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Case Study

Pharmagroup Int. and Fluvera: When subsidiary governance means losing competitive ground

By Ulrich Steger, Jochen Brellochs and Wolfgang Amann

9 pages

October 2006

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Reference: IMD-3-1706

Pharmagroup Int. faces difficulties in finishing the development and getting to the market an new, strategically important product. The product was created by a US start up, that had originally formed a strategic Joint Venture with Pharmagroup, but was then more and more integrated into the group because of difficulties in R&D that Pharmagroup was unable to control and overcome. Now, R&D takes place in a fully owned US subsidiary but Pharmagroup is still unable to make considerable progress with the current governance system. The learning objective is to understand the importance of subsidiary governance and its business dimension in multinational groups, to identify key problems and causes in the setting and to design a subsidiary governance system for the US operations that leads to efficient and timely conclusion of development and market launch.

Keywords

Corporate Governance, Subsidiary Company, Pharmaceuticals

Settings

Europe, United States of America
Healthcare, Pharmaceuticals
1998-2006

Type

Generalized Experience

Available Languages

English

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