DRUG COMPANIES MERGE
By Adnews Staff
U.S.-based Upjohn Co. and Sweden's Pharmacia AB are merging to form one of the 10 biggest prescription drug makers in the world. The deal is worth $13 billion(US) in a share swap. The new company will be called Pharmacia & Upjohn and will be based in London, with operations in Stockholm, Kalamazoo, Michigan and Milan. In Canada advertising for Upjohn is done by its in-house agency AXOhN Advertising, while Pharmacia's is done by Remtulla & Associates of Toronto. Drug company officials were unavailable yesterday to comment on how advertising will be handled in the future. By merging, the companies hope to reduce their costs by as much as $500 million(US) a year. Upjohn will benefit from Pharmacia's distribution network in Europe. Pharmacia will see the same advantages in the U.S. Upjohn's best-known drugs include Motrin, an analgesic, Cleocin, an antibiotic and Depo-provera, a contraceptive. Its over-the-counter products include anti-diarrhetic Kaopectate. Pharmacia's leading products include the anti-cancer drug Adriamycin and the growth hormone Genotropin. In May Upjohn Co. of Canada sold its only Canadian drug making operation to a consortium made up of two of its managers and Toronto-based Patheon Inc. Upjohn then signed a five-year manufacturing contract with Patheon.