We met with AbbVie as part of an investor collaboration in the first of two engagements scheduled for the year. AbbVie agreed to the arrangement after we strategically withdrew a shareholder proposal filed at the company, which asked AbbVie to conduct a human rights impact assessment. It was the third consecutive year that NEI, along with other investors, had filed a proposal at the pharmaceutical company. The prior two proposals had asked AbbVie to report on the impact of extended patent exclusivities on product access.

Our engagement with AbbVie emphasizes the importance of embedding human rights into core strategy. This is particularly significant in the pharmaceuticals industry, where access to medicines is vital. Our focus is on how AbbVie can balance business goals with its responsibility to make medicines accessible. In 2024, AbbVie conducted a double materiality assessment, which considers issues that have both a financial impact to the company, as well as the company’s impact on society and the environment. The results of the assessment were disclosed in the company’s most recent ESG report and explicitly recognize that patient access and affordability are among the most material issues.

AbbVie’s past reliance on patent strategies and pricing has limited drug access, posing reputational and legal risks. These strategies, which are designed to maximize profits and protect intellectual property, can result in high drug prices and restricted availability, especially in lower-income regions. Our investor group has expressed that such approaches, while common in the industry, may undermine AbbVie’s long-term sustainability and social license to operate. We are looking for evidence that AbbVie is reevaluating how it manages exclusivity and pricing power and finding a more appropriate balance between innovation incentive and broad patient access.