Market Overview

Johnson & Johnson Analyst: 3 Takeaways On Opioid Litigation

Share:
Johnson & Johnson Analyst: 3 Takeaways On Opioid Litigation

With Johnson & Johnson (NYSE: JNJ) facing off against the state of Oklahoma this week over its potential responsibility for the opioid crisis in that state, BMO Capital Markets issued a report Thursday on the company's thinking as it heads to court.

The Analyst

Joanne Wuensch maintained an Outperform rating on Johnson & Johnson with a $157 price target.

The Thesis

An Oklahoma case allges that Johnson & Johnson it has some responsibility for the opioid epidemic, Wuensch said in a Thursday note. (See her track record here.) 

After a $270-million settlement by Purdue in March and an $85-million settlement  by Teva Pharmaceutical Industries Ltd (NYSE: TEVA) in May, J&J is the remaining defendant in the case, relative to the sales of its Duragesic transdermal patch and the drug Nucynta.

The analyst highlighted the following takeaways following a conversation with the company regarding the litigation:

  • J&J feels strongly that its products were specifically designed to limit abuse.
  • Since the case is heard by a judge and not a jury, a hearing could take two to four weeks, with completion in two months.
  • Litigation is a common occurrence in the health care sector that takes significant time to resolve, and often headlines are worse than reality.

J&J is now part of federal multidistrict litigation that bundles opioid cases for over 20 companies that's set to begin in late October, Wuensch said. 

The Price Action

Johnson & Johnson shares were trading higher by 0.72 percent at $132.30.  

Related Links:

Johnson & Johnson Analysts Laud Accelerating Pharma Business

Analysts View Johnson & Johnson's Organic Growth Guidance As Conservative

Photo by Dustin Blitchok. 

Latest Ratings for JNJ

DateFirmActionFromTo
Jul 2019MaintainsOutperform
Jul 2019Initiates Coverage OnOutperform
May 2019MaintainsOutperform

View More Analyst Ratings for JNJ
View the Latest Analyst Ratings

Posted-In: Analyst Color News Health Care Price Target Reiteration Legal Analyst Ratings General Best of Benzinga

 

Related Articles (TEVA + JNJ)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SKXMaintains44.0
HYMaintains66.0
MSFTMaintains160.0
SKXUpgrades
WLTWMaintains208.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

What To Look For In A Travel Rewards Credit Card

A Look At Benzinga Pro's Most-Searched Tickers For May 30, 2019