R.J. Reynolds signs vapor technology term sheet with BAT

R.J. Reynolds Tobacco Co. (RJR) has signed a technology-sharing term sheet with British American Tobacco (BAT) that provides a framework for collaboration and mutual cross-licensing of vapor product technologies through 2022.

The term sheet is the first step in reaching a definitive agreement under which RJR and BAT will collaborate to develop next-generation vapor products. Specifics of the agreement are still being negotiated by the companies, who have a goal of reaching a definitive contract by the end of the year. The collaboration will include a process for joint research and development activities, as well as cooperation on regulatory, scientific and manufacturing issues related to vapor products.

“This proposed technology-sharing agreement makes great business sense as we lead the transformation of the tobacco industry, allowing us to continue to deliver innovative, high-quality vapor products to adult tobacco consumers seeking smoke-free alternatives,” said Debra Crew, R.J. Reynolds’ president and chief commercial officer.