Philip Morris International (PMI) has agreed to pay £852 million for Vectura Group, a UK-based producer of inhaled medicine delivery technologies.

Vectura shareholders will get 150p per share under the agreement, a 46 percent premium to the ex-dividend closing price of 103p per Vectura shares on May 25, 2021.

Vectura provides a variety of delivery systems, including single-dose and multi-dose platforms. It also offers both custom and off-the-shelf devices.

Vectura's product range includes 13 main inhaled and 11 non-inhaled medications that are distributed by worldwide pharmaceutical companies.

PMI will be able to leverage innovative technology and pharmaceutical development experience as a result of the Vectura purchase, allowing it to provide a variety of complicated inhaled medicines.

It will also aid in the creation and analysis of inhalable formulations and devices, drug/device combinations, and pharmaceutical management procedures and systems.

PMI will welcome Vectura's management team, which includes over 200 experts in formulation, devices, inhalation, regulatory, and clinical production.

For the previous fiscal year, the company generated net revenues of £191 million.

“PMI's Beyond Nicotine strategy, announced in February, articulates a clear ambition to leverage our expertise in inhalation and aerosolization into adjacent areas, such as respiratory drug delivery and self-care wellness, with a goal of reaching at least USD 1 billion in net revenues by 2025,” said PMI CEO Jacek Olcza.

“The acquisition of Vectura, which comes on the heels of our agreement to buy Fertin Pharma, will enable us to accelerate this journey by enhancing our capabilities in innovative inhaled and oral product formulations, allowing us to deliver long-term growth and returns.”

The deal is likely to close in the second half of this year, pending clearance by the applicable regulatory agencies and a shareholder vote.