From the article:
With such a diversity of products and operating companies, Johnson & Johnson's overall business has not suffered significantly. But the string of recent recalls at McNeil threatens to weaken the kind of trust that made many people willing to pay more for J.& J. brands.
2010 was a terrible year for the company. The longer these problems persist opens the door for competing brands, generics, and lost pricing power.
While still hugely profitable, just how permanent and material the damage to Johnson & Johnson's reputation and its trust with consumers isn't that easy to quantify.
Long position in Johnson & Johnson established at lower than recent market prices