In a recent article, The Motley Fool writer Catherine Baab-Muguira addresses a number of recent management errors and product recalls at Johnson & Johnson.
She writes that they’ve “had investors scratching their heads and asking: Is Johnson & Johnson broken?”
The Department of Justice filed a civil False Claims Act against Johnson & Johnson in 2010, alleging that the company had illegally paid kickbacks to nursing-home pharmaceutical supplier Omnicare to induce Omnicare to use Johnson & Johnson drugs.
Later that year, the company was twice forced to recall dozens of its over-the-counter medicines, many of them intended for use by children, including children’s Benadryl, Motrin, Zyrtec, and Tylenol. The recalls came as the result of “manufacturing deficiencies” at a Pennsylvania plant as well as a “musty odor” associated with drugs manufactured at a Puerto Rican facility.
The company’s had some recent high-profile problems with its medical devices as well. Johnson & Johnson’s DePuy Orthopaedics division was obliged to recall its line of all-metal hip implants in 2010 after nearly half of the patients who received them had to get them replaced within six years.
And this month, Johnson & Johnson recalled four different types of transvaginal mesh implants, used to treat urinary incontinence and pelvic organ prolapse, after hundreds of lawsuits alleging that they caused severe pain and injuries for recipients.
Baab-Muguira writes that most people are probably familiar with Johnson & Johnson from familiar brands such as Band-Aid or Tylenol – unaware of the fact that it’s the largest medical device company and the eighth-largest pharmaceutical company in the world.
Since 2010, according to Baab-Muguira, Johnson & Johnson has trailed the larger indexes such as the S&P 500 and the Dow. She concludes that “it’s clear investors are spooked by Johnson & Johnson’s missteps.”
You should consult with a doctor if you have any ongoing symptoms or health concerns from a Johnson & Johnson product. If you have significant injuries, you should also consult with a DePuy hip or transvaginal mesh lawyer to discuss your legal rights.
See the article here:
