Lots of talks doing the rounds on baby powder from Johnson & Johnson containing asbestos made significant buzz online. However, these rumors came out to a halt after extensive tests on the product. Fifteen new tests done on the same bottle of J&J baby powder, which was previously tested by the Food and Drug Administration in the USA, prove otherwise. In the recent reports, there was no asbestos in the baby powder. Along with this report, there are other reports, too, which confirm that there is no asbestos in the samples of baby powder from Johnson & Johnson. An additional 48 new laboratory tests done on samples of the baby powder earlier in the month also show satisfactory results. In the past 6-months, the stock lost almost 8% of its value. But recently again, the shares of the company rose 2.7% in after-hours trading.
Earlier this month, regulators had discovered trace amounts of asbestos in one bottle of baby powder purchased online. Soon after, leading stores, including Walmart, CVS, and Rite Aid, recalled 33,000 bottles and stopped sales of almost 22-ounce bottles of J&J baby powder. The company presently claims that there is no link between cancer and its product. Third-party laboratories were doing various tests and investigations which were carried out by the company. In one such laboratory, many samples of the powder tested positive for asbestos. But it was later discovered by J&J that the portable air conditioner in the lab room was contaminated with asbestos.
However, when the same sample was tested in other rooms, it showed no traces of asbestos. J&J confirmed that even after careful safeguarding, asbestos contamination could take place during sample storage, division, analysis, and preparation. These findings are a great response to the many lawsuits, which claim that the powder contains asbestos. The company has won many other court cases, which are alleging and charging damages and liability. J&J is also facing securities lawsuits leading to financial losses in billions for investors as the price of stocks of Johnson & Jonson dropped considerably over the past few months.