Dramatic Price Increases in Brand Name Drugs spur Shareholders to action…

Investors from the Interfaith Center on Corporate Responsibility (ICCR) say new policies are needed to reign in drug costs

NEW YORK, April 27, 2011 /PRNewswire-USNewswire/ -- As the skyrocketing costs of brand name drugs leave millions of Americans skipping doses or abandoning their prescriptions, investors representing 14 faith and health care organizations are petitioning the nation's top pharmaceutical companies to re-examine pricing for commonly used drugs like Lipitor, Plavix and Celebrex in an effort to make them more affordable.

The group is citing several benchmarking reports including one from the General Accountability Office this past February that found branded drugs consistently outpacing generics relative to inflation (6.3% vs. 3.8%). ICCR members are asking management for pricing that hews closer to the consumer price index, a strategy they believe is a more accurate reflection of value and a more sustainable policy over the long term.

The Centers for Medicare and Medicaid Services projects that U.S. prescription drug spending will grow 93% during 2008-2018, exceeding all major categories of health expenditures. AARP reports that the branded prescriptions most widely used by Medicare patients increased 9.7%, far exceeding the cost for other consumer goods in the last 12 months: prices for generics during the same time period fell. ANovember 2010 report from Deloitte Consulting concluded that the issue will intensify, and that current pricing practices are not sustainable.

"The evidence from all the studies is clear, " said Ed Gerardo, director, Community Commitment and Social Investments of Bon Secours Health System, Inc. " Measures must be taken to control costs and bring transparency into the drug pricing equation."

Resolutions are on the ballots at the nation's top pharmaceutical companies including Johnson and Johnson, Abbott, Bristol-Myers Squibb and Pfizer, requesting that management utilize a combination of approaches to keep drug prices at reasonable levels.

ICCR members have been in dialogue with pharmaceutical companies for decades on issues of access and affordability.

Cathy Rowan, consultant to Trinity Health, said, " Many of us represent health care systems with missions to enhance the health of the communities they serve. We would like to see the pharmaceutical companies in which we invest have access to medicines at the heart of their business strategies."

"This isn't about charity or foregoing a profit," said Laura Berry, Executive Director of ICCR. "Our members expect that the companies they invest in espouse policies, pricing and otherwise, that promote both justice and sustainability while enhancing shareholder value. The absence of clear and reasonable pricing policies is neither just for consumers nor sustainable as a business practice."

Barbara Aires, coordinator, Corporate Responsibility, the Sisters of Charity of St Elizabeth, said, " It's hard to justify these increases in this economy. More and more, people have to choose between buying groceries and picking up their prescriptions and when people can't afford to take their medicines they get sick, straining an already fragile health care system. Our company needs a rational pricing policy that keeps branded products affordable and accessible to consumers yet will remain competitive to generics when patents expire."

About the Interfaith Center on Corporate Responsibility ( www.iccr.org ):

Currently celebrating its 40th year, ICCR is the pioneer coalition of active shareholders who view the management of their investments as a catalyst for change. Its 300 member organizations with over $100 billion in AUM have an enduring record of corporate engagement that has demonstrated influence on policies promoting justice and sustainability in the world.

SOURCE Interfaith Center on Corporate Responsibility

New Consumer-based organization in support of personal importation of prescription medicines launches national campaign

New Consumer-based organization in support of personal importation of prescription medicines launches national campaign

The RxRights Coalition, comprised of advocacy organizations around the country that are concerned about the high cost of pharmaceuticals in the U.S., has launched an outreach and communications program to ensure that Americans are able to exercise their right to access to safe, affordable medicines from licensed and registered pharmacies in Tier One Countries who standards of oversight and efficacy meet or exceed those of the U.S.

Lee Graczyk, acting director of Mature Voices Minnesota, the lead organizer for the Coalition, explains that that vital medications are often too expensive for American consumers because of the predatory pricing practices of the Pharmaceutical industry.

“Personal importation not enhances the health and physical well-being of huge numbers of Americans by allowing them to benefit from the access to vital medicines, and provides financial relief for Americans with prices that are as much as 60 percent less for the very same medicines,” Graczyk explains.

Graczyk points out that Congress has repeatedly passed legislation favoring personal importation, only to see it turned back by extensive lobbying by unmanageable amendments promoted by Pharma.

Now, even though it has made agreements with the current Administration, Pharma continues to raise prices at a pace exceeding the inflation rate, Graczyk explains.

Graczyk also points to the record of safety and efficacy of personal importation of medicines.

“We believe that Americans have the capability to act responsibly in exercising their right to purchase their medicines,” Gracyzk says. “There are many ways of verifying legitimate pharmacies, and one of the most important is their record of providing safe medicines.”

Graczyk himself can point a more than decade-long-history of working on behalf of safe, affordable medicines.

In his role as public policy director of the Minnesota Senior Federation, starting in 1999 he organized monthly bus trips to Canada to ensure that seniors could obtain affordable prescription drugs. The Federation collaborated with then-Senator Mark Dayton to fund this project. For six years, Senator Dayton donated his entire senatorial salary to the cause.

The bus trips helped bring national public attention to all Americans’ need for access to safe and affordable prescriptions, and the Federation soon realized that more than the bus trips were needed to provide access to the medicines. What was required was providing them with the ability to order prescription drugs online, bringing greater convenience and savings to even more Americans.

Graczyk was instrumental in establishing a prescription drug importation program for the Federation. He scrutinized more than 20 Canadian companies, and approved those with the highest standards for the program. All met the standards of Health Canada, the Canadian equivalent of the U.S. FDA

The program is now maintained by Mature Voices Minnesota and currently has 2,200 members. Participants save anywhere from 20 to 80 percent on their prescription drugs by using the service.

Additionally, Internet importation has become a “virtual lifeline” for millions of Americans—a lifeline the RxRights consumer coalition is working to protect to allow continued access to safe and affordable prescription prescription medicines.

The Coalition is a partnership of organizations throughout the country that support reimportation in order to expand this influence. The Coalition’s goal is to inform and educate both the public and elected officials on the issues surrounding prescription drug sales in this country.

Reasons to Join this Effort:

The prices that Americans pay for prescription medicines are the highest in the world.

A prescription drug one cannot afford is neither safe nor effective.

Every American is entitled to enjoy the health benefits made possible by prescription medicines.

Access to safe, affordable prescription medicines from licensed, regulated pharmacies outside the U.S. will reduce the costs of medications and improve the health of U.S. citizens.

Lack of competition in the U.S. allows pharmaceutical companies to fix prices and overcharge Americans.

The Coalition Pledges to:

Present the truth about the safety, efficacy, and cost-savings of prescription medicines from outside the U.S.

Support policies allowing U.S. citizens to exercise their right of freedom of choice in determining where they purchase their prescription medicines.

What You Can Do:

Join the coalition

Sign the petition

Tell your friends about the website

Contact your Senators and Representatives and let them know that you support prescription drug importation

Follow RxRights on Twitter, Facebook and YouTube

The Coalition holds regular teleconferences to discuss safe and affordable drug importation. Contact Lee Graczyk to join the Coalition or for more information.

List of Coalition Members