GWPH - What the Johnson & Johnson Opioid Ruling Means for the Cannabis Industry
In late August, Johnson & Johnson (NYSE: JNJ) was hit with a hefty $572 million fine for its role in the opioid crisis in Oklahoma, which was still not as bad as it could have been. In what could prove to be a monumental case in the U.S., it could just be the beginning of a much larger fallout. As many as 130 people die daily as a result of overdosing on opioids.
Johnson & Johnson and other pharmaceuticals have reason to be worried, as Oklahoma's opioid problem is not nearly as severe as it is in other states. According to 2017 data from the Centers for Disease Control and Prevention, the state had a death rate relating to drug overdoses of 20.1 per 100,000 people, with 775 total deaths occurring that year. In contrast, West Virginia had the highest rate of death at 57.8 per 100,000 people while Pennsylvania, Florida, and Ohio each had more than 5,000 people lose their lives as a result of overdosing. While the fine in Oklahoma may not be that big of a burden for Johnson & Johnson, the amount could be a drop in the bucket compared to what a potential payout may be in other states should they be successful in pursuing similar types of litigation. The company said it plans to appeal the ruling.
The importance of the issue is evident from a cost standpoint, especially if the ruling against Johnson & Johnson holds up. Companies are likely to start taking opioids more seriously and look into alternative treatment options. One industry where healthcare companies may start to focus on is cannabis. Colorado, New York, and Illinois already allow doctors to recommend cannabis in place of opioids.