Bayer AG BAYRY and Johnson & Johnson’s JNJ subsidiary, Janssen Pharmaceuticals Inc. announced that they have reached a $775 million settlement to resolve litigation filed by patients who suffered a bleeding injury after taking the blood thinner, Xarelto.
The settlement will virtuallyresolve approximately 25,000 Xarelto claims in the United States. Notably, plaintiffs claimed that the drug caused uncontrollable and irreversible bleeding, leading to severe injuries and even death among thousands of patients.
The settlement amount will be shared equally between the two companies. It is expected that Bayer’s share will be partially offset by product liability insurance.
Shares of Bayer have declined 41.4% in the past year, against the industry’s growth of 17.1%.
Plaintiffs accused the drug makers of having failed to warn about the bleeding risks, claiming that their injuries could have been prevented had doctors and patients been provided with adequate information.
In addition to addressing lawsuits, the agreement resolves newly filed claims that meet certain criteria. These include plaintiffs who had retained a lawyer to investigate Xarelto-related personal injury claims before Mar 11, 2019, register their claim by Mar 28, 2019, and file a civil action by Apr 4, 2019. Individuals involved in these lawsuits are required to contact their personal attorneys to address eligibility questions.
Payments will be substantially reduced for any claimant whose first Xarelto prescription was on or after Dec 1, 2015, and/or whose first alleged injury from Xarelto occurred on or after Mar 1, 2016.
The companies had so far won all six trials over Xarelto's alleged bleeding risk.
We remind investors that Xarelto is approved by the FDA to treat people with atrial fibrillation, a common heart rhythm disorder that increases the risk of stroke. The drug is used to treat and reduce the risk of deep vein thrombosis and pulmonary embolisms. It is also used to reduce the risk of serious heart problems, heart attack and stroke in patients with coronary artery disease.
Bayer Aktiengesellschaft Price
Bayer Aktiengesellschaft Price | Bayer Aktiengesellschaft Quote
Zacks Rank and Other Stocks to Consider
Bayer currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the same space are AstraZeneca Plc. AZN and Roche Holding AG RHHBY, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AstraZeneca’s earnings per share estimates have increased from $1.74 to $1.79 for 2019 and from $2.14 to $2.20 for 2020 in the past 60 days. The company delivered a positive earnings surprise in all the trailing four quarters, with average of 106.40%.
Roche’s earnings per share estimates have increased from $2.31 to $2.35 for 2019 and from $2.34 to $2.37 for 2020 over the past 90 days.
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