Philip Morris International has entered into an agreement with Altria Group under which the company will pay Altria $2.7 billion in exchange for exclusive rights to commercialize the IQOS® tobacco heating system in the United States after April 30, 2024. The existing agreement from 2013 allowed PMI to extend the contract for an additional five-year period through April 2029, but PMI felt the conditions necessary for the extension were not met. The parties were unable to reach a long-term agreement and decided to enter into a transition agreement and ultimately end their relationship.