Johnson & Johnson scrambled to contain the fallout from a Reuters report.
The report said J&J knew about cancer-causing asbestos in its Baby Powder for decades.
It was behind the J&J's stock drop that wiped out $40 billion of the company's market cap.
Johnson & Johnson tried to contain the damage by taking out full-page newspaper ads defending its product and practices.
Its CEO appeared on CNBC's Mad Money with Jim Cramer.
And in a video on the company's website: (SOUNDBITE) (English) JOHNSON & JOHNSON, CHIEF EXECUTIVE OFFICER, ALEX GORSKY, SAYING: "First, J&J's Baby Powder is safe and does not cause cancer.
Studies of tens of thousands of women and thousands of men show the talc does not cause cancer or asbestos-related disease.
Two, since tests for asbestos and talc were first developed, J&J's Baby Powder has never contained asbestos.
Judges and juries have rejected these theories and appellate courts have overturned jury decisions that came down the other way." Senator Edward Markey, a Massachusetts Democrat on the Environment and Public Works Committee, called on the U.S. Food and Drug Administration to investigate the findings in the Reuters report.