Johnson & Johnson Reputation Tarnished by Recalls

By Linda Dailey Paulson

Consumer product megalith Johnson & Johnson has a 125-year reputation as a leader in the healthcare industry, bolstered by keystone brands that have become household names such as Band-Aid bandages and “No More Tears” Baby Shampoo. That reputation has been eroded by a string of product recalls and continued scrutiny by federal agencies, including Congress. It has prompted the company to restructure and examine its manufacturing operations.

Since 2010, Johnson & Johnson has issued more than 50 voluntary product recalls, one of the latest of which is for the DePuy replacement hip. Recalls have covered items found in most American medicine cabinets: Tylenol, St. Joseph Aspirin, Benadryl, Zyrtec, and Rolaids. In the year that ended March 8, 2011, the company ”was involved in at least 11 major recalls, as defined by the FDA,” according to a Bloomberg report. This is twice as many as its competitors Pfizer and Procter & Gamble.
Reporters David Voreacos, Alex Nussbaum, and Greg Farrell writing in BusinessWeek say the problems are not new and perhaps endemic of systemic manufacturing problems, particularly shoddy quality control at its factories in the United States. The reporting team writes:

Over the last 15 months, the company has also recalled contact lenses, syringes filled with prescription medications, hernia devices, and other products made by subsidiaries around the world.  … [I]ts own annual report for 2010 contains eight pages detailing government criminal and civil investigations and thousands of private lawsuits covering a wide range of drugs, devices, and business practices.

The company’s McNeil Consumer Healthcare division alone has recalled more than a dozen products since late 2009, the latest of which covered Tylenol, Sudafed, and Benadryl. These product recalls reportedly cost the company US$900 million in sales last year and prompted Congressional hearings. Through McNeil, Johnson & Johnson sells its popular cold, pain, and allergy medicines including Tylenol, Benadryl, Motrin, and Zyrtec.

Operations at three McNeil Consumer Healthcare plants in the U.S. are being overseen for five years by the Food and Drug Administration (FDA) after a March 10 consent degree; it faces US$10M annually in agency fines. One of these factories remains shuttered until the FDA deems it meets regulatory standards.

Johnson & Johnson announced in late March it would be reorganizing McNeil effective April 4. The unit will be led by Patrick Mutchler, who has been with Johnson & Johnson for 35 years, primarily working its consumer products businesses. Jonathan D. Rockoff of The Wall Street Journal reports that Jesse Wu, an executive responsible for the company’s consumer businesses, told employees that he decided to make McNeil a separate company ”‘in order to give focused attention to quality and compliance, and the critical task of restoring’ the reputation of its products…Keeping McNeil separate signals the company wants to focus on its operations and on fixing its problems.”

Image by Ragesoss, used under its Creative Commons license.

About

Linda Dailey Paulson is a veteran freelance writer and editor. She covers product safety issues for USRCN.

There are 3 comments. Add yours.

  1. Betsy Carlson

    To Mr. Quinlan and Mr. Williamson, You two really have your heads in the sand. I was employed during this conspiracy at McNeil. The management team knew exactly what was happening at this facility. The employees spoke up, but we were crucified for doing so!!! For the last 20 years they sucked every dime out of this company and lined their own damn pockets. And now you two have nothing but sympathy for these cowards. You should be ashamed of yourselves. The white collar sector is ruining this country, and I refuse to let you two idiots sweep this under the rug. There is no excuse for J&J. Who’s shirt tails are you hanging from? In this case management should be held responsible for their actions, after all they made all the asinine decisions. The code of silence you two idiots fall under needs to be addressed, nothing more. Shut up and do the right thing.

    Reply
  2. ED QUINLAN

    they will get the problem fixed. meanwhile I will just wait rather than switch.
    remember this is an american company and that is the reason to buy their product.

    Reply
  3. Tom Williamson

    They’ve done a wonderful job over the years. Lets not crucify them for
    problems they’re facing now. I feel very confident that they will make it right.
    There have been several companies from automobiles to drugs, hips, knees
    and food. We’re only human.

    Reply

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