-Caveat Lector-

So Johnson & Johnson is working for the Devil himself, eh? Now THERE'S a
clever theme for an ad campaign! Target market: gullible Christians, a
sizable group. I wonder which rival company is promoting this. What is the
campaign costing them and how much do they expect to profit?  Using the
internet as a dissemination vector sure must keep cost down. A gossip
campaign has always been the cheap way to go, anyway.

Johnson & Johnson has been confronted with some very aggressive
competition in the past, at one time including the cold blooded murder of
several of its customers. They took Tylenol (a Johnson & Johnson product)
that had been laced with poison. It is still unclear who was responsible.
The case dragged on for years. Was it a case of extortion, attempted or
otherwise? Was it an elaborate insurance scam? Or was it merely a ploy for
market share by one (or more) of Tylenol's competitors? How did the slew
of copycat murders fit in? Were they copycats at all or were they part of
a planned pattern? And what about the ensuing stock price fluctuations? A
lot of money changed hands no matter what else happened. Drugs are a cut
throat business. Ask anybody.

So, it would seem, is advertising.


*************************************


San Francisco Examiner 10/11/82

JOHNSON & JOHNSON
TYLENOL LOSE MAY
REACH $75 MILLION

New York -- Sale of the No. 1 over-the-counter pain remedy will slow to a
trickle in the aftermath of the poisoning of Extra-Strength Tylenol
capsules, and that could cut Johnson & Johnson's profit by as much a $75
million this year, analysts say.

(snip)

**************************************
Wall Street Journal, 12/9/82:

TYLENOL RIVAL'S ADS
HAVE A SHARPER TONE
IN WAKE OF TRAGEDY

BAYER ASPIRIN CAMPAIGN TOUTS
25-YEAR USE OF PACKAGING
THAT RESISTS TAMPERING

NEW YORK -- Competition for Tylenol customers is getting bitter in the
aftermath of the cyanide poisonings 10 weeks ago.

A new television ad -- the most pointed one so far in its implicit
criticism of Tylenol -- began airing this week. Promoting Sterling Drug
Inc.'s Bayer Aspirin, the ad focuses on tamper-resistant packaging and the
fact that Bayer has used it for 25 years. By contrast, Johnson & Johnson,
Tylenol's parent, announced the product's first tamper-resistant package
only last month.

"At Bayer, we take care . . . and we take care in the way we package our
aspirin . . . we've been using sealed, tamper resistant package that meet
even the new government standards -- and we've been doing that for over 25
years," a distinguished-looking male actor says solemnly as he stares into
the camera.

(snip)

*********************************

Wall Street Journal ALSO on 12/9/82 (same day):

'POSSIBLE' POISONING OF ANACIN CAPSULES IS STUDIED IN CALIFORNIA

San Joe, Calif. -- San Jose police said they have opened a "top-priority"
investigation into "possible cyanide poisoning" after tests showed that a
woman hospitalized with a possible stroke may have been the victim of
cyanide poisoning traced to a capsule of Anacin III Maximum Strength.

(snip)

California's health services department said it is asking that anyone who
bought Anacin at that drugstore since Nov. 24, the date the allegedly
poisoned capsules were bought, return them to the store for analysis.

(snip)

**********************************

Wall Street Journal 4/29/83:

STERLING DRUG PLANS TO CHALLENGE TYLENOL
AFTER YEARS OF OVERCAUTION, MISJUDGEMENT

New York -- It's been a tough eight years for Sterling Drug Inc and its
flagship brand, Bayer aspirin.

In 1975, Johnson & Johnson, opened the advertising campaign that
eventually converted millions of aspirin user to Tylenol. The campaign
touted Tylenol's sole ingredient, acetaminophen, as the safe and gentle
alternative to aspirin, which can upset the stomach.

But Sterling marketers repeatedly decided against introducing their
top-selling overseas brand of acetominophen to counter the Tylenol
incursions. They struggled -- unsuccessfully -- to to protect Bayer by
bolstering aspirin's image.

This week the strategy shifts. "The Panadol Discovery," Sterling's U.S.
introduction of the acetiminophen it has sold overseas for 25 years, is
part of an unusual $100 million campaign that seeks to reverse year of
overcautious marketing and outright misjudgement.

