Thursday, January 26, 2012

J&J getting ready to offer settlements for those patients who recieved an estimated 93,000 hips??

Not sure what the implications of this statement are but the observation is very interesting in answer to some of our readers continuously asking about J&J settlements.

J&J hit with recall charges, 2012 view lags

Tue Jan 24, 2012 4:21pm EST

(Reuters) - Johnson & Johnson (JNJ.N) took quarterly charges of more than $3 billion largely related to the recall of its defective artificial hips and gave a 2012 earnings forecast below analysts' estimates.

The company's DePuy Orthopedics unit in 2010 issued a massive recall of its "metal-on-metal" hip-replacement devices after they shed metal fragments, causing disabling injuries.

"J&J is getting ready to offer some settlements" with patients who received an estimated 93,000 of the artificial hips, Morningstar analyst Damien Conover predicted. The fourth-quarter charges will allow money to be set aside for patients and lawyers involved in ongoing product liability litigation.

The DePuy ASR devices were developed to be more durable than traditional implants that combined metal and polyethylene for their ball-in-socket structure. But Conover said the J&J devices have almost a 30 percent failure rate, three times the typical rate of other metal-on-medical devices.

"The hip recalls worry me because their eventual costs are unknown," said Gabelli & Co analyst Jeff Jonas, who noted that the array of fourth-quarter charges include $800 million for medical costs of the recall.

The company forecast 2012 earnings of $5.05 to $5.15 per share, compared with the consensus Wall Street view of $5.21.

J&J spokesman William Price said most analysts had not yet factored the negative impact of the stronger dollar into their forecasts.

Article goes on to cover other J and J products......

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