Investing.com -- Shares of Johnson & Johnson (NYSE:JNJ) fell 3% amid concerns regarding its cardiac ablation device, Varipulse. The movement comes after Wells Fargo (NYSE:WFC) released a research report suggesting disruptions in the supply of Varipulse due to potential side effects that may have led to a temporary halt of its use in some regions of the United States.
The report, spearheaded by analyst Larry Biegelsen, pointed to conversations with physicians and industry contacts indicating that Johnson & Johnson has possibly paused Varipulse procedures because of adverse events, including strokes. Biegelsen stated, “it’s unclear if a full pause has gone into effect,” while maintaining an equal-weight rating on the stock with a price target (PT) of $166.
Following the publication of the Wells Fargo report, Johnson & Johnson confirmed to Bloomberg that there was, indeed, a temporary pause in the use of Varipulse as the company investigates the cause behind four neurovascular events. This confirmation has likely contributed to the negative investor sentiment reflected in the stock's decline during the trading session.
The concerns about Varipulse come at a critical time for Johnson & Johnson as it navigates the competitive medical device market. The temporary pause and subsequent investigation into the reported adverse events underscore the importance of patient safety in the healthcare industry and the impact such incidents can have on a company's reputation and financial performance.
Investors are closely monitoring the situation, as any significant updates regarding the investigation's findings or regulatory actions could further influence the company's stock performance. Johnson & Johnson's swift response to the issue indicates its commitment to addressing potential safety concerns, but the market's reaction suggests that there are still uncertainties surrounding the future of Varipulse.
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