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.

Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Swedish nicotine pouch brand Kelly White is building its strategy around adult female consumers. Founder and CEO Sophia Wilsby told 2Firsts that women accounted for around 70% of the brand’s repeat customers on HAYPP in Sweden in 2025. The interview explores female consumer segmentation, product and design differentiation, gender stereotypes, packaging regulation, and how independent brands can compete with global players such as ZYN and VELO while considering funding, partnerships and future ownership options.
Business
Sep.24
Global Nicotine-Pouch E-Commerce Group Haypp Shuts Sweden’s Snusnetto Over Age Verification as Identity Checks Become Industry Infrastructure for New Nicotine Products
Global Nicotine-Pouch E-Commerce Group Haypp Shuts Sweden’s Snusnetto Over Age Verification as Identity Checks Become Industry Infrastructure for New Nicotine Products
Sweden's Supreme Administrative Court has declined to hear an appeal over age verification for tobacco and nicotine products collected from parcel lockers, leaving in place a lower-court ruling that geo-located BankID verification is insufficient to securely verify the actual recipient. Haypp Group has stopped tobacco and nicotine sales through Snusnetto and is deploying a new system across its other Swedish e-commerce sites to verify the age of the person who actually opens the locker and receives the shipment. The change comes as age verification across next-generation nicotine products expands from purchase checks into retail, delivery and, for some e-cigarettes, device access itself.
Regulations
Oct.20
Spain Cigarette Volumes Fall 5.2% in August, BAT Drops 14.5%, JTI Gains Share; France Down 8.3% on Adjusted Basis
Spain Cigarette Volumes Fall 5.2% in August, BAT Drops 14.5%, JTI Gains Share; France Down 8.3% on Adjusted Basis
Spain's cigarette volumes declined 5.2% year over year in August 2026, according to government data cited by UBS and reported by Investing.com on October 7. British American Tobacco's volumes fell 14.5%, followed by Imperial Brands at 8.8%, Philip Morris International at 6.6% and Japan Tobacco at 4.6%. JTI was the only one of the four companies to gain cigarette market share, rising six basis points to 26.7%. In France, official customs data showed an unadjusted 3.7% decline in cigarette deliveries. Adjusting for the difference in delivery days produces a decline of approximately 8.3%, consistent with the UBS figure. The bank also estimated the earnings exposure of major tobacco companies to both markets.
Market
Oct.13
JTI Liggett Puts U.S. Value Cigarette Brands in Spotlight at 2026 NACS Show
JTI Liggett Puts U.S. Value Cigarette Brands in Spotlight at 2026 NACS Show
At the 2026 NACS Show in Las Vegas, JTI Liggett highlighted its value-priced cigarette portfolio, including LD and Montego, following JT Group's acquisition of Vector Group. The company's U.S. business reported market share gains, with LD sales volume rising 32.6% in the first half of 2026. Meanwhile, Ploom was displayed separately at Altria's booth under an existing partnership. JTI Liggett booth staff told 2Firsts that the company had not yet launched nicotine pouch products in the United States.
EXPO
Oct.09
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
The U.S. Food and Drug Administration (FDA) has named Jessica Zeller director of the Center for Tobacco Products' (CTP) Office of Compliance and Enforcement (OCE), effective November 1, 2026. Zeller, the office's inaugural deputy director, returns from medical device manufacturer Edwards Lifesciences with more than 20 years of regulatory and legal experience. The appointment follows CTP leadership changes and adjustments to tobacco regulation. Bret Koplow became permanent CTP director in September; the FDA revised enforcement priorities for unauthorized e-cigarettes and nicotine pouches in May and announced faster PMTA review procedures. On September 28, the agency said it would evaluate changes to the existing PMTA regulatory framework, including potential rulemaking to replace it.
FDA
Oct.20 by 2Firsts Perspectives
Product | PMI Launches ZYN Melts in UK, Extending ZYN Beyond Nicotine Pouches Into Dissolvable Tablets
Product | PMI Launches ZYN Melts in UK, Extending ZYN Beyond Nicotine Pouches Into Dissolvable Tablets
Philip Morris International (PMI) has launched ZYN Melts in the UK, introducing a fully dissolvable oral nicotine tablet format alongside the brand's existing nicotine pouches. The range includes Cool Mint and Peppermint, each offered at 1mg and 2mg of nicotine per tablet, creating four SKUs. Each can contains 20 tablets and is priced at £6.50 in the UK. Unlike ZYN nicotine pouches, Melts are placed between the upper lip and gum and dissolve completely during use.
News
Sep.29 by 2Firsts Perspectives