The Johnson & Johnson Tylenol Controversies
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Case Details:
Case Code : BECG015
Case Length : 13 Pages
Period : 1975 - 2001
Pub. Date : 2002
Teaching Note : Available
Organization : Johnson & Johnson
Industry : Drugs and Pharmaceuticals
Countries : USA
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"We should encourage physicians to talk with their patients about all the risk factors, while at the same time, finding more ways to educate the public about this avoidable risk."
- Robert Fontana, Asst. Prof., University of Michigan Health System, talking about Acetaminophen-related liver and kidney problems.
Tylenol Deaths
In September 1982, a 12-year-old girl, Mary Kellerman of Chicago, US died after taking extra strength Tylenol for headache. Three more people, Adam Janus, his brother and sister-in-law died on the same day after taking extra strength Tylenol.
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Three more deaths were reported on the next day due to Tylenol. The news of the incident spread quickly causing a nationwide panic. Responding to the crisis, Johnson and Johnson (J&J)1 recalled 31 million bottles of extra strength Tylenol worth over $100 million from all retail stores in the US. In addition, the company offered to exchange tablets for capsules at no extra cost for all customers. According to an analyst, J&J suffered a loss of $1.24 billion due to the depreciation of the company's brand value. Tylenol's share fell from 37% of the US analgesics market in early 1982 to just 7% by late 1982. According to media reports, the sudden deaths occured because the Tylenol capsules had been laced2 with cyanide.
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The capsules had been opened and filled with 65 mg of cyanide.3 Inspite of the deaths, J&J was praised for its quick action and sincere efforts in recalling Tylenol and giving consumer safety as top priority. In 1986, J&J faced a similar crisis when yet another incident of product tampering was reported. A woman in New York died after taking a cyanide laced extra strength Tylenol capsule.
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J&J had to once again recall all the capsules. The company promised to offer Tylenol only in the tablets or caplets4 form. In 1989, J&J faced another problem when deaths were reported due to overdoses of Tylenol. Following this, there were hundreds of deaths and severe liver damages all attributed to Tylenol's main ingredient - acetaminophen. Many analysts felt that J&J's label should have been more explicit, in warning customers. According to media reports, at least 100 suits had been filed against J&J over acetaminophen poisonings between 1990 and 1997. However, despite the bad publicity and the costly legal settlements, J&J did not seem keen on warning its customers. Analysts wondered about the company which had been a role model in prioritizing consumer safety during the 1982 crisis. |
The Johnson & Johnson Tylenol Controversies
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