Philip Morris sells inhaler maker business Vectura for nearly £300m
The research and development campus of Philip Morris International, in Neuchatel, western Switzerland. (FABRICE COFFRINI/AFP via Getty Images/File Photo)
Vectura Fertin Pharma, an affiliate of Philip Morris International (PMI), has on Tuesday announced the sale of its subsidiary Vectura Group to global electronics major Molex Asia Holdings for £298 million.
Vectura, based in Chippenham, UK, will be operated by Phillips Medisize, a Molex company and a leader in the design, engineering and manufacturing of pharmaceutical drug delivery, in vitro diagnostic and medtech devices.
PMI, which acquired Vectura in 2021 amid strident opposition from health groups, has also announced the establishment of master service agreements to develop Vectura Fertin Pharma’s inhaled therapeutics proprietary pipeline.
The tobacco giant created Vectura Fertin Pharma as an autonomous unit, bringing together Vectura and Danish company Fertin Pharma, which it acquired in 2020, as part of its plan to go ‘smoke-free’ and switch to healthcare and wellness products.
PMI, which fought off private equity firm Carlyle Group for the roughly 1-billion-pound buyout of Vectura, would receive an upfront cash consideration of £150 million, subject to customary purchase price adjustments, and potential deferred payments of up to £148 million.
Jacek Olczak, PMI chief executive, said Vectura has enabled them to develop a proprietary pipeline of inhaled therapeutics, adding that the business remains committed to driving innovation in this space “over the long-term”.
“With its experience in pharmaceutical drug delivery devices and its global manufacturing footprint, Phillips Medisize is best placed to lead Vectura into the future— while releasing it from the unreasonable burden of external constraints and criticism related to our ownership,” Olczak added.
During the takeover, PMI had faced resistance from public health experts who questioned whether a tobacco group should own a company that cures the respiratory illnesses which cigarettes cause.
PMI said the “unwarranted opposition” to its ownership has impacted Vectura’s scientific engagement and commercial CDMO (contract development and manufacturing organisation) relationships.
The remaining units of Vectura Fertin Pharma will continue to operate as a separate company under PMI’s ownership and will be given a new corporate identity. This business will focus on developing and commercialising oral consumer health and wellness offerings and inhaled prescription products for therapy areas that include pain management and cardiovascular emergencies.
Paul Chaffin, president of Phillips Medisize, said adding the Vectura team will enhance their ability to deliver a broader portfolio of inhalation combination drug devices and solutions to their pharmaceutical customers.
“With our global reach, manufacturing scale, and engineering expertise, Phillips Medisize is uniquely positioned to help Vectura in developing innovative new products for their customers, ultimately benefiting people who suffer with chronic and acute diseases such as asthma and COPD.”
Vectura brings to Phillips Medisize its unique inhalation expertise that includes formulation and device development for dry powder inhalers (DPI), pressurized metered dose inhalers (pMDI), nasal and nebuliser products for small molecules, biologics, complex combinations and generic products. The company also offers pharmaceutical analysis, process development, technical transfer, clinical trial supplies and regulatory services.
“The acquisition of Vectura is the latest step in building an industry-leading capability in medical. It also demonstrates Molex’s commitment to acquiring opportunities to better serve market needs across our portfolio,” said Joe Nelligan, chief executive of Molex, which acquired Phillips Medisize in 2016 to build a scale healthcare business.
“We are excited by the significant growth potential that comes with a wider range of formulation, device design, combination product development and manufacturing services to support the increasing need for inhalation therapies. We look forward to welcoming the Vectura team, who brings a celebrated reputation of inhalation expertise and experience.”
The acquisition is expected to close by the end of 2024, subject to regulatory approvals and other customary closing conditions.
Some Brits believe that shoplifting can be acceptable, states a recent report, despite the country experiencing an epidemic of store thefts.
According to a recent YouGov poll of 2,150 adults, 40 per cent of the public agreed that shoplifting food was sometimes acceptable if a person could not afford the goods. More than half of those asked (51 per cent) said it was never acceptable.
