Pfizer has put itself against the grain of other pharmaceutical giants by declining to back down on its price hike strategy. And on the heels of a new round of price hikes, investor members of Interfaith Center on Corporate Responsibility (ICCR) took to pen and paper to express their concerns.
Investors wrote in a letter to Pfizer CEO Ian Read they’re “distressed that Pfizer as responded to the intense scrutiny on pricing over the past year by continuing a relentless march forward on drug price increases.”
Pfizer’s unwillingness to adjust its strategy comes amid a raging 2-year battle over pharmaceutical companies’ pricing, with most Americans pushing for U.S. legislators to act on the matter.
ICCR members also noted the drug giant’s earnings growth could be attributed to the price increases, mentioning it questioned whether the increases are used primarily to cover “gaps in innovation.”
Read said in response to the letter that different strategies prove more beneficial to some companies, adding drug spending “has not changed in two decades.”