Healthy Skepticism Library item: 7252

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

JNJ: New Labelling Could Reduce Tylenol Sales
Yahoo Finance 2006 Dec 21
http://biz.yahoo.com/seekingalpha/061221/22806_id.html?.v=1

Abstract:

Johnson & Johnson said that Tylenol sales might drop following new FDA labeling regulations for the OTC analgesic. Tylenol labels will be required to to warn patients about the risk of liver damage when taken in high doses or with alcohol. Previously, the drug had been considered safer than its competitors Advil (ibuprofen) and aspirin, especially after the FDA determined that they might have the same cardiovascular risks as Vioxx. Tylenol sales increased about 10% in 2005 from the previous year. The new labeling will also affect generic forms of acetaminophen, Tylenol’s main ingredient. Analysts are still not sure how the new labeling will affect Tylenol sales. McNeil Consumer Healthcare, the JNJ subsidiary that markets Tylenol, was responsible for $2.1 billion of company’s overall $47 billion in 2004 sales. Therefore, analysts don’t expect a sales drop to dramatically impact JNJ’s performance.