Philip Morris International (PMI) has agreed to acquire British pharmaceutical firm Vectura Group for about $1.183bn (£852m) to expand its product pipeline development capabilities in inhaled therapeutics.
The latest move follows an agreement signed by Philip Morris to acquire Fertin Pharma from private equity firm EQT.
Vectura is an inhaled drug delivery solutions provider and currently has 13 key inhaled and 11 non-inhaled products marketed by major global pharma companies.
Additionally, the company has a diverse portfolio of partnerships for drugs in clinical development.
Under the deal, PMI will offer 150 pence for every Vectura share.
PMI stated that the transaction will provide it access to differentiated proprietary technology and pharmaceutical development expertise to offer a broad range of complex inhaled therapies.
The company believes that the pair can develop a new fully owned pipeline of products in the prescription drugs and over-the-counter (OTC) categories thatwill complement Vectura’s contract development and manufacturing (CDMO) business and service to its existing client base.
PMI CEO Jacek Olczak said: “The acquisition of Vectura, following the recently announced agreement to acquire Fertin Pharma, will position us to accelerate this journey by expanding our capabilities in innovative inhaled and oral product formulations in order to deliver long-term growth and returns.
“The market for inhaled therapeutics is large and growing rapidly, with significant potential for expansion into new application areas.
“PMI has the commitment to science and the financial resources to empower Vectura’s skilled team to execute on an ambitious long-term vision.
“Together, PMI and Vectura can lead this global category, bringing benefits to patients, to consumers, to public health, and to society-at-large.”
Subject to a shareholder vote and appropriate regulatory authorities’ approval, the transaction is expected to conclude in the second half of the year.
Furthermore, the company has planned to fund the transaction using its existing cash.