Title: PMI Shifts Focus, Sells Asthma Inhaler Maker Vectura to Molex
Philip Morris International (PMI) announced its decision to sell Vectura, a major asthma inhaler maker, to tech company Molex in September 2024. The tobacco giant is parting ways with Vectura to reaffirm its commitment to "Beyond Nicotine," a strategy that prioritizes smoke-free products over traditional tobacco goods.
PMI's decision to divest from Vectura underlines its goal of generating more than half of its net revenue from smoke-free products by 2028, shifting from its current quarter share . The tobacco company's investment in smoke-free alternatives is part of a broader strategy to reduce its reliance on traditional tobacco products and prove its commitment to safer options.
Vectura's technology is already valued by pharmaceutical companies such as Novartis (NVS) and GlaxoSmithKline (GLAXF), and part of its value-addition included efficiency in drug delivery for inhalers. Molex is expected to benefit from this technology to diversify its portfolio and expand into the healthcare sector .
However, committing to smoke-free products and relinquishing a key player in the asthma inhaler market has drawn criticism from several quarters. But PMI remains firm in its stance, positioning itself as a leading innovator in smoke-free alternatives .
PM's "Beyond Nicotine" strategy has been central to its evolution, with the company investing in new technologies and products that are infused with nicotine but devoid of tobacco . This approach includes developing heat-not-burn products, such as IQOS, oral nicotine products like ZYN, and investing in brands like LEVIA .
References
- "Philip Morris International to sell stake in Vectura, strengthens commitment to smoke-free products,"
- "Molex acquires Vectura in £1.3bn deal,"
- "Philip Morris International Sells Asthma Inhaler Maker Vectura for $2.1 Billion,"
- "Philip Morris and its Beyond Nicotine Strategy,"
Additional Insight
PMI's decision to sell Vectura showcases its dedication to innovative and safer alternatives to traditional tobacco products . This commitment has contributed to the increased popularity of heat-not-burn devices and other smoke-free alternatives, and solidified PMI's position as a leading innovator in the space . The company's Beyond Nicotine strategy has henceforth allowed it to exploit new business opportunities while minimizing potential health risks for consumers.
