Product News and Recalls

Outgoing J&J CEO pay cut seen as good sign

An entry on investment blog Seeking Alpha says that Johnson & Johnson is still trying to regain its footing after a disastrous series of recalls. But the blog advises investors that big salary cut for former CEO William Weldon, who has been demoted to chairman, is a good sign.

Alex Gorsky, the company’s new CEO, has said he plans to improve quality control at Johnson & Johnson.

Johnson & Johnson has instituted more than 30 recalls of medications and medical devices in recent years. As Seeking Alpha points out: “Unfortunately, many of these recalls featured Johnson & Johnson’s top products, causing the company to be hit hard. As a result, consumer sales dropped significantly, a problem caused by the delay in the return of several of these products to the market.”

A type of all-metal hip implant manufactured by Johnson & Johnson subsidiary DePuy Orthopaedics was pulled from the market in 2010, after nearly half of all recipients had to get a replacement within six years, and many also suffered metal toxic metal debris breaking off in their bodies.

Another Johnson & Johnson surgical implant, transvaginal mesh used to treat urinary incontinence and pelvic organ prolapse, has prompted thousands of lawsuits over its high early failure rate.

You should consult with a doctor if you have any ongoing symptoms or health concerns. If you have significant injuries, you should also consult with a lawyer familiar with the DePuy hip implant or transvaginal mesh case to discuss your legal rights.

See the Seeking Alpha entry here: