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Upjohn

The Upjohn Company was an American pharmaceutical manufacturer founded in 1886 in , by physician William E. Upjohn and his brothers and James, initially as the Upjohn Pill and Granule Company, with operations soon relocated to Kalamazoo. The firm gained prominence for innovating dissolvable "friable" pills, patented by Upjohn in 1885 after experiments in his home attic, which allowed for better digestibility and marked a shift from traditional powder-based medicines. Over its history, Upjohn produced key products such as pills for treatment, Citrocarbonate , the hemostatic agent Gelfoam used in surgeries, the Lincocin for penicillin-allergic patients, the hair regrowth treatment Rogaine (), and compounds for reproductive health. It also advanced steroid medicines, including corticosteroids for treating conditions like , , and autoimmune diseases such as and . The company expanded significantly in the mid-20th century, going public in and supporting U.S. military efforts in both World Wars through pharmaceutical production. By the 1990s, facing competitive pressures, Upjohn merged with Sweden's Pharmacia AB in November 1995 to form , a global healthcare provider focused on human pharmaceuticals. This entity later merged with /Searle in 2000 to become Pharmacia Corporation, which was acquired by in 2003 for $60 billion, integrating Upjohn's into 's operations. In 2019, Pfizer announced the spin-off of its off-patent medicines business—revived under the Upjohn name in 2015—combined with N.V., culminating in the formation of Inc. on November 16, 2020, a global generics and biosimilars leader with approximately 32,000 employees (as of 2024) and a portfolio serving one billion patients annually. Upjohn's legacy endures through institutions like the W.E. Upjohn Institute for Employment Research, established in 1945 to study labor markets, and its influence on pharmaceutical innovation, including contributions to injectable contraceptives like Depo-Provera and wartime medical supplies. The company's headquarters, designed by architect with interior gardens, symbolized its growth-era prominence in Kalamazoo.

Founding and Early History

William E. Upjohn

William Erastus Upjohn was born on June 5, 1853, in , as one of twelve children to physician Uriah Upjohn and his wife Maria. Growing up in a medical family, Upjohn was one of four siblings who became physicians. Upjohn attended the , where he earned his in 1875 at the age of 22. Following graduation, he established a medical practice in rural , initially serving communities near his hometown before settling in , where he practiced for approximately ten years. In Hastings, Upjohn focused on addressing the health needs of local patients, often dealing with the challenges of administering medications in an era when pills were hard, poorly soluble, and difficult for patients—especially children and the elderly—to swallow or digest. During the early 1880s, while continuing his practice in , Upjohn began experimenting in the attic of his home to improve , aiming to create a more effective delivery method. By , he developed the friable pill, a compressible tablet designed to easily under pressure into a that dissolved readily in the , thereby enhancing and improving patient compliance with bitter-tasting remedies. He filed for a on , , and received U.S. No. 312,041 on February 10, 1885, for the process of manufacturing these pills through a layered technique that avoided hardening. This invention addressed key limitations in contemporary pharmaceuticals, allowing for precise dosing and better absorption without the inconsistencies of liquid or powder forms. As demand for his improved pills grew among fellow physicians, Upjohn recognized the potential for broader application and decided in to commercialize production, marking a pivotal shift from his clinical work.

Company Establishment and Initial Operations

The Upjohn Pill and Granule Company was incorporated in in , by Dr. William E. Upjohn and his brothers Henry, Frederick, and James, with a focus on manufacturing compressed tablets known as friable pills designed for easy dissolution. The initial capital was $5,000, enabling the launch of operations in a small local factory. Early production involved hand-rolling the pill dough using a in the of Upjohn's home before transitioning to the factory, where the workforce consisted primarily of family members and local residents. The company quickly developed an initial product line of over 50 remedies, including 110 types of and 50 granules formulated from natural plant extracts and minerals such as for treatment. By the end of its first year, operations had expanded to 12 employees producing from 186 different medicinal formulas. Seeking improved rail access for distribution and further growth, the company relocated to , in 1900, where the workforce reached 25 employees. This move facilitated the company's first international sales in 1903, primarily of quinine-based products to markets abroad.

