Tylenol Recall 2010, Children Medicine Recall 2010 Likely to Impact Sales and EPS for Johnson & Johnson
Johnson & Johnson on Tuesday has predicted that its second quarter earnings and sales are likely to take a hit in light of the recall of all non-prescription drugs for children and infants.
Some of the products include Tylenol, Motrin Infant Drops etc.
The company has said n Friday that they are withdrawing the products due to manufacturing problems. It is reported that the proportion of active ingredients in the medicines might actually be higher than the prescribed limit.
J&J Vice President for Investor Relations Louise Mehrotra said that sales and EPS are likely to take a hit as the shipment of the products has been stopped. Also, she added that there is no definite date by when it is expected to be reintroduced.
She also shared that the next level of update would be available during the second quarter conference call.
Meanwhile the company has said that the probability of any impact or side effect is very low and that the company and the FDA are still evaluating the potential for any harm. The company’s shared went down by 19 cents recently to $65.14.
