Johnson & Johnson (NYSE:JNJ) is also having a tough day. After the government pushed for stronger labeling on drugs, J&J has added a new, bright red warning label on its Tylenol brand of medication to caution consumers of the possible fatal risks of taking too many of the pills. Tylenol operates in a lucrative market: Over-the-counter drugs with Tylenol’s active ingredient, acetaminophen, pulled in more than $1.75 billion last year, per data from research and information service firm Information Resources.
However, it’s unlikely that this will shake Tylenol’s sales much, and even if it did, Johnson & Johnson (NYSE:JNJ)’s consumer business is its smallest and slowest-growing business division by sales. The segment posted growth of just 1.6% over the year’s first half — far behind what the company’s pharmaceutical and medical-device and diagnostics branches did. Consumer sales are an important part of J&J’s stable business model, but they’re also unlikely to see the growth of an area such as blockbuster drugs. Investors shouldn’t get too worked up over this new turn of events.
The article Microsoft Falls as the Dow Loses Ground originally appeared on Fool.com and is written by Dan Carroll.
Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Apple and Johnson & Johnson. The Motley Fool owns shares of Apple, Johnson & Johnson, and Microsoft.
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