More Recall Troubles for Johnson & Johnson

On Tuesday, Johnson & Johnson's (NYSE: JNJ  ) McNeil Consumer Healthcare division announced that it is expanding a recall from January, also in addition to the recall from last May. The January recall included millions of Tylenol and Motrin products that had an "unusual moldy, musty or mildew-like"  odor. The recall is apparently expanded because some products were accidentally left out of the initial recall in January.

To make matters worse, McNeil recently added four additional product lots of Benadryl allergy ultratab tablets and one product lot of extra strength Tylenol rapid-release gels.

The recall expansion is unfortunate for drugstore retailers like CVS Caremark (NYSE: CVS  ) and Walgreen (NYSE: WAG  ) , which are having trouble replenishing supplies of Motrin and Tylenol. As CNN reports, a spokesman for CVS Caremark said, "After that January recall, McNeil has faced a replenishment issue for these drugs, and it has affected all retailers." In addition, a Wal-Mart Stores (NYSE: WMT  ) spokesperson said that the discounter had seen a bit of a "tightening of supply" after the recall, but "we're actually in better shape than we were immediately after the recall for those products."

Have you witnessed any supply problems firsthand? Let us know in the comments box below.

Claire Stephanic does not own any of the companies mentioned. Wal-Mart Stores is a Motley Fool Inside Value recommendation. Johnson & Johnson is an Income Investor pick, and Motley Fool Options has recommended buying calls on its shares. You can read The Motley Fool's disclosure policy here.


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