Minnesota Board of Investors Approves Shareholder Resolution To Ask Pharmaceutical Companies To Reduce U.S. Prices

The Minnesota State Board of Investment on Wednesday voted 3-1 to approve a shareholder resolution that asks Pfizer and other large pharmaceutical companies in which the state holds stock to "stop charging customers more" in the United States than in other nations, the Minneapolis Star Tribune reports (Duchschere, Minneapolis Star Tribune, 3/4). Minnesota Gov. Tim Pawlenty (R) first proposed the resolution Friday in response to recent moves by the company to end sales of Pfizer products to the United States from Canada. Last week, Pfizer Canada ended shipments to two of the 15 prescription drug wholesalers in Canada because they sold Pfizer products to unapproved Canadian pharmacies. In January, Pfizer sent a letter to Canadian pharmacies that outlined a new company policy, under which the pharmacies must obtain authorization from Pfizer to conduct business with wholesalers approved by the company; Pfizer will only provide authorization to pharmacies that promise not to sell company products to U.S. residents. Earlier this month, Pfizer informed seven Canadian mail-order pharmacies that the company will no longer supply them with Pfizer products. As part of a pension fund for state retirees, Minnesota has about 12.9 million shares of Pfizer stock valued at about $470 million; the shares represent about two-tenths of 1% of total Pfizer shares (Kaiser Daily Health Policy Report, 3/3).

Resolution Details
The board on Wednesday amended the resolution to include AstraZeneca, Bayer, Eli Lilly, GlaxoSmithKline, Merck and Wyeth. According to the Star Tribune, the resolution asks the companies to establish business practices that do not rely on "exorbitant revenue" from U.S. sales; end boycotts against Canadian wholesalers and pharmacies that sell prescription drugs to U.S. residents; and disclose expenditures on attorneys, lobbyists and marketers as part of efforts to maintain the current price structure for the prescription drug market. Pawlenty, Minnesota Attorney General Mike Hatch (D) and state Auditor Pat Anderson voted in favor of the resolution; Minnesota Secretary of State Mary Kiffmeyer voted against the resolution. Kiffmeyer said that although efforts to convince pharmaceutical companies to reduce their prices for U.S. residents are "laudable," the use of "funds that belong to state employees and retirees to pressure drug companies" is "not consistent with the board's fiduciary duty," the Star Tribune reports. However, Pawlenty said, "We're in a dogfight with these companies, and when you're in a dogfight you need some tools," adding, "It's a legitimate shareholder question to say, how are you going to sustain (pricing) when increasingly you have to choke off markets, choke off supplies?" Jack Cox, a spokesperson for Pfizer, did not comment on the resolution, but he said, "We recognize that our shareholders have different points of view and we respect the rights of our shareholders to express their views" (Minneapolis Star Tribune, 3/4).

Wisconsin Rx Drug Web Site
NPR's "Morning Edition" Thursday reported on a Wisconsin Web site that helps state residents purchase prescription drugs from Canada. Wisconsin Gov. Jim Doyle (D) late last month announced that the state expanded the Web site to include information on three Canadian pharmacies that residents can use to purchase medications. The Web site, which the state launched in January, had not included links, addresses or phone numbers of Canadian pharmacies (Kaiser Daily Health Policy Report, 2/26). The segment includes comments from Doyle, FDA Senior Associate Commissioner William Hubbard and Alice Kowalski, outreach coordinator for the Milwaukee County Department on Aging (Pitroff, "Morning Edition," NPR, 3/4). The complete segment is available online in RealPlayer.