PMI to Commit Additional USD 200 Million to Corporate Venture Capital Activities of PM Equity Partner
October 28 2021 - 5:59AM
Business Wire
Philip Morris International Inc. (PMI) (NYSE: PM) today
announced its plans to dedicate a further USD 200 million to
minority investments in early and growth-stage companies through PM
Equity Partner (PMEP), PMI’s corporate venture capital arm. This
allocation follows a 2016 commitment of USD 150 million that PMEP
has since fully invested and is intended to support PMI’s
smoke-free and beyond nicotine ambitions.
With this latest round of funding, PMI will leverage its
strengths to help investee companies translate innovation into
commercial success. Developed through PMI’s journey to replace
cigarettes with smoke-free alternatives, the company’s
best-in-class capabilities include advanced life science expertise,
preclinical and clinical research, and aerosolization.
PMEP is focusing its investment activities on four distinct
technology segments:
- Life science innovations, such as inhaled therapeutics and
computational research methodologies.
- Industrial technologies like industrial robotics and
automation, the internet of things, and technology-based process
optimization.
- Product technologies, particularly those that relate to
inhalation and aerosolization, chemical formulation, and
bio-authentication.
- Consumer engagement technologies, such as user identification
and age authentication, innovative customer care, and experience
management.
Emmanuel Babeau, PMI’s Chief Financial Officer, said: “PMI’s
scientific and technological leadership has enabled us to re-invent
our company in our pursuit to unsmoke the world. We are dedicating
further funds to our venture capital arm at a moment when we are in
an even stronger position to leverage our expertise to support the
development and commercialization of cutting-edge technologies, to
the benefit of both PMI and investee companies.”
Alexander Stoeckel, head of PMEP, added: “PMEP is looking to
invest in companies that can help PMI accelerate and further
sophisticate our transformation while we support them through our
industry-leading expertise to mature their technologies and
businesses. We see this exchange as a win-win for PMI, the
companies we invest in, and society.”
PMEP has a track record of success with investments in 13
companies to date through its 2016 funding commitment. Ideal
investments are between USD 2 to 10 million in Series A stage
companies, with flexibility to also consider investments in seed or
late-growth stage companies. PMEP investments are intended to add
to our potential to innovate, while better positioning our partner
companies for success.
PMI is leading the transformation of the industry in our pursuit
to go smoke-free. Since 2008, we have invested more than USD 8.1
billion into the science and research of developing smoke-free
products, employing hundreds of world-class scientists, engineers,
and technicians in our R&D efforts. Our pre-clinical and
clinical programs are inspired by the pharmaceutical industry and
aligned with internationally recognized good practices, with more
than 425 peer-reviewed publications and book chapters published
since 2008. In July 2020, PMI was the second company to receive
authorization from the U.S. FDA to market a nicotine or tobacco
product as a modified risk tobacco product, with the agency
concluding that issuing exposure modification orders for our heated
tobacco system IQOS is “appropriate to promote the public health”
and is “expected to benefit the health of the population as a
whole.” Today, 29% of our total net revenues are derived from
smoke-free products, and approximately 14.9 million adult smokers
have switched to IQOS and stopped smoking.
More details on PMEP, its investment strategy, criteria, team,
and how to be in touch can be found at www.pmequitypartner.com.
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 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, versions of PMI’s
IQOS Platform 1 device and consumables 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 products,
nicotine-containing vapor products, and oral nicotine products. As
of September 30, 2021, PMI's smoke-free products are available for
sale in 70 markets in key cities or nationwide, and PMI estimates
that approximately 14.9 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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version on businesswire.com: https://www.businesswire.com/news/home/20211028005205/en/
David Fraser Philip Morris International T. +41 (0)58 242 4500
E. david.fraser@pmi.com
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