Johnson&Johnson

Johnson & Johnson has brought many new products to the market that have not lost their relevance so far. The company has invented and launched a medical patch, dental floss, personal hygiene products for women, the world's first soft contact lenses, daily lenses and much more.

Aktivs

In 2017, Johnson & Johnson Corporation includes more than 250 subsidiaries. The brand is developing in three directions at once:

• medicines,
• hygiene products,
• medical equipment.

By early 2019, Johnson & Johnson's operations are divided into three main segments:

• consumer goods (child care products, oral and skin care products, over-the-counter drugs, etc.);
• medical equipment;
• pharmaceuticals.

• Johnson&Johnson Medical Devices

Financial performance

Main article: Johnson & Johnson financials

Business in Russia and CIS

Main article: Johnson & Johnson Russia and CIS

On the territory of Russia and the CIS countries, Johnson & Johnson products have been represented since 1992 by three areas:

• consumer products;
• products for hospitals;
• pharmaceutical products.

History

2023

Johnson & Johnson to pay $700 million to sell cancer-causing baby powder

On January 23, 2024, the American pharmaceutical holding Johnson & Johnson announced that it had reached a preliminary agreement to resolve a high-profile case related to the sale of baby powder that provokes the development of malignancies. The company will pay approximately $700 million in claims from 42 states.

We are talking about a scandalous process that concerns sales of Johnson & Johnson powder containing talc with an admixture of carcinogenic asbestos. The prosecution insists that the company misled consumers about the safety of this hygiene product and its other products. It is alleged that the leadership of Johnson & Johnson, managers, experts and lawyers of the corporation were aware of this problem, but preferred to keep silent about it.

Johnson & Johnson itself says its products are not harmful to health. At the same time, against the background of numerous lawsuits, the company in 2020 stopped selling powder in the United States and Canada. It is said that reaching a settlement agreement with the American states will avoid proceedings with the authorities. At the same time, the contract does not apply to individual claims from consumers, the number of which is about 52 thousand. To resolve all these claims, Johnson & Johnson allocated $8.9 billion.

Johnson & Johnson has made two attempts to initiate bankruptcy proceedings to limit its participation in litigation. In both cases, however, regulators refused, reasoning that the company was not in financial trouble. Johnson & Johnson is reportedly considering filing a third bankruptcy filing. In 2023, the company announced that it would completely discontinue talc-based baby powder.^[1]

Payment of $18.8 million to the cancer patient for the development of his cancer after baby powder

On July 18, 2023, a jury California State in Oakland ruled in favor of Emory Hernandez Valadez, who accused the company of Johnson & Johnson selling baby powder that provokes development. cancer

We are talking about a hygienic agent that can contain talc with an admixture of carcinogenic asbestos. Valades, 24, filed a lawsuit against Johnson & Johnson in 2022. Because of his childhood use of Johnson & Johnson powder, he developed mesothelioma, a rare form of cancer in tissues that line internal organs, according to his claims. In the case of Valades, the tissues around the heart are affected, making this malignant formation extremely dangerous. On this basis, the plaintiff demanded large monetary compensation.

The case lasted six weeks. The jury concluded that Hernandez was entitled to damages related to medical services and treatment, as well as compensation for non-pecuniary damage. In accordance with the ruling, Johnson & Johnson will pay the plaintiff $18.8 million. However, the jury refused to satisfy the claim for penalties against the company.

Johnson & Johnson vice president of litigation Eric Haas said the company will appeal the verdict. According to him, the verdict runs counter to "decades of independent scientific assessments confirming that Johnson's Baby Powder is safe, asbestos-free and cancer-free." However, lawyers for Johnson & Johnson emphasize that "there is no evidence linking Hernandez's type of mesothelioma to asbestos or confirming that Hernandez was ever exposed to carcinogenic talc." Valades' attorney could not immediately be reached for comment.^[2]

Recall of defective surgical electrodes that lead to burns

On July 11, 2023, the Food and Drug Administration (FDA) announced the recall of defective Megadyne surgical electrodes manufactured by Ethicon - a subsidiary of Johnson & Johnson. Read more here.

Allocation of $8.9 billion for payments to victims of cancer-causing baby powder

On April 4, 2023, Johnson & Johnson (J&J) announced the allocation of $8.9 billion to resolve a high-profile scandal related to the sale of baby powder, which is said to be able to increase the risk of development. cancer

J&J has faced tens of thousands of lawsuits from consumers of its products. The materials of these proceedings say that talc-based baby powder containing asbestos provokes the formation of malignant formations. Ovarian cancer and mesothelioma are named among such tumors - a rare form of cancer of tissues lining internal organs.

To protect against bankruptcy, as well as reduce losses from a colossal number of litigation, J&J created a subsidiary structure - LTL Management LLC (LTL). Reportedly, it is through it that $8.9 billion will be paid to cover the claims of the plaintiffs. Moreover, this whole process will stretch for 25 years. It is noted that the indicated amount is more than four times higher than the potential costs of $2 billion, which were determined in October 2021 as expenses in connection with this conflict.

At the same time, J&J continues to deny the accusations against it, insisting that the powder is safe. The company emphasizes that the jury won the vast majority of proceedings related to cosmetic talc. Nevertheless, as they say, the fastest and most effective settlement of this issue is in the interests of J&J itself and all parties involved in the process. And therefore, a decision was made to pay monetary compensation.

The company still believes that these claims are far-fetched and have no scientific basis, "said Erik Haas, vice president of international litigation at Johnson & Johnson.[3]

Dismissal of more than 1,000 employees in the medical department

In early March 2023, Johnson & Johnson (J&J) announced to employees about restructuring and layoffs, which could lead to a reduction in at least 1,000 jobs in the medical department.

As the American manufacturer of medical devices noted, it is not immune from the impact of inflation and the strengthening of the dollar on its business, despite the fact that the healthcare industry is quite stable in the United States. The strong dollar will cut the company's adjusted 2023 earnings by 40 cents to 50 cents per share, J&J officials said. The company expects inflationary pressures to ease in 2023, but warned that the higher cost of products made in 2022 could impact earnings in 2023.

