A Canadian cannabis company, Avicanna, recently entered into a research project with an international healthcare and wellness product company, Vectura Fertin Pharma, focusing on cannabinoid-based products.

The agreement between the two companies will create a joint Scientific and Medical Affairs Committee focused on improving understanding of medical cannabis access and applications in Canada. 

Vectura Fertin Pharma was formed in March 2022 following Philip Morris International’s (PMI) acquisition of Fertin Pharma, Vectura Group PLC, and OtiTopic. Vectura’s website states that it operates as a separate company under PMI’s ownership.

Avicanna is focused on cannabinoid-based products and operates the medical cannabis care platform MyMedi.ca, the Medical Cannabis brand RHO Phyto, as well as focusing on R&D and clinical development.

The company also acquired Medical Cannabis from Shoppers Drug Mart in 2023, which it transitioned to the MyMedi platform. 

In their most recent quarterly report, North American net revenue for Avicanna for the nine months ended September 30, 2024, was $17.5 million, compared to $10.