Turnaround of Schering-Plough Corporation
|
Case Code: BSTR365 Case Length: 28 Pages Period: 2001-2009 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.400 Organization: Schering-Plough Corporation Industry: Pharmaceuticals Countries: USA, Global Themes: Restructuring, Turnaround, Turnaround Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
"Schering-Plough was a deeply wounded company under extreme stress [...]. There were issues such as the unprecedented consent decree with the FDA, and the federal investigations into sales and marketing practices. But many more issues emerged as I peeled the onion. I learned that almost all the key products of the company were losing sales. I learned that the company was in negative cash flow, burning nearly $1 billion annually. I learned that the organization was disconnected. I learned that the people were demoralized and disengaged. And I learned that the trust of key stakeholders, such as investors, doctors, regulators and employees, was in negative territory."
- Fred Hassan, Chairman and CEO of Schering-Plough Corporation, in 2007.
"Once in critical condition, Schering-Plough has staged a remarkable turnaround. Earlier in the decade Schering-Plough drug maker was plagued with a series of problems and it appeared that the recovery process would be long and difficult."
- Dan Sullivan, Editor of The Chartist in 2007.
Introduction
On November 3, 2009 global pharmaceutical giant Merck & Co., Inc.(Merck) completed its merger with US-based global healthcare company Schering-Plough Corporation (SP), in a stock and cash transaction worth US$ 41.1 billion.
Under the reverse merger agreement, Merck though the larger of the two, was acquired by SP and the combined company was renamed as Merck (new Merck). As per the deal, Merck shareholders owned approximately 68% of the combined company while the rest was owned by shareholders of SP.
Chairman, President and CEO of Merck, Richard T. Clark (Clark) became the head of the merged company while the CEO of SP, Fred Hassan (Hassan) participated in integration planning until the completion of the merger.
On completion of the merger, Clark said, "With our merger now complete, we are ready to deliver on the promise of a new Merck built on a foundation of scientific innovation and dedication to the well-being of patients around the world. On 'Day One' for the new Merck, we are stronger and better equipped to make a difference in the lives of people globally through our broadened, diversified portfolio of innovative medicines and vaccines, and products for consumer and animal health.
The combination of the considerable talents of Schering-Plough and Merck employees across the globe positions Merck to move through this dynamic time for our industry with a clear vision for the future."...
Buy this case study (Please select any one of the payment options)
| Price: Rs.400 |
Price: Rs.400 | PayPal (9 USD) |
