Vectura is an inhaled medicine and device maker to treat respiratory illnesses such as Novartis, GSK, and Asthma.
Marlboro cigarette maker increases its offer after US private equity firm Carlyle offered $1.3 billion on Friday.
There was no response seen from Vectura so far.
It previously said it was considering Carlyle’s offer and withdrawing its recommendation for Philip Morris’ earlier bid.
Vectura agreed to develop a potential inhaled treatment for covid-19 with Inspira, which is a UK-based pharmaceuticals company that develops therapies for respiratory and infectious diseases.
“The PMI (Philip Morris International) increased offer values the entire issued and to be issued ordinary share capital of Vectura at approximately £1.02bn ($1.41bn).” Phillip Morris said in a statement.
“PMI intends to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business,” the tobacco company added.