Tobacco giant Philip Morris raises bid for respiratory drugmaker

Tobacco giant Philip Morris has raised its bid to buy respiratory drugmaker Vectura to more than £1bn.

Vectura makes inhaled medicines and devices to treat respiratory illnesses such as asthma, and counts Novartis and GSK among its customers.

The Marlboro cigarette maker increased its offer to £1.65 ($2.29) per share after US private equity firm Carlyle offered £958m ($1.3bn) on Friday.

Vectura has not yet responded to requests for comment on the new bid.

It previously said it was backing Carlyle's offer and withdrawing its recommendation for Philip Morris' earlier bid.

The London-listed company said on Friday that it believed it could better positioned under Carlyle's ownership, noting the "reported uncertainties relating to the impact on Vectura's wider stakeholders arising as a result of the possibility of the company being owned by PMI (Philip Morris)".