It’s another sign just how much J&J is fallen – a second Congressional summons for J&J CEO William Weldon. Good old Billy Weldon bagged out last time by scheduling an elective surgery. This time around, Congress has made it known that individuals with disabilities will be accommodated. In other words, Weldon can’t get out of this a second time. So, it’ll be interesting to see if Weldon shows up on June 30, or whether J&J will continue to give the big middle finger to Congressional oversight.
From my perspective, I think there’s a 0% chance of Billyboy Weldon showing up on June 30th. However, I think there’s a better than average chance of Weldon actually showing up at some point this summer – if he manages to remain CEO.
Meanwhile, J&J has announced that it won’t be returning to manufacturing anytime soon. The company has announced that it won’t begin manufacturing at the Fort Washington facility this year – forgoing about $700 million in revenue. UBS slashed its earnings estimates for J&J through 2010 and 2011 based in part to McNeil’s woes as well as credibility concerns with J&J’s products.
J&J will not provide a timetable for returning the Fort Washington facility to normal production. The good news for J&J is that they’ve got two weeks to figure it out – final assessments are due to the FDA on July 15. Meanwhile, J&J’s McNeil unit has made token steps which include sacking some low level managers and hiring an outside firm to monitor the company. (Of course, the last time J&J hired an “outside consulting firm” it was to conduct its infamous Phantom Recall.)
J&J’s plans pertain only to the Fort Washington facility and does not address similar manufacturing failures at other J&J facilities.
And, if it couldn’t get bad enough, CNNMoney is reporting that J&J’s serious manufacturing woes date back seven years – to 2003.
Monday, June 28, 2010
Wednesday, June 16, 2010
J&J Expands Recall; Employees Devastated
Yesterday, Johnson & Johnson (J&J) added five more products to its January 2010 recall. It’s not so much that J&J added five products to the January recall (which was recall #5), as J&J is really announcing a 6th recall. Compared to the massive McNeil Consumer Healthcare recalls of the last two years, yesterday’s J&J recall was relatively small.
What’s striking is the reason – the products, including Benadryl and Extra Strength Tylenol – were supposed to be recalled back in January as well, but the company screwed up. Or, in the words of J&J, the products were “inadvertently omitted from the initial recall.” By recall, J&J meant recall #4 (January 2010) and recall #5 (April 2010), not the original recall back at the end of 2008 – when this whole mess began. The reason for the recall is that the batches were contaminated with 2,4,6-tribromoanisole – an industrial chemical used to treat wood products (like shipping pallets).
Perhaps, most interesting, today’s products were not made at the Fort Washington plant, where the other products were manufactured. Instead, they were made at the company’s Puerto Rico facility. This is really quite troubling because it shows systematic failures in J&J’s manufacturing across the entire company. Given that the manufacturing woes are not confined to a single J&J plant, there’s no reason to believe that the problems are confined only to McNeil Consumer Healthcare products.
Meanwhile, on Tuesday, I met with a handful of acquaintances from J&J to hear their tales of woe from inside the company. I had lunch in New Brunswick and then traveled down to Plymouth Meeting, near the Fort Washington facility. As you might imagine, employees are devastated at what has happened to their company. A few of them feel like the company is being viciously attacked and unfairly portrayed in the media. However, most feel that William Weldon has led the company from the most respected into the industry to one that is almost completely distrusted. I feel bad for those decent and honest J&J employees. How sad is it to put your trust into something and build a career someplace, only to have it destroyed through executive greed?
Evidently the City of New Brunswick and the folks at New Jersey Transit are also concerned about employee morale at J&J – NJ Transit has put up suicide prevention posters in the New Brunswick train station across from J&J (pictured below).
What’s striking is the reason – the products, including Benadryl and Extra Strength Tylenol – were supposed to be recalled back in January as well, but the company screwed up. Or, in the words of J&J, the products were “inadvertently omitted from the initial recall.” By recall, J&J meant recall #4 (January 2010) and recall #5 (April 2010), not the original recall back at the end of 2008 – when this whole mess began. The reason for the recall is that the batches were contaminated with 2,4,6-tribromoanisole – an industrial chemical used to treat wood products (like shipping pallets).
Perhaps, most interesting, today’s products were not made at the Fort Washington plant, where the other products were manufactured. Instead, they were made at the company’s Puerto Rico facility. This is really quite troubling because it shows systematic failures in J&J’s manufacturing across the entire company. Given that the manufacturing woes are not confined to a single J&J plant, there’s no reason to believe that the problems are confined only to McNeil Consumer Healthcare products.