According to Reuters, J&J combines sports medicine products into traumatology and limbs, so the company is forced to cut a number of jobs. Chief Financial Officer Joseph Volk said that he is optimizing the scale of his activities due to the transition from a three-segment business to a two-segment one by singling out his consumer division. J&J's reorganization involves combining sports medicine products into traumatology and limbs, as well as shoulder reconstruction into joint reconstruction.

When asked about the layoffs, J&J representatives shared a statement from the company with MassDevice:

As the world's largest, most diversified healthcare company, we are constantly exploring ways to improve innovation and competitiveness. We are evolving in a rapidly changing environment to better meet the needs of the patients we serve around the world.

According to MassDevice, from mid-2022 to March 2023, more than 19 thousand medical workers were laid off in the medical tech industry. However, large medical technology companies such as J&J are facing a range of challenges for March 2023:

• Clients of healthcare facilities in the United States and other countries face staffing shortages and operational challenges. They are also more conservative in spending, particularly in big purchases;
• American medical and technology companies have to contend with efforts by the Chinese government to curb health care costs. This is done by making changes to the procurement process for the national health system;
• U.S. medical device manufacturers face macroeconomic challenges, including inflation, rising interest rates and supply chain problems. In addition, a strong US dollar makes it difficult to sell American companies abroad.^[4]

Johnson & Johnson to pay $302 million for cheating in vaginal implant ads

On February 21, 2023, the US Supreme Court rejected the appeal of Johnson & Johnson (J&J), upholding the previous decision to pay the company $302 million in compensation for inappropriate advertising of vaginal implants. Read more here.

2022

Johnson & Johnson acquires Abiomed for $16.6 billion

On November 1, 2022, Johnson & Johnson announced the purchase of heart pump manufacturer Abiomed for $16.6 billion. Abiomed will operate as a separate business within the conglomerate's medical technology division. The deal is expected to close in the first quarter of 2023. Read more here.

Alcon and Johnson & Johnson will pay $75 million for price collusion

On October 12, 2022, the Florida Federal Court (USA) announced that Alcon Vision and Johnson & Johnson decided to enter into a settlement agreement as part of a class action lawsuit by consumers. Read more here.

Spin off the consumer business into a new company

On September 28, 2022, Johnson & Johnson announced that after separating the pharmaceutical and medical device businesses, consumer products under brands such as Tylenol and Listerine would be sold by a new company called Kenvue. Read more here.

Fine of $205 million for sales of defective implants for the treatment of pelvic diseases

In mid-September 2022, Johnson & Johnson settled a pelvic mesh class action lawsuit in Australia for about $205 million. This followed numerous lawsuits involving more than 11 thousand plaintiffs, the pharmaceutical giant and its subsidiary Ethicon. Shine Lawyers, which handled the lawsuit, confirmed the settlement. Read more Vaginal implants

Fine of $40.5 million for the uncontrolled sale of drugs with narcotic substances

On September 1, 2022, it became known that the pharmaceutical giant Johnson & Johnson agreed to pay the state of New Hampshire in the United States $40.5 million as part of the settlement of the opioid lawsuit. That agreement settles a complaint filed in 2018 by then-Attorney General Gordon McDonald, who alleged that the company - through its subsidiaries Janssen Pharmaceuticals and Ortho-McNeil-Janssen Pharmaceuticals - was aggressively marketing opioids to doctors and patients in New Hampshire, misleading that their drugs were safer than other alternatives, and "promoted the false concept of pseudo-addiction," trying to fraudulently prove that their opioids are rarely addictive when used to treat chronic pain.

The state also argues that J&J's marketing has targeted particularly vulnerable populations across New Hampshire, including seniors, despite the fact that elderly opioid use carries an increased risk of overdose, injury and death.

{{quote'New Hampshire has been hit by the opioid drug crisis and we continue to fight the consequences of this crisis today, New Hampshire Attorney General John Formella said in a news release. Today's settlement continues our efforts to hold opioid companies accountable for their role in creating this epidemic, and this settlement represents another successful effort to gain more resources for New Hampshire, consistent with the disproportionate impact this crisis has had on our state. }} Formella said the settlement vindicates New Hampshire's decision not to enter into a national agreement with J&J because the terms of the national agreement were less favorable to the state compared to that settlement.

Under the terms of the settlement, J&J will make a one-time payment to the state of $39.605 million and pay about $900 thousand in attorneys' fees to counties, cities and towns that filed lawsuits against J&J on opioids before September 1, 2019.

The state will receive $31.5 million after paying legal fees and fees to outside lawyers, the money will be directed to anti-opioid programs. Counties, cities and towns will share $4,725,000.^[5]

Appointment to CEO of future Johnson & Johnson Consumer Health standalone Thibaut Mongon

On May 11, 2022, it became known that Johnson & Johnson appointed Thibaut Mongon as chief executive officer of the consumer health division, which the pharmaceutical giant is separating into a separate company. Read more here.

$20 million fine for stealing knee prosthetics technology

In mid-March 2022, the United States Federal Jury issued a verdict for DePuy Synthes in the amount of $20 million in favor of the surgeon. A medical professional claimed in 2021 that Johnson & Johnson's orthopaedic division had stolen his patented technology. Read more here.

Purchase of pharmaceutical company Anakuria Therapeutics

In early February 2022, it became known about the sale of Anakuria Therapeutics to Janssen Pharmaceuticals (part of the Johnson & Johnson group). The value of the deal was not announced. Read more here.

2021

Transfer of debts in claims for cancer-causing baby powder to LTL Administration and its bankruptcy

In mid-October 2021, Johnson & Johnson (J&J) transferred to bankruptcy proceedings its obligations in more than 37 thousand lawsuits related to talc-based products with cancers, hoping to thus stimulate the settlement of claims for damages. The process involves a subsidiary of LTL Administration. Read more here.

