Those who have left say life goes on after a merger

Tuesday, July 16, 2002

BY JANE C. PARIKH
KALAMAZOO GAZETTE

Jim VanSweden's job with Pharmacia Corp. moved to New Jersey in 1998, but he stayed in Kalamazoo and took a job with Kalamazoo College as its director of communications.

VanSweden, who was Pharmacia's professional and patient relations manager, said his decision not to head east was the right one at the time for his family. He, like many former colleagues and community leaders, said he did not know what Pfizer Inc.'s buyout of Pharmacia would mean for the Kalamazoo area.

But there is life after a big corporate merger, even if it results in some employees making complete changes in their careers. And even if the growth of what had been a hometown company, isn't something to smile about.

"My gut feeling is that this adds another layer of distance between the company and this particular community," VanSweden said of Pfizer's buyout of Pharmacia Monday. "Instead of being in the belly of a fish, Pharmacia is in the belly of one fish in the belly of another fish."

Harold Karnes, who retired in 1993 after 28 years at The Upjohn Co., said he thinks any changes at Pharmacia will most likely occur at its administrative offices in New Jersey. Karnes is part of a group of five Pharmacia retirees who in 1997 began the Vicksburg-based Bridge Organics, which manufactures and supplies chemical compounds that pharmaceutical companies use in research.

"I think that Pfizer will pretty much leave (Pharmacia's) research here alone," Karnes said. "Pharmacia has a fine stand-alone chemical manufacturing group. I think (the new organization) will still utilize that."

Bassam Harik, chairman of Western Michigan University's economics department, said there was a lot of negative talk surrounding the Pharmacia-Upjohn merger in 1995 and around the deal that merged Monsanto into the resulting company, Pharmacia & Upjohn in 2000.

"A lot of the scary scenarios did not come to pass, especially when Pharmacia moved their headquarters to New Jersey," Harik said. "If (Pfizer) becomes stronger, it will probably be good for us."

A woman who has worked for more than 20 years in Pharmacia's research area, and asked not to be identified, said she doesn't expect any impact from the buyout on her position for at least one year. She said she thinks it bodes well for Pharmacia's continued presence in the area that there isn't a lot of duplication of concentrated efforts between the two companies.

"Even though it's been announced, it's not set in stone and we have been told that Pfizer is still our competitor and not to share any information with them," she said.

After surviving the merger of Pharmacia and Upjohn and the subsequent merger with Monsanto, she said it was "tough" to get worried about the Pfizer-Pharmaceutical deal. But, she said the announcement took her and many of her colleagues by surprise.

"They always like to do it on a weekend," she said. "We know that we're being bought out, whereas before we thought it was a merger of equals."

Karnes, vice president of marketing for Bridge Organics, said Pfizer and Pharmacia are two of his company's biggest customers. He said Bridge has an excellent relationship with both companies, but admits some concern about working in the future with one mammoth company.

"We have a lot of eggs in one basket, I'm not sure I like that too much," Karnes said. "When you have an awful lot of sales to one company in our business, there's always the ability to alienate somebody."

Steven Callander, who left Pharmacia in 1998 and is now a senior writer in executive communications at Eli Lilly and Co. in Indianapolis, said he thinks cost-cutting measures will likely involve projects that will be postponed rather than the employment area.

Callander, who went through the Pharmacia-Upjohn merger, said for employees there's still the uncertainty of not knowing what, if any, role they will play under Pfizer.

"The (pharmaceutical) industry is clearly under a lot of pressure and there's no doubt, given the number of trends, that there's going to have to be more consolidation," Callander said. "Fred Hassan's had a history of leading mergers and acquisitions. It was clear that he would do another deal or two, but I'd always assumed he'd be the one in control."

Hassan, who was Pharmacia's chairman and CEO, announced Monday that he will stay on for at least one year as vice chairman of Pfizer.

Jane C. Parikh may be reached

at 388-8558 or jparikh@

kalamazoogazette.com.