|Case Code||:||BSTR255||For delivery in electronic format: Rs. 400;|
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges
ThemesMerger, Corporate Turnaround, Leadership
|Case Length||:||17 Pages|
|Teaching Note||:||Not Available|
|Organization||:||Pharmacia & Upjohn|
|Countries||:||US / Sweden|
The case details the merger of two major pharmaceutical companies - Sweden based Pharmacia and the US based Upjohn. It details the cultural and other problems faced during the merger and the subsequent turnaround of the merged entity under the leadership of Fred Hassan.
With the deteriorating financial position, analysts opined that the company would be a target of a hostile takeover. At this juncture, Fred Hassan assumed the responsibilities of CEO of the company in 1997.
After implementing the transformational plan put forth by Hassan, the company's revenue grew and it recorded profits from the fiscal year 1998 onwards. In 1999, Pharmacia & Upjohn was merged with Monsanto forming Pharmacia Corporation. In 2002, Pharmacia Corporation was acquired by the pharmaceutical giant Pfizer.
» Understand the importance of cultural issues in cross-border mergers
» Appreciate the role of a leader in reviving the fortunes of a loss making company
» Evaluate the strategies adopted by Hassan in turning Pharmacia & Upjohn around
» Examine the changes brought in by Hassan in Pharmacia & Upjohn
Pharmacia , Upjohn, Merger and Acquisition, Cross Border Mergers, Cultural Mismatch, Corporate Turnaround, Merger Costs, Cultural Problems, Hostile Takeover, Zyvox, Reorganization , Product Portfolio, Best-Managed Behaviors
Pfizer Acquires Pharmacia- Next Page>>
Case Analysis of Pharmacia and Upjohn, Inc. I. Factual Summary: • Rogaine was approved by the FDA for men in 1988 and women in 1991. • It is estimated that there are 40 million men and 20 million women experiencing some form of hair loss; 300 million dollars is estimated to be spent annually on hair re-growth drugs. • Global sales of Rogaine and Regaine grew 7.8 percent over the past two years (1993-1995); US sales of Rogaine grew 14.3 percent. • Between 1989 through 1991, Pharmacia and Upjohn, Inc. averaged nearly 6 million dollars in Rogaine advertising and returned nearly 90 million dollars in sales on average. II. Case Problem/Opportunity: Pharmacia and Upjohn, Inc. have received approval from the FDA for a non-prescriptive Rogaine product, which can be sold at any pharmacy, or hair-care section of food, drug, and mass-merchandise retail outlet. Pharmacia and Upjohn, Inc. built a marketing plan which included a 5 year sales estimate of 1 billion dollars, based on having a three year marketing exclusivity of the product. In