Pharmaceutical Proxy Campaign Scores Major Victories

Investors Support Faith-Based Calls For Access to Medicines, Accountability, and Transparency at Big Pharma Companies

NEW YORK CITY, NY///May 4, 2005///Unprecedented numbers of shareholders supported calls for increased accountability, transparency, and access to medicines at Big Pharma companies during the just-completed 2005 proxy season, faith-based investors announced today. The strong votes in support are an indication of the growing investor concern about the industry's business model. Some Interfaith Center on Corporate Responsibility resolutions topped 40%, a level of support rarely seen in the realm of shareholder advocacy.

The Interfaith Center on Corporate Responsibility (ICCR), a group of 275 faith-based institutional investors that seeks to influence corporate policy, is seeking increased accountability and transparency at seven major drug companies through three resolutions voted on at the upcoming annual shareholders' meetings. The massive reform effort focuses on Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Pfizer, Eli Lilly & Co., Wyeth, and the biotechnology company Gilead Sciences.

The ICCR-backed resolutions call on the pharmaceutical companies to:

--Analyze the economic impact of the HIV/AIDS pandemic on the company, along with the company's response to the international public health crisis;
--Publicly disclose twice-yearly the political contributions made with corporate funds, as well as the business rationale for each; and,
--Separate the roles of Chairman of the Board and Chief Executive Officer to allow for an independent oversight of the company.

While pharmaceutical companies have devoted significant resources to charitable responses to HIV/AIDS, shareholders - like the U.S. Jesuit provinces - want to see companies use economic analysis and their core business functions to respond to pandemic diseases.

"Drug companies bring unique skills in developing and distributing life-saving medicines. Shareholders have spoken, and loudly and clearly we say, use those skills to get medicines to those most in need. We can not afford to delay," says Sister Doris Gormley, who represents the Jesuits as the primary filers with Abbott Laboratories and Bristol-Myers Squibb.

The resolution on HIV/AIDS received 6.9% at Abbott Laboratories, 6.6% at Bristol-Myers Squibb, and 9.0% at Merck & Co. The Gilead Sciences annual meeting is May 10th.

Only weeks before the proxy season began, religious investors and their allies completed successful dialogues with Johnson & Johnson and Schering-Plough on the issue of political accountability and transparency.

"Many companies took some steps in the direction of political accountability and transparency," says Margaret Weber of the Adrian Dominican Sisters, co-chair of the Access to Health Care Working Group at ICCR, "but only Johnson & Johnson and Schering-Plough fully involved independent Board members in the critical task of managing political giving. They disclosed their political giving, including giving to so-called '527' organizations. They have blazed a trail which we expect the rest of the pharmaceutical industry to follow."

The resolution on political accountability and transparency received 6.5% at Abbott Laboratories, 6.5% at Eli Lilly & Co., 8.8% at Merck & Co., and 8.1% at Wyeth. It was withdrawn from Johnson & Johnson and Schering-Plough, and omitted by the Securities and Exchange commission from Bristol-Myers Squibb.

Religious investors enjoyed unprecedented support for their calls for a separation of the roles of Chair and Chief Executive Officer.

"Implementing this resolution would ultimately promote a more sustainable pharmaceutical industry business model," says John Celichowski, a parish priest from Milwaukee who has filed the resolution at Merck. "The resolution does not single out any particular CEO for criticism. But it is clear that an independent Chair would protect investors' interests by providing independent oversight of management and the CEO, evaluating long-term risk, and devoting greater attention to the ethical imperative of improved access to medicines."

The resolution on the separation of Chair and CEO received 17% at Abbott Laboratories, 24.5% at Eli Lilly, 46.5% at Merck & Co., 42.1% at Pfizer, and 39.6% at Wyeth. The resolution was withdrawn at Johnson & Johnson and was not filed at Schering-Plough.

Prior to the annual meetings of each company, ICCR sent a formal proxy solicitation seeking support for the slate of resolutions to almost three thousand institutional investors with over three trillion dollars in assets under management. This was the largest solicitation of its kind in the 2005 shareholder season. ICCR members also sought the support of proxy voting services such as Institutional Shareholder Services.

CONTACT: Dan Klotz, 917-438-4613/347-307-2866
or Marie Ewald, 212-764-3878, x224/917-538-0916