The acquisition will help PMI achieve its goal of becoming a smoke-free company by 2025, and it will create growth opportunities that go beyond nicotine.
Philip Morris International Inc. announced on July 1 that it had entered into an agreement with Fertin Pharma A/S to acquire the company. Fertin Pharma is a leading developer of innovative pharmaceuticals and well-being products using intra-oral and oral delivery systems. The enterprise value of Fertin Pharma is DKK 5.1 Billion (approximately US $820 million).
“The acquisition will be a significant move forward on our journey to deliver a smoke-free tomorrow. It will enhance our smoke-free product portfolio, particularly in modern oral, as well as accelerate our progress beyond nicotine,” said Jacek Olczak.
“Both PMI & Fertin share the same commitment to science & consumer-centric innovations that will improve our lives, and I’m delighted we have reached an agreement.” Fertin’s diverse technology portfolio, evolving business mix and world-class experts will enrich our innovation capabilities and pipeline, allowing us to achieve our 2025 goal of generating at least USD 1 Billion in revenue from products other than nicotine and more than 50% from smoke-free products.
Fertin Pharma, a privately-held company, has more than 850 staff and operates in Denmark, Canada and India. It is a contract development and manufacturing organization that specializes in the research, design, and production of gums and pouches for the delivery active ingredients.
PMI will acquire Fertin Pharma and:
* Gain substantial knowledge for the development, formulation, and commercialization of existing and additional smoke-free platforms, including the ability to accelerate the presence of our company in the fast-growing oral category. This includes the ability to provide superior consumer experience by providing a wide range of smokeless products, such as nicotine lozenges and pouches.
* Leverage on Fertin’s oral delivery platforms to access a range of promising technologies–complementary to PMI’s inhalation expertise–for scientifically substantiated botanicals and other selfcare wellness products, including over-the-counter solutions and supplements that improve people’s lives in areas such as sleep, energy, calm, and focus.
* Build our R&D and manufacturing platform in nicotine and beyond nicotine products areas by adding Fertin’s strong capabilities, including 80 scientists.
* Accelerate progress in key sustainability priorities. This includes expanding the reach and accessibility of our smoke-free alternative products to adult smokers worldwide to accelerate the end to smoking and build a strong business beyond nicotine.
PMI announced earlier this year that it aims to generate more than 50% of its total net revenue from smoke-free product by 2025. PMI is committed to a smoke-free world and will continue to do so. However, it also wants to expand its portfolio to include products and solutions with scientific backing that will improve people’s quality of life and have a positive impact on the society.
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