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July 19, 2011

Johnson & Johnson’s Sales Fall After Drug Recalls

Johnson & Johnson's profits have fallen by 20% due to litigation costs related to recalls, the company said in a statement yesterday. Net income and diluted earnings per share for the second quarter were $2.8bn and $1, compared to $3.5 billion and $1.28 in the same period last year.

By cms admin

Johnson & Johnson’s profits have fallen by 20% due to litigation costs related to recalls, the company said in a statement yesterday.

Net income and diluted earnings per share for the second quarter were $2.8bn and $1, compared to $3.5 billion and $1.28 in the same period last year.

Johnson & Johnson said that the fall in profits represented the impact of expenses related to DePuy ASR hip recall costs and an after-tax charge of $549m, following the previously announced plans to close its drug-coated stent business and focus on the cardiovascular market.

This year, the company also recalled drug brands such as Tylenol, advertised for relieving pain; Benadryl, an allergy medicine marketed by Pfizer; and Motrin (ibuprofen), due to complaints of a musty smell which is suspected to be caused by the contamination of the packaging with the chemical 2,4,6-tribromoanisole.

Sales for the second quarter of 2011 reached $16.6bn, an increase of 8.3% on last year’s results, and operational results jumped 2.6%.

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