The US FDA has found a type of asbestos called chrysotile fibers in a batch of Johnson & Johnson (NYSE:JNJ) ‘s Baby Powder. It has instructed the public not to use the baby powder from that batch. However, it not provided details of any side effects of the use of baby powder from that batch. The agency stands by its test results of the baby powder from that batch. FDA conducted tests on samples of baby powder purchased online.
Johnson & Johnson recalls a single batch
On findings of the traces of asbestos in its baby powder by FDA, Johnson & Johnson will recall the single batch #22318RB (33,000 bottles) of baby powder produced and shipped in the US in the year 2018. It has communicated to the people to discontinue the use of baby powder bearing the batch #22318RB. The shares of Johnson & Johnson have declined by 6.22% to $127.7 on October 18, 2019.
Johnson & Johnson works with FDA
Johnson & Johnson said it is working with US FDA to investigate the cause and verify the tested sample integrity. It will verify the test result’s validity. The company may take 30 days or more to complete the investigation.
According to a communiqué from Johnson & Johnson, the presence of asbestos trace is not over 0.00002% in the tested sample. The company said it is too early to conclude to find whether the false-positive result is obtained from a sealed bottle or prepared in the controlled environment. It could not confirm whether the tested sample is genuine or fake.
Johnson & Johnson is already amid several lawsuits filed against its products containing talc. A lot of research has been done over the past several years, and its talc products are safe to use and do not cause cancer.
Even after settling several lawsuits in the past, Johnson & Johnson is still left with 15,500 lawsuits. According to inputs from Bloomberg, Johnson & Johnson might need to pay $10 billion for lawsuits related to baby powder. The baby powder accounts for a small percentage of the yearly revenues.