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.

Special Report | China’s New Five-Year Plan Highlights “Health-First” Strategy, Providing Policy Context for Tobacco Sector
Special Report | China’s New Five-Year Plan Highlights “Health-First” Strategy, Providing Policy Context for Tobacco Sector
China’s 2026 “Two Sessions” reviewed the draft Outline of the 15th Five-Year Plan, which proposes implementing a health-first development strategy and strengthening the effectiveness of the Patriotic Health Campaign. Although the document does not address specific industries, this public-health governance framework provides a new policy context for observing the future regulation, product strategies, and market development of China’s tobacco and next-generation nicotine sectors.
Industry Insight
Mar.08
Alaska AG warns 1,500+ retailers to stop selling unauthorized vapes and nicotine pouches
Alaska AG warns 1,500+ retailers to stop selling unauthorized vapes and nicotine pouches
Alaska’s attorney general has sent warning letters to more than 1,500 retailers and distributors, cautioning them against selling tobacco products — including e-cigarettes and oral nicotine pouches — that lack U.S. Food and Drug Administration authorization.
Mar.06 by 2FIRSTS.ai
Russia dismantles illegal vape liquid plant near Moscow; goods worth about $13 million seized
Russia dismantles illegal vape liquid plant near Moscow; goods worth about $13 million seized
Russian authorities say they have dismantled an illegal vape-liquid production site in the Moscow region, seizing four production lines, large quantities of components and finished goods, and substantial cash. The Interior Ministry estimated the seized products’ value at about 1 billion rubles (≈$13 million) and said the operation ran around the clock, producing up to 75,000 units per shift.
Feb.10 by 2FIRSTS.ai
Six Years of Data Show FDA Clearing PMTA Backlog
Six Years of Data Show FDA Clearing PMTA Backlog
FDA data from FY2020 to FY2025 show how the PMTA system for e-cigarette products evolved after an early surge of submissions created prolonged front-end delays. Millions of applications accumulated at the Acceptance stage before entering substantive review. Since 2023, the number of applications pending acceptance has declined sharply, and industry participants report shorter initial decision timelines in late 2025.
Feb.06
Fiscal benefit, not health, strongest indicator for vape bans – Contributed by Samrat Chowdhery
Fiscal benefit, not health, strongest indicator for vape bans – Contributed by Samrat Chowdhery
Data shows 75% of nations with state stakes in tobacco trade ban modern substitutes compared to 10% in the free-market group. What is driving these divergent regulations?
Feb.04
Kazakhstan’s Almaty crackdown: Telegram channels used to sell banned vapes, six face charges
Kazakhstan’s Almaty crackdown: Telegram channels used to sell banned vapes, six face charges
Authorities in Almaty have uncovered a large illegal vape distribution scheme, seizing and destroying more than 180,000 vapes. Prosecutors said potential revenue from sales could have exceeded 1 billion tenge. Suspects allegedly sold the banned products through Telegram channels and social media, storing inventory in warehouses and covert locations.
Feb.27 by 2FIRSTS.ai