British biotech launches staunch defence of tobacco takeover of Vectura
A British biotech helping Vectura to develop an inhalable Covid-19 drug is issuing a staunch defence of the company’s £1.1bn takeover by Philip Morris, claiming blocking the deal would leave the tobacco firm “no choice but to continue its bad practices”.
London start-up Inspira Pharmaceuticals emerged from stealth mode earlier this year to announce it had signed a deal with asthma technology firm Vectura. The pair are working on creating an inhalable version of Inspira’s Covid-19 treatment and are planning to kick off human trials for the treatment next year.
The show of support comes amid swirling questions over Vectura’s commercial partnerships and whether they could be put at risk by the expected takeover by Philip Morris, the world’s largest listed tobacco company and the maker of Marlboro cigarettes.
Health charities wrote to Vectura’s shareholders last week saying they should seize the opportunity to prove their commitment to ethical investing by blocking the takeover.
The letter said: “If PMI takes over Vectura, collaborators would have to choose between working with the tobacco industry – and thus be excluded from reputable medical and scientific communities – or dissolve their Vectura partnerships”.
Inspira co-founder and chief executive Rory McGoldrick said the company had been “initially concerned” by Vectura striking a “deal with the devil”. However, he said he was now supportive of the takeover.
Mr McGoldrick said: “A tobacco company moving into healthcare does not sound like an obvious marriage, but PMI has very publicly stated its strategy to move away from tobacco and we are assuming its intentions are genuine and should be welcomed.
“If we restrict historically unethical or damaging businesses from pivoting to new revenue streams then surely they have no choice but to continue their bad practices. Should we ban BP from investing in renewable energy or carbon capture research? What about casinos and liquor companies, should we restrict them from doing good too?”
The comments come just days after Philip Morris lashed out at opponents of the deal, claiming they were “settling old scores” against the tobacco industry.
He argued that charities who have criticised the takeover, including Asthma UK and the British Lung Foundation, were “not interested in progress”.
Earlier this week, 35 health charities, doctors and experts wrote to shareholders to warn over the damaging effect tobacco has on United Nations sustainable development goals.
In the letter, the group argued that shareholders should be critical of Philip Morris potentially profiting from treating the illnesses cigarettes cause.
Wiltshire-based Vectura specialises in inhaled medicines, including for diseases caused by smoking.
Philip Morris needs more than 50pc of shareholders to accept its 165p-per share offer by September 15. By Thursday, almost 30pc of shareholders had already accepted.
