WINSTON-SALEM, N.C. Reynolds American, maker of Camel cigarettes, last week announced it had reached an agreement to purchase all outstanding shares of the Swedish-based nicotine replacement therapy company Niconovum AB for 310 million Swedish kronor, or approximately $44 million.
Niconovum markets nicotine replacement therapy products under the Zonnic brand name in Sweden and Denmark.
“We believe the technology used in our Zonnic products better meets consumer preferences than other NRTs currently on the market,” stated Nils Siegbahn, president and CEO of Niconovum. “With today’s announcement, Niconovum will have access to the capital it needs to expand distribution of Zonnic to additional markets, and accelerate product refinements and new product development.”
One of those markets may be the United States.
“Niconovum’s products have great potential in meeting consumer demand and public health objectives,” said Susan Ivey, chairman, president and CEO of Reynolds American. “This acquisition extends the harm-reduction strategies RAI and its operating companies have been developing over the past several years. Longer term, we believe the acquisition of Niconovum will enable an RAI operating company to provide adult tobacco consumers with innovative cessation products that have the potential to reduce the risks of diseases and death caused by tobacco use.”
Ivey said that RAI intends to provide Niconovum with the investment capital it needs to focus on product development and the testing required to enter additional markets.
Niconovum will be a separate operating company of Reynolds American.