About 20 per cent believed it was sometimes acceptable to steal clothes from a store if they could not afford them, with 72 per cent saying it should never be accepted.
This was despite the fact that nearly three-quarters of the public (73 per cent) believed shoplifting was a serious or fairly serious crime, while only a quarter (25 per cent) felt it was not very serious or not serious at all.
There was a distinct divide politically between acceptance of the crime. Only 20 per cent of Tory voters believed that food theft was acceptable if a person could not afford it, compared with 50 per cent of Labour voters and 44 per cent of Liberal Democrat supporters.
The staggering figures come as stores across the country are reporting two thefts a minute amid a growing shoplifting epidemic.
Industry body the British Retail Consortium's (BRC) annual crime survey found more than 20 million incidents of theft were committed in the year to 31 August 2024, which equates to 55,000 a day, costing retailers a total £2.2 billion.
There were 16 million incidents in the previous year.
The BRC said many more incidents in the latest period were linked to organised crime, with gangs systematically targeting stores across the country.
Commenting on the BRC's findings, Helen Dickinson said, "Retail crime is spiralling out of control. People in retail have been spat on, racially abused, and threatened with machetes.
"Every day this continues, criminals are getting bolder and more aggressive."
The BRC said the amount spent on crime prevention also hit a record high, with retailers investing £1.8 billion on measures such as CCTV, security personnel, anti-theft devices and body-worn cameras, up from £1.2 billion in 2022-23.
Shopper footfall received a welcome boost as many consumers hit the January sales in their local community, shows recent data, bringing a welcome news for high streets following a particularly difficult Golden Quarter to end 2024.
According to BRC-Sensormatic data released today (7), total UK footfall increased by 6.6 per cent in January (YoY), up from -2.2 per cent in December.
High Street footfall increased by 4.5 per cent in January (YoY), up from -2.7 per cent in December while retail park footfall increased by 7.9 per cent in January (YoY).
Shopping Centre footfall increased by 7.4 per cent in January (YoY), up from -3.3 per cent in December.
Footfall increased year-on-year in all four UK nations, with Wales improving by 8.5 per cent, England by 7.4 per cent, Northern Ireland by 3.5 per cent, while Scotland improved by 1.0 per cent.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Shopper footfall received a welcome boost in January following a disappointing festive period.
"Store visits increased substantially in the first week of the month as many consumers hit the January sales in their local community, with shopping centres faring particularly well.
"Despite snowy weather and Storm Eowyn causing disruption in some areas, footfall was still positive across major UK cities over the whole month.
"Improved shopper traffic is welcome news for high streets following a particularly difficult ‘Golden Quarter’ to end 2024, and low consumer sentiment to start the year.
"Retailers want to invest more in stores and staff to enhance the shopping experience for customers and help to grow the economy, but the swathe of additional costs from April will limit investment and lead to job losses and higher prices at the tills. To drive growth in communities across the country, the government must ensure costs are limited in other areas.
"This can be done by delaying packaging taxes and ensuring that business rates reform leaves no shop paying more than they currently do."
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, "After a dreary December, retailers will welcome January’s footfall jump.
"The uptick was boosted by a very strong Week 1, helped in part by New Year’s Day falling on a Wednesday, which may have prompted ambient store traffic as consumers bolted on additional days of leave, as well as retailers extending post-Christmas discounting well into January.
"Not even the significant disruption from Storm Eowyn was enough to dampen overall footfall performance. While welcome, after months of erratic and constrained footfall, the jury’s out as to whether January’s store performance signals the start of a sustained High Street revival or if it will be a flash in the pan come February.
"And, even if shopper traffic recovery has finally turned a corner, the challenge for retailers will be solving the next conundrum; how they balance enhanced footfall – which requires optimised store staffing to convert into sales – and the significant rises to labour costs borne out of the Budget on the one hand, with consumer appetite for discounts - a long-term margin-eroder - on the other, which will not be an easy circle to square."
Another report released on Thursday (6) stated that high streets need to optimise for midweek office workers as Brits return to office.
