Recently, the drug regulators in India have been collecting samples of baby powder to run some new tests. Johnson & Johnson has been accused of asbestos percentage in their baby powder. About two weeks ago, a report has spilled the information on the company. They were quite conscious of asbestos contamination in the baby powder that can cause cancer but they chose to hide it. This information has rather come out at a significant time. Several cases have been filed alleging the company in United States. The judgments of several such cases have been against the company asking them to pay million dollars fine to those who brought the case.
Navneet Marwah, the state drug controller in Himachal Pradesh in India has stated that there are no such reports against the company. However, since there are multiple perspectives, they will minutely investigate the matter.
Johnson & Johnson have rejected to these allegations. According to them, their talcum powder has been tested by leading laboratories around the world and has been marked safe. Besides, till date there has been no report by anyone accusing talc to contain cancer causing elements or diseases related to asbestos. Further, the company stated that their processed talc or samples from cosmetic talc mines have always been tested by regulators. There was never a sign of asbestos contamination in any of them. In fact in 2016, similar charges were filed against them. Regulators in India had tested the samples and they were absolutely safe for use.
The stock has been affected a lot in US, declining by nearly 10%. In India, the company suffered dismissal for selling imperfect hip implants. The company was asked to pay compensation by Central Expert Committee. However, the company has challenged the decision of the government by taking the case to Delhi High Court.