Tag: British American Tobacco

  • BAT Conducts Real-World Vuse Study

    BAT Conducts Real-World Vuse Study

    Photo: BAT

    BAT has conducted a first-of-its-kind study of Vuse designed to assess and provide insights into the real-world health impact of vaping. The study compares biomarker measures from Vuse consumers who have been using the product for over six months with the results from smokers, former smokers and never-smokers. Protocol details explaining the innovative design of the latest study were published in the Journal of Health and Environmental Research.

    The cross-sectional study design uses a single set of data readings to measure exposure to certain toxicants and indicators of potential harm related to several smoking-related diseases in people who have been exclusively using Vuse.

    BAT hopes that the results, which are currently being analyzed and will be published later this year, will provide further supportive evidence that using Vuse can reduce relative risk for certain diseases among adult consumers compared to smoking. The company expects that once available, the results will add to the growing body of evidence on Vuse’s potential as a reduced-risk product.

    “This innovative study demonstrates our commitment to researching the reduced-risk potential of our new category products,” said Sharon Goodall, BAT’s group head of regulatory sciences, in a statement.

    “What makes it particularly relevant and exciting is that the results generated will be from people who have been using Vuse as they normally would for more than six months prior to testing. The results will provide important new insights and show us the differences between Vuse users, smokers and former smokers across a range of important biomarkers thought to be predictive of disease development. We look forward to sharing the data once available.”

  • Sailing to Zero

    Sailing to Zero

    Photo: BAT

    BAT wants to become carbon neutral across its value chain by 2050.

    By Stefanie Rossel

    For the environment, tobacco production is a damaging business. In 2014, global cigarette manufacturing was responsible for 84 million tons, or 0.2 percent, of the world’s carbon dioxide (CO2) emissions, according to a study by Imperial College. Eager to minimize their impact, tobacco companies have been working hard to reduce their carbon footprint.

    BAT, for one, aims for carbon neutral operations by 2030 and a “net-zero” value chain by 2050. The company signed up for the United Nations-backed Race to Zero global campaign, an initiative to halve global emissions by 2030 and achieve net-zero carbon emissions by 2050. As part of this, BAT has committed itself to realigning its existing carbon neutral targets, which were previously based on the 2015 Paris Agreement to limit the global average temperature rise to 2 degrees Celsius, to match the new consensus that the temperature rise should be limited 1.5 degrees Celsius to avoid severe climate change effects on people, wildlife and ecosystems.

    In 2020, BAT’s emissions totaled to 6.11 million tons of CO2 equivalent (CO2e), according to the company’s ESG Report 2021. The company’s own operations, however, contributed a mere 9 percent of its total 2020 emissions footprint. The remainder were “Scope 3” emissions—indirect emissions from resources that the organization does not own.

    Seventy-six percent of Scope 3 emissions came from the company’s upstream value chain, including 32 percent from tobacco growing (fertilizers, curing barns, farm machinery, etc.) and 22 percent from materials. Another 15 percent emerged from BAT’s downstream value chain, 10 percent of which were produced by the use of sold products and 5 percent by their end-of-life treatment.

    BAT is tackling the emissions of both its own operations and its wider value chain. To decarbonize its operations, the company continues to expand its renewable energy sourcing. Across its manufacturing sites, it is identifying opportunities to reduce CO2e emissions through decarbonization assessments and value stream mapping. Internal carbon pricing has been incorporated into the company’s business plans since 2021 to ensure that the impact on environmental performance and targets is formally considered and quantified.

    A Cure for Curing

    By generating solar power on-site and purchasing green electricity, BAT aims to expand its number of carbon neutral sites. Of BAT’s 75 manufacturing facilities, 32 were sourcing 100 percent renewable electricity by the end of last year while 19 sites were producing renewable energy on the spot. Combined, the company says, these measures have reduced CO2 emissions to 42.7 percent of CO2e from its 2017 baseline. Renewable sources currently account for 28.6 percent of BAT’s total energy consumption. The company aims to achieve 100 percent by 2030.

    Reducing emissions in its tobacco supply chain, where about a third of BAT’s Scope 3 carbon emissions are generated, is a tougher nut to crack. Most of these emissions come from tobacco curing. Although more than 80 percent of BAT’s annual leaf volumes are cured using renewable fuels, sustainable wood, biomass or sun curing, the problem of emissions persists.

    The company sources approximately 61 percent of its tobacco leaf from its own operations in 18 countries, which contract directly with more than 75,000 farmers. The company’s remaining leaf comes from third-party suppliers in 26 countries that contract with over 264,000 farmers.

