Shares of Johnson & Johnson tumbled 12 per cent on Friday and were on track to post their biggest percentage drop in more than 16 years after Reuters reported that the pharma major knew for decades that cancer-causing asbestos lurked in its Baby Powder.

The decline in shares erased about $47 billion (€41.6bn) from the company’s market capitalisation, with investors worrying about the fallout of the report as it faces thousands of talc-related lawsuits.

“It is not surprising that an article from Reuters outlining years of potential knowledge regarding the perils of talc should agitate investors,” said BMO Capital Markets analyst Joanne Wuensch. “This is not a simple matter as there are more than 10,000 pending cases.” Related Long Read: Johnson & Johnson knew for decades about issues with its talc baby powder

J&J was found to have known about the presence of small amounts of asbestos in its products from as early as 1971, a Reuters examination of company memos, internal reports and other confidential documents showed.

The Reuters report also showed the company had commissioned and paid for studies conducted on its Baby Powder franchise, and hired a ghostwriter to redraft the article that presented the findings in a journal.

The company in 1976 had assured the US Food and Drug Administration that no asbestos was “detected in any sample” of talc produced between December 1972 and October 1973 when at least three tests by three different labs from 1972 to 1975 had found asbestos in its talc.

Body cavities J&J has been battling cases claiming its Baby Powder and Shower to Shower products cause ovarian cancer. The products have also been linked with mesothelioma, a rare and deadly form of cancer that affects the delicate tissue that lines body cavities.