Drug-addictive drug sales penalty

At the end of July 2021, the California Attorney General announced that Johnson & Johnson and other pharmaceutical giants would pay $26 billion for drug sales. The settlement includes Johnson & Johnson, which made and sold opioid drugs, and pharmaceutical distributors, and Cardinal McKesson AmerisourceBergen.

According to the press release, this settlement resolves all investigations and litigation over the role of these companies in creating the opioid epidemic. The court also demanded the introduction of significant changes in the industry that can prevent the recurrence of such a crisis.

Three pharmaceutical distributors will jointly pay up to $21 billion over 18 years. Johnson & Johnson will pay up to $5 billion over nine years, including up to $3.7 billion over the first three years. The total amount of distributed funding will be determined by the degree of participation of participating and non-participating state and local authorities.

A significant portion of the funds raised as part of the settlement are for the treatment and prevention of opioid addiction in affected patients. Each state's share of funding is determined by an agreement between the states using a formula that takes into account the impact of the opioid epidemic on each state.

In addition, the settlement includes an injunction that requires three distributors within 10 years to create a centralized independent clearinghouse to provide data and analytics on the distribution of opiates. The agreement also directs Johnson & Johnson to stop selling opioids for 10 years and prohibits the company from lobbying for opioid-related activities or sharing clinical trial data as part of an open-access project. ^[6]

Recall of defective sun sprays that can cause cancer

On July 15, 2021, information appeared that Johnson & Johnson it was recalling defective sun sprays that could cause. cancer The company is recalling aerosol Aveeno sunscreens and Neutrogena after internal analyses of samples revealed the presence of benzene, a known carcinogen. More. here

$230m payout to sell opioid painkillers that led to fatal overdoses

At the end of June 2021, Johnson & Johnson agreed to pay up to $263 million in favor of New York for resolving the scandal known as the "opioid crisis." In addition to the fine, the agreement with the authorities involves a ban on the production and sale of opioids in New York by the manufacturer, its divisions and successors.

The opioid epidemic has hurt multiple communities both in New York state and the rest of the country, leaving millions of people dependent on deadly opioids. Johnson & Johnson helped start this fire, but now they are committing to leaving the opioid business - not only in New York, but throughout the country, says the website of the office of the Attorney General of New York Letitia James.

New York will direct the money received from Johnson & Johnson to finance measures to prevent and treat addiction to opioids, as well as to increase citizens' awareness of the danger of these substances.

The opioid epidemic (opioid crisis) is a growing number of deaths due to uncontrolled use of opioid analgesics. In the mid-1990s, opioid group drugs became widely used in the United States to relieve acute and chronic pain. To a large extent, this was facilitated by pharmaceutical companies that carried out advertising campaigns to promote supposedly "safe" painkillers and encouraged doctors to prescribe these drugs.

In the US, opioid drug overdoses, heroin and fentanyl poisoning have been identified as a critical issue. states The channel CNBC at the end of June 2021 noted that since 1999, about 500,000 people have died due to the opioid crisis in the United States.

Johnson & Johnson was among the companies accused of selling opioid-containing drugs out of control. They are addictive and result in overdose deaths.^[7][8]

Payment of $2.1 billion for sales of cancer-causing baby powder

In early June 2021, it became known that Johnson & Johnson should pay $2.1 billion for the sale of baby powder contaminated with carcinogenic asbestos. The U.S. Supreme Court declined to hear J&J's objections to a 2018 St. Louis jury decision that concluded it was talc-based J&J powder that contributed to the development of ovarian cancer in 20 women.

J&J previously announced it had committed nearly $4 billion to cover costs related to legal fees. The companies still face more than 26,000 lawsuits accusing baby powder of causing it. cancer J&J removed this product from the shelves in the United States To Canada and only in 2020.

A jury in the St. Louis case awarded each woman with ovarian cancer who went to court $25 million in compensation. The commission also added more than $4 billion in punitive damages. In 2020, the state appeals court reduced the fine by more than half.

The sprawl of the St. Louis case, which combined the claims of nearly two dozen plaintiffs from 12 different states, made the trial so unfair that the case violates the Constitution's due process clause, according to a J&J filing sent to the Supreme Court.

J&J also argues that the amount of the penalty exceeds the amount of actual damage, which means that the court's decision is contrary to the Constitution. At the same time, J&J appeals to past decisions of the Supreme Court, which limited the fines of various companies.

A judge in the St. Louis case in 2018 refused to overturn the fine after finding "particularly reprehensible behavior" by J&J's marketing department. It concluded that J&J was "aware of the presence of asbestos in products that were intended to be sold to mothers and babies, was aware of the harms caused by these products, but has skewed that data in favor of advertising for decades^[9]

2020

$6.5 billion purchase of Momentum Pharmaceuticals

In August 2020, Johnson & Johnson (J&J) entered into an agreement to acquire Momentum Pharmaceuticals, a company that develops new therapies for immune-mediated diseases, for about $6.5 billion.

Under the terms of the deal, which was approved by the boards of both companies, Vigor Sub, a newly formed subsidiary of Johnson & Johnson and wholly owned by it, is opening a tender offer to buy all outstanding Momentum shares at $52.5 per share.

It is also specified that the merger will be carried out as soon as possible after the closure of the tender offer and is expected by the end of the year.

Payment of $3.9 million to West Virginia for the sale of health-threatening implants

In early May 2020, Johnson & Johnson entered into an agreement to regulate the lawsuit with the authorities of the state of West Virginia. By court order, the company will pay a $3.9 million fine to the state for the sale of defective vaginal implants. Read more here.

$2.6 million fine for selling defective vaginal implants

In early March 2020, the US Federal Court ruled that the pharmaceutical company Johnson & Johnson must pay compensation in the amount of $2.6 million to three women who were fitted with defective vaginal implants. Read more here.

