NEW YORK —Philip Morris International Inc. (PMI) has entered an agreement to acquire Fertin Pharma A/S. The $820-million deal, which is expected to close in fourth quarter 2021, will be a significant step in enhancing the tobacco company’s smoke-free portfolio, PMI said.
Vejle, Denmark-based Fertin Pharma is a developer and manufacturer of pharmaceutical and well-being products based on oral and intra-oral delivery systems. It specializes in the research and production of gums, pouches, liquefiable tablets and other solid oral systems that deliver active ingredients, including nicotine, PMI said.
“The acquisition of Fertin Pharma will be a significant step forward on our journey toward delivering a smoke-free future, enhancing our smoke-free portfolio, notably in modern oral, and accelerating our progress in beyond-nicotine,” said PMI CEO Jacek Olczak. “Fertin’s diverse portfolio of technologies, evolving business mix and world-class expertise will enrich our innovation pipeline and capabilities, providing speed and scale in oral delivery to support our 2025 goals of generating more than 50% of our net revenues from smoke-free products and at least $1 billion from products beyond nicotine.”
With the acquisition of Fertin Pharma, PMI said it will gain substantial know-how for the development of additional smoke-free platforms. It will also build its overall platform of research, development and manufacturing expertise in nicotine and beyond nicotine products though the addition of Fertin’s workforce, which includes 80 scientists and more than 850 employees total in Denmark, Canada and India.
Fertin Pharma generated net revenues of about $160 million in 2020, PMI said. It’s currently owned by global investment organization EQT and Bagger-Sørensen & Co. Upon completion of the acquisition, Fertin Pharma will be a wholly owned subsidiary of PMI.
“PMI is going through an inspiring transformation as a company with an ambition to deliver a smoke-free future and building a beyond-nicotine product portfolio, an ambition that perfectly matches that of Fertin Pharma, namely to enable people to live healthier lives,” said Peter Halling, CEO of Fertin Pharma. “In PMI we have found a new owner and partner who shares our vision, who is committed to science and who will enable Fertin Pharma to further accelerate and grow as a company.”
PMI, New York, sells tobacco products in more than 180 markets, according to its website. Its top brands include Marlboro, Parliament, Virginia Slims, IQOS and more.