Major retailers including Walmart, Rite Aid Corp, and CVS Health pulled Johnson Baby Powder products from their shelves after the announcement by the FDA. Johnson & Johnson is hoping that by fighting back it can preserve its brand power, revenues, and position on retailer’s shelves once it’s all said and done. We will continue to monitor this situation going forward and would like to note that Johnson & Johnson, potential legal liabilities aside, raised its full-year guidance for 2019 multiple times this year highlighting the underlying demand for its vast array of healthcare-related offerings. That supports a nice free cash flow growth trajectory.
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