Back in 1982, when poisoned Tylenol capsules killed seven people, drug maker Johnson & Johnson earned praise for its swift actions to protect consumers. The company's strong, proactive response made the incident a textbook case for business school students on how to turn potentially devastating news into a public relations win. By contrast, the recent handling of manufacturing problems by Leiner Health Products Inc. — which filed for bankruptcy earlier this year and closed one of its plants in response to an investigation by the U.S. Food and Drug Administration(FDA) — may go down in history as a textbook example of...
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