Johnson and Johnson (JNJ, Financial) has yet to see an end to the steady flow of recalls plaguing the company. This week’s recall was for the HIV drug Prezista and again, the familiar issue was an odor coming from the drug. The CEO has defended the recalls as being isolated to the McNeil subsidiary, which indeed is certainly replete with its problems. But on further inspection recalls have been a problem for the vast Johnson and Johnson empire, spanning various divisions and lines of business.
Below shows a chart of the three Johnson and Johnson businesses and divisions within each that have had at least one recall if not more. Many have occurred in the Over the Counter division as that segment has seen a decline in sales of nearly 20%. Sales figures are for the 2010 year:
A complete list of the McNeil recalls can be found here. The stock has recently gotten a boost from the FDA approval of the Teleprevir drug the company is going to be marketing in Europe. But being that the recalls are showing no sign of abating, opportunities to buy the stock may yet present themselves for those willing to be patient with company.
Disclosure: No positions in JNJ
Josh Zachariah
Below shows a chart of the three Johnson and Johnson businesses and divisions within each that have had at least one recall if not more. Many have occurred in the Over the Counter division as that segment has seen a decline in sales of nearly 20%. Sales figures are for the 2010 year:
A complete list of the McNeil recalls can be found here. The stock has recently gotten a boost from the FDA approval of the Teleprevir drug the company is going to be marketing in Europe. But being that the recalls are showing no sign of abating, opportunities to buy the stock may yet present themselves for those willing to be patient with company.
Disclosure: No positions in JNJ
Josh Zachariah
