Philip Morris International, a major cigarette and tobacco company, has recently announced the sale of Vectura, a British pharmaceutical firm specializing in the production of asthma inhalers. The decision to sell off the inhaler business comes after three years of controversy and opposition from health groups following Philip Morris’ acquisition of Vectura.
Controversial Acquisition and Sale
Three years ago, Philip Morris International raised eyebrows within the healthcare community when it acquired Vectura, a prominent British pharmaceutical company known for its expertise in manufacturing asthma inhalers. The move was met with skepticism and opposition from health groups who questioned the motives behind a tobacco company venturing into the healthcare sector. Now, Philip Morris has decided to part ways with Vectura, citing “unwarranted opposition to PMI’s transformation” as the reason for the sale.
The sale of Vectura is being finalized with Molex Asia Holdings Ltd., who plans to integrate the inhaler business into its Phillips Medisize unit, focusing on the production of drugs and medical devices. The deal includes an upfront cash payment of 150 million pounds sterling, with potential deferred payments of a similar amount. If regulatory approvals are obtained, the sale is expected to be completed by the end of 2024.
Concerns and Criticisms
Critics have expressed concerns over Philip Morris’ ownership of Vectura, especially considering the company’s history of manufacturing tobacco products linked to serious health issues. The Royal Pharmaceutical Society in the U.K. reported that since Philip Morris acquired Vectura, the National Health Service in England has spent over £433 million on inhalers associated with the tobacco industry. Health groups have condemned the acquisition, highlighting the conflict of interest in a tobacco company profiting from products designed to treat smoking-related respiratory illnesses.
Henry Gregg, the director of external affairs at Asthma + Lung UK, emphasized the ethical implications of allowing the tobacco industry to profit from diseases it contributes to. He stated, “Addictive tobacco products cause and exacerbate lung diseases, and smoking-related illnesses cost the NHS billions every year. The tobacco industry should not be allowed to profit from the illnesses it causes.”
Facing Scrutiny and Opposition
Despite Philip Morris’ efforts to rebrand itself as a health-focused company, advocacy groups like Corporate Accountability remain vigilant in holding the company accountable for its past actions. Daniel Dorado, the tobacco campaign director at Corporate Accountability, vowed that they will not be swayed by Philip Morris’ attempts to improve its public image. The sale of Vectura is seen as a strategic move by Philip Morris to distance itself from the controversy surrounding its ownership of a pharmaceutical company.
As part of the sale agreement, Philip Morris will retain certain units of Vectura under its Vectura Fertin Pharma subsidiary, which will undergo a rebranding process. The new entity will concentrate on oral consumer health and wellness offerings, as well as inhaled prescription products for pain management and cardiovascular emergencies. Molex expects the acquisition to be finalized by the end of 2024, pending regulatory approvals.
In conclusion, the sale of Vectura by Philip Morris International marks a significant development in the ongoing debate over the involvement of tobacco companies in the healthcare industry. Despite the sale, concerns persist regarding the ethical implications of allowing a tobacco giant to profit from products designed to treat smoking-related illnesses. The healthcare community and advocacy groups will continue to monitor the situation closely to ensure transparency and accountability in the pharmaceutical sector.