News reports suggest that the tobacco giant is looking at purchasing a nicotine gum maker.
VEJLE, Denmark — Philip Morris International (PMI) is reportedly looking into purchasing a nicotine gum maker in Denmark. According to Bloomberg News and other news media reports, the company is Fertin Pharma — a pharmaceutical company that makes NRT.
Financial analysts from these reports said that Fertin could be valued at roughly $713.5 million, including the company’s debt, in the sale, reports Tobacco Reporter.
Fertin is the “world’s biggest contract development and manufacturing organization for nicotine chewing gum” and “also helps produce tablets, gum and lozenges used for pain medication, vitamins, cough treatments, and sleeping aids.”
Fertin has more than 800 employees spread across the world. According to its website, these employees work in research and manufacturing installations in Canada, Denmark, and India and currently produce three billion units a year. PMI, for years, has been public about expanding its non-tobacco offerings and smoke-free products.
Over the years, Philip Morris International has invested $8 billion in research and development for new-generation nicotine and tobacco-free products.
The company aims to generate more than half of its sales from smoke-free products in the next four years. The company is also eyeing $1 billion in net revenues from products that aren’t linked to nicotine by the fiscal year of 2025.
Fertin’s parent company has an investment in the research and development of cannabinoid products through an ownership stake in MedCan Pharma A/S.
If the rumors of PMI buying into Fertin are true, this acquisition could be a strong question in favor of investing in not only tobacco-free products but cannabis.
PMI is said to have invested in an Israeli company that’s developing a medical cannabis inhaler product. The company is also said to have developed a variety of products that are based in the global medical and recreational marijuana market.