Philip Morris International Is Quietly Entering the Cannabis Market

Philip Morris International (PMI), the renowned tobacco giant, has been consistently expanding its operations beyond the traditional tobacco market. The company’s recent moves indicate a growing commitment to medical cannabis. Through a partnership with Canadian company Avicanna, specializing in cannabinoid therapy, PMI is advancing its diversification strategy.

But why is the world’s largest tobacco company investing in medical cannabis? What sets it apart from its competitors and what are its long-term plans? Let’s find out.

Philip Morris and Avicanna: A new medical cannabis partnership

Philip Morris International has partnered with Avicanna, a Canadian biotech company specializing in cannabinoid-based medical products. A key element of this partnership is the MyMedi.ca platform , which offers patients pharmaceutical support and access to expertly selected medical cannabis products.

This collaboration is no accident. Canada, with its well-regulated cannabis market, is an ideal environment for testing new strategies and gaining experience in patient care. Aaron Grey, an expert at Alliance Global Partners, notes:

“PMI has been focused on medical cannabis applications for years. The partnership with Avicanna is a logical continuation of that strategy.”

Why Philip Morris International chooses medical applications of cannabis?

Philip Morris has been working to transform its image for years. The introduction of smokeless products such as IQOS and investments in medical solutions show the company’s drive to innovate and respond to changing consumer preferences.

Younger generations are increasingly moving away from traditional tobacco in favor of healthier alternatives such as hemp and wellness products. The partnership with Avicanna allows PMI to reach a new group of consumers who value science-based and health-based solutions.

This isn’t the first time Philip Morris has ventured into the medical market. In 2016, the company invested in Israeli Syqe Medical, which developed an inhaler for administering cannabis-based medications. In 2023, PMI acquired Syqe Medical, confirming its long-term interest in developing medical cannabis.

PMI vs. Competition: What’s the difference?

While other tobacco companies like Altria and British American Tobacco (BAT) have focused on the recreational market, PMI has taken a different path.

Competition Investments

Altria: In 2018, it invested $1.8 billion in Cronos Group, a company focused on recreational cannabis applications.

BAT: In 2023, it entered into a partnership with Organigram, committing $125 million in research and development.

Philip Morris is focusing on medical applications, avoiding the risks associated with the more unpredictable recreational market. With Avicanna, the company is building expertise in cannabinoid-based therapies and gaining valuable experience in patient care.

Avicanna: A key player in PMI’s strategy

Avicanna is a company known for its commitment to research and development of cannabinoid therapies. Its innovative approach includes:

MyMedi.ca Platform: Integration of patient services and access to specialized medical products.
Research partnerships : Collaborations with institutions such as University Health Network and SickKids Hospital in Canada allow Avicanna to develop therapies for patients with epilepsy, dermatological disorders and chronic pain, among others.

What will the future bring?

Experts wonder whether PMI’s cooperation with Avicanna is not a prelude to a full takeover. A similar scenario occurred in the case of Syqe Medical, which initially received investment support and was then fully acquired by PMI.

While Canada is a strategic entry point, Philip Morris’ long-term plan may include entering the U.S. market. However, as Todd Harrison of CB1 Capital notes: “The speed of integration will depend on changes in U.S. regulations.”

Philip Morris International is charting a new course by diversifying its medical cannabis strategy. The partnership with Avicanna reaffirms the company’s commitment to developing innovative health solutions and adapting to changing consumer preferences.

With a focus on research, regulated markets, and patient care, PMI is building a solid foundation for its future in the cannabis industry.

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(Featured image by alokmallick33444968 via Pixabay)

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