Johnson & Johnson
||This article may be unbalanced towards certain viewpoints. (March 2014)|
J&J headquarters at One Johnson & Johnson Plaza in New Brunswick, New Jersey
|Founded||New Brunswick, New Jersey, United States (1886 )|
|Headquarters||One Johnson & Johnson Plaza, New Brunswick, New Jersey, United States|
|Alex Gorsky (Chairman and CEO)|
|Products||See list of Johnson & Johnson products|
|Revenue||$74.331 billion (2014)|
|$20.563 billion (2014)|
|$$16.323 billion (2014)|
|Total assets||$$131.119 billion (2014)|
|Total equity||$$69.752 billion (2014)|
Number of employees
Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.
Johnson & Johnson is headquartered in New Brunswick, New Jersey with the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $65 billion for the calendar year of 2011.
Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
On December 31, 2012, the Food and Drug Administration approved Sirturo (bedaquiline), a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the infection in more than forty years.
- 1 History
- 2 Products
- 3 Corporate governance
- 4 Diversification
- 5 JNJ Headquarters and the New Brunswick gentrification
- 6 Environmental record
- 7 Recalls
- 8 Litigation
- 9 Subsidiary holdings
- 10 Products
- 11 See also
- 12 References
- 13 External links
Inspired by a speech by antiseptic advocate Joseph Lister, Robert Wood Johnson joined his brothers James Wood Johnson and Edward Mead Johnson to create a line of ready-to-use surgical dressings in 1885. The company produced its first products in 1886 and incorporated in 1887.
Robert Wood Johnson served as the first president of the company. He worked to improve sanitation practices in the nineteenth century, and lent his name to a hospital in New Brunswick, New Jersey. Upon his death in 1910, he was succeeded in the presidency by his brother James Wood Johnson until 1932, and then by his son, Robert Wood Johnson II.
Robert Wood Johnson's granddaughter, Mary Lea Johnson Richards, was the first baby to appear on a Johnson & Johnson baby powder label. His great-grandson, Jamie Johnson, made a documentary called Born Rich about the experience of growing up as the heir to one of the world's greatest fortunes.
- Robert Wood Johnson I (1887–1910)
- James Wood Johnson (1910–1932)
- Robert Wood Johnson II (1932–1963)
- Philip B. Hofmann (1963–1973)
- Richard B. Sellars (1973–1976)
- James E. Burke (1976–1989)
- Ralph S. Larsen (1989–2002)
- William C. Weldon (2002–2012)
- Alex Gorsky (2012–present)
The company's business is divided into three major segments, Pharmaceuticals, Medical Devices and Diagnostics, and Consumer Products. In 2013, these segments contributed 39%, 40%, and 21% of the company's total revenues.
The company's major franchises in the Pharmaceutical segment include Immunology, Neuroscience, Infectious Disease, and Oncology.
Immunology products include the anti-tumor necrosis factor antibodies Remicade (infliximab), and Simponi (golimumab) used for the treatment of autoimmune diseases, including rheumatoid arthritis, Crohn's disease (Remicade only), ulcerative colitis, ankylosing spondylitis, and other disorders. In 2013, these two products accounted for 29% of Johnson and Johnson's pharmaceutical revenues, and 11.3% of the company's total revenues. A third immunology product, Stelara (ustekinumab), targets interleukin-12 and interleukin-23 and is used for the treatment of psoriasis.
Key infectious diseases products include Incivio (telaprevir), a hepatitis C protease inhibitor; Intelence (Etravirine), a non-nucleoside HIV polymerase inhibitor; and Prezista (darunavir), an HIV protease inhibitor. Telaprevir sales are expected to decline due to the recent approval of treatment regimens that are more efficacious and much better tolerated. Etravirine and darunavir are notable for their high barriers to resistance development. Darunavir in combination with HIV polymerase inhibitors is recommended as a first line treatment option for treatment naive persons with HIV infection but etravirine is approved only for use in treatment-experienced patients, owing in part to its requirement for twice-daily dosing.
The company's CNS products include the ADHD drug Concerta (methylphenidate extended release), and the long-acting injectable antipsychotics Invega Sustenna (paliperidone palmitate) and Risperdal Consta (risperidone). Invega Sustenna and Risperdal Consta were the first widely utilized long-acting depot injections for the treatment of schizophrenia. Designed to address the issue of poor patient compliance with oral therapy, they are administered by intramuscular injection at intervals of 2 weeks and one month, respectively. Only minimal improvements in outcomes relative to the oral versions of these drugs were observed in the clinical trial setting, but some evidence suggests that the advantages of long-acting injections in clinical practice may be greater than is readily demonstrated in the environment of a clinical trial.
