Johnson & Johnson Shares Rise

By Patrick Thomas

Johnson & Johnson (JNJ) shares rose 2.2% Wednesday following better-than-expected quarterly earnings earlier this week and after The Wall Street Journal reported it was involved in discussions to contribute additional money to a sweeping opioid crisis settlement.

Three major drug distributors are in talks to pay $18 billion over 18 years to settle litigation brought by state and local governments blaming them for fueling the opioid crisis, the Journal reported.

Shares of McKesson Corp. (MCK) rose 7.3%, AmerisourceBergen (ABC) shares rose 6.3% and Cardinal Health Inc. (CAH) shares rose about 5.5% Wednesday.

On Tuesday, J&J raised its financial forecast for the rest of 2019, despite grappling with a heavy case load of litigation, as it reported quarterly results that were above Wall Street estimates, boosted by gains in its consumer and pharmaceuticals divisions.

"JNJ will remain a relative safe haven in a volatile market as investors and companies digest the potential impact from political uncertainty both in the U.S. and abroad," analysts at SVB Leerink said in a research note. "JNJ delivered a strong quarter with continued growth momentum across all segments, and more importantly, this momentum seems to be sustainable into 4Q19 and 2020."

Also on Tuesday, a Missouri state appeals court reversed a $110 million jury award in 2017 to a Virginia woman who claimed her use of J&J's talcum powder caused ovarian cancer. The appeals court cited lack of jurisdiction. Attorneys for the woman plan to appeal the ruling.

Write to Patrick Thomas at [e-mail]

(END) Dow Jones Newswires

October 16, 2019 10:56 ET (14:56 GMT)

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