$4.7-billion verdict against Johnson & Johnson may open floodgates to lawsuits linking baby powder to cancer

Although J&J has fought suits blaming cancer on its iconic baby powder in the past, investors haven’t reacted to courtroom losses. Given the size of the award and that it came out of the first trial test of claims of an asbestos-ovarian cancer link, investors are likely to increase their focus on the talc cases on the heels of the large award for the plaintiffs, according to Credit Suisse analyst Vamil Divan, who has an “outperform” rating on the company’s shares. Divan said he is confident J&J can absorb “even relatively large payments” to resolve the cases.