Biotech firm recommends tobacco giant’s offer

A takeover of Chippenham-based biotech firm Vectura by a subsidiary of tobacco giant Philip Morris has been recommended by its board.

PMI Global Services, a subsidiary of Philip Morris International, offered 165 pence per share for Vectura – exceeding an earlier bid by private equity firm Carlyle Group of 155 pence per share.

The Vectura board was advised by JP Morgan Cazenove and Rothschild & Co that the Philip Morris offer – which values Vectura at around £1.1 billion, was ‘fair and reasonable’.

The board has recommended shareholders accept the bid.

Vectura develops inhaled therapies for the treatment of respiratory diseases, including the asthma drug Flutiform.

The company, which is based on the Bumpers Farm industrial estate, is currently working with Inspira Pharmaceuticals, a new UK-based company focused on developing therapies for respiratory and infectious diseases, on developing an inhaled Covid treatment.