Oncology products include Velcade (bortezomib), for the treatment of multiple myeloma and mantle cell lymphoma and Zytiga (abiraterone), an androgen antagonist for the treatment of prostate cancer. In clinical trials, abiraterone treatment was associated with a 4.6 to 5.2 survival advantage when used either before or after chemotherapy with platinum based drugs.
On September 30, 2014, the company announced its plans to acquire Alios BioPharma for $1.75 billion, adding it to its Janssen Pharmaceutica division. As part of the deal the company will expand its viral-disease portfolio by gaining access, to two Phase II drugs (specifically the respiratory syncytial virus drug candidate, AL-8176) and several preclinical compounds.
Sectors in which the company is active include:
- Orthopaedics (DePuy Synthes): Joint Reconstruction, Trauma, Spine, Sports Medicine and Power Tools
- Cardiovascular Disease (Cordis Corporation, Biosense Webster, Inc.)
- Coronary Artery Disease (Cordis)
- Peripheral Vascular And Obstructive Disease (Cordis)
- Neurovascular Disease (Codman Neuro, DePuy Synthes)
- Arrhythmias (Biosense Webster)
- Diabetes Care (LifeScan, Animas Corporation)
- Self-Measured Blood Glucose Monitors (LifeScan)
- Insulin Delivery Devices (Animas)
- Vision Care (VISTAKON®)
- General Surgery (Ethicon, Codman Neuro)
- Bariatric Surgery for Obesity (Ethicon)
- Urologic Surgery (Ethicon)
- Hernia Surgery (Ethicon)
- Aesthetics (Ethicon, Mentor)
- Surgical Instruments and Infection Prevention(Advanced Sterilization Products)
- Ear, Nose, and Throat Conditions (Acclarent)
Sectors in which the company is active include:
- Baby Care
- Skin & Hair Care
- Wound Care & Topicals
- Oral Health Care
- Over-the-Counter Medicines
- Vision Care
Current members of the board of directors of Johnson & Johnson are: Mary Sue Coleman, James G. Cullen, Dominic Caruso, Michael M.E. Johns, Ann Dibble Jordan, Arnold G. Langbo, Susan L. Lindquist, Leo F. Mullin, William Perez,, Steven S. Reinemund, David Satcher, and William C. Weldon.
Johnson and Johnson's corporate structure is based on a decentralized management philosophy. The company operates in three segments: Consumer Products, Pharmaceuticals, and Medical Devices and Diagnostics. The company's central Executive Committee allocates resources and sets strategic priorities for these divisions. Key subsidiaries include Ethicon (Medical Devices); McNeil Laboratories, Inc., Cilag, and Janssen Pharmaceutica (Pharmaceuticals). In 2012, the Consumer Products, Pharmaceuticals, and Medical Devices and Diagnostics divisions accounted for 22%, 37%, and 41% of the company's revenues, respectively.
JNJ Headquarters and the New Brunswick gentrification
The company has historically been located on the Delaware and Raritan Canal in New Brunswick. The company considered moving its headquarters out of New Brunswick in the 1960s, but decided to stay in the town after city officials promised to gentrify downtown New Brunswick by demolishing old buildings and constructing new ones.
While New Brunswick lost at least one historic edifice (the inn where Rutgers University began) to the redevelopment, the gentrification did attract people back to New Brunswick. Johnson & Johnson hired Henry N. Cobb from Pei Cobb Freed & Partners to design an addition to its headquarters. The white tower in a park across the railroad tracks from the older portion of the headquarters in one of tallest buildings in New Brunswick.
The stretch of Delaware and Raritan canal by the company's headquarters was replaced by a stretch of Route 18 in the late 1970s, after a lengthy dispute. In 2002, the company released its plan of setting up Asia-Pacific information technology headquarters in New South Wales within five years.
Johnson & Johnson has set several positive goals to keep the company environmentally friendly and was ranked third among the United States's largest companies in Newsweek's "Green Rankings". Some examples are the reduction in water use, waste, and energy use and an increased level of transparency. Johnson & Johnson agreed to change its packaging of plastic bottles used in the manufacturing process, switching their packaging of liquids to non-polycarbonate containers. The corporation is working with the Climate Northwest Initiative and the EPA National Environmental Performance Track program. As a member of the national Green Power Partnership, Johnson & Johnson operates the largest solar power generator in Pennsylvania at its site in Spring House, PA.
