Prescription Drug Access

2004 – Abbott Laboratories

Resolved: That the Board of Directors review pricing and marketing policies and prepare a report (at reasonable cost and omitting proprietary information), available to shareholders by September, 2004, on how our company will respond to rising regulatory, legislative and public pressure to increase access to and affordability of needed prescription drugs.

Supporting Statement

The pharmaceutical industry faces a number of long-term challenges that threaten our Company’s viability and could adversely affect shareholder value.

“The pharmaceutical industry and its legal representatives are now beset by a torrent of suits alleging fraud and predatory pricing, demands for more stringent regulation, and investigation of longstanding practices in patenting, promoting and producing drugs.” (Drug Wars, American Bar Association Journal, December 2002).

The pharmaceutical industry “depends heavily on public trust” and is particularly vulnerable in times of crisis and/or controversy, according to Rating Research LLC. (Reputation Strength Rating, Rating Research LLC, June 2003).

Only 13% of people “normally believe a statement by a pharmaceutical company.” (Attitudes to Government Regulation Vary Greatly For Different Industries, Harris Interactive, 2 April 2003).

57% of Americans think our industry “should be more regulated by government.” Only 7% responded they preferred less regulation. (Attitudes to Government Regulation Vary Greatly For Different Industries, Harris Interactive, 2 April 2003).

In an annual survey conducted by the Kaiser Commission on Medicaid and the Uninsured, nearly all states reported taking action to rein in prescription drug costs in the past year (Rising Costs Prompt States to Reduce Medicaid Further, NY Times, 23 September 2003)

Given the social and political pressures to resolve the issue of accessibility and affordability of healthcare in the US, we believe the directors of our company have a duty to inform shareholders of the steps taken to address the challenges confronting our industry: negative public perceptions, legal actions at state and federal levels on prescription access and anti-trust issues, law suits alleging antitrust and consumer fraud violations.

Sponsors:

Lead: Catholic Healthcare West, Sr. Susan Vickers; Benedictine Sisters Charitable Trust; Catholic Health Initiatives; Christus Health; Congregation of Divine Providence - San Antonio, Texas; Congregation of the Srs. of Charity, Incarnate Word, Houston; Srs. of Charity of St. Elizabeth, NJ; Srs. of Mercy Reg. Community of Detroit Charitable Trust; Srs. of Mercy Regional Community of Burlingame; Srs. of St. Francis of Philadelphia; Srs. of St. Francis-Dubuque, Iowa; Srs. of St. Joseph of La Grange, Illinois; Srs. of the Holy Spirit and Mary Immaculate; Ursuline Srs. of Tildonk, US Province