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Fly News Breaks for December 17, 2018
JNJ, BHC
Dec 17, 2018 | 08:34 EDT
Morgan Stanley analyst David Risinger attributes Friday's 3% decline in Bausch Health (BHC)shares to concerns that the company is exposed to liabilities related to the talc powder lawsuits being faced by Johnson & Johnson (JNJ) since Bausch acquired right to Shower to Shower talc powder in 2012. However, he believes the negative reaction is likely overblown since Bausch appears to be indemnified by J&J, has been successful in obtaining dismissals of related cases, and has only owned the product rights for the past six year. Risinger maintains an Overweight rating and $32 price target on Bausch Health shares.