Hip Replacement Recall Charges Costs J&J $3 Billion
Analysts still don’t know the long-term costs of the DePuy hip replacement recall, but once again, DePuy’s parent company, the New Jersey-based pharmaceutical giant, Johnson & Johnson (J&J), announced it was taking a quarterly charge of $3 billion from its earnings. The news appears in Reuters. DePuy Orthopaedics designed and manufactured the recalled devices, the ASR XL Acetabular System and the ASR Hip Resurfacing System, using novel metal-on-metal components.
A Thirty Percent Failure Rate
The artificial joint industry believed that such metal-on-metal devices would be more durable and last longer due to the growing wave of younger recipients who wish to maintain their active lifestyles. In fact, the devices fail more frequently than those using traditional materials. Aside from the typical hip replacement failure symptoms, many recipients have suffered metal toxicity due to the metal ions flaking from grinding hip replacement components. Though estimates vary, the Reuter‘s article places the DePuy ASR’s failure rate at 30 percent, which is triple that of other all-metal devices. The ensuing recall affects roughly 93,000 recipients worldwide and is the largest of its kind in history.
“Eventual costs are unknown”
Market analysts who are monitoring J&J’s financial outlook expressed concerns they had about the hip replacement recall’s impact on the company’s future. An analyst from Gabelli & Co., Jeff Jonas, said, “The hip recall worries me because their eventual costs are unknown.” Of the $3 billion charge J&J took, $800 million alone went to the recall’s medical costs, suggesting many recipients will have to undergo revision procedures to remove the artificial hip replacements. Another analyst, Damien Conover of Moningstar, stated, “J&J is getting ready to offer some settlements,” which refers to the possibility of DePuy ASR hip settlements for plaintiff recipients who have sued the manufacturer.
RLG Advocates for Injured ASR Recipients
For those who have already sued DePuy, news of the $3 billion charge might be a heartening indicator of a light at the end of the tunnel for their ordeal against the company. However, many more people have not sought experienced legal counsel, and they risk receiving less than they deserve because the amount of compensation from a DePuy lawsuit might be greater than what they would obtain by using DePuy’s recall reimbursement program. A plaintiff can receive damages for medical expenses, lost income, money for pain and suffering, and even punitive damages. If you are interested in suing DePuy click on this link or call 1-877-619-5087 and an attorney from the Rottenstein Law Group will reach out to you as soon as possible.
For more information on the DePuy ASR recall, please download this free brochure.