The company’s statement followed a Bloomberg report that said the U.S. was pursuing a criminal investigation into whether the company lied about alleged cancer risks tied to talcum powder. A grand jury is examining documents covering what executives at the pharmaceutical and health-products company knew about carcinogens in its products, the Bloomberg report said.
The story, which cited people familiar with the matter, reduced J&J’s share price by as much as 5.6% Friday. Shares closed down 4.2% at $134.30.
J&J said in February that it had received a subpoena from the Justice Department related to the baby powder. “The implication that there has been a new development in this matter is flatly wrong,” a J&J spokesman said in a statement Friday.
J&J has denied that the powder product contains asbestos or causes cancer.
J&J’s talcum powder, aimed at babies, is among New Brunswick, N.J.,-based J&J’s most recognizable products and one of the few branded with the company’s name. The powder accounts for a fraction of its $81.6 billion in overall sales.
In May, a New York state court jury ordered the company to pay $300 million in punitive damages to a woman who claimed her use of its talc powder caused an asbestos-linked cancer.