It’s another sign just how much J&J is fallen – a second Congressional summons for J&J CEO William Weldon. Good old Billy Weldon bagged out last time by scheduling an elective surgery. This time around, Congress has made it known that individuals with disabilities will be accommodated. In other words, Weldon can’t get out of this a second time. So, it’ll be interesting to see if Weldon shows up on June 30, or whether J&J will continue to give the big middle finger to Congressional oversight.
From my perspective, I think there’s a 0% chance of Billyboy Weldon showing up on June 30th. However, I think there’s a better than average chance of Weldon actually showing up at some point this summer – if he manages to remain CEO.
Meanwhile, J&J has announced that it won’t be returning to manufacturing anytime soon. The company has announced that it won’t begin manufacturing at the Fort Washington facility this year – forgoing about $700 million in revenue. UBS slashed its earnings estimates for J&J through 2010 and 2011 based in part to McNeil’s woes as well as credibility concerns with J&J’s products.
J&J will not provide a timetable for returning the Fort Washington facility to normal production. The good news for J&J is that they’ve got two weeks to figure it out – final assessments are due to the FDA on July 15. Meanwhile, J&J’s McNeil unit has made token steps which include sacking some low level managers and hiring an outside firm to monitor the company. (Of course, the last time J&J hired an “outside consulting firm” it was to conduct its infamous Phantom Recall.)
J&J’s plans pertain only to the Fort Washington facility and does not address similar manufacturing failures at other J&J facilities.
And, if it couldn’t get bad enough, CNNMoney is reporting that J&J’s serious manufacturing woes date back seven years – to 2003.
