Why J&J Suing Research A Turning Point For Drug Companies

The multi-billion lawsuit against Johnson & Johnson (JNJ) will cost billions of dollars in settlement. Finally, J&J is fighting back. It sued researchers who wrote the claim of talc power linked to cancer.

J&J is playing on its core strength of science and research. It is challenging the 2020 study that Theresa Emory, John Maddox, and Richard Kradin published in the American Journal of Industrial medicine published in 2020. In the article, it wrote that 75 individuals said that gained exposure to asbestos through J&J's cosmetic talc products.

J&J has a strong case. It merely needs to prove that those in the study had exposure to asbestos through other means. Researchers who ignored this evidence will lose their credibility. This bodes well for J&J.

This is a turning point for the firm. A legal win would strengthen the company's reputation as it exposes the fraud in the research report. Shareholders will need to wait for the outcome of the lawsuit.

JNJ stock is attractive for income investors. Selling accelerated in Q1, rebounded, and traded below $160 before the lawsuit. It has lower litigation costs ahead if it wins the case. Additionally, J&J has a strong pipeline that will enable it to move away from the Covid vaccine market.

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