Johnson & Johnson recently announced that it had set aside about $1 billion to deal with potential settlements and litigation related to the recall.
Interestingly, just weeks after this announcement, the president of DePuy Orthopedics submitted his resignation . David Floyd, who has held the position since 2007, will be leaving the company at the end of March, 2011. DePuy has declined to release any specific reasons for the departure, only that he will “pursue other interests.”
Last year, DePuy Orthopedics generated $5.59 billion in sales. Of that, 9.1 percent total revenue went to Johnson & Johnson, according to data compiled by Bloomberg News. The costs and settlements are predicted to cut significantly into the companies’ profits. So far this year, Johnson & Johnson shares have declined 2.3 percent.