CNN Money - The government takeover of Johnson & Johnson's Tylenol-making factories is a serious step that could further hurt sales of the company's well-known over-the-counter medicines.
On Thursday, the Food and Drug Administration and the Justice Department announced an agreement with J&J (JNJ, Fortune 500)'s McNeil PPC division that put its plants -- one in Las Piedras, Puerto Rico, one in Fort Washington, Pa., and one in Lancaster, Pa. -- under FDA supervision.
The agreement, known as a consent decree, is a very serious development for J&J. With the FDA's supervision, McNeil may be able to fix its problems on a specific timetable. "The consent decree removes much of the uncertainty regarding next steps for McNeil's recovery plan, without paying any upfront fine," Biegelsen said.
"In our view, it also significantly reduces, but does not eliminate entirely, the risk of a worst-case scenario of plant shut down in Puerto Rico."
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