(Updates with reaction from Pfizer)
By Toby Sterling
AMSTERDAM, Jan 6 (Reuters) - A group of institutional
investors representing $3.5 trillion in assets under management
on Thursday called on pharmaceutical companies to link their
executives' pay to making COVID-19 vaccines available around the
globe.
While the majority of citizens of wealthy nations are
vaccinated and many are now receiving booster shots, across the
African continent vaccination rates average only around 10%.
The World Health Organization has set a target of a 70%
vaccination rate in every country by July 2022 in order to end
the "acute phase" of the pandemic.
The 65 participating asset managers, pension funds and
insurance companies signed a letter viewed by Reuters dated Jan.
4 that was sent to the boards of Pfizer Inc, Johnson &
Johnson, Moderna Inc and AstraZeneca Plc
. The letter asks them to adopt a WHO roadmap for
achieving equitable vaccine access and tying it to management
pay "in a meaningful, material, measurable and transparent way".
Vaccine deliveries worldwide have been delayed by production
problems, hoarding by governments of rich countries, export
restrictions and red tape.
The investor group said key points include better
participation in international vaccine programs and licensing
and sharing technology so countries can produce vaccines
locally.
"It should make business sense for a vaccine manufacturer to
aim to vaccinate the whole world," said Frank Wagemans of Achmea
Investment Management, one of the backers of the initiative with
$225 billion in assets under management.
Other participating investors include Nomura, Investec,
Boston Common Asset Management, Candriam, GAM, Aegon and PGGM.
Moderna could not immediately be reached for comment.
A spokesperson for Pfizer said the company and partner
BioNTech had met a goal to deliver 1 billion doses to low and
middle income countries in 2021 and would do so again in 2022.
Johnson & Johnson said in reaction that 60% of its vaccine
has been shipped to low and middle income countries as of the
end of 2021, and the company is in talks on a licensing
agreement with Aspen Pharmacare to produce vaccine in South
Africa.
A spokesperson for AstraZeneca said the company has
distributed most of its supply to low and middle income
countries, and it does so for no profit in those countries.
Peter Singer, Special Advisor to the Secretary General of
the WHO, said the investor initiative was "extremely welcome".
The current unequal vaccine distribution represents "not
only a complete moral failure for the world but also a very
significant economic failure and a significant drag on the world
economy", he said.
Achmea's Wagemans said he believed vaccine makers will
generally be receptive to the request but the fund manager will
look at how the companies put promises into action before their
annual meetings.
"I cannot speak for the other signatories as to how they
will vote, but for Achmea management, yes, we will vote against
(executive pay packages) if there's no link made" to the WHO
roadmap, he said.
($1 = 0.8843 euros)
(Reporting by Toby Sterling; editing by Richard Pullin, Emelia
Sithole-Matarise, Kirsten Donovan)
Astrazeneca (AZN)
