Yesterday's WSJ health blog had more on the costs J&J is absorbing to its revenue column and to its reputation related to all the OTC recalls. The series of manufacturing issues at its Fort Washington plant, and now expanding to other plants (Puerto Rico & Lancaster, PA), is expected to cost the company more than $600 M in 2010 revenues. Ouch!
Analysts asked CEO Dominic Caruso if the troubles would have spill over effects on the reputation of other J&J products. He answered "it was too early to comment on that". A further probe as to whether J&J would make management changes was met with No Comment.
You can hear the heads rolling about now.
Posted by Bruce Lehr July 21st 2010.