This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

2 Execs Out At J&J's Troubled Consumer Business

LINDA A. JOHNSON

Two executives at Johnson & Johnson's recall-riddled consumer health business are departing in two months.

The longtime executives are leaving after a 2 1/2-year span that's seen two dozen recalls of Tylenol, Motrin, Zyrtec and other nonprescription drugs and a congressional investigation of the handling of the recalls.

The company's disclosure Tuesday comes a week after J&J said a McNeil Consumer Healthcare factory, shuttered since April 2010 for a top-to-bottom makeover, won't reopen until 2013, instead of this year. Federal regulators are now closely overseeing that closed factory in Fort Washington, Pa., and two others, in Puerto Rico and Lancaster, Pa., that make nonprescription liquid medicines and pills for adults and children.

Most of the products recalled â¿¿ for nauseating odors, improper levels of ingredients and tiny glass or metal particles in liquid medicines â¿¿ are still not back in stores as J&J works to switch production to other factories, and some won't be back until year's end. That's cost the company more than $1 billion in lost sales, not to mention the goodwill of many consumers, although no injuries have been linked to the recalls.

Johnson & Johnson, based in New Brunswick, N.J., said that Patrick Mutchler, group chairman for over-the-counter drugs, nutritionals and wellness and prevention products, is retiring after 35 years with the health care giant.

Pericles Stamatiades, who headed global strategy for consumer businesses including skin, dental and baby products, is leaving after 28 years at J&J.

Each is leaving at the end of March, a company spokeswoman said.

Both men took their current posts in April 2011, the same month J&J reorganized its consumer business by geographic regions, making nonprescription drugs a separate business. Johnson & Johnson said at the time that the changes would allow it to "give focused attention to quality and compliance, and the critical task of restoring McNeil Consumer Healthcare brands."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,271.52 -14.22 -0.08%
S&P 500 2,130.84 +0.02 0.00%
NASDAQ 5,099.6480 +8.8540 0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs