Vectura jilts Carlyle, accepting a takeover bid from Philip Morris

9 July 2021

UK developer of inhaled therapies developer Vectura (LSE: VEC) today announced it has agreed to a cash acquisition of the firm by cigarette giant Philip Morris International (NYSE: PM), as the latter looks to expand its business beyond tobacco and nicotine.

Vectura’s shares were up 12.7% at 152.86 pence shortly after London trading commenced this morning.

Philip Morris (PMI) will pay 150 pence per share in cash for Vectura, including a 19 pence interim dividend, valuing the transaction at £1.045 billion ($1.44 billion). As a result of accepting the offer, Vectura has withdrawn its recommendation for a £958 million takeover by funds managed by private equity firm Carlyle Group, which was announced in May this year. PMI's offer is a 10% premium to Carlyle's 136 pence per share bid.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK