Johnson & Johnson
||This article may be unbalanced towards certain viewpoints. (March 2014)|
|Traded as||NYSE: JNJ
Dow Jones Industrial Average Component
S&P 500 Component
|Founder(s)||Robert Wood Johnson I
James Wood Johnson
Edward Mead Johnson
|Headquarters||New Brunswick, New Jersey, United States|
|Key people||Alex Gorsky
(Chairman and CEO)
|Products||See list of Johnson & Johnson products|
|Revenue||US$ 71.312 billion (2013)1|
|Operating income||US$ 15.471 billion (2013)1|
|Net income||US$ 13.831 billion (2013)1|
|Total equity||US$ 74.053 billion (2013)1|
|Subsidiaries||McNeil Consumer Healthcare
Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.
Johnson & Johnson ranked at the top of Harris Interactive's National Corporate Reputation Survey for seven consecutive years up to 2005,3 was ranked as the world's most respected company by Barron's Magazine in 2008,4 and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State Department in 2005 for its funding of international education programs. However, in recent years the company's reputation has been adversely affected by product recalls, fines for pharmaceutical marketing practices, litigation with a group of shareholders, and other legal issues.
Johnson & Johnson is headquartered in New Brunswick, New Jersey with the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $65 billion for the calendar year of 2011.5
Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
- 1 History
- 2 Corporate governance
- 3 Diversification
- 4 Headquarters
- 5 Environmental record
- 6 Internet communication
- 7 Recalls
- 8 Litigation
- 9 Subsidiary holdings
- 10 Products
- 11 See also
- 12 References
- 13 External links
Inspired by a speech by antiseptic advocate Joseph Lister, Robert Wood Johnson joined his brothers James Wood Johnson and Edward Mead Johnson to create a line of ready-to-use surgical dressings in 1885. The company produced its first products in 1886 and incorporated in 1887.
Robert Wood Johnson served as the first president of the company. He worked to improve sanitation practices in the nineteenth century, and lent his name to a hospital in New Brunswick, New Jersey. Upon his death in 1910, he was succeeded in the presidency by his brother James Wood Johnson until 1932, and then by his son, Robert Wood Johnson II.
Robert Wood Johnson's granddaughter, Mary Lea Johnson Richards, was the first baby to appear on a Johnson & Johnson baby powder label.789 His great-grandson, Jamie Johnson, made a documentary called Born Rich about the experience of growing up as the heir to one of the world's greatest fortunes.
- Robert Wood Johnson I 1887–1910
- James Wood Johnson 1910–1932
- Robert Wood Johnson II 1932–1963
- Philip B. Hofmann 1963–1973
- Richard B. Sellars 1973–1976
- James E. Burke 1976–1989
- Ralph S. Larsen 1989–2002
- William C. Weldon 2002–2012
- Alex Gorsky 2012–Present
Current members of the board of directors of Johnson & Johnson are: Mary Sue Coleman, James G. Cullen, Dominic Caruso, Michael M.E. Johns, Ann Dibble Jordan, Arnold G. Langbo, Susan L. Lindquist, Leo F. Mullin, William Perez, Christine A. Poon, Steven S. Reinemund, David Satcher, and William C. Weldon.10
Johnson and Johnson's corporate structure is based on a decentralized management philosophy. The company operates in three segments: Consumer Products, Pharmaceuticals, and Medical Devices and Diagnostics. The company's central Executive Committee allocates resources and sets strategic priorities for these divisions. Key subsidiaries include Ethicon (Medical Devices); McNeil Laboratories, Inc., Cilag, and Janssen Pharmaceutica (Pharmaceuticals). In 2012, the Consumer Products, Pharmaceuticals, and Medical Devices and Diagnostics divisions accounted for 22%, 37%, and 41% of the company's revenues, respectively.11
The company has historically been located on the Delaware and Raritan Canal in New Brunswick. The company considered moving its headquarters out of New Brunswick in the 1960s, but decided to stay in the town after city officials promised to gentrify downtown New Brunswick by demolishing old buildings and constructing new ones. While New Brunswick lost at least one historic edifice—the inn where Rutgers University began—to the redevelopment, the gentrification did attract people back to New Brunswick. Johnson & Johnson hired Henry N. Cobb from Pei Cobb Freed & Partners to design an addition to its headquarters, which took the form of a white tower in a park across the railroad tracks from the older portion of the headquarters. The stretch of Delaware and Raritan canal by the company's headquarters was replaced by a stretch of Route 18 in the late 1970s,12 after a lengthy dispute.13 In 2002, the company released its plan of setting up Asia-Pacific information technology headquarters in New South Wales within five years.14
