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Johnson & Johnson Takes $3 Billion Charge for DePuy ASR Hip Implant Recall, Lawsuits

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Johnson & Johnson set aside $3 billion in fourth quarter charges for consumer product liability litigation, mostly concerning the extensive recall of DePuy Orthopaedics ASR metal-on-metal hip replacement devices, which were found to fail prematurely and shed metal particles into the body and cause disabling disabilities.

A worldwide recall of DePuy’s  ASR Hip Resurfacing System and   ASR Acetabular System was issued in August 2010,  after data from the National Joint Registry of England and Wales showed that 1 out of every 8 patients (12%-13%) experienced failure of the implants  within five years of receiving them.

The New York Times reports J&J forecasted 2012 earnings slightly below analysts’ estimates.

Gabelli & Company analyst Jeff Jonas said $800 million of the fourth quarter charges is for the medical costs for the DePuy hip replacement recall. “The hip recalls worry me because their eventual costs are unknown.”

J&J fourth-quarters were better than expected, earning the company $218 million, while global sales rose 3.9 percent to $16.26 billion.

breakinglawsuitnews.com disclaimer: This article: Johnson & Johnson Takes $3 Billion Charge for DePuy ASR Hip Implant Recall, Lawsuits was posted on Monday, January 30th, 2012 at 8:36 pm at breakinglawsuitnews.com and is filed under Medical Device Lawsuits.

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