![]() Altria expects to use the cash proceeds for several items, which may include investments in pursuit of its vision, debt repayment, share repurchases and general corporate purposes. Under the terms of the deal, PMI is obligated to make an additional payment of $1.7 billion (plus interest) by July 2023 for a total cash payment of approximately $2.7 billion (pre-tax). The parties were unable to reach a long-term agreement and decided to enter into the agreement to transition and ultimately conclude their relationship.Īltria received $1 billion from PMI upon entry into the agreement. While Altria believed it achieved the required milestones, PMI disagreed. Upon achieving additional milestones, PM USA had the option to renew for an additional five-year term through April 2029. commercialization rights upon achieving an initial milestone by April 2022. Food and Drug Administration in April 2019 and continued through April 2024.Īs part of the 2013 agreement, PM USA had the right to maintain exclusive U.S. PM USA’s commercialization rights were subject to an initial five-year term, which began when the system received authorization from the U.S. commercialization rights of Altria subsidiary Philip Morris USA to the IQOS system. In 2013, Altria entered into a series of agreements with PMI related to innovative tobacco products, which included exclusive U.S. ![]() “We believe that this agreement provides us with fair compensation and greater flexibility to allocate resources toward ‘moving beyond smoking.’” “We remain committed to creating long-term value through our vision,” said Altria CEO Billy Gifford in a statement. commercialization rights to the IQOS tobacco-heating system effective April 20, 2024. Philip Morris International will pay Altria Group approximately $2.7 billion for the exclusive U.S.
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