As J&J Focuses Less on Consumer Products and More on Medical Devices & Rx Drugs, Its Image Gets More Tarnished

JNJ has always positioned itself as a "consumer" products company, but its main business is pharmaceutical drugs and medical devices. According to a Q2 2015 financial statement (here), Rx products account for 45% of the company's sales, medical devices 36%, and consumer products - for which the company is loved - only 19% (see chart on left).

In Q1 of 2012 the percentages were 37%, 40%, and 23% (see here).

I am interested in this because of data regarding J&J's PROFITS that I came across in a article by journalist Steven Brill today in The Huffington Post Highline titled "America’s Most Admired Law Breaker."

That article is part of a 15-part "DocuSerial" detailing how Johnson & Johnson took an anti-psychotic drug, Risperdal, initially intended only for the treatment of psychotic disorders, and put it in the hands of children and the elderly in violation of FDA restrictions. Of course, I've written about J&J's illegal activities many time now here on Pharma Marketing Blog (read, for example, "How J&J's Alex Gorsky Tried to Negotiate a Smaller DOJ Fine").

But what about J&J's profits? Where do they come from? What's the impact on the company's reputation?

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