Global tobacco conglomerate, Philip Morris International, is slated to make a colossal foray into the medical cannabis industry. The company has set its sights on Syqe Medical, an Israeli firm specializing in metered-dose inhalers for pain treatment. The acquisition could reach a staggering $650 million, sources at Calcalist reveal.
Initially, Philip Morris plans to invest $120 million to back Syqe Medical’s endeavors to secure approval from the U.S. Food and Drug Administration (FDA) for their innovative inhaler. Upon successful completion of clinical trials and FDA approval, Philip Morris will move forward to acquire all shares of Syqe Medical, bringing the total acquisition value up to $650 million.
Through Vectura’s Expertise
The acquisition proceedings will be facilitated through Vectura, a Philip Morris subsidiary known for its specialization in inhaler technology. Vectura was purchased by Philip Morris for a whopping $1.44 billion in 2021 as a strategic move towards a smoke-free future.
Riding the Cannabis Wave
The Syqe acquisition represents a significant milestone for Philip Morris in its push into the lucrative cannabis market. If Syqe achieves the projected $650 million valuation, it will catapult into the top ten cannabis companies globally, rubbing shoulders with industry titans like Tilray and Aurora.
Building on Previous Investments
The move to acquire Syqe isn’t Philip Morris’s first investment in the company. Back in 2016, the tobacco giant had already identified Syqe’s potential and invested $20 million in the firm.
Syqe: The Game-Changer
Founded in 2011 by Perry Davidson, who continues to serve as the CEO, Syqe Medical holds approximately 120 patents. The company’s primary offering is a unique metered-dose inhaler for pain relief using medical cannabis. What sets Syqe’s inhaler apart is its use of the raw cannabis plant’s inflorescence, unlike its processed derivatives, enabling precise dosage administration to patients.
The successful acquisition of Syqe by Philip Morris is not just significant for the Israeli medical technology field but also represents a lucrative exit for Syqe’s investors. To date, investments in the company have amounted to just $80 million. Davidson holds a more than 10% share of the company, with other investors including OurCrowd, former Retalix founders Barry Shaked and Brian Cooper, GlenRock, Leon Recanati’s investment firm, Shavit Capital, and Bank Discount.
Philip Morris is poised to acquire Israeli cannabis inhaler firm Syqe Medical in a deal that could reach $650 million. Philip Morris will initially invest $120 million to aid Syqe in obtaining FDA approval for its metered-dose inhaler. If the approval is granted, Philip Morris will fully acquire Syqe through its subsidiary, Vectura. This acquisition will position Syqe among the top ten global cannabis companies, marking a significant shift for Philip Morris into the cannabis sector.
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