Meanwhile, on Tuesday, I met with a handful of acquaintances from J&J to hear their tales of woe from inside the company. I had lunch in New Brunswick and then traveled down to Plymouth Meeting, near the Fort Washington facility. As you might imagine, employees are devastated at what has happened to their company. A few of them feel like the company is being viciously attacked and unfairly portrayed in the media. However, most feel that William Weldon has led the company from the most respected into the industry to one that is almost completely distrusted. I feel bad for those decent and honest J&J employees. How sad is it to put your trust into something and build a career someplace, only to have it destroyed through executive greed?
Evidently the City of New Brunswick and the folks at New Jersey Transit are also concerned about employee morale at J&J – NJ Transit has put up suicide prevention posters in the New Brunswick train station across from J&J (pictured below).
Sunday, June 13, 2010
J&J to Congress – F’ Off
Johnson & Johnson – what once stood for quality and integrity now stands for inferior quality and gross lapses in judgment (and some argue, criminal activity).
Last week was a bit of a nightmare for the company that can’t seem to get out of its own way. "Epic PR disaster" doesn't even begin to explain J&J's handling of this whole situation. First, the company failed to comply with a Congressional request to turn over all documents related to its handling of the last five product recalls of its OTC products (including the “Phantom Recall”). In response to negative media attention, the company was decidedly less transparent – telling Congress and the American people to, essentially, F’ Off.
J&J likes to claim it is social responsibility and engages in ethical behavior, but its actions are strikingly otherwise. In response to the company clamming up, leaked documents show that, not only did J&J management know about the “Phantom Recall,” but was part of the planning. Oops. So the question is – did J&J scapegoat Colleen Goggins knowingly lie about J&J’s involvement when she testified before Congress? My guess is that Goggins answered the question honestly – she didn’t know about it…and that’s why J&J sent her. However, I bet Mr. William Weldon did know about and, in fact, authorized the Phantom Recall and that’s why his elective surgery was conveniently scheduled to coincide with the Congressional summons.
When FDA inspectors (namely Neisa Alonso) questioned the company on its actions, J&J deceived the agency. The agency pressed the company to conduct a full recall, something the company ultimately did after many, many, many months and countless children ingesting the contaminated products.
Meanwhile, consumers are fed up with the J&J’s coupon scheme. Parents who purchased McNeil products and gave them to their poor children are eligible for refund coupons good for the purchase of more J&J products (at whatever point in the time the company is allowed to manufacture products again). That’s good for J&J, but what if a parent doesn’t what to give their child more products from a suspect source? It’s a scary prospect for parents – giving your kids products that have consistently been manufactured poorly and contaminated for so many years. Why trust J&J again? Rightly so, parents are now suing for full cash refunds.
Meanwhile, still radio silence for J&J’s embattled CEO, William Weldon, who continues to recover from his elective surgery. J&J’s official communication channels (the blog JNJBTW, Twitter, YouTube, etc.) are all pretending nothing has happened. Once again, it seems J&J is relying on a legal strategy, rather than acting with integrity.
I’ll ask it again – What Credo?
Last week was a bit of a nightmare for the company that can’t seem to get out of its own way. "Epic PR disaster" doesn't even begin to explain J&J's handling of this whole situation. First, the company failed to comply with a Congressional request to turn over all documents related to its handling of the last five product recalls of its OTC products (including the “Phantom Recall”). In response to negative media attention, the company was decidedly less transparent – telling Congress and the American people to, essentially, F’ Off.
J&J likes to claim it is social responsibility and engages in ethical behavior, but its actions are strikingly otherwise. In response to the company clamming up, leaked documents show that, not only did J&J management know about the “Phantom Recall,” but was part of the planning. Oops. So the question is – did J&J scapegoat Colleen Goggins knowingly lie about J&J’s involvement when she testified before Congress? My guess is that Goggins answered the question honestly – she didn’t know about it…and that’s why J&J sent her. However, I bet Mr. William Weldon did know about and, in fact, authorized the Phantom Recall and that’s why his elective surgery was conveniently scheduled to coincide with the Congressional summons.
When FDA inspectors (namely Neisa Alonso) questioned the company on its actions, J&J deceived the agency. The agency pressed the company to conduct a full recall, something the company ultimately did after many, many, many months and countless children ingesting the contaminated products.
Meanwhile, consumers are fed up with the J&J’s coupon scheme. Parents who purchased McNeil products and gave them to their poor children are eligible for refund coupons good for the purchase of more J&J products (at whatever point in the time the company is allowed to manufacture products again). That’s good for J&J, but what if a parent doesn’t what to give their child more products from a suspect source? It’s a scary prospect for parents – giving your kids products that have consistently been manufactured poorly and contaminated for so many years. Why trust J&J again? Rightly so, parents are now suing for full cash refunds.
Meanwhile, still radio silence for J&J’s embattled CEO, William Weldon, who continues to recover from his elective surgery. J&J’s official communication channels (the blog JNJBTW, Twitter, YouTube, etc.) are all pretending nothing has happened. Once again, it seems J&J is relying on a legal strategy, rather than acting with integrity.
I’ll ask it again – What Credo?
Wednesday, June 9, 2010
Allscripts Snatches Up Eclipsys
Health IT is where the money is at. And that’s where the deals where on Wall Street today. Allscripts has agreed to purchase Eclipsys for $1.3 billion in an all-equity deal. This is a game changer in the health IT industry where major companies like GE, McKesson, Cerner and EPIC have carved deep territories.
Allscripts office-based IT platform will be a perfect complement to Eclipsys’ hospital IT business. The company is making a major move for its share in the nearly $30 billion derby for federal stimulus dollars. Whether it will be a match made in heaven still remains to be seen.
Eclipsys shareholders will receive 1.2 shares of Allscripts common stock.
Allscripts office-based IT platform will be a perfect complement to Eclipsys’ hospital IT business. The company is making a major move for its share in the nearly $30 billion derby for federal stimulus dollars. Whether it will be a match made in heaven still remains to be seen.
Eclipsys shareholders will receive 1.2 shares of Allscripts common stock.
Tuesday, June 8, 2010
J&J tells Congress Where to Stick It
One way to manage a crisis is to engage in openness, transparency and swallow your pride. Then there’s the Johnson & Johnson approach.
After appearing before Congress, legislators requested numerous documents from J&J relating to its “Phantom Recall” – buying its own drugs off the shelves using contractors, telling them to lie about the reason and not reporting product defects to the FDA.
Well, the other shoe has dropped. J&J has refused to turn over all documents requested to Congress. J&J turned over some documents, but not everything.
This doesn’t seem to be a winning strategy for Johnson & Johnson.
Meanwhile, J&J’s CEO Bill Weldon is still in hiding recovering from his “surgery” (be it a real liposuction or a convenient cover story). I’ve said it before, but if he isn’t dead, J&J needs to be parading him out in his hospital gown. Actually, J&J is probably wishing William Weldon is dead so they could bury all the problems of the last few years along with him.
Ref: Wall Street Journal
After appearing before Congress, legislators requested numerous documents from J&J relating to its “Phantom Recall” – buying its own drugs off the shelves using contractors, telling them to lie about the reason and not reporting product defects to the FDA.
Well, the other shoe has dropped. J&J has refused to turn over all documents requested to Congress. J&J turned over some documents, but not everything.
This doesn’t seem to be a winning strategy for Johnson & Johnson.
Meanwhile, J&J’s CEO Bill Weldon is still in hiding recovering from his “surgery” (be it a real liposuction or a convenient cover story). I’ve said it before, but if he isn’t dead, J&J needs to be parading him out in his hospital gown. Actually, J&J is probably wishing William Weldon is dead so they could bury all the problems of the last few years along with him.
Ref: Wall Street Journal
Thursday, June 3, 2010
Amgen’s Prolia Scores Again
Amgen scored a second approval for Prolia (denosumab) for the treatment of osteoporosis just days after its first. Last week, Prolia was approved in the European Union. Now, Prolia has received approval from the FDA.
Meanwhile, Amgen is ramping up promotion efforts in anticipation of a launch. The company is hiring and deploying nearly 1,000 additional sales reps to detail the drug.
Meanwhile, Amgen is ramping up promotion efforts in anticipation of a launch. The company is hiring and deploying nearly 1,000 additional sales reps to detail the drug.
Checking in on Peter Rost
So it’s been a good long while since I last checked in on Peter Rost. Rumors of his demise were premature and I’m happy to report that the Petey is still alive and well.
Over the weekend, in Time Magazine, he opined on grand conspiracy theories where the Government and pharmaceutical companies all conspire to break the law. It’s an interesting theory and is right up there with theories that President Obama actually caused the BP oil spill. But just because it’s an interesting theory doesn’t mean it has any basis in reality.
Peter Rost has been awfully quiet since I last checked in on him – a far cry from the daily spam messages begging me to write about his book. So, for old times sake, here’s another Peter Rost Book Sales Update: Killer Drug has fallen to #1,122,636 on the Amazon bestseller list (compared to #763,413 at last check-in on October 13, 2007).
Fun times...
Over the weekend, in Time Magazine, he opined on grand conspiracy theories where the Government and pharmaceutical companies all conspire to break the law. It’s an interesting theory and is right up there with theories that President Obama actually caused the BP oil spill. But just because it’s an interesting theory doesn’t mean it has any basis in reality.
Peter Rost has been awfully quiet since I last checked in on him – a far cry from the daily spam messages begging me to write about his book. So, for old times sake, here’s another Peter Rost Book Sales Update: Killer Drug has fallen to #1,122,636 on the Amazon bestseller list (compared to #763,413 at last check-in on October 13, 2007).
Fun times...
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