Altria and JT will jointly establish Horizon Innovations LLC, which would be responsible for the United States marketing and the marketing of heated tobacco stick (HTS) products owned and developed by either company.
Altria said the joint venture would be through its subsidiary Philip Morris USA which will hold a 75% economic interest in Horizon and Japan Tobacco International, a subsidiary of JT, will hold the remainder. Altria added that it would make an initial contribution of $150 million to Horizon.
The companies plan to jointly prepare U.S. Food and Drug Administration (FDA) filings for the latest version of Lead HTS products that are not currently marketed and submit premarket tobacco product applications in the first half of 2025.
The announcement comes just days after Altria’s U.S. sales rights IQOS reverted to counterpart Philip Morris International Inc, which spun off from Altria in 2008 when the group wanted to separate its US and foreign operations.
Philip Morris has agreed to pay $2.7 billion for the exclusive right to sell IQOS heated tobacco products in the United States.
At the end of September, Altria exercised the option to be released from its non-competition agreement with Juul Labs Inc, nearly four years after buying a 35% stake in the company.
The FDA in early July suspended its ban on the sale of Juul’s electronic cigarettes in the United States, after the health agency banned its products for a brief period because data submitted by the company did not show that its products would be appropriate for the public. health.