Johnson & Johnson

Johnson & Johnson is a multifaceted pharmaceutical and healthcare company long established as an industry leader and a widely recognized brand. Specializing in a broad array of products ranging from bandages to cutting-edge drugs and medical devices, by the 2020s, Johnson & Johnson included over 260 subsidiary companies worldwide that employed more than 134,000 workers. Despite numerous product recalls and high-profile legal entanglements, Johnson & Johnson has remained one of the health and medicine industry's largest and most successful businesses. In 2020, the company's pharmaceutical arm, Janssen Pharmaceutica, in partnership with Beth Israel Deaconess Medical Center, developed a COVID-19 vaccine.

History and Governance

Johnson & Johnson was founded in New Brunswick, New Jersey, in 1886 by brothers Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. In its early years, the company primarily focused on wound care, surgical dressings, sterile sutures, and more. Its first major breakthrough came when it began manufacturing first aid kits in 1891. The kits, which were the first of their kind, were initially designed for use by railroad workers, but soon became popular enough to firmly cement Johnson & Johnson's public reputation and set the stage for its dramatic growth.

Johnson & Johnson is a corporate powerhouse that virtually dominates its field. The company was led by chairman and chief executive officer (CEO) Alex Gorsky from 2012 to 2022, but he had been part of the Johnson & Johnson family since 1988. As chairman, Gorsky led a twelve-person board of directors, which managed the company's strategic direction and its many subsidiary organizations. In 2022, Gorsky stepped down, and the company veteran Joaquin Duato became CEO in 2023.

Products

Over the years, the Johnson & Johnson name has come to be associated with various health and medical products. Aside from surgical dressings, first aid kits, and its other early products, Johnson & Johnson first became known for its famous Johnson's Baby Powder, BAND-AID Brand Adhesive Bandages, and more. As the company evolved, it came to include three separate divisions: consumer healthcare, pharmaceuticals, and medical devices and diagnostics.

Consumer Healthcare

Johnson & Johnson's consumer healthcare division is associated with a broad range of popular wound care, baby care, oral care, skin care, and women's healthcare products. In addition to BAND-AID bandages, the company's wound care line also includes Neosporin and other similar products. The baby care line, in addition to baby powder, includes shampoos and other baby-friendly products. Some products in Johnson & Johnson's skincare line include Aveeno, Clean & Clear, and Neutrogena. Its oral care line includes Reach, Listerine, and Rembrandt. Its women's healthcare line includes Carefree pantiliners and Stayfree feminine pads. Finally, its over-the-counter pharmaceutical line includes Tylenol, Sudafed, and Zyrtec.

Pharmaceuticals

In addition to its over-the-counter pharmaceutical line, Johnson & Johnson also produces various prescription-only medications used for treating a vast array of conditions and diseases. Some of these include Stelara for the treatment of plaque psoriasis, Remicade for treating certain inflammatory diseases, Zytiga for the treatment of some types of prostate cancer, Edurant for those with HIV/AIDS, Risperdal Consta for managing bipolar disorder and schizophrenia, Xarelto for the prevention of thrombosis following joint replacement surgery, and Duragesic for managing chronic pain.

Medical Devices and Diagnostics

Johnson & Johnson's medical devices and diagnostics division produces various products medical professionals use to diagnose and treat multiple medical problems. These products include stints and other devices used in cardiovascular medicine, blood glucose monitoring and management devices, infection prevention materials, disposable contact lenses, and surgical materials.

Recalls and Litigation

In its long history, Johnson & Johnson has endured numerous product recalls, lawsuits, and scandals. While such problems have occasionally been damaging for the company and its public reputation, it has remained extraordinarily resilient, ultimately surviving and thriving regardless of its shortcomings. Nonetheless, these issues are an important part of the company's history and central to the public's perception of its corporate image.

Johnson & Johnson's most notorious recall was tied to the popular pain reliever Tylenol. In 1982, seven people died after taking Extra Strength Tylenol laced with cyanide. Hoping to prevent any further fatalities, Johnson & Johnson recalled 31 million bottles of Tylenol. Neither the company nor law enforcement ever identified the person responsible for the incident.

Another major recall came in 2008 after consumers began complaining that some of Johnson & Johnson's pharmaceutical products had a moldy smell and sometimes contained small pieces of metal. The complaints led to a Food and Drug Administration (FDA) investigation that revealed manufacturing violations and airborne contamination at one of the company's processing plants. Ultimately, Johnson & Johnson was forced to recall 288 million products and overhaul several of its facilities.

