On Monday, Treasurers Frerichs, Perdue and Torsella penned a letter calling on drug distributor McKesson to address the heroin and opioid epidemic or possibly face financial consequences in their stock prices.
The treasurers’ demand comes as numerous state and local governments nationwide file lawsuits against drug companies, including McKesson, alleging that the companies knew or should have known an excessive number of opioid painkillers were being sent to the same area.
The treasurers asked McKesson to: change company bylaws to provide for an independent board chair; engage an independent counsel to identify the financial risks derived from McKesson Corp’s role in the opioid epidemic; connect executive compensation with progress in combating the opioid epidemic; and produce a report on the scope of the opioid epidemic, the impact of the problem on public health and government resources, and possible responses to the problem.
Should McKesson not act upon this request, the treasurers will re-evaluate their state’s investment position in the company and encourage other institutional investors to do the same.
McKesson Corp. (NYSE: MCK) describes itself as the oldest and largest health care company in the nation and distributor of one-third of all medications used daily in North America.
About the Illinois Treasurer The Illinois Treasurer is the state’s chief investment officer and Frerichs is a Certified Public Finance Officer. He protects consumers by encouraging savings plans for college or trade school, increasing financial education among all ages, and removing barriers to a secure retirement. As the state’s Chief Investment Officer, he actively manages approximately $25 billion. The portfolio includes $13 billion in state funds, $7 billion in college savings plans and $5 billion on behalf of local and state governments. The investment approach is cautious to ensure the preservation of capital and returns $28 to the state for every $1 spent in operations. The Treasurer’s Office predates Illinois incorporation in 1818. Voters in 1848 chose to make it an elected office.
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