Tylenol has won back most of the 35% share it held in the analgesic market
before the October 1982 deaths of seven persons who took cyanide-laced
capsules of the brand. But aggressive advertising by Anacin-3 and Datril,
two once-dormant acetaminophen rivals, has opened up the market by telling
consumers that all "aspirin-free" pain relievers are basically the same.

AIMING AT TYLENOL MARKET

Now come Panadol, the first entirely new U.S. brand in years, yet one that
can boat "world-proven" success (it is sold in 70 countries). The Panadol
pitch aims at the heart of the Tylenol market: women aged 18 to 40;
frequent user who seek both strength and gentleness; doctors who recommend
Tylenol; and Hispanics, a group that Tylenol was first to pursue.

"My Julie's wedding day -- was I nervous. What a headache!" a middle aged
mother says in a television commercial for Panadol. Her son shows  in
military uniform -- "on leave from Europe" -- and brings out a royal-blue
packet of Panadol. Mom continues: "Bobby discovered it in Europe. It' a
thousand milligrams strong and it won't upset my stomach. I'd never heard
of Panadol, but by the time my guests arrived, my headache was gone. Now
Panadol is made here in America."

The flashy introduction of Panadol pose the strongest challenge yet to
Tylenol.

(snip)

More than 100,000 physicians -- whose referrals helped build Tylenol into
a $400,000-million-a-year brand --  began receiving mailed Panadol sample
this month. Sterling plan to send letters of endorsement -- written and
signed by computer -- from the company's 12,000 U.S. employes  to their
family doctors.

Normally sober medical journals now feature wry Panadol ads that picture
Burger King and McDonald's, Coke and Pepsi, Avis and Hertz -- and Panadol
and Tylenol. The trade ad concludes: "A little competition i good for
everybody. Introducing Panadol, from the makers of Bayer aspirin."

(snip)

************************************

Wall Street Journal 1/12/83

JOHNSON & JOHNSON UNIT SUE 9 INSURERS FOR $117 MILLION ON TYLENOL-RECALL
COST

McNeilab Inc., a unit of Johnson & Johnson, sued its insurers for about
$117 million to cover the cost of the company's nation-wide recall last
fall of it Tylenol products.

(snip)

It would be foolish to argue that Johnson & Johnson "should have done
nothing (and) let people die" in order to make sure that it costs would be
covered by the company's product liability  insurers, said Mr. Diskant [a
lawyer for Johnson & Johnson]

(snip)

The recall, considered one of the largest in marketing history, resulted
from the deaths in late September of seven Chicago-area residents who were
poisoned by taking cyanide-laced Extra-Strength Tylenol capsules.

(snip)

**************************************

San Francisco Examiner 2/11/86:

JOHNSON & JOHNSON STOCK FALLS IN REACTION TO NEW TYLENOL SCARE

New York -- Stock price edged lower early today a the market took a
respite from the pace which has kept it at record highs for the past three
sessions.

(snip)

Johnson & Johnson led the early most-active list, falling 2 1/2 to 49 1/4
as 1.39 million shares changed hands in the first 30 minutes of trading.
Sales of the company's Extra Strength were halted in Westchester County,
N.Y. after a woman in Yonkers died of cyanide poisoning after taking the
pain reliever. Great Atlantic & Pacific Tea Co. took the product off the
shelves of it more than 1,000 stores.

(snip)

***************************************

San Francisco Examiner 2/15/86

NEW YORK STATIONS CRITICIZED

TYLENOL 'HYSTERIA' BLAMED ON TV


New Brunswick, N.J. -- The chairman of Johnson & Johnson blasted New York
television stations yesterday for creating "hysteria" and
"sensationalizing" the discovery of two bottles of Tylenol laced with
cyanide.

(snip)

Burke said he had no complaints over coverage of the story by newspapers
or the major networks but said New York television stations were
misinforming the public by using phrases like "national nightmare" and
"horror."

(snip)

The new York television stations also are failing to inform viewers of
other forms of Tylenol that consumers can use, Burke said. Tylenol
capsules have been ordered off store shelves, and consumer are being urged
not to use the product, but Johnson & Johnson says Tylenol caplets and
tablets are safe and virtually tamper-proof.

Rather than mentioning alternatives like Tylenol's tablet or caplet forms,
Burke said the New York stations were encouraging consumers to switch to
other brands.

