STAMFORD, CT - Philip Morris International Inc. (NYSE: NYSE:PM) has announced a comprehensive settlement with British American Tobacco (NYSE:BTI) (BAT (LON:BATS)) to end all ongoing patent infringement litigation concerning their heated tobacco and vapor products. The agreement, which includes various non-monetary terms, resolves existing global disputes and injunctions, and is designed to prevent future claims related to current products in these categories.
The settlement enables both Philip Morris and BAT to continue innovating and introducing new iterations of their products. As part of their commitment to tobacco harm reduction, Philip Morris views this resolution as a significant step towards advancing their goal of providing smoke-free products and ultimately ceasing the sale of cigarettes.
Jacek Olczak, Chief Executive Officer of Philip Morris, expressed satisfaction with the mutual resolution, emphasizing the global demand for smoke-free alternatives and the potential public health benefits of continued innovation in the reduced-risk product category.
Details of the settlement will be disclosed in a Form 8-K filing with the Securities and Exchange Commission, as per regulatory requirements.
The information in this article is based on a press release issued by Philip Morris International.
InvestingPro Insights
In the wake of the recent settlement between Philip Morris International (NYSE: PM) and British American Tobacco, investors may be looking for deeper financial insights into Philip Morris's performance. According to InvestingPro data, Philip Morris has a market capitalization of $144.82 billion and maintains an attractive gross profit margin of 63.58% as of the last twelve months ending Q3 2023. These robust margins are indicative of the company's strong pricing power and operational efficiency in the tobacco industry.
InvestingPro Tips highlight that Philip Morris has a history of rewarding shareholders, having raised its dividend for 16 consecutive years. This is complemented by a current dividend yield of 5.57%, which is particularly significant for income-focused investors. Additionally, analysts have shown confidence in the company's earnings potential by revising their earnings upwards for the upcoming period.
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