Philip Morris International has signed an agreement to acquire Fertin Pharma from private equity firm EQT for approximately $812.8m (DKK5.1bn).
Denmark-based Fertin Pharma is a specialist contract development and manufacturing organisation in oral and intra-oral delivery technologies.
The company develops and manufactures gums, pouches, liquefiable tablets and other products used for pharmaceutical and nutraceutical applications.
It also produces other solid oral systems for the delivery of active ingredients, including nicotine; and nicotine replacement therapy solutions.
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.
“Fertin’s diverse portfolio of technologies, evolving business mix, and world-class expertise will enrich our innovation pipeline and capabilities, providing speed and scale in oral delivery to support our 2025 goals of generating more than 50% of our net revenues from smoke-free products and at least $1bn from products beyond nicotine.”
Fertin Pharma, which is owned by EQT and Bagger-Sørensen & Co, will become a wholly owned subsidiary of Philip Morris upon completion of the deal.
By leveraging Fertin Pharma’s oral delivery platforms, Philip Morris will get access to various technologies for scientifically substantiated botanicals and other selfcare wellness products.
These products include over-the-counter solutions and supplements.
Philip Morris stated that the acquisition of Fertin Pharma advances its goal to become a majority smoke-free business by 2025.
Through this deal, Philip Morris will gain substantial know-how to develop, formulate and commercialise smoke-free products that include nicotine pouches and lozenges.
Subject to appropriate regulatory authorities’ approval, the transaction is anticipated to be concluded in the fourth quarter of this year.