Report Johnson & Johnson knew for decades of asbestos in baby powder wipes $47 billion off market cap | WHAT REALLY HAPPENED


Report Johnson & Johnson knew for decades of asbestos in baby powder wipes $47 billion off market cap

Shares of Johnson & Johnson tumbled 12 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$47 billion from the company’s market capitalization with investors worrying about the fallout of the report as it faces thousands of talc-related lawsuits.

“It is not surprising that an article from Reuters outlining years of potential knowledge regarding the perils of talc should agitate investors,” BMO Capital Markets analyst Joanne Wuensch said.

“This is not a simple matter, as there are more than 10,000 pending cases.”

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