J&J Cuts 3,000 Jobs in Medical Device Sector Due To Weak Performance
The workforce cutback represents more than 2 percent of J&J employees globally and 4-6% of medical device workers.
“These actions recognize the changing needs of the global medical device market,” said Gary Pruden, chairman of Johnson & Johnson’s medical device unit.
Specifically affected are medical devices in the orthopedics, surgery and cardiovascular business. Not affected are medical devices for consumer use or pharmaceuticals. Medical devices have been noted as one of the weaker performing sectors for investors.
AP reports (here) J&J has been trying to revive sales of DePuy hip implants and Ethicon surgical mesh. By October sales dropped 7.3%. “Restructuring is a positive step,” says a Wells Fargo analyst.
The company will discuss its fourth quarter earnings for 2015 when it meets and releases those figures January 26. The company will have its annual shareholders meeting April 28,2016 in New Brunswick, New Jersey. See more here.
Johnson & Johnson’s Ethicon division represents the highest number of pelvic mesh cases consolidated in federal court in Charleston, WV. As of today, there are 30,665 defective product lawsuits consolidated in this court. The fourth quarter report will tell investors how many additional lawsuits are filed in states courts and around the world from Ethicon’s mesh. In some cases, juries have found the pelvic mesh to be defective. Specifically, the TVT-O (transvaginal tape obturator) remains on the market.
In June 2012, the company quietly removed four meshes from the market, including the Prolift, one of the largest pelvic meshes used to treat pelvic organ prolapse and one of the most difficult to remove.
The current report (here) reads:
About Johnson & Johnson Medical Devices Companies
Having made significant contributions to surgery for more than a century , the Johnson & Johnson Medical Devices Companies are in the business of reaching more patients and restoring more lives. The group represents the most comprehensive surgical technology and specialty solutions business in the world, offering an unparalleled breadth of products, services, programs and research and development capabilities directed at advancing patient care while delivering clinical and economic value to health care systems worldwide.
J&J Announces Cuts
J&J Announces Fourth Quarter, January 26, 2016
J&J Webcast Jan 26, 2016 Alex Gorsky will speak