DePuy Orhtopaedics willingly pulled-out its ASR hip system for more than 12 months now. After looking into escalating concerns on the safety and effectiveness of the device, the company issued a recall order. A significant amount has been released by the company for the recall.A recent report says that the hip replacement recall takes toll on DePuy.
Johnson & Johnson stated its 2010 fourth quarter in the early part of 2011.There was a 12 percent drop in its net earnings compared to the previous year.The revenue decline was greatly affected by the $922 million set aside in after-tax charges as a result of product recall. The $922 million was kept back by the company to represent the net impact of litigation settlements, product liability expense and costs associated with the DePuy ASR Hip recall.” Against its $24.6 billion worth of medical and diagnostics sold in 2010, a media report says that the $922 million amounted only a small percentage. The company also had a $61.5 billion worldwide sale in 2010.
The US Securities and Exchange Commission received Johnson & Johnson’s third quarter earnings report on November 8, 2011. For the first nine months of 2011, the company had paid $223 million in expenses for proceedings and other costs for the DePuy ASR hip recall, a media report says. Also part of the report was the outline of the legal proceedings against which it is defending itself.
A part of the report discussed about the “the number of pending lawsuits continues to increase. The company continues to receive information with respect to potential costs associated with this recall.” The pending DePuy ASR lawsuits, report says, were roughly 3,500.
More than 3,500 Australian plaintiffs have been given compensation by Johnson & Johnson which totaled to $21 million Australian dollars. According to the WAtoday, the Australian government estimates that 5,570 patients received the DePuy hip replacement. This shows that around 62.8 percent of the total Australian patients have been compensated by the company.
Reports say that Johnson & Johnson may spend billions of dollars more for this recall. The amount that DePuy hip implant sufferers may receive from the company will be determined in the context of settlement negotiations or court proceedings.
There are almost 93,000 recipients of the recall-affected products in the world. In the United States alone, as most estimates would claim, there are about 38,000 patients who received the DePuy hip.As the ASR hip replacement recall took effect, a great number of these recipients have taken legal actions seeking for compensation.