The U.S. Department of Justice announced that McNeil Consumer Healthcare, a subsidiary of Johnson & Johnson, pleaded guilty to selling children's versions of over-the-counter medications such as Tylenol and Motrin that contained contaminants including nickel and chromium particles. The company also agreed to pay $25 million to settle the case and improve safety measures before reopening its manufacturing facility in Fort Washington, Pa.
A lawsuit filed by the AIDS Healthcare Foundation accuses Johnson & Johnson of not offering required prescription drug discounts. In this latest fight over the 340B Drug Pricing Program, the foundation says the drugmaker did not reclassify certain drugs and was overpaid by more than $2 million from 2005 to 2013.
Johnson & Johnson is turning its McNeil Consumer Healthcare unit into a separate organization to focus on improving "quality and compliance, and the critical task of restoring" over-the-counter brands affected by a string of recalls. The remaining divisions of J&J's consumer group will be reorganized into four regions, including North America and Asia-Pacific. The changes will take effect Monday.
Johnson & Johnson plans to seek U.S. approval for almost 12 drugs by 2013, the company told investors. Treatments lined up for submission include hepatitis C drug telaprevir, an HIV medicine labeled TMC 278 and a pill for premature ejaculation named Priligy in Europe.
Johnson & Johnson reported an 8.5% increase in sales for its fourth quarter, fueled by sales of its consumer products, pharmaceuticals and medical devices. Sales of devices and diagnostics increased by 7.2%, though drug-coated stent sales fell 15%.