Johnson & Johnson Tries Bankruptcy Trick In Baby Talc Cancer Case
Axios reports that J&J has acted as expected and split part of the company responsible for handling claims over whether its baby powder products harmed people into a separate company, which is now filing for bankruptcy. The Theranos trial, global medical device sales and more are also reported.
Axios:
J&J Pulls Trigger On Texas Loophole To Protect From Baby Powder Claims
It's official: Johnson & Johnson has invoked a Texas legal loophole in an attempt to protect the bulk of its corporate assets from claims that its baby powder caused ovarian cancer and mesothelioma. It's the biggest and boldest invocation yet of the so-called Texas two-step defense. But it's still not clear whether it's going to work. (Salmon, 10/19)
In other pharmaceutical and biotech industry news —
The Wall Street Journal:
The Elizabeth Holmes Trial: Former Product Manager Details Shortcuts As Devices Failed
Testimony from a former Theranos Inc. product manager in the criminal fraud trial of Elizabeth Holmes has shed light on the startup’s race to court investors and business partners and the shortcuts it took when its blood-testing devices failed. Daniel Edlin has testified over two days about the five years he spent at Theranos, starting with his recruitment by Ms. Holmes’s brother, Christian Holmes, a friend from Duke University. He stayed until December 2016, a year after The Wall Street Journal began reporting on problems with Theranos’s technology. (Randazzo, 10/19)
Stat:
Philanthropist-Funded Study Raises Questions About Clinical Research
The opportunity seemed too good to pass up. It was 2020, and the CEO of a blood-test company was addressing fibromyalgia patients through their television screens. His firm, EpicGenetics, wasn’t exactly a household name, but its product could help get you in the door at Massachusetts General Hospital. “With a positive test,” Bruce Gillis, the CEO, said, “you can volunteer for an FDA-approved clinical trial for an investigational new treatment to reverse the disease and eliminate your symptoms.” The hospital, though, wasn’t so sure about that pronouncement. (Boodman, 10/20)
Axios:
Global Device Sales Stay Steady Amid Delta Variant
The Delta variant and hospital labor shortages didn't crush sales of medical devices, earnings reports from Johnson & Johnson and Intuitive Surgical show. The resurgent coronavirus forced some hospitals and patients to delay care, like spine and knee procedures. But deferred care across the world was nothing like it was at this time last year. (Herman, 10/20)
