DePuy Hip Recall Takes Toll on Johnson & Johnson Finances
July 22, 2011Posted In: Johnson & Johnson updates
By The Bradley Law Firm, LLC on July 22, 2011 1:42 PM | Permalink
Johnson & Johnson has suffered a 20% drop in profits. National reports indicate that the sharp drop in profitability is due to Johnson & Johnson’s numerous manufacturing problems and product recalls. The recent DePuy hip replacement recalls are among the costly product recalls hurting Johnson & Johnson’s bottom line.
Johnson & Johnson has recalled more than 25 healthcare products since the last quarter of 2009. DePuy Orthopaedics, a Johnson & Johnson medical device subsidiary, recalled two metal-on-metal hip replacements: the DePuy ASR XL Acetabular Hip System and DePuy ASR Hip Resurfacing System. The DePuy hip replacements were implanted in 93,000 patients worldwide before they were recalled.
Johnson & Johnson’s litigation costs are eating into its ability to churn a profit. More than 1,000 personal injury and defective product lawsuits have been filed by injured patients in the United States. Patients have filed lawsuits in both federal and state courts to obtain compensation for the injuries and the financial loss associated with using DePuy hips. Reports indicate that Johnson & Johnson’s liability for DePuy defective hips may amount to more than $1 billion. Fighting hundreds of lawsuits will only cut into the healthcare corporation’s profitably in the future.
Sales in the United States were down for the massive healthcare company. Johnson & Johnson’s domestic health product sales dropped 8.5%. The product recalls were partially responsible for the drop in United States sales. Recalled products cannot be sold, causing the company to lose money. Despite the drop in profits and domestic sales, Johnson & Johnson still beat the expectations of financial analysts for this quarter. The corporation is still maintaining its own profit forecast for the year. The financial effects of its multiple product recalls were taken into account.
Johnson & Johnson hopes to counter the effects of its numerous product recalls with new products. The healthcare giant announced a new DePuy hip replacement - the DePuy Pinnacle Complete Acetabular Hip System. Johnson & Johnson is putting a new hip replacement system on the market despite the ongoing litigation over its other DePuy hips.
Contact our DePuy hip replacement lawyers today if you or a loved one had a DePuy defective hip implanted in your body. You have a legal right to obtain compensation for the injuries resulting from a defective medical device. Call 855-HIP-CLAIM (855-447-2524) for a free legal consultation. We have nationwide representation.
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Johnson & Johnson has suffered a 20% drop in profits. National reports indicate that the sharp drop in profitability is due to Johnson & Johnson’s numerous manufacturing problems and product recalls. The recent DePuy hip replacement recalls are among the costly product recalls hurting Johnson & Johnson’s bottom line.
Johnson & Johnson’s litigation costs are eating into its ability to churn a profit. More than 1,000 personal injury and defective product lawsuits have been filed by injured patients in the United States. Patients have filed lawsuits in both federal and state courts to obtain compensation for the injuries and the financial loss associated with using DePuy hips. Reports indicate that Johnson & Johnson’s liability for DePuy defective hips may amount to more than $1 billion. Fighting hundreds of lawsuits will only cut into the healthcare corporation’s profitably in the future.
Sales in the United States were down for the massive healthcare company. Johnson & Johnson’s domestic health product sales dropped 8.5%. The product recalls were partially responsible for the drop in United States sales. Recalled products cannot be sold, causing the company to lose money. Despite the drop in profits and domestic sales, Johnson & Johnson still beat the expectations of financial analysts for this quarter. The corporation is still maintaining its own profit forecast for the year. The financial effects of its multiple product recalls were taken into account.
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