Report: Medtech rules help push J&J’s India numbers down

Medical device price caps and other regulations contributed to a 3% drop in Johnson & Johnson‘s (NYSE:JNJ) sales in India, according to a new report from Reuters.

The company reported overall sales of $829 million (INR ₹58.3 billion) in the country in its filing with the Ministry of Corporate Affairs, according to the report.

After-tax profit for the quarter rose 18% to $98 million in India, according to Reuters, which includes foreign exchange gains.

Johnson & Johnson is facing scrutiny in India, and globally, over claims that it knew that it had asbestos in its talcum baby powder for decades, according to the report.

In response to the investigation, which was originally posted by Reuters, drug inspectors across India have collected talcum samples from J&J’s facilities for testing.

Currently, J&J leads sales in the Indian baby and child toiletries market which is estimated to be worth $178 million, according to the report.

Sales in the company’s medical segment, which includes a number of products that have had price caps set by the Indian government, fell 7% to approximately $279.7 million (INR ₹19.6 billion), according to Reuters.

Last month, Johnson & Johnson said that its board authorized a stock buyback worth $5 billion in a bid to shore up its share price.

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