Philip Morris International (PMI), the world’s largest tobacco company by market cap, is deepening its involvement in the cannabis space through its subsidiary, Vectura Fertin Pharma (VFP). In a quiet but significant announcement, PMI revealed a new partnership with Avicanna, a Canadian biopharmaceutical company focused on cannabinoid-based medicine. The collaboration aims to enhance medical cannabis research and improve patient access in Canada, using Avicanna’s MyMedi.ca platform as a key asset. The move reflects PMI’s continued shift toward health and wellness-driven innovation.
A Focused Strategy: Medical Cannabis Over Recreational
PMI’s partnership with Avicanna reinforces its long-term strategy to target the medical cannabis market. Unlike peers such as Altria and British American Tobacco (BAT), which have taken consumer-centric routes, PMI has consistently prioritized medical applications. Aaron Grey, Managing Director at Alliance Global Partners, notes, “PMI has always leaned toward the medical side of cannabis. Their 2016 investment in Syqe Medical was focused on medical delivery devices, and this partnership with Avicanna follows the same direction.”
In 2023, PMI moved to acquire full ownership of Syqe Medical, further underlining its commitment to cannabis-based medical technology. “This isn’t a short-term play,” Grey says. “It’s a long-term, research-driven strategy.”
Preparing for a Generational Shift
PMI’s strategy also reflects broader changes in consumer behavior. Grey explains, “Younger adults are increasingly turning away from tobacco and alcohol and embracing cannabis. Big Tobacco is paying attention to these shifts.” Like BAT’s “Beyond Nicotine” division, PMI is looking to cannabis as part of its future consumer health portfolio.
Dan Ahrens, Managing Director at AdvisorShares, views PMI’s measured approach as strategic: “Big Tobacco has dipped into the cannabis space, mostly in Canada. But they’re clearly waiting on U.S. federal reforms before going bigger.”
Todd Harrison, founder of CB1 Capital, adds that the pace of industry convergence will continue to depend heavily on regulatory developments: “Tobacco and alcohol have circled cannabis for years, but their involvement is still shaped by policy.”
Carving Its Own Path in Cannabis
While Altria invested $1.8 billion in Cronos Group and BAT entered a CAD 125 million R&D partnership with Organigram, PMI’s strategy stands apart. Its focus on medical cannabis, rather than recreational or lifestyle products, sets it on a distinct course.
“PMI’s partnership with Avicanna is part of a broader trend,” says Grey. “But while other companies focus on brand-building and consumer markets, PMI is investing in evidence-based medicine and R&D.”
Canada’s tightly regulated cannabis environment also offers PMI a low-risk platform to test its strategy. Grey points out, “When cannabis was legalized in Canada, companies like Altria, Constellation Brands, and Molson Coors made big moves, many of which didn’t pan out. Now we’re seeing more deliberate, research-focused investments—PMI’s included.”
Why Avicanna?
Avicanna brings strong credentials to the table. In 2023, it acquired Shoppers Drug Mart’s medical cannabis platform and folded it into its MyMedi.ca system, which offers pharmacist-guided cannabis care. The company has also collaborated with global players like Daabon and operated out of Johnson & Johnson’s JLABS incubator.
Unlike some cannabis companies with larger market caps, Avicanna has remained focused on medical cannabis since its founding. It has prioritized R&D, clinical trials, and strategic partnerships over recreational product development. Its collaborations with SickKids Hospital and the University Health Network in Canada target conditions like epilepsy, pain, and dermatological disorders.
Though peers like GW Pharmaceuticals (developer of FDA-approved Epidiolex) and Tilray (which partners with research institutions) are also active in medical cannabis, Avicanna differentiates itself with its integrated patient care model and its emphasis on clinical breadth.
What Comes Next?
PMI’s new partnership has sparked speculation about future acquisitions. “It could follow a similar path as Syqe Medical, where an initial investment turned into full ownership,” says Grey. “But that depends on how the collaboration unfolds—and on regulatory developments.”
Ahrens agrees it’s too early to predict whether PMI will acquire Avicanna, but he sees this as a logical step toward deeper involvement: “They’re clearly laying the groundwork. Canada is a test case, but the U.S. market is the real prize.”
Looking ahead, PMI’s strategy of aligning with Avicanna underscores its vision for a diversified, patient-focused cannabis future. By avoiding the volatility of recreational markets and investing in research-backed therapeutics, PMI positions itself at the forefront of a medical cannabis evolution—one that’s quietly being shaped by global consumer trends and regulatory shifts.
As Harrison puts it, “Traditional consumer packaged goods (CPG) companies have largely stayed on the sidelines. But this is another signal that change is coming. Cannabis is no longer fringe—it’s becoming part of the CPG mainstream.”
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