Philip Morris sells Vectura, the inhaler maker, after 3 years

Philip Morris International has divested Vectura, a respiratory drugs company, for £150 million, significantly less than the £1 billion it paid for the company three years prior. This sale comes after a controversial acquisition that faced backlash from public health advocates due to Vectura's development of inhalers for smoking-related conditions. The buyer, Molex, is a US company that operates Phillips Medisize, a contract development and manufacturing organization. The acquisition of Vectura by Philip Morris in July 2021 was marked by criticism from various public health bodies, clinicians, and charities. They expressed concerns that the tobacco giant's ownership could hinder Vectura's ability to operate effectively in the healthcare sector. This criticism highlighted the potential conflict between the interests of a tobacco company and the mission of a healthcare provider. Despite Philip Morris's efforts to transform its business model away from tobacco, the sale of Vectura indicates challenges in this transition. The significant loss in value from the initial acquisition to the sale price reflects the difficulties faced by the company in aligning its new direction with public health expectations. Ultimately, the divestment of Vectura marks a setback for Philip Morris in its quest to reshape its corporate identity. The sale may allow Vectura to operate more freely under Molex, potentially alleviating some of the concerns raised during its time under tobacco ownership.