Summary
Johnson & Johnson (JNJ) announced on June 15, 2011, that its subsidiary, Cordis Corporation, will incur a significant after-tax restructuring charge estimated between $500 million and $600 million in the second quarter of 2011. This charge is a direct result of strategic changes within Cordis's cardiovascular business, aimed at streamlining operations and refocusing resources. Key decisions driving this charge include the discontinuation of the NEVO™ Sirolimus-Eluting Coronary Stent clinical development program and the cessation of manufacturing for CYPHER® and CYPHER SELECT® Plus Sirolimus-Eluting Coronary Stents by the end of 2011. These actions signal a strategic shift for Cordis within the cardiovascular stent market, likely impacting future revenue streams and product offerings in this segment.
Key Highlights
- 1Johnson & Johnson expects a substantial after-tax restructuring charge of $500-$600 million in Q2 2011.
- 2The restructuring is primarily driven by its subsidiary, Cordis Corporation.
- 3Cordis Corporation is discontinuing its NEVO™ Sirolimus-Eluting Coronary Stent clinical development program.
- 4Cordis will cease the manufacture of CYPHER® and CYPHER SELECT® Plus Sirolimus-Eluting Coronary Stents by the end of 2011.
- 5These actions indicate a strategic realignment within Cordis's cardiovascular business unit.
- 6The filing includes related press releases as exhibits for further detail.