PMI Buys Israeli Marijuana Company for $650 Million

BusinessPMI by Jacky Yin
Jul.19.2023
PMI Buys Israeli Marijuana Company for $650 Million
Philip Morris International (PMI) is in the process of acquiring an Israeli medical marijuana company Syqe Medical for up to $650 million. Syqe's main product is said to be a medical marijuana-measured dose inhaler for pain relief.

On July 18, Israeli media outlet Calcalistech reported that Philip Morris International (PMI) is in the process of acquiring Israeli medical marijuana company Syqe Medical for up to $650 million. Syqe's main product is a medical marijuana-measured dose inhaler for pain relief.

 

菲莫国际加码医用大麻市场? 或以6.5亿美元收购以色列大麻公司
Syqe product | calcalistech

 

Acquisition of all shares for USD $650 million

According to the report, PMI will first invest $120 million to support the Syqe inhaler's approval by the U.S. Food and Drug Administration (FDA). If approval is granted through clinical trials, PMI will go on to purchase all remaining shares of the Israeli company for $650 million.

 

The deal will be carried out through PMI's subsidiary Vectura, which specializes in the inhaler space. PMI had acquired Vectura for £1 billion in 2021 as part of its strategy to transition to smoke-free world.

 

It is public information that in 2016, PMI made a $20 million investment in Syqe.

 

A number of independent patented technologies

If the acquisition goes through, it will be one of the biggest deals in the Israeli med-tech sector in recent years; and if it reaches a valuation of $650 million, Syqe will become one of the top 10 cannabis companies in the world.

 

Founded in 2011 by Perry Davidson, who still serves as CEO, Syqe holds around 120 patents, and its main innovations are the use of the raw inflorescence of the cannabis plant rather than processed products, and the ability to accurately measure the dosage given to patients.

 

It's worth noting that total investment in the company to date is $80 million, with Davidson holding more than 10 percent of the shares.

 

Currently, more than 80% of medical marijuana consumers use smoking products such as cigarettes and e-cigarettes, leading to potential overdoses, and Syqe's inhaler provides relief without the need for an overdose, avoiding the "psychoactive effect".

 

FDA approval is a key milestone

In the past, these inhalers were marketed and distributed through the Israeli pharmaceutical company Teva. Recently, however, Syqe has chosen to market independently and has entered into partnership agreements with the Ministry of Defense and Meuhedet HMO.

 

Syqe's primary target market is outside of Israel, and its FDA approval is a key milestone. According to the report, PMI will play an important role in getting Syqe through FDA approval. If successful, Syqe will be the first company in the world to receive FDA approval for the use of raw cannabis inflorescences as medicine.

 

PMI is one of the world's largest cigarette manufacturers with a market capitalization of $154 billion. In recent years, PMI has launched a new tobacco transformation strategy, and today more than one-third of its revenue comes from smokeless products, including heated tobacco products like IQOS.

 

According to PMI, the medical marijuana market is worth $24 billion, growing at a 15% annual rate through 2030. The wellness market, which includes cannabis-based tranquilizers and sleep aids, is estimated to be worth an additional $4 billion, with an 8% growth rate.

 

Syqe's inhaler is currently available in Israel and Australia, which are relatively small markets. The Israeli market is estimated at only NIS 100 million (approximately USD $27.5 million) per year, serving approximately 50,000 medical marijuana patients.

 

Reference:

【1】Philip Morris acquiring Cannabis inhaler developer Syqe Medical for up to $650 million

*The content excerpted or reproduced in this article comes from a third-party, and the copyright belongs to the original media and author. If any infringement is found, please contact us to delete it. Any entity or individual wishing to forward the information, please contact the original author and refrain from forwarding directly from here.

Fontem Sues FDA Over Refusal-to-File Decision for Nicotine Pouch PMTAs
Fontem Sues FDA Over Refusal-to-File Decision for Nicotine Pouch PMTAs
According to a complaint filed on March 17 in the U.S. District Court for the Northern District of Texas, Fontem US, LLC and Texas retailer OM Investment, LLC sued the Food and Drug Administration and the Department of Health and Human Services over FDA’s refusal-to-file decision for certain Zone nicotine pouch PMTAs.
Mar.19 by 2FIRSTS.ai
Russia Moves Toward Full Ban on E-Cigarettes and Vapes, With Scope Still Under Discussion
Russia Moves Toward Full Ban on E-Cigarettes and Vapes, With Scope Still Under Discussion
Russia’s State Commission for Countering Illegal Trafficking in Industrial Products on March 25 supported an initiative to fully ban the production, import and circulation of electronic cigarettes, vapes and refill liquids in Russia.
Mar.26 by 2FIRSTS.ai
STMA Issues Trial Credit Management Rules for E-Cigarette Manufacturers and Wholesalers
STMA Issues Trial Credit Management Rules for E-Cigarette Manufacturers and Wholesalers
Mar.26 by 2FIRSTS.ai
2Firsts|Sesh Advances Nicotine Pouch PMTA to Filing Stage, Experts Highlight Regulatory Threshold and Market Window
2Firsts|Sesh Advances Nicotine Pouch PMTA to Filing Stage, Experts Highlight Regulatory Threshold and Market Window
Sesh said its Premarket Tobacco Product Application (PMTA) for 64 nicotine pouch SKUs has been accepted by the U.S. Food and Drug Administration (FDA) and advanced to the Filing stage, entering substantive scientific review. Industry experts say the development signals that the application has crossed a key technical and regulatory threshold, while also highlighting growing divergence in regulatory capability and market positioning within the nicotine pouch category.
Special Report
Mar.24 by 2FIRSTS.ai
Japan Tobacco Releases Three Ploom AURA Collaboration Panels Inspired by “Sake”
Japan Tobacco Releases Three Ploom AURA Collaboration Panels Inspired by “Sake”
Japan Tobacco announced that it will sponsor “CRAFT SAKE WEEK 2026,” to be held at Roppongi Hills Arena, and set up a dedicated smoking area called “Ploom LOUNGE.” Three Ploom AURA collaboration front panels inspired by the theme of “sake” will be offered at the venue, along with trial use, sales, and related original content.
Apr.13 by 2FIRSTS.ai
Exclusive|Logistics Operators Warn of Possible New U.S. Border Crackdown on Illicit Vapes
Exclusive|Logistics Operators Warn of Possible New U.S. Border Crackdown on Illicit Vapes
Recent inspections and cargo disruption have led some logistics operators in the China-U.S. vape trade to see early signs of another U.S. border crackdown on illicit e-cigarettes. With late April to early May viewed as a key risk window, the market is watching closely. The bigger question is not only whether enforcement will tighten, but whether it can be sustained.
Special Report
Apr.09