Pharmaceutical industry giant, Johnson & Johnson, is reporting higher than expected fourth quarter losses. The company's profit fell 12% amid drug and hip joint recall news.
Among the causes are a higher than expected drop in sales and a $922 million charge related to the recent DuPuy ASR hip recall. Johnson & Johnson is the manufacturer of the defective hip joint and is facing multiple class action lawsuits in Wisconsin and across the nation. We have been keeping track of the recalls as they happen. Please visit our blog and news sections to find the latest recall information.
In addition, the company was forced to take place in a series of drug recalls. Last year popular products such as Tylenol, Motrin and Benadryl were recalled due to product safety concerns. Several manufacturing plants were shut down over concerns that foreign objects and substances were finding their way into the drugs.
Litigation against the company and a decline in sales are said to be the primary factors in profit loss.
Though the company is reporting losses their profits still peaked at $1.94 billion in the fourth quarter. Johnson & Johnson has stated that it will not be giving eligible employees their full bonuses for 2010.