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Johnson & Johnson: Product recalls in the OTC pharmaceuticals business

Published: January 2013 · Publisher: MarketLine
Johnson & Johnson began as a manufacturer of surgical dressings in 1886. The company has embarked on a process of diversification with the business now operating as 3 divisions: Pharmaceutical, Consumer, and Medical Devices and Diagnostics.
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages16
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-2771
Price € 369,00
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Introduction

Johnson & Johnson began as a manufacturer of surgical dressings in 1886. The company has embarked on a process of diversification with the business now operating as 3 divisions: Pharmaceutical, Consumer, and Medical Devices and Diagnostics. This growth from a small manufacturer to a large multinational company was achieved through global expansion, innovation, investment in R&D, and M&A activity.

Features and benefits

* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

A number of targeted acquisitions over the years have helped the company to diversify its business and become a key player in the health care field. With regards to OTC pharmaceuticals, there have been a number of key purchases. These include the acquisition of McNeil Laboratories in 1959 and Pfizer Consumer Healthcare in 2006.
Johnson & Johnson has been the leading brand in the OTC pharmaceuticals market in the US for many years. The acquisition of Pfizer Consumer Healthcare in 2006 led to the company’s market share growing from 9% to 14% of the market.
In recent years the company’s OTC Pharmaceuticals & Nutritionals division has faced a series of problems regarding product quality. These problems have mainly surrounded the McNeil Healthcare business, which manufactures OTC medicines. As a result the company has had to recall a range of products starting with Motrin tablets in July 2009.

Your key questions answered

* How has the company grown from a small manufacturer of surgical dressings to a large multinational holding company?
* What is Johnson & Johnson's share of the US OTC pharmaceuticals market?
* How did the company recover from the 1982 Tylenol murders?
* Why have product recalls been occuring in recent years?
* How have these product recalls impacted the business?
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O VERVIEW
Catalyst
Summary
JOHNSON & JOHNSON HAS GROWN TO BECOME A LARGE DIVERSIFIED BUSINESS
The company began as a manufacturer of surgical dressings
The company is now split into three divisions
Acquisition has been a key driver of growth for the company
Johnson & Johnson acquired McNeil Laboratories in 1959
In 2006 Johnson & Johnson acquired Pfizer Consumer Healthcare
In 2011 Johnson & Johnson bought Merck & Co. out of the companies’ joint venture
JOHNSON & JOHNSON OTC PHARMACEUTICALS GREW RAPIDLY IN THE US
Johnson & Johnson is the leading brand in the US OTC pharmaceuticals market
JOHNSON & JOHNSON HAVE HAD TO RECALL A NUMBER OF PRODUCTS
In 1982 Tylenol was laced with cyanide
The company acted quickly to save its reputation
There have been numerous product recalls since 2009
The opening of the Fort Washington manufacturing facility was delayed until the end of 2013
PRODUCT RECALLS HAVE HAD AN IMPACT ON THE COMPANY’S REPUTATION AND SALES
Product recalls have affected the company’s share of the US pharmaceuticals market
CONCLUSIONS
Johnson & Johnson continues to face threats to its market share position going forward
APPENDIX
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Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.