Pharmaceutical Innovations and Products

Key Drug Developments

The Upjohn Company played a pivotal role in the development of corticosteroids during the and , leveraging innovative microbial techniques to produce these vital agents on a commercial scale. In 1952, Upjohn researchers, including David H. Peterson and Herbert C. Murray, discovered that the mold Rhizopus arrhizus could introduce an 11α-hydroxy group to progesterone, enabling efficient synthesis of and subsequent intermediates for acetate. This breakthrough allowed Upjohn to commercialize and by 1953, addressing the high costs and limited supply of earlier extraction methods from animal adrenals. Building on this, Upjohn introduced prednisolone in 1955 under the brand name Delta-Cortef, a potent with reduced sodium-retaining effects compared to earlier steroids, making it particularly effective for treating , allergic conditions, and other inflammatory diseases. Prednisolone's synthesis involved further chemical modifications of , such as Δ1-dehydrogenation, and quickly became a cornerstone therapy, significantly improving patient outcomes in chronic inflammatory disorders. Upjohn's advancements in steroid chemistry also extended to reproductive hormones, contributing to the emergence of oral contraceptives in the 1950s and 1960s through collaborations and in-house innovations. The company sourced progesterone from , which utilized the Marker degradation process starting from diosgenin extracted from Mexican yams, to support its fermentation-based of progestins. This partnership facilitated Upjohn's development of (MPA), a highly active oral progestin, which was introduced in 1959 for menstrual disorders and later adapted for contraception, including the injectable form Depo-Provera approved in 1972 for and (and in 1992 for contraception). In 1964, Upjohn launched Provest, an oral contraceptive containing MPA combined with , offering reliable ovulation suppression with fewer side effects than earlier formulations and marking a key step in making hormonal widely accessible. These efforts built on Upjohn's expertise, enabling scalable of steroid hormones essential for the contraceptive revolution. In the realm of antibiotics, Upjohn achieved a major milestone in the 1960s with the discovery of , the first member of the lincosamide class. Isolated in 1962 by Upjohn scientists , Dietz, and DeBoer from Streptomyces lincolnensis soil samples, lincomycin was commercialized as Lincocin in 1964 for treating serious gram-positive bacterial infections, including those resistant to other antibiotics like penicillin. Its unique mechanism, inhibiting bacterial protein synthesis by binding to the 50S ribosomal subunit, provided an alternative for patients with allergies or resistant strains, and it was particularly valuable in staphylococcal infections. This development underscored Upjohn's leadership in fermentation, paralleling their steroid work and expanding treatment options during a period of rising antibiotic resistance. Upjohn's innovations also included the hemostatic agent Gelfoam in the 1940s, a absorbable sponge used in surgeries to control . The company's early research laid foundational chemical strategies for subsequent developments, including non-steroidal anti-inflammatory drugs (NSAIDs). Upjohn introduced in the 1970s for relief with improved gastrointestinal tolerability over aspirin. Additionally, Upjohn developed compounds like Prostin E2 in the 1970s for reproductive health applications, such as inducing labor and treating . In the , Upjohn advanced dermatological treatments with Rogaine (), approved in 1988 for hair regrowth. These products highlighted Upjohn's versatile application of research to human and , supporting while adhering to emerging regulatory standards.

