FDA ISSUES WARNING LETTER TO J&J OVER BREAST IMPLANTS; STOCK FALLS
Johnson & Johnson stocks are currently trading at 137.16-lower by 0.90% as compared to the previous closing price.
The U.S. Food and Drug Administration has issued warning letter to a Johnson & Johnson unit for failing to comply with the post-approval study requirements for its breast implants.
The letter issued to Johnson & Johnson’s medical aesthetics unit Mentor Worldwide LLC noted several serious deficiencies in the company’s post-approval study for its MemoryShape breast implant approved in 2013.
Failure to enroll the required number of patients in the study and data inconsistencies, including poor patient accounting and missing race and ethnicity data, were identified as violations in the letter.
J&J unit Mentor said it was disappointed with the agency’s decision to issue a warning letter, even as the company attempted to address post-approval study requirements with it.
The FDA said failure to correct the violations may result in the withdrawal of the premarket approval granted to the products.
On the technical front, the RSI is currently at 51.9% and suggests that the market can move in the downward direction. The current price is below the MA5 (137.66). The current price is below the middle line of the Bollinger Bands and is heading downwards.
TRADE SUGGESTION- LIMIT SELL AT 137.20 TAKE PROFIT AT 136.60 STOP LOSS AT 137.50