What Do Johnson & Johnson's COntinuing 2010 Profits Say About DePuy Hip Recall Lawsuits?
You may have heard the news: Johnson & Johnson, the parent company of DePuy Orthopaedics (designer and manufacturer of the recalled metal-on-metal hip implants: the ASR XL Acetabular System and the ASR Hip Resurfacing System) posted third quarter 2010 sales of $15 billion. Johnson & Johnson also reported profits of $3.42 billion in the same quarter, despite recalls on various over the counter drugs and the DePuy hip implants. Just how much do DePuy's woes influence Johnson & Johnson's overall business? Not much, yet.
The Wall Street Journal reports that while Johnson & Johnson's sales and profits were up, its sales of medical devices rose a mere 1% to $5.92 billion dollars. To give you an impression of how lucrative a business medical implants is, it accounts for more than a third of Johnson & Johnson's total sales. Now, these aren't all DePuy sales, and obviously not its hip implants, which DePuy was quietly removing from the market for much of 2010 before the recall. On the other hand, Johnson & Jonson's sales of over-the-counter products and others fell as well.
Importantly, Johnson & Johnson did not cite the hip implant recall, any lawsuits related to it, or the shock to its public image as causes for the slight rise in medical devices sales. Instead, the company pointed to the recession: consumers are spending less, reducing sales. In particular, inability to afford elective surgeries (not the case for hip implant procedures) and fears of terminating health insurance all dampen people's willingness to buy Johnson & Johnson's products.
We can expect, though, for defective hip implant recall lawsuits to grow into the thousands as hurt recipients attempt to recover for the harm DePuy caused. That Johnson and Johnson will thrive in the long run is indisputable, but neither the company nor any of its subsidiaries should profit from sneaking their products onto the market without subjecting them to government-approved clinical trials. Johnson & Johnson needs better quality control, and worse, it can afford it with its $3.42 billion in profits.
Recipients of DePuy's defective hip implants, though, deserve justice. Although DePuy appears to be setting little aside for directly compensating the victims of its negligence via its reimbursement plan, we expect it to prepare for many lawsuits. If you have a DePuy hip implant, contact the Rottenstein Law Group for a free initial consultation to see if a hip implant lawsuit against DePuy is the right option for you.
The Wall Street Journal reports that while Johnson & Johnson's sales and profits were up, its sales of medical devices rose a mere 1% to $5.92 billion dollars. To give you an impression of how lucrative a business medical implants is, it accounts for more than a third of Johnson & Johnson's total sales. Now, these aren't all DePuy sales, and obviously not its hip implants, which DePuy was quietly removing from the market for much of 2010 before the recall. On the other hand, Johnson & Jonson's sales of over-the-counter products and others fell as well.
Importantly, Johnson & Johnson did not cite the hip implant recall, any lawsuits related to it, or the shock to its public image as causes for the slight rise in medical devices sales. Instead, the company pointed to the recession: consumers are spending less, reducing sales. In particular, inability to afford elective surgeries (not the case for hip implant procedures) and fears of terminating health insurance all dampen people's willingness to buy Johnson & Johnson's products.
We can expect, though, for defective hip implant recall lawsuits to grow into the thousands as hurt recipients attempt to recover for the harm DePuy caused. That Johnson and Johnson will thrive in the long run is indisputable, but neither the company nor any of its subsidiaries should profit from sneaking their products onto the market without subjecting them to government-approved clinical trials. Johnson & Johnson needs better quality control, and worse, it can afford it with its $3.42 billion in profits.
Recipients of DePuy's defective hip implants, though, deserve justice. Although DePuy appears to be setting little aside for directly compensating the victims of its negligence via its reimbursement plan, we expect it to prepare for many lawsuits. If you have a DePuy hip implant, contact the Rottenstein Law Group for a free initial consultation to see if a hip implant lawsuit against DePuy is the right option for you.
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