Mergers: Upjohn-Phamacia

1. 9-197-034
2. 1995 August: US Upjohn + Sweden's Pharmacia
1. tax-free exchange of shares
1. 248M Upjohn
2. 255M Phamacia
2. "bigger is better" notion: combined sales of $7B
3. Pharmaceutical Industry:
1. importance of worldwide marketing
2. consolidation
3. decreasing profitability due to social backlash against high prices
4. spends 19% of sales on R&D
4. Upjohn: 
1. 20K per employee revenue
2. faced strategic problems
3. patent expiration
4. few products "in the pipeline"
5. weak foreign sales (2/3 world market)
6. weak in Europe
7. Segments
1. anti-inflammatory/analgesic
2. central nervous system
3. critical care
4. infectious disease
5. metabolic
6. reproductive/women's health
7. steroids
8. transplant/cancer
5. Pharmacia:
1. strong in Europe
2. skilled in merging with other companies