Benzinga | Aug 9, 2021 12:42PM EDT

Philip Morris International Acquires Inhaled Drug Developer OtiTop

Philip Morris International Inc. (PMI) (NYSE:PM) has acquired OtiTopic, a Los Angeles-headquartered respiratory drug development company. The financial terms of the transaction were not disclosed.

What Happened: OtiTopic was founded in 2012 and is focused on the development of Asprihale, a late-stage inhalable acetylsalicylic acid (ASA) treatment for acute myocardial infarction, more commonly known as a heart attack.

Asprihale is a patented, dry powder inhalation of ASA delivered through a self-administered aerosol. According to the companies, the product is expected to move from clinical trials to filing with the U.S. Food and Drug Administration for approval in 2022.

"This transaction aligns well with OtiTopic's goals of unlocking what we believe to be a significant opportunity in inhaled therapeutics science," said Kambiz Yadidi, CEO of OtiTopic.

Related Link: FDA Begins Steps To Ban Menthol Cigarettes

Why It Happened: The acquisition is the latest effort by PMI to transition away from its role as a cigarette company. Last month, the company announced plans to acquire Vectura Group, a British pharmaceutical company specializing in inhaled medicines while stating it planned to cease cigarette sales in the U.K. within the next 10 years.

The company has also been highlighting a renewed focus on smoke-free products, with the goal of having 50% of net revenues generated by smoke-free products by 2025.

"Despite the fact that, yes, we are a Big Tobacco company, we said that our objective is to get rid of cigarettes and replace them with better alternatives for those people who otherwise would continue to smoke," said CEO Jacek Olczak.

Photo: Philip Morris International's Operation Center in Lausanne, Switzerland. Photo by SimonDes / Wikimedia Commons.