After Import Ban, Philip Morris to Manufacture IQOS in the U.S.
According to Bloomberg, Philip Morris International plans to manufacture IQOS in the United States in an effort to return the product to store shelves. The move comes after the company and its U.S. partner Altria received an unfavorable ruling in a patent
According to Bloomberg, Philip Morris International plans to manufacture IQOS in the U.S. to bring its IQOS back to store shelves in America.
This move comes after the company and its U.S. partner Altria Group faced an unfavorable ruling in a patent dispute with British American Tobacco.
In September 2021, the International Trade Commission (ITC) upheld a preliminary ruling from May 2021 that IQOS infringed on two patents owned by Reynolds American Inc., a subsidiary of BAT.
The ITC issued an import ban and a cease-and-desist order, prohibiting Altria from importing PMI's IQOS 2.4, IQOS 3, and IQOS 3 Duo products into the U.S. The U.S. Trade Representative declined to intervene, upholding the ITC's ruling in November, allowing PMI to choose between manufacturing IQOS domestically or redesigning the product.
However, any design changes will require re-authorization from the FDA.
PMI CEO Jacek Olczak stated in an interview with Bloomberg that the company has always planned to manufacture IQOS in the U.S. "From the moment we entered the FDA, we considered that IQOS would one day not only be sold in the U.S. but also manufactured there, given the market size and the opportunities for IQOS," he said. "This is just happening faster because of the ITC's decision."
In July 2020, the FDA authorized PMI and Altria to market IQOS with certain modified risk statements, giving the company an advantage over competitors.
PMI did not specify where it would manufacture IQOS but indicated plans to resume sales of IQOS in the U.S. in the first half of 2023.
