At the end of last week, Avicanna Inc., a commercial-stage, international biopharmaceutical company based in Canada, announced a “scientific and medical affairs” collaboration agreement with Vectura Fertin Pharma, a subsidiary of Philip Morris International (PMI). Avicanna, who specializes in cannabinoid-based medicine, has a clinical R&D department that has led to the commercialization of more than 30 proprietary, evidence-based finished products.
The two companies formed a Scientific and Medical Affairs Committee that will focus on improving the understanding of medical cannabis access and applications in Canada.
“PMI has consistently shown interest in the medical side of cannabis,” Aaron Grey, managing director at Alliance Global Partners, an investment firm highly active in the cannabis space, told Forbes. “Their 2016 investment in Syqe Medical was medical-focused, and this Avicanna partnership continues in that vein. PMI’s public-facing interest in cannabis has been more about the medical side than recreational or consumer products.
“I think this is a multi-decade strategy. Usage trends among young adults are shifting—they’re moving away from tobacco and alcohol and toward cannabis. Big Tobacco sees this and wants to capture that new, growing consumer base. Companies like British American Tobacco have divisions like ‘Beyond Nicotine’ to address these trends, and cannabis is part of that vision. This isn’t just about hedging; it’s about preparing for a long-term consumer shift.”
Forbes’ Javier Hasse wrote that PMI’s entry into Canada’s well-regulated cannabis market gives it a strategic testing ground with an eye on the U.S. market.
“For big tobacco in general, most of the major players have made investments in cannabis,” said Grey. “For example, Altria invested $1.8 billion in Cronos Group, and Imperial Brands invested CAD 125 million in Auxly. In November 2023, BAT invested CAD 125 million in Organigram, forming an investment pool and an R&D partnership. These are all ways Big Tobacco is exploring the cannabis space, and I see PMI’s partnership with Avicanna as part of that broader trend.”