2019

Johnson & Johnson buys out entire Verb Surgical

In mid-December 2019, Johnson & Johnson bought Verb Surgical, a jointly created developer of robotic surgeons, from Google. The deal is expected to close in the first half of 2020. Read more here.

103 thousand lawsuits filed against Johnson & Johnson from customers

103 thousand lawsuits for defective products have been filed against Johnson & Johnson. The Wall Street Journal wrote about this in mid-October 2019, making its own calculation as of mid-summer 2019.

By comparison, in October 2011, the number of lawsuits against an American manufacturer from customers was measured at 8,580.

As the publication suggests, the company's tactic is to fight the plaintiffs in court and delay the process as much as possible, avoiding an out-of-court settlement. Johnson & Johnson regularly says that scientific research and tests talk about the safety of their products, and the number of lawsuits is due solely to the greed of plaintiffs' lawyers.

According to one of Johnson & Johnson's lawyers, the company avoids a pre-trial settlement so as not to provoke an additional number of complaints.

Experts interviewed by the publication say that too many court cases have been instituted against Johnson & Johnson, which is dangerous for the company, especially since the claims relate to various products.

Earlier in 2019, the international rating agency Moody's downgraded the pharmacist's bond rating from stable to negative. In the Alva Group drugmaker reputation index, the company rolled back to 57th out of 58, although Johnson & Johnson was in the top ten as early as 2010.

Analysts estimate Johnson & Johnson's spending on resolving all customer claims at $20-50 billion.

A large number of litigation negatively affects investor confidence in the manufacturer. In October 2019, the company's shares fell by 12% relative to peak values ​ ​ in December 2018. At the same time, the USA S&P 500 index of the largest companies, which includes Johnson & Johnson, grew by 10% over the same period^[10]

Johnson & Johnson to pay $117 million to sell defective vaginal nets

On October 17, 2019, Johnson & Johnson agreed to pay $117 million to settle the trial, the initiators of which accused the company of unfair advertising of vaginal mesh implants. Read more here.

Fine of $8 billion for accidental breast augmentation in a man

In October 2019, a Philadelphia court issued a verdict according to which Johnson & Johnson will have to pay $8 billion to Nicholas Murray as compensation for the side effect of taking the antipsychotic drug Risperdal.

In 2003, Murray began taking the drug Risperdal to prevent attacks of schizophrenia and bipolar disorder. This drug was found to have a side effect - gynecomastia, that is, breast enlargement in men. According to the plaintiff, Johnson & Johnson was aware of the risks, but did not properly notify the doctors prescribing the drug.

 In 2015, a jury demanded that Johnson & Johnson pay Murray $1.75 million, but then the amount of compensation was reduced to $680 thousand. The court of appeal later overturned this decision, and the trial resumed in September 2019 and ended not in favor of the American manufacturer.

 Johnson & Johnson found the new court decision "excessive and unreasonable."

Risperdal received the approval of American specialists in 1993. In addition to autism, indications for its use are schizophrenia, hallucinations, bipolar affective disorder.^[11]

Johnson & Johnson to pay $0.5 billion to turn people into addicts

On August 27, 2019, a court in Cleveland, Oklahoma, ruled that Johnson & Johnson must pay $572 million for the distribution of opioids in the United States.

District Judge Ted Bolkman said the company "provided false and misleading information when promoting its drugs and opioids on the market, and according to state law, this is enough to regard" Johnson & Johnson's actions as contrary to local public health legislation.

 Authorities in Oklahoma said Johnson & Johnson "exaggerated the effectiveness of drugs to treat chronic pain and downplayed the risk of addiction."

We are talking about the promotion of drugs Duragesic (fentanyl) and Nucynta (tapentadol). In addition, an investigation conducted by law enforcement agencies showed that two Johnson & Johnson subsidiaries supplied active pharmaceutical substances and narcotic raw materials to other companies for the production of opioid analgesics.  

Oklahoma authorities demanded to recover $17.2 billion from Johnson & Johnson for the distribution of opioids in the state, due to which about 6 thousand people died. The company called the allegations unfounded and noted that they are based on "radical theories."

We recognize that the opioid crisis is an extremely complex public health issue , and we have deep sympathy for all those affected. We are  working with partners to find ways to help those in need, Johnson & Johnson said after the Oklahoma court's verdict.

Johnson & Johnson General Counsel Michael Ullman called the court's decision untenable because, according to him, there is an abuse of law.^[12]

The Oklahoma court's decision could affect negotiations on about 1,500 similar lawsuits that have sent administrations at various levels to one of Ohio's courts.

Recall of defective surgical stitchers that maim

In late March 2019, Johnson & Johnson began recalling defective surgical crosslinkers that could potentially lead to various side effects, including lethal ones. Read more here.

FBI investigates bribery of officials when selling medical equipment

On May 17, 2019, it became known that the FBI was investigating over alleged bribes that were given by Johnson & Johnson, Siemens, General Electric and Philips to  sell their medical equipment in Brazil. Read more here.

Buying Takeda surgical patch business for $400m

In May 2019, Takeda Pharmaceutical announced the sale of the TachoSil fibrin glue patch business to  Johnson & Johnson's subsidiary   Ethicon. The transaction value is $400 million. Read more here.

$1 billion fine for defective hip endoprostheses

In early May 2019, Johnson & Johnson agreed to pay about $1 billion to settle most lawsuits involving defective metal hip endoprostheses. Read more here.

Marriage in stitching machines that injure the stomach and cause hemorrhage

In late March 2019, Johnson & Johnson issued a notice regarding defective intraluminal crosslinkers manufactured by an Ethicon subsidiary. This equipment does not guarantee the integrity of malformed staples and uncut washers that can injure the stomach and cause hemorrhage. Read more here.

Purchase of robot surgeon developer $ Auris Health for 3.4 billion

On February 13, 2019, Johnson & Johnson announced the acquisition of robot surgeon developer Auris Health for $3.4 billion. The buyer will pay the entire amount from his own funds, that is, without attracting shares. Read more here.

