Late in the evening of February 10, 1986, news reports began to circulate that a woman had died in Yonkers, New York, after taking poisoned capsules of extra-strength Tylenol.
The nightmare for Johnson & Johnson began anew.
Once again, the company sprang into action. Chairman Burke addressed reporters at a news conference a day after the incident. A phone survey found that the public didn’t blame the company. However, with the discovery of other poisoned Tylenol capsules two days later, the nightmare intensified. The company recorded 15,000 toll-free calls at its Tylenol hot line. Once again, production of Tylenol capsules was halted. “I’m heartsick,” Burke told the press. “We didn’t believe it could happen again, and nobody else did either.”
This time, although Tylenol earned some 13 percent of the company’s net profits, the firm decided once and for all to cease production of its over-the-counter medications in capsule form. It offered to replace all unused Tylenol capsules with new Tylenol caplets, a solid form of medication that was less tamper-prone (Figure 2-9). This time the withdrawal of its capsules cost Johnson & Johnson more than $150 million after taxes.
Once again, in the face of tragedy, the company and its chairman received high marks. As President Reagan said at a White House reception two weeks after the crisis hit, “Jim Burke of Johnson & Johnson, you have our deepest appreciation for living up to the highest ideals of corporate responsibility and grace under pressure.”
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