Costs Mount for DePuy ASR Hip Recall Program as DePuy Sees U.S. Sales Drop

Johnson & Johnson reported that litigation associated with the DePuy ASR Hip recall and acquisition of Synthes had a big impact on fourth quarter and full-year 2011 financial reports, according to a Johnson & Johnson news release.

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Reconciliation of non-GAAP financial measures related to the DePuy ASC Hip recall program amounted to $412 million in the fourth quarter, up from $280 million in the fourth quarter of 2010. At the 12 months end, the costs amounted to $521 million, up from $280 million in 2010.

The company reported fourth quarter worldwide revenue of $678 million, which is a 5.9 percent increase over the same period in 2010. However, domestic sales dropped 4 percent to $775 million. For the full year, DePuy reported $5.8 billion worldwide, which was a 4 percent increase over last year. Domestic sales for 2011 experienced a 1.7 percent decrease to $3 billion.

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