On Tuesday, Johnson & Johnson declared that 15 new tests had done from the same bottle of Johnson’s baby powder, which was previously tested by Food & drug administration, and no asbestos found in the powder. Moreover, 48 additional laboratory tests of the sample from Johnson’s baby powder previously recalled also confirmed that the product does not contain asbestos. This update has risen the share of Johnson & Johnson by 2.7 percent in one-hour trading. During the last six months, the company stock has lost more than 8 percent of its value. Last month, Johnson & Johnson called 33,000 bottles unit of Johnson’s baby powder after the regulation found a trace amount of asbestos in a bottle purchased online. Furthermore, it also promoted Walmart, CVS, and Rite Aid retailers to holt sale of 22 000 johnson’s baby powder and other johnson’s baby products.
Two third-party laboratories conducted these tests as a part of Johnson & Johnson’s internal ongoing testing and investigation. The company hired laboratories to test the recall products. One lab changed its protocol by testing it in an auxiliary room, where the test resulted positive for asbestos. However, the company alleged that a portable air conditioner, the lab was contaminated with asbestos, which caused a positive result. Besides, the sample tested in the standard room did not test positive for asbestos.
The company states, even the best safeguard followed, the asbestos infection may be introduced during sample division, preparation, or storage. Last year, the jury awarded $ 4.7 billion in a total loss to all 22 women and their relatives after they appealed asbestos in their powder contributed to their ovarian cancer. The company is appealing the judgment and has won several court cases alleging damages and liabilities. The company is also facing securities lawsuits appealing it failed to reveal the suspected asbestos contamination in Johnson’s baby powder, primary to billions in financial losses for investors from the drop in stock price.