Johnson & Johnson Spin UnSpun Mentor’s PurTox Edition
UPDATED: Perhaps Botox is on the Block
Per the terms of the agreement, Mentor and Medicis will form a joint physician loyalty program called the M2VP Program (Medicis-Mentor Valued Partner Program), which will include the MENTOR® line of breast implant products for the aesthetics (non-reimbursed) market and Medicis non-reimbursed facial aesthetics products, including neurotoxin, fillers and skin care. The agreement has a five-year term and is for the U.S., subject to any geographical expansion that may be agreed upon by the parties.
“We believe the creation of a combined loyalty program allows both organizations to deliver more value and choice to plastic surgeons operating in an increasingly competitive market,” said David J. Wilson, Worldwide President, Mentor Worldwide LLC. “By incorporating the best features of other programs, we’ve created a premier loyalty program that includes Mentor’s leading breast implant products – and provides product savings and benefits to our customers.”
Johnson & Johnson said it was ending its efforts to bring to market a rival drug to Allergan Inc’s popular Botox anti-wrinkle treatment.
Botox is Allergan’s biggest selling product with annual sales of more than $2 billion and little serious competition.
And Johnson & Johnson spent $1.07 billion in cash to buy Mentor Corp., a supplier of breast implants and other cosmetic products.
“After careful consideration, our Mentor business has decided to discontinue its neurotoxin program, commonly known as PurTox, in order to focus on its core breast surgery business, where we are an established leader and see greater opportunities to benefit patients and grow our business,” J&J spokesman Thomas Sanford said in an emailed statement.
January 2013 that it planned to submit the drug for approval by the end of the year after working through “some regulatory issues.”
Questions media and the public need to ask:
1. What consideration forced a “has decided” from Johnson & Johnson? This is usually PR spin and lack of transparency coupled with inconsistent and contradictory words to actions usually proves there’s more to a story.
Buying a company for $1billion=expensive
Walking away from a $2billion annual industry after spending $1 billion=is inexpensive?
When does a company pay over 1 billion for another company and walk away from a 2 billion industry?
Yes breast implants are a sizeable part of Mentor but that’s still quite a loss for Johnson & Johnson.
And “some regulatory issues”:
Remember in a previous post Is a 510 (k) a Race? Sort of Johnson & Johnson responded to the voluntary pulling of some of their KY Product this way:
“As part of ongoing and detailed internal reviews we decided that these products may require submission of new data and application for a new medical device” approval, McNeil (a division of Johnson & Johnson) spokeswoman Samantha Lucas wrote in an email response to questions. “Because we decided against submitting new paperwork, we recalled the small amount of product that was still in the market.”
Filling out paperwork for a product already on the market=hard?
but later that same year: Johnson & Johnson sold KY-Brand to Pharmaceutical giant Reckitt Benckiser
Filling out paperwork to sell the division of the company=easy?
That is inconsistent and contradictory language like we also saw with PurTox.
Now back to PurTox:
Ending the PurTox development program will result in the elimination of a small number of jobs in the United States, the Johnson & Johnson said.
It would appear that Johnson & Johnson PR is BIG on using SMALL to diminish importance (like in KY when they pulled a small amount of product (in reality pulled millions of units) and again here with a small number of jobs, do we believe them?)
And just this week it was announced Johnson & Johnson Q1 profits are up 8% in part because of new drugs (guess PurTox isn’t one) and cutting production and administrative expenses (does that mean job loss for people?)
2. And is it possible under characteristics of The Sociopathic Business Model™ did Johnson & Johnson:
-Viewed their employees as accomplices who became victims?
-Not recognize the rights of others? (using the term small number)
-Demean and insult their employees? (small)
-Show a lack of accountability?
-Create hopelessness in the victim?
-Create an unhappy an unproductive work environment? Are others within the Mentor division of Johnson & Johnson worried about job loss? Are they now motivating employees through fear?
And what we don’t know but could ask off of fact based evidence over time:
-Was unethical behavior involved in the Company’s decision to pull PurTox? Or did someone else or something else like the government decide for them?
-Was there pathological lying?
-Were they irresponsible?
It will be curious to see if PurTox goes by the way of the KY-Brand and gets sold off or not. Reports show FDA approval was expected sometime in 2009 or 2010 as well as there was great surgeon interest.