Sunday, April 20, 2014
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J&J officials scheduled to discuss company outlook Tuesday

Johnson & Johnson officials will discuss 2011 results and the outlook for 2012, amid the acquisition of Synthes, litigation and production issues.

J&J officials scheduled to discuss company outlook Tuesday

Johnson & Johnson Chief Executive Officer Bill Weldon and other top officials are scheduled to report yearly results for 2011 and fourth-quarter numbers before the stock market opens in New York on Tuesday.

The global health-care giant has been in the news lately most often for litigation and product recalls. The company is based in New Brunswick, N.J., and has several operations around Philadelphia.

Animas, one of about 250 J&J divisions, recently received a warning letter from the U.S. Food and Drug Administration regarding problems with insulin pumps.

J&J and its Janssen Pharmaceuticals subsidiary settled a court trial with the state of Texas for $158 million over marketing allegations regarding the anti-psychotic drug Risperdal. J&J has other state trials and cases pending. It is reportedly in talks with the Justice Department over federal charges.

The McNeil Consumer Healthcare plant in Fort Washington is still not sending over-the-counter products such as Tylenol to market after being closed for manufacturing problems in April of 2010.

"If you take it all into consideration, if not one product, we'd like to hear what they are going to do with the OTC division and when are they going to come to market with some of those products and are they going to spend any money to bring consumers back," Linda Bannister, an analyst with Edward Jones & Co., said Monday in advance of Tuesday's announcement and discussion.

Weldon made about $28.7 million in 2010, when Forbes estimated he was the 42nd highest paid CEO in America. Forbes estimates Weldon would be 64th for 2011.

On Halloween, Weldon collected a bit of Christmas shopping money by exercising stock options. According to an SEC filing, Weldon was running out of time on this option, which was for 298,300 shares. He was first able to cash them in on Feb. 12, 2005 and the option would have expired on Feb. 10, 2011.

The exercise price was $57.30. His shares were sold in multiple trades at prices within 44 cents of each other, with a weighted average sale price of $65.35. Using those numbers, he made $2,401,315 on the deal, before taxes.

On Jan. 17 of this year, Weldon got 7,033 shares of J&J stock, via the executive compensation plan, bringing his total to 335,623, according to an SEC filing. Using Monday's closing price of $65, Weldon's shares are worth $21,815,495.

In that same filing, which can be found here, Weldon was awarded options to buy 628,911 shares at a price of $65.37 between Jan. 18, 2015 and Jan. 17, 2022.

 

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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