J&J Restructures Chinese Operations

Qmed Staff

August 29, 2013

1 Min Read
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On Tuesday, Johnson & Johnson stated that three of its China-based managers would start reporting to a local chairman. The company hopes this restructuring will improve oversight and boost sales.Over the past few months, pharmaceutical companies and others in the Chinese medtech industry have been in the limelight. GlaxoSmithKline, a British drug manufacturer, received significant scrutiny from Chinese regulators over bribery allegations.J&J stated that its global consumer business chairman, Jesse Wu, would be the next chairman of J&J's China segment. Wu will report directly to CEO and chairman Alex Gorsky.As of now, all three of the company's Chinese divisions have reported to separate managers based in the United States. While each of the divisions will still maintain autonomy when it comes to making business decisions, each president and general manager based in China will now report directly to Wu.Wu's old position will be filled by Lynn Pendergrass, a senior vice president of Hewlett-Packard in the Americas. Pendergrass will take over as leader of the Johnson & Johnson's global consumer business."Now it is all segmented like the rest of the world," noted a spokesperson for the company. "You report through steps to the worldwide chairman of your unit." In total, Wu will be in charge of 9,000 China-based employees. J&J's Chinese operations pulled in $2.5 billion in revenue in 2012.

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