The current global revenue from the worldwide pharmaceutical market is estimated at USD 1 trillion and is expected to grow to USD 1.4 trillion by the year 2020. The ten largest pharmaceutical companies are based in the developed world and account for 30 per cent of global market share. It is estimated that 85 per cent of the drugs sold in the world are sold to the 20 per cent of the global population who live in developed countries. There currently is a growing disparity in accessing medicine in the developing and developed world.
A number of pharmaceutical companies are in the top 100 listed companies, at least in the developed world. As a result, many investment funds will hold shares in pharmaceutical companies.
Based upon GES’ recent research2 , there are a number of areas of potential risk including (create bullet points): * Business ethics and responsible marketing practices; * Access to medicine; * Product quality, safety and traceability; and * Cybersecurity, including the protection of drug development work, which in turn has financial implications for the business.
The engagement will concentrate initially on business ethics and access to medicine. We will examine the differences in companies’ policies and procedures and consider any outstanding allegations of wrong-doing. We will approach companies of different sizes and market share as we envisage that smaller companies will have similar issues as bigger ones.
For more information, please see our Stewardship & Risk brochure, or contact the responsible Engagement Manager.
This engagement project is open for investors and will start when there is sufficient participation.