Johnson & Johnson CEO Alex Gorksy is defending the consumer products giant against allegations the company was aware that its baby powders, at times, tested positive for asbestos, a carcinogen, according to a Reuters report.
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On Monday, the company released a national ad campaign featuring Gorksy, reiterating to the public that its baby powders are completely safe.
Gorsky is doing everything it can to reassure both customers—and investors—after its shares extended declines on Monday after plummeting 10 percent on Friday—losing nearly $40 billion in value.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 129.14 | -3.86 | -2.90% |
In fact, he cites tens of thousands of studies that have proven talc does not cause cancer or asbestos-related disease. Gorsky also referenced that the U.S. Food and Drug Administration, (FDA) and other global regulators, have continually proven the product to be asbestos-free. Despite the appeal, however, shares remain under pressure for the New Brunswick, New Jersey-based pharmaceutical giant.
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Additionally, J&J noted it has won several recent court cases alleging liability and damages for its baby powders. It is also appealing judgments, including the $4.6 billion awarded to 22 women in July who claimed its powder caused their ovarian cancer.
Still, Reuters reported on Friday that J&J knew about the presence of cancer-causing asbestos in its iconic baby powder and alleged that it hid it from the FDA on at least three tests by three different labs from 1972 to 1975.
J&J immediately released a statement following the article, saying it was “one-sided, false and inflammatory.”
“Simply put, the Reuters story is an absurd conspiracy theory, in that it apparently has spanned over 40 years, orchestrated among generations of global regulators, the world’s foremost scientists and universities, leading independent labs, and J&J employees themselves,” the company said in a statement. It said that J&J’s baby power is “safe and asbestos free”, citing the studies of “more than 100,000 men and women”, which they said shows talc does not cause “cancer or asbestos-related disease.”