Research Milestones

The Upjohn Company significantly advanced its research infrastructure in the 1940s through expansions that incorporated cutting-edge technologies, particularly for penicillin production amid demands. As part of a collaborative effort with other U.S. firms under government oversight, Upjohn scaled up deep-tank processes to produce substantial quantities of , transforming a previously low-yield, surface-culture method into an efficient industrial operation that supplied the to . This wartime initiative not only accelerated accessibility but also established Upjohn's expertise in microbial , laying the groundwork for broader pharmaceutical innovations. To support these efforts, Upjohn initiated major facility expansions in Kalamazoo, including the acquisition of 1,500 acres along Portage Road in 1946 for integrated research and manufacturing sites. Construction, completed by 1951 at a cost of $32 million funded entirely by company earnings, enabled enhanced experimentation with biological processes and positioned the firm for postwar growth in microbiology-driven discoveries. These developments marked a pivotal shift toward large-scale R&D, emphasizing sustainable production techniques over traditional . In the , Upjohn researchers pioneered methods using fungi to modify precursors, enabling cost-effective synthesis of vital hormones. In 1952, D. H. Peterson and H. C. Murray demonstrated that species could selectively hydroxylate progesterone at the 11α position, introducing an essential oxygen atom for production; a parallel effort by W. J. Haines' team converted substance S to via Mucorales fungi. Sourcing starting materials from abundant plant sterols like derived from soybeans, these techniques bypassed scarce animal extracts, facilitating industrial-scale output and dramatically reducing costs for corticosteroids by the mid-1950s. Upjohn's sustained investment in fueled antibiotic discovery, with dedicated departments screening microbes for novel compounds and optimizing for agents like and neomycin. This focus yielded numerous patents for antimicrobial processes and isolates, such as those for Streptomyces-derived , underscoring the company's role in advancing microbial ecology for therapeutic applications. In recognition of these enduring contributions to steroid and research, Upjohn's Kalamazoo facilities received National Historic Chemical Landmark designation from the in 2019.

Corporate Growth and Transformations

Expansion and Leadership

Following the founder's death in 1932, leadership of The Upjohn Company transitioned to his nephew, Dr. Lawrence Upjohn, who served as president from 1930 to 1944 and guided the firm through the while maintaining profitability. In 1944, Donald S. Gilmore assumed the presidency, bringing corporate expertise from outside the family and leading expansion efforts in the postwar era until his retirement in 1953. Everett G. Upjohn, son of Lawrence Upjohn, then became president in 1953 and later chairman, emphasizing research and product development during the and early . By , Ray T. Parfet, who had married into the Upjohn family, took over as president and , steering the company through decades of global growth until the late 1980s. Under this succession of leaders, Upjohn transformed from a regional manufacturer into a multinational pharmaceutical powerhouse, with annual sales growing from approximately $3 million in the mid-1920s to $1.76 billion by 1980. This expansion was fueled by innovative products and strategic investments in research, enabling the company to capture larger market shares in antibiotics, steroids, and drugs. International growth accelerated in the , as Upjohn established subsidiaries and export channels in and to counter from global rivals and diversify streams beyond the U.S. market. By the , foreign operations accounted for about 30% of total sales, supported by localized and adaptations. To broaden its portfolio beyond prescription pharmaceuticals, Upjohn diversified into consumer health and animal health sectors during the and 1970s, launching over-the-counter products like topical creams and acquiring firms such as the Corwin Company in to strengthen its position in agricultural and veterinary markets. These moves, combined with organic R&D, helped mitigate risks from patent expirations and positioned the company for sustained competitiveness up to the 1980s.

Mergers, Acquisitions, and Restructuring

In 1995, The Upjohn Company merged with the Swedish pharmaceutical firm in a stock-swap transaction valued at $13 billion, creating Inc. as the ninth-largest pharmaceutical company worldwide. The combined entity, headquartered in , generated approximately $6.8 billion in annual sales and employed around 30,500 people after staff reductions, with John Zabriskie, formerly Upjohn's CEO, leading as president and CEO. This merger integrated Upjohn's product lines, such as antibiotics and anti-inflammatories, with Pharmacia's portfolio to enhance global market presence. In 2000, merged with Company and its Searle subsidiary to form Pharmacia Corporation. The merger of Pharmacia Corporation with Inc. was announced in July 2002 and completed on April 16, 2003, in a $60 billion all-stock deal, marking one of the largest mergers in the at the time. Under the terms, Pharmacia shareholders received 1.4 Pfizer shares per Pharmacia share, resulting in a combined company with projected 2002 revenues of about $48 billion and a dominant 10% global . The acquisition fully integrated Pharmacia Corporation's operations and product portfolio into Pfizer, dissolving the independent entity and bolstering Pfizer's position in areas like and . In 2015, Pfizer revived the Upjohn name for its global off-patent medicines business. By 2020, Pfizer spun off this Upjohn Business unit—comprising off-patent legacy products from the original Upjohn portfolio—through a reverse Trust transaction combined with N.V., forming Inc. in a effectively valued at around $20 billion based on combined . Completed on November 16, 2020, the merger created a global leader in generics and biosimilars with anticipated 2020 revenues of $19-20 billion, where Pfizer retained a 57% ownership and received $12 billion in cash. focused on accessible medicines, leveraging Mylan's generics expertise and Upjohn's established off-patent brands to address unmet needs in over 160 countries.

Upjohn Co. v. United States

In 1976, the Internal Revenue Service (IRS) launched an investigation into Upjohn Company, a pharmaceutical manufacturer, focusing on potential corporate bribery involving questionable payments made by its foreign subsidiaries to foreign government officials to secure government business contracts. To respond to this inquiry and assess potential legal liabilities, Upjohn's general counsel, Gerard Thomas, along with outside counsel, conducted an internal investigation. This effort included distributing a detailed questionnaire to all foreign general and area managers requesting information on such payments, as well as conducting interviews with the questionnaire recipients and approximately 33 additional officers and employees, totaling communications with about 86 current or former employees. These communications were explicitly marked as confidential and intended solely for the purpose of obtaining legal advice regarding compliance with U.S. laws, such as the Foreign Corrupt Practices Act, and preparing for possible litigation or regulatory proceedings. The IRS issued a in November 1976 seeking production of the questionnaires and related interview notes, which Upjohn resisted on grounds of attorney-client privilege and the work-product doctrine. The for the Western District of Michigan enforced the , finding no of privilege but determining that the government's need outweighed any protection, and ordered disclosure. On appeal, the United States Court of Appeals for the Sixth affirmed the district court's decision in part, rejecting any claim of but applying the restrictive "control group" test to limit attorney-client privilege in the corporate context to communications from top management or those employees with decision-making authority who act as conduits to counsel. Under this test, responses from lower-level employees, such as the foreign managers involved, were deemed unprotected because they were mere fact witnesses rather than part of the corporation's control group. The Sixth also held that the work-product doctrine did not apply to materials sought via IRS . The granted and, in a unanimous 9-0 decision authored by Justice Rehnquist on January 13, 1981, reversed the Sixth Circuit's ruling on the attorney-client issue (Upjohn Co. v. , 449 U.S. 383 (1981)). The rejected the control group as unduly narrow and inconsistent with the purposes of the , which is to encourage full and frank communication between attorneys and their clients to promote effective representation. Instead, it expanded the scope to protect communications made by any corporate employee to acting in that capacity, provided the communications occur at the direction of corporate superiors and are intended to secure for the corporation. The emphasized that limiting to a small control group would discourage corporations from gathering necessary information through lower-level employees, potentially undermining candid and corporate compliance efforts; in Upjohn's case, the employees' responses were privileged because they were directed by management for purposes and kept confidential within the company. Burger filed a agreeing with the holding but expressing reservations about the majority's application of the work-product doctrine to IRS summonses, though he joined the judgment. The Upjohn decision had significant implications for , establishing the "Upjohn warning" as a where must inform employees that the belongs to the , not the individual, and that the company may waive it or disclose communications as needed. This ruling facilitated broader internal investigations and programs by assuring corporations that employee communications with would generally remain protected, thereby promoting proactive self-auditing and reducing the risk of inadvertent legal violations in multinational operations. It remains a cornerstone , influencing federal and state courts in extending beyond strict managerial hierarchies while requiring case-by-case assessments of and purpose. In the 1970s, the FDA subjected Upjohn to intense regulatory scrutiny over the promotion and safety of its antibiotics, particularly Cleocin (clindamycin) and Panalba (a combination of and ). Reports of severe side effects, including pseudomembranous associated with Cleocin, prompted the FDA to require significant label changes in 1975, restricting the drug to serious infections where less toxic alternatives were inappropriate and adding a prominent warning about the risk of fatal . Similarly, Panalba faced challenges after studies showed it was less effective than its components alone and linked to allergic reactions and at least 12 deaths; the FDA ultimately banned its sale in the U.S. market in 1970 following legal battles, though Upjohn continued exporting it abroad under a regulatory . Upjohn also encountered major regulatory hurdles with Depo-Provera (), an injectable contraceptive. The FDA rejected approval for contraceptive use in 1974 and again in 1983, citing concerns over potential cancer risks observed in animal studies, particularly breast and endometrial cancers; this led to public hearings, scientific debates, and restrictions on U.S. marketing, though the drug was exported internationally and eventually approved in 1992 after additional . These actions highlighted concerns over aggressive of antibiotics for broader uses despite emerging , resulting in market restrictions rather than direct fines in these cases. During the , Upjohn engaged in several patent disputes to defend its innovations, including a notable 1986 against Riahom Corporation for infringement of patents related to -based hair growth formulations, where the court granted a preliminary after finding a likelihood of success on the merits and potential irreparable harm. In the , Upjohn encountered ethical controversies surrounding its research practices and corporate restructuring, including protests against at pharmaceutical facilities amid rising activism. Compliance with antitrust regulations became a key issue following the 1995 merger with Pharmacia Aktiebolag to form ; the required a consent agreement addressing potential anticompetitive effects in markets for products like and antibiotics, with provisions to license technology and divest assets if necessary, enforceable by civil penalties up to $10,000 per violation. These challenges reflected heightened public and regulatory focus on ethical conduct in and market consolidation.

