J&J Settles Ahead Of Multi-District Opioid Trial, Stock Up
Zacks Investment Research | Oct 02, 2019 11:16PM ET
Shares of Johnson & Johnson (NYSE:JNJ) gained 1.6% after it announced a settlement agreement with Cuyahoga and Summit counties related to the multidistrict opioid litigation (“MDL”) in the U.S. District Court for the Northern District of Ohio.
Shares of J&J have increased 2.3% this year so far against the Mallinckrodt plc (NYSE:MNK) have also settled with Cuyahoga and Summit counties to avoid the MDL.
Purdue Pharma, the maker of opioid analgesic, OxyContin, is planning to file for bankruptcy, which may include a settlement of $10-$12 billion to resolve all pending claims against its opioid-based drugs. Several other companies like Mylan (NASDAQ:MYL) and Teva, also indicted in several opioid lawsuits, have not announced any settlement deals yet and are set to face the MDL. Some of the companies may also follow the steps of Purdue Pharma and may file for bankruptcy to limit their liabilities.
Amid the uncertainty related to opioid litigation, J&J continues to progress well with its pipeline candidates and developing new drugs which in turn are driving the company’s topline. J&J filed a supplemental new drug application (sNDA) to the FDA for its antidepressant, Spravato (esketamine) nasal spray. The sNDA is seeking approval for label expansion of the drug as a treatment for adult patients with major depressive disorder who have active suicidal ideation with intent.
The sNDA was filed based on data from two phase III studies, ASPIRE I & II, which demonstrated that addition of Spravato to standard of care achieved remission in nearly 50% of patients following a treatment for 25 days.
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