This Day On The Street
Continue to site right-arrow
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

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

Stocks in this article: JNJMDCO

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs