The acquisition of Fertin Pharma would support PMI’s goal of generating more than 50% revenues from smoke-free products by 2025
Philip Morris International (PMI) has signed an agreement to acquire Denmark-based Fertin Pharma for an enterprise value of DKK5.1bn (around $820m).
Fertin Pharma is a privately held contract development and manufacturing organisation (CDMO) with operations in Denmark, Canada and India.
It is specialised in the research, development and production of gums, pouches, liquefiable tablets, and other oral systems for the delivery of Nicotine Replacement Therapies (NRT).
Currently owned by the global investment organisation EQT and Bagger-Sørensen & Co., Fertin Pharma has generated net revenues of DKK1.1bn ($160m) in 2020.
Fertin Pharma CEO Peter Halling said: “Fertin Pharma has been on a fantastic journey with EQT and the Bagger-Sørensen family as owners.
“With the new ownership in place, Fertin Pharma will be in a great position to continue delivering on our vision and mission, including our work as a CDMO for our customers.”
With the acquisition, PMI will obtain know-how for the development, formulation and commercialisation of smoke-free platforms including nicotine pouches and lozenges.
The deal would support its goal of generating more than 50% of net revenues from smoke-free products by 2025 and at least $1bn from products beyond nicotine.
Also, the company will leverage Fertin’s oral delivery platforms for other self-care wellness products, including over-the-counter solutions and supplements.
The transaction is expected to complete in the fourth quarter 2021, subject to necessary regulatory approvals. PMI intends to fund the transaction with cash in hand.
Upon closing, Fertin Pharma will operate as a wholly-owned subsidiary of PMI.
Philip Morris CEO Jacek Olczak said: “The acquisition of Fertin Pharma will be a significant step forward on our journey toward delivering a smoke-free future, enhancing our smoke-free portfolio, notably in modern oral, and accelerating our progress in beyond nicotine.
“Both PMI and Fertin share a commitment to science and consumer-centric innovations for better living, and I am delighted we have reached this agreement.”