Johnson & Johnson shares rise after company proposes baby powder cancer settlement

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Johnson & Johnson shares rise after company proposes baby powder cancer settlement
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Wall Street analysts were encouraged by J&J's proposal to pay $8.9 billion to settle claims that its baby powder and other talc products caused cancer.

paying $8.9 billion to settle thousands of claims that its baby powder and other talc products caused cancer.

The pharmaceutical giant also said its subsidiary LTL Management refiled for Chapter 11 bankruptcy protection after its first attempt faced legal challenges. The subsidiary is shouldering tens of thousands of talc lawsuits in a bid to reduce J&J's losses from litigation and settlement. On Wall Street, some analysts were also encouraged by J&J's move despite uncertainty around the final outcome of the proposal.

The proposed $8.9 billion settlement is also in-line with JPMorgan's $8 billion to $10 billion estimate, Schott noted.

 

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