Philip Morris International Announces Completion of Acquisition of Fertin Pharma; Advances PMI’s goal of becoming a majority smoke-free company by 2025 and creates opportunities for growth beyond nicotine
NEW YORK, September 15, 2021– (BUSINESS WIRE) – Regulatory news:
Philip Morris International Inc. (PMI) (NYSE: PM) today announced the completion of its acquisition of Fertin Pharma A / S (“Fertin Pharma”), a leading developer and manufacturer of pharmaceuticals and health care products. be innovative based on oral drugs and intraoral delivery systems, with an enterprise value of DKK 5.1 billion (approx. USD 820 million1).
“As we build our smokeless product pipeline with the goal of phasing out cigarettes and expanding our long-term business into areas other than tobacco and nicotine, such as personal wellness, we welcome the contributions of Fertin Pharma, its management and its employees will make to PMI, ” said Jacek Olczak, CEO. “PMI’s future centers on health, science, technology and sustainable business practices to deliver innovative products and solutions that aim to improve people’s lives and create a net positive impact on society. Fertin’s world-class expertise aligns perfectly with this vision and will be an important part of our future. “
“We are delighted to join PMI and start this new chapter for Fertin Pharma”, said Peter Halling, CEO of the company. “By participating in PMI’s transformation, Fertin will be uniquely positioned to continue to innovate, grow and serve our clients as a premier CDMO, realizing our vision to empower people to live healthier lives. Our shared commitment to science and consumer-centric innovations form a solid foundation for a very successful future together. ”
The addition of Fertin Pharma’s promising technologies, strong capabilities and skilled workforce, including approximately 200 R&D professionals, will provide PMI with speed and scalability in differentiated and innovative oral delivery products to support its business. 2025 objectives to generate more than 50% of its total net income. smoke-free products and at least $ 1 billion in net revenues from non-nicotine products. With the extensive know-how of Fertin Pharma, PMI plans to accelerate its presence in the modern fast growing oral category, through a wide range of smoke-free products such as nicotine sachets that can help more adults who would otherwise continue to smoke to switch to better alternatives and quit smoking. In addition, Fertin Pharma’s oral delivery platforms, which complement PMI’s inhalation expertise, can be used for the development of scientifically substantiated self-care wellness products, including including over the counter solutions and supplements for better living in areas such as sleep, energy, calmness and focus.
Fertin Pharma has over 850 employees and operates in Denmark, Canada and India. It is a leading contract development and manufacturing organization (CDMO), specializing in the research, development and production of gums, sachets, liquefiable tablets and other solid oral systems for the administration of active ingredients, including nicotine, where it is one of the main producers. nicotine replacement therapy (NRT) solutions. In 2020, Fertin Pharma generated net sales of DKK 1.1 billion (approximately USD 160 million2).
Fertin Pharma will operate as a 100% subsidiary of PMI. PMI expects the impact of the acquisition on its adjusted diluted EPS for fiscal 2021 to be negligible.
1 Based on the exchange rate in effect at the closing of the transaction
2 Based on the 2020 average exchange rate
Forward-looking statements and cautions
Statements contained in this press release which are not strictly historical, including statements regarding the acquisition of Fertin Pharma, future financial and operating results, benefits and synergies of the transaction, future opportunities for the combined businesses and any other statement regarding events or developments that we believe or anticipate will or may occur in the future, may be “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a certain number of risks and uncertainties.
There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by these forward-looking statements, and you should not place undue reliance on such forward-looking statements. These factors include risks and uncertainties related to, among others: (1) the possibility that the integration of Fertin Pharma and its operations with those of PMI will be more difficult and / or take longer than expected, and not accelerate the desired entry of PMI into other smokeless platforms and beyond nicotine as quickly as expected; (2) the possibility that the integration of Fertin Pharma into PMI will be more costly than expected and may have unforeseen negative results regarding Fertin Pharma or PMI’s existing activities; (3) the effect of the acquisition on the respective business relationships, results of operations and general business of PMI, Fertin Pharma or the combined company; (4) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the acquisition; (5) the negative effects of the completion of the transaction on the market price of PMI’s ordinary shares; (6) PMI’s ability to retain and hire key Fertin Pharma personnel; and (7) other factors that may affect the future results of the combined company described in the section entitled “Risk Factors” in PMI’s annual report on Form 10-K for the year ended December 31, 2020 , PMI’s Form 10-Q for the quarter ended June 30, 2021, and other PMI filings with the Securities and Exchange Commission. Forward-looking statements made herein speak only as of the date hereof and PMI assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events and developments. or otherwise, unless required by law.
Philip Morris International: Providing a Smoke-Free Future
Philip Morris International (PMI) is leading a transformation of the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smokeless products for the benefit of adults who would otherwise continue to smoke, society, of the company, its shareholders and other stakeholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smokeless products, related electronic devices and accessories, and other nicotine-containing products in markets outside the United States. In addition, PMI ships versions of its IQOS Platform 1 device and consumables to Altria Group, Inc. for sale under license in the United States, where these products have received marketing authorizations from the United States Food and Drug Administration (FDA) as part of the pre-market tobacco product application process (PMTA); the FDA has also cleared a version of IQOS and its consumables as a modified risk tobacco product (MRTP), believing that an exposure modification order for these products is appropriate to promote public health. PMI is building a future on a new category of smoke-free products which, without being risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific rationale, PMI aims to ensure that its smoke-free products meet the preferences of adult consumers and meet stringent regulatory requirements. PMI’s smoke-free product portfolio includes vapor-based products that do not burn and contain nicotine. As of June 30, 2021, PMI’s smoke-free products are available for sale in 67 markets in key cities or nationwide, and PMI estimates that approximately 14.7 million adults worldwide have already switched to IQOS and quit smoking. For more information, please visit www.pmi.com and www.pmiscience.com.
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Philip Morris International
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