Johnson & Johnson (JNJ) stock is up 1.16% on Thursday and 0.65% in the trailing five days. The company, founded in 1886, suffered a landmark ruling in late August linked to the company’s talc baby powder. A California judge ordered the company to pay 63-year-old Eva Echeverria $417 million because of ovarian cancer, which she attributes to her use of the company’s Baby Powder.
The settlement did little to impact the company’s stock in late August, with Johnson & Johnson vowing to appeal the settlement.
The company is facing hundreds of similar cases that could result in tens of billions of dollars in settlements. Johnson & Johnson investors remain confident that the enterprise can continue to be profitable despite record settlements.
“The personal/bodily injury practice area covers any situation where a person suffers bodily injury or death as a result of another person or corporation’s negligence,” states PM Lawyers.
Johnson & Johnson’s stock benefitted from the expansion of the company’s oral pulmonary arterial hypertension medicine (PAH). The FDA approved the label expansion for the company’s Tracleer medicine to be used for pediatric patients.
The expansion allows for a 32mg tablet to be prescribed to patients as young as three years of age that suffer from PAG. The FDA expects the usage of Tracleer will allow the patients to improve their exercise ability.
The company’s Q2 2017 earnings report showed major developments at the company with the acquisition of two main companies: Actelion and Sentio. The two companies were acquired in June 2017.
Tracleer was added to the company’s portfolio through the acquisition of Actelion, a Swiss company. Johnson & Johnson has also added Opsumit and Uptravi to their product portfolio as part of the acquisition.
Label expansion of Tracleer is expected to help the company boost sales of the drug. The drug has been under increased pressure as competition increases.
Johnson & Johnson also received FDA approval for several products, including Tremfya, Hemostat, Darzalex and Sterrad Velocity Biological Indicator System. The company also presented new data for their COMPASS phase III study, which evaluates Xarelto, a treatment for peripheral artery disease and coronary artery disease.
Sirukumab, a treatment that was presented to the Arthritis Advisory Committee, was not recommended for rheumatoid arthritis. The announcement had little impact on the company’s stock.
Johnson & Johnson’s stock is outpacing the industry this year, with the company’s stock rising 13.4% compared to the industry’s gain of 11.8%.