In March 2012, Johnson & Johnson once again had to issue a Tylenol recall after a dosing problem was identified with its infant Tylenol product. Eventually, five hundred thousand units of the product were recalled.

On several occasions, Johnson & Johnson's pharmaceutical products and medical devices have caused issues that have led to legal troubles for the company. The most notable of these lawsuits arose from problems associated with metal-on-metal hip replacement systems Johnson & Johnson introduced in the early 2000s. Through the subsidiary company DePuy, Johnson & Johnson marketed the Pinnacle Hip Replacement System, the ASR Hip Resurfacing System, and the ASR XL Acetabular System as a new and improved approach to traditional hip replacement methods and devices. As these devices were used, doctors learned that their metal-on-metal design caused the cup-and-ball components to rub together and release metal ions into the bloodstream, causing metal poisoning. In addition, the devices also proved to have stability issues that often led to patients having to endure additional corrective surgeries. These problems led to numerous lawsuits that Johnson & Johnson eventually had to pay $2.5 billion to settle.

In addition to lawsuits claiming that the company had unlawfully marketed its Risperdal antipsychotic drug to older adults and children (resulting in a settlement of more than $2 billion) and repercussions from vaginal meshes that were not working properly (resulting in a settlement of over $120 million) in 2015, by early 2016 Johnson & Johnson also faced prodigious legal woes and public criticism regarding a connection between long-term use of its famous baby powder and ovarian cancer. Though the powder, primarily consisting of the mineral talc, was initially sold as a remedy for diaper rash, within decades, news outlets reported that adults had become the larger share of its users. Despite a study conducted in the 1970s that warned of the risk of a link between talcum powder and ovarian tumors, the company did not release a public warning to its female customers; further studies conducted over subsequent years continued to support the suspicion that the relationship existed. After one woman sued the company following an ovarian cancer diagnosis and lifetime use of Johnson & Johnson's baby powder, a jury found the giant guilty of negligence for failing to warn her of the potential risk, resulting in another payout of several million in damages; by that time, thousands of other women had filed similar claims. In 2018, a Missouri court ruled that the company must pay almost $4.7 billion to twenty-two women and their families who had sued regarding not having been warned of the associated cancer risk. Johnson & Johnson subsequently reformulated their baby powder and several other baby products, removing several chemicals. The company stated it was confident the product was safe for children.

In 2019, Johnson & Johnson was named in multiple lawsuits—along with several other companies—accusing the company of being partially responsible for opioid-related deaths in several counties and states. The first major trial began in May 2019 in Oklahoma. In August, the company was ordered to pay $572 million. However, the decision was appealed. In October 2019, Johnson & Johnson reached a $20.4 million settlement agreement with two Ohio counties ahead of an additional trial. The agreement allowed the company to admit no liability in the Ohio lawsuit.

In early 2025, thousands in the UK announced plans to sue Johnson & Johnson, alleging that its talcum powder products caused cancer due to asbestos contamination. Though the company became aware of the risk in the 1970s, sales in the UK continued until 2022. Around the same time in the US, the Department of Health and Human Services announced it may seek damages up to $1 billion from the company for the cost of treating cancer caused by its products.

Current Research

Johnson & Johnson continues working toward finding the best ways to diagnose, treat, and prevent diseases and disorders of all kinds. In the late 2010s and early 2020s, the company made significant advances in developing drugs for treating many conditions and new materials and devices to make surgical procedures safer and more effective.

In 2020, during the coronavirus disease 2019 (COVID-19) pandemic, Johnson & Johnson committed over $1 billion towards developing a not-for-profit COVID-19 vaccine. Through its pharmaceutical branch, Jannsen, Johnson & Johnson partnered with Beth Israel Deaconess Medical Center to develop a COVID-19 vaccine, which they began phase one clinical testing in July 2020. The Johnson & Johnson vaccine was approved for emergency use for individuals eighteen and older by the FDA in February 2021. In April 2021, distribution of the vaccine was paused after reports that six women between eighteen and forty-eight who received the vaccine had developed a rare blood clot. After further research, the vaccine resumed distribution in May.

In January 2025, Johnson & Johnson announced its intention to acquire Intra-Cellular Therapies in a $14.6 billion deal to expand its portfolio in central nervous system disorder treatments. The same year, the company highlighted its $60 billion investment in research and development to bolster its healthcare offerings.

Bibliography

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