Johnson & Johnson began as a manufacturer of surgical dressings in 1886. Since then, the company has embarked on a process of diversification with the business now operating as three divisions: Pharmaceutical, Consumer, and Medical Devices and Diagnostics.
A number of targeted acquisitions over the years have helped the company to diversify its business and become a key player in the health care field. With regards to OTC pharmaceuticals, there have been a number of key purchases. These include the acquisition of McNeil Laboratories in 1959 and Pfizer Consumer Healthcare in 2006.
The over-the-counter (OTC) pharmaceuticals market has witnessed only modest growth over the past few years. Despite some sectors growing faster than others, the overall market is mostly stable.
Although analgesic brands have often been branded the most recognisable in the industry, cold and cough remedies benefit from the highest levels of brand loyalty. However, the major companies that operate within the market have the financial power to push their brands, in any sector, through effective marketing campaigns.
The market is dominated by large multinational companies that have multiple global interests. These companies usually have an extensive research and development (R&D) budget, paving the way for product innovation and market expansion.
Johnson & Johnson has been the leading brand in the OTC pharmaceuticals market in the US for many years now. The acquisition of Pfizer Consumer Healthcare in 2006 led to the company's market share growing from 9% to 14% of the market.
In recent years the company's OTC Pharmaceuticals & Nutritionals division has faced a series of problems regarding product quality. These problems have mainly surrounded the McNeil Healthcare business, which manufactures OTC medicines. As a result the company has had to recall a range of products starting with Motrin tablets in July 2009.
For more information on the Johnson & Johnson, see the latest research: Johnson & Johnson OTC Pharmaceuticals
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