Johnson & Johnson is returning Tylenol Cold and Flu Severe caplets to the market in the coming weeks. The over-the-counter remedies were recalled along with a large number of its other products in 2009. The product’s return to the market has been well-timed to coincide with the upcoming cold and flu season, which could be an attempt to recover from the poor timing of the initial recall. As the Boston Globe notes, the recalls were unfortunately timed: in the middle of a recession and in the absence of trusted brands like Tylenol, many people switched to cheaper generic brands and may be content to stay with them.
Problems with manufacturing led J&J to shut down one of their main plants for repairs and upgrades. The company has issued around two dozen product recalls since problems began in September of 2009. Among the recalls were over 300 million non-prescription medications, many prescriptions, artificial hips, contact lenses and blood glucose tests. The problems ranged from a musty or moldy smell in certain products to the discovery of metal shavings in some of the children’s formulas, as well as incorrect dosages of active ingredients and artificial hips that wore out quite quickly.
While it was a necessary move for quality control, the company estimates they lost $900 million in potential sales last year, and most of their Tylenol products are still not back on shelves. Wells Fargo estimates they will lose another $1 billion this year while they move toward recovery. Despite the huge financial hit Johnson & Johnson took over these past several months, company executives remain positive. J&J’s Chief Financial Officer (CFO), Dominic Caruso, assured investors not to be concerned. “Products are coming back on the market,” he said at a conference last week. “The business is recovering.”
Tylenol Cold and Flu Severe caplets are reportedly being manufactured in Italy for the time being, as they are still in need of places to manufacture products while upgrades are made. It is due to hit shelves “within weeks,” according to an internal announcement to Johnson & Johnson employees. A grape-flavored children’s Tylenol returned to stores at the end of 2010, and antacid Pepcid Complete is due back before the end of this year, while recalled varieties of Sudafed, Benadryl, and Tylenol Sinus are expected to make their improved return in 2012. The FDA requires an independent agent to inspect every recalled product for quality and safety before it can go back on the market.
