3 months ago
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The tobacco giant that makes Marlboro cigarettes has sold a UK inhaler company for a knock-down price due to what it calls an "unwarranted" backlash.
Philip Morris International (PMI) has offloaded Vectura Group for £150m ($198m) just three years after buying it in a deal worth more than £1bn.
PMI's decision to buy Vectura, which makes inhalers to treat lung conditions such as asthma, was criticised as being hypocritical.
However, PMI defended the move as part of its strategy to away from cigarettes and towards "smoke free" businesses like vaping.
PMI announced the sale to electronics firm Molex Asia Holdings on Wednesday, saying it releases Vectura "from the unreasonable burden of external constraints and criticism related to our ownership".
The deal, which still needs regulatory approval, will see Molex pay an up-front fee of £150m and "potential deferred payments of up to £148m" if certain requirements are met.
PMI's boss Jacek Olczak also said the company remains "committed to driving innovation in this space over the long-term", suggesting it has not moved on entirely from the inhaler sector.
The Vectura purchase was part of PMI's push towards a "smoke free world". PMI has said it wants two thirds of its sales to come from non-cigarette sales by 2030.
However, health charities have voiced scepticism about the sincerity of PMI's pledge considering the billions of pounds it still makes from cigarette sales.
Its latest financial results for the three months to the end of June showed that more than 60% of its $9.47bn (£7.19bn) sales came from cigarettes.
Over that period, PMI accounted for 23.6% of the global cigarette market by revenue.
The news comes as the new Labour government has said it is considering an outdoor smoking ban at pubs.
