Board of Directors of Johnson & Johnson (NYSE:JNJ), has authorized the repurchase of up to $5 billion of the company’s common stock. A stock buyback happens when a firm uses its accrued capital to buy back its own shares from the market that show positive indication in stock market. Johnson & Johnson surged 2.06% with around 9.55 million shares changed hands in last session, higher from an-average trading volume of 6.82 million shares. On Thursday (15-Sep-22), shares persist to upward movement in pre trading session to $194.93.
The Chief Executive Officer, Joaquin Duato stated that Johnson & Johnson’s (JNJ) tenacity has been exhibited in recent years. The Board of Directors and management team think that Company shares are an appealing investment opportunity due to their sustained confidence in their company and pipeline. With excellent cash flow and the lowest amount of net debt in five years, they can invest in innovation, raise their dividend, and make smart acquisitions, all while delivering shareholder returns and driving long-term growth.
Repurchases may be undertaken on the open market or through privately negotiated agreements at the discretion of management. The buyback program has no time restriction and can be terminated or cancelled at any moment. Any shares purchased will be used for general company purposes. As of July 22, 2022, the business has about 2,629.2 million shares of common stock outstanding. The corporation does not anticipate incurring debt in order to fund the share repurchase program.
Johnson & Johnson reiterates its full-year 2022 adjusted operating sales growth and earnings per share forecast of 6.5% – 7.5% and $10.65 to $10.75, respectively.
Johnson & Johnson Settles Australian Pelvic Mesh Lawsuit for $300 Million
Johnson & Johnson (NYSE: JNJ) has agreed to pay A$300 million to resolve two Australian class action lawsuits brought by Shine Lawyers for marketing faulty pelvic mesh implants to Australian women. The payment, achieved on September 9, is the biggest in an Australian product liability class action.
It comes after a series of legal actions involving over 11,000 plaintiffs, JNJ, and its subsidiary Ethico. Shine Lawyers spearheaded the Australian class actions, alleging that Johnson & Johnson failed to adequately evaluate the devices and downplayed the danger to surgeons and patients.
According to Reuters, the total settlements for J&J and other pelvic mesh makers have exceeded $8 billion.