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Philip Morris CEO defends the company’s intention to acquire inhaler maker Vectura

Philip Morris International CEO Yazek Olzac defended the tobacco company’s intention to acquire a British pharmaceutical company Vectura GroupTell CNBC that they are steadily working to eliminate tobacco use.

“We can stand still and continue to sell tobacco, or at least we can do something with science and technology to significantly reduce the harm caused by smoking,” Olzac said. It was. “Closing Bell” “I believe what we are doing is absolutely right …. There is nothing to stop us in our transformation to put off smoking.”

Earlier this month, Philip Morris announced a deal to buy Vectura for a corporate value of $ 1.2 billion.But the planned acquisition hesitation And Criticism From a smoking cessation group and the UK government that considers a partnership between a tobacco company and a company specializing in inhaled drugs for conditions such as asthma inappropriate. Cigarette smoke is a “powerful asthma trigger”. According to the Cleveland Clinic..

Philip Morris’ offer to Vectura surpassed previous bids by private equity firm The Carlyle Group. Critics of Vectura’s proposed deal “oppose the transformation of the tobacco industry,” Olzac said.

Philip Morris, which manufactures and sells tobacco and smokeless nicotine products outside the United States, is trying to change that image. In February, it Announced Our goal is to generate more than 50% of total net sales from smokeless products by 2025. The company also offers respiratory drug delivery and “self-care wellness.”

Philip Morris shares fell about 3% on Tuesday after the company announced its second-quarter earnings. $ 7.59 billion in revenue Below Refinitiv’s forecast Of $ 7.69 billion. Still, inventories have increased by almost 15% year-to-date.

Olzac said he believed it was a “very strong second quarter.” He also said the company is more optimistic about the resumption of the global economy, especially in the European market, than it was when 2021 began.

Philip Morris CEO defends the company’s intention to acquire inhaler maker Vectura

Source link Philip Morris CEO defends the company’s intention to acquire inhaler maker Vectura

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