J&J analyst day tries to focus on drug business with talc baby powder under fire

Johnson & Johnson’s pharmaceutical business will take the spotlight Wednesday at its annual meeting with analysts as the company tries to allay patrons’ points over its talc-based baby powder.

The New Brunswick, New Jersey, based health-care conglomerate makes a wide range of merchandise, collectively with on a daily foundation household merchandise like Tylenol, Neutrogena face wash and Acuvue contacts as well as to prescribed drugs Xarelto and Invokana. Prescription medication are crucial revenue driver for J&J, accounting for half of its $81.58 billion in 2018 product sales. But its consumer merchandise division has come under stress amid 1000’s of lawsuits that accuse its namesake talc baby powder of inflicting most cancers.

J&J plans to launch 10 new medication by 2023, the company launched Wednesday. CEO Alex Gorsky acknowledged the company needs to preserve centered whatever the litigation.

“It starts with our 100-plus-year performance of doing things in an appropriate and responsible way, and that’s certainly what we think we’ve done here, and we have a very litigious industry,” he in an interview Wednesdsay with CNBC’s Meg Tirrell. “But what’s most important is that we stay focused on serving customers, that we stay focused on innovation and really bringing these new products to market.”

The agency faces 1000’s of lawsuits alleging its talc baby powder merchandise embody asbestos and triggered ovarian most cancers and mesothelioma. A Reuters report in December acknowledged J&J knew for a few years that its baby powder contained asbestos, a story the company referred to as “an absurd conspiracy theory.”

“Of course we’re spending time educating our consumers about the issues that you raised, but here today again we’re going to be talking about these next several generations of products, and I think that’s where most patients and most consumers really want us to stay focused so that ultimately look we can cure HIV, we can find a cure for Alzheimer’s and some of these other conditions we continue to work on,” Gorsky acknowledged.

While J&J’s pharma business retains rising thanks to medication like Stelara and Remicade, its completely different two objects, consumer and medical items, have lagged. Still, Gorsky says the three firms are larger collectively.

“We think so because it gives us an opportunity to find new health-care solutions wherever these opportunities may occur,” Gorsky acknowledged.

The agency’s shares have been little modified in premarket shopping for and promoting Wednesday.

For additional on investing in health-care innovation, click on on proper right here to be part of CNBC at our Healthy Returns Summit in New York City on May 21.

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