Tobacco giant Philip Morris is reportedly considering selling off stakes in its pharmaceuticals sector in order to shift focus toward its burgeoning health-care and wellness division.
Philip Morris first entered the health care space in 2021 with the acquisition of British pharmaceutical company Vectura, followed by a string of other deals in the space with a total value of around $2 billion.
The acquisitions came as part of the company’s efforts to move away from tobacco and into smoke-free products and medications targeted toward respiratory diseases.
However, backlash over the deals trickled down into Philip Morris’ revenue expectations and resulted in a $680 million impairment charge, subsequently pushing the company to weigh the future of its pharmaceuticals arm.
