Asset managers, pension funds and insurers have formed a group calling for international co-operation within the pharmaceutical industry to combat coronavirus.

Led by the asset manager Achmea Investment Management, the investors have sent letters to pharmaceutical companies asking them to join forces and to do their utmost to minimise the spread of the virus and its consequences. The group of over 40 includes among others: Actiam, asr., Gothaer, LocalTapiola, Nomura, Nordea, ONVZ, PGGM, Robeco and SPH, the GP’s pension fund, and represents total assets of €1bn.

Although the pharmaceutical industry has launched several initiatives to curb the coronavirus, the investors have seen some examples of priority being given to short-term financial and competitive considerations that hinders action against the virus. This group of engaged shareholders believes that right now financial considerations should take second place in the global challenge of getting the coronavirus under control as quickly as possible.

Bianca Tetteroo, vice-chair of Achmea’s executive board, explained the motivation for the letters. “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. We are doing this not only as an investor in pharmaceutical companies but also as an insurance company and healthcare insurer (Zilveren Kruis) and through Pensioenfonds Achmea. Through the investor statement and follow-up talks, we are calling for international co-operation among pharmaceutical companies. It is great to see that, at this time, a large number of parties have already joined this initiative.”

The group of asset managers and pension funds is also calling for maximum transparency and will closely monitor the pharmaceutical companies they invest in over the coming months. Their appeal is addressed to over 15 large pharmaceutical companies around the world, such as Roche, Gilead and Johnson & Johnson. Additional attention will be paid to this during shareholders’ meetings and as part of normal engagement processes.

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