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Johnson & Johnson Device Recall Unlikely to Affect Company Financials

TheStreet

Shares of Johnson & Johnson ended Wednesday's session in the red after the medical device maker issued a recall of its power morcellators. It's a surgical device commonly used to perform hysterectomies. The device was recalled over concerns it could spread undetected cancer. It's hard to know how lost revenue from sales will affect the company's financials. Morningstar analyst Damien Conover does not expect the company to take a big hit as Johnson & Johnson initially halted sales of the device back in April at the start of an FDA investigation. Johnson & Johnson's second quarter earnings remained strong with an increase in revenue and a 4.4% increase in year over year sales. In July an FDA evaluation revealed the complex nature of the risks potentially created by the device which led to Johnson & Johnson's most recent market withdrawal of the tool. TheStreet's Julie Cerullo reports.