{"id":6837,"date":"2010-05-05T14:37:00","date_gmt":"2010-05-05T14:37:00","guid":{"rendered":"http:\/\/www.pharma-mkting.com\/trouble-in-house-that-mcneil-built-why\/"},"modified":"2019-02-21T01:21:51","modified_gmt":"2019-02-21T01:21:51","slug":"trouble-in-house-that-mcneil-built-why","status":"publish","type":"post","link":"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/blog\/trouble-in-house-that-mcneil-built-why\/","title":{"rendered":"Trouble in the House that McNeil Built: Why Drug Company Silos are Useful"},"content":{"rendered":"
<\/a><\/div>\n

Marc Monseau, head of corporate communications at Johnson & Johnson (J&J or JNJ) and contributor to the JNJBTW Blog, often says that JNJ is not a pharmaceutical company. He likes to think of it as a healthcare company.<\/p>\n

But I think of JNJ as a pharmaceutical holding company, by which I mean it holds several separate pharmaceutical companies under its corporate umbrella. Each one a “silo” of sorts.<\/p>\n

The advantage of this type of organization is that the Johnson & Johnson name and brand remain untarnished among consumers even when one or more of its “units” breaks the law or fails to protect consumers from tainted products. <\/p>\n

One such unit or division is McNeil. There’s Ortho-McNeil Pharmaceutical LLC and Ortho-McNeil-Janssen Pharmaceuticals, which markets and sells Rx products such as Topamax. And there’s McNeil Consumer Healthcare, which markets and sells over-the-counter products such as children’s Tylenol, Motrin, etc. <\/p>\n

Both of these J&J\/McNeil “units” are in the news these days. Ortho-McNeil Pharmaceutical and Ortho-McNeil-Janssen Pharmaceuticals were fined a total of $81.5 million for misbranding and illegally marketing Topamax (see “J&J to Pay $81 Million, End Federal Cases on Topamax”<\/a>). Topamax is approved only for treating epilepsy, but BNet author Jim Edwards, points out that the J&J companies “promoted Topamax for such a wild range of conditions [eg, weight loss], based on such thin evidence, that it was impossible not to notice that many of them were off-label” (see here<\/a>).<\/p>\n

Meanwhile, McNeil Consumer Healthcare has been cited AGAIN for bad manufacturing processes. I wrote about this in the past — see “Social Media Vs. Social Responsibility: J&J Fails Crisis Management 101<\/a>.” McNeil apologized back in January, 2010 and is now apologizing again AFTER FDA issued a report (here<\/a> and here<\/a>).<\/p>\n

Although news stories mention the J&J name in headlines, when all is said and done, the J&J brand image among consumers will remain unsullied for the most part, IMHO. Which suggests that “silos” works! Other drug companies may not have the same corporate structure as does J&J, but they are just as “siloed” — by brand! So, consumers remember Vioxx, but often forget that it was marketed by Merck, which lately gets a lot of kudos for Gardasil. <\/p>\n

I’m not sure what the point of this is other than that drug company silos can be a useful strategy. Of course, siloing also can lead to failures to communicate (see “Is Your Brand a Digital Genius or a Feeble-Minded Idiot?<\/a>“).<\/p>\n","protected":false},"excerpt":{"rendered":"

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