Facilities and Infrastructure

Corporate Headquarters

The Upjohn Company's corporate headquarters, known as Building 88, was completed in 1961 on a 100-acre site in , serving as the firm's primary administrative center. Designed by architect of (SOM), the two-story structure encompassed 286,000 square feet in a modernist style characterized by clean lines, expansive glass elements, and a symmetrical layout that integrated the building with its rolling landscape. The design emphasized natural light and open spaces, with executive offices arranged around interior courtyards to foster a collaborative environment reflective of corporate ideals. A defining feature was the incorporation of seven interior gardens, landscaped by the firm with influences from traditional Japanese elements such as asymmetrical stone arrangements, water pools, and evergreen trees, alongside sculptures that enhanced the aesthetic and contemplative quality of the spaces. These gardens functioned as semi-enclosed atria, providing visual and spatial connections between work areas while integrating into the daily operations; notable commissions included modernist sculptures that complemented the . The building's innovative blend of functionality and artistry, including dedicated spaces for executive leadership, underscored Upjohn's commitment to a progressive corporate image during its expansion era. As a of modernist corporate , the symbolized Upjohn's prestige and innovation in the for over four decades, hosting key functions until the company's merger with in 1995 and subsequent acquisition by in 2003. Following the merger, relocated operations, leading to the building's vacancy and eventual between 2005 and 2007 as part of site consolidation efforts.

Manufacturing and Research Sites

The Upjohn Company began its manufacturing operations in 1886 with the establishment of the Upjohn Pill and Granule Company in Kalamazoo, Michigan, where Dr. William E. Upjohn and his brothers produced the first friable pills using a small laboratory setup in a commercial block basement. Operations expanded within Kalamazoo, moving to a new building on Farmer's Alley by year-end and to Lovell Street in 1888 to accommodate growing demand for pharmaceutical products. In Kalamazoo, Upjohn developed a central manufacturing complex, expanding significantly during the 1910s and 1920s to include facilities for tablet compression and granule production, which enabled large-scale output of dissolvable medications. Further expansions in through the 1950s transformed the Kalamazoo complex into a major hub for advanced pharmaceutical production, particularly for steroids and tablets. During this period, Upjohn invested in new buildings and equipment to support microbial fermentation processes, which were critical for synthesizing corticosteroids like on an scale, meeting post-World War II medical needs. By the , the company extended manufacturing capabilities to , just outside Kalamazoo, adding dedicated plants for tablet coating, packaging, and to boost efficiency and capacity for hormones derived from plant sources. These developments solidified Kalamazoo as Upjohn's primary U.S. production center, with the complex forming a triangular area bounded by streets. Internationally, Upjohn established its first major overseas site in , , in 1957, initially focusing on control chemistry laboratories and later expanding to include manufacturing and research for distribution of pharmaceuticals. In the 1960s, the company opened a facility in to serve Latin markets, leveraging a partnership with for sourcing and producing steroid intermediates from local yams, which supported regional production of hormone-based drugs. Following the 1995 merger with to form , the company initiated closures of about 40% of its global plants in 1996, including several U.S. sites, to streamline operations and cut costs by $300 million annually. After Pfizer's 2003 acquisition of , additional U.S. plants tied to the legacy Upjohn operations were shuttered or repurposed in the mid-2000s as production shifted toward global efficiency. The Upjohn business was later spun off in 2020 to combine with , forming , which integrated remaining facilities into a of over 40 sites worldwide, phasing out some older Kalamazoo-area operations in favor of consolidated international production.

