Mr. Weldon,
I am a shareholder of Johnson and Johnson. I did not say I am a “large” shareholder, because I am not. I did not say I am a “small” shareholder either. Truthfully, you can blame the confusion on Mr. Buffett and Mr. Graham, who taught me and other investors that when purchasing shares of a company, you should analyze the stock as if you were buying the entire company. So, even though I don’t hold a large number of shares, it does represent a sizeable amount of my portfolio and I purchased it as if I were purchasing the entire company.
With that in mind, I can honestly state that I am not certain I would allow you and the board to keep your jobs. But to be fair, let us go over the dilemma which we face as a company.
The recalls:
Tylenol
Motrin
Benadryl
Rolaids
Contact Lenses
Hip Replacements
Sutures
Sudafed PE
Sinutab
I am soon to be a 59 year old male that has migraine headaches, heartburn and allergies. Rolaids were the only product I could count on to relieve my heartburn, but they have gone away. They are not on the shelf anymore and I’ve forced myself to take another product which doesn’t help nearly as well. My headaches were soothed by Tylenol and Motrin, but are now being similarly soothed by Walmart’s own brand products or other generic products. My allergies are being dried up by another generic drug that used to stand next to the Benadryl.
Will Walmart, Walgreen’s, CVS, Kroger’s, etc., once again make room for our products, because the shelves are completely filled right now….and not with our products.
The last two years are the first revenue declines for this company since the Great Depression. That is your legacy Mr. Weldon. I will be the first to admit that we’ve had unusual economic problems, however; we’ve had other bad times and the company has survived and managed to weather the past storms without the noted declines. That is how you and this board will be remembered if changes are not forthcoming.
I read your testimony before Congress and have no reason to doubt your integrity, but the Motrin recall, which consisted of Johnson and Johnson hiring another company to buy up the product so that no one would know of the recall, speaks volumes. This is amateur hour. You stated:
“This episode was not a model for how I would like to see Johnson & Johnson companies approach problems with defective products”.
Then how did this program get started? Did it have your approval? Was someone fired for this? If it’s not a model that you want to see….where did it come from?
“It’s the economy stupid” will only get you and the board so far. Some of the blame can certainly be attached to this current economy. Action needs to take place to assure the shareholders that you mean what you say. The stock has not really moved for five years. Something has to move…the stock… or you and the board.
In all fairness, it was reported recently in Pharmalot that companies are failing FDA inspections in large numbers at Abbott Labs, Pfizer, Merck, Johnson and Johnson and others. Johnson and Johnson failed less than the others in percentile, however; I don’t see this as a huge reason for sudden euphoria.
Mr. Weldon, I have no axe to grind. I would be happy for you to keep your job, but note that I am counting on J & J to supplement my retirement and I need this company to turn around…and soon.
I am a shareholder of Johnson and Johnson. I did not say I am a “large” shareholder, because I am not. I did not say I am a “small” shareholder either. Truthfully, you can blame the confusion on Mr. Buffett and Mr. Graham, who taught me and other investors that when purchasing shares of a company, you should analyze the stock as if you were buying the entire company. So, even though I don’t hold a large number of shares, it does represent a sizeable amount of my portfolio and I purchased it as if I were purchasing the entire company.
With that in mind, I can honestly state that I am not certain I would allow you and the board to keep your jobs. But to be fair, let us go over the dilemma which we face as a company.
The recalls:
Tylenol
Motrin
Benadryl
Rolaids
Contact Lenses
Hip Replacements
Sutures
Sudafed PE
Sinutab
I am soon to be a 59 year old male that has migraine headaches, heartburn and allergies. Rolaids were the only product I could count on to relieve my heartburn, but they have gone away. They are not on the shelf anymore and I’ve forced myself to take another product which doesn’t help nearly as well. My headaches were soothed by Tylenol and Motrin, but are now being similarly soothed by Walmart’s own brand products or other generic products. My allergies are being dried up by another generic drug that used to stand next to the Benadryl.
Will Walmart, Walgreen’s, CVS, Kroger’s, etc., once again make room for our products, because the shelves are completely filled right now….and not with our products.
The last two years are the first revenue declines for this company since the Great Depression. That is your legacy Mr. Weldon. I will be the first to admit that we’ve had unusual economic problems, however; we’ve had other bad times and the company has survived and managed to weather the past storms without the noted declines. That is how you and this board will be remembered if changes are not forthcoming.
I read your testimony before Congress and have no reason to doubt your integrity, but the Motrin recall, which consisted of Johnson and Johnson hiring another company to buy up the product so that no one would know of the recall, speaks volumes. This is amateur hour. You stated:
“This episode was not a model for how I would like to see Johnson & Johnson companies approach problems with defective products”.
Then how did this program get started? Did it have your approval? Was someone fired for this? If it’s not a model that you want to see….where did it come from?
“It’s the economy stupid” will only get you and the board so far. Some of the blame can certainly be attached to this current economy. Action needs to take place to assure the shareholders that you mean what you say. The stock has not really moved for five years. Something has to move…the stock… or you and the board.
In all fairness, it was reported recently in Pharmalot that companies are failing FDA inspections in large numbers at Abbott Labs, Pfizer, Merck, Johnson and Johnson and others. Johnson and Johnson failed less than the others in percentile, however; I don’t see this as a huge reason for sudden euphoria.
Mr. Weldon, I have no axe to grind. I would be happy for you to keep your job, but note that I am counting on J & J to supplement my retirement and I need this company to turn around…and soon.
