Google AI


Modern Australian

After buying health company Vectura, tobacco giant Philip Morris will profit from treating the illnesses its products create

  • Written by: Kristin Carson-Chahhoud, Associate Research Professor, University of South Australia
After buying health company Vectura, tobacco giant Philip Morris will profit from treating the illnesses its products create

Cigarettes are the only legal consumer product that kill up to half of their users when consumed exactly as the manufacturer intended. The diseases they cause cost Australia’s health system A$136.9 billion a year.

Philip Morris International (PMI) is one of the global leaders in the cigarette supply chain. But with steady declines in cigarette sales over the past 20 years, tobacco companies such as Philip Morris are now attempting to market themselves as health-care companies with visions for a “smoke-free future”.

One of the industry’s first moves was to manufacture non-cigarette nicotine products, such as nicotine replacement therapy to help people quit smoking.

In the latest move to diversify its portfolio, Philip Morris has acquired British health-care company Vectura Group Plc, at a cost of more than £1 billion (A$1.9 billion).

Vectura specialises in manufacturing inhalation products such as commonly used inhalers (or puffers) and nebulisers that help people with asthma and lung disease to breathe.

Read more: Big Tobacco's decisive defeat on plain packaging laws won't stop its war against public health

On August 12, the Vectura board announced it “unanimously recommended the PMI offer” to shareholders, with the decision based on price and access to resources.

The Vectura board noted:

[…] wider stakeholders could benefit from PMI’s significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.

On September 15, the deal became official. And so the problems begin.

Why Vectura?

In acquiring Vectura, Philip Morris will profit from treating the very illnesses its products cause, as nebulisers are commonly prescribed for patients with tobacco-related lung disease.

Blue-spotted 'V' Vectura logo on a smartphone and in the background.
The Vectura takeover cost Philip Morris more than £1 billion. Shutterstock

Philip Morris’s interest in the company is to help it generate “[…] at least $1 billion in annual net revenues from Beyond Nicotine sources in 2025”. In other words, Philip Morris plans to expand development of electronic cigarettes and start profiting from other inhaled devices.

This is despite there being limited evidence to support electronic cigarettes to help people quit smoking, but mounting evidence showing damaging health effects.

If Philip Morris really wants to move “beyond nicotine”, it should stop its aggressive promotion and sale of all tobacco products.

Why does it matter?

The consequences of Philip Morris’s acquisition of Vectura are far reaching, especially for the medical and research workforce fighting against respiratory disease. The Philip Morris takeover will have significant implications for the sector.

Many public health organisations, medical professional bodies, universities, individual health professionals and researchers cannot and will not work with tobacco companies or their affiliates. This is in line with the World Health Organization’s Framework Convention on Tobacco Control.

This means researchers who would have received support from Vectura, or used their products to pioneer the next generation of inhaler therapies, will no longer be able to do this.

There will be conflicts of interest prohibiting them from publishing their findings, collaborating on grants for new research, and presenting their work at conferences.

Read more: Medical journals refuse to publish tobacco-funded research

This has already begun to happen, with pharmaceutical industry conferences such as the Drug Delivery to the Lungs Conference terminating Vectura’s sponsorship, forcing the company’s representative to stand down from its committee, and barring them from participation.

Going forward, companies, health professionals and researchers now inadvertently linked to big tobacco through Vectura may be restricted from fully participating in the medical and scientific community. The European Respiratory Society, for example, excludes participation from anyone with links to the tobacco industry in the past ten years.

The Pharmaceutical Benefits Scheme (PBS) will need to consider if it’s appropriate for Australian taxpayers to subsidise inhaler devices licensed to Vectura or, more truthfully, to big tobacco.

Many doctors will be looking for alternative devices to prescribe for their patients that do not contribute to Philip Morris’s or Vectura’s profits.

Meanwhile, people with lung disease are also likely to be reluctant to use devices linked to big tobacco.

Older man sits on the edge of his bed, breathing through a nebuliser mask.
Vectura makes nebulisers which help people with asthma and lung disease to breathe. Shutterstock

But switching from one inhaler to another comes with consequences, such as lower adherence and new side effects, causing poorer clinical outcomes.

There are also concerns Philip Morris’s takeover of Vectura could be used to buy “a seat at the table” with health care policymakers and professionals, meaning they could have a say in the development of government policies.

The tobacco industry hasn’t changed

The tobacco industry remains one of the world’s most lethal. And Philip Morris continues to undermine public health messages, while trying to disguise itself as a health brand.

Yet Philip Morris’s company statutory regulations, which are the standards by which they undertake business, list evidence-based actions to reduce smoking rates – such as strong health warnings on packets and smoking bans in public places – as “risk factors” for its business.

Philip Morris’s move into the health sector, reinforced with the latest acquisition of Vectura, should be met with equal measures of disgust and contempt.

Authors: Kristin Carson-Chahhoud, Associate Research Professor, University of South Australia

Read more https://theconversation.com/after-buying-health-company-vectura-tobacco-giant-philip-morris-will-profit-from-treating-the-illnesses-its-products-create-168564

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...