November 20, 2014
2014 Access to Medicine Index Published
by Robert Kropp
Sustainable investors note improvements by pharmaceutical companies in areas of access and
affordability but call for more rigorous codes of conduct and transparency around when patents will
expire. First of a two-part series.
SocialFunds.com --
Published every two years, the Access to Medicine Index addresses a global inequity in which much of the pharmaceutical
industry is complicit: �An estimated two billion people still do not have access to the
health-related products they need,� the recently published 2014 version of the Index states.
The Index focuses its analysis on the
activities of major pharmaceutical companies in developing nations; the 2014 version was expanded
to include more Latin American countries, and additional diseases as well.
�The
pharmaceutical industry is continuing to step up its efforts to improve access to medicine in
developing countries,� the Index states. �The number of relevant products in the pipeline has
grown, companies are increasingly tailoring prices between countries and within countries, and more
companies are experimenting with innovative access-oriented business models.�
For the
fourth consecutive time, GlaxoSmithKline was ranked first among the 20 largest pharmaceutical firms
analyzed in the Index. Novo Nordisk rose from sixth in the previous Index to second, �partly due to
its integrated approach to access to medicine, high level of transparency and robust codes of
conduct, for which evidence of auditing was provided,� the Index reports. �It renewed its access
strategy in 2013, has applied equitable pricing strategies for diabetes products in the majority of
relevant countries, and is one of two leaders in rapid registration and filing for marketing
approval.�
In certain significant areas, however, progress by pharmaceutical companies has
been static at best. For instance, �Commitment to ethical behavior does not correlate with
performance,� according to the Index. While all 20 firms have code of conduct policies in place,
�18 were the subject of settlements or fines for corrupt behavior, unethical marketing or breaches
of competition law.�
Also, �Companies remain conservative in their disclosure of where
patents are active and when they will expire � information that is very useful to medicine
procurers and generic medicine manufacturers. No company independently and publicly disclosed
patent statuses for products relevant to the Index.�
Before the 2010 Access to Medicine
Index was published, a coalition of sustainable investors issued an
Investor Statement, according to which the signatories�which
manage a cumulative $5 trillion in assets�commit to accounting for �the analysis generated from the
Index as appropriate in the ESG (environmental, social, and corporate governance) analysis we
conduct on the companies we invest in.�
In response to the 2014 Index, Lauren Compere of
signatory Boston Common Asset
Management stated, �We are encouraged by the findings of the 2014 ATMI highlighting that more
companies are focusing on innovative access-oriented business models in critical geographies such
as GSK�s work in Africa. We are further encouraged that almost half of the access strategies are
focused on diseases such as lower respiratory infections, diabetes and hepatitis that are
increasingly impacting the developing world.�
�However,� Compere continued, �We clearly
need to see greater advances in the institution of, and compliance with, codes of conduct that will
guard against incidents of bribery, corruption, and unethical marketing that have resulted in
expensive settlements and fines for so many companies.�
Cathy Rowan of the Maryknoll
Sisters, like Boston Common a member of the Interfaith Center on Corporate Responsibility (ICCR), stated, �As
faith-based investors, we believe pharmaceutical companies have a moral obligation and a social
contract to assist the global community in responding to global health needs.�
On December
8th, ICCR members will conduct an investor briefing on the 2014 Access to Medicine Index Published.
Next: Domestic reports call into question the ethics of drug pricing and trials in the
pharmaceutical industry.
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