The top stores for 2011 were easy to identify:  1) Quality control failures, particularly at J&J; 2)  the P&G/Teva deal; 3) M&A; and 4) the entry of the last significant Rx switch Allegra (fexofenadine).

Quality control failures in plants that manufacture OTC drugs continued apace.  These failures differed from many in the past in their sheer scope and egregiousness.  They were also systemic, resulting in warning letters or a consent decree, plant shut downs, and multiproduct outages some lastly beyond one year.  The root cause of these failures was a toxic mix of old plant & equipment, neglect, cost cutting and incompetence.  J&J, the chief repeat offender and

P&G and Teva Pharma formed a strategic healthcare joint venture on Nov 3, 2011.  In one masterstroke P&G has created synergies in multiple dimensions and has forged a new business model that should be the envy of the consumer healthcare industry.  We recount P&G's long journey to this game-changing moment.