Johnson & Johnson faces significant risks from ongoing talc-related litigation, with substantial accrued liabilities and potential for further increases. Opioid litigation, though partially resolved, still involves ongoing cases and potential future costs. Product liability claims, patent challenges, and competitive pressures from generics and biosimilars pose risks to revenue and market share. Economic downturns, inflation, currency fluctuations, and global events also present operational and financial risks.
Financial Upside
The company anticipates continued operational growth in several segments, particularly in Oncology and Pulmonary Hypertension. Acquisitions, including Shockwave Medical, and the separation of Kenvue, are expected to contribute to growth. The company has access to substantial funding sources, including a new credit facility, to support operations and ongoing litigation settlements.