Johnson & Johnson has set several positive goals to keep the company environmentally friendly and was ranked third among the United States's largest companies in Newsweek's "Green Rankings".15 Some examples are the reduction in water use, waste, and energy use and an increased level of transparency.16 Johnson & Johnson agreed to change its packaging of plastic bottles used in the manufacturing process, switching their packaging of liquids to non-polycarbonate containers.17 The corporation is working with the Climate Northwest Initiative and the EPA National Environmental Performance Track program.18 As a member of the national Green Power Partnership, Johnson & Johnson operates the largest solar power generator in Pennsylvania at its site in Spring House, PA.19
Johnson & Johnson is knowncitation needed for having registered many high profile internet domains during the early internet years 1996 to 2000. The Johnson & Johnson internet portfolio includes 29,925 internet domains, more than most of the large internet and technology companies. The portfolio includes generic expressions like Babypowder.com as well as a couple of very short domains; 2 of the 676 two letter domains, jj.com and ky.com, are owned by Johnson & Johnson.
On September 29, 1982, a "Tylenol scare" began when the first of seven individuals died in metropolitan Chicago, after ingesting Extra Strength Tylenol that had been deliberately laced with cyanide.20 Within a week, the company pulled 31 million bottles of capsules back from retailers, making it one of the first major recalls in American history.20 The incident led to reforms in the packaging of over-the-counter substances and to federal anti-tampering laws. The case remains unsolved and no suspects have been charged. Johnson & Johnson's quick response, including a nationwide recall, was widely praised by public relations experts and the media and was the gold standard for corporate crisis management.21
On April 30, 2010, McNeil Consumer Healthcare, a subsidiary of Johnson and Johnson, voluntarily recalled 43 over-the-counter children's medicines, including Tylenol, Tylenol Plus, Motrin, Zyrtec and Benadryl. The recall was conducted after a routine inspection at a manufacturing facility in Fort Washington, Pennsylvania, United States revealed that some "products may not fully meet the required manufacturing specifications".2223 Affected products may contain a "higher concentration of active ingredients" or exhibit other manufacturing defects.23 Products shipped to Canada, Dominican Republic, Guam, Guatemala, Jamaica, Puerto Rico, Panama, Trinidad and Tobago, the United Arab Emirates, Kuwait and Fiji were included in the recall.22 In a statement, Johnson & Johnson said "a comprehensive quality assessment across its manufacturing operations" was underway.2223 A dedicated website was established by the company listing affected products and other consumer information.23
On August 29, 2010, DePuy, a subsidiary of American giant Johnson & Johnson, recalled its ASR (articular surface replacement) hip prostheses from the market. DePuy said the recall was due to unpublished National Joint Registry data showing a 12% revision rate for resurfacing at five years and an ASR XL revision rate of 13%. All hip prostheses fail in some patients, but it is expected that the rate will be about 1% a year.24 Pathologically, the failing prosthesis had several effects. Metal debris from wear of the implant led to a reaction that destroyed the soft tissues surrounding the joint, leaving some patients with long term disability. Ions of cobalt and chromium—the metals from which the implant was made—were also released into the blood and cerebral spinal fluid in some patients.25
In March 2013, a jury in Los Angeles ordered Johnson & Johnson to pay more than $8.3 million in damages to a Montana man in the first of more than 10,000 lawsuits pending against the company in connection with the now-recalled DePuy hip.26
Some lawyers and industry analysts have estimated that the suits ultimately will cost Johnson & Johnson billions of dollars to resolve.26
In 2010 and 2011, Johnson & Johnson voluntarily recalled some over-the-counter products including Tylenol due to an odor caused by tribromoanisole.2728 In this case, 2,4,6-tribromophenol was used to treat wooden pallets on which product packaging materials were transported and stored.27
In 2010 a group of shareholders sued the Johnson and Johnson management board for allegedly failing to take action to prevent serious failings and illegalities since the 1990s, including manufacturing problems, bribing officials, covering up adverse effects and misleading marketing for unapproved uses. The judge initially dismissed the case in September 2011 based on the plaintiff's failure to meet the high standard of evidence required for finding liability on the part of corporate directors, but did so without prejudice, allowing the plaintiffs opportunity to refile at a later time. No opinion was issued regarding the merit of the plaintiff's allegations.29 In 2012 Johnson and Johnson proposed a settlement with the shareholders, whereby the company would institute new oversight quality and compliance procedures binding for five years.30
Juries in several US states have found J&J guilty of hiding what it knew about the adverse effects of its antipsychotic medication Risperdal (chemical name Risperidone), produced by its unit Janssen Pharmaceuticals, in order to promote it to doctors and patients as better than cheaper generics. Also, Risperdal is used to treat Schizophrenia, but J&J falsely marketed it to nursing home professionals and physicians for treating patients with dementia.31 States that have awarded damages include Texas ($158 million), South Carolina ($327 million), Louisiana ($258 million), and most notably Arkansas ($1.2 billion) – the Attorney General stated: “These two companies put profits before people, and they are rightfully being held responsible for their actions"; however the drug giant's share price barely dipped on the announcement.32
In addition, the United States Department of Justice has been investigating J&J's Risperdal sales practices since 2004, and in 2010 joined a whistleblowers suit against the company for illegally marketing Risperdal through Omnicare, the largest company supplying pharmaceutical drugs to nursing homes.3334 The allegations include that J&J were warned by the U.S. Food and Drug Administration (FDA) not to promote Risperdal as effective and safe for elderly patients, when in fact it is associated with early death, but they did so, in that they in fact bribed Omnicare pharmacists tens of millions of dollars to promote the drug to care home physicians for this unapproved use. A settlement has been provisionally agreed upon with J&J of around $2.2 billion, for this and related allegations with Omnicare, having already settled for around $100 million.35
Johnson and Johnson have also been subject to congressional investigations over secret payments and misleading ghost written articles given to leading psychiatrists promoting its products, notably Professor Joseph Biederman and his paediatric bipolar disorder research unit, which they privately stated was to “move forward the commercial goals of J.& J.” and "generate and disseminate data supporting the use of risperidone in” children and adolescents.36
Johnson & Johnson registered the Red Cross as a U.S. trademark for "medicinal and surgical plasters" in 1905 and has used the design since 1887.37 The Geneva Conventions, which reserved the Red Cross emblem for specific uses, were first approved in 1864 and ratified by the United States in 1882; however, the emblem was not protected by U.S. law for the use of the American Red Cross and the U.S. military until after Johnson & Johnson had obtained its trademark. A clause in this law (now 18 U.S.C. 706) permits pre-existing uses of the Red Cross, such as Johnson & Johnson's, to continue.
A declaration made by the U.S. upon its ratification of the 1949 Geneva Conventions includes a reservation that pre-1905 U.S. domestic uses of the Red Cross, such as Johnson & Johnson's, would remain lawful as long as the cross is not used on "aircraft, vessels, vehicles, buildings or other structures, or upon the ground," uses which could be confused with its military uses.38 This means that the U.S. did not agree to any interpretation of the 1949 Geneva Conventions that would overrule Johnson & Johnson's trademark. Even as it disputes a recent lawsuit by Johnson & Johnson, the American Red Cross continues to recognize the validity of Johnson & Johnson's trademark.39
In August 2007, Johnson & Johnson filed a lawsuit against the American Red Cross (ARC), demanding that the charity halt the use of the red cross symbol on products it sells to the public, though the company takes no issue with the charity's use of the mark for non-profit purposes.40 In May 2008, the judge in the case dismissed most of Johnson & Johnson's claims, and a month later the two organizations announced a settlement had been reached in which both parties would continue to use the symbol.41
Beginning in 2003, Johnson & Johnson and Boston Scientific have been involved in a series of litigations involving patents covering heart stent medical devices. Both parties claimed that the other had infringed upon their patents. The litigation was settled once Boston Scientific agreed to pay $716 million to Johnson & Johnson in September 2009 and an additional $1.73 billion in February 2010.42
In 2007, Johnson & Johnson sued Abbott Laboratories over the development and sale of the arthritis drug Humira. Johnson & Johnson claimed that Abbott used technology patented by New York University and licensed exclusively to Johnson & Johnson's Centocor division to develop Humira. Johnson & Johnson won the court case, and in 2009 Abbott was ordered to pay Johnson & Johnson $1.17 billion in lost revenues and $504 million in royalties.43 The judge also added $175.6 million in interest to bring the total to $1.84 billion.44 This was the largest patent-infringement award in U.S. history43 until the 2013 decision against Teva in favor of Takeda and Pfizer for over 2.1 billion dollars.45
Johnson & Johnson is a highly diversified company with at least 230 subsidiaries, which it refers to as the "Johnson & Johnson Family of Companies". Some of these subsidiaries include as follows:
- Advanced Sterilization Products
- ALZA Corporation
- ANIMAS Corporation
- BabyCenter, L.L.C.
- Biosense Webster, Inc.
- Centocor Ortho Biotech, Inc.
- Children With Diabetes, Inc.
- Codman & Shurtleff, Inc.
- Cordis Corporation
- Crucell nv
- DePuy, Inc.
- Ethicon Endo-Surgery, Inc.
- Ethicon, Inc.
- Global Pharmaceutical Supply Group (GPSG)
- Independence Technology, LLC
- Information Technology Services
- Janssen Pharmaceutica
- Janssen Pharmaceutica Products, L.P.
- Johnson & Johnson, Group of Consumer Companies, Inc.
- Johnson & Johnson Health Care Systems Inc.
- Johnson & Johnson – Merck Consumer Pharmaceuticals Co.
- Johnson & Johnson Pharmaceutical Research & Development, L.L.C.
- Johnson & Johnson Pharmaceutical Services, L.L.C.
- LifeScan, Inc.
- McNeil Consumer Healthcare
- McNeil Nutritionals
- Mentor Worldwide, L.L.C.
- Noramco, Inc.
- Ortho-Clinical Diagnostics, Inc. OCD
- Ortho-McNeil Pharmaceutical
- Ortho-Neutrogena (a merge of Neutrogena and Ortho Dermatological)
- Personal Products Company
- Pharmaceutical Group Strategic Marketing (PGSM)
- Peninsula Pharmaceuticals, Inc.
- PriCara, Inc.
- Scios Inc.
- Tasmanian Alkaloids
- Transform Pharmaceuticals, Inc.
- Veridex, LLC
- Bebe47 (German market moisturisers and cosmetic products available in all German speaking countries).
- Clean & Clear
- Coach Professional
- Coach Sport
- Corn Huskers Lotion
- Healthy Woman
- Johnson's Baby (baby shampoo)
- Johnson & Johnson Red Cross
- Motrin Children
- Piz Buin
- Pepcid AC
- Rembrandt toothpaste
- Simply Sleep
- Tucks Pads
- Tylenol Baby
- Tylenol Children
- Zodiac – Historic schooner built for the Johnson family heirs.
- Frederick Barnett Kilmer – Director of Scientific Laboratories from 1889 to 1934.
- JOHNSON & JOHNSON Form 10-K, Securities and Exchange Commission, February 21, 2014
- "JOHNSON & JOHNSON 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 21, 2014.
- Harris Interactive press release, "Johnson & Johnson Ranks No. 1 in National Corporate Reputation Survey for Seventh Consecutive Year," December 7, 2005.
- The Market's Finest, by Michael Santoli, Barron's Magazine, September 2008
- "Johnson & Johnson Reports 2011 Fourth-Quarter and Full-Year Results | Johnson & Johnson". Jnj.com. 2012-01-24. Retrieved 2014-01-18.
- "FDA Approves 1st New Tuberculosis Drug in 40 Years". ABC News. Retrieved 31 December 2012.
- Horner, Shirley (February 15, 1987). "About Books". The New York Times. Retrieved May 7, 2010.
- Conniff, Richard. The Natural History of the Rich: A Field Guide. W. W. Norton. p. 126.
- Crazier then You and Me. New York Magazine. February 23, 1987. p. 129.
- Johnson & Johnson investor website – Board of Directors
- 2 Long-Disputed Projects to Begin, The New York Times, July 9, 1977
- Old Raritan Canal Lock Is Focus of a Classic Dispute, The New York Times, April 16, 1977.
- "JOHNSON & JOHNSON ASIA-PACIFIC INFORMATION TECHNOLOGY HEADQUARTERS". Mar 14, 2002. Retrieved Jul 15, 2013.
