The product recall saga continues at Johnson & Johnson (JNJ) with the company announcing that it is voluntary recalling certain lots of its schizophrenia product, Invega Sustenna (234 mg). The company said that the recall is being conducted with the knowledge of the US Food and Drug Administration (FDA).
The recall was announced after cracks were detected in some of the pre-filled syringes of the 234 mg strength. The company said that the voluntary recall would impact most of the available inventory. Johnson & Johnson expects to resume supply in early March – full supply should be available from April. The company also recalled certain lots of Simponi.
Earlier this year, Johnson & Johnson had recalled certain lots of Tylenol 8 Hour, Tylenol Arthritis Pain, Tylenol upper respiratory products, Benadryl, Sudafed Pe and Sinutab in the US, the Caribbean and Brazil. The recalled products were manufactured at the company’s plant in Fort Washington before production was suspended at the plant.
The company also recalled certain lots of Rolaids Multi-Symptom Berry Tablets in the US for label updation.
Product recalls have been plaguing Johnson & Johnson for the past several quarters. The back-to-back product recalls adversely affected sales of Johnson & Johnson’s Consumer Healthcare segment in 2010. In fact, Consumer segment sales declined 7.7% in 2010 to $14.6 billion with over-the-counter (OTC)/nutritional sales declining 19.2%.
Neutral on Johnson & Johnson
We currently have a Neutral recommendation on Johnson & Johnson. We believe Johnson & Johnson’s diversified business model, lack of cyclicality and strong financial position are helping it pave its way through tough situations.
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