Hikma Pharmaceuticals

2020 Engagement Case Study: Company response to the COVID-19 pandemic

Hikma Pharmaceuticals is in our Health theme. It manufactures non-branded generic and in-licensed pharmaceutical products. The company offers a range of healthcare therapies including injectable drugs and a range of generic products that are offered at affordable prices across a very wide range of developed and developing markets.

Engagement issue
Company response to the COVID-19 pandemic

Engagement Objective
As the pandemic unfolded, we scrutinised reactions from companies in the portfolio, particularly in the pharmaceutical sector, and engaged with them to see how they were responding.

Scope and process
WHEB co-signed a letter with other investors encouraging companies in this sector to abide by a core set of principles that governed their approach to the COVID-19 pandemic.

We extended this initiative by leading an engagement with Hikma. Our letter urged sector-wide collaboration to ensure affordability and support for all stakeholders.

Outcome: Successful
Hikma’s CEO responded, setting out the company’s approach. For example, Hikma supplies 11 out of the 13 most widely used injectable medicines needed to treat  COVID-19 patients in intensive care units in hospitals. In addition, the company was coordinating with suppliers to ensure that raw materials and components remained available across the industry.

We were reassured by these statements. We continue to monitor company behaviour to ensure that it remains aligned with the strong commitments outlined in the CEO’s letter to us and in these wider published statements.