AUM in Action

Investors Challenge Pharma on Medicare Pricing

A group of 34 investors has raised concerns about pharmaceuticals companies attempting to block provisions in the Inflation Reduction Act (IRA) that will allow for fairer prices for Medicare beneficiaries. Led by the Interfaith Center on Corporate Responsibility (ICCR), the investors are questioning lawsuits filed by pharma companies which are alleging the US government’s attempt to negotiate prices on medicines is “unconstitutional”. The statement further noted the considerable press coverage of these lawsuits, warning reputational damage would undermine shareholder value. Meg Jones-Monteiro, Senior Director of Health Equity at ICCR, said: “If these companies truly put patients and society first, then the companies should align their statements with their actions. Pharma companies should be focused on creating long-term value for patients, rather than extracting value from the government and taxpayers who have made these scientific discoveries possible.” Pharma companies targeted by the investors include AstraZeneca, Bristol-Myers Squibb, and Astellas Pharma. “Every company named in these lawsuits has a public mission statement, purpose, pillars, or foundations built around saving lives and putting patients first,” said Lydia Kuykendal, Director of Shareholder Advocacy at Mercy Investment Services. “We strongly urge those involved to reconsider their legal actions and instead look inward to examine why [Medicare] was necessary in the first place.” 

 

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