From Tylenol to Talc: A Timeline of Johnson & Johnson’s 135-Year History
From Tylenol to Talc: A Timeline of Johnson & Johnson’s 135-Year History
(Bloomberg) -- It’s the end of Johnson & Johnson as you know it.
J&J’s plan to split itself in two marks a radical shift for the company that’s grown to be part consumer-product maker (Listerine, Band-Aids and Neutrogena) and part pharmaceutical and medical-device giant (developing drugs and medical devices). A household name before the Covid-19 pandemic, J&J Chief Executive Officer Alex Gorsky told analysts the virus hastened a move the company had considered for years.
J&J hopes the move will allow the new companies to address the forces reshaping the healthcare industry and changing consumer behavior. Here’s a look at the ups and downs the 135-year old company has survived.
1886: Founding
Robert Wood Johnson, who got his interest in healthcare as a pharmaceutical apprentice during the Civil War, founded the company with his two younger brothers, Edward Mead and James Wood. Among other things, the company grew by selling sterile surgical products, including sutures, absorbent cotton and gauze.
1944: IPO
J&J went public after expanding into 31 operating companies that produced medical, consumer and military supplies. It trades under the ticker JNJ today. The stock has gained just 3.6% this year through Thursday’s close, before the announcement.
1961: Janssen Deal
J&J acquired the Belgian research and drug company Janssen Pharmaceutica. Now, 11 Janssen treatments are included in the List of Essential Medicines of the World Health Organization.
1961: Tylenol
Tylenol became an over-the-counter medicine. J&J had acquired its producer, McNeil Laboratories, in 1958, which gave it full control over the drug. Today, it's the most often recommended pain killer in many countries. Demand for Tylenol surged during the Covid-19 outbreak in March 2020.
1982: Tylenol Tampering
A series of deaths in the Chicago area were attributed to tampering with Tylenol acetaminophen tablets. Nobody was ever charged or convicted for the poisoning deaths, but it was a watershed moment for the drug industry that led big changes in the way that medicines are packaged. J&J's response, in which it recalled drugs, halted advertising and warned hospitals and distributors about potential hazards, has been widely hailed as a textbook example of how companies should handle a crisis, and now is even taught in business schools.
2010: Product Recalls
Starting in 2010, J&J voluntarily recalled more than 50 products, including millions of bottles of Tylenol, Benadryl, Motrin and Zyrtec due to problems such as metal shavings found in medicines, incorrect levels of an active ingredient and odors. The company shut down a factory after the recalls and lost more than $1 billion in sales. In 2012, J&J was forced to recall its U.S. supply of infant Tylenol due to a design flaw, just as it was trying to regain consumer trust.
2014: Surgical Device Linked to Cancer
J&J, the largest maker of power morcellators, recalled the devices used in a popular uterine surgery to remove fibroids, uterine growths that are common but often painful. The move came after the Food and Drug Administration issued an advisory discouraging doctors from using the devices because of a risk of worsening an often-hidden cancer.
2019: $8 Billion Risperdal Settlement
Risperdal sparked lawsuits by thousands of men who claimed J&J’s anti-psychotic drug caused them to develop excessive breast tissue. In 2019, a jury awarded Nicholas Murray an $8 billion punitive damage award in 2019 that a judge later reduced to $6.8 million. J&J said in 2021 it has settled most of the lawsuits it faced and disclosed that it recorded $800 million in expenses in connection with the agreement.
2020: Talc-Based Baby Powder No longer Sold in North America
J&J stopped selling talc-based baby powder in the United States and Canada after it lost legal fights over claims the product causes cancer. The company has been ordered to pay out billions of dollars related to the suits. The company denied allegations that the powder causes cancer.
2020: Covid-19 Vaccine
Through its Janssen subsidiary, the company developed a single-shot coronavirus vaccine that has proven to be 66% effective.
2021 : Opioid Settlements
J&J has had to go to court to defend its role in the U.S. opioid crisis. In July, the company and three opioid distributors agreed to pay a combined $26 billion to resolve thousands of state and local government lawsuits.
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