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Johnson and Johnson

Johnson and Johnson

Tagline

For all you love

Net Worth

$420,190,000,000

Started in (City)

New Brunswick

Started in (Country)

United States of America

Incorporation Date

01st December, 1886

Bankruptcy Date

-

Founders

  • James Wood Johnson
  • Edward Mead Johnson
  • Robert Wood Johnson I

About

Johnson and Johnson is a Medical device company and also a pharmaceutical company. The company also provides consumer healthcare. Johnson and Johnson ranked no. 37 in 2018 Fortune 500 and it the world’s most valuable company. The company is widely known for baby products especially baby oils. Today Johnson & Johnson involves 14 subsidiaries acquired from over 135 years. The company’s revenue is $82.06 billion and has an operating income of $17.33 billion. The company’s net income is $15.120 billion.

Beginning

Johnson and Johnson started back in 1886 when pharmacist Robert Wood Johnson was inspired by an antiseptic advocate Joseph Lister, who then proposed a theory that air-borne germs are the reason for infection in the operation room which results in a high number of deaths due to infection. Robert Wood Johnson joined his brothers James Wood Johnson and Edward Mead Johnson and begin to produce surgical dresses and then the company was incorporated in 1887. Robert Wood Johnson was the first president of the company and later was succeeded by his brother James Wood Johnson. In 1888, the company developed a book, “Modern Methods of Antiseptic Wound Treatment” a guide to self-treating injuries involving the help of a First-aid kit. The First-aid kit was later popular among industrial workers and consumers.

Road to Success

-In 1894, Johnson & Johnson produced a baby product that includes Baby powder which can be even now. Johnson & Johnson later produced the world’s first cheap sanitary pads for women. The company also started to produce common health care products and developed dental floss. Johnson & Johnson continued the production of baby oil adding more products such as baby shampoo and powder. The company created surgical sutures and sterilized plaster for post-treatment wounds which were inexpensive and antiseptic. In 1921, Johnson & Johnson produce Band-Aid in addition to its previous product First-Aid kit. -In 1931, Johnson & Johnson produced Ortho-Gynol, a contraceptive. -In 1932, James Wood Johnson was succeeded by his brother’s son Robert Wood Johnson II. Johnson & Johnson produced consumer health care products and also hospital materials. Robert II after becoming the president decided to created subsidiaries of Johnson & Johnson into various areas keeping Johnson & Johnson the central corporation. -In 1943, Robert Wood Johnson created The Credo, a guide used for taking the company’s decision. Later in the year 1944, Johnson & Johnson created its IPO and became a public company. -In 1959, Johnson & Johnson acquired McNeil Laboratories. McNeil Laboratories was founded by Robert Lincoln McNeil as a part of McNeil Consumer Healthcare. After acquired by Johnson & Johnson, the company produced Tylenol which can be used without prescription. -In 1947, Johnson & Johnson acquired a company founded by George F. Merson and renamed Ethicon Suture Laboratories and in 1953 it was again renamed Ethicon Inc. Mentor Corporation was acquired by Johnson & Johnson and merge under Ethicon. -In 1998, DePuy was acquired by Johnson & Johnson. DePuy forms a part of Johnson’s Medical Devices group. Later in June 2012, Johnson & Johnson acquired Synthes, which was merged with DePuy and formed DePuy Synthes. DePuy Orthopaedics, Inc. a division of DePuy Synthes acquired a bone fixation company called Biomedical Enterprises, Inc. -In 1999, Johnson & Johnson acquired Centocor Biotech now known as Janssen Biotech as a subsidiary. -In 2012, Johnson & Johnson’s china corporation acquired Guangzhou Bioseal Biotechnology, a blood clotting developer company. Ethicon acquired NeuWave Medical in 2016 and Megadyne Medical Products in 2017. Ethicon also acquired Torax Medical, a medical device manufacturing company.

Challenges

It was alleged that the company failed to warn patients about the risk of using their products. They are aware of the risks a long time ago but still went ahead and made the product available. Johnson and Johnson have recalled many types of drugs since a major recall in 1982 and being sued for its product’s safety problems over several years. These activities can have enormous and overwhelming effects on the company profits, for instance, the share price and brand perception will be negatively impacted. The company also have to pay several costs involving the cost of investigating, retrieval and destroy flawed products which are significant, while future costs involve lost revenue and the felt of market share. Manufacturers also face consumer litigation and brand reputation will be damaged which negatively affect business. At worst, it can lead to a company closing down to prevent further loss. Until today, the company has been forced to paid nearly a billion dollars for the cases against it and face many of the fines and consequences that have emerged as a result of the problem.

Failures

J&J has been facing several product safety issues for several years now. The earliest issue dates back to 1982, where a large recall had been made when the first seven individuals died after using one of their products. In later years, product safety issues continued to exist where litigation cases had been faced by this company regarding their products. The issues are such as children product issues (2010), hip-replacement recall (2010), Tylenol recall (2010), and so on. One of the major issues facing the company today is its baby powder issues. This company had been sued several times for their baby powder issues because of causing cancer. The first case happened during 2016, where J&J was ordered by the court to pay damages to a woman who died of ovarian cancer after using the baby powders. Though, this issue doesn’t end here. In December last year, 11700 people suing J&J for cancer caused by baby powder. They are accused of using asbestos (a harmful chemical) which causes a number of tumors, including lung, larynx, and ovarian cancer. The company was forced to share thousands of notes and internal reports with lawyers.

Achievements

  • Johnson & Johnson Philippines was awarded the 1992 Asian Management Award

Subsidies

  • Janssen Pharmaceutica
  • SurgRx
  • Johnson & Johnson Pte. Ltd.
  • Johnson & Johnson Services, Inc
  • Momenta Pharmaceuticals, Inc.
  • AMO Sales and Service, Inc
  • Neutrogena

CEOs

  • Gen. Robert Wood Johnson
  • Philip B. Hoffmann
  • Alex Gorsky