J&J's return to market of several iconic OTC brands a success

NEW BRUNSWICK, N.J. — McNeil Consumer Healthcare has returned approximately 75% of its OTC portfolio to store shelves, Alex Gorsky, Johnson & Johnson chairman and CEO told analysts Tuesday. "Growth in the consumer segment was achieved in part as a result of our success in restoring a reliable supply of OTC products to the United States marketplace, and we’re starting to see them gain traction as well, once they’re back in the market," he said. Gorsky outlined a number of brands that have grown J&J's U.S. OTC business by 21.6%, including Neutrogena, Listerine, Tylenol and Motrin. 

"And we’re going to continue backing these brands with strong scientifically based and endorsed claims to differentiate them in the marketplace," he added. "We’re also investing in things like cross channel marketing across TV, print, social media, to really support their launch and do it in a benchmark way."

Customers have not held J&J's production woes of several years ago against the company as it brings each brand back to market in a big way, Gorsky suggested. "We still have a substantial volume that we would have to make up to get back to the earlier volumes that we saw, but every time we introduce the product to the market, Extra Strength Tylenol, if you look at Children’s Tylenol, Children’s Motrin, pediatric, we’re seeing customers respond," he said. "The other factor is, though, we’re very pleased with the partnership that’s been taking place with our major trade partners. So all the major outlets have been enthusiastic about working with us to get these brands back on the shelves."