...highly fragmented pharmaceutical industry with many competitors. The top ten firms in pharmaceutical sales held 28% market share in mid-1995. The top 50 firms held just over 60 percent. Changes were occurring in the pharmaceutical industry in the 1990’s. With pharmaceutical benefit management (PBM) firms working to reduce costs, pharmaceutical firms held less power. PBMs sought to reduce the number of supplier firms by only purchasing from the largest firms and requiring doctors to prescribe drugs from approved lists called formularies. Many pharmaceutical firms saw mergers as a means of reducing costs and increasing market share. On August 20, 1995, two pharmaceutical companies by the names of Upjohn Company and Pharmacia AB announced that they were forming a “merger of equals.” Upjohn Company, incorporated in the U.S., and Pharmacia AB, incorporated in Sweden, would combine to form the ninth largest pharmaceutical company in the world. PHARMACEUTICAL INDUSTRY: PRE-MERGER The pharmaceutical industry at the time of the case was very attractive. The attractiveness of this industry can be determined using Porter’s Five Forces, a model for industry analysis. This model looks at barriers to entry, supplier power, threat of substitutes, and buyer power as they relate to industry rivalry. BARRIERS TO ENTRY The pharmaceutical industry has high barriers to entry. A company should expect to spend up to 15 years and up to $600 million to bring a new drug to market. On average...
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...Harvard Business School 9-197-034 Rev. February 28, 1997 The Upjohn Company: The Upjohn - Pharmacia Merger Pharmacia & Upjohn will be a powerful new competitor in the global pharmaceutical industry. For both Pharmacia and Upjohn, this merger is a bold strategic move to build a highly competitive company as the worldwide pharmaceutical industry continues to consolidate. The new company will be positioned to attain its goals of revenue growth above the industry average and operating margins exceeding 25% by 1998. Jan Ekberg, President and CEO of Pharmacia Proposed Chairman of Pharmacia & Upjohn. This is a merger that truly constitutes far more than the sum of the parts. The new company will be able to take full advantage of uniquely complementary geographic reach, product portfolio, pipeline and R&D strengths. As a result of the merger, Pharmacia & Upjohn will have extensive financial and operating resources, market scope and earnings potential. Consequently, we fully expect the new company to achieve additional growth in expected 1996 EPS as well as acceleration of future earnings growth. Above all, Pharmacia & Upjohn is expected to generate significantly enhanced value for shareholders. John L. Zabriskie, Ph.D. Chairman and CEO of Upjohn Proposed President and CEO of Pharmacia & Upjohn On August 20, 1995, The Upjohn Company and Pharmacia AB, two pharmaceutical companies incorporated in the U.S. and Sweden, respectively, announced that they were forming...
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...------------------------------------------------- Group Case I: ------------------------------------------------- Pharmacia & Upjohn, Inc. ------------------------------------------------- Rogaine Hair Regrowth Treatment By Marina Sicic, Brittany Marshall, and Elisa Herrmann Alternatives Alternatives to the Rogaine Hair Growth treatment are prescription and non -prescription products such as shampoos, lotions and conditioners, which are mostly used when the hair is thinning. In total, men and women in the U.S. are spending over $300 million every year on such products. Additionally, they spend about a $100 million for elixirs, teas, and horse-hoof ointments. If hair loss is very noticeable, other alternatives such as hairpieces and wigs, hair transplants, and drugs are utilized to fight against the loss of hair. Together these options make consumers spend $1.3 billion per year. We will look at these substitutes closer in the following section and analyze how much big their market share is. More than two million U.S. citizens use hairpieces and wigs. They spend about $400 million per year on theses pieces, including their maintenance. Cost of care per year is between $300 and $600. This option can be produced with real human hair lasting about a year, or with synthetic hair, lasting for about two years. For men, a small hairpiece made out of real hair can cost between $1,000 and $3,500, pieces made out of synthetic hair total between $1,800 and $2,500. For women...
