ESG Measures Could Incorporate Drug Pricing Data

Environment, social, and governance (ESG) measures indicate how pharmaceutical companies consider the global impact of their policies. Now, some analysts think the Institute for Clinical and Economic Review (ICER)’s Analytics tool could improve ESG scores. Adopting such a policy could result in lower drug prices in the United States.

Bernstein analyst Ronny Gal remarked, “In looking at the ICER database, we realized the data set can be used as an in-depth, independent, objective and transparent systematic analysis of how fairly individual companies set U.S. prices. Further, the database offers quantitative targets to what prices should be. Thus it offers an actionable decision-making tool for ESG investors and offers an alternative way to legislation to pressure the industry to control their prices (boards and CEOs care about their stock prices).” Read more here.

(Source: Beth Snyder Bulik, Fierce Pharma, 5/18/21)