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
TheStreet Open House

New J&J CEO To Discuss $20B Purchase In 2Q Report

LINDA A. JOHNSON

TRENTON, N.J. (AP) â¿¿ Johnson & Johnson, a Dow component, will focus on a huge acquisition, some experimental drugs awaiting approvals and its ongoing recall and manufacturing quality issues when it reports second-quarter results before the stock market opens Tuesday.

WHAT TO WATCH FOR: Alex Gorsky, who moved up from head of J&J's medical device business to CEO in April, will address analysts on the quarterly conference call for the first time. He's sure to focus on J&J's June acquisition of Synthes, the Swiss surgical trauma equipment and orthopedic implants maker, for $19.7 billion â¿¿ J&J's biggest acquisition ever. The deal is meant to lift J&J to a dominant global position in the growing orthopedic surgery market.

J&J, which makes Band-Aids, prescription drugs and medical devices, will give its usual update of its financial forecast, which could include some impact from integrating Synthes.

Analysts likely will bring up a flurry of litigation hitting the world's biggest maker of health care products. That includes news this week that J&J has a tentative settlement with shareholders who are suing its board and top executives after years of growing legal and manufacturing quality problems. The plaintiffs blame J&J's decentralized management structure for allowing top officials to claim they didn't know about problems. The settlement would put in place new quality and compliance standards, an independent oversight committee and procedures for all problems to be reported quickly to the board.

J&J, based in New Brunswick, N.J., may note that it has taken another $600 million charge for litigation reserves involving ongoing government investigations over alleged illegal marketing of three prescription medicines. The company is reportedly close to a settlement with the Justice Department that would include paying about $2 billion in penalties.

Analysts may ask about a recent estimate by a plaintiff's lawyer that the company could be facing close to $5 billion in liability from about 1,600 pending lawsuits over painful failures of its Pinnacle all-metal hip replacement system. The product remains on the market. J&J says it's reduced pain and given mobility to many patients.

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

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