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...The Upjohn Company: The Upjohn - Pharmacia Merger 3 Business Analysis and Valuation Applications harmacia & Upjohn will be a powerful new competitor in the global pharmaceutical industry. For both Pharmacia and Upjohn, this merger is a bold strategic move to build a highly competitive company as the worldwide pharmaceutical industry continues to consolidate. The new company will be positioned to attain its goals of revenue growth above the industry average and operating margins exceeding 25% by 1998. Jan Ekberg, President and CEO of Pharmacia Proposed Chairman of Pharmacia & Upjohn This is a merger that truly constitutes far more than the sum of the parts. The new company will be able to take full advantage of uniquely complementary geographic reach, product portfolio, pipeline and R&D strengths. As a result of the merger, Pharmacia & Upjohn will have extensive financial and operating resources, market scope and earnings potential. Consequently, we fully expect the new company to achieve additional growth in expected 1996 EPS as well as acceleration of future earnings growth. Above all, Pharmacia & Upjohn is expected to generate significantly enhanced value for shareholders. John L. Zabriskie, Ph.D., Chairman and CEO of Upjohn Proposed President and CEO of Pharmacia & Upjohn On August 20, 1995, The Upjohn Company and Pharmacia AB, two pharmaceutical companies incorporated in the U.S. and Sweden, respectively, announced that they were forming a “merger of equals.” With combined...
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...an $18 million dollar loss to the company, we as a group are in complete agreement that Upjohn must remove Panalba from the shelves and destroy it, immediately banning further use both in the U.S. and in foreign countries. The FDA has recommended such action after multiple studies have proven that deaths have resulted from the use of this fixed-ratio drug and that there are no benefits over the single use drugs already available in the marketplace. Following are our reasons for this decision. First and foremost, it is imperative that the company upholds a reputation to the public as being socially responsible, both here in the U.S. and internationally. It is the ethical responsibility of Upjohn to look beyond making a profit and to place value on the lives of their customers. This decision is further supported in exploring Kant’s categorical imperatives as a guide to these actions. We would not be willing to allow those close to us to take this drug knowing the increased risk of death. Moreover, this action would benefit the company only at the expense of the customer. Allowing continued use of Panalba to any extent could further tarnish Upjohn’s reputation and impact sales of their other products over the long term. Negative publicity of the company should be avoided thus preserving Upjohn’s reputation as a company that cares about its consumers. By ignoring the high death toll, Upjohn could face future lawsuits with legal compensation that would far exceed their initial...
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...Alprazolam (Xanax) RNSG 2213 Mental Health Nursing History Upjohn laboratories in Michigan developed Xanax in the 70’s. Xanax was first approved by the FDA as an antidepressant, but the FDA came back and told Upjohn that they could distribute it as an antianxiety drug. Pharmacia acquired Upjohn and continued to manufacture Xanax. Xanax is now produced by Pfizer, the company that acquired Pharmacia (PMMEDIA, 2009). Usage Xanax is used to treat people with anxiety disorder. This medication is not recommended for people just dealing with stress or anxiety from everyday stressors. Panic disorders are the other medical use for Xanax (Fda/cder, 2011). While it was developed for medical purposes, the drug is now used illegally. People seek Xanax for a high, which is also called euphoria (Hartney, 2011). Intended Effect Anxiety and panic disorders are a mental illness that must be addressed with medication to help the individual cope with everyday life. The effect Xanax was designed to have, is to calm the individual. By calming the individual they relax and it suppresses the anxiety and panic they may be feeling. It was also intended to give the individual a feeling of euphoria (Hartney, 2011). Side effects Many side effects are associated with Xanax. It can cause dizziness, drowsiness, fatigue, disorientation, anger, euphoria, restlessness, confusion, crying, delirium, headache, stupor, rigidy, tremor, vivid dreams, extrapyramidal symptoms and parethesia in...
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...good idea? Did AOL stockholders receive value? Did Time Warner shareholders receive value? b. Do you believe the new company will succeed? If so, how will value be created short and long term? c. What could go wrong with this “mega merger”? What are the most significant threats on the horizon for AOL Time Warner? d. Do you believe the company will achieve its aggressive goals for 2001? e. Any advice for AOL Time Warner execs in summer of 2001? 3. Upjohn Case a. Evaluate the strategic reasoning behind the merger. Will the merger effectively address the strategic alliances faced by Upjohn? b. How do you interpret the stock market reaction to the announced deal? What is the magnitude of performance improvement the market is expecting? Are these realistic? c. Can you create an alternative restructuring strategy that might address the strategic challenges of Upjohn better? What are the risks and rewards from you strategy? d. As a shareholder of Upjohn, would you support this merger? 4. Middleby a. What caused Middleby's struggles in the 1990s? b. To what extent were these...
