Quick Verdict
Johnson & Johnson (JNJ) is generally considered HALAL and is held in many Islamic investment portfolios. The company's core activities — medical devices, pharmaceuticals, and consumer health products — are fundamentally permissible and beneficial to humanity.
JNJ's Business Segments
Following the 2023 spin-off of its consumer health division (Kenvue), JNJ now focuses on:
- Innovative Medicine (Pharmaceuticals) — ~60% of revenue: Cancer treatments, immunology drugs, cardiovascular medicines
- MedTech (Medical Devices) — ~40% of revenue: Surgical instruments, cardiovascular devices, orthopedics
Both segments are in the business of helping people heal. From an Islamic perspective, contributing to health and healing is not just permissible — it's encouraged.
Financial Screening
- Debt / Market Cap: ~8% ✅
- Interest Income / Total Revenue: Under 2% ✅
- Haram Revenue / Total Revenue: Near zero ✅
- Cash-Based Receivables / Total Assets: Within limits ✅
Concerns to Note
Talc Litigation
JNJ faces massive legal liability related to its talc-based baby powder products and links to ovarian cancer. This is a corporate governance and financial risk issue, not an Islamic compliance issue per se — but it's worth knowing as an investor.
Pharmaceutical Ethics
Some scholars have raised general concerns about the pharmaceutical industry's pricing practices, patent-related barriers to medicine access in developing countries, and lobbying activities. These are ethical concerns, but they don't constitute a specific Islamic screen failure under mainstream methodologies.
Screening Agencies' Verdict
- Zoya App — Compliant ✅
- MSCI Islamic Index — Included ✅
- SPUS ETF — Held ✅
- Islamicly — Compliant ✅
Bottom Line
JNJ is one of the cleaner large-cap stocks for Muslim investors. Healthcare and medicine are inherently aligned with Islamic values around preserving life and health. The financial ratios are sound and the business activities pass all standard screens. It's a reasonable addition to a halal portfolio.
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