Johnson & Johnson’s total meltdown (Morning Read)

Among today's current medical news: Johnson & Johnson's major problems; final thoughts from the JPMorgan Healthcare Conference; home health services rule delayed; fresh investment dollars in Michigan; when a nursing shortage has nothing to do with the nursing shortage; the re-start of healthcare reform.

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An early obit for J & J? The New York Times this weekend unfurled a deep dive into the problems with Johnson & Johnson (NYSE:JNJ), chronicling the increasing number of recalls, its clashes with the U.S. Food and Drug Administration, a growing amount of consumer mistrust and the challenges of competing against off-brand challengers.

“It looks like a plane spinning out of control,” David Vinjamuri, a former J & J marketing employee now with ThirdWay Brand Trainers, told The Times.

“They’ve really got to stop the bleeding,” added Ted Marzilli, an executive with YouGov BrandIndex, whose company has noticed a steady decline in the J & J brand.

“This is really unusual to have this gross systemic failure,” Donald Riker, the editor of OTC Product News, told the Times.

J & J is nothing but tenacious, and The Times notes that the company could be on the verge of turning things around. On a somewhat separate note, J & J looks to be taking another run at a Smith & Nephew takeover after its $11.1 billion offer was rejected earlier this year.

Healthcare reform update. The battle against the US healthcare reform begins again this week, first with a vote but then with a protracted siege that will see Republicans trying to scuttle funding legislation to undercut healthcare reform’s efforts. Some Democrats are now urging a compromise to fix only the “flawed provisions.” But the reform repeal could also rekindle a debate over abortion.

JPMorgan Healthcare Conference: The Last Word. Via Burrill Report.

While biotech executives were keenly aware that investor appetite for risk remains tepid, they seemed eager to tout the promise of their development programs to address unmet healthcare needs. Meanwhile, several big pharma companies emphasized the growing importance of emerging markets while not forgetting to reassure the audience that innovation is still a key element for sustaining their business models.

Fresh investment capital from Michigan. State-funded Venture Michigan Fund II will launch next month at a size of $120 million. Venture firms have to invest in Michigan companies at the same level as they received state dollars. Firms that received money from the fund include Arboretum Ventures, North Coast Technology Investors, RPM Ventures, TGap Ventures, EarlyStage Partners; Venture Investors and Chrysalis Ventures, among others.

Home health regulation delayed. The Centers for Medicare & Medicaid Services will delay enforcement of a rule requiring physicians to document face-to-face encounters in order for patients to get covered home health services.

A shortage of nurses — but not because there aren’t nurses. Fewer nurses in public schools: “Only 45% of public schools across the country have a full-time nurse, according to a 2007 study conducted by the National Assn. of School Nurses, or NASN. Another 30% rely on a part-time nurse, leaving 25% with no nurse at all.” But it turns out in many cases the lack of a nurse stems from a lack of funded positions.

Best medical bloggers. The seventh annual Medical Weblog Awards are underway.

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