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news.Johnson & Johnson Pakistan has decided to wind up its operations in the country primarily due to economic slowdown and lack of a functional governmental system.
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The company, which operates in consumer, pharmaceutical and medical devices, and diagnostics segments, has not disclosed the decision so far, as reported by pakistantoday.com.
Meanwhile, Johnson & Johnson is considering disposing its pharmaceutical business Janssen that produces gastro-intestinal, cough syrups and anti-fungals at its manufacturing facility in Korangi industrial area of Karachi. In addition, the company has initiated sale process of its medicine segment by invited bids.
Johnson & Johnson, however, will continue with its FMCG and medical devices and diagnostics business, while retaining its legal entity in Pakistan.
An undisclosed executive was cited by the news agency as saying that Janssen was finding it increasingly difficult to sustain local manufacturing operations in the face of stifling pricing controls and an adverse regulatory environment.
Johnson & Johnson is the fifth American multinational company after Bristol-Myers Squibb, Merck Sharp & Dohme, Searle Pharmaceuticals, and Organon to close operations of its subsidiary in Pakistan in the recent times.
For the fiscal year ended 1 January 2012, Johnson & Johnson and its subsidiaries had 139 manufacturing facilities worldwide.