NEW BRUNSWICK, N.J. (AP) – Johnson & Johnson’s chief executive will try to reassure shareholders at their annual meeting Thursday, detailing steps taken to resolve an eye-popping string of product recalls and touting a huge new deal.
William Weldon, who has spent his entire career at the health care giant and became CEO in 2002, previewed his comments in a round of media interviews Wednesday.
He said he hopes the many product recalls are behind J&J, but can’t make any promises.
Since September 2009, the company has had about two dozen recalls of prescription and nonprescription medicines, replacement hips, contact lenses and diabetes test strips, including tens of millions of bottles of children’s and adult Tylenol and Motrin.
Weldon, 62, said J&J has taken many steps and invested millions to improve the quality of its manufacturing and satisfy federal regulators, who have three of its factories under scrutiny. One has been closed for a year already while it is gutted and refitted.
J&J has shifted manufacturing of some products to other factories.
Its biggest challenge may be winning back consumers as recalled products such as Tylenol and Motrin come back on the market this year and next.
The comments and reaction of J&J shareholders Thursday may give some insight into how well that will go.
Weldon will also try to sway them with news of the most expensive deal the company has ever made.
On Wednesday, J&J announced an agreement to buy U.S.-Swiss medical device maker Synthes Inc. for $21.3 billion. The deal, which should close next year, would give J&J a much bigger share of the market for surgical trauma equipment and orthopedic implants.
Date: April 28, 2011
Source: Associated Press