Turnaround of Schering-Plough Corporation

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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

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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.

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Background Note

SP was itself the result of a merger between Schering Corporation (Schering) and Plough, Inc (Plough) in 1971. During the late 1800s, Schering was established as the US subsidiary of Schering AG, a Germany-based pharmaceutical and chemical company...

Problems at SP

The troubles for SP began in 2001 as its blockbuster drug Claritin was set to expire at the end of 2002. In the US alone, Claritin served a market of 45 million people and contributed more than half of the company's US$ 9.8 billion in sales in 2001...

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Turning Around SP

As SP was dogged by problems such as slumping sales, demoralized work force, government investigations related to manufacturing violations as well as legal and regulatory challenges, experts suggested that the company was in need of a change in leadership...

More Challenges to Overcome

In January 2008, Vytorin, co-marketed by Merck and SP, came in for scrutiny when a clinical trial of the drug called Enhance study proved that Vytorin did not lower the risk of a heart attack more effectively than Zocor, a cholesterol drug known as a statin...

Excerpts Contd...>>

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