8-KOther Events

JOHNSON & JOHNSON 8-K Report, Corporate Update (Jun 8, 2012)

Filed June 8, 2012For Securities:JNJ

Summary

Johnson & Johnson (JNJ) filed an 8-K on June 8, 2012, to disclose an expected special charge of approximately $600 million in the second quarter of 2012. This charge is to increase the company's accrual for the potential settlement of previously disclosed civil litigation matters. The litigation involves specific drugs including RISPERDAL®, INVEGA®, NATRECOR®, and issues related to Omnicare, Inc. While the company is working towards a resolution, it cautions investors that ongoing discussions with government representatives offer no guarantee of a consensual resolution, the timing of such a resolution, or its final terms. Investors should note that this disclosure, while significant, is an estimate and the actual costs could vary. The filing also includes standard forward-looking statement disclaimers, highlighting various business risks that could impact future results.

Key Highlights

  • 1JNJ expects to incur a special charge of approximately $600 million in Q2 2012.
  • 2The charge is for increasing accruals related to potential settlements of civil litigation.
  • 3Litigation involves RISPERDAL®, INVEGA®, NATRECOR®, and Omnicare, Inc.
  • 4Company is in ongoing discussions with state and federal government representatives for settlement.
  • 5No assurance is given regarding the success, timing, or terms of any potential settlement.
  • 6The $600 million is an estimate, and actual costs may differ.

Frequently Asked Questions

The primary reason for this 8-K filing is to inform investors that Johnson & Johnson anticipates a special charge of approximately $600 million in the second quarter of 2012 to cover potential settlements of ongoing civil litigation related to specific drugs and a third-party provider.

The litigation mentioned in the filing involves RISPERDAL® (risperidone), INVEGA® (paliperidone), and NATRECOR® (nesiritide), as well as matters related to Omnicare, Inc.

No, the $600 million is an estimate to increase the company's accrual for a *potential* settlement. The filing emphasizes that ongoing discussions with government representatives are not guaranteed to result in a resolution, nor are the terms or timing of any such resolution assured. The actual cost could be different from this estimate.

The filing includes standard forward-looking statement disclaimers detailing numerous risks, including ongoing government discussions, general industry conditions, competition, economic factors, product development challenges, patent challenges, adverse litigation, and regulatory scrutiny, among others. These factors could materially impact actual results.