• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
  • Guest Content
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
No Result
View All Result
Home News

‘Beggars belief:’ Inhaler firm execs unanimously back takeover by Marlboro owner

Sarah Woolnough said the proposed takeover would see “a company that has profited from the devastation smoking causes to make even more money by providing treatments for the illnesses they have caused”.

Joe Mellor by Joe Mellor
2021-08-13 08:22
in News
Credit;PA

Credit;PA

FacebookTwitterLinkedinEmailWhatsapp

The board of inhaler maker Vectura intends to unanimously recommend shareholders vote through a £1.1 billion takeover by cigarette maker Philip Morris.

Bosses at the pharmaceuticals business, which aims to help patients with lung diseases, said the bid by the company behind Marlboro cigarettes was “fair and reasonable”.

A rival bid of £958 million by private equity house Carlyle alongside heavy lobbying by health campaigners has now been rejected but the company said it appreciated the firm’s interest.

The bidding war ended on Thursday at 5pm as a deadline passed for Philip Morris (PMI) to increase its offer of 165p a share in Vectura, after Carlyle said on Tuesday its own 155p-a-share offer was final.

Following the lack of further bids, the drug firm’s board said in a statement they “appreciate Carlyle’s interest in Vectura over this lengthy process and their support for Vectura’s strategy to become one of the market leading CDMOs (contract development and manufacturing company) in the inhalation segment.

Superior cash price

“However, the Vectura directors recognise the superior cash price the final PMI offer provides Vectura shareholders.

“The Vectura directors also note that wider stakeholders could benefit from PMI’s significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.

“Accordingly, following careful consideration of these factors and their fiduciary duties, the Vectura directors intend to unanimously recommend the PMI offer to Vectura shareholders.”

The takeover process started in May when Carlyle approached the FTSE 250-listed firm with the 136p-a-share deal.

RelatedPosts

Bank of England expert slams ‘Brexit red tape’ for sky-high food prices

Michael Gove confronted about his cocaine use, after proposing ‘a ban on laughing gas’

Laurence Fox says his son told him he needed his consent to kiss him goodnight

‘Time to get a real job’ verified users joke as Twitter axes legacy checkmarks

The bid immediately gained the backing of Vectura’s board, which said that the price would give cash to shareholders today for advances the company would have made in the future.

But last month, Vectura’s directors switched their allegiance to PMI, which muscled into Carlyle’s bid with an offer of its own, in a move that raised eyebrows from doctors and politicians.

On Thursday but before the announcement by the company, the chief executive of Asthma UK and the British Lung Foundation called the move by PMI “unacceptable”.

Sarah Woolnough said the proposed takeover would see “a company that has profited from the devastation smoking causes to make even more money by providing treatments for the illnesses they have caused”.

Previously a shared statement from American Lung Association president Harold Wimmer and American Thoracic Society president Lynn Schnapp called the move a “reprehensible choice” by PMI.

It said: “The announcement that Philip Morris International (PMI) wants to acquire an inhaled medicine company is the latest reprehensible choice from a company that has profited from addicting users to its deadly products.

“We are deeply concerned that PMI will use the inhalation services technologies developed by Vectura to make their tobacco products more addictive.

Sickened

“We are also deeply troubled that this company could further profit from the disease their products have caused by now selling therapies to the same people who were sickened by smoking PMI cigarettes.”

They called on the UK Government to stop the sale, adding their voices to similar demands from the Labour Party.

For Philip Morris the acquisition represents a way to move beyond nicotine. Non-tobacco products are making up an increasingly large part of the business’s portfolio.

So when Carlyle returned with a new bid for Vectura last week, which was backed by Vectura’s board, Philip Morris was quick to up its own offer over the weekend.

Shadow health secretary Jonathan Ashworth said: “Philip Morris’s attempted takeover of a key player in lung health products beggars belief. It is bitterly disappointing that Vectura have so far failed to exercise duty of care to patients and scientists and reject this takeover by big tobacco.

“This is now a test for Sajid Javid. When we know smoking causes so much serious illness and premature death, it’s time this Government takes the right course, stands up to this tobacco giant and blocks this takeover.”

Related: ‘Reprehensible choice:’ Tobacco firm Philip Morris’s controversial bid for asthma firm goes to auction

Content Protection by DMCA.com

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending

Elevenses: Exposing the Tories’ Deepfake Illegal Immigration Bill

Elevenses: Rishi’s Finest Hour

Elevenses: Fear and Loathing in the New Conservatives

More from TLE

New Frontiers: Overcoming the challenges of international expansion

Outrage as almost 300 jobs slashed at Cammell Laird Shipyard

How making Art can create a fairer and more caring society

Dramatic scenes as Theresa May survives no confidence vote but warned election may be inevitable

The far right commands 22m voters across Europe and it’s rising – what next?

Poor sleep can cause Alzheimer’s disease

Charges in fewer than 1% of cases probed by UK’s first online hate crime unit

Keeping nurseries open is a ‘dangerous mistake’, Johnson is warned

Labour membership surges by more than 100,000 as deadline looms

London escapes in under an hour: The Grove, Hertfordshire

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.