Turnaround of Schering-Plough Corporation

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR365
Case Length : 28 Pages
Period : 2001-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Schering-Plough Corporation
Industry : Pharmaceuticals
Countries : USA, Global

To download Turnaround of Schering-Plough Corporation case study (Case Code: BSTR365) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

"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."¹

- 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." ²

Dan Sullivan, Editor of The Chartist³ in 2007.

Introduction

On November 3, 2009 global pharmaceutical giant Merck & Co., Inc.⁴ (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.

Turnaround of Schering-Plough Corporation - Next Page>>

1] "New Challenges, New Opportunities: Building a New Kind of Health Care Company," www.schering-plough.com, March 19, 2007.
2] "Schering-Plough has had a Full Recovery," www.moneyshow.com, May 30, 2007.
3] The Chartist is a weekly financial newsletter published in the US.
4] Established in 1891, Merck & Co., Inc. is a US-based global pharmaceutical company which develops manufactures and markets medicines and vaccines. For the year ended 2008, the company reported revenues of US$ 23.9 billion.

Case Studies in Business Strategy Volume VI

Case Study Volumes Collection

Business Strategy
Workbooks Collection