Philip Morris goes “beyond nicotine”
US tobacco giant Philip Morris International has agreed to pay £1bn for British inhaler specialist Vectura.
US tobacco giant Philip Morris International “wants you to think it’s a healthcare company now”, says Rich Duprey on The Motley Fool. In February, the Marlboro cigarette owner launched its “beyond nicotine” initiative, which plans to “generate over half of its total net revenue from smoke-free products by 2025”.
Now it has agreed to pay £1bn for British inhaler specialist Vectura. The group’s devices have been used to help bring “13 inhaled medicines to market”. Philip Morris says it is evolving into “a broader healthcare and wellness company”, but critics spy “a wolf in sheep’s clothing”.
No wonder, says Helen Thomas in the Financial Times. Transitioning into cigarette alternatives is one thing, but Vectura makes most of its money from treating smoking-related diseases. It is as if BP announced a move “into flood prevention and forest-fire management”. What’s more, Vectura’s links to the tobacco industry could hamper its ability “to attract talent... and develop products”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The takeover could also limit how much the NHS is allowed to deal with Vectura, adds Alistair Osborne in The Times. Britain’s membership of the World Health Organisation’s Convention on Tobacco Control commits it to reducing the industry’s influence in public health policymaking.
The “conflicts of interest” opened up by a firm that “kills people for profit” getting into the healthcare game are “myriad”. “Calls for the government to stub out takeovers are too frequent lately. But this one really does belong in the ashtray.”
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
Could your family be at risk of an unexpected tax bill? How to keep your loved ones in the loop
Many families are out of the loop when it comes to planning the financial aspects of both retirement and inheritance
-
Rightmove: Glut of homes for sale in southern England drives asking price drop
Asking prices are 0.1% lower than a year ago, according to the property website, driven by challenges in affordability-stretched London and the south
-
Small UK industrial stocks are hidden gems
Opinion Ed Wielechowski of the Odyssean Investment Trust highlights three of his favourite British small-cap industrial stocks
-
Aurora Innovation is running on empty – is it overvalued?
Aurora Innovation, a maker of self-driving trucks, may have promised far more than it can deliver
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeek
Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
What is the Enterprise Investment Scheme and should you have one?
The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
The alcohol industry is suffering as consumers sober up – is it still worth investing in the sector?
Changing consumer tastes are rocking the alcohol industry, but the best players are adapting their strategies. Buy them while their shares are still cheap
-
A strange calm in credit
Corporate bond markets remain remarkably relaxed, with yields that offer little compensation for risks
-
'The City's big bet on green finance fails to pay out'
Opinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Six top investment trusts for smaller stocks
Liquidity constraints mean investment trusts are best placed to seize the juiciest opportunities