An investing blog on CNBC.com warns potential investors about health care giant Johnson & Johnson.
The stock is already up more than 22 percent on the year, the blog entry says, and trading at a price/earnings ratio more than twice that of rival Abbott Laboratories. But the entry points out that investors are worried about the company’s prospects for organic growth, especially in light of its reputation still being in “recovery” after some bad public relations related to product recalls.
In addition, the company has faced some recent high-profile legal problems connected with its medical devices.
A jury awarded $11.1 million to a woman injured by a vaginal mesh implant that Johnson & Johnson’s Ethicon division manufactured. That case represented the first of more than 11,000 lawsuits to go to trial regarding the mesh implants, which are used to treat pelvic organ prolapse and urinary incontinence. Patients have complained of health problems that include infection, organ perforation and chronic pain.
In a separate case, another jury awarded $8.3 million to a man injured by an all-metal ASR hip implant, which Johnson & Johnson’s DePuy Orthopaedics subsidiary manufactured.
That device is a “metal-on-metal” hip implant, featuring both a ball and socket coated in a combination of cobalt and chromium. A number of studies show nearly half of the metal-on-metal implants break down and need replacement within six years, in addition to their tendency to shed toxic metal debris in patients’ bodies.
The company’s pharmaceutical business has been doing well, the blog says, its medical devices business “continues to be a major source of investor angst.”
You should consult with a doctor if you have any ongoing symptoms or health concerns from a Johnson & Johnson product. If you have significant injuries, you should also consult with a DePuy hip or transvaginal mesh lawyer to discuss your legal rights.
See the blog entry here:
https://www.cnbc.com/id/100695651
