Philip Morris International Announces Closing of Fertin Pharma Acquisition; Advances PMI’s Goal of Becoming a Majority Smoke-Free Business by 2025 and Creates Growth Opportunities Beyond Nicotine
September 15 2021 - 4:17PM
Business Wire
Regulatory News:
Philip Morris International Inc. (PMI) (NYSE: PM) today
announced the closing of its acquisition of Fertin Pharma A/S
(“Fertin Pharma”), a leading developer and manufacturer of
innovative pharmaceutical and well-being products based on oral and
intra-oral delivery systems, for an enterprise value of DKK 5.1
billion (approximately USD 820 million1).
“As we build our pipeline of smoke-free products with the goal
of phasing out cigarettes and expand our business for the long-term
toward areas outside of tobacco and nicotine, such as selfcare
wellness, we welcome the contributions that Fertin Pharma, its
management and its employees will bring to PMI,” said Jacek Olczak,
Chief Executive Officer. “PMI’s future is centered 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. The world-class
expertise of Fertin aligns perfectly with this vision and will be
an important part of our future.”
“We are excited to join PMI and start this new chapter for
Fertin Pharma,” said Peter Halling, the company’s Chief Executive
Officer. “By becoming part of PMI’s transformation, Fertin will be
uniquely positioned to continue to innovate, grow, and serve our
customers as a leading CDMO—delivering on our vision to enable
people to live healthier lives. Our shared commitment to science
and consumer-centric innovations forms a strong basis for a very
successful future together.”
The addition of Fertin Pharma’s promising technologies, strong
capabilities and skilled workforce—including around 200 R&D
professionals—will provide PMI with speed and scale in
differentiated and innovative oral delivery products to support its
2025 goals of generating more than 50% of its total net revenues
from smoke-free products and at least USD 1 billion in net revenues
from products beyond nicotine. With Fertin Pharma’s substantial
know-how, PMI plans to accelerate its presence in the fast-growing
modern oral category, through a broad range of smoke-free products
such as nicotine pouches that can help more adults who would
otherwise continue to smoke switch to better alternatives and stop
smoking. In addition, Fertin Pharma’s oral delivery platforms—which
are complementary to PMI’s inhalation expertise—can be leveraged
for the development of scientifically substantiated selfcare
wellness products, including over-the-counter solutions and
supplements for better living in areas such as sleep, energy, calm,
and focus.
Fertin Pharma has more than 850 employees and operations in
Denmark, Canada, and India. It is a leading contract development
and manufacturing organization (CDMO), specializing in the
research, development and production of gums, pouches, liquefiable
tablets, and other solid oral systems for the delivery of active
ingredients, including nicotine, where it is a leading producer of
Nicotine Replacement Therapy (NRT) solutions. In 2020, Fertin
Pharma generated net revenues of DKK 1.1 billion (approximately USD
160 million2).
Fertin Pharma will operate as a wholly owned subsidiary of PMI.
PMI expects the impact of the acquisition on its full-year 2021
adjusted diluted EPS to be immaterial.
________________ 1 Based on prevailing exchange rate at
transaction close
2 Based on average 2020 exchange rate
Forward-Looking & Cautionary Statements
Statements in this press release that 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 statements 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
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
such forward-looking statements and you should not place undue
reliance on any such forward-looking statements. These factors
include risks and uncertainties related to, among other things: (1)
the possibility that the integration of Fertin Pharma and its
operations with those of PMI may be more difficult and/or take
longer than anticipated, and may not accelerate PMI’s desired entry
into additional smoke-free and beyond nicotine platforms as quickly
as anticipated; (2) the possibility that Fertin Pharma’s
integration into PMI may be more costly than anticipated and may
have unanticipated adverse results relating Fertin Pharma or PMI’s
existing businesses; (3) the effect of the acquisition on the
respective business relationships, operating results and business
generally 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)
negative effects of the consummation of the transaction on the
market price of PMI’s common stock; (6) the ability of PMI to
retain and hire key personnel of Fertin Pharma; and (7) other
factors that may affect future results of the combined company
described in the section entitled “Risk Factors” in PMI’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2020,
PMI’s Form 10-Q for the quarter ended June 30, 2021, and other
filings of PMI with the Securities and Exchange Commission. The
forward-looking statements made herein speak only as of the date
hereof and PMI does not assume any obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events and developments or otherwise, except as
required by law.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is leading a transformation in
the tobacco industry to create a smoke-free future and ultimately
replace cigarettes with smoke-free products to the benefit of
adults who would otherwise continue to smoke, society, the company,
its shareholders and its other stakeholders. PMI is a leading
international tobacco company engaged in the manufacture and sale
of cigarettes, as well as smoke-free products, associated
electronic devices and accessories, and other nicotine-containing
products in markets outside the U.S. In addition, PMI ships
versions of its IQOS Platform 1 device and consumables to Altria
Group, Inc. for sale under license in the U.S., where these
products have received marketing authorizations from the U.S. Food
and Drug Administration (FDA) under the premarket tobacco product
application (PMTA) pathway; the FDA has also authorized the
marketing of a version of IQOS and its consumables as a Modified
Risk Tobacco Product (MRTP), finding that an exposure modification
order for these products is appropriate to promote the public
health. PMI is building a future on a new category of smoke-free
products that, while not risk-free, are a much better choice than
continuing to smoke. Through multidisciplinary capabilities in
product development, state-of-the-art facilities and scientific
substantiation, PMI aims to ensure that its smoke-free products
meet adult consumer preferences and rigorous regulatory
requirements. PMI's smoke-free product portfolio includes
heat-not-burn and nicotine-containing vapor products. 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 around the world have already
switched to IQOS and stopped smoking. For more information, please
visit www.pmi.com and www.pmiscience.com.
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Philip Morris International Investor Relations: New York: +1
(917) 663 2233 Lausanne: +41 (0)58 242 4666
InvestorRelations@pmi.com
Media: Lausanne: +41 (0)58 242 4500 Iro.Antoniadou@pmi.com
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