Asthma UK

Leading patient advocacy network urges provinces to use settlement pay-outs solely to combat lung disease following historic creditors vote on December 12TORONTO, Dec. 13, 2024 (GLOBE NEWSWIRE) -- The National Lung Health Alliance (NLHA) recognizes the successful outcome of ‘Big Tobacco’ settlement compensation plan vote on December 12. Canada’s most powerful lung health advocacy network stands firm in its message to the provinces that the next steps are what really matters. “This creditors vote is the first step to achieving some degree of reparations for the harms caused by commercial tobacco,” says Jessica Buckey, President and CEO of the Lung Health Foundation, the national organization spearheading the NLHA. “We are calling on provincial governments to use this settlement as a springboard for transformative action and lung health investment. Their action or inaction is what will decide whether this landmark decision is remembered as a success or a failure.” A Tragedy in the Making “The settlement’s vagueness is not just disappointing -- it’s a tragedy in the making for the one in five Canadians who struggle to breathe,” says Buckley. “Provinces have a rare chance to redress decades of harm caused by tobacco. These funds must be directed toward programs and resources that transform lung health outcomes -- not squandered on unrelated initiatives,” she urges. As the settlement awaits court approval, Buckley says NLHA will remain optimistic that legislators will do right by the lung health of Canadians past, present and future. “The provinces can be the heroes in this settlement if they use the funds wisely.” The High Cost of Nicotine Addiction For every $100 provinces collect in tobacco taxes, they incur $300 in direct healthcare costs from nicotine-related harm. Tobacco-related illnesses cost Canadians $12 billion annually, with Ontario alone spending an estimated $7 billion per year to address the fallout. This doesn’t include the emotional toll on families or lives lost. Despite this, the $24.7 billion earmarked for provinces in the settlement comes with no mandate for cessation programs, addiction and mental health supports or preventive measures. “Imagine the impact if even a fraction of this sum was invested in programs to help Canadians quit smoking or vaping -- or prevent them from starting,” says Buckley. What’s Missing? While the settlement also provides financial restitution to class-action claimants and allocates funds to a vaguely defined research foundation, it lacks critical measures for: Adequate supports to prevent Canadian youth from starting smoking, vaping and other nicotine products.Adequate cessation supports for Canadians trying to quit smoking and other nicotine products.Comprehensive screening programs for smoking related illnesses and diseases like lung cancer and chronic obstructive pulmonary disease (COPD).Adequate treatment and supports for Canadians living with lung health conditions caused by smoking. A Call to Action “Provinces must rise to the occasion and allocate these funds where they are needed most: prevention, education, and treatment programs that improve lung health for all Canadians,” says Buckley. About National Lung Health Alliance: The National Lung Health Alliance (NLHA) is Canada’s leading advocacy network for lung health. Led by the Lung Health Foundation, the alliance includes several organizations: BC Lung Foundation, Alberta Lung, LungSask, Association Pulmonaire du Quebec, NB Lung, LungNSPEI, Lung Cancer Canada, Asthma Canada and COPD Canada. NLHA mission National Lung Health Alliance member organizations are currently working together to advance specific asks at the federal level based on collective decision making. Its mission focuses on three key areas: Youth vaping: Advocating for a Smoke-Free Generation; Chronic obstructive pulmonary disease (COPD): Improving diagnostics and support; and Air quality: Reducing radon exposure and promoting healthier homes.