- Green Rankings
- "Johnson & Johnson Official Site". Retrieved May 4, 2008.
- Environment New Service, December 8, 2004. Retrieved May 4, 2008
- "Coop America". March 27, 2008. Retrieved May 4, 2008.
- "Department of Environmental Protection". Commonwealth of Pennsylvania.
- Judith Rehak (March 23, 2002). "Tylenol made a hero of Johnson & Johnson : The recall that started them all". The New York Times.
- Toyota, what's so hard about doing the right thing?, Los Angeles Times, February 11, 2010
- "US firm recalls children's drugs". Aljazeera. May 1, 2010. Retrieved May 3, 2010.
- Watts, Alex (May 2, 2010). "Warning As Baby Medicines Are Recalled". Sky News. Retrieved May 3, 2010.
- Deborah Cohen (May 14, 2011). "Out of joint: The story of the ASR".
- "FDA. Concerns about metal-on-metal hip implant systems. 2011". 2011.
- Meier, Barry (8 March 2013). "J.&J. Loses First Case Over Faulty Hip Implant". New York Times. Retrieved 4 September 2013.
- Tylenol Recall Expands, WebMD Health News, January 18, 2010
- McNeil Consumer Healthcare Announces Voluntary Recall Of One Product Lot Of TYLENOL® Extra Strength Caplets 225 Count Distributed In The U.S.
- 10-cv-2033, D. NJ., Sept. 29, 2011
- J&J, shareholders reach tentative deal in lawsuit By LINDA A. JOHNSON AP Business Writer / July 12, 2012
- Gregory Wallace (November 4, 2013). "Johnson & Johnson to pay $2 billion for false marketing". CNN Money. Retrieved 6 November 2013.
- J.&J. Fined $1.2 Billion in Drug Case NY Times, By KATIE THOMAS Published: April 11, 2012
- Hilzenrath, David S. (January 16, 2010). "Justice suit accuses Johnson & Johnson of paying kickbacks". The Washington Post. Retrieved January 17, 2010.
- Singer, Natasha (January 15, 2010). "Johnson & Johnson Accused of Drug Kickbacks". The New York Times. Retrieved January 17, 2010.
- J&J Said to Agree to $2.2 Billion Drug Marketing Accord Bloomberg News. By Margaret Cronin Fisk, Jef Feeley & David Voreacos – Jun 11, 2012
- Research Center Tied to Drug Company By Gardiner Harris, The New York Times, 2008
- USPTO record for Red Cross trademark
- U.S. reservations to the 1949 Geneva Conventions (International Committee of the Red Cross website)
- American Red Cross Defends Use of Emblem and Mission (American Red Cross press release, August 10, 2007)
- "Red Cross Is Sued by J&J Over Signature Emblem" The Wall Street Journal August 9, 2007
- Stephanie Saul (June 18, 2008). "Claim Over Red Cross Symbol Is Settled". The New York Times.
- Boston Scientific to Pay J&J $1.73B to Settle Stent Patent Disputes, The Wall Street Journal, February 2, 2010
- Abbott Told to Pay Record $1.67 billion Award to J&J, Bloomberg News, June 29, 2009
- Abbott Challenges $1.67 billion Patent Loss to J&J Over Humira, Bloomberg News, November 2, 2010
- Pfizer, Takeda to Get $2.15 Billion Settlement, WSJ, 6 12 2013
- , Business Week, February 23, 2011
- "Bebe Website". Johnson & Johnson GmbH. Retrieved 15 February 2014.
- "New Meds Tampons Make You Feel Only a Little More Secure. But That's a Lot." (PDF). News Record (Cincinnati, Ohio: University of Cincinnati). April 22, 1968. p. 2, center-left. Retrieved 2011-11-25.
- Johnson & Johnson Corporate Homepage
- Johnson & Johnson ties to RWJF
- &you (Johnson & Johnson philanthropic widget site)
- Johnson & Johnson India Homepage
- Johnson & Johnson Middle East Homepage
- Johnson & Johnson Campaign for Nursing's Future Homepage
- Yahoo!, Sector; Healthcare, Industry; Major Drugs, market cap ranking (trailing Pfizer at 200.5B on March 12, 2006)
- Johnson and Johnson Company Profile at MarketWatch.
- Johnson&Johnson funds Clarimedix