The U.S. Securities and Exchange Commission agreed to allow AmerisourceBergen shareholders to vote on a proposal demanding the wholesaler provide more information on steps taken to manage financial and reputational risks associated with the opioid crisis. The agency also allowed another proposal to proceed in which the company would have to disclose if its board clawed back compensation from senior executives due to misconduct.
The decisions are a victory for a coalition of 40 institutional investors that are pressuring drug makers and distributors to investigate how the companies are responding to increased business risks caused by the opioid crisis. The investors noted that AmerisourceBergen (ABC) reached a $16 million settlement last year with the West Virginia attorney general for failing to report suspicious orders of controlled substances
In explaining its rationale, the agency noted “the company’s role in the distribution of pharmaceutical products, including opioids,” according to a Jan. 11 letter to attorneys for AmeriscourceBergen. And the SEC rejected arguments that the proposal on managing risks sought to micromanage the wholesaler or that the company had already taken steps to implement the proposal.
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