Molex to Acquire Vectura from PMI in Strategic Pharma Delivery Deal

Philip Morris International is divesting its subsidiary Vectura Group to Molex Asia Holdings Ltd., marking a significant shift in PMI’s pharmaceutical ambitions. The transaction will see Vectura operate under Phillips Medisize, a Molex subsidiary with deep expertise in drug delivery systems and medical devices.

Deal Structure and Financial Terms

The acquisition includes an initial payment of GBP 150 million, subject to standard purchase price adjustments. Additional contingent payments of up to GBP 148 million may be due upon satisfaction of specific conditions. Regulatory clearance remains a prerequisite for closing the transaction. The divestiture reflects PMI’s recalibration of its inhalation therapeutics strategy while maintaining core assets under its direct ownership.

PMI’s Rationale and Strategic Shift

PMI’s 2021 acquisition of Vectura was positioned as a cornerstone of the company’s expansion into wellness and healthcare sectors beyond traditional tobacco products. The investment brought specialized knowledge in inhaled drug delivery and advanced formulation science. However, PMI acknowledged that external pressures and constraints related to its ownership have hindered Vectura’s scientific partnerships and commercial opportunities with contract development and manufacturing organizations (CDMOs).

According to PMI Chief Executive Officer Jacek Olczak, the divestiture aligns with the company’s long-term objectives: “Phillips Medisize, with its 60 years of expertise in pharmaceutical drug delivery devices and extensive global manufacturing operations, is optimally positioned to advance Vectura’s capabilities while operating free from the external resistance our ownership has attracted.”

What Remains Under PMI Control

PMI will retain a separate Vectura Fertin Pharma entity focused on developing oral consumer health products and inhaled prescription therapeutics for pain management and cardiovascular emergencies. This retained business maintains PMI’s foothold in the inhalation therapy space while allowing Vectura itself to operate with greater commercial flexibility.

Molex and Phillips Medisize’s Strategic Fit

Phillips Medisize brings over six decades of experience in drug delivery system design, engineering, and manufacturing. With operations spanning 29 facilities across North America, Europe, and Asia, the company serves major pharmaceutical and medical device manufacturers. Integrating Vectura strengthens Phillips Medisize’s position in inhaled drug delivery markets and expands its capabilities in a strategically important therapeutic area.

PMI’s Broader Smoke-Free Evolution

Beyond this divestiture, PMI has invested more than $12.5 billion since 2008 in developing smoke-free alternatives and moving away from traditional cigarettes. The company’s portfolio includes IQOS (recently authorized by the U.S. FDA as a Modified Risk Tobacco Product) and ZYN nicotine pouches, following PMI’s 2022 acquisition of Swedish Match. As of mid-2024, PMI’s smoke-free products generated approximately 38% of the company’s total first-half revenues and reach an estimated 36.5 million adult users globally across 90 markets.

Transaction Outlook

Completion of the Vectura sale depends on satisfaction of customary closing conditions and receipt of necessary regulatory approvals. Forward-looking statements acknowledge that various risks—including regulatory delays, legal challenges, and changes in market conditions—could impact the transaction timeline or ultimate benefits to both parties.