Johnson & Johnson Shares Rise
October 16 2019 - 11:11AM
Dow Jones News
By Patrick Thomas
Johnson & Johnson (JNJ) shares rose 2.2% Wednesday following
better-than-expected quarterly earnings earlier this week and after
The Wall Street Journal reported it was involved in discussions to
contribute additional money to a sweeping opioid crisis
settlement.
Three major drug distributors are in talks to pay $18 billion
over 18 years to settle litigation brought by state and local
governments blaming them for fueling the opioid crisis, the Journal
reported.
Shares of McKesson Corp. (MCK) rose 7.3%, AmerisourceBergen
(ABC) shares rose 6.3% and Cardinal Health Inc. (CAH) shares rose
about 5.5% Wednesday.
On Tuesday, J&J raised its financial forecast for the rest
of 2019, despite grappling with a heavy case load of litigation, as
it reported quarterly results that were above Wall Street
estimates, boosted by gains in its consumer and pharmaceuticals
divisions.
"JNJ will remain a relative safe haven in a volatile market as
investors and companies digest the potential impact from political
uncertainty both in the U.S. and abroad," analysts at SVB Leerink
said in a research note. "JNJ delivered a strong quarter with
continued growth momentum across all segments, and more
importantly, this momentum seems to be sustainable into 4Q19 and
2020."
Also on Tuesday, a Missouri state appeals court reversed a $110
million jury award in 2017 to a Virginia woman who claimed her use
of J&J's talcum powder caused ovarian cancer. The appeals court
cited lack of jurisdiction. Attorneys for the woman plan to appeal
the ruling.
Write to Patrick Thomas at patrick.thomas@wsj.com
(END) Dow Jones Newswires
October 16, 2019 10:56 ET (14:56 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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