A WIDE GAP
Global vaccination is how to end pandemics, according to the World Health Organization. Without it, variants flourish, as COVID-19 has shown. The gulf between COVID-19 vaccination rates in rich countries and in poor ones is wide. Some activists and nongovernmental organizations have targeted access to closely held pharmaceutical-industry know-how, as well as pricing policies, to close the gap.
VACCINE ACCESS POLICIES
Investors who want to change pharmaceutical-industry policies can practice active ownership by voting on shareholder resolutions that seek to improve vaccine access. COVID-19 has spurred activity. According to Morningstar Sustainalytics’ proxy data feed, shareholders voted on three COVID-19 vaccine access resolutions in 2021, and five in 2022.
PRICING AND IP
In the long run, access is an innovation challenge for drug-company business models. This year’s resolutions focused on two narrower issues: pricing and intellectual property. A Johnson & Johnson resolution asked for a report on the public-health costs of not sharing production technology. A Merck resolution asked it to report on how public financial support for its COVID-19 drug would affect access policies. Resolutions at Pfizer and Moderna asked for reports on the feasibility of transferring IP.
DECLINING SUPPORT
Merck’s resolution got the most support, with 36% of shareholders voting in favor. Just 29% of Moderna’s shareholders and 27% of Pfizer’s supported the IP-transfer resolution, according to Sustainalytics. On average, support for resolutions related to COVID-19 vaccine access declined to 21% this year, from 31% in 2021. Activists did chalk up some wins, withdrawing pricing-related proposals at Pfizer and Moderna following concessions from both companies.
