World's Largest Tobacco Company Is Investing In Medical Cannabis: Here's What To Know

As cannabis goes global, some of the world's largest companies are starting to show their hand. One of them is Philip Morris International Inc. (NYSE:PM), the world's biggest tobacco company by market cap and one of the most deliberate players in the cannabis space.

While peers like Altria and British American Tobacco (BAT) have made splashier moves into recreational marijuana markets, PMI has taken a quieter, more clinical approach: targeting medical cannabis, forming R&D alliances and testing products in tightly regulated markets like Canada.

While often overlooked, its cannabis strategy is beginning to take shape, and its latest partnerships suggest this is just the beginning.

A Decade In The Making: PMI's Measured Cannabis Timeline

PMI's interest in cannabis began almost a decade ago. In 2016, it made a strategic investment in Syqe Medical, an Israeli company known for its precision-dose cannabis inhaler. That investment eventually culminated in full acquisition in 2023, marking PMI's first major cannabis takeover.

Fast forward to 2024–2025, and PMI's footprint has expanded through its pharmaceutical and wellness subsidiary, Vectura Fertin Pharma:

• In September 2024, Vectura launched its first cannabis product, the Luo CBD lozenge, distributed via a partnership with Aurora Cannabis Inc. (NASDAQ:ACB) and its Canadian medical platform.
• In January 2025, PMI and Avicanna Inc. (OTC:AVCNF), a cannabinoid-focused biopharma company, announced a medical and scientific collaboration to further research and patient access through Avicanna's MyMedi.ca platform.

"PMI has consistently shown interest in the medical side of cannabis," said Aaron Grey, managing director at Alliance Global Partners, in a Forbes interview. "This seems like a continuation of that strategy."

Medical First, Consumer Later?

PMI's strategy stands in stark contrast to Altria, which invested $1.8 billion in Cronos Group, and BAT, which has a CAD 125 million partnership with Organigram. Those moves have largely centered on consumer products or adult-use cannabis.

PMI, by contrast, is avoiding recreational markets for now and focusing on evidence-based, dose-controlled therapeutics that fit within healthcare systems. Its partner Avicanna is a good example: the company works with SickKids Hospital, the University Health Network and was formerly part of Johnson & Johnson's JLABS incubator.

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"This is a multi-decade strategy," Grey said. "Big Tobacco sees usage trends shifting among younger consumers, away from tobacco and alcohol and toward cannabis. PMI is playing the long game."

Why Canada?

PMI's recent activity is centered in Canada, where federal regulations allow for robust medical cannabis distribution and clinical validation.

Its 2024 partnership with Aurora introduced a novel, dissolvable CBD lozenge for patients, manufactured by Vectura's subsidiary Cogent and offered through Aurora's direct-to-patient network.

"The launch will enable us to make a meaningful impact to patients and to validate our product’s proposition through real-world patient data," said Michael Kunst, CEO of Vectura Fertin Pharma, in a statement.

Meanwhile, the Avicanna partnership helps PMI integrate into Canada's pharmacist-led medical system, aligning with its reputation-driven, regulatory-first approach.

Analysts Weigh In: A Cautious But Serious Entry

Some believe PMI's partnerships could lead to acquisitions, much like the Syqe Medical trajectory.

"This could follow a similar path," Grey said, "depending on how the collaboration performs."

Others urge patience.

"It's way too early to say," said Dan Ahrens, managing director at AdvisorShares. "We've seen limited activity so far and we believe companies like PMI are waiting for broader regulatory clarity, particularly in the U.S."

"The rate and pace of integration will be dictated by the regulatory landscape," Todd Harrison, founder of CB1 Capital, added on Forbes. "But this is yet another proof point of the eventual entry of traditional CPG."

The Bottom Line

Rather than pursuing high-visibility consumer trends, Philip Morris is investing in infrastructure, focusing on product validation and building a presence in the medical cannabis sector.

In doing so, it's laying the foundation for a more permanent role in the global cannabis market, which doesn't rely on flashy branding but on science, patient access, and regulatory credibility.

As the industry matures, PMI's strategy may prove more durable than louder, riskier entries. And if the U.S. eventually legalizes cannabis at the federal level, don't be surprised if Philip Morris is already in position, ready to scale what it has quietly built.

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