Controversially, the board of Vectura has unanimously recommended that shareholders accept Philip Morris International’s (PMI) GBP 1.1 billion takeover bid, reports The Guardian.

UK company Vectura specialises in the development of respiratory drugs and recently came under fire from health charities and public health experts for considering a takeover by tobacco company PMI. More than 20 health charities and health experts had appealed to the board urging them not to accept the GBP 1.1 billion takeover bid from the tobacco giant. PMI had raised its bid after US private equity group Carlyle also put in a takeover offer, reports The Guardian.
The Vectura board has said the PMI offer is “fair and reasonable” and the proposed takeover now lies in the hands of Vectura’s shareholders. PMI needs backing from holders of more than 50 per cent of the shares in order to be successful, according to The Guardian.
Health experts still hope a takeover by PMI can be avoided with Sarah Woolnough, chief executive of Asthma UK and the British Lung Foundation, saying: “PMI makes billions every year from making addictive products that can cause and exacerbate lung diseases. It’s totally absurd that PMI could make more money from providing treatments to the very people they have made ill in the first place. We will continue to oppose this dreadful proposed takeover until a final decision is made. We appeal now to Vectura’s shareholders to make the right and ethical choice and say no to big tobacco.”
Shadow health secretary, Jonathan Ashworth called on the government to get involved and block the potential takeover saying: “Philip Morris’s attempted takeover of a key player in lung health products beggars belief. It is bitterly disappointing that Vectura have so far failed to exercise duty of care to patients and scientists and reject this takeover by big tobacco.”
“A PMI takeover will ruin Vectura. Doctors will stop prescribing its products, scientists will leave rather than become pariahs and the academic collaboration necessary to drive its progress will cease,” added Nicholas Hopkinson, the chairman of ASH and professor of respiratory medicine at Imperial College in London.