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  • December 2019
  • Case
  • HBS Case Collection

The Business of Pain: Johnson & Johnson and the Promise of Opioids

By: Erik Snowberg, Trevor Fetter and Amy W. Schulman
  • Format:Print
  • | Language:English
  • | Pages:18
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Abstract

This case is designed to provide an engrossing overview of stakeholder capitalism through a vigorous discussion of the conflicts that can arise when trying to serve multiple stakeholders. In 2007, Johnson & Johnson’s (J&J) subsidiary Janssen has to decide whether or not to launch a new opioid painkiller—the first such launch in 25 years—amidst growing concerns about opioid abuse in the U.S. The (A) case starts with the history of human interaction with opioids, the most effective painkillers known, from the Sumarians through the innovation of controlled release opioids, led by Purdue Pharma’s OxyContin. By the time J&J is ready to launch a new opioid, this innovation has led to increased opioid addiction, complicating the launch decision. Benefits to customers are now murky, employees may no longer feel the company is living up to its Credo, and society as a whole may be harmed. The (B) case summarizes the fallout of the opioid crisis, and how J&J’s participation in that crisis has affected their brand, and society.

Keywords

Opioids; Addiction; Stakeholder Capitalism; Business and Stakeholder Relations; Product Launch; Decision Making; Ethics; Social Issues; Pharmaceutical Industry

Citation

Snowberg, Erik, Trevor Fetter, and Amy W. Schulman. "The Business of Pain: Johnson & Johnson and the Promise of Opioids." Harvard Business School Case 720-420, December 2019.
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About The Author

Trevor Fetter

Accounting and Management
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Related Work

    • December 2019
    • Faculty Research

    The Business of Pain: Johnson & Johnson and the Promise of Opioids (B)

    By: Erik Snowberg, Trevor Fetter and Amy W. Schulman
Related Work
  • The Business of Pain: Johnson & Johnson and the Promise of Opioids (B) By: Erik Snowberg, Trevor Fetter and Amy W. Schulman
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