

Hidden ‘for decades’: Johnson & Johnson may have known about ‘carcinogens’ in baby powder since 1971

TaiShang

ELITE MEMBER
Apr 30, 2014
27,843
70
98,200
Country
China
Location
Taiwan, Province Of China
Hidden ‘for decades’: Johnson & Johnson may have known about ‘carcinogens’ in baby powder since 1971

Published time: 14 Dec, 2018 21:05
Edited time: 14 Dec, 2018 21:38


5c140a22fc7e935b148b456a.jpg

© AFP / Justin Sullivan


Johnson & Johnson knew “for decades” that their talcum baby powder contained asbestos and worked to conceal it from federal regulators and the public, an investigation by Reuters has found.

J&J stock plunged 8 percent to $136.10 after Reuters reported that the company knew about asbestos in its products since the 1970s. Its the biggest loss in 16 years.

The Reuters report says that J&J failed to inform the Food and Drug Administration (FDA) that at least three tests from three different labs carried out between 1972 and 1975 had found asbestos in the brand’s iconic baby powder product. In one case, the levels of asbestos were reported as “rather high.”

Officials’ fault or parents’ neglect? 7yo migrant child dies in custody after crossing US border

Even when the FDA was weighing limits on asbestos in cosmetic talc products in 1976, J&J assured the regulatory body that none had been detected “in any sample” between December 1972 and October 1973.

The pharmaceutical company is facing thousands of lawsuits alleging that the product caused cancer, but J&J has always denied the allegations and insisted that the product is safe.

5c141abcdda4c8f25d8b464f.JPG

© Reuters / REUTERS/Jason Reed

Reuters examined internal documents, as well as trial depositions and testimony which they say prove that J&J knew the powder was sometimes tainted with “carcinogenic asbestos” from “at least 1971 to the early 2000s” and that executives, mine managers, scientists, doctors and lawyers worried about the issue and how to address it while keeping it hidden from regulators and the public.

The Reuters report noted that most internal J&J asbestos tests did not find asbestos, but said that while the company’s testing methods had improved over time, they “have always had limitations that allow trace contaminants to go undetected” and that only a “tiny fraction” of the company’s talc is ever tested. The FDA's own examinations also found no asbestos in powder samples in the 1970s, but Reuters says those tests did not use “the most sensitive detection methods.”

Sex abuse scandal-plagued Boy Scouts may declare bankruptcy

J&J vice president Ernie Knewitz told Reuters that plaintiffs' attorneys are “out for personal financial gain” and are “distorting historical documents and intentionally creating confusion in the courtroom and in the media.” The company's outside litigation counsel Peter Bicks dismissed positive tests for asbestos cited by Reuters as “outlier” results, but lab tests conducted by experts hired by plaintiffs have also shown asbestos in J&J’s products.

A note on a statement for the company's website in 2013 acknowledged that it would be misleading to say that the talc-based products had “always” been asbestos free.

5c140e79fc7e934b638b4651.jpg

© Reuters

The results of lawsuits taken against J&J have been mixed. While juries in some cases have sided with the plaintiffs, some have sided with the company and others reached no verdicts.

J&J’s “selective use” of test results influenced a decision made by a New Jersey judge earlier this year to rule against the company in a case claiming the products caused cancer. The judge said J&J had engaged in “misrepresentation by omission.”

J&J has dominated the talc market for more than 100 years and while talc products accounted for just $420 million of J&J's $76.5 billion in revenue last year, Johnson’s Baby Powder is still considered, as one company email from 2003 put it, a “sacred cow” of its product line.

https://www.rt.com/usa/446510-johnson-baby-powder-asbestos/

***

@long_ , @Stranagor , @TANAHH , @Jlaw
 
Last edited:
Johnson & Johnson shares tumble on report company knew of cancer-causing asbestos in baby powder


REUTERS
PUBLISHED 1 DAY AGO


Shares of Johnson & Johnson fell 10 per cent 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 US$40-billion from the company’s market capitalization, with investors worrying about the effect of the report as it faces thousands of talc-related lawsuits.

The stock was the biggest drag on the broader Dow Jones Industrial Average and S&P 500 indexes and was among the most traded on U.S. exchanges. About 28 million shares exchanged hands by 18:30 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 e-mailed 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 1972-75 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 [US]$40 billion in lost market cap today,” JPMorgan 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 per cent of its revenue of US$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 e-mail 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 per cent at US$135.85, also pulling down the broader S&P 500 Health Care index.

https://www.theglobeandmail.com/bus...ares-tumble-on-report-company-knew-of-cancer/

It now makes sense why the US has produced so many weird super heroes. I believe most US people are also fire-proof.

No wonder their healthy life-span is declining.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Back
Top Bottom