Johnson & Johnson Feeling Effects of Hip Replacement Recall

Citing the effects of its subsidiary DePuy Orthopaedics Inc. recall of its DePUY ASR XL hip replacement as well as its continuing woes in the pharmaceutical industry, J&J earnings are off nearly 20% in the second quarter. Despite the drop, Johnson & Johnson still reported net income of $2.8 billion.
DePuy’s ASR XL hip is not the only one facing mounting lawsuits and FDA scrutiny. DePuy’s Pinnacle hip, also a metal-on-metal hip device is also facing lawsuits and an FDA review. The metal-on-metal hips, originally designed to last longer and provide more flexibility, have higher than acceptable failure rates as well as the potential for causing metallosis, a serious medical condition where the hip patient suffers from metal poisoning.