This marks the first annual increase in January footfall since 2016 (+1.2 per cent), outside of the pandemic period, suggesting that a stronger return to office work is driving retail visits as businesses push employees back to in-person work.
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New Ann Forshaw’s Milk Shed launches at SPAR Derwent in Keswick
SPAR Derwent in Keswick has become the latest store to introduce an Ann Forshaw’s Milk Shed, bringing fresh whole milk and delicious flavoured milkshakes to the local community.
The new Milk Shed follows successful launches at Ann Forshaw’s Alston Dairy and SPAR stores in Burnley and Milnthorpe.
The vending machine, open 24-hours-a-day, dispenses gently pasteurised, non-homogenised milk, available in 500ml (£1) and one-litre (£1.60) servings, with milk delivered daily from Alston Dairy at Longridge, near Preston, the home of the Ann Forshaw’s brand.
Milkshakes, priced at £1.80 for 500ml and £2.80 for one litre, come in Chocolate, Strawberry, Banana, Vanilla, and Salted Caramel flavours. A sixth Limited Edition flavour will always be on rotation to complement the core range – starting with Red Velvet for Valentine’s Day, and special edition glass bottles with love hearts on them will be available to purchase from the machine.
To celebrate February half-term, a retro throwback range featuring Cream Soda, Parma Violet, Cola, Lime, Candy Floss, and Mixed Berry will also be available.
Ann Forshaw’s Milk Shed at SPAR Derwent
All the milkshakes use natural flavourings and colourings where possible and do not contain the ‘Southampton Six’ food colours which have been found to have an adverse effect on activity and attention in children.
Eco-conscious customers can opt for Milk Shed branded reusable glass bottles for plastic-free refills. Plus, recyclable cups and paper straws are available for a greener experience.
“Wherever we launch an Ann Forshaw’s Milk Shed, our SPAR customers love the concept, and we have high hopes that our latest launch will be lapped up by the community in Keswick,” Fiona Drummond, Company Stores Director at James Hall & Co. Ltd, said.
“There is nothing not to like about the product. The milk is competitively priced, and the milkshakes are a delicious treat and suitable for all ages with the conscious decision to utilise natural flavourings.”
There is more to come for SPAR customers in Cumbria this Spring with rollouts of Milk Sheds taking place soon at SPAR Bowness, SPAR Maryport, and SPAR Whitehaven.
Ann Forshaw’s and its associated Alston Dairy was acquired by the James Hall Group of Companies in December 2022.
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SPAR Cavehill raised funds for Community Fire & Rescue Service as part of former owner’s 70th birthday celebrations
Belfast’s SPAR Cavehill closed out 2024 with a heartwarming community celebration, marking the 70th birthday of former store owner Norman Porter while raising £800 for two local charities.
The event, organised by the store’s current owners, Frank Quigley and Norman’s daughter, Jenny Reilly, brought together staff, customers, and local residents to celebrate the milestone birthday and support SPAR’s charity partner, Marie Curie, as well as the Community Fire & Rescue Service.
Norman, who owned and operated SPAR Cavehill for over 40 years, remains an integral part of the store’s daily operations even after passing ownership to Jenny and longtime store manager Frank in 2015. His longstanding presence in the community made the occasion particularly special.
“It was important to me and the whole team to celebrate dad’s 70th birthday,” Reilly said. “Having owned and run SPAR Cavehill for over 40 years, he is a well-known and respected figure in the local community, so our shoppers were delighted to join in the celebrations and show their appreciation.”
The in-store birthday party featured cake, coffee, and treats in exchange for donations, while customers also had the opportunity to win prizes with the SPAR Spinner. Special guest Sammy SPAR made an appearance, adding to the festive atmosphere. Volunteers from the Community Fire & Rescue Service attended to thank shoppers for their support and raise awareness of their vital services. Additionally, the Dale Farm van stopped by to distribute ice lollies in return for contributions to Marie Curie.
“Being a hub in the community, it’s always been important to us to show our support, so it was a no brainer to mark my dad’s birthday by fundraising for two local charities,” Reilly added.
