Cigarette Maker Philip Morris to Buy Vectura for $1.2B

Cigarette maker Philip Morris International (PMI) is acquiring the UK-based inhaled drug delivery solutions company Vectura for $1.2 billion as part of its ‘Beyond Nicotine’ strategy. Using its experience in inhalation and aerosolization, PMI is expanding into adjacent areas—including respiratory drug delivery and selfcare wellness. The company said its goal is to reach at least $1 billion in net revenues by 2025.

“The acquisition of Vectura, following the recently announced agreement to acquire Fertin Pharma, will position us to accelerate this journey by expanding our capabilities in innovative inhaled and oral product formulations in order to deliver long-term growth and returns,” said Jacek Olczak, CEO, PMI. “The market for inhaled therapeutics is large and growing rapidly, with significant potential for expansion into new application areas. PMI has the commitment to science and the financial resources to empower Vectura’s skilled team to execute on an ambitious long-term vision. Together, PMI and Vectura can lead this global category, bringing benefits to patients, to consumers, to public health, and to society-at-large.”

Vectura has thirteen key inhaled and eleven non inhaled products marketed by major global pharmaceutical partners, as well as a diverse portfolio of partnerships for drugs in clinical development. In 2020, Vectura generated net revenues of approximately $245 million.

With the acquisition of Vectura, PMI gains access to differentiated proprietary technology and pharmaceutical development expertise to deliver a broad range of complex inhaled therapies.

Together with the announced agreement to acquire Fertin Pharma, PMI now has a comprehensive portfolio of development capabilities in place—covering innovative inhaled and oral product formulations.

PMI believes that, together, the companies can create a fully-owned pipeline of products across a broad range of sectors in the prescription drug and over-the-counter (OTC) categories that will complement Vectura’s CDMO business and service to its existing client base.

In February of this year, PMI announced its goal to generate more than 50 percent of total net revenue from smoke-free products by 2025.

“We are thrilled by today’s announcement and the prospect that Vectura will be joining the PMI family as an autonomous business unit, forming the backbone of our ‘Beyond Nicotine’ inhaled therapeutic business,” said Jorge Insuasty, chief life sciences officer, PMI. “The proposed acquisition will significantly accelerate our development efforts. With the addition of Vectura’s expertise in the inhaled therapeutics space, PMI and Vectura will have the opportunity to undertake together the development and eventual commercialization of innovative inhalable drug/device combinations.”