ORG 383 Strategic Planning
Omnicare Strategy Plan
Carol Cochran
August 23, 2007
Case Study 23 Page C389
Omnicares Vision
To combine OCR's outstanding people, process and technologies in novel ways to create entirely new eClinical services and outcomes that revolutionize how we conduct clinical trials and create value for our customers.
Company History: Omnicare, Inc. is the nation's major provider of pharmaceutical products and services to nursing homes, assisted living institutions, and other long-term care facilities. Its pharmacies usually provide prescription drugs and pharmaceutical consulting services to geriatric institutions located within a 150-mile radius. Omnicare also uses its relationships with nursing homes to serve as a contract research organization (CRO) that conducts a wide variety of clinical trials in 27 countries for pharmaceutical and biotechnology companies.
Origins and Changing Directions in the 1980s
On May 19, 1981, Omnicare, Inc. was incorporated under the laws of Delaware. The company was started to operate healthcare services that it had gained from W.R. Grace & Company and Chemed Corporation. On May 20, 1981, the company chose Edward L. Hutton, a longtime W.R. Grace officer, as chairman and Joel F. Gemunder as president; they continued to lead the company for many years. Two months later, in July 1981, Omnicare began publicly trading its common stock.
Omnicare and Chemed remained closely entwined for several years. In 1982 Chemed became totally independent as a public entity. In its early years Omnicare ran a variety of businesses that generally provided products and services to hospitals. Several general and specific problems made Omnicare's hospital focus problematic. The average p ...