$41 million fine for selling defective vaginal implants

In early February 2019, Johnson & Johnson was fined $41 million for selling defective vaginal implants manufactured by an Ethicon subsidiary. Read more here.

2018

Johnson & Johnson begins paying compensation for cancer-causing baby powder

In late December 2018, Johnson & Johnson began compensating patients who claimed that the famous baby powder had caused their cancer. According to the court verdict, the company agreed to pay more than $1.5 million to a woman with cancer amid asbestosis. The case of a Manhattan patient accusing J&J and its provider Imerys America of developing mesothelioma has not yet been settled.

Earlier, Reuters journalists investigated and found out that J&J had known since the 1970s about a problem with asbestos, a carcinogenic substance found in the company's talc-based products. As a result, J&J shares fell about 10%, which reduced the total value of the company's shares by more than $45 billion. Following news of the incident settlement, J&J shares fell another 1.3%.

However, J&J has stubbornly denied that its baby powder contains asbestos. J&J CEO Alex Gorsky said that "this is demonstrated in thousands of studies conducted not only by J&J, but also by independent committees and regulators." Lawyers for J&J claim mesothelioma developed in Anne Zoas, 78, due to smoking rather than baby powder. However, many other women accuse J&J and Imerys of developing ovarian cancer, and a jury trial in several states, including Missouri, California and New Jersey, awarded plaintiffs more than $5 billion, although some of these sentences were challenged on appeal. In other cases, J&J won similar cases in content.

In 2019, J&J will stand trial several more times, including in St. Louis, where the company has already been ordered to pay $4.67 billion to the plaintiffs. The lawyer who worked on this case undertook to consider several more cases in 2019, but declined to comment on the situation.^[13]

A fine of $360 million for bribing charitable foundations

On December 6, 2018, it became known that Johnson & Johnson would pay the American government $360 million in the case of using a charity to pay bribes to patients. Read more here.

Ci skincare developers buy: z Holdings for $2.1bn

On October 23, 2018, Johnson & Johnson announced its acquisition of Ci: z Holdings. More precisely, we are talking about the buyback of the remaining shares of the Japanese manufacturer of cosmetic products. The transaction value is 230 billion yen (about $2.04 billion at the exchange rate at the time of the announcement of the sale of Ci: z). Read more here.

Buying a vertebrate implant developer

On September 14, 2018, Johnson & Johnson announced the acquisition of vertebral implant developer Emerging Implant Technologies (EIT). Read more here.

Payment of compensation for defective hip endoprostheses

On September 7, 2018, Johnson & Johnson agreed to pay compensation in India to patients who suffered from the use of DePuy ASR (Artificial Surface Replacement) defective hip replacement, which was recalled eight years earlier. Read more here.

Fine of $4.69 billion for the development of cancer from J&J products in 22 women

As it became known on July 13, 2018, Johnson & Johnson Corporation was fined $4.69 billion. This is the amount, according to a jury in Missouri, the company must pay 22 women who said that due to the use of J&J products, they developed cancer. The jury's decision was unanimous, Bloomberg reports.

J&J, for its part, disagrees with the court's decision and intends to appeal, arguing that its products do not harm, and certainly not lead to the development of cancer.

Nevertheless, at the time of publication of the material against Johnson & Johnson in the United States, several thousand lawsuits have already been filed. The company is accused of fraud and hiding information that some of its products could cause irreparable harm to health. Moreover, some of the plaintiffs claim that the company's hygienic products contained asbestos dust, which is a strong carcinogen and caused^[14] cancer^[15]

Fine of $37 million for the development of cancer from baby powder

In early April 2018, Johnson & Johnson was fined at least $37 million for causing its talc-based products to develop a roar. This is far from the first such accusation, although the American company continues to deny that its products are dangerous to health.

Jurors in a New Jersey court issued a verdict that found Johnson & Johnson and French talc manufacturer Imerys guilty of selling products (including baby powder) that cause cancer.

The suing banker Stephen Lanzo stated that he developed a malignant tumor due to inhalation of microparticles of powder containing asbestos during the regular use of Johnson & Johnson talc products since birth in 1972.

The case was considered within two months. According to the court order, the defendants will have to pay $30 million to the plaintiff, as well as $7 million to his wife. Johnson & Johnson will pay 70% of the compensation, and Imerys will pay the rest.

In addition, an additional court hearing will be held in April 2018, at which it will be determined whether the companies violated the terms of the guarantee. Thus, Johnson & Johnson and Imerys can pay an additional fine.

According to Bloomberg, the verdict was the first time that a jury supported consumers who argued that Johnson & Johnson's baby powder could cause such an often fatal cancer as mesothelioma. It has been proven that getting asbestos into the body is one of the main reasons for the development of this form of cancer. Previously, about 6,600 women sued Johnson & Johnson, saying the company's powder led to ovarian cancer.

Johnson & Johnson said the company's talc products are asbestos-free and cancer-free. According to Imerys spokesman Gwen Myers, in the case of Stephen Lanzo, it was proved that contact with asbestos did not originate from Johnson & Johnson products.^[16]

C-SATS Purchase

In early April 2018, Johnson & Johnson announced the purchase of a cloud service developer to evaluate the performance of C-SATS surgeons. Read more here.

Buying Orthotaxy

On February 21, 2018, the company Johnson & Johnson announced the acquisition of a technology developer to perform surgical operations Orthotaxy as part of a plan to create a robotic support surgical platform in the field of orthopedics. More. here

2017

Obligation to pay $417 million to a woman with cancer

On August 21, 2017, the Los Angeles Supreme Court ordered Johnson & Johnson to pay $417 million to American Eva Echeverria, who had cancer after using the company's products, the news agency reports. Reuters

The victim claims that she used a talc-based baby powder created by Johnson & Johnson from 1950 to 2016, in 2007 she was diagnosed with ovarian cancer.

