J&J announces $5 billion share buyback after shares extend losses
(Reuters) - Johnson & Johnson announced a stock repurchase of up to $5 billion on Monday, following Friday's Reuters report that the healthcare conglomerate knew for decades that its Baby Powder contained cancer-causing asbestos, which wiped off about $40 billion from the company's market capitalisation. Shares of the company closed down 3 percent on Monday, extending a 10 percent fall on Friday after the report was published.
(Reuters) - Johnson & Johnson
Shares of the company closed down 3 percent on Monday, extending a 10 percent fall on Friday after the report was published.
They were up about 1 percent in aftermarket trading following the announcement of the buyback. The repurchase plan has no time limit and may be suspended for periods or discontinued at any time, the company said in a statement.
Johnson & Johnson knew about the presence of small amounts of asbestos in its products as early as 1971, a Reuters examination of company memos, internal reports and other confidential documents showed.
In response to the report, the company said on Friday "any suggestion that Johnson & Johnson knew or hid information about the safety of talc is false."
On Monday, J&J took out a full-page ad in the New York Times titled "Science. Not Sensationalism," saying it has scientific evidence its talc is safe and beneficial to use. "If we had any reasons to believe our talc was unsafe, it would be off our shelves," the ad said.
J&J Chief Executive Alex Gorsky, in his first public statement since the Reuters story was published, is scheduled to appear on CNBC at 6 p.m. EST (2300 GMT) on Monday.
While J&J has dominated the talc powder market for more than 100 years, the products contributed less than 0.5 percent of J&J's $76.5 billion revenue last year.
J&J shares were trading at $130.30 after closing at $129.14 on Monday.
(Reporting by Ankur Banerjee and Aakash Jagadeesh Babu in Bengaluru; editing by Nick Zieminski and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
UNITED NATIONS (Reuters) - Mexico, India, Ireland and Norway were elected to the United Nations Security Council on Wednesday, but the 193 U.N. member states must return on Thursday to continue voting to fill one more vacant seat after there was no clear winner. Canada lost out to Ireland and Norway in a hotly contested election that included Ireland enlisting the help of U2 singer Bono and taking U.N.
GENEVA/LONDON (Reuters) - The World Health Organization said on Wednesday that testing of the malaria drug hydroxychloroquine in its large multi-country trial of treatments for COVID-19 patients had been halted after results from other trials showed no benefit. "The hydroxychloroquine arm of the SOLIDARITY trial has been stopped," WHO expert Ana Maria Henao-Restrepo told a news briefing. (Reporting by Mike Shields, Emma Farge and Kate Kelland, editing by Peter Graff and Kevin Liffey)
By Rich McKay and Nathan Layne (Reuters) - A Georgia county prosecutor on Wednesday announced that a fired Atlanta police officer has been charged with felony murder in the shooting death of Rayshard Brooks in the parking lot of a fast-food restaurant last week. The death of the 27-year-old Brooks - another in a long line of African-Americans killed by police - further heightened racial concerns in the United States at a time of national soul-searching over racism and police brutality. Garrett Rolfe, the white officer who shot Brooks on June 12 and was fired the next day after surveillance video showed his actions, faces 11 charges including felony murder and assault with a deadly weapon, Fulton County District Attorney Paul Howard told a news conference in Atlanta