How much did Philip Morris International pay for Vectura?

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Philip Morris International Paid £1 Billion for Vectura

Philip Morris International (PMI) finalised the acquisition of British breathing inhaler manufacturer Vectura for £1 billion (RM5.8 billion). This strategic move is part of PMI's comprehensive strategy to diversify its business beyond tobacco and nicotine into the broader healthcare sector.
Acquisition Value and Strategic Rationale

The Marlboro-maker formally agreed to the £1 billion payment, which equates to RM5.8 billion, as part of a larger initiative to expand its presence in healthcare. PMI's chief executive, Jacek Olczak, highlighted the acquisition as a significant step in the company's "Beyond Nicotine" strategy. Vectura's expertise in respiratory drug delivery has been identified as a crucial component for PMI's ambition to generate at least US$1 billion in annual net revenues from nicotine-free products by 2025.
Investor and Regulatory Approvals Secured

Following the initial agreement, PMI announced it had successfully secured the necessary support from its investors and obtained all required regulatory approvals to complete the takeover. This signifies the culmination of the process that began with the offer to purchase Vectura.
Expansion into Healthcare and Criticism

The acquisition of Vectura is central to PMI's stated goal of transforming into a broader healthcare company, moving away from its traditional tobacco and nicotine-based products. Since 2008, the company has reportedly invested over US$8 billion in developing smoke-free alternatives. However, the takeover faced considerable opposition from various health campaigners and medical groups, who raised ethical and practical concerns about a tobacco company acquiring a respiratory drug delivery firm. Over 20 organisations, including anti-smoking charities, voiced their objections, with some accusing Vectura of prioritising short-term financial gain over its long-term viability and the well-being of lung disease patients.

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How much did Philip Morris International pay for Vectura?

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