Philip Morris, the international tobacco giant, is acquiring the Israeli company Syqe Medical in a deal that could reach $650 million, Calcalist has learned. Syqe’s main product is a metered-dose inhaler for pain reduction treatment using medical cannabis.
The deal consists of several milestones. Philip Morris will initially invest $120 million to support the process of obtaining FDA approval for Syqe’s inhaler. If the approval is received after passing clinical trials, Philip Morris will proceed to purchase all the shares of the Israeli company for $650 million.
The transaction will be conducted through Philip Morris’ subsidiary Vectura, which specializes in the field of inhalers. Philip Morris previously acquired the British company for one billion pounds in 2021 as part of its strategy to transition to smoke-free smoking.
Philip Morris previously invested $20 million in Syqe back in 2016.
The acquisition of Syqe marks one of the largest transactions in Israel’s medical technologies field over recent years. If the $650 million valuation is achieved, Syqe will become one of the ten largest cannabis companies globally, joining the ranks of Tilray and Aurora.
This exit is highly significant for all of Syqe’s investors, considering that the total investments in the company to date amount to only $80 million. The company’s founder and CEO, Perry Davidson, holds a relatively large share of over 10% 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.
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