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Baby care major Johnson & Johnson (J&J) was ordered by a US jury on Monday to pay $55 million (Rs 363 crore) to a woman who said that using the company's talcum powder for feminine hygiene caused her to develop ovarian cancer.
While J&J plans to appeal against the verdict, which is the second straight trial loss for it in three months, there are India implications for the company, according to experts tracking the company.
Read more from our special coverage on "JOHNSON & JOHNSON"
- Johnson & Johnson ordered to pay $55 million in talc-powder trial
- Regulators to inspect J&Js factory
- Maharashtra FDA sends Johnson & Johnson baby powder for lab tests
- Big verdict doesnt assure more wins for plaintiffs in talc-cancer cases
- Johnson & Johnson asked to pay $72 million in damages for cancer-causing talcum powder
J&J is the leader in the baby care products market in India. A report by Research & Markets, a global market insights agency, pegs the size of the baby care market in India at $14 billion (Rs 92,400 crore), which is slated to touch $30 billion (Rs 1.98 lakh crore) by 2019. This includes everything from diapers to talcs, creams, lotions and soaps.
While J&J's presence is limited to baby skin care products in India, it has in recent years attempted to transition to a larger baby care platform in the country in keeping with its 2022 growth strategy, which targets all-round development of the child, as opposed to healthy and glowing skin alone.
"A product that is perceived as being cancer-causing will certainly raise alarm bells in the minds of its consumers everywhere. J&J products are used by middle and upper middle class households in India, and most of them will come across this lawsuit in the US since it has been widely published. They are bound to be cautious," says Bejon Misra, a consumer affairs expert and founder of Consumer Online Foundation.
In response to a mail, a J&J spokesperson said, "The jury's decision goes against 30 years of studies by medical experts around the world that continue to support the safety of cosmetic talc. Johnson & Johnson has always taken questions about the safety of its products extremely seriously. Multiple scientific and regulatory reviews have determined that the talc is safe for use in cosmetic products and the labeling on Johnson's Baby Powder is appropriate. We will appeal the recent verdict and continue to defend the safety of Johnson's Baby Powder."
The last time J&J had suffered a trial loss, in February 2016, it was asked to pay $72 million (or Rs 475 crore) to a family of a US woman who died of cancer. Indian regulators had subsequently conducted an investigation of J&J's factory in Mulund in the city's northeast.
The investigation came after samples of Johnson's baby powder were picked up for testing by the Food and Drug Administration (FDA) in Maharashtra. This was done to weed out chances of contamination in the wake of the US verdict, FDA officials had told Business Standard.
A HISTORY OF PENALTIES
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2016
J&J faces two trial losses after it was established that the users suffered from cancer (one died) after using its talcum powder for many years. Penalty amount $72 million and $55 million, respectively
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2013
Fined $2.2 billion for criminal and civil liabilities for paying kickbacks to doctors and over-marketing anti-psychotic drugs
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2012
Recalled 2,000 tubes of Aveeno Baby Calming Comfort lotion because of excessive levels of bacteria in samples
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2011
Recalled 57,000 bottles of epilepsy drug Topamax over foul smell Five lots of insulin pump cartridges recalled because of possible contamination
