Detroit, Michigan, Dec. 06, 2018 (GLOBE NEWSWIRE) -- Investors for Opioid Accountability (IOA), a coalition of 53 institutional investors with over $3.4 trillion in assets, commends Endo International plc (NASDAQ-ENDP) for agreeing to issue a report (“Report”) on its Board of Directors’ (“Board”) oversight of opioid business risks and for expanding its compensation recovery policy and enhancing its corporate lobbying disclosures. The IOA also recognizes Endo’s Board Chairman, Roger Kimmel, and its President and Chief Executive Officer, Paul Campanelli, for meeting directly with IOA members to discuss the Board’s oversight and to review the Report prior to its release.
Endo recently agreed to expand its existing compensation recovery policy to include incidents related to senior management misconduct which does not require a financial restatement. Endo further agreed to enhance its corporate lobbying disclosures related to corporate expenditures. The Report which was finalized on October 25 was posted publicly on November 30. (Read the Endo Report here.)
“We believe Endo’s collaborative approach to engagement and to producing a robust public report, its adopting key compensation recovery and corporate lobbying disclosures, together with providing the IOA with direct access to both the Chairman and the President and Chief Executive Officer are critical actions to increasing investor confidence,” said Donna Meyer, Director of Shareholder Advocacy, Mercy Investment Services, Inc.
The IOA is composed of treasurers, asset managers, faith-based, public and labor funds and co-led by Mercy Investment Services and the UAW Retiree Medical Benefits Trust. Since its inception in 2017, the IOA has engaged with manufacturers, distributors and retail pharmacies on board oversight issues related to opioid business risks. In corporate engagements with these companies, the IOA investors have asked boards to assess and report on how governance practices, compensation incentives and compliance controls have changed since 2012, the height of the opioid epidemic, and what measures are now in place to mitigate future legal, reputational and financial risks.
“This report provides investors with valuable information about Endo’s board oversight processes and the measures being taken to manage material risks and protect long-term shareholder value,” said Illinois State Treasurer Michael Frerichs. “And in a larger sense, this report is an important bellwether. More and more companies with opioid risk exposures are heeding the calls of investors to implement strong board oversight structures, accountability systems, and robust reporting processes.”
“Endo appreciated its constructive engagement with the leadership of the IOA. We are committed to engaging in best practices across all of our business units and functions, and thoughtful coalitions like the IOA provide important feedback in helping us achieve that goal,” said Paul Campanelli, Endo’s President and Chief Executive Officer.
The Report discusses key elements related to Endo’s opioid business risks, including:
- The Board’s general oversight and monitoring of Endo’s compliance program, litigation matters and lobbying activities.
- Endo’s voluntary opioid risk mitigation efforts, including:
- Endo’s elimination of its pain product salesforce and its cessation of all opioid promotional activities;
- Endo’s market withdrawal of Opana® ER; and
- Endo’s discontinuation of all research, development and launch activities relating to new opioid products. Endo’s historical and existing compliance measures, including:
- The review and approval process for promotional materials;
- Salesforce training and oversight; and
- The identification of healthcare providers eligible for sales calls.
- The linkage between incentive compensation and compliance with Endo’s policies and procedures.
Endo joins Cardinal Health (NYSE-CAH) and Assertio (NASDAQ-ASRT) in releasing a board report requested by the IOA on opioid business risks. McKesson (NYSE- MCK) released the first of these reports in 2017 in response to an engagement with the International Brotherhood of Teamsters which began in 2016 prior to the formation of the IOA.
Information about the IOA is available at http://uawtrust.org/IOA as well as the Interfaith Center on Corporate Responsibility at https://www.iccr.org/our-issues/health/opioid-crisis
*****
Source:
Patricia McCarthy
Public Relations Consultant
UAW Retiree Medical Benefits Trust, a co-leader of the Investors for Opioid Accountability
patty@prmccarthy.com
313 418-4155