NEW YORK, NY / ACCESSWIRE / July 18, 2018 / Johnson & Johnson saw a pop after announcing second quarter results and vowing to appeal a court order last week that ordered the company to pay a whopping $4.69 billion to nearly two dozen women who alleged the company's talc products contained asbestos and caused them to develop ovarian cancer. Shares of Avid Bioservices also saw big gains after announcing a new CFO.
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Johnson & Johnson
Avid Bioservices, Inc.
Johnson & Johnson shares saw a gain of 3.54% by the close on Tuesday on trading volume nearly double compared to usual. The pharma giant had several developments going on. Eusa, a British pharmaceutical company is closing in on a deal with J&J over a treatment for a rare disease of the lymph nodes according to Bloomberg. The deal could have the treatment valued at over $100 million. Johnson & Johnson also reported second quarter results that revealed results that beat street's expectations. Adjusted earnings and Revenue were reported at $2.1 per share and $20.8 billion respectively. Analysts were expecting EPS of $2.07 on Revenue of $20.39 billion. During the earnings call, J&J also vowed that it would fight a Missouri state court judgment from last week that ordered the company to pay $4.69 billion in a class action lawsuit. The lawsuit alleged that Johnson & Johnson's talc-based baby powder products contained asbestos and caused them to develop ovarian cancer. CEO and chairman Alex Gorsky stated, "As you know our baby powder is a trusted product that we have sold to families for over 100 years, and Johnson & Johnson is deeply disappointed in this verdict. We remain confident that our products do not contain asbestos and do not cause ovarian cancer. We intend to pursue all available appellate remedies."
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Avid Bioservices, Inc. shares closed up a little over 23% on Tuesday with nearly 6.5 million shares traded. It was yesterday that the contract development and manufacturing organization (CDMO)announced the appointment of Daniel Hart as chief financial officer (CFO). As CFO, Hart will be responsible for overseeing and managing the company's accounting and finance responsibilities. The company also appointed Michael Faughnan as the company's senior director of business development for the western region. CEO and President, Roger Lias, Ph.D., remarked, "With Dan joining our team, we have added a talented and experienced individual with all the critical skills required for stewarding the financial activities of a growing public company. As we continue to aggressively focus our efforts on growing and diversifying our client base, Dan's expertise in executing financial strategies that positively impact bottom-line results will prove valuable. We are also pleased to bring Mike on board to oversee our business development efforts in the western portion of the country and Canada. He will team with Sandra Carbonneau, our recently appointed director of business development for the east coast, to drive our comprehensive, nationwide new business acquisition effort."
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