On September 30, 2021 United Therapeutics Corporation (Nasdaq: UTHR) reported it has officially converted to a public benefit corporation (PBC) (Press release, United Therapeutics, SEP 30, 2021, View Source [SID1234590565]). The conversion follows shareholder approval of the company’s proposal to amend its charter at today’s Special Meeting of Shareholders. This is the first PBC conversion of a public biotech or pharmaceutical company.
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United Therapeutics’ conversion to a PBC aligns its legal charter with its longstanding practices of improving patients’ health, enhancing employee engagement, attracting top talent, promoting healthy communities, and addressing important sustainability priorities through its use of green-building technologies, while simultaneously delivering strong shareholder returns. The company has a proven track record of value creation, along with six years of experience operating its Lung Biotechnology PBC subsidiary (the first ever PBC subsidiary of a publicly-traded biopharmaceutical company), so it understands this corporate form well. This PBC conversion initiative was led by the Nominating and Governance Committee of United Therapeutics’ Board of Directors.
"We are inspired by our shareholders who recognize that caring for our patients, planet, employees, communities, and other stakeholders enhances our ability to generate strong shareholder returns," said Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer of United Therapeutics. "Becoming a PBC aligns United Therapeutics’ corporate structure with our foundational DNA and gives us a strong platform to advance our objectives of developing novel pharmaceutical therapies and finding a cure for end-stage organ diseases by creating an unlimited supply of transplantable organs."
United Therapeutics has been proud to receive support from key partners and employees throughout this process, and our stakeholders have shared the following statements as the company operates in its new form as a PBC:
"My interest in United Therapeutics stems from its clear, passionate care for the patients and communities it serves and an unrelenting mission to find a cure for pulmonary arterial hypertension (PAH). A close relative of mine was diagnosed with PAH, and Martine’s deep interest in the mission was inspiring both personally and professionally," said Manju Lal, a Senior Cardiopulmonary Specialist at United Therapeutics. "United Therapeutics values its people and I am proud to be a part of the family, for the past 14 years and counting!"
Robert C. Bourge, M.D., Professor of Medicine, Radiology, and Surgery and Senior Vice Chair, Department of Medicine at The University of Alabama at Birmingham, said, "Having worked with United Therapeutics since its inception, I am not surprised by this evolution. United Therapeutics has always prioritized patients’ wellbeing, and its commitment to expanding the therapies available to patients living with pulmonary hypertension and advancing the future of organ transplants will continue to drive its success. I am honored to have been part of the growth and development of United Therapeutics."
John Hoeppner, Head of U.S. Stewardship and Sustainable Investing for Legal & General Investment Management America, added, "As a manager that values responsible financial sustainability as well as leadership and creativity, we applaud UT being willing to explore the potential that becoming a PBC may hold."
A PBC is a for-profit corporation that, while creating value for shareholders, must also consider the best interests of those materially affected by the company’s conduct and the specific public benefit that it chooses to adopt in its charter. PBCs are intended to produce public benefits and to operate in a responsible and sustainable manner.