J&J Shares Plummeted With Report of Asbestos in Baby Powder
Dow 30 component Johnson & Johnson (JNJ) is a worldwide healthcare focused company that embraces research and science so that it can provide customers with innovative ideas, products, and services.
Johnson & Johnson saw its shares drop 10 percent on Friday, the most they’ve dropped in the last 16 years. The major drop comes as a result of the report stating asbestos, a cancer-causing carcinogen, has been in its Baby Powder for decades.
The sharp fall in shares has taken away nearly $40 billion from Johnson & Johnson’s market capitalization and is leaving the company’s investors worried.
Johnson & Johnson was found to have been aware of the small amounts of the carcinogen in its products since 1971. The report, which was released by Reuters, showed that not only did the company know about the traces of asbestos, but it has paid for studies on its Baby Powder and hired a ghostwriter to redraft the article that was presented the findings in a journal.
The company has claimed that its Baby Powder is asbestos-free and that it will continue to defend the safety of the products.
J&J is currently facing thousands of talc-related lawsuits.