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Philip Morris to sell Vectura for $198 million after health shift criticism

Published 09/17/2024, 09:24 AM
Updated 09/17/2024, 11:40 AM
© Reuters. FILE PHOTO: Packages of Marlboro cigarettes produced by Philip Morris International are seen at the grocery store in Warsaw, Poland May 29, 2024. REUTERS/Kacper Pempel/File Photo
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(Reuters) -Philip Morris International's Vectura Fertin Pharma said on Tuesday it would sell its asthma inhaler maker Vectura Group to Molex Asia Holdings for 150 million pounds ($198 million).

Marlboro maker PMI bought Vectura in September 2021 as part of a plan to transform itself into a "broader healthcare and wellness" group, a shift it says has been hampered by critics.

PMI acquired Vectura, part of its health and wellness unit, in a deal worth 1.1 billion pounds. It has since taken a $680 million impairment against the unit and abandoned plans to raise $1 billion in net revenues from the division by 2025.

Jacek Olczak, PMI's CEO, said that while it remained committed to driving innovation in inhaled medications, Phillips Medisize, operated by Molex, was better placed to lead Vectura.

It would also release Vectura from "the unreasonable burden of external constraints and criticism related to our ownership," he said.

© Reuters. FILE PHOTO: Packages of Marlboro cigarettes produced by Philip Morris International are seen at the grocery store in Warsaw, Poland May 29, 2024. REUTERS/Kacper Pempel/File Photo

PMI, whose shares were down 1.4% at 1233 GMT, said the deal also included potential deferred payments of up to 148 million pounds.

($1 = 0.7572 pounds)

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