Philip Morris completes highly contested acquisition of Vectura

Vectura shareholders have finally followed their board of directors in accepting the acquisition of this laboratory by Philip Morris International (PMI). An acquisition that places the tobacco multinational in a position of conflict of interest and ostracizes the laboratory from the medical community.

PMI, which had already acquired 29% from the British Vectura last July, officially took control of it on September 16, 2021 and now holds 75% of its capital. The acquisition of this laboratory, specialized in the production of inhalers for the treatment of asthma and chronic obstructive pulmonary disease (COPD), had provoked an outcry from British and international health players.

A conflict of interest highlighted by health professionals

The latter have highlighted the fact that the cigarette manufacturer sells medical equipment to treat the diseases it knowingly caused and they have called on the British authorities to intervene to stop this acquisition. They denounce a clear conflict of interest and contest the position of health actor claimed by PMI[1]. "It also creates perverse incentives for Philip Morris International to sell more of its dangerous products in order to then profit from them through treatments for smoking-related diseases.", said Sarah Woolnough, director of Asthma UK and the British Lung Foundation[2]An accusation dismissed by Jacek Olczac, CEO of PMI, who believes that his detractors are not "not interested in progress"[3].

Healthcare players had also warned Vectura shareholders of the consequences of this acquisition in terms of research and scientific publications, believing that the merger with PMI would place this company on the fringe of the scientific community. Vectura has just been excluded from the pharmaceutical conference Formulation and Delivery UK, which is to be held in London on September 21 and 22, 2021, after a group of doctors opposed its presence.[4].

Vectura could also face difficulties in Australia, where respiratory health stakeholders have said they would be unable to prescribe inhalers that belong to a tobacco company. Reimbursing health costs could amount to indirect funding of the tobacco company with public funds and would put the country in breach of Article 5.3 of the Framework Convention on Tobacco Control (FCTC).[5]The question also arises for other laboratories, such as Novartis or GSK, which use Vectura components in the manufacture of their inhalers.

A repositioning discussed in the health sector

Philip Morris is not only targeting the respiratory disease market, but also that of cardiovascular diseases, two types of pathology that pay a heavy human price for smoking. Between the acquisitions of Fertin Pharma and Vectura in July 2021, PMI thus more discreetly acquired the company OtiTopic, which designed a cardiovascular inhaler still in the process of being validated by the Food and Drug Agency.[6].

With these acquisitions, representing more than two billion dollars alone, Philip Morris International intends to take a position in the "health and well-being" market. Health professionals fear that the cigarette manufacturer will exploit this new identity to gain more space with elected officials and in debates around public health policies, from which it had been excluded for more than twenty years.

This strategy complements that of smokeless tobacco and nicotine products, on which PMI communicates massively, by hiding the fact that three quarters of its revenues still come from smoked tobacco, particularly in low- and middle-income countries. Like other tobacco manufacturers, PMI seized on the medical concept of harm reduction in the late 2010s in order to divide the scientific community and counter anti-smoking policies, while trying to rehabilitate its image. Health professionals believe that this about-face by manufacturers is only a commercial and strategic survival reflex, while sales of smoked tobacco are falling in Western countries.[7].

The race for scientific support from cigarette manufacturers

The tobacco industry's apparent concern for the health of smokers is not a new argument; on the contrary, it has been widely exploited since the 1950s, first with the invention of filters, then with so-called "light" cigarettes. This reassuring discourse from the industry was accompanied by an attempt to scientifically justify its claims, by funding organizations presented as scientific. The real objective of these organizations, confirmed by the cigarette companies' archives, was above all to bring contradiction, to sow doubt and to break the medical consensus on the innumerable damages caused by smoking.

A trend that has been expressed since 2018 by the Foundation for a Smokefree World (FSW), exclusively funded by PMI. However, this foundation seems to have difficulty in establishing partnerships with research centers and spends more of its funds on public relations than on research.[8]By acquiring pharmaceutical laboratories, tobacco manufacturers are also seeking to gain a foothold in the scientific community; the example of the acquisition of Vectura shows that the latter is far from being ready to welcome them.

M.F.

[1] Richardson Y, How Low Will They Go? Philip Morris International Acquires Lung-Health Firm Vectura Despite Obvious Conflict of Interest, Campaign for Tobacco-Free Kids, published September 16, 2021, accessed September 17, 2021.

[2] AFP/Le Figaro, Tobacco giant Philip Morris acquires 75% from Vectura, published September 16, 2021, accessed September 17, 2021.

[3] Sky News, Tobacco giant Philip Morris clinches shareholder backing for inhaler maker Vectura, published September 16, 2021, accessed September 17, 2021.

[4] Kollewe J, Davies R, Inhale firm Vectura removed from conference over Philip Morris takeover, The Guardian, published September 16, 2021, accessed September 17, 2021.

[5] Branley A, Scott S, Tobacco giant's takeover bid could affect COPD lung disease treatment and research in Australia, ABC, published September 14, 2021, accessed September 17, 2021.

[6] Walter M, Tobacco juggernaut acquires therapeutics company behind inhalable heart attack treatment, Cardiovasuclar Business, published August 10, 2021, accessed September 17, 2021.

[7] Gill O, Block Vector takeover, Philip Morris investors urged, The Telegraph, published September 12, 2021, accessed September 17, 2021.

[8] STOP, Addiction at any cost, Philip Morris International Uncovered, 66 p. (undated), consulted on September 17, 2021.