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...good idea? Did AOL stockholders receive value? Did Time Warner shareholders receive value? b. Do you believe the new company will succeed? If so, how will value be created short and long term? c. What could go wrong with this “mega merger”? What are the most significant threats on the horizon for AOL Time Warner? d. Do you believe the company will achieve its aggressive goals for 2001? e. Any advice for AOL Time Warner execs in summer of 2001? 3. Upjohn Case a. Evaluate the strategic reasoning behind the merger. Will the merger effectively address the strategic alliances faced by Upjohn? b. How do you interpret the stock market reaction to the announced deal? What is the magnitude of performance improvement the market is expecting? Are these realistic? c. Can you create an alternative restructuring strategy that might address the strategic challenges of Upjohn better? What are the risks and rewards from you strategy? d. As a shareholder of Upjohn, would you support this merger? 4. Middleby a. What caused Middleby's struggles in the 1990s? b. To what extent were these...
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... 6. Hunger may disturb sleep. A light bedtime snack (especially warm milk or similar drink) seems to help many individuals sleep. 7. An occasional sleeping pill may be of some benefit, but the chronic use of hypnotics is ineffective at most and detrimental in some insomniacs. 8. Caffeine in the evening disturbs sleeps, even in persons who do not feel it does. 9. Alcohol helps tense people to fall asleep fast, but the ensuing sleep is then fragmented. 10. Rather than trying harder and harder to fall asleep during a poor night, switching on the light and doing something else may help the individual who feels angry, frustrated, or tense about being unable to sleep. Current Concepts: The Sleep Disorders. By Peter Hauri, The Upjohn Company, 1977. ©Academic Skills Center, Dartmouth College...
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...Student’s Name Professor’s Name Class Date Moving towards Sustainable Prosperity Earth, the planet, as we know it today, is a home to the human race. However, the residents of this planet seem to be unaware of its importance and are raising serious concerns for the well-being, or it would not be wrong to document, the survival of this home. Many efforts have been made by the ecological friendly individuals residing on this planet after a realization of this hard fact. (Padalkina). In an attempt to do so, the researchers have put forth a term called degrowth that makes the core of this subject matter. Degrowth simply means a change in the living style of the inhabitants that means a cut in the production and consumption activities of the individuals so that such an economic system can be developed that is in line with the ecological system of the earth (Lazonick). Hence, forth, degrowth is a process through which ecological wellbeing can be assured and earth, the home of the human race, can be saved from the destruction; as with the current life style it is a fastly approaching this end (Latouche). Following are the five ways through which this objective can be achieved: * Sustainable degrowth involves a simple lifestyle so I will choose to live in smaller homes as to avoid the rush of big buildings on the planet. * The transportation patterns need to be altered. I will prefer to travel less by car or plane that can add significant ecological problems for the planet...
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...WORKING PAPER SERIES THE U.S. HEALTH CARE SYSTEM AND LABOR MARKETS Brigitte C. Madrian Working Paper 11980 http://www.nber.org/papers/w11980 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 January 2006 Written for the Federal Reserve Bank of Boston 50th Economic Conference, “Wanting It All: The Challenge of Reforming the U.S. Health Care System,” June 15-17, 2005, Chatham, MA. This paper draws quite extensively on three previously written papers: “Health Insurance Portability, Labor Supply, and Job Mobility,” July 2004, written for the Inter-American Conference on Social Security; “Health Insurance and the Labor Market,” in Huizhong Zhou, ed., The Political Economy of Health Care Reforms (Kalamazoo, MI: Upjohn Institute for Employment Research, 2001), and “Health, Health Insurance and the Labor Market” (with Janet Currie) in Orley Ashenfelter and David Card, eds., Handbook of Labor Economics, Volume 3 (Amsterdam: Elsevier-North Holland, 1999). The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. ©2006 by Brigitte C. Madrian. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The U.S. Health Care System and Labor Markets Brigitte C. Madrian NBER Working Paper No. 11980 January 2006 JEL No. I10, J3, J6 ABSTRACT This paper...
