Johnson & Johnson (NYSE:JNJ) might successfully reopen its Non-prescription medicines business that was shut down initially due to recalls.
Over the past few years, the business suffered due to numerous recalls for some of its products. The company called back more than 135 million medicine bottles after tiny chunks of metal was discovered in Tylenol, one of the medicines for children. The event took place in 2010 and since then, the company has spent millions to upgrade the plant. The company recently announced that its refurbished plant recently underwent the necessary inspection by the Food and Drug Administration.
The recall were extremely detrimental to the company and, as a result, the firm suffered huge losses. Johnson & Johnson (NYSE:JNJ) CHIEF Executive, Alex Gorsky feels that the company has made a lot of progress in reversing the negative image that the business suffered. One of the company’s spokespersons claims that the FDA has not set a specific reopening timetable for the plant. J&J reported second quarter profits amounting to $4.5 billion, or $1.61 a share compared to $4.3 billion, or $1.51 a share in the previous year, thus a significant improvement.
In the current financial year, revenues have so far dropped from 8.8% to $17.79 billion mostly due to the effect of the strong dollar. The company has also been under heavy competition from other pharmaceutical companies, especially for the Hepatitis C treatments. One of the biggest competitors is Gilead Sciences, Inc. (NASDAQ:GILD) with a lucrative new treatment that rivals J&J’s Olysio.
Sandra Peterson is the executive overseeing J&J’s return to the consumer health business. Ms. Peterson claims that 80% of the brandsthat were withdrawn from the market after the incidence will make a comeback. The company plans on regaining the huge market share that it had acquired before the Non-prescription medicines business went belly-up. Ms. Peterson also revealed that the company already has approval from the FDA to reopen the Fort Washington plant and two others in Lancaster, Pa and Las Piedras, Puerto Rico.
