Eleafworld.FR According to foreign reports, international tobacco giant Philip Morris International (PMI) will acquire Vectura Group, a provider of inhalation drug delivery solutions, for 852 million pounds ($1.2 billion).
“PMI’s Beyond Nicotine strategy, announced in February, articulates a clear goal to leverage our expertise in inhalation and vape into adjacent areas, including respiratory drug delivery and self-care, with the goal of reaching at least 20 percent in net revenue by 2025. $1 billion,” PMI Chief Executive Jacek Olczak said in a statement.
“Following the recently announced agreement to acquire Fertin Pharma, the acquisition of Vectura will allow us to accelerate this journey by expanding our capabilities in innovative inhaled and oral product formulations for long-term growth and returns.”
“The market for inhalation therapy is large and rapidly growing, with great potential to expand into new applications. PMI is committed to scientific and 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 , for the benefit of patients, consumers, e-cig promotion and society as a whole.”
Vectura is a provider of innovative inhalation drug delivery solutions that enable partners to bring their medicines to patients. The company has 13 major inhaled and 11 non-inhaled products marketed by major global pharmaceutical partners, as well as a diverse partner portfolio of drugs in clinical development. In 2020, Vectura’s net income was £191 million. The deal is valued at approximately 14 times Vectura’s 2020 EBITDA.
In a press release, PMI laid out the benefits it expects from the Vectura acquisition:
Gain differentiated know-how and drug development expertise to deliver a broad range of complex inhalation therapies.
Add highly complementary human capital, technology, high-quality infrastructure and deep expertise in inhalable formulation and device design development and analysis, Eleaf iStick T80 with GTL portfolios, and drug administration processes and systems. The merger will leverage PMI’s existing capabilities in life sciences, product innovation and clinical expertise.
An experienced management team – supported by more than 200 formulation, device, inhalation, regulatory and clinical manufacturing scientists – will help PMI accelerate the growth of its healthcare business.
Together with the announced agreement to acquire Fertin Pharma, the acquisition provides PMI with a comprehensive portfolio of development capabilities – spanning innovative inhaled and oral product formulations – to achieve its “Beyond Nicotine” ambition, with its key sustainability focus consistent.
PMI believes the two companies can work together to create a pipeline of wholly-owned products across a broad spectrum of prescription and over-the-counter drug categories that will complement Vectura’s CDMO business and the services it provides to its existing customer base.
PMI further believes that its beyond-nicotine vaping technology and development pipeline will provide Vectura with additional predictability, stability and safety going forward.
In February, PMI announced its goal to have smoke-free products account for more than 50% of total net revenue by 2025. PMI also announced its goal to generate at least $1 billion in net revenue by 2025 from beyond-nicotine products.
Chief Life Sciences Officer Jorge Insuasty said: “We are excited about today’s announcement and the prospect of Vectura joining the PMI family as an autonomous business unit that will form the backbone of our ‘Beyond Nicotine’ inhalation therapy business. The proposed acquisition will significantly accelerate our development efforts. With the addition of Vectura’s expertise in inhalation therapy, PMI and Vectura will have the opportunity to work together on the development and eventual commercialization of an innovative inhalable Eleaf Battery combination.
PMI will fund the transaction with existing cash and is expected to close in the second half of 2021, subject to a shareholder vote and appropriate regulatory approvals. PMI does not expect the acquisition to have a modest impact on its full-year 2021 adjusted diluted EPS.
The firm’s bid outpaced private equity giant The Carlyle Group, which agreed in May to buy Vectura for £958 million. But Vectura management has now stopped supporting Carlyle’s takeover bid.
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