A vast number of investors have engaged for 10 years and more with pharmaceutical companies on the problem of access to medication in emerging markets.
This year, ICCR (Interfaith Center for Corporate Responsibility)* has decided to launch an appeal to more than 2'700 investors to support a resolution which will be put to shareholder vote at the annual general meetings of the following American companies :
- Abbott Laboratories** (annual general meeting : 22.04.2005)
- Bristol-Myers Squibb** (annual general meeting : 03.05.2005)
- Gilead Sciences (annual general meeting : 10.05.2005)
- Merck** (annual general meeting : 26.04.2005)
The resolution requests that companies review the economic effects of the HIV/AIDS, tuberculosis and malaria pandemics on their business strategy. At the same time the shareholders ask that a report on the economic costs and initiatives to date on this subject be published in no less than six months after the adoption of the resolution.
The problem of access to medication in emerging markets is an unavoidable political issue for pharmaceutical companies. Many of them have been highly criticised in the last few years for their attitude in face of the public health crisis in these countries. In Switzerland, Roche in particular is regularly in the firing line. This is doubly damaging to drug companies as it menaces their reputation and license to operate and in turn is a risk for investors.
Since 2003, ethos is part of the « Pharmaceutical Shareowners Group »* (PSG). The PSG has engaged with 7 American and European pharmaceutical companies, i.e. Novartis and Roche. This process has enabled the elaboration of a list of 8 key recommendations considered an efficient basic strategy to address the public health crisis in emerging markets.
ICCR’s initiative aiming for a greater transparency of this problem, is in line with the strategy of the PSG. It augments the action of the different actors on the question of access to medication. Ethos, along with ICCR, is of the opinion that a greater transparency by the pharmaceutical companies on this subject can bring a better evaluation of the risks and opportunities that they face. This transparency is essential for a constructive dialogue between all the stakeholders.
The ethos Foundation encourages all shareholders of these companies to support the resolution of ICCR.
* Coalition of institutional investors based in the United States (see www.iccr.org)
** Companies in which ethos has shares
*** European coalition of 14 institutional investors representing GBP 880 billion (CHF 1’920 billion) – (see www.pharmashareownersgroup.org and ethos’ news of 18.09.2003 and 20.09.2004).
