J&J Earnings Drag as Regulatory Problems Accumulate

Life sciences giant Johnson & Johnson (J&J) managed to increase first quarter profits by 12.5% despite a decrease in revenue of 0.2%, the company said in a statement.

But the company's profits were sorely depressed by a series of regulatory issues, including recalls, shortages and legal battles, reports The Associated Press.

Among J&J's many issues during Q1:

The US Department of Justice rejected a settlement between the company and the US government over allegations of improper marketing of its antipsychotic drug Risperdal. That settlement would have seen J&J pay $1 billion, but reports say federal prosecutors are seeking an addition $800 million in damages.
J&J was found to be liable for improper marketing in Arkansas-also over its drug Risperdal-and fined $1.2 billion dollars. That case is being appealed by J&J.
A report by The New York Times claimed J&J quietly jettisoned its metal-on-metal hip implant products after safety concerns were raised.
A Bloomberg report claimed J&J sold unapproved medical devices for years prior to approval by the US Food and Drug Administration (FDA).
A firestorm of publicity erupted over J&J outgoing CEO Bill Weldon retiring to a $143 million deferred compensation package.
The European Medicines Agency (EMA) issued recalls for many products manufactured at J&J subsidiary Ben Venue's Ohio manufacturing site.
Several high-profile recalls of J&J consumer products, including Tylenol and Simply Sleep, continued to keep popular and high-grossing products off store shelves.

J&J's problems don't seem to be abating, either. Australian and New Zealand regulators announced 16 April they were recalling the company's MITCH TRH hip components manufactured by subsidiary Finsbury Orthapedics unit. The same product was recalled by UK regulators earlier in April as well.

Bloomberg noted the company is revising profit forecasts for the year upward as increased demand for new medicines were exceeding expectations, easing some of that pressure on the company.

Yahoo! Finance - J&J 1Q profit jumps 12.5 pct. despite sales dip

Med City News - Johnson & Johnson's Q1 performance paints a mixed picture

Forbes - Johnson & Johnson's Q1 Malady: Manufacturing, Drug Shortage Push U.S. Sales Down 5.1%

Bloomberg - J&J Raises Forecast as Profit Climbs on Demand for Drugs

Regulatory Focus - J&J Faces Larger Fine as DOJ Rejects $1B Risperdal Settlement

Regulatory Focus - Arkansas Slams J&J With $1.2 Billion Fine for Risperdal Marketing Tactics

Regulatory Focus - NYTimes: J&J Privately Jettisoned Hip Implant Line After FDA Raised Questions

Regulatory Focus - Bloomberg: J&J Sold Unapproved Medical Device for Years Prior to Approval

Regulatory Focus - After String of Quality Issues, J&J CEO Weldon Retires to $143M

Biopharm International - EMA Addresses Ben Venue Quality Issues

New York Times - Popular J.&J. Drugs May Not Return Until 2013

Fierce Medical Devices - Australia, New Zealand, recall J&J hip implant components