Mundipharma (A): Shooting for the Moon

Mundipharma’s Consumer Health (Cx) business was established in 2013 in Asia and experienced rapid growth through company buy-backs of franchised businesses. It expanded to Europe and Canada by 2018 to establish a global presence. The core brand of the Cx business was Betadine, focusing on three major therapeutic areas: wound care, cold & flu remedies, and female health products. Betadine had a reputation for efficacy and was trusted by healthcare providers and consumers alike. However it was not profitable.
Mundipharma (MP) was considering a carve-out and divestment of the Cx business, reflecting an emerging trend in the pharmaceutical industry. New CEO Marc Prinsen assigned Yasemin Okur the task of developing and implementing a strategic plan to make it profitable. The case describes how she mobilized a cross-functional team that managed to turn around the Cx business and sell it within three years, as planned.

The case allows students to step into the shoes of a turnaround CEO to understand the difficulties when forced to trade off short-term needs for long-term benefits. They learn that balancing is key and time is of the essence. The case illustrates the value-creation in a turnaround by estimating the value of the Cx business before and after the turnaround/divestment.