J&J sets aside $4 billion for proposed opioid settlement

Published 8:34 am Friday, October 25, 2019

Johnson & Johnson says it has set aside $4 billion for its share of a proposed multistate agreement to settle opioid litigation, a step that forced it to slash its recently reported financial results.

In a Securities and Exchange Commission filing Wednesday, J&J said the charge cuts third-quarter net income from $4.8 billion to $1.8 billion, or from $1.81 to 66 cents per share. Its net income for 2019’s first nine months shrank from $14.2 billion to $11.1 billion, or from $5.28 to $4.13 per share.

The $4 billion would go toward a $48 billion deal, combining cash and addiction treatment drugs, proposed Friday by several state attorneys general to settle all opioid litigation against J&J, drugmaker Teva and three drug wholesalers.

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The deal faces considerable opposition and may fall through.