Corporate Turnaround of Pharmacia & Upjohn
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
Case Code |
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BSTR255 |
For delivery in electronic format: Rs. 400; For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra
ThemesMerger, Corporate Turnaround, Leadership |
Case Length |
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17 Pages |
Period |
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1995-2006 |
Pub Date |
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2007 |
Teaching Note |
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Not Available |
Organization |
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Pharmacia &
Upjohn |
Industry |
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Pharma |
Countries
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US / Sweden |
Abstract:
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.
In the year 1995, Pharmacia and Upjohn merged to form Pharmacia & Upjohn and the
merger was expected to create a major force in the global pharmaceutical
industry due to synergies and complementary products of both the companies.
However, the merger ran into problems due to cultural differences between the
European and the American entities, which resulted in drastic fall in the
revenues of the merged entity.
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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.
Issues:
» 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
Contents:
Keywords:
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
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