Despite Allegations Linking Johnson & Johnson Powder to Cancer, its Revenue Increased in 2022

In early April 2023, approximately 60,000 plaintiffs filed lawsuits against Johnson & Johnson (J&J)'s subsidiary, LTL Management. The American pharmaceutical company is facing mass litigation because its baby powder product is alleged to contain asbestos, a cancer-causing chemical.

According to a Reuters investigative report titled "Johnson & Johnson knew for decades that asbestos lurked in its Baby Powder" (2018), various scientific studies since the 1970s have indicated the presence of asbestos in J&J's baby powder.

However, J&J denies these allegations and claims its product is safe. "The company remains confident that these claims (that J&J's powder contains asbestos) are false and lack scientific basis," J&J management stated in a press release on Tuesday, March 4, 2023.

Despite the denial, J&J announced it would cease production and sales of its baby powder in 2023.

LTL Management, the J&J subsidiary named in the lawsuits, is now filing for bankruptcy in a US court to resolve the baby powder cases.

They also stated they will pay compensation to all plaintiffs to efficiently resolve the case. The total compensation amounts to USD 8.9 billion (approximately Rp 133 trillion) and will be paid in installments over 25 years.

"As acknowledged by the court, resolving this case through the litigation system would take decades and impose significant costs on LTL and the system," J&J management stated (March 4, 2023).

"This is not an admission of guilt nor an indication that the company is changing its stance that its baby powder is safe. J&J and its affiliates are not filing for bankruptcy and will continue business as usual," they added.

Despite these issues, in 2022 J&J achieved revenue of USD 94.94 billion (approximately Rp 1,424 trillion), a 1.3% increase year-on-year (YoY) and the highest in the last five years.

J&J's 2022 revenue came from pharmaceutical and prescription drug sales (USD 52.6 billion), medical devices and technology (USD 27.4 billion), and consumer beauty, baby care, and healthcare products (USD 15 billion).

This achievement also made J&J the world's fourth-largest pharmaceutical company in 2022, behind CVS Health, Walgreens Boots Alliance, and Pfizer.