Philip Morris, Marlboro owner, sells UK inhaler firm for $198 million after backlash over hypocrisy

Philip Morris International has sold Vectura Group just three years after purchasing the company.

The tobacco company behind Marlboro cigarettes has sold a UK-based inhaler firm at a significantly reduced price, citing what it describes as an "unwarranted" backlash.

Philip Morris International (PMI) has sold Vectura Group for £150m ($198m), just three years after purchasing the company in a deal valued at over £1bn.

The decision to acquire Vectura, a company that produces inhalers for lung conditions like asthma, was criticized as hypocritical.

However, PMI defended the acquisition as part of its broader strategy to shift away from cigarettes and focus on "smoke-free" alternatives, such as vaping.

On Wednesday, PMI announced the sale to electronics firm Molex Asia Holdings, stating it would free Vectura "from the unreasonable burden of external constraints and criticism related to our ownership."

The transaction, which is pending regulatory approval, includes an up-front payment of £150m and "potential deferred payments of up to £148m" if certain conditions are met.

PMI CEO Jacek Olczak emphasized the company's ongoing "commitment to driving innovation in this space over the long-term," indicating that PMI hasn't entirely moved away from the inhaler sector.

The purchase of Vectura was initially part of PMI's effort to move toward a "smoke-free world." PMI aims to have two-thirds of its revenue come from non-cigarette products by 2030.

Despite this, health organizations remain doubtful of PMI's intentions, given the billions it continues to earn from cigarette sales.

The company's latest financial report for the three months ending in June showed that over 60% of its $9.47bn (£7.19bn) revenue came from cigarette sales.

During that time, PMI held 23.6% of the global cigarette market by revenue.

This news coincides with the Labour government considering a potential outdoor smoking ban at pubs.