1982 Chicago Tylenol murders
On September 29, 1982, a "Tylenol scare" began when the first of seven individuals died in metropolitan Chicago, after ingesting Extra Strength Tylenol that had been deliberately laced with cyanide. Within a week, the company pulled 31 million bottles of capsules back from retailers, making it one of the first major recalls in American history. The incident led to reforms in the packaging of over-the-counter substances and to federal anti-tampering laws. The case remains unsolved and no suspects have been charged. Johnson & Johnson's quick response, including a nationwide recall, was widely praised by public relations experts and the media and was the gold standard for corporate crisis management.
2010 children's product recall
On April 30, 2010, McNeil Consumer Healthcare, a subsidiary of Johnson and Johnson, voluntarily recalled 43 over-the-counter children's medicines, including Tylenol, Tylenol Plus, Motrin, Zyrtec and Benadryl. The recall was conducted after a routine inspection at a manufacturing facility in Fort Washington, Pennsylvania, United States revealed that some "products may not fully meet the required manufacturing specifications". Affected products may contain a "higher concentration of active ingredients" or exhibit other manufacturing defects. Products shipped to Canada, Dominican Republic, Guam, Guatemala, Jamaica, Puerto Rico, Panama, Trinidad and Tobago, the United Arab Emirates, Kuwait and Fiji were included in the recall. In a statement, Johnson & Johnson said "a comprehensive quality assessment across its manufacturing operations" was underway. A dedicated website was established by the company listing affected products and other consumer information.
2010 Hip replacement recall
On August 29, 2010, DePuy, a subsidiary of American giant Johnson & Johnson, recalled its ASR (articular surface replacement) hip prostheses from the market. DePuy said the recall was due to unpublished National Joint Registry data showing a 12% revision rate for resurfacing at five years and an ASR XL revision rate of 13%. All hip prostheses fail in some patients, but it is expected that the rate will be about 1% a year. Pathologically, the failing prosthesis had several effects. Metal debris from wear of the implant led to a reaction that destroyed the soft tissues surrounding the joint, leaving some patients with long term disability. Ions of cobalt and chromium—the metals from which the implant was made—were also released into the blood and cerebral spinal fluid in some patients.
In March 2013, a jury in Los Angeles ordered Johnson & Johnson to pay more than $8.3 million in damages to a Montana man in the first of more than 10,000 lawsuits pending against the company in connection with the now-recalled DePuy hip.
Some lawyers and industry analysts have estimated that the suits ultimately will cost Johnson & Johnson billions of dollars to resolve.
2010 Tylenol recall
In 2010 and 2011, Johnson & Johnson voluntarily recalled some over-the-counter products including Tylenol due to an odor caused by tribromoanisole. In this case, 2,4,6-tribromophenol was used to treat wooden pallets on which product packaging materials were transported and stored.
In 2010 a group of shareholders sued the board for allegedly failing to take action to prevent serious failings and illegalities since the 1990s, including manufacturing problems, bribing officials, covering up adverse effects and misleading marketing for unapproved uses. The judge initially dismissed the case in September 2011, but allowed the plaintiffs opportunity to refile at a later time. In 2012 Johnson and Johnson proposed a settlement with the shareholders, whereby the company would institute new oversight, quality and compliance procedures binding for five years.
Illegal Marketing of Risperdal
Juries in several US states have found J&J guilty of concealing the adverse effects of Janssen Pharmaceuticals' antipsychotic medication Risperdal (chemical name Risperidone), produced by its unit, in order to promote it to doctors and patients as better than cheaper generics, and of falsely marketing it for treating patients with dementia. States that have awarded damages include Texas ($158 million), South Carolina ($327 million), Louisiana ($258 million), and most notably Arkansas ($1.2 billion).
In 2010, the United States Department of Justice joined a whistleblowers suit accusing the company of illegally marketing Risperdal through Omnicare, the largest company supplying pharmaceuticals to nursing homes. The allegations include that J&J were warned by the U.S. Food and Drug Administration (FDA) not to promote Risperdal as effective and safe for elderly patients, but they did so, and that they bribed Omnicare pharmacists to promote the drug to care home physicians. The settlement was finalized on November 4, 2013, with J&J agreeing to pay a penalty of around $2.2 billion, "including criminal fines and forfeiture totaling $485 million and civil settlements with the federal government and states totaling $1.72 billion."
Johnson and Johnson have also been subject to congressional investigations claiming secret payments and misleading ghost written articles given to leading psychiatrists promoting its products, notably Professor Joseph Biederman and his paediatric bipolar disorder research unit.
Use of the Red Cross symbol
Johnson & Johnson registered the Red Cross as a U.S. trademark for "medicinal and surgical plasters" in 1905 and has used the design since 1887. The Geneva Conventions, which reserved the Red Cross emblem for specific uses, were first approved in 1864 and ratified by the United States in 1882; however, the emblem was not protected by U.S. law for the use of the American Red Cross and the U.S. military until after Johnson & Johnson had obtained its trademark. A clause in this law (now 18 U.S.C. 706) permits this pre-existing uses of the Red Cross to continue.