“The celebrations were a great success, and we were thrilled to see so many of our community coming together to show their support, helping us raise a total of £800 for Marie Curie and Community Fire & Rescue Service. I want to extend a huge thank you to our shoppers and our team at SPAR Cavehill.”
Expressing his gratitude, Norman Porter said: “Thank you to the team at SPAR Cavehill, our shoppers and whole community for celebrating my 70th birthday with me. It has been a privilege to serve the community for so many years and we have appreciated their ongoing support for the store. A special thank you goes to my daughter Jenny for making it a birthday to remember.”
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IQOS heat-not-burn device and a Marlboro cigarette pack
Philip Morris International (PMI) has forecast an increase of up to 12.5 per cent in adjusted diluted EPS for 2025, following a strong financial performance in 2024, driven by the continued expansion of its smoke-free product portfolio.
The company delivered a reported diluted EPS of $4.52 (£3.63), or $6.01 before a Canada non-cash impairment of $1.49, compared to $5.02 in 2023. Adjusted diluted EPS reached $6.57, representing growth of 9.3 per cent, and 15.6 per cent on a currency-neutral basis.
“2024 was a remarkable year for PMI,” said Jacek Olczak, PMI chief executive. “We delivered very strong full-year results driven by the continued growth of IQOS and ZYN in addition to a robust combustibles performance.”
Olczak highlighted the recent US FDA authorisation of all currently marketed ZYN nicotine pouches, calling it “further evidence of the compelling science supporting smoke-free products.” He also urged other countries to follow the US lead and embrace effective tobacco harm reduction measures, particularly where smoke-free alternatives are banned.
Quarterly shipments of heat-not-burn (HTU) and oral smoke-free products exceeded 40 billion units for the first time. Full-year net revenues for the Smoke-Free Business increased by 14.2 per cent (16.7 per cent organically), with gross profit up 18.7 per cent (22.7 per cent organically). Smoke-free products now account for 40 per cent of PMI's total net revenues and approximately 42 per cent of gross profit. The company estimates 38.6 million adult users of its smoke-free products.
IQOS continues to be a strong performer, strengthening its position as the second-largest nicotine ‘brand’ in markets where it is present. HTU adjusted in-market sales (IMS) volume was up an estimated 12.6 per cent for the full year. In Japan, ILUMA i fuelled IQOS growth, with adjusted IMS up around 13 per cent for both the full year and the fourth quarter. In Europe, IQOS HTU adjusted market share increased to 10.6 per cent in the fourth quarter. VEEV is also gaining traction as a top 3 pod brand in 13 European markets.
In the oral smoke-free products business, full-year shipment volume increased by nearly 28 per cent in cans (nearly 25 per cent in pouches). Fourth-quarter shipment volume increased by 25 per cent in cans (22 per cent in pouches), driven by ZYN nicotine pouch growth in the US.
Full-year net revenues grew by 4.0 per cent (5.9 per cent organically) in the combustibles business, primarily due to strong pricing.
For 2025 fiscal, PMI forecasts reported diluted EPS to be in the range of $6.55 to $6.68. Excluding adjustments, this reflects a 7.2 per cent to 9.1 per cent increase compared to 2024’s adjusted EPS of $6.57, or 10.5 per cent to 12.5 per cent growth on a currency-neutral basis.
The company anticipates total cigarette and smoke-free product shipment volume growth of up to 2 per cent, driven by smoke-free products. Net revenue growth is projected at around 6 per cent to 8 per cent on an organic basis.
“With strong momentum across all categories, we are confident that our smoke-free transformation and unparalleled brand portfolio will continue to deliver excellent performance and create value for our shareholders in 2025 and for the long term,” Olczak said.
The forecast assumes an estimated 1 per cent decline in international industry volume for cigarettes and HTUs (excluding China and the US), and an acceleration in US nicotine pouch shipment volume. It also factors in capital expenditures of approximately $1.5 billion, including further ZYN capacity investments in the US.