The woman is sure that her disease is "the result of an unreasonably dangerous and low-quality nature of talc." According to her, a positive court decision will help all Americans who have been using Johnson & Johnson products for 20-30 years.

Echeverria's lawyers said Johnson & Johnson advertised its talc-based products, though they knew from years of research that they could lead to cancer and death.

In turn, the manufacturer claims that neither scientific research nor federal agencies, including the Food and Drug Administration (FDA), have identified oncogenic properties of products that contain talc. The company intends to appeal the decision.

The obligation to pay $417 million was the largest for Johnson & Johnson in lawsuits that accuse the company of being unable to adequately notify customers of the risks of cancer when using products.

According to the court verdict, the amount of payment includes $68 million in compensation for moral damage and another $340 million in the form of a penalty penalty.

Earlier, several proceedings took place in a Missouri court, as a result of which Johnson & Johnson was fined a total of more than $300 million on similar charges of selling low-quality products that develop cancer.^[17]

$110 million fine for developing cancer from baby powder

On May 5, 2017, an American court ordered Johnson & Johnson (J&J) to pay more than $110 million to a woman from Virginia, who accused the company of supplying poor-quality produce, due to which she developed cancer. This was reported by the Reuters news agency .

The lawsuit was filed in court in St. Louis (Missouri). According to the author of the complaint, for 10 years the woman used J&J hygiene products (namely baby powder) based ​na talc, as a result of which she developed ovarian cancer, which subsequently spread to the liver.

We are preparing for additional courts this year and continue to insist on the safety of J&J children's powder, "the company said, adding that they sympathize with the victim, but the malignant formation could not have arisen due to the fault of baby powder

.

This is not the first such lawsuit against Johnson & Johnson. In February last year, the same court ordered the company to pay $72 million in compensation to the family of a woman who died of ovarian cancer. A few months later, another Missouri court satisfied the claim of another cancer patient and awarded Johnson & Johnson to pay her compensation of $55 million. Another such claim was dismissed by a jury.

Compensation of $110 million, as the agency notes, was the largest for the company out of 2.4 thousand lawsuits accusing J&J of insufficient informing consumers about the risks of cancer when using the company's talc-based products .

Funding for CNN's pandemic film

In April 2017, it became known that Johnson & Johnson sponsored a new CNN Films documentary called Unseen Enemy, dedicated to the global pandemic, FiercePharma reported.

The film talks about what each person can do to protect themselves and society from infectious diseases. As the film tells, such simple steps as vaccination, visiting a doctor, washing hands, etc., can protect humanity from serious epidemics.

For more than a week, the company has advertised the film on its social media pages such as Facebook and Twitter.

Representatives of Johnson & Johnson said that one of the company's missions is to positively influence society on health issues.

YouTube ads removed over extremist videos

In March 2017, Johnson & Johnson refused to advertise on YouTube video hosting because of extremist videos. Several more large companies have done the same.

The decision to stop posting commercials on YouTube for a while in Johnson & Johnson was explained in order to guarantee the absence of advertising of the company's products "on channels that disseminate information of offensive content." The company noted that "they take this issue extremely seriously."

Earlier, several large companies announced a boycott Google (owned by YouTube) due to the fact that their ads were shown next  to videos of xenophobic content. Among the customers who refused to place ads were a clothing manufacturer, a Marks & Spencer fast food chain, a McDonald's financial holding, the HSBC largest Great Britain retail bank, Lloyds The Guardian newspaper, a media holding AT&T telecommunication and operator. Verizon Communications

All of these companies, including Johnson & Johnson, have stopped working with YouTube due to   their brands sometimes showing alongside  extremist videos. The profit lost to Google as a result of the incident is estimated at hundreds of millions of dollars. According to analysts at eMarketer, Google's advertising revenue from YouTube in 2016 amounted to $5.58 billion.

Google issued a formal apology and promised to expand the definition of "inappropriate content," as well as change the technology and rules for advertising to empower advertisers, giving them more control over which types of clips their ads appear in.

In addition, Google has begun removing questionable content, but doing so quickly fails, as 400 hours of videos are uploaded to YouTube every minute. The company promised to simplify the possibilities of managing the service from the advertiser.^[18]

Plan to close medical supplies plant in Scotland

In March 2017, Johnson & Johnson announced plans to close the plant in West Lothian (Scotland). As a result, about 400 employees will lose their jobs.

The closure of the plant is due to the company's decision to carry out a global restructuring of the medical device business, which the company announced in January 2016. The restructuring provides for a reduction of 4-6% of the staff of the divisions (about 3 thousand people) and is aimed at strengthening innovation, optimizing the business and expanding its geographical presence.

The UK authorities are working with representatives from Johnson & Johnson and the Scottish Government to save as many jobs as possible, according to Scottish Affairs Minister David Mundell.

Lawsuit for defective breast implants

In early February 2017, Johnson & Johnson was sued for selling defective breast implants that cause health problems in some women. This was reported by the Bloomberg news agency.

The lawsuit in a Los Angeles court was directed by Rexine Mize, from whom, as a result of the use of breast implants Mentor (Johnson & Johnson bought this company for $1.1 billion in 2008 and then created a division of Mentor Worldwide), pain, nausea, skin rash and severe weakness. Her attending physician warned of serious complications that may occur due to the flow of implants.

Maize's attorneys said the Johnson & Johnson Mentor Worldwide division did not conduct the state regulators' required health risk studies for implants. Their course caused various diseases of Mayz and other women, the complaint says.

By early February 2017, only Mentor, Allergan and Sientra had Food and Drug Administration (FDA) permits to sell silicone implants in the United States after the regulator lifted a 14-year ban on the distribution of these products in 2006. According to estimates by the American Society of Plastic Surgeons, in 2016 the market for breast implants amounted to $635 million, and silicone versions are chosen by 80% of women who decide to undergo surgery.

We believe problems with Mentor silicone implants are widespread and may have affected thousands of women. This case can only be the tip of the iceberg, "said Jaime Moss, Rexin Maiz's lawyer.

