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Philip Morris (PM) Boosts Beyond Nicotine Options With OtiTopic
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Philip Morris International Inc. (PM - Free Report) has been firm on its ambitious plans to expand "Beyond Nicotine" products. Along these lines, the company announced the acquisition of OtiTopic, a respiratory drug development company based in the United States. OtiTopic is engaged in the development of late-stage inhalable acetylsalicylic acid (“ASA”) treatment for acute myocardial infarction or heart attack. This revolutionary treatment offered by OtiTopic is currently going through clinical trials and is yet to be approved by the FDA. Let’s discuss this latest development and how it is likely to benefit the company.
Efforts to Expand Inhaled Therapeutics
Philip Morris is striving to achieve world-class expertise, scientific know-how as well as capabilities to expand offerings in the inhaled therapeutics and respiratory drug delivery platform. Such efforts are part of the company’s Beyond Nicotine strategy, which was announced in February 2021. The company expects to generate at least $1 billion in annual net revenues from Beyond Nicotine products by 2025.
The acquisition of OtiTopic is expected to further strengthen the company’s ability in research and development of aerosolization and inhalable devices. Founded in 2012, OtiTopic is an innovative pharmaceutical start-up company and holds several key patents as well as differentiated intellectual property. OtiTopic is carrying out the assessment of its patented, dry powder inhalation of ASA — ASPRIHALE. The drug is delivered through a unique self-administered aerosol. ASPRIHALE is expected to move from clinical trials and file for approval with the FDA in 2022.
In clinical trials, the treatment has revealed unprecedented speed, showing inhibition of platelet aggregation in two minutes compared with 20 minutes for coated chewable aspirin. It has significant potential for improving chances of survival of patients at risk of heart attacks. If approved, the treatment can help address medical requirements of millions of people at intermediate to high risk for myocardial infarction, where every second counts. The inhalable version of ASA is expected to have faster effects on patients than oral ASA. Post approval, Philip Morris expects to leverage its expertise and the capabilities of other companies in the Beyond Nicotine portfolio for the commercialization of ASPRIHALE.
Clearly, Philip Morris is undertaking every effort to transform itself into a company that puts health and wellbeing in the forefront and have a positive impact on the society. The company has been directing its resources for developing products focused on inhaled therapeutics for medical and wellness applications. It has invested more than $8 billion in research and development, including pre-clinical systems toxicology and clinical capabilities, behavioral research as well as post-market studies.
In prior efforts to boost Beyond Nicotine portfolio, Philip Morris entered into an agreement to acquire Fertin Pharma A/S in a transaction worth approximately $820 million. Fertin Pharma is a leading manufacturer and developer of innovative pharmaceutical and well-being products that are based on oral and intra-oral delivery systems. The acquisition is expected to be completed in fourth-quarter 2021, by funding the same through existing cash.
The company has also been trying to acquire Vectura Group plc, a provider of innovative inhaled drug delivery solutions for treating diseases related to smoking. Per media sources, Philip Morris will be participating in a five-day auction this week for attaining the rights to buy Vectura.
Image Source: Zacks Investment Research
Wrapping Up
Philip Morris is undertaking prudent efforts to pace up consumers’ shift from cigarettes to reduced risk options as well as building a strong beyond nicotine business. We note that the company’s heated-tobacco product, IQOS, has been gaining immense popularity. As part of its transformation efforts, the company is committed toward expanding IQOS variants to more markets. Such efforts keep Philip Morris well placed for transforming into a majority smoke-free company by 2025.
Shares of this Zacks Rank #3 (Hold) company have moved up 2% in the past three months against the industry’s decline of 1.4%.
Image: Bigstock
Philip Morris (PM) Boosts Beyond Nicotine Options With OtiTopic
Philip Morris International Inc. (PM - Free Report) has been firm on its ambitious plans to expand "Beyond Nicotine" products. Along these lines, the company announced the acquisition of OtiTopic, a respiratory drug development company based in the United States. OtiTopic is engaged in the development of late-stage inhalable acetylsalicylic acid (“ASA”) treatment for acute myocardial infarction or heart attack. This revolutionary treatment offered by OtiTopic is currently going through clinical trials and is yet to be approved by the FDA. Let’s discuss this latest development and how it is likely to benefit the company.
Efforts to Expand Inhaled Therapeutics
Philip Morris is striving to achieve world-class expertise, scientific know-how as well as capabilities to expand offerings in the inhaled therapeutics and respiratory drug delivery platform. Such efforts are part of the company’s Beyond Nicotine strategy, which was announced in February 2021. The company expects to generate at least $1 billion in annual net revenues from Beyond Nicotine products by 2025.
The acquisition of OtiTopic is expected to further strengthen the company’s ability in research and development of aerosolization and inhalable devices. Founded in 2012, OtiTopic is an innovative pharmaceutical start-up company and holds several key patents as well as differentiated intellectual property. OtiTopic is carrying out the assessment of its patented, dry powder inhalation of ASA — ASPRIHALE. The drug is delivered through a unique self-administered aerosol. ASPRIHALE is expected to move from clinical trials and file for approval with the FDA in 2022.
In clinical trials, the treatment has revealed unprecedented speed, showing inhibition of platelet aggregation in two minutes compared with 20 minutes for coated chewable aspirin. It has significant potential for improving chances of survival of patients at risk of heart attacks. If approved, the treatment can help address medical requirements of millions of people at intermediate to high risk for myocardial infarction, where every second counts. The inhalable version of ASA is expected to have faster effects on patients than oral ASA. Post approval, Philip Morris expects to leverage its expertise and the capabilities of other companies in the Beyond Nicotine portfolio for the commercialization of ASPRIHALE.
Clearly, Philip Morris is undertaking every effort to transform itself into a company that puts health and wellbeing in the forefront and have a positive impact on the society. The company has been directing its resources for developing products focused on inhaled therapeutics for medical and wellness applications. It has invested more than $8 billion in research and development, including pre-clinical systems toxicology and clinical capabilities, behavioral research as well as post-market studies.
In prior efforts to boost Beyond Nicotine portfolio, Philip Morris entered into an agreement to acquire Fertin Pharma A/S in a transaction worth approximately $820 million. Fertin Pharma is a leading manufacturer and developer of innovative pharmaceutical and well-being products that are based on oral and intra-oral delivery systems. The acquisition is expected to be completed in fourth-quarter 2021, by funding the same through existing cash.
The company has also been trying to acquire Vectura Group plc, a provider of innovative inhaled drug delivery solutions for treating diseases related to smoking. Per media sources, Philip Morris will be participating in a five-day auction this week for attaining the rights to buy Vectura.
Image Source: Zacks Investment Research
Wrapping Up
Philip Morris is undertaking prudent efforts to pace up consumers’ shift from cigarettes to reduced risk options as well as building a strong beyond nicotine business. We note that the company’s heated-tobacco product, IQOS, has been gaining immense popularity. As part of its transformation efforts, the company is committed toward expanding IQOS variants to more markets. Such efforts keep Philip Morris well placed for transforming into a majority smoke-free company by 2025.
Shares of this Zacks Rank #3 (Hold) company have moved up 2% in the past three months against the industry’s decline of 1.4%.
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