IMPROVING ACCESS TO BASIC MEDICINES

The Motivation

Oxfam estimates that one third of the world's population does not have access to basic medicines. Early in the last decade, as the HIV/AIDS crisis worsened in the developing world, civil society groups and governments began to challenge the role of pharmaceutical companies' patent protection and pricing policies.

The Opportunity

Institutional investors came together as the Pharmaceutical Shareowners Group to encourage the sector to formulate strategic responses to the crisis. They publicly called on pharma companies to tackle the issue of access to medicines in a more far-sighted way.

Investors also met with senior management of individual companies to discuss actions required to combat the health crisis, and the risk to their future business if they did not act.

The Impact

Several companies, such as GSK and Merck, Inc. have shown commitment and leadership in addressing these concerns by changing their practices and engaging with stakeholders to find solutions to global health problems.

Though more can be done, an improved investor focus on the issue has led to better corporate policies and more sustained efforts to improve access to medicines.