Marlboro maker Philip Morris acquires stake in UK asthma inhaler company

LONDON – Tobacco group Philip Morris International said on Wednesday it had bought 22.61% from UK respiratory drug developer Vectura in a market purchase.

Cigarette maker Marlboro has said it plans to make further purchases of Vectura in the market at 165 pence ($ 2.27) a share.

Philip Morris International said on Monday it had entered a bidding period with Vectura shareholders following the unanimous recommendation of the asthma inhaler company’s board of directors.

The Vectura Board of Directors cited a higher cash award offered to Vectura shareholders by Philip Morris International and said the benefit to stakeholders of the cigarette maker’s significant financial resources, its commitment to improve research and development and autonomy were factors in his decision.

“PMI’s acquisition of Vectura is part of our long-term strategy to transform PMI by investing in scientific excellence and leveraging its capabilities and expertise,” said PMI CEO Jacek Olczak in a statement released on Monday.

“Our investment will accelerate the development and delivery of inhalation therapeutics to address many of today’s unmet medical needs. We look forward to working with the great people at Vectura as we embark on the next step in our transformation.

Earlier this month, an open letter signed by 35 charities and public health experts urged members of Vectura’s board to reject a takeover bid from Philip Morris International. Signatories to the letter, led by Asthma UK and the British Lung Foundation, said a deal “could significantly hamper Vectura’s research and product development capabilities.”

Separately, the British Thoracic Society, an anti-smoking charity, called for blocking the deal, describing the inappropriateness of the arrangement as an “intractable ethical conflict”.

Philip Morris International has repeatedly touted its “smoke-free” ambitions, although the vast majority of its income still comes from cigarettes. Last month, PMI’s Olczak reportedly said the company plans to stop selling cigarettes in the UK within 10 years.

Philip Morris International has issued similar statements in the past for very few things. Former company CEO Andre Calantzopoulos said in 2016 that he hoped the company would stop selling cigarettes altogether.

Campaign groups have condemned the tobacco giants, who have long denied the health risks of smoking, for standing up for the transition to a smoke-free world while continuing to sell and promote cigarettes in the world. world.

The World Health Organization describes the tobacco epidemic as “one of the greatest public health threats the world has ever faced”. The United Nations health agency says smoking, including second-hand, kills more than 8 million people a year.