ZTS - How Will Johnson & Johnson's Opioid Case Ruling Impact Big Pharma Stocks?
August 26 might be the single worst day in 2019 for the pharmaceutical industry. An Oklahoma judge found industry giant Johnson & Johnson (NYSE: JNJ) guilty of deceptively marketing its opioid drugs as being non-addictive despite requests from the U.S. Food and Drug Administration to stop. Currently, there are 2,000 more opioid-related lawsuits pending across the country against the company, led both by private parties as well as government officials. While the issue has been gaining ground since the early 2000s, this verdict is expected to be a hallmark case for other drugmakers concerned that further legal actions could be marshaled against them in the near future.
The question pharmaceutical investors need to ask themselves is how big of a deal is this verdict, and which stocks are safe from the potential legal fallout which could ensue in the months and years to come?
Image Source: Getty Images