(snip)

*************************************

Lets take a little  look behind  some of Johnson & Johnson's competition,
specifically Sterling. Let's look at Sterling's roots  and see in what
soil Sterling grew.

*************************************

<Treason' Peace: German Dyes & American Dupes> by Howard Watson
Armbruster, The Beechhurst Press, New York, 1947, pages 37-40:

"As the German I.G. got under way in their new activities in the United
States a mass of rumor, conjecture and, in some instance, fact, wa
broadcast as each step was taken.  It so happened, however, that the first
of the new I.G. tie-ups, which was in the drug industry, attracted no
attention at all. The principal on this side was Sterling Products, Inc.,
(now Sterling Drug, Inc.), a comparative newcomer and relatively
unimportant at the time. The Sterling executives had a good reason for
keeping this tie-up secret, as it wa made in direct violation of a pledge
they had made to the Alien Property Custodian.

One of the war-time seizures of German property which had caused great
public interest had been that of the American Bayer Co. and its
subsidiary, Synthetic Patents Corp., and the partial disclosure of the
subversive activities of Dr. Schweitzer and some of his colleagues in
Bayer.

(snip)

The original contact between the Sterling management and the German
cartels is a matter still shrouded in mystery.

(snip)

Sterling, originally known as the Neuragyline Company, wa started in
Wheeling, West Virginia, in 1901 by two retail druggists, William E. Weiss
and Albert  H. Diebold. In 1917 these two nostrum vendors purchased  the
original Sterling Remedies, which was marketing a fake, lost-manhood cure
called No-Tobac, and the candy cathartic, Cascarets, which had as its
slogan, "They work while you sleep."

(snip)

Soon after the purchase of Bayer, Sterling organized the Winthrop Chemical
Company, Inc., to handle Bayer's  ethical preparations; a name being
needed to which none of the odium of Sterling's patent-medicine
advertising was attached. Winthrop was made the vehicle of the second of
the important formal agreement with the cartel in 1923. On the basis of a
fifty-fifty division of all profit, the cartel agreed to assign to
Winthrop all of its new medicinal patents in the United States. The
agreement was perpetual, and Sterling also bound itself to keep hands off
the trademarks and patent of its subsidiaries so as not to interfere with
the cartel's profit-sharing with Winthrop.

(snip)

When the 1923 Winthrop agreement was signed a clause was included by the
German Bayer company declaring that it wa not "a partnership or a joint
venture" between the companies. The Weiss theory of partnership implied an
equality which, apparently, the Germans did not relish. If Weiss and
Diebold were to be partners they must be made to understand that they were
the inferiors in the association.

In 1925 and 1926 the I.G. Farbenindustrie succeeded I.G. Dyes, adding to
the original "Big Six" and their earlier associates another group of five
of the larger chemical companies of Germany. It was then that Farben, with
its world-wide affiliates, became became the largest corporate structure
in the world's chemical and allied industries. An agreement was then
consummated between Farben and Sterling  by which  the German's share of
Winthrop profit was exchanged for assignment of fifty per cent of
Winthrop' stock.

In the course of thee corporate changes the Metz pharmaceutical interests
were transferred (as revealed in Chapter II) to the jointly-owned
Sterling-Farben-Winthrop Company. Following the Metz deal, Farben also
contributed another million dollars as half of its share of the purchase
by Winthrop of the Cook Laboratories, and the Antidolor Company. So a
total of something less than $2,000,000  wa all the cash that Farben ever
paid to recover a firm hold on its pharmaceutical interests in the United
States, -- interests which we had been told were wrested from Germany for
all time during World War I.

*******************************************************

And what happened to I.G. Farben after WWII?

Remember, this was a company that financed Hitler, owned Auschwitz, and
controlled 40% of America's pharmaceutical business and 100% of Latin
America's pharmaceutical business. This was a company that despite its
deceptive name was primarily a pharmaceutical company and had made the
overwhelming bulk of the core money on which it was built by selling two
drugs, heroin and aspirin, Bayer aspirin.

You'd think guys like that would have hung at Nuremburg. But no.

I.G. Farben was merely reorganized, "broken up" on paper into three large
and one small piece each of which was owned by the others. This new,
improved, I.G. Farben, is still owned by the same families and is bigger,
richer and more powerful than it ever was before the war. It's till in the
pharmaceutical business and it still competes with Johnson & Johnson.

Coincidence? Perhaps.

**************************************************************
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