Legacy and Impact

Economic and Community Contributions

The Upjohn Company significantly shaped the economy of , as a cornerstone employer throughout much of the . By 1989, the company directly employed 8,300 individuals in Kalamazoo County, comprising 6.2% of the county's total workforce, with these positions generating an additional 12,540 indirect and induced jobs for a combined impact of 20,840 positions or 15.6% of county employment. This employment footprint bolstered the regional economy, contributing $1.39 billion in total output—equivalent to a substantial share of local GDP—and supporting $702 million in , which represented 16.7% of the county's total. The company's economic influence extended beyond direct operations through family-led philanthropy that reinforced community infrastructure and well-being. The Harold and Grace Upjohn Foundation, established in 1958 by Grace Upjohn (widow of company leader Harold Upjohn), supports initiatives in the Kalamazoo area focused on alleviating human suffering through scientific research and care for the sick, aged, and helpless, including contributions to local institutions such as colleges and hospitals, enhancing educational access and services since the mid-20th century. In 1963, as part of its diversification efforts, Upjohn acquired a polymer chemicals business, which fit with its existing manufacturing processes and continued operations through the 1970s; the division was eventually sold in 1985.

W.E. Upjohn Institute for Employment Research

The W.E. Upjohn Institute for Employment Research was established on July 1, 1945, in Kalamazoo, Michigan, by William E. Upjohn, the founder of The Upjohn Company and a prominent member of the Upjohn family, as an independent nonprofit organization dedicated to employment studies. Initially funded through an endowment from the W.E. Upjohn Unemployment Trustee Corporation—created in 1932 by the family to administer funds set aside from company resources for worker support—the institute aimed to address unemployment challenges in the post-World War II era by providing rigorous, nonpartisan research. This philanthropic effort reflected the Upjohn family's commitment to community welfare in Kalamazoo, where the company had deep roots. From its inception, the institute's research has centered on the causes and effects of , workforce training programs, and , with a goal of informing effective interventions to enhance employment outcomes. Early work emphasized regional labor market dynamics, including seminal publications like the "Jobless in Michigan" series launched in the , which documented patterns, worker interviews, and policy recommendations specific to the state's during periods of . These efforts established the institute as a key resource for understanding localized employment issues and advocating for targeted training and reemployment strategies. As of 2025, the institute employs over 100 staff, including economists, policy analysts, and administrative personnel, operating from its headquarters at 300 South Westnedge Avenue in Kalamazoo. It maintains ongoing with the U.S. Department of Labor, serving as a primary data repository for DOL-funded evaluations of programs, such as the National Job Partnership Act , and participating in initiatives like the inaugural Job to advance worker standards. Recent has expanded to contemporary challenges, including automation's impacts through AI exposure analyses, projecting occupational shifts and policy needs to mitigate risks. The Institute co-led the 2025 American Job with partners including Gallup and Jobs for the Future, finding that less than half of U.S. workers have quality jobs, influencing labor policy discussions. These contributions continue to influence federal and state labor policies, emphasizing evidence-based approaches to workforce adaptation.

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