Siddharth Cale, Afanasieva und Dasha

(Reuters) – Philip Morris (NYSE 🙂 plans to reach 50% of its sales from non-smoking products in 2025 by organic revenue growth and not through mergers or acquisitions. This is according to its CEO.

Marlboro, the maker of cigarettes, has spent $8 billion in reduced-risk products since its inception a decade ago. This was stated by Chief Executive Jacek Oloczak during a Reuters Next interview.

Olczak said that about 30% of Philip Morris’s revenue now comes from products like nicotine pouches or iQOS tobacco heating units.

Philip Morris also has a goal to generate $1 billion from non-nicotine product sales by 2025, as part of the company’s evolution into a “healthcare” and wellness business.

Olczak explained that “the way we view these targets is we achieved the current 30% organically, and I believe we could get to 50% by maintaining this organic growth.” He added: “Our $1B target to attain sales of non-nicotine drugs we can also achieve organically to a large degree.”

Olczak made the comments nearly two months ago when Philip Morris acquired British inhaler manufacturer Vectura. The deal, which was opposed by health professionals who wondered if a tobacco firm should have a company that treats respiratory diseases like those caused by cigarettes, came almost two years after Philip Morris purchased Vectura.

Olczak, when asked whether he was shocked by the backlash said that “some voices of criticism” were heard and that “negative emotion” will fade as Vectura introduces products in the coming years to address the unmet consumer and patient demands.

It was first announced on July 7, and critics are pushing the government and shareholders to stop it.

Over 35 doctors and experts from the health sector wrote to shareholders in August about the harmful effects tobacco had on United Nations sustainable growth goals. They then followed up by a letter addressed to the British government asking for advice regarding conflict of interests issues.

Olczak stated, “Nothing that we’re doing shouldn’t surprise you. We are actually putting into practice the visions we had seven years ago about quitting cigarettes.”

This is a major shift in the direction of our company.

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