Table of Contents
Introduction............................................................................................3
What changes occurred in the pharmaceutical environment in the 1970's & 80's..........3
What were the main challenges that Upjohn faced in its history...............................5
Pharmacia's main core competence................................................................5
Why Upjohn appealed to Pharmacia as a good merger candidate..............................6
What was the main result of these changes in the pharmaceutical industry..................7
Introduction
When U.S. base company Upjohn merged with Pharmacia, a Swedish company, in 1995, the merger created the ninth largest pharmaceutical company in the world, with gross sales of roughly $10 billion in revenues. The potential merger of Pharmacia and Upjohn has defined itself as a significant presence in the highly competitive pharmaceutical market, along side leaders like Merck, Johnson and Johnson. "The merger between Pharmacia and Upjohn determined the presence of one of the world's fastest growing pharmaceutical businesses, a company employing more than 60,000 employee's worldwide and responsible for research and development in 60 countries" (Upjohn, 1995).
Pharmacia
Upjohn Company pills -- Kalamazoo Valley Museum 02...
A glass container filled with the multivitamin Uni...The decision to pursue the merger was a direct result for a greater global presence in this market, and the acquisition provided Pharmacia and Upjohn with a considerable market share in international pharmaceuticals. With the process of change and the progression of the global markets has required the incorporation of American strategic management principles, including a focus on corporate restructuring.
What changes occurred in the pharmaceutical environment in the 1970's & 80's
The Upjohn Corporation began in 1885 when its founder, W.E. Upjohn, obtained a patent for a new type of pill. In its early stages Upjohn experienced rapid growths helping it become a low cost leader and possess a differentiation advantage over its competitors. Decisions concerning profit margin led the then directors of Upjohn to focus on research and development in order to take advantage of the perceived lucrative markets. This has led to...