Philip Morris (NYSE:PM) announced today that its offer to buy inhaled drug delivery technology developer Vectura has become unconditional.
Having received valid acceptances for or acquired 74.77% of Vectura shares, in excess of the 50% required under the acceptance condition, along with confirming that all other conditions to the offer have been satisfied or waived, the deal reached unconditional status.
Philip Morris — a multinational cigarette and tobacco product manufacturer — extended the offer to allow for the tender of further shares. The acquisition falls in line with the company’s efforts to generate more than 50% of its total net revenue from smoke-free products by 2025, with aims to generate at least $1 billion in net revenues by that point from its “Beyond Nicotine” products.
“We have reached an important milestone in our acquisition of Vectura and are pleased to have secured over 74% of the company’s shares, in excess of the 50% required to make our offer unconditional and PMI the majority shareholder,” Philip Morris CEO Jacek Olczak said in a release. “We are very excited about the critical role Vectura will play in our Beyond Nicotine strategy and look forward to working with Vectura’s scientists and providing them with the resources and expertise to grow their business to help us achieve our goal of generating at least $1 billion in net revenues from Beyond Nicotine products by 2025.”
Vectura develops inhaled drug delivery technology, with 13 key inhaled as well as 11 non-inhaled products marketed by global pharmaceutical partners. Additionally, the company has a diverse portfolio of partnerships for drugs in clinical development.
Philip Morris agreed to acquire Vectura for $1.2 billion in July. The news of the acquisition was met with criticism, including from the American Lung Association, which called the purchase “the latest reprehensible choice from a company that has profited from addicting users to its deadly products.”
Drama surrounding the deal continued when Carlyle attempted to acquire Vectura, only to have its offer bettered by Philip Morris, which upped its offer from about $2.07 per share to approximately $2.30 per share.
Philip Morris expects the impact of the acquisition on its full-year 2021 adjusted diluted EPS to be immaterial.