J&J was ordered to pay $572 million to the state of Oklahoma. However, the sum was much less than the $17 billion in penalties originally sought by the state.
Karen Davies, senior vice president, and managing director with Huntington Commercial Bank sat down with TheStreet to talk about M&A, the healthcare sector and her thoughts on a possible economic downturn.
"Obviously it's newsworthy and apparently, Johnson & Johnson is sort of the first one to sort of pay in this risk sector. I do believe from a healthcare standpoint, there are still plenty of opportunistic areas for investment. We saw it last year with heavy hospital consolidation, bringing the cost down for those large operators. We've seen big pharma deals getting done, as of recent Celgene, and we've seen a lot of transactions getting done where pharmaceutical businesses are consolidating cause bringing costs down to bring drugs to market is getting exceptionally high," said Davies.
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