We're getting a little closer to understanding how much Johnson & Johnson's
The plant, which makes about 40 different versions of children's medicines, produced drugs that brought in about $650 million annually in recent years. Johnson & Johnson's revenue last year topped $62 billion, so we're talking about a relatively small fraction of sales even if the plant has to stay closed for an entire year. Add in a few million to rectify the problems and maybe a few more employees to oversee operations, and we're still not talking about much of a hit to the bottom line. Protection is one of the joys of being diversified.
On the other hand, Perrigo
While the plant closure may not be a big problem for Johnson & Johnson directly, there's still the question of how much this will hurt Johnson & Johnson's brand long term. If the recall causes consumers or doctors to start questioning the quality of Johnson & Johnson's other products, the company could be in serious trouble. How many people are passing up the BP
While these hits are relatively small for the oil giants and J&J -- so far -- reputation is important. Johnson & Johnson managed its tainted Tylenol scare quite well, and the depressed price that it led to turned out to be an excellent time to buy. I think there's a good chance Johnson & Johnson can have a repeat performance, but take your lead from the company and don't put all your eggs in that basket.
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