The Johnson & Johnson Tylenol Controversies

Inspired by the discoveries5 of Sir Joseph Lister (Lister)6, Robert Wood Johnson (Robert) and his two brothers7 formed a partnership firm to nurture the idea of a practical application of Lister's discoveries.Robert planned to enter the surgical dressings industry with a new type of readymade, sterile, wrapped and sealed surgical dressing in individual packages and suitable for instant use without the risk of contamination. In 1887, the trio converted the partnership into a company and the company was incorporated as Johnson & Johnson. Over the years, J&J established itself as a leading player in the healthcare industry.

The company introduced revolutionary surgical dressings, acquired established companies8, and expanded internationally. In 1956, Tylenol became a part of J&J, when the company acquired McNeil Laboratories9. Tylenol was sold as an over-the-counter (OTC)10 drug.During the 1960s, J&J aggressively promoted Tylenol among doctors and pharmacists as an alternative pain reliever. Soon, the product became very popular among consumers, as it was less irritating to the stomach as compared to other OTC analgesics11 like Aspirin or Ibuprofen (See Exhibit I). In 1974, J&J acquired StimTech, a healthcare company selling a unique product - Transcutaneous Electronic Nerve Stimulator (TENS).