Investors call on pharma to collaborate against coronavirus

An international group of institutional investors is calling on major pharmaceutical companies to collaborate, not compete, on efforts to fight the coronavirus.

The investor group with more than $2.1 trillion in collective assets said Thursday that it will be sending letters to the pharmaceutical companies with a list of principles to follow.

The investor group is being led by Achmea Investment Management, an affiliate of the Netherlands' largest insurer. So far the group has 40 members, including asset managers, pension funds and insurers.

The investors said that while they see the pharmaceutical industry working on several initiatives to curb the coronavirus, "unfortunately, at the same time, they have seen some examples of priority being given to short-term financial and competitive considerations, and this hinders the optimal action against the virus."

The investors are calling on the companies to follow six principles during the crisis, including protecting employees, providing affordable access to products, sharing relevant and timely data with governments and others; and helping to ensure efficient supply and distribution systems. They also want pharmaceutical companies to make sure that R&D programs "sufficiently address infectious diseases" to prevent future pandemics.

Achmea Executive Board, Vice Chairwoman Bianca Tetteroo praised the initiative. "As an engaged shareholder, we are always in dialogue with the companies we invest in and we now want to use our influence to combat this crisis that is affecting us all," Ms. Tetteroo said in the statement. "We are doing this not only as an investor in pharmaceutical companies but also as an insurance company and health-care insurer."