Trouble Brewing At Johnson & Johnson? (JNJ)
The past week we have seen some headlines asking questions about J&J’s “secret, unpublicized” recalls of adult Mortin and Tylenol. On Tuesday Reuters reported The House Committee on Oversight and Government Reform obtained an email from a the FDA to a J&J executive authorizing the recalls. Looks like this issue is trying to be kept hush hush…
(Reuters reports) “The committee said the agreement purportedly allowed McNeil to forgo a publicly announced formal recall of the Motrin product and to instead conduct a “soft market withdrawal.” The committee for months has been examining what it describes as the “phantom recall” of Motrin, in which contractors quietly bought up stocks of the painkiller from store shelves.”
“The FDA, when it learned McNeil had hired contractors to secretly purchase product off the shelves, advised the J&J consumer unit “to do a full recall, which the company agreed to initiate in July 2009,” Bobo said.
“(The) FDA then voiced its objections about McNeil’s ‘phantom recall’ activities to the senior leadership of Johnson & Johnson in a February 2010 meeting,” Bobo said.”
Could JNJ this develpment be a smoking gun? possibly, J&J stock is currently trading 62.10 .