Johnson and Johnson seems to be having their troubles with the Food and Drug Administration. First they received a Warning Letter for their oversight of clinical trials (see previous post). Now they are accused of false advertising for their Ertaczo cream to fight athletes foot and jock itch. J&J’s scientific ads said the product would “Crush, Kill, Destroy” the offending fungus. Of all the things to get nailed for.
According to Forbes.com:
“In an Aug. 21 letter released by the FDA Wednesday, the agency said the journal advertisement broadens the approved indication, contains unsubstantiated effectiveness claims about the product, and omits important risk information. Also, the FDA said J&J failed to submit the journal advertisement under current FDA regulations.”
And how is their stock doing? They seem to be shrugging it off. It’s down 0.23%.