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Schering-Plough markets a wide range of prescription pharmaceuticals, over-the-counter consumer health care products, and animal health care products. Government regulations require a certain amount of animal testing for pharmaceuticals, but companies are afforded flexibility in choosing the tests that they use to establish the safety and effectiveness of new products. PETA’s “Give the Animals 5” Campaign calls on companies to abandon five crude and cruel animal tests, replacing them with state-of-the-art and scientifically valid non-animal methods that are already in use in other countries. With the help of PETA supporters who hold stock in Schering-Plough, a resolution was filed in the fall of 2004, calling on the company to do the following:
Despite its progressively worded “Animal Care and Use Policy,” Schering-Plough took a position in opposition to our shareholder resolution and sought permission from the Securities and Exchange Commission (SEC)—the agency responsible for administering federal securities laws in the U.S.—to exclude our resolution from its proxy statement, arguing that it dealt with ordinary business matters that are not subject to a vote by stockholders. The SEC staff did not concur with any of the company’s arguments and ordered Schering-Plough to publish the PETA-sponsored resolution in its shareholder proxy materials. Subsequent discussions between Schering-Plough executives and PETA’s science advisors led to a commitment by the company to “conduct an interactive dialogue with [PETA] over the next 12 months in a good-faith manner intended to cover the items raised [by PETA].” Items for discussion will include the following:
In light of Schering-Plough’s willingness to engage in a constructive and ongoing dialogue about these issues, PETA voluntarily withdrew its shareholder resolution. Wyeth >
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