ESG Initiatives: Shaping the Future Landscape of Biotech

Current ESG Trends and Investment in Biotech

Current ESG trends in biotech emphasize patient health, responsible pricing, and innovation. Companies like Bristol Myers Squibb and Regeneron are leading with strategies focused on inclusivity and ethical practices, while ongoing assessments ensure alignment with stakeholder expectations in a rapidly evolving landscape.

"The ESG strategy focuses on three core pillars: advancing patient health around the world, expanding the boundaries of science, and fostering a high-performing and inclusive global workforce." --- (BMY, press release, 2024/04/25)

"we have taken a stance to defend patient access and industry innovation. We have set responsible standards in drug pricing by not increasing EYLEA's price for 12 years and we also encouraged the protection of novel discoveries and intellectual property coming from the innovative biotech sector." --- (REGN, event transcript, 2024/06/14)

"The biotech sector is actively addressing this need, with recent notable developments from several companies, including: Oncolytics Biotech Inc. (NASDAQ:ONCY) (TSX:ONC), GSK plc (NYSE:GSK), Guardant Health, Inc. (NASDAQ:GH), Exelixis, Inc. (NASDAQ:EXEL), and Gilead Sciences, Inc. (NASDAQ:GILD)." --- (GILD, press release, 2024/06/27)

"A biotechnology innovator since 1980, Amgen has grown into one of the world’s leading independent biotech companies, inventing powerful therapies—and reliably delivering them to patients. https://t.co/54Jv4eCjIG" --- (AMGN, Twitter post, 2024/07/17)

"We recognize ESG is a journey of continuous improvement, and our entire team is committed to advancing sustainability. In 2023, BMS conducted a global ESG materiality assessment to understand evolving stakeholder views and ensure its business priorities reflect the rapidly changing landscape." --- (BMY, press release, 2024/04/02)

Regulatory Impacts on Biotech ESG Initiatives

Regulatory impacts on biotech ESG initiatives are significant, as companies like Moderna emphasize transparency and stakeholder engagement in their ESG reports. Pfizer anticipates increased pricing pressures due to regulatory initiatives, while Amgen focuses on global regulatory filings, highlighting the critical role of compliance in shaping ESG strategies.

"Learn more about the progress we’ve made over the last few years in our third annual Environmental, Social and Governance (ESG) Report – a milestone that underscores our commitment to transparency, stakeholder engagement and integrating ESG priorities into the heart of our operations." --- (MRNA, Twitter, 2024/06/25)

"We anticipate that these and similar initiatives will continue to increase pricing and access pressures globally." --- (PFE, sec filing, 2024/Q2)

"And now on the global Amgen platform, we hope and expect to pursue regulatory filings for this condition around the world." --- (AMGN, conference, 2024/06/10)

"As we move forward, we remain focused on advancing our differentiated portfolio and achieving key clinical and regulatory milestones across Innovative Medicine and MedTech." --- (JNJ, earning call, 2024/Q2)

"We just received the FDA START designation, but if you look at the data that we shared last R&D day, and we’ll obviously provide updates on this going forward, one of the clearer pictures that emerged was that in MMA, we are seeing good movement of a biomarker of methylmalonic acid that’s pathognomonic for the disease, and so you can imagine of the challenges very quickly when you have a good biomarker is how do you validate that biomarker and show that moving that biomarker is reasonably likely to predict benefit, and that’s a scientific question we will work on and ultimately engage with regulators, including FDA, as a key step for moving forward." --- (MRNA, earning call, 2024/Q2)

Successful Case Studies of ESG Integration

Bristol-Myers Squibb and Gilead Sciences exemplify successful ESG integration through initiatives that enhance patient access in low- and middle-income countries and improve LGBTQ+ representation in clinical studies, respectively. These efforts demonstrate a commitment to social responsibility and inclusivity, shaping a more equitable healthcare landscape.

