Philip Morris International has closed its acquisition of Fertin Pharma, a leading developer and manufacturer of innovative pharmaceutical and well-being products based on oral and intra-oral delivery systems, for an enterprise value of DKK5.1 billion ($820 million).
“As we build our pipeline of smoke-free products with the goal of phasing out cigarettes and expand our business for the long-term toward areas outside of tobacco and nicotine, such as self-care wellness, we welcome the contributions that Fertin Pharma, its management and its employees will bring to PMI,” said PMI CEO Jacek Olczak in a statement.
“PMI’s future is centered on health, science, technology and sustainable business practices to deliver innovative products and solutions that aim to improve people’s lives and create a net positive impact on society. The world-class expertise of Fertin aligns perfectly with this vision and will be an important part of our future.”
“We are excited to join PMI and start this new chapter for Fertin Pharma,” said Peter Halling, the company’s CEO. “By becoming part of PMI’s transformation, Fertin will be uniquely positioned to continue to innovate, grow and serve our customers as a leading CDMO [contract development and manufacturing organization]—delivering on our vision to enable people to live healthier lives. Our shared commitment to science and consumer-centric innovations forms a strong basis for a very successful future together.”
The addition to Fertin Pharma’s technologies, capabilities and workforce—including around 200 R&D professionals—will provide PMI with speed and scale in differentiated and innovative oral delivery products to support its 2025 goals of generating more than 50 percent of its total net revenues from smoke-free products and at least $1 billion in net revenues from products beyond nicotine.
With Fertin Pharma’s know-how, PMI plans to accelerate its presence in the fast-growing modern oral category through a broad range of smoke-free products, such as nicotine pouches, that can help more adults who would otherwise continue to smoke switch to better alternatives and stop smoking. In addition, Fertin Pharma’s oral delivery platforms—which are complementary to PMI’s inhalation expertise—can be leveraged for the development of scientifically substantiated self-care wellness products, including over-the-counter solutions and supplements for better living in areas such as sleep, energy, calm and focus.
Fertin Pharma has more than 850 employees and operations in Denmark, Canada and India. It is a leading CDMO, specializing in the research, development and production of gums, pouches, liquefiable tablets and other solid oral systems for the delivery of active ingredients, including nicotine, where it is a leading producer of nicotine-replacement therapy solutions. In 2020, Fertin Pharma generated net revenues of DKK1.1 billion.