Recalls Siphon $900 Million From J&J’s 2010 Sales

Johnson & Johnson’s (J&J) string of consumer product recalls cost the company $900 million in sales last year, and more recalls are possible as the company begins scrutinizing external manufacturers. J&J subsidiary McNeil Consumer Healthcare’s OTC product recalls, coupled with the suspension of production at its Fort Washington, Pa., plant, cost the company about $300 million in fourth-quarter sales and about $900 million in 2010 sales, Louise Mehrotra, vice president of investor relations, said during a conference call. Net earnings were $1.9 billion for the quarter compared with $2.2 billion for the same period in 2009.
Washington Drug Letter