Philip Morris International to Acquire Vectura Group

Philip Morris International Inc. (PMI) has announced a tender offer to acquire the inhaled therapeutics company Vectura Group plc. The proposed acquisition is part of PMI's long-term strategy to transform its business and leverage its capabilities to develop inhaled therapeutics.

Vectura is a provider of innovative inhaled drug delivery solutions, with a diverse portfolio of partnerships for drugs in clinical development. The company generated net revenues of GBP 191 million (approximately USD 245 million) in 2020. PMI's proposed acquisition of Vectura is expected to provide significant growth opportunities for the company, with the potential to expand into new application areas beyond the current market offering.

Key Takeaways:

PMI's acquisition of Vectura is part of its long-term strategy to transform its business and leverage its capabilities to develop inhaled therapeutics.
Vectura is a provider of innovative inhaled drug delivery solutions, with a diverse portfolio of partnerships for drugs in clinical development.
The company generated net revenues of GBP 191 million (approximately USD 245 million) in 2020.
PMI's proposed acquisition of Vectura is expected to provide significant growth opportunities for the company.
The transaction value represents a multiple of around 15 times Vectura's 2020 EBITDA.
PMI will fund the transaction with existing cash and expects it to close in the second half of 2021, subject to receipt of acceptances of the offer and approval by the appropriate regulatory authorities.
PMI expects the impact of the acquisition on its full-year 2021 adjusted diluted EPS to be immaterial.
PMI's Beyond Nicotine strategy is built on two key growth areas: inhaled therapeutics and developing and commercializing scientifically substantiated consumer health products and solutions.
PMI has developed expertise in aerosolization and inhalation, forming the foundation of a science-based company that will continue to apply its skills to life sciences.

Statistics:

Vectura generated net revenues of GBP 191 million (approximately USD 245 million) in 2020.
The transaction value represents a multiple of around 15 times Vectura's 2020 EBITDA.
PMI expects to fund the transaction with existing cash.
The acquisition is expected to close in the second half of 2021, subject to receipt of acceptances of the offer and approval by the appropriate regulatory authorities.

Sources:

Philip Morris International press release, August 16, 2021 (Exhibit 99.1 to the Current Report on Form 8-K)
Vectura Group plc website, "Welcome to Vectura"
PMI's 2020 Integrated Report, "Transformation to a Smoke-Free Future"
UK's life sciences strategy, "Life Sciences Industrial Strategy"