In 1995, Pharmacia & Upjohn merged with Monsanto, a leading biotechnology company, to form Pharmacia & Upjohn Company.
This merger marked a significant milestone in the company's history, expanding its reach and capabilities in the global pharmaceutical market.
The combined company had a diverse portfolio of products, including prescription medications, animal health products, and agricultural biotechnology.
Pharmacia & Upjohn's global presence continued to grow, with a presence in over 100 countries and a workforce of over 50,000 employees.
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Reason for the Merger
Pharmacia and Upjohn had comparable market values, making the merger a "merger of equals".
The merger was driven by Upjohn's weakness in R&D compared to its competitors, with several patents on drugs like Xanax having expired.
Upjohn was seeking a European partner to enhance its growth and gain more markets for its products.
Pharmacia was facing problems with its growth hormone, Genotropin, due to severe price competition.
The merged company will draw on Pharmacia's efforts to develop anticancer drugs and products for anesthesia.
Pharmacia was looking for a new distribution and marketing network to distribute its products in the US.
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The Merger Impact
The merger between Upjohn and Pharmacia created a new company, Pharmacia & Upjohn Inc., which became the world's ninth-largest drug company. This massive deal was worth $13 billion and eliminated around 4,000 jobs.
The merged company will save about $500 million a year by cutting jobs and eliminating duplication. This cost-cutting measure will help the company stay competitive in the industry.
Pharmacia's efforts in developing anticancer drugs and products for anesthesia will complement Upjohn's research, making the merged company a stronger competitor in the market.
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Pfizer Swallows Up
Pfizer Swallows Up Pharmacia in a $60 billion deal, creating a company that produces many of the common prescription drugs found in medicine cabinets around the world.
The merger was announced on a Monday, and it's a surprising blockbuster deal that expands the reach of the world's largest drug company.
Pfizer's products include Viagra, Lipitor, and Zoloft, while Pharmacia's major drug is the arthritis medication Celebrex.
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Pharmacia also makes the Rogaine hair products and the Nicorette smoking cessation line.
Pfizer's over-the-counter products include Listerine mouth wash and Rolaids tablets to Halls cough drops and Visine eye drops.
The deal was approved by the boards of both companies but still needs approval from regulators and shareholders.
Pharmacia shareholders will receive 1.4 shares of Pfizer stock for each share in Pharmacia, representing a 36 percent premium over Pharmacia's closing price of $32.59 a share on Friday.
Pfizer's stock soared in the late 1990s with the success of Viagra, and this deal is no stranger to mega-mergers, as Pfizer completed a $115 billion acquisition of Warner-Lambert in 2000.
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Merger Creates Ninth-Largest Drug Company
The merger between Upjohn and Pharmacia created the world's ninth-largest drug company, with a combined market value of $13 billion. This massive deal will bring together 34,500 employees worldwide under one roof.
The new company, Pharmacia & Upjohn Inc., will be headquartered in London, with about 50 to 100 people working there. Kalamazoo, Stockholm, and Milan, Italy, will serve as centers for most of its operations.
Upjohn's CEO, John Zabriskie, will be the CEO and president of the new company, while Pharmacia's CEO, Jan Ekberg, will be the chairman of its board. This leadership team is expected to bring a strong business logic to the merged company.
The merger aims to eliminate duplication and cut costs by about $500 million a year, which will be achieved by eliminating more than 4,000 jobs. This move is part of a growing trend in the industry to reduce costs and increase efficiency.
Pharmacia has been looking for a U.S.-based partner for some time, and this merger will provide it with a strong presence in the American market. The deal is expected to be approved by regulators and shareholders, paving the way for the creation of the new company.
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Frequently Asked Questions
Is Upjohn owned by Pfizer?
Upjohn was owned by Pfizer from 2002 to 2020. However, the current ownership status is not specified in the provided information.
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