Philip Morris is one step closer to taking over respiratory drugmaker Vectura, as the UK-based company’s board of directors says it will unanimously back the tobacco giant’s $1.5 billion bid. The board said it considers Philip Morris’ offer “fair and reasonable,” according to a statement. The cigarette company, best known for its Marlboro products, offered 165 pence per share, beating out a 155 pence per share offer by the private equity firm The Carlyle Group. The news comes days after The Carlyle Group insisted its most recent offer of $1.3 billion was final, refusing to get involved in a planned auction or go above what it concluded was a “full and fair” price for Vectura. When The Carlyle Group first announced its buyout offer in May, it seemed to be a done deal, with the valuation marking a 32% premium over the company’s market value at the time. Vectura, which flopped as a drug developer, has flourished since pivoting to formulating inhaled drugs for clients. Then Philip Morris put in an offer, as CEO Jacek Olczak pushed a “beyond nicotine” strategy that would position the company to generate more than half its revenue from smoke-free products by 2025. But the move triggered backlash from consumer advocates, charities, anti-smoking groups and even the UK’s business secretary. “Tobacco companies should not profit from the illnesses their products cause,” a group of representatives from more than 20 anti-smoking and lung health organizations wrote to Vectura’s board yesterday. “In addition, we believe Vectura’s future commercial viability as a company dedicated to improving respiratory health would be seriously jeopardised should the PMI takeover proceed,” they added. Those representatives included Bronwyn King, CEO of Tobacco Free Portfolios; Sarah Woolnough, chief executive of Asthma UK; and Kjeld Hansen, chair of the European Lung Foundation, among others. The buyout still needs the approval of more than half of Vectura’s shareholders. But because Philip Morris switched its proposal to a takeover offer, there will be no shareholder meeting, according to the board’s statement. Instead, the offer will be open for at least 21 days, and PMI needs to get acceptance in the next 60 days, Reuters reported. Brown Capital Management, a Baltimore firm, owns the largest stake in the company. Vanguard also holds a significant piece of the pie. But Axa Investment Managers, TIG Advisers and Berry Street Capital Management — which together hold about 11.2% of shares — had been in support of the Carlyle takeover, according to Reuters.

Valery Sharifulin\TASS via Getty Images In a strange twist of irony, a big tobacco company is gunning to acquire a British pharma that specializes in asthma medications. Amidst a chorus of pushback from scientific and health organizations, Philip Morris International’s $1.4 billion offer now has the backing of Vectura Group’s board. The Marlboro maker outdid private equity group Carlyle in a weeks-long bidding war for Vectura. Carlyle bowed out after their final offer of 155 pence per share was upped by PMI at 165 pence. Nearly two dozen organizations are begging Vectura’s board to reconsider accepting PMI’s offer for ethical and practical reasons. Their somewhat-scathing letter calls PMI’s “beyond nicotine” strategy disingenuous, citing that the company manufactures over two billion cigarettes a day, marketing globally with youth and targeting low- to middle-income communities. Vectura manufactures inhaled medications for COPD, asthma and other respiratory illnesses. If the tobacco company acquires the pharmaceutical company, as the health organizations’ position states, “Tobacco companies should not profit from illnesses their products cause.” “We will continue to oppose this dreadful proposed takeover until a final decision is made,” Sarah Woolnough, chief executive officer of Asthma UK and the British Lung Foundation, said in a statement. “We appeal now to Vectura’s shareholders to make the right and ethical choice and say no to Big Tobacco.” Meanwhile, Philip Morris said it’s aiming for a smoke-free future. PMI’s end game is to move “beyond nicotine.” “I want to allow this company to leave smoking behind,” Philip Morris CEO Jacek Olczak said in an interview. “I think in the U.K., 10 years from now maximum, you can completely solve the problem of smoking.” The tobacco group plans to stop selling its Marlboros in the U.K. within the next ten years, marking the end of a century of sales of the cigarettes on U.K. shelves. The announcement came in support of the U.K. government’s plan, released three years ago, to end smoking in England by 2030. PMI also hopes to change its revenue sources, with a goal of $1 billion in sales from non-nicotine products by 2025. With this in mind, other investors argue that rejecting PMI’s “fair and reasonable” offer, they’re stripping the company of a chance for change. Additionally, Philip Morris’ financial resources could be a massive benefit to Vectura’s research and development budget. For the deal to close, PMI needs just over 50% acceptance from shareholders. In lieu of a shareholder meeting, the offer will be open for 21 days, then PMI will have 60 days to satisfy the conditions of acceptance. In the future, Olczak said of its Marlboro brand in Britain, “It will disappear. The first choice for consumers is they should quit smoking. But if they don’t, the second best choice is to let them switch to the better alternatives.” PMI’s website touts a vision of a “smoke-free future.”