Philip Morris International Inc. (PMI) (NYSE: PM) today announced its plans to dedicate a further USD 200 million to minority investments in early and growth-stage companies through PM Equity Partner (PMEP), PMI’s corporate venture capital arm. This allocation follows a 2016 commitment of USD 150 million that PMEP has since fully invested and is intended to support PMI’s smoke-free and beyond nicotine ambitions.
With this latest round of funding, PMI will leverage its strengths to help investee companies translate innovation into commercial success. Developed through PMI’s journey to replace cigarettes with smoke-free alternatives, the company’s best-in-class capabilities include advanced life science expertise, preclinical and clinical research, and aerosolization.
PMEP is focusing its investment activities on four distinct technology segments:
- Life science innovations, such as inhaled therapeutics and computational research methodologies.
- Industrial technologies like industrial robotics and automation, the internet of things, and technology-based process optimization.
- Product technologies, particularly those that relate to inhalation and aerosolization, chemical formulation, and bio-authentication.
- Consumer engagement technologies, such as user identification and age authentication, innovative customer care, and experience management.
Emmanuel Babeau, PMI’s Chief Financial Officer, said: “PMI’s scientific and technological leadership has enabled us to re-invent our company in our pursuit to unsmoke the world. We are dedicating further funds to our venture capital arm at a moment when we are in an even stronger position to leverage our expertise to support the development and commercialization of cutting-edge technologies, to the benefit of both PMI and investee companies.”
Alexander Stoeckel, head of PMEP, added: “PMEP is looking to invest in companies that can help PMI accelerate and further sophisticate our transformation while we support them through our industry-leading expertise to mature their technologies and businesses. We see this exchange as a win-win for PMI, the companies we invest in, and society.”
PMEP has a track record of success with investments in 13 companies to date through its 2016 funding commitment. Ideal investments are between USD 2 to 10 million in Series A stage companies, with flexibility to also consider investments in seed or late-growth stage companies. PMEP investments are intended to add to our potential to innovate, while better positioning our partner companies for success.
PMI is leading the transformation of the industry in our pursuit to go smoke-free. Since 2008, we have invested more than USD 8.1 billion into the science and research of developing smoke-free products, employing hundreds of world-class scientists, engineers, and technicians in our R&D efforts. Our pre-clinical and clinical programs are inspired by the pharmaceutical industry and aligned with internationally recognized good practices, with more than 425 peer-reviewed publications and book chapters published since 2008. In July 2020, PMI was the second company to receive authorization from the U.S. FDA to market a nicotine or tobacco product as a modified risk tobacco product, with the agency concluding that issuing exposure modification orders for our heated tobacco system IQOS is “appropriate to promote the public health” and is “expected to benefit the health of the population as a whole.” Today, 29% of our total net revenues are derived from smoke-free products, and approximately 14.9 million adult smokers have switched to IQOS and stopped smoking.
More details on PMEP, its investment strategy, criteria, team, and how to be in touch can be found at www.pmequitypartner.com.
Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company, its shareholders, and other stakeholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smoke-free products, associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. In addition, versions of PMI’s IQOS Platform 1 device and consumables have received marketing authorizations from the U.S. Food and Drug Administration (FDA) under the premarket tobacco product application (PMTA) pathway; the FDA has also authorized the marketing of a version of IQOS and its consumables as a Modified Risk Tobacco Product (MRTP), finding that an exposure modification order for these products is appropriate to promote the public health. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI’s smoke-free product portfolio includes heat-not-burn products, nicotine-containing vapor products, and oral nicotine products. As of September 30, 2021, PMI’s smoke-free products are available for sale in 70 markets in key cities or nationwide, and PMI estimates that approximately 14.9 million adults around the world have already switched to IQOS and stopped smoking. For more information, please visit www.pmi.com and www.pmiscience.com.