Pfizer Inc. (PFE), Novartis AG (ADR) (NVS): Will a Band-Aid Be Enough for Johnson & Johnson (JNJ)’s Latest Recall?

For example, Pfizer Inc. (NYSE:PFE) recalled around 1 million birth control pills in January and February 2012. Despite the negative publicity, the stock didn’t suffer appreciably. Of course, the birth control pills — Lo/Ovral-28 and generic norgestrel and ethinyl estradiol — weren’t huge revenue generators for Pfizer Inc. (NYSE:PFE). Sales figures weren’t high enough to even provide details on the company’s SEC filings, so a negligible stock impact was to be expected.

Likewise, Novartis AG (ADR) (NYSE:NVS) had a big recall of over-the-counter medications, including Excedrin and NoDoz, in January 2012. Shares fell slightly, but Novartis recovered easily. Novartis AG (ADR) (NYSE:NVS) took a one-time charge of $120 million related to the recall. However, as with Pfizer Inc. (NYSE:PFE), the financial hit wasn’t enough to make a significant dent in the stock’s performance.

Even when there aren’t major negative effects, it’s never good when a drugmaker has to recall its products. Doing so 40 times within a span of less than five years certainly isn’t a track record to brag about — no matter how well the recalls are handled.

However, there are no indications that the recalls from this year are affecting J&J’s stock performance. Investors probably don’t have any reason to be overly concerned. But if the trend continues, J&J shareholders might ask that the company apply less Band-Aids and simply be more careful.

The article Will a Band-Aid Be Enough for J&J’s Latest Recall? originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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