"Highlights from the ESG Report: Advancing Patient Health Around the World Advanced tailored access programs in low- and middle-income countries (LMICs) to help improve access to BMS' innovative portfolio." --- (BMY, press release, 2024/04/02)

"This #PrideMonth, we’re working with other leading healthcare companies and SGM Alliance to address LGBTQ+ representation in clinical studies – an effort to remove barriers to care and ensure our medicines reflect the diverse populations we serve. Read the press release." --- (GILD, Twitter post, 2024/06/06)

"We're also interested in select collaborations or acquisitions that complement our existing portfolio and expand upon Regeneron's extensive in house capabilities, strengthening our best collective ability to address serious diseases. And our strong financial position provides us flexibility to invest in the business while returning substantial value to shareholders." --- (REGN, event transcript, 2024/06/14)

"We look at deals that are strategically aligned to our business, have the potential to accelerate transformational science and are financially disciplined." --- (BMY, event transcript, 2024/05/07)

"We look forward to carrying this momentum through to approval. I'd like to thank the commercial teams and cross-functional partners across Gilead and Kite for their strong execution as we diligently expand our therapies to new populations, positively impacting more people all around the world. And with that, I'll hand the call over to Merdad." --- (GILD, earning call, 2024/Q1)

Challenges in Implementing ESG Initiatives

Implementing ESG initiatives in biotech faces significant challenges, including navigating political pressures, aligning lobbying with corporate values, and managing macroeconomic uncertainties like inflation and rising healthcare costs. Companies must balance stakeholder expectations with operational realities, complicating their commitment to sustainability and ethical governance.

"But as Peter said in his remarks, our capital expenditure guidance for the year embraces the activity that we have underway to make ourselves ready for the clinical and commercial challenge that we see imminently." --- (AMGN, earning call, 2024/Q1)

"Deborah Tillman: Thank you. The 6th item business, consideration of a stockholder proposal, requesting that the Board issue a report detailing the rest and costs to the company caused by opposing or otherwise altering company policy in response to state policy regulating abortion and detailing any strategies beyond litigation and legal compliance that the company may deploy to minimize or mitigate these risks." --- (GILD, event transcript, 2024/05/08)

"The proposal requests that Pfizer publish an annual report at reasonable expense, analyzing the congruency of political lobbying and electioneering expenditures during the preceding year against publicly stated company values and policies, including Pfizer's stated goal to end discrimination against women, ensure equal opportunities for leadership and access to reproductive health." --- (PFE, event transcript, 2024/04/25)

"Macroeconomic and other challenges Uncertain macroeconomic conditions, including the risk of inflation, higher interest rates and instability in the financial system, as well as rising healthcare costs continue to pose challenges to our business." --- (AMGN, sec filing, 2024/Q2)

"We own shares in Gilead for investment purposes, not activism purposes. It is not our intent to bring politics into the corporate governance process, but rather to get companies out of the habit of speaking out on highly contentious political issues." --- (GILD, event transcript, 2024/05/08)

Technological Innovations Supporting ESG Goals

Technological innovations in biotech are pivotal for advancing ESG goals. Companies like Pfizer emphasize scientific innovations to improve health outcomes, while Regeneron explores complementary technologies and innovative drug combinations, showcasing a commitment to sustainability and enhanced therapeutic approaches.

"At the first Breakthrough Energy Summit in 2022, I shared updates on the cutting-edge concepts and companies we’re supporting that address the five grand challenges of climate change." --- (MRNA, Twitter, 2024/06/25)

"Our goal at Pfizer is to have a transformational impact on human health, and communicating scientific innovations and patient stories is essential to reaching this goal." --- (PFE, Twitter, 2024/06/12)

"Looking beyond internal projects that we're financing, we also have a business development team that's out there looking at complementary technologies that might enhance the way we look at different therapeutic areas where maybe antibodies might not be the best way to approach those." --- (REGN, conference, 2024/06/11)

"I'm pleased to present our proposal, which asks Pfizer to publish an annual report analyzing the congruency of political lobbying and electioneering expenditures during the preceding year against publicly stated company values and policies. Among its corporate citizenship objectives, Pfizer has a stated goal to end discrimination against women, ensure equal opportunities for leadership and access to reproductive health." --- (PFE, event transcript, 2024/04/25)

"and tau for Alzheimer's and other neurodegenerative diseases.Additionally, with regard to our C5 program, our innovative approach involving the first combination of an antibody together with an siRNA both targeting the same molecule is progressing well and we are expecting to present updated data for initial potential indication, paroxysmal nocturnal hemoglobinuria by the end of this year.We're also looking forward to starting our Phase III program in geographic atrophy in the second half of this year." --- (REGN, earning call, 2024/Q2)