Bloomberg recalls that in 1980-1990, claims for defective breast implants were very frequent, as a result of which some manufacturers became bankrupt.^[19]

Johnson & Johnson buys Actelion for $30 billion

At the end of January 2017, Johnson & Johnson announced the purchase of the Swiss pharmaceutical company Actelion for $30 billion. The transaction will cost $30 billion, taking into account the detachable R&D division of Actelion. Read more here.

2016: Buying Abbot's ophthalmic business for $4.3 billion

On September 16, 2016, the sale of Abbott Laboratories' ophthalmic business to Johnson & Johnson was announced for $4.325 billion. We are talking about the Abbott Medical Optics division, created on the basis of Advanced Medical Optics, which Abbott bought in 2009 for $2.8 billion. Read more here.

2015: 8-week paid leave at the birth of a child in the United States

In 2015, the corporation announced changes to its parental leave policy for workers in the United States. So, mothers and fathers who only gave birth or adopted a child received the right to take eight weeks of paid leave during the first year. In addition, mothers retained the opportunity to take up to 17 weeks of vacation. Management has repeatedly stressed that the employee needs to be supported in such a difficult time for him.

From 2004 to 2017, an employee issued about 40 thousand pedometers with a recommendation to take at least 10 thousand steps a day. In addition, Johnson & Johnson contracts with grocery companies that provide cafeterias in offices with healthy food.

2013: $2.5 billion in fines

In 2013, the corporation paid $2.5 billion in claims.

2011: Fines for giving bribes to doctors

In 2011, the company was fined $70 million for giving bribes to doctors.

2010:300 million product packages recalled

In 2010, according to the results of inspections, almost 300 million packages of McNeil products were recalled - a subsidiary of Johnson & Johnson, one of the plants was closed.

2000: Deaths of patients from Propulsid

The 21st century began hard for Johnson & Johnson - the company had to withdraw its Propulsid drug from the market, which brought in about one billion dollars a year before. The reason was the cases of impaired cardiac activity in the recipients and the death of some patients.

1998: Reduction of 4,100 employees, closure of 36 plants

In 1998, Johnson & Johnson announced the reduction of 4,100 people and the closure of 36 plants around the world. Thus, the company hoped to save $250-300 million, intending to invest about $700 million in research.

Despite all the problems, a record income was announced - almost $27.5 billion, which has tripled in ten years since 1989.

1987: Child Trauma Reduction Programme

In 1987, the Johnson & Johnson brand became the general sponsor of the Children's Safety Worldwide campaign, which aimed to reduce the number of childhood injuries from accidents. By 2008, the corporation managed to reduce by 45% the number of deaths from unintentional bodily harm in children under the age of 14 in the United States.

1982: Death of 7 people from cyanide in Tylenol

The company practically lost its reputation in the early 1980s.

In the 1950s, Johnson & Johnson, among its first acquisitions, bought McNeil Laboratories. In 1959, the firm developed and marketed the painkiller Tylenol. It was the first aspirin-free painkiller recommended by doctors and pediatricians.

The scandal happened in October 1982, when seven people died in Chicago after drinking Tylenol capsules. After examination, cyanide was found in the drugs.

Realizing that not only reputation is at stake, but also the lives of people, the leadership of Johnson & Johnson decided not to hush up the situation, but to talk about it as much as possible, warning people about the danger. 31 million bottles with capsules were seized from the counter of pharmacies, the company lost more than $100 million.

In addition, to everyone who has already purchased the capsules, Johnson & Johnson offered to exchange the drug for tablets, the packaging of which excluded poison from the outside.

Johnson & Johnson management attended the funeral of the victims, which was broadcast by all American media. The company was completely open to customers, journalists, police, went to cooperation and covered its every step widely. After the incident, the release of a new package was announced - vials with the control of the first opening. This soon became the rule for all manufacturers of drugs in vials.

Proving that the company had nothing to do with the poisoning, management made every effort to help the police and the FBI find the killer. A certain James Lewis sent a letter to Johnson & Johnson threatening to continue the poisoning if the company did not pay him one million dollars. Police later managed to find out Lewis was a common cheat determined to make money. He was sentenced to 20 years for extortion. The real killer was never^[20].

Despite the financial losses, the company did not want to put an end to Tylenol. Johnson & Johnson reintroduced the product to the market, doing the following:

• Placed in the newspapers coupons for $2.5, which gave a discount on the purchase. The coupon could also be obtained free of charge by calling the hotline.
• Developed a new pricing strategy that made it possible to reduce the cost of the drug by 25%.
• 2,250 vendors made a presentation to the medical community with the goal of raising confidence in the product.

Johnson & Johnson spent about $170 million to save the brand, and it succeeded. Reputation was restored, and Tylenol again became in demand. Within a few months, the company managed to return 90% of customers. By 1989, sales of the drug amounted to $500 million. James Bourke, at that difficult time at the helm of Johnson & Johnson, was awarded a place in the National Business Hall of Fame in 1990 for his honest approach and correct strategy.

1978: Purchase of German tampon manufacturer O.B.

By 1978, Johnson & Johnson had captured half of the market for feminine hygiene products and cemented success by purchasing the German firm Dr. Carl Hahn - manufacturers of O.B. tampons.

1960s: First advertisement for feminine hygiene products on TV

In the 1960s, health care controls tightened in the United States and Johnson & Johnson saw some decline in sales in the medical direction. James Bourke, who was in charge at the time, made a bid for consumer goods, namely advertising campaigns. So for the first time, Johnson & Johnson launched an advertisement for women's personal hygiene products on television, before that they could only be found in women's magazines.

1954: Baby shampoo without tears

Since the beginning of the twentieth century, the company has been producing cream, oil, and lotion for children under its Johnson's Baby brand. But revolutionary was the shampoo "No more tears," which went on sale in 1954.

