Johnson & Johnson (JNJ) shares fell 1% on Thursday after the company reported a 3% sales dip in India in the year ending March 2018. According to a regulatory filing with the Corporate Affairs Ministry of India, total sales fell to Rs 58.28 billion ($829 million) during this period, primarily hurt by weakness in the medical devices segment.
Revenue from the medical devices segment fell 7% in 2018 after the Asian country imposed strict measures to cap the pricing of medical devices. Meanwhile, sales at the consumer segment, which is quite popular in India, fell marginally to Rs 3,092 crore, driven by the negative publicity surrounding its baby talc products.
Reuters had recently reported that the New Brunswick, New Jersey-based company knew about the presence of carcinogenic components in its talc products as early as 1971. The report had sent the US pharma giant’s shares plunging.
It may be noted that Johnson & Johnson’s consumer segment accounts for a lion’s share of the baby products market in India.
JNJ stock has declined 9% in the past year.
Meanwhile, the filings show that after-tax gains improved 18% to $98 million during fiscal 2018 in India, including gains from forex transactions.
In 2019, the pharma giant awaits trial in over 11,700 claims. Johnson’s continue to strongly defend its talc-based products against the verdicts it has lost, but it faces an uphill task of restoring brand loyalty. Johnson’s has about $16 billion of funds allocated for any possible payouts.
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