Philip Morris Apologizes for Smokers Report

Philip Morris Cos., amid criticism from the public, apologized Thursday for a company-funded report that said smokers’ early deaths save the Czech Republic on medical costs.

The funding and release of the report, commissioned by the Czech affiliate of Philip Morris International and conducted by consulting firm Arthur D. Little International, “exhibited terrible judgment as well as a complete and unacceptable disregard of basic human values,” Philip Morris said.

“No one benefits from the very real, serious and significant diseases caused by smoking,” the largest tobacco company said.

The report, distributed last month, said cigarette smoking doesn’t hurt the Czech economy because the government saves money on health care, pensions and housing.

News of the analysis last week brought criticism, including a letter to Philip Morris Chief Executive Geoffrey Bible from Sen. Dianne Feinstein (D-Calif.), the Wall Street Journal reported Thursday.

Bible responded to Feinstein in a letter dated July 24, saying that everyone at the company is “extremely sorry for this.” Feinstein wasn’t immediately available to comment.

Philip Morris suspended a similar study in Slovakia, spokesman Robert Kaplan said. The Czech report was prepared without the knowledge of executives at Philip Morris headquarters in New York, he said.

Last week, Kaplan said the report wasn’t meant to “ameliorate those costs” of smoking on society. “We were just trying to show the implications.”

Philip Morris shares fell 48 cents to close at $44.20 on the New York Stock Exchange.