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...Upjohn Institute Press Book Chapters Upjohn Research home page 2005 Human Resource Management and Safety: Technical Efficiency and Economic Incentives Richard J. Butler Brigham Young University Yong-Seung Park Kyung Hee University Citation Butler, Richard J., and Yong-Seung Park. 2005. "Human Resource Management and Safety: Technical Efficiency and Economic Incentives." In Safety Practices, Firm Culture, and Workplace Injuries. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, pp. 1-12. http://research.upjohn.org/up_bookchapters/33 This title is brought to you by the Upjohn Institute. For more information, please contact ir@upjohn.org. 1 Human Resource Management and Safety Technical Efficiency and Economic Incentives More U.S. workers die each year on the job than were killed in the U.S. military cumulatively from 1998 through November 2004, even after including self-inflicted and accidental military deaths (DIOR 2005). In 2001, there were 8,786 job-related fatal injuries (5,900 not counting the fatalities caused by the terrorist attacks of September 11), or about 3.7 fatal injuries per 100,000 workers. Workers made 2.1 million trips to the emergency room for injuries sustained from accidents at work (Centers for Disease Control and Prevention 2004). Workers’ compensation insurance, which covers all medical expenses and part of lost wages associated with injuries, cost employers $63.9 billion in 2001 (Williams, Reno, and Burton 2003). The...
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...The interesting part of the two matters I will be addressing here is that an individual almost has to know prior to a suit being filed that litigation may occur. Discussions and written matter, all correspondence, emails and documents exchanged between parties should be prepared with a thought to potential litigation. Attorney Client Privilege and the Work Product Doctrine are two separate and distinct issues and should be treated within the legal world as separate disclosures. Attorney Client Privilege, which originated in Roman and canon law, has evolved into a recognized judicial doctrine and is necessary in order to provide clients with access to effective, well informed counsel. In Upjohn Co. v US the Supreme Court the Court stated that “Its purpose is to encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.”(a) However, since the passage of the Patriot Act (b) (terrorism, September 11, 2001), and the various corporate scandals leading to the Sarbanes Oxley Act(c) and the Securities and Exchange Commission (2001 Seaboard Report) and the fall out from such companies as Enron, WorldCom the federal, state and regulatory offices of the government are attempting to pierce the Attorney Client Privilege. The government has attempted through two (2) separate practices to tear into what was once considered a “privilege” that was recognized and adhered...
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...Aric Walker 12/4/2014 HSV-2250 Assignment #6 After visiting Marge, a resident at Upjohn Community Care Center, I came to the realization that there are various ways to improve one’s health in late adulthood, and exercise is the most important. During my visit, I observed a numerous amount of learning situations in the area of aged care facilities. I explored the facility with the director and as she took me around I had a little time to converse with a few of the residents and staff members. During this time, I found out that communicating with a few of the residents was a difficult process and a challenge to not only myself, but to the caregivers that may impact to implement the system of care. One of the things that stuck out most to me was that communication is one of the barriers that resulted in difficulty and stress between the caregivers and elderly patients. I understand that this may vary in different ways such as cultures, languages and loss of some forms of functionality. However, based on my knowledge of learning and experience from the visit of the nursing home; I will finish by reflecting the significance of this assignment and the suggestion of giving care for elderly people. While I’m sitting down in the resident dining room beside Marge, a 76 year old woman, I found a sense of amusement in her story as she thought I was a news reporter, which I explained to her that I wasn’t, and a bit of emotion as well when I realized her situation. Marge explained...
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...new campus by being "pioneers" - MICHR clinical research service staff were among the first occupants of the new campus and are now co-located with the IRB, clinical research billing, Cancer Center Clinical Trials Office staff, and many others, creating a clinical research administration "hub" allowing an unprecedented level of communication, collaboration, and sharing of best practices between these entities. MCRU Distributed Research Performance Sites: The Michigan Clinical Research Unit (MCRU) is currently located in three discrete areas. The main performance site is on level 1 in the UMHS Cardiovascular Center (CVC). The Domino's Farms extension is located approximately four miles from the hospital in northeast Ann Arbor. The Rachel Upjohn Building extension is on the East Ann Arbor Medical Center Campus. The MCRU facility in the CVC comprises approximately 7,400 square feet of space, which includes research-only outpatient exam rooms, research-only overnight stay beds in private rooms, and administrative offices. It also includes a research exercise physiology area, a procedure room, a nursing workspace, a medical preparation and storage room, a patient/subject intake area, equipment storage space, clean and soiled holing...
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