J&J's loss is PRGOs gain...here is the key excerpt from J&J's release: ---------------- "One already assumed the pricing environment was tough, but J&J is suggesting it is even worse than we thought and that the pressures are not going away," Wald said.
U.S. sales of J&J consumer products, including over-the-counter medicines like Tylenol and Motrin, fell 29 percent to $1.22 billion in the quarter, hurt by recalls.
J&J has recalled more than 300 million packages of Tylenol and other consumer medicines in the past year after regulators cited grime, faulty procedures and other quality-control lapses at a plant in Fort Washington, Pennsylvania, and other factories.
In its latest big action, J&J two weeks ago recalled 50 million bottles and packages of Tylenol, Benadryl, Rolaids and other products because of lax cleaning procedures and other problems at the Pennsylvania plant, which was closed in April for a major overhaul.
In a conference call with investors on Tuesday, J&J Chief Executive William Weldon did not rule out the possibility of more recalls. But he said J&J had completed an examination of its own factories, which account for 80 percent of manufacturing output, and is now turning its sights to outside contractors.
"The vast majority (of issues) are behind us, so now we can look forward to getting the products back into the marketplace," Weldon said.
Weldon did not say when the problems will be resolved, and declined to speculate whether J&J might have to shut down another consumer medicines plant in Las Piedras, Puerto Rico, which has a history of quality-control problems.