The manufacturer has developed a baby shampoo without soap. The lack of some ingredients made the remedy less effective, but Johnson & Johnson assumed that the skin of children does not get dirty as much and is easier to wash, so does not require strong cleaning. Due to the lack of soap, the shampoo "corroded" the eyes. The novelty at the time became a hit - in six months it won 75% of the children's shampoo market and kept this figure until 1995.

In the 1970s, the company launched shampoo and conditioner for children. Cosmetics were designed for ages from 4 to 12 years. After advertising, studies showed that 62% of families with children became interested in new products and tried them, 87% continued to use them. The introduction of the product brought in more than $33 million in the first year.

1951: Funding drug trials on prisoners

Retin-A (tretinoin or retina) is an active ingredient in most acne and wrinkle medicines and cosmetics by the mid-2010s. Tretinoin is so prevalent in modern society that the World Health Organization calls it "one of the most important medicines needed in the basic health system." At the same time, almost no one knows that Retin-A was born as a result of forced experiments on prisoners.

After World War II, experiments on humans were banned by the Nuremberg Code. Apparently, this ban did not apply to Philadelphia. From 1951 to 1974, dermatologist Albert Kligman tested new drugs for inmates at Holmsburg Prison. He once even said that he perceives prisoners not as people, but as "hectares of skin." It was funded, CIA as well as Dow Chemical and. Johnson & Johnson

Kligman used prisoners as guinea pigs, often peeling off skin with tape, pulling out nails, pouring Agent Orange onto open wounds, giving LSD to patients and forcing people to stay indoors with radioactive isotopes. One of the many drugs developed in this way was tretinoin. How many people died from these experiments,^[21] are silent].

1943: Company Code of Ethics

Robert Wood Johnson the Younger formulated the company's code of ethics in 1943:

• ​Kompaniya is responsible to customers who use Johnson & Johnson products and services.
• The company is responsible to employees around the world and is obliged to provide them with decent compensation for work.
• The company is responsible to society and the environment, and must support charity and protect nature.
• The company is responsible to shareholders. Business should make good profits, Johnson & Johnson should experiment with new ideas.

In the middle of the twentieth century, the Work/life balance program was launched. The company offers family workers flexible working conditions: the ability to work from home, part-time employment, time off for family reasons.

=== 1932: Robert Wood Johnson the Younger - head of the company

In 1932, the company was headed by the son of one of the brothers, Robert Wood Johnson Jr. He headed the company in 1932-1963, and under his leadership, annual sales rose from $11 to $700 million. Johnson Jr. managed on the principle of decentralization, giving complete independence to units and branches. Under him, in 1944, Johnson & Johnson conducted an IPO.

1924: First European office in Britain

In 1924, Johnson & Johnson came to Europe, opening its representative office in Britain.

1921: Release of the first patch

Johnson & Johnson's breakthrough discovery was the emergence of a bactericidal adhesive plaster, which was accidentally invented by company employee Earl Dixon. His housewife wife often suffered minor cuts and burns, and then the caring husband came up with the idea of ​ ​ using a gauze patch in the middle. But the key idea was not even this, Dixon came up with the idea of ​ ​ preparing such a patch in advance, but on top so that it does not stick, lay with a cloth and roll into a reel so that the wife can quickly cut off and stick on the wound if necessary.

With his idea, he came to the leadership of Johnson & Johnson. In 1921, the first adhesive bandages were produced and sold under the world-famous trademark Band-Aid. As a reward, Earl Dixon received the position of vice president.

1919: First overseas office in Canada

Johnson & Johnson began the conquest of the world with Canada: the first branch of the corporation opened there in 1919 outside the United States.

1900: First aid for hurricane victims

At the beginning of the twentieth century, a new tradition began at Johnson & Johnson - assistance to victims of natural disasters. The first medical supplies were sent to the city of Galveston, Texas, where a hurricane occurred in 1900, due to which about 20% of residents died.

In 1906, after the earthquake in San Francisco, Johnson & Johnson donated $1,000 to the victims of the disaster, and all affected pharmacies and hospitals received $100 each.

1892: Baby Powder and the Emergence of Johnson's Baby Direction

Johnson & Johnson accidentally found a niche in which it remains the most famous manufacturer so far - personal hygiene products for children.

In 1892, the first scientific director, Frederick Kilmer, received a letter from a doctor who wrote about irritations in patients after using a patch. Kilmer advised using the powder.

At first, baby powder was only included in the kit for new mothers and was not sold separately. But women liked the product so much that they began to ask it everywhere. The company had no choice but to release baby powder on sale. So a new direction of Johnson's Baby appeared.

After World War I, Johnson & Johnson invested a lot in advertising baby powder - it became the largest advertising campaign in history. Demand for goods soared, and products began to be associated with the care of parents for their children.

1888: First aid kit issue

At the end of the 19th century, the company first released a first-aid kit with basic necessities. In the 1800s, one of the most dangerous works was carried out by railway workers: paving the way, they often received injuries. However, even basic medical care was so far away that workers died waiting for it.

Hearing from an accidental fellow surgeon about the dangerous share of railway workers, Robert Wood Johnson suggested putting the most necessary dressing in sterile boxes and storing it near workers. Before the arrival of doctors, they could save a person's life. In 1888, Johnson wrote about this to doctors who worked on the railway, and asked what the first means should have been put in such a box. After receiving a response, Johnson & Johnson released the first first first aid kit for railroad workers.

Soon the company began to produce first aid kits for home, travel, aircraft, cars.

1886: Three brothers found the company

Johnson & Johnson was founded in 1886 by three brothers from the United States - Robert Wood, James Wood and Edward Mead Johnson. The future corporation began with a staff of 14 people. They planned to produce sterile dressings for surgical operations. In the second half of the 19th century, there was a theory that most patients die from bacteria on instruments, hands, surgeon's clothes and indoors.

To begin with, Johnson & Johnson began to produce sterile cotton wool, gauze, and dressing gowns for doctors. And then she published the book "Modern Methods of Antiseptic Wound Treatment," which for many years was the only reference book on antiseptics.

Notes