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Will Consumers Give J&J Brands Another Chance?

Siegel & Gale's Alan Siegel tells Parija Kavilanz that the shortages of Johnson & Johnson's Tylenol, Motrin and Benadryl due to recalls and a factory closing is putting the brands in jeopardy. "The definition of a 'brand' is consistency in quality, safety and efficacy ...," he says, pointing out that the company will have to shake off the stigma now attached to these brands.

Other analysts see an opportunity for generic rivals. Indeed, Doug Booth, CEO of a division of Iceland-based Actavis Group, the fourth-largest maker of private label drugs, says his company has ramped up its manufacturing to five times the capacity versus earlier this year, for clients such as CVS, Walgreens and Wal-Mart.

Still other observers, such as Brand Keys' Robert Passikoff, say we shouldn't count J&J down for the count just yet, even as rivals steal some share in the short term. The venerable brands have a high degree of loyalty, he says. "It's six times more likely that consumers will give them the benefit of doubt and buy them again," he avers.



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