Drug major Johnson & Johnson (NYSE:JNJ) Chairman of the Board, Chief Executive Officer Alex Gorsky in a wide ranging interview with Carol Massar of Bloomberg TV on its “Bloomberg West” program shared his firm’s road map to grow the business over the next few years via strategic acquisitions and his plans to streamline operations by going in for divestures to help increase share holder value.
The $291.17 billion market capped Johnson & Johnson (NYSE:JNJ) has a complex business which is divided into three major segments. Of these segments, the interviewer kick-started her interview by quizzing Mr Alex Gorsky about the status of it’s under pressure Consumer segment business, which had come under public scrutiny for recall of products.
Mr Gorsky went on to underline that Johnson & Johnson (NYSE:JNJ) “is very committed to the consumer segment” and the segment “plays an important role in the company’s business”. He then went on to express his happiness at the steps taken by the company to “remediate the over the counter products in North America” by stating that, “I am very impressed with the progress that the division has made over the past few years.”
The Chief executive then went on to spell out how Johnson & Johnson (NYSE:JNJ) operates in a different manner today in comparison to the 2008 and 2009 time frame, when the drug major was hit by a spate of product recalls. The changes listed out include the complete revamp of the “supply chain and quality measurement systems.” The changes centered on more “centralized operations of the quality department, standardization of the manufacturing process and increased checks and balances across the organization”.
Mr Gorsky then went on to acknowledge that, “We are seeing results of those hard work and efforts now. We saw an impressive 9 percent increase in the OTC numbers in North America this quarter.”