A declaration made by the U.S. upon its ratification of the 1949 Geneva Conventions includes a reservation that pre-1905 U.S. domestic uses of the Red Cross, such as Johnson & Johnson's, would remain lawful as long as the cross is not used on "aircraft, vessels, vehicles, buildings or other structures, or upon the ground," i.e. uses which could be confused with its military uses. This means that the U.S. did not agree to any interpretation of the 1949 Geneva Conventions that would overrule Johnson & Johnson's trademark. The American Red Cross continues to recognize the validity of Johnson & Johnson's trademark.
In August 2007, Johnson & Johnson filed a lawsuit against the American Red Cross (ARC), demanding that the charity halt the use of the red cross symbol on products it sells to the public, though the company takes no issue with the charity's use of the mark for non-profit purposes. In May 2008, the judge in the case dismissed most of Johnson & Johnson's claims, and a month later the two organizations announced a settlement had been reached in which both parties would continue to use the symbol.
Boston Scientific lawsuits
Since 2003, Johnson & Johnson and Boston Scientific have both claimed that the other had infringed on their patents covering heart stent medical devices. The litigation was settled when Boston Scientific agreed to pay $716 million to Johnson & Johnson in September 2009 and an additional $1.73 billion in February 2010. Their dispute was renewed in 2014, now on the grounds of a contract dispute.
Patent-infringement case against Abbott
In 2007, Johnson & Johnson sued Abbott Laboratories over the development and sale of the arthritis drug Humira. Johnson & Johnson claimed that Abbott used technology patented by New York University and licensed exclusively to Johnson & Johnson's Centocor division to develop Humira. Johnson & Johnson won the court case, and in 2009 Abbott was ordered to pay Johnson & Johnson $1.17 billion in lost revenues and $504 million in royalties. The judge also added $175.6 million in interest to bring the total to $1.84 billion. This was the largest patent-infringement award in U.S. history until the 2013 decision against Teva in favor of Takeda and Pfizer for over 2.1 billion dollars. Abbott has since successfully reversed the verdict at appeal.
Johnson & Johnson is a highly diversified company with at least 230 subsidiaries, which it refers to as the "Johnson & Johnson Family of Companies". Some of these subsidiaries include as follows:
- Advanced Sterilization Products
- ALZA Corporation
- ANIMAS Corporation
- BabyCenter, L.L.C.
- Biosense Webster, Inc.
- Centocor Ortho Biotech, Inc.
- Children With Diabetes, Inc.
- Codman & Shurtleff, Inc.
- Cordis Corporation
- Crucell nv
- DePuy, Inc.
- Ethicon Endo-Surgery, Inc.
- Ethicon, Inc.
- Global Pharmaceutical Supply Group (GPSG)
- Groupe Vendôme SA
- Independence Technology, LLC
- Information Technology Services
- Janssen Pharmaceutica
- Janssen Pharmaceutica Products, L.P.
- Johnson & Johnson, Group of Consumer Companies, Inc.
- Johnson & Johnson Health Care Systems Inc.
- Johnson & Johnson – Merck Consumer Pharmaceuticals Co.
- Johnson & Johnson Pharmaceutical Research & Development, L.L.C.
- Johnson & Johnson Pharmaceutical Services, L.L.C.
- LifeScan, Inc.
- McNeil Consumer Healthcare
- McNeil Nutritionals
- Mentor Worldwide, L.L.C.
- Noramco, Inc.
- Ortho-Clinical Diagnostics, Inc. OCD (Sold in 2014)
- Ortho-McNeil Pharmaceutical
- Ortho-Neutrogena (a merge of Neutrogena and Ortho Dermatological)
- Personal Products Company
- Pharmaceutical Group Strategic Marketing (PGSM)
- Peninsula Pharmaceuticals, Inc.
- PriCara, Inc.
- Scios Inc.
- Tasmanian Alkaloids
- Transform Pharmaceuticals, Inc.
- Veridex, LLC
- Bebe (German market moisturisers and cosmetic products available in all German speaking countries).
- Caring Everyday
- Clean & Clear
- Coach Professional
- Coach Sport
- Corn Huskers Lotion
- Healthy Woman
- Johnson's Baby (baby shampoo)
- Johnson & Johnson Red Cross
- Motrin Children
- Piz Buin
- Pepcid AC
- Pure Essentials
- Rembrandt toothpaste
- Simply Sleep
- Tucks Pads
- Tylenol Baby
- Tylenol Children
- Zodiac – Historic schooner built for the Johnson family heirs.
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