In June, the maker of Marlboro and L&M cigarettes sold in markets outside the U.S. began to tout the development of next-generation products that can offer new ways to consume nicotine. The initiative comes as consumers are showing a greater willingness to try alternatives to conventional cigarettes, including snus and e-cigarettes.
"We are initiating eight clinical studies this year in different locations and with different population groups and plan to expand the testing in 2014," said Chief Financial Officer Jacek Olczak during a presentation at the Consumer Analyst Group of New York conference in Boca Raton, Fla.
Mr. Olczak said an exploratory clinical study launched last year yielded top-line results that were in line with the company's expectations and modeling. He said Philip Morris will also begin behavioral research to determine how smokers understand the new products Philip Morris is developing. That research will be used for marketing purposes.
To manufacture those products, Philip Morris is weighing sites in Europe and could build one or two facilities for the initiative. Philip Morris expects to spend EUR500 million to EUR600 million over a
three-year period.
