RJR and BAT to co-operate on vapor developments

R.J. Reynolds Tobacco Company, an indirect subsidiary of Reynolds American Inc (RAI), said yesterday that it had signed a definitive vapor technology-sharing and licensing agreement with Nicoventures Holdings Limited, a subsidiary of British American Tobacco.

‘The companies signed a term sheet in September, providing a framework for collaboration and mutual cross-licensing of vapor product technologies through 2022,’ Reynolds said in a note posted on the RAI website.

‘Under the agreement, R.J. Reynolds and Nicoventures will collaborate to develop next-generation vapor products.

‘This collaboration includes a process for joint research and development (R&D) activities, and co-operation on regulatory, scientific and manufacturing issues related to vapor products.’

“This is a great opportunity for the companies to continue to seek innovation in the vapor category, giving adult tobacco consumers more smoke-free options to consider,” said Debra Crew, R.J. Reynolds’ president and COO.

BAT posted a similar note on its website, though its message did not mention Nicoventures and said that the agreement had been signed between BAT and R.J. Reynolds.