Altria Group, Inc. (Altria) (NYSE: MO) announced today that it has entered into a series of agreements with Philip Morris International Inc. (PMI). These agreements between the companies’ subsidiaries address intellectual property licensing, regulatory engagement and contract manufacturing. In particular:
- Altria is providing PMI with an exclusive license to commercialize Altria’s e-vapor products internationally;
- PMI is providing Altria, on an exclusive basis, two of PMI’s heated tobacco products for commercialization in the United States; and
- the parties are cooperating on scientific assessment, regulatory engagement and sharing improvements regarding those products.
“These agreements create an important opportunity to commercialize our e-vapor products internationally through a strategic partnership with PMI,” said Marty Barrington, Altria’s Chairman and CEO. “In addition, through subsidiaries, PMI is granting Altria an exclusive license to sell in the United States heated tobacco products that PMI is developing. This is consistent with Altria’s ongoing efforts to develop a robust portfolio of innovative products that meet adult tobacco consumers’ preferences, including those that have the potential to be authorized by the Food and Drug Administration (FDA) as modified risk tobacco products.”
To support bringing these products to market, Altria and PMI will cooperate on regulatory engagement related to heated tobacco products with the FDA, and e-vapor products with international regulatory authorities. The companies have also agreed to share improvements to the existing generation of products.
Altria Group, Inc.Altria directly or indirectly owns 100% of each of PM USA, U.S. Smokeless Tobacco Company LLC (USSTC), John Middleton Co. (Middleton), Nu Mark LLC (Nu Mark), Ste. Michelle Wine Estates Ltd. (Ste. Michelle) and PMCC. Altria holds a continuing economic and voting interest in SABMiller plc (SABMiller). The brand portfolios of Altria’s tobacco operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal® and MarkTen™ inside the U.S. Ste. Michelle produces and markets premium wines sold under various labels, including Chateau Ste. Michelle®, Columbia Crest®, 14 Hands® and Stag’s Leap Wine Cellars®, and it imports and markets Antinori®, Champagne Nicolas Feuillatte™ and Villa Maria Estate™ products in the United States. Trademarks and service marks related to Altria referenced in this release are the property of Altria or its subsidiaries or are used with permission. More information about Altria is available at altria.com.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts