Tobacco giant Philip Morris clinches shareholder backing for inhaler maker Vectura

Sep 16, 2021

Tobacco giant Philip Morris International (PMI) has clinched shareholder backing for its controversial £1.1bn takeover of asthma inhaler maker Vectura.

Investors representing just under 75% of the stock have now accepted the 165p-per-share offer from the company behind Marlboro cigarettes despite opposition from health campaigners.

PMI sees the deal as part of its “beyond nicotine” strategy with the long-term aim of developing smoke-free products and becoming a “broader healthcare and wellness” company.

The takeover, agreed last month by Vectura’s board, has seen the tobacco giant elbow aside a rival offer from private equity firm Carlyle.

But it has prompted concern from health professionals as well as politicians such as Labour’s shadow health secretary Jonathan Ashworth.

Mr Ashworth described the latest development as a “disgrace”, tweeting: “Ministers should have blocked this.”

Health groups such as Asthma UK and the British Lung Foundation have questioned whether a tobacco group should own a company that treats the respiratory illnesses that cigarettes cause.

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PMI chief executive Jacek Olczak fired back at critics last month, telling The Telegraph that they were “not interested in progress”, accusing them instead of “settling old scores” with the tobacco industry.

Mr Olczak said on Thursday that PMI would provide Vectura’s scientists with the resources and expertise to reach its goal of generating at least $1bn in net revenue from “beyond nicotine” products by 2025.

Meanwhile, Asthma UK and the British Lung Foundation said they had written a letter urging the government to look into any conflict of interest issues.

The letter was co-signed by 35 charities, public health experts and clinicians.

Sarah Woolnough, chief executive of Asthma UK and the British Lung Foundation, said: “There’s now a very real risk that Vectura’s deal with big tobacco will lead to the cigarette industry wielding undue influence on UK health policy.

“We call on the government to stand by its commitment to the World Health Organisation Framework Convention on Tobacco Control to prevent this happening.”

PMI has already received regulatory clearances for the deal and the latest step in the takeover process means its offer cannot now be withdrawn.

The company said it was extending its offer to 30 September to give Vectura shareholders time to accept its proposal.

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