Recalls Drain $900 Million From J&J’s Pocket in 2010

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 total year sales, Louise Mehrotra, vice president of investor relations, said during a conference call last month.

Net earnings were $1.9 billion for the quarter compared to $2.2 billion for the same period in 2009. McNeil identified the issues during a product quality and process assessment, and it has now completed its assessment of historical records, as far back as 2007, for products sold in the U.S.
Drug GMP Report