J&J Overhauling Unit Amid Thousands of Recalls

By Markets FOXBusiness

Johnson & Johnson (JNJ) is revamping its consumer products business in an effort to resolve manufacturing issues that led to thousands of recalled bottles of cold medicine.

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The company is fashioning its McNeil Consumer Healthcare unit, which sells products such as Tylenol, Benadryl, Motrin and Zyrtec, with new leadership, according to the Wall Street Journal, citing a person familiar with the matter.

Starting on April 4, the unit will become its own organization, overseen by Patrick Mutchler, who is 35-year J&J veteran with experience in its consumer business.

Others joining the team including Marc Robinson, who has overseen J&J’s global over-the-counter business, and Peter Luther, formerly the president of McNeil Consumer Healthcare.

The group has issued more than a dozen recalls since late 2009 due to manufacturing problems at the facility, with complaints ranging from a musty odor in Tylenol bottles to metal shavings in some children’s medicine bottles. Its latest recall, issued on Wednesday, involved 34,000 Tylenol bottles.

The New Brunswick, N.J.-based company, which had to shut one of its manufacturing facilities because of the issues, says the recalls cost it some $900 million in sales last year.

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