Investors Applaud U.S. National Institutes of Health's Landmark Agreement
To Share HIV Patents with Newly-Formed Medicines Patent Pool

Members of the Interfaith Center on Corporate Responsibility Urge Pharmaceutical Companies to Join the Patent Pool to Extend Life-Saving Medicines to Poor and Underserved Communities

NEW YORK, NY///October 4, 2010///Interfaith Center on Corporate Responsibility (ICCR) members celebrate the U.S. National Institutes of Health’s (NIH) decision to grant the first license of U.S.-government patents to the newly-formed Medicines Patent Pool Foundation.  This agreement will facilitate access to life-saving HIV medicines for those who need them most, particularly in the developing world where the cost of treatment is priced out of reach. Currently, 33 million people are living with HIV worldwide and only one third are receiving treatment. Patent pools are a mechanism whereby a number of patents held by different parties are brought together and are made available to others for production or further development.

The patent pool will foster generic competition which is proven to reduce prices, and on September 30, 2010, the NIH became the first patent-holder to share its intellectual property with the Medicines Patent Pool.  ICCR members believe that, in addition to making these drugs more affordable, the pool has the potential to stimulate the production of new drug combinations and spur research into new pediatric versions of these essential medicines.

“The Medicines Patent Pool is an important vehicle for establishing a path for developing critical HIV medicines quickly and at cheaper prices while still respecting the business needs of participating companies,” commented Sister Barbara Aires, Sisters of Charity of St. Elizabeth, New Jersey. “We applaud NIH for taking the first step in supporting this important initiative and encourage pharmaceutical companies to join.” 

The Medicines Patent Pool Foundation is an initiative which was recently established with the support of UNITAID, an innovative global health financing mechanism founded in 2006 to improve access to medicines for HIV/AIDS, tuberculosis and malaria, diseases that disproportionately impact the world’s poorest countries.  The Medicines Patent Pool streamlines the production of needed HIV/AIDS formulations and offers legal certainty for all participants. Pharmaceutical companies can actually protect their business model by operating within the patent pool because it will provide an alternative to expected increased pressure for compulsory licensing in countries with populations that cannot afford the more expensive treatments for a variety of diseases.

“As of today, there is still an incredible unmet need for effective 2nd and 3rd line antiretrovirals  for treating HIV/AIDS in adults or suitable formulations for the very young in resource-constrained environments,” said Lauren Compere of Boston Common Asset Management.  “This requires a different business model for pooling together the vast knowledge of pharmaceutical companies to rapidly develop more affordable versions to help address what remains a very grave pandemic.”

For nearly a decade, ICCR members have engaged global pharmaceutical companies as shareholders to expand access to medicines for poor and underserved communities.  Through dialogues with companies including Abbott, Bristol-Myers Squibb, Gilead Sciences, GlaxoSmithKline, Johnson & Johnson, Merck and Pfizer, and through the  filing of shareholder resolutions, members challenge companies to address vital issues, including voluntary licensees, public-private partnerships and alternative models for Research & Development.  “ICCR has historically been at the forefront in evaluating pharmaceutical companies’ responses to public health crises in emerging markets,” says Cathy Rowan of Trinity Health.“ Our 2006 report, Benchmarking Aids was the first of its kind to provide ratings on pharmaceutical companies’ practices on a whole host of issues from shareholder reporting and research and development to addressing pediatric needs and overall accessibility.”

“The patent pool has the potential to move the industry to the next stage of addressing HIV, which includes developing new fixed-dose combinations and pediatric formulations, while respecting intellectual property,” says Sister Judy Byron of the Northwest Coalition for Responsible Investment.  “We are pleased that the U.S. National Institutes of Health are the first group to join the pool and look forward to many pharmaceutical companies joining in the near future.”

About the Interfaith Center on Corporate Responsibility

ICCR is a membership organization of 275 institutional investors representing 100 billion in assets under management that advocates for ethical business practices across a wide variety of issues including global access to medicines.

CONTACT:
Lauren Compere
Boston Common Asset Management
617-720-5557

Barbara Aires
Sisters of Charity of St. Elizabeth, New Jersey
973-290-5402

David Schilling
Interfaith Center on Corporate Responsibility
212-870-2928