The shares of top pharmaceutical companies increased during after-hours trading following a smaller-than-anticipated penalty for Johnson & Johnson. An Oklahoma judge ordered the pharma giant to reimburse the state $572 Million, which is significantly less than the $17 Billion in fine sought in the trial. Apparently, this was the first U.S. case trying to hold a drug-manufacturer responsible for fueling the opioid epidemic. The shares of Johnson & Johnson rallied over 5% after the news, resulting in a $13.5 Billion market capitalization gain after hours. Drug manufacturer Teva Pharmaceutical surged by 5%, whereas Endo International climbed 3% following the news. Initially, Mallinckrodt jumped by 7% but soon gave back the earnings.
Purdue Pharma—the privately-held manufacturer of OxyContin that taken the impact of the public’s accusation for the drug crisis—and Teva Pharmaceutical settled with the state prior to the trial began. Neither firm admitted of any wrongdoing. Johnson & Johnson was the only defendant in the 7-Week trial. In the milestone ruling judge, Thad Balkman stated the drug calamity an “imminent hazard and menace” and asserted that Johnson & Johnson along with its pharmaceutical subsidiary Janssen has “caused an opioid crisis that is verified by surged rates of overdose, addiction deaths, and neonatal abstinence syndrome.”
On a similar note, Johnson & Johnson is planning to appeal for flawed opioid judgment in Oklahoma. In the recent time, Johnson & Johnson and Janssen Pharmaceutical announced that they will appeal for the $572 Million judgment given in the State of Oklahoma’s court case against opioid makers. The company is positive it has powerful reasons for appealing to this decision. The judgment ignores the company’s conformity with federal and state laws, the exceptional role its medicines have in the lives of the people who require them, its accountable marketing practices and that since launch has summed up for less than 1% of total opioid prescriptions in Oklahoma.