Johnson & Johnson higher following Oklahoma court ruling on opioid case - InvestingChannel

Johnson & Johnson higher following Oklahoma court ruling on opioid case

Johnson & Johnson (JNJ) shares are higher in after-hours trading on Monday following the ruling on a much-watched trial in which J&J was accused of fueling the opioid crisis in the state of Oklahoma by oversupplying painkillers through deceptive marketing and downplaying the risks of addiction. COURT VERDICT: Oklahoma District Judge Thad Balkman ruled against Johnson & Johnson and its Janssen Pharmaceutical Companies unit in the opioid-focused trial, forcing the company to pay $572M to the state of Oklahoma, in the first trial in the U.S. aimed at holding a drugmaker liable for its role in the opioid crisis, which the judge called an “imminent danger and menace.” The judge added, “The state meant its burden that the defendants Janssen and Johnson & Johnson’s misleading marketing and promotion of opioids created a nuisance as defined by (the law), including a finding that those actions compromised the health and safety of thousands of Oklahomans.” J&J TO APPEAL: Johnson & Johnson announced it would appeal the $572M civil judgment, saying it is “confident it has strong grounds to appeal this decision.” J&J added that “the judgment disregards the company’s compliance with federal and state laws, the unique role its medicines play in the lives of the people who need them, its responsible marketing practices and that since launch, Duragesic, Nucynta and Nucynta ER have accounted for less than one percent of total opioid prescriptions in Oklahoma as well as the United States.” Michael Ullmann, executive VP, General Counsel, Johnson & Johnson, said, “Janssen did not cause the opioid crisis in Oklahoma, and neither the facts nor the law support this outcome. We recognize the opioid crisis is a tremendously complex public health issue and we have deep sympathy for everyone affected. We are working with partners to find ways to help those in need.” PRICE ACTION: Despite the $572M payment, shares of Johnson & Johnson rose by 2% in the after-hours, as the fine was smaller than expected. Other major drugmakers, including Endo (ENDP), Mallinckrodt (MNK), and Teva (TEVA), were also trading higher after-hours. Additionally, drug wholesaler AmerisourceBergen (ABC) and health care services company Cardinal Health (CAH) were higher.

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