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J&J, A Manufacturing Switch & Shampoo Shortages
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By Ed Silverman // July 18th, 2011 // 11:07 am
Once again, Johnson & Johnson is running low on a product due to a manufacturing issue. This time, the Nizoral anti-fungal shampoo - the only over-the-counter shampoo that is a salve for dandruff and psoriasis - has been out of stock for weeks and the health care giant is blaming a switch in manufacturing facilities that will keep supplies diminished for the rest of the year.
The 4 oz. bottle usually sells for $9.36 at Wal-Mart, which charges $14.27 for the 7 oz. version. Both are out of stock (look here) and online forums have been filled with fretting (see this and this). Meanwhile, the differering size bottles of shampoo are fetching $39.97 and $67.96, respectively, on Amazon (peek here). Prices on eBay vary, but are more reasonable, although the bidding for a 4 oz. bottle is up to $19 as of this morning (see here).
A company spokeswoman insists this is not related to the sort of production problems that have plagued Johnson & Johnson and led to countless recalls of tens of millions of products - from such over-the-counter stalwarts as Tylenol, Benadryl and Motrin to hip replacement devices, contact lenses, syringes and prescription drugs.
Some recalls have been blamed on trace amounts of TBA that has caused odors in bottles. The chemical, known formally as 2,4,6 tribromoanisole, is used in wooden pallets that transport and store packaging materials and the problem has plagued J&J for some time (see here and here). But there have been a host of serious manufacturing gaffes that were uncovered in numerous FDA plant inspections and so-called 483 reports that detailed the problems (see here).
The failures led to a consent decree (read this) and calls for J&J ceo Bill Weldon to resign, although he refused to do so (look here and here). However, J&J did reorganize its McNeil Consumer Healthcare unit, which is struggling to retool a Fort Washington, Pa., plant and play musical chairs with production (see this).
The Nizoral episode, though, is reminiscent of the Tampon shortage that occurred earlier this year and, as with the shampoo, sent consumers streaming to online sites where a black market had formed. Perhaps the only difference this time is that, when asked, J&J was willing to provide an explanation for interrupted supplies. Nonetheless, Denice Torres, who now heads the consumer unit, is grappling with yet another product shortage that may make it difficult to restore consumer confidence in the health care giant and, as with her customers, is likely to leave her itching for solutions.
7 Comments
By Ed Silverman // July 18th, 2011 // 11:07 am
Once again, Johnson & Johnson is running low on a product due to a manufacturing issue. This time, the Nizoral anti-fungal shampoo - the only over-the-counter shampoo that is a salve for dandruff and psoriasis - has been out of stock for weeks and the health care giant is blaming a switch in manufacturing facilities that will keep supplies diminished for the rest of the year.
The 4 oz. bottle usually sells for $9.36 at Wal-Mart, which charges $14.27 for the 7 oz. version. Both are out of stock (look here) and online forums have been filled with fretting (see this and this). Meanwhile, the differering size bottles of shampoo are fetching $39.97 and $67.96, respectively, on Amazon (peek here). Prices on eBay vary, but are more reasonable, although the bidding for a 4 oz. bottle is up to $19 as of this morning (see here).
A company spokeswoman insists this is not related to the sort of production problems that have plagued Johnson & Johnson and led to countless recalls of tens of millions of products - from such over-the-counter stalwarts as Tylenol, Benadryl and Motrin to hip replacement devices, contact lenses, syringes and prescription drugs.
Some recalls have been blamed on trace amounts of TBA that has caused odors in bottles. The chemical, known formally as 2,4,6 tribromoanisole, is used in wooden pallets that transport and store packaging materials and the problem has plagued J&J for some time (see here and here). But there have been a host of serious manufacturing gaffes that were uncovered in numerous FDA plant inspections and so-called 483 reports that detailed the problems (see here).
The failures led to a consent decree (read this) and calls for J&J ceo Bill Weldon to resign, although he refused to do so (look here and here). However, J&J did reorganize its McNeil Consumer Healthcare unit, which is struggling to retool a Fort Washington, Pa., plant and play musical chairs with production (see this).
The Nizoral episode, though, is reminiscent of the Tampon shortage that occurred earlier this year and, as with the shampoo, sent consumers streaming to online sites where a black market had formed. Perhaps the only difference this time is that, when asked, J&J was willing to provide an explanation for interrupted supplies. Nonetheless, Denice Torres, who now heads the consumer unit, is grappling with yet another product shortage that may make it difficult to restore consumer confidence in the health care giant and, as with her customers, is likely to leave her itching for solutions.
