The daily business briefing: August 27, 2019

1. Judge orders Johnson & Johnson to pay $572 million over role in opioid crisis

A judge on Monday ruled that Johnson & Johnson contributed to Oklahoma's opioid crisis through deceptive marketing practices, and ordered the consumer products giant to pay $572 million to help address the damage. The decision from Cleveland County District Judge Thad Balkman was the first to hold a drug maker responsible for the excessive distribution of the powerful and addictive painkillers starting in the late 1990s, and the national epidemic of addiction and overdose deaths that has resulted. The ruling in the first state trial was considered likely to affect legal strategies on both sides as more than 40 states prepare to take on the pharmaceutical industry in court. Johnson & Johnson denied wrongdoing and vowed to appeal. Two other companies named in the suit — OxyContin-maker Purdue Pharma and Teva Pharmaceuticals — settled with Oklahoma before the trial for $270 million and $85 million, respectively.

The Washington Post

2. France, U.S. reach compromise on French digital tax

Officials from France and the United States have reportedly reached a compromise on a new French tax on digital services provided by large internet companies like Google and Amazon. The new agreement stipulates that France would repay companies the difference between its digital tax and whatever taxes come from the Organization for Economic Cooperation and Development's planned mechanism. French President Emmanuel Macron praised the agreement, while maintaining that France will nix its national tax if and when his preferred method of an international tax system is implemented. President Trump had previously repeatedly threatened to tax French wine if Paris moved forward with its approved three percent tax on digital services.

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3. U.S. stocks flat as trade remains in focus after Monday's gains

U.S. stock index futures were flat early Tuesday as investors continued to show caution as they monitored the U.S.-China trade dispute. The three main U.S. indexes all rose by 1.1 percent or more on Monday after both sides expressed optimism that they could reach a deal to end the trade war. President Trump said after the Group of Seven summit in France that China had called seeking new talks, and he predicted Beijing would make a deal because it was under heavy economic pressure. "There is a little sense of optimism that the U.S. and China could restart talks, but at the same time you also have some hesitation," said Yousef Abbasi, director of U.S. institutional equities at INTL FCStone.

CNBC

4. KFC to test plant-based chicken nuggets

KFC plans to start testing plant-based chicken nuggets and boneless wings Tuesday in one of the fried chicken chain's Atlanta restaurants. The test is part of a partnership with California-based startup Beyond Meat, which developed the new chicken substitute made with wheat protein for KFC. If the experiment with Kentucky fried plant-based chicken is successful, KFC will expand it to other markets. Beyond Meat sells plant-based burgers, sausages, and other products in grocery stores, as well as in fast-food chains including Carl's Jr. and Del Taco. Demand for plant-based meats, which many consider healthier and more sustainable than meat, is rising. Euromonitor says sales will increase by 78 percent between 2018 and 2023, reaching $2.5 billion.

The Associated Press

5. Sale of psoriasis drug clears obstacle to Bristol-Myers, Celgene merger

Amgen on Monday agreed to buy psoriasis medicine Otezla from Celgene for $13.4 billion. The deal will help clear an obstacle for Bristol-Myers Squibb's $74 billion acquisition of Celgene. The merger was supposed to have been completed by now, but it has been delayed because the Federal Trade Commission called for the sale of Otezla to address concerns that combining the two companies could hurt competition in the production and sale of anti-inflammatory drugs. Amgen shares rose by 3.3 percent Monday after news of its purchase of Otezla broke. Jefferies' Michael Yee called it a "positive and smart deal" that should increase Amgen's 2020 revenue to $25.2 billion from $23 billion.

The Wall Street Journal MarketWatch