    In several countries, BAT has introduced fuel-efficient curing technologies, among them new types of curing barns that enable at least a 30 percent reduction in fuel use and a 14 percent reduction in electricity use. For the tobacco volumes it purchases, the company aims to eliminate the use of coal as a curing fuel. Coal-cured leaf presently accounts for 10 percent of the tobacco that BAT sources through third-party suppliers.

    To further determine the best combination of curing technologies and fuel types for reducing emissions, the company started trials in six countries in 2021. Its global leaf agronomy center in Brazil is identifying startups to help develop new technologies and practices that support carbon-smart farming.

    Planting trees and cover crops and practicing conservation tillage not only keep the soil covered and store carbon but they may also increase water retention capacity, improving drainage and making the soil more fertile, which in turn will lead to increased yields and better quality crops. BAT is currently working with a specialist consultancy to validate its approach and verify the results. The company started testing its carbon-smart farming program with 35 farmers in Brazil last year and intends to expand the pilot to Bangladesh, Mexico and Pakistan in 2022.

    Making Products More Sustainable

    Product materials account for around 59 percent of BAT’s Scope 3 emissions, 15 percent of which are generated by the company’s 30 largest direct suppliers across more than 100 sites. An assessment showed that most suppliers were only in the early stages of decarbonization. To enable suppliers to align with its net zero target, BAT provides support and technical assistance and continues to track progress.

    To include end products in its sustainability ambitions, BAT has implemented a company-wide circular economy. Through life-cycle analysis across its product categories, the company has identified key areas that can contribute to reducing Scope 3 emissions, including the optimization of product design and shipping goods by sea instead of air where possible. Underlining its environmental commitment, BAT in 2021 announced that its Vuse e-cigarette had become the first global carbon neutral vape brand.

  • BAT Ukraine Resumes Pryluky Operation

    BAT Ukraine Resumes Pryluky Operation

    Photo: Igor

    BAT Ukraine has resumed manufacturing operations at the Pryluky tobacco factory in Ukraine as of April 25, reports InterFax Ukraine.

    The company has reportedly decided to resume manufacturing at the factory in phases after making a thorough risk and threat analysis.

    The operations at the Pryluky factory comply with all applicable security and safety requirements, curfew and other restrictions proper to martial law, according to BAT.

    BAT Ukraine is monitoring the security and safety situation in Pryluky and the Chernihiv region and plans to adapt activities as the situation changes.

  • Heading for the Exit

    Heading for the Exit

    Photo: Matvey Salivanchuk

    Following Russia’s invasion of Ukraine, tobacco companies to retreat from one of the world’s top cigarette markets.

    By Stefanie Rossel

    Amid growing pressure, the four leading international tobacco manufacturers have joined the exodus of U.S. and European companies that has followed Russia’s invasion of Ukraine. In early March, after the United States, the European Union and Great Britain imposed economic sanctions, all major cigarette makers announced that they would suspend operations or pull out of Russia altogether—although some did so less enthusiastically than others.

    After initially announcing it would merely suspend its planned capital investments in Russia, BAT quickly made a U-turn, signaling a far greater retreat. On March 11, the company announced that its ownership of the business in Russia was no longer sustainable in the current environment, which it described as “highly complex, exceptionally fast-moving and volatile.” BAT is in advanced talks to transfer its Russian business to the SNS group of companies, its distributor in the country since 1993. According to SNS, the level of production and the supply and distribution chain would be maintained with a transfer. As a result of the withdrawal, BAT reduced its annual revenue growth outlook to between 2 percent and 4 percent from the 3 percent to 5 percent announced in February.

    BAT’s move came a day after a Russian government commission approved the first step toward nationalizing the assets of departing foreign companies. On March 10, Russia’s economic development ministry published a draft bill that would give state-owned Vnesheconombank and the state export guarantee agency the right to seize the property of foreign firms that left Russian markets of their own accord. The proposed law would treat a corporate decision to exit the business as a criminal bankruptcy and empower authorities to initiate criminal justice proceedings against local management, BAT Chief Marketing Officer Kingsley Wheaton told Reuters in an interview.

    After announcing plans to scale down its operations in Russia on March 9, Philip Morris International in late March specified the concrete steps it would take, saying it was working on options to exit the Russian market “in an orderly manner.” The company stated that it had discontinued some of its cigarette brands offered in the market and suspended its marketing activities. Furthermore, it had canceled all product launches planned for this year in Russia, including the introduction of its new tobacco-heating product (THP), IQOS Iluma, and its plans to manufacture more than 20 billion Terea sticks, the consumables for IQOS Iluma. Production of the latter would have involved an ongoing investment of $150 million, which the company also canceled.

    JTI, meanwhile, limited its withdrawal from Russia to a suspension of all new investments and marketing activities along with the launch of its most recent THP, Ploom X.

    Imperial Brands, which has a relatively small footprint in Russia, announced on March 15 that it had started negotiations with a local third party about a transfer of its Russian assets of operations. “We believe that, in the current circumstances, an orderly transfer of our business as a going concern would be in the best interests of our Russian colleagues,” Imperial Brands wrote in a statement.

    In addition to their actions in Russia, all four cigarette manufacturers temporarily closed their production sites in Ukraine to protect their workforce and have pledged to continue paying the salaries of employees in the affected countries.

    The decision to leave Russia not only has financial consequences, but it also presents practical challenges. (Photo: Tobacco Reporter archive)

    Between a Rock and a Hard Place

    In deciding their course of action, cigarette manufacturers faced a dilemma of choosing either to leave and protect their reputations or to stay and continue to benefit from the world’s fourth-largest tobacco market.

    The decision to leave not only has financial consequences, but it also presents practical challenges, according to Jon Fell, partner at Ash Park Capital. “It’s one thing to say, ‘we’re no longer going to send our luxury handbags or fashionable training shoes to Russia,’ but if, in addition to factories or distribution centers, you have hundreds or thousands of employees in the country—who up until now have been seen as an integral part of your international company—then you have to take difficult and complex decisions, and there’s no obvious easy, right answer,” he says.

    “Sorting the mess out takes time, and you can’t just abandon employees,” adds Fell. “I don’t think the approach of the tobacco industry overall is very different to that of other consumer packaged goods companies, quite a few of whom are continuing to operate in Russia right now—and drawing criticism because of that.”

    Russian cigarette makers sold 206 billion cigarettes with an estimated value of $717 billion in 2020, according to Euromonitor International. The market has been declining at a 6 percent compound annual rate over the past 10 years and almost 7 percent over the past five years.

    At the same time, the country has developed into a promising market for THPs, which, according to Moningstar, accounted for 11 percent of the total tobacco market in 2021, making the country one of the largest markets for these products outside of Asia.

    With a volume share of 38 percent in 2021, JTI has the greatest exposure to Russia of the tobacco multinationals, according to Euromonitor. The company, which in 2018 acquired Donskoy Tabak, has four factories and 4,000 employees in the country. It has invested over $4.6 billion in the past 20 years. In 2020, its tax payments accounted for 1.4 percent of Russia’s state budget. Russia represented almost 16 percent of group volume in 2021, according to Morningstar.

    It’s one thing to say, ‘we’re no longer going to send our luxury handbags or fashionable training shoes to Russia,’ but if, in addition to factories or distribution centers, you have hundreds or thousands of employees in the country, then there’s no obvious easy, right answer.

    Costly Exits

    For PMI, Russia accounted for almost 10 percent of cigarette and THP unit shipment volume and around 6 percent of its total net revenues in 2021. With a market share of 26 percent, the company has three factories, more than 100 sales outlets and approximately 4,100 employees in the country. Ukraine, where PMI runs a factory in Kharkiv with around 1,300 employees, represents about 13 percent of PMI’s regional volume and contributed almost 2 percent to PMI’s total net revenues in 2021.

    Morningstar expects PMI’s tobacco volume from Eastern Europe to decline by 45 percent in 2022 with a slow recovery thereafter as the collapse of the ruble is likely to create translational foreign exchange pressure.

    Both Russia and Ukraine are important markets for IQOS, accounting for about 23 percent of PMI’s THP sales. PMI’s shipments of THP consumables in Russia increased from 13.6 billion units to 16.3 billion sticks in 2021 while shipments of cigarettes continued to fall. Considering Russia’s worsening economic outlook in the wake of international sanctions, however, a J.P. Morgan analyst doubted that PMI would still be able to achieve its next-generation product growth targets. Morningstar assumes that PMI’s write-down in case of a market exit could be approximately $7 billion, corresponding to 5 percent of the company’s market capitalization.

    Ukraine and Russia combined accounted for 3 percent of BAT’s group revenue in 2021 and a slightly lower proportion of adjusted profit, the company said on its website. Morningstar estimates that the bulk of net revenue from these two countries, 2.5 percent, was generated by Russia, where BAT, according to Euromonitor, held 25 percent of the market in 2021. Employing some 2,500 people in Russia, BAT has a factory in St. Petersburg and 75 regional offices. Since the company entered the market in 1991, it has invested more than $1 billion in Russia. Morningstar reckons that the value of BAT’s operations will depreciate by around $2.2 billion, or about 2.4 percent of its market capitalization, as a result of its withdrawal from Russia.

    Among the four players, Imperial Brands is a distant fourth, holding 8 percent of the Russian cigarette market. It operates a production site in Volgograd and has a workforce of 1,000. In 2021, the company said, Ukraine and Russia represented in total around 2 percent of net revenues and 0.5 percent of adjusted profits. Due to the limited profit contribution of the two markets, Imperial Brands explained it expected “a relatively small impact” on its constant currency adjusted profit.

     

    Seeking a Backdoor

    How the multinationals’ retreat will impact Russia’s illicit cigarette market is anyone’s guess. “It’s very hard to know how demand and supply of tobacco products will evolve in Russia given all that’s going on with sanctions, ownership of the industry and, presumably, local purchasing power,” says Fell. “I would certainly think that an increase in the size of the illicit market is a risk, and that’s also going to depend on how long this situation lasts.” Illegal cigarette sales represented 10.7 percent of the total Russian tobacco market in 2021, up from 4.6 percent in 2017, according to Statista.

    Much will depend on how long the conflict continues. Considering the large amounts invested in Russia over the past 20 years, it’s safe to assume that cigarette manufacturers will do their best to minimize their losses. The companies have built strong positions in the Russian market, and there is demand for their products.

    “I’d be surprised if any of the companies—not just the tobacco manufacturers—now exiting Russia are doing so in a way that would prevent their going back in the future, assuming that the war stops at some point, relations are normalized and reentry becomes conceivable,” says Fell. “But arranging that in a way which allows you to say you have exited the country for the time being is no doubt very tricky and is likely to be contributing to decisions taking some time to reach and to be implemented.”

  • BAT to Upgrade Kanfanar Factory

    BAT to Upgrade Kanfanar Factory

    Photo: burnel11

    British American Tobacco is investing more than €80 million ($87 million) to upgrade its cigarette factory in Kanfanar, Croatia, to make new categories of tobacco products, reports SeeNews, citing Croatian prime minister Andrej Plenkovic.

    BAT acquired the cigarette factory on the Istria peninsula in 2015 when it took over Tvornica Duhana Rovinj for more than €500 million. Under the deal, BAT was obliged to maintain production at the factory in Kanfanar for at least five years.

    In September 2020, Plenkovic said the government was in talks with BAT on the company’s plans to relocate production from the factory to another country, following media reports that BAT might leave due to worsened business conditions in Croatia.

    In May 2021, BAT said it would start producing heated tobacco products in Kanfanar.

  • BAT invests in Bangladesh

    BAT invests in Bangladesh

    Photo: Piotr Pawinski

    British American Tobacco will invest BDT5.74 billion ($66.55 million) in its Savar, Bangladesh, operations to cater to export opportunities and create contingency capacity, reports The Daily Star.

    The announcement follows a BDT5.14 billion investment in 2021 to increase the facility’s production capacity.

    “With an eye on future exports, the board has approved an investment of about Tk 574 crore to further expand the Savar factory’s production capacity,” said Sheikh Shabab Ahmed, head of external affairs at BATBC.

    “We believe with the improved capacity we will be equipped for any future demand,” he added.

    In 2021, the company’s net turnover rose 24 percent to BDT74.87 billion, up from BDT60.29 billion the previous year, according to its annual report. In the same period, BAT Bangladesh logged profits of BDT14.96 billion, up 37.5 percent over that posted in 2020.

    BATBC has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, a green leaf re-drying plant in Manikganj, and a number of leaf and sales offices throughout the country.

  • The Virtuous Weed

    The Virtuous Weed

    Artwork: Dan Kurtz

    When tobacco heals instead of hurts

    By Taco Tuinstra

    The health consequences of tobacco use have been well documented. According to the World Health Organization, more than 8 million people worldwide succumb to tobacco-related illnesses, such as lung cancer, heart disease and chronic obstructive pulmonary disease, every year. For every person who dies due to tobacco, at least 30 people live with a serious tobacco-related illness, according to a 2019 policy brief by Tobacconomics.

    Tobacco also carries a significant economic toll. A report prepared by the World Bank Group Global Tobacco Program expected the worldwide economic cost of smoking to reach $1.4 trillion in 2017, equivalent to 1.8 percent of the world’s gross domestic product that year. Little wonder, then, that many view the tobacco plant as evil.

    Yet there is another, decidedly more benign, side to the Wicked Weed. When dried, set on fire and inhaled, the tobacco plant wreaks havoc; when deployed as a “green bioreactor,” the golden leaf has the potential to help address some of the world’s most vexing public health challenges, including, ironically, certain respiratory afflictions.

    Baiya Phytopharm is currently developing a new generation of its vaccine for the omicron variant of Covid-19 and expects to conduct Phase 1 trials in April 2022.
    (Photo: Baiya Phytopharm).

    Among the most striking examples of tobacco’s potential to heal rather than hurt are recent endeavors to develop an inoculation against the novel coronavirus. In February, Health Canada approved Covifenz, a tobacco plant-based Covid-19 vaccination developed by pharmaceutical giant GlaxoSmithKline and Medicago, a biopharmaceutical company backed by Philip Morris International. According to Health Canada, Covifenz is the world’s first vaccine approved for human use that utilizes a plant-based protein technology.

    As it turns out, plants—and especially tobacco plants (see sidebar)—lend themselves exceptionally well to developing pharmaceutical compounds. In many ways, they are better suited to the task than the man-made bioreactors used in traditional vaccine development.

    To create a vaccine, scientists must produce antigens—molecules that trigger an immune response to a specific virus or bacteria. Antigens for conventional vaccines are made by infecting cells from insects, monkeys, hamsters or other sources in the laboratory with a virus or a bit of viral genetic code that tricks the cells into making copies of the virus or antigen. The cells incubate in bioreactors for extended periods of time and then undergo a complex purification process before being packaged into vials.

    Bioreactors are expensive, however, and their operation requires trained personnel. They are also susceptible to contamination, forcing vaccine developers to keep bioreactors growing different types of antigens far apart and under sterile conditions.

    Dahlia Garwe

    Plants are natural bioreactors, according to Dahlia Garwe, the former CEO of the Kutsaga Tobacco Research Station in Zimbabwe. “They are able to perform eukaryotic post-translational modifications that are often essential for biological activity of many mammalian proteins,” she explains. When infected with DNA from Covid-19 or other viruses, plant cells will make millions of copies of virus-like particles that can serve as antigens without being infectious.

    Using plants instead of mechanical bioreactors offers many benefits, notes Garwe. Plants are cheap to grow, easy to manipulate and resistant to contaminations that could present problems for humans. “Green bioreactors do not suffer the same risk of pathogen contamination as seen in mammalian cell culture as there are no known cross-kingdom pathogens,” she says.

    With light as their primary energy source, plants are less expensive to work with than traditional cell culture systems, allowing for inexpensive and nearly unlimited scalability. Because plant systems are robust and inert, they are also easier to handle and purify than other systems.

    Medicago is not the only company that has grasped the promise of plants in the development of vaccines and therapeutics. At least three other organizations are using Nicotiana benthamiana, a close relative of the tobacco plant used in cigarettes, to develop Covid-19 vaccines. In December 2020, the U.S. Food and Drug Administration approved an investigational new drug application for a Covid-19 vaccine by BAT subsidiary Kentucky Bioprocessing (KBP, now part of KBio). The company is currently conducting Phase I clinical trials, which are the first steps in testing the safety and side effects of a pharmaceutical in humans.

    According to BAT, plant-based vaccines have several advantages over serums developed with conventional technologies, including speed and thermostability. Whereas traditional methods can take months to yield the desired vaccine ingredients, KBP’s tobacco plants do so within six weeks. And unlike some of the existing Covid-19 vaccines, KBP’s vaccine candidate has the potential to be stable at room temperature, an important benefit, especially for public health networks in countries with warm climates and few refrigerated trucks and warehouses.

    Fearing supply constraints and “vaccine nationalism” at the start of the pandemic, scientists in Thailand have joined the race as well. Baiya Phytopharm, a plant-produced biologics company, is working with tobacco in part because that crop can be easily and inexpensively cultivated domestically, thus reducing Thailand’s reliance on foreign-made vaccines. According to the Bangkok Post, Thailand has more than 10,000 tobacco growers.

    Waranyoo Phoolcharoen

    In an email exchange, Baiya Phytopharm co-founder Waranyoo Phoolcharoen told Tobacco Reporter that the company had finished Phase 1 clinical trials and was happy with the data. Baiya Phytopharm is currently developing a new generation of its vaccine for the omicron variant of Covid-19 and expects to conduct Phase 1 trials this month (April). If the vaccine candidate does well in subsequent trials, it could be available in Thailand by the end of the year, according to Phoolcharoen.

    Meanwhile, Akdeniz University in Turkey is using a protein produced by tobacco plants to develop a Covid-19 vaccine. Its technology is based on an angiotensin-converting enzyme 2 and can be administered as an injection or through a spray. According to an April 2021 report in Hurriyet Daily News, tests on mice have demonstrated a high level of inhibition of the Covid-19 virus from entering the cell. At the time of publication, Akdeniz University was seeking funding to conduct clinical trials in humans.

    In addition to Covid-19, scientists have sought to tackle many other diseases with the help of tobacco. In response to concerns about bioterrorism following the September 11 attacks in the United States, researchers at the University of Central Florida used tobacco plants to create a protective antigen against anthrax. According to an article published in Environmental Health Perspectives, mice immunized with the agent survived anthrax injections of 1.5 times the deadly dose.

    In 2014, KBP, working in cooperation with the U.S. Biomedical Advanced Research and Development Authority, developed, tested and used ZMapp, an antibody cocktail to treat infection from the Ebola virus, which was raging in west Africa at the time. In under six weeks, KBP completed cGMP manufacturing of each of the three monoclonal antibodies comprising the ZMapp cocktail, which received temporary emergency authorization from the FDA.

    Pushing the envelope further still, Collplant of Israel is using tobacco to generate human tissue and organs. Collplant’s technology allows for the production of large quantities of medical grade human collagen, which is a primary building block for the human body and essential for tissue repair. Physicians use collagen products to treat chronic wounds, burns and other afflictions. Deriving collagen from tobacco rather than from traditional sources, such as cadavers, cows or pigs, offers several advantages, including stable fibrillates, pure molecular structures and no immunogenic responses, according to Collplant.

    While the endeavors described above are only a sample of the many ways in which tobacco is deployed to produce pharmaceutical and other useful compounds, they vividly illustrate the potential of the golden leaf to help solve rather than create problems—a side that is often overlooked due to the health toll extracted by smoking.

    The Green Bioreactor

    While despised in the court of public opinion, tobacco is highly valued among plant scientists.

    For starters, the species has good physiology for research. “Seeds are easily sterilized, and germination is very quick, so generating experimental material is easy,” says David Norman, senior scientist at Demeetra AgBio, a company that is using gene editing for crop trait development and that also works with tobacco (see “Genetic Scissors,” Tobacco Reporter, August 2021). “Tobacco grows fairly fast compared to many plants, to where flowering and mature seeds can be attained in just a couple months.”

    The soft tobacco leaf is ideal for transfection, allowing researchers to easily introduce DNA or RNA into its cells. What’s more, regeneration mechanisms from callus in tobacco are extremely efficient. In addition to allowing genetic modifications on leaf material, tobacco is also easily propagated as a cell culture or protoplast culture. 

    The fact that tobacco is neither a food nor a feed crop makes it even more attractive as a plant for conducting research, according to Dahlia Garwe, the former CEO of the Kutsaga Tobacco Research Station in Zimbabwe. Using tobacco, she says, reduces the likelihood of transgenic material contaminating food or feed supply chains—an important consideration when many consumers remain wary of genetically manipulated foods.

    Tobacco is also well understood from a genetic engineering and molecular biology standpoint; it has been more characterized than any other plant system. Scientists have been researching and genetically modifying tobacco since the early 20th century.

    Meanwhile, biochemists have been able to produce many recombinant proteins in tobacco, with the plants serving as bioreactors for largescale production of pharmaceutical and industrial compounds. “Tobacco can easily take in DNA to produce these compounds when injected into the leaf or through vacuum infiltration of whole plants,” says Norman.

    The vacuum infiltration method, in particular, can be scaled up to infect many plants at one time, according to Norman. “After infiltration, tobacco transiently expresses the DNA introduced for a short while and makes the protein of interest in the leaves.

    “While the protein production in plants may not be that impressive on a per plant scale, up to a few percent depending on the protein of interest, you have to consider the yield per acre for tobacco. On an average acre of tobacco, the yield can be several tons of leaf material. With that scale of leaf material per acre, suddenly those small protein yields add up to being significant and potentially economically viable.”–T.T.

    The Plant-Based Vaccine: A Late Bloomer?

    In February, Medicago’s Covifenz Covid-19 vaccine received the green light from Health Canada, making it the world’s first plant-based vaccine approved for human use. Considering how long scientists have known about the potential of plant-based vaccines—the proof of concept dates back some 30 years—it may seem surprising that the first regulatory approval for such a product was granted only this year.

    While the U.S. Department of Agriculture in 2006 gave the thumbs-up to a plant-derived vaccine to inoculate chickens against the lethal Newcastle disease, most of the projects targeted at human vaccines never even made it to end-stage clinical trials. The FDA did approve Protalix’s plant-based drug to treat Gaucher’s disease in humans in 2012 and in 2014 gave emergency authorization to ZMapp, a plant-based biological medicine manufactured by KBP (now part of KBio) to treat Ebola, but the first was not a vaccine, and the second was approved under special conditions.

    Dahlia Garwe, the former CEO of the Kutsaga Tobacco Research Board in Zimbabwe, suspects the “delay” in approving plant-based vaccines is due to regulatory issues and public perceptions of genetically modified organisms (GMOs). “Most vaccines produced in plants would most likely be classified as GMOs, which automatically makes them ‘undesirables,’” she ventures.

    Kathleen Hefferon, who teaches microbiology at Cornell University, acknowledges that public perception may be part of the problem but believes that many consumers would accept plant-made vaccines just as they have accepted vaccines produced in eggs and mammalian cells. “They are familiar with the GM technology when used for medical purposes,” she says. “It is when it comes to genetic modification in food products that some people seem to raise concerns.”

    Hefferon suspects that the absence of a clear regulatory path represents the greatest obstacle as it may have made pharmaceutical companies wary of investing in this technology. The carrot suspension cell culture that Protalix used for its Gaucher’s disease drug somewhat resembles Chinese hamster ovary cell culture, she notes. “That made it a little easier for regulators.”

    Patrick Doyle, CEO of KBio Holdings, a company set up by BAT to accelerate the development and production of novel treatments with plant-based technology, says it is important to remember that in a normal R&D cycle, medicines and vaccines on average take over 10 years, even when using a proven technology or approach.

    “In fact, as a result of the global health crisis presented by Covid[-19], development, regulatory review and approval timelines were accelerated to support the delivery of much-needed vaccines,” he says. “Before gaining approval for any vaccine, manufacturers must generate sufficient data to demonstrate the efficacy and safety of the candidate and technology, which takes time. For example, the mRNA platform, first discovered in the early 1960s, was a genetic technology that had long held huge promise but only received the first FDA [Food and Drug Administration] emergency use authorization for the prevention of Covid-19 disease in individuals 16 years of age and older on  Dec. 20.”

    According to Doyle, the positive data generated and the subsequent approval of Medicago’s vaccine is both a positive in terms of creating another approved treatment option for Covid-19 and reinforcing the potential of plant-based vaccines.

    Hefferon agrees that Medicago’s success could set the stage for plant-made pharmaceutical commercialization in future years, and her optimism appears to be shared by others. Research and Markets expects the value of the global plant-based vaccines market to reach $2.62 billion by 2028—more than double the 2021 figure. Tobacco companies seem well attuned to the potential as evidenced by PMI’s investment in Medicago and by BAT’s creation of KBio. Doyle says KBio will explore new opportunities to develop its plant-based production system, which has the potential to offer greater speed, thermostability and scale-up opportunity and.

    Hefferon says she’s very happy about the growing momentum for plant-based vaccines. “Too bad it took a pandemic to make it happen.” –T.T.

    Uphill Battle: Tobacco-Backed Vaccines Continue To Face Skepticism From Health Authorities

    While tobacco plants lend themselves exceptionally well to the creation of pharmaceutical compounds, vaccinations and treatments developed by tobacco-backed organizations still face an uphill battle as demonstrated by recent World Health Organization actions.

    During a March 16 media briefing, the WHO’s assistant director-general for drug access, vaccines and pharmaceuticals, Mariangela Simao, said the global health body had paused the process for pre-qualification of Medicago’s new Covifenz Covid-19 shot due to the biopharmaceutical firm’s link to Philip Morris International, which owns about one-third of the Canadian company.

    “The WHO and the U.N. have a very strict policy regarding engagement with the tobacco and arms [industries], so it’s very likely it won’t be accepted for emergency use listing,” said Simao. The WHO persists in its opposition despite Health Canada’s February approval of Covifenz for adults between the ages of 18 and 64.

    In a statement published by the CBC, Medicago said it believes authorization decisions should be based on the quality, efficiency and safety of the vaccine, not who owns shares in the manufacturer.

    “It is our understanding that the WHO has made a decision to pause the approval of the vaccine and that this decision is related to Medicago’s minority shareholder and not to the efficacy and safety of the vaccine, which was demonstrated with the approval by Health Canada,” the statement reads.

    Derek Yach, a global health consultant, was aghast by the WHO’s suggestion that it might reject Medicago’s vaccine based on the company’s relationship with PMI.

    “‘Pikuach nefesh’ is the ethical principle in Jewish law that the preservation of human life overrides virtually any other religious rule,” he said. “Most other religions support a variant of this. WHO violates this ethical principle when it denies people access to a lifesaving vaccine.”

    If the WHO follows through, the vaccine would be the first Western-manufactured Covid-19 shot to be rejected by the global health body, according to Bloomberg. —T.T.

  • BAT in Talks to Transfer Russian Business

    BAT in Talks to Transfer Russian Business

    Photo: scaliger

    BAT is in advanced talks to transfer its Russian business to Russia’s SNS Group of Companies after Moscow suggested it could nationalize assets of foreign firms that left the country, reports Reuters.

    BAT controls just under 25 percent of the Russian tobacco market.

    “The process of transferring the management of BAT business in Russia to SNS GC is well underway at remarkable speed,” said an SNS spokesperson.

    BAT declined to comment but said last week that it was looking for parties interested in the transfer of the Russian business. Kingsley Wheaton, BAT’s chief marketing officer, stated that BAT’s distributor could be interested in a transfer, adding that exiting the business or stopping sales or manufacturing would be seen as a criminal bankruptcy by Russia and BAT would face legal consequences.

    The level of production and the supply and distribution chain will be maintained with a transfer, according to the SNS spokesperson. Whether BAT will pull out completely or continue to supply SNS with raw materials or manufacturing support is unclear.

  • Bat Appoints New Digital and Information Director

    Bat Appoints New Digital and Information Director

    Photo: BAT

    Marina Bellini, director of digital and information, will step down from the management board on March 31, 2022, and will leave BAT on July 31, 2022, to pursue new opportunities.

    Javed Iqbal, currently area director of Middle East South Asia, will succeed Bellini as director of digital and information and will be appointed to the management board effective April 1, 2022.

    “I would like to thank Marina for the significant contribution she has made to our digital and information function,” said BAT CEO Jack Bowles in a statement. “She has been key in supporting the group’s transformation by unlocking commercial value across the global organization and connecting information and data to create a digitally agile business.

    “Marina has also successfully established a strong pipeline of digital expertise through talent development and embedding digital as a key enabler for our ‘A Better Tomorrow’ strategy.

    “I am delighted to welcome Javed to the management board. As BAT enters a phase of accelerated delivery, he is very well positioned to lead the digital and information function. He has extensive experience in leading strategic change across multiple geographies, including systems and process transformation.

    “His finance and technology background and extensive commercial knowledge, supported by his appetite for change and capacity to build high-performing teams, will ensure the next chapter of our digital journey is in safe hands. I would like to wish him the very best in his new role.”

     

  • BAT Withdraws from Russia

    BAT Withdraws from Russia

    Photo: Anton Gvozdikov

    BAT is withdrawing from Russia, the company announced on its website.

    “Building on our announcement of 9th March 2022, we have now completed the review of our presence in Russia. The context is highly complex, exceptionally fast-moving and volatile,” the company said in a statement, referring to the Russian military invasion of Ukraine.

    “We have concluded that BAT’s ownership of the business in Russia is no longer sustainable in the current environment,” the company wrote.

    “Today, we have initiated the process to rapidly transfer our Russian business in full compliance with international and local laws. Beyond continuing to pay our 2,500 employees, we will do our utmost to safeguard their future employment.

    “Upon completion, BAT will no longer have a presence in Russia.

    “Following our decision today, and in light of the continuing uncertainty related to Ukraine and Russia and the possible indirect impact on the rest of the group, we consider it prudent to revise our guidance for full-year 2022. We now expect constant currency group revenue growth of 2 percent to 4 percent and mid-single figure constant currency adjusted diluted EPS [earnings per share] growth. In 2021, Ukraine and Russia accounted for 3 percent of group revenue and a slightly lower proportion of adjusted profit from operations.”

    BAT faced heavy criticism for an earlier decision to continue operating in Russia. “If you are a member of the board of British American Tobacco, courting popularity was probably never a top personal priority. Even so, the people overseeing a large and widely held FTSE-100 company might still feel obliged to explain why, amid the broad boycott of Russia by multinationals, they think its fine to carry on business in the country roughly as normal,” wrote Nils Pratley in The Guardian.

    Earlier, Philip Morris International, Japan Tobacco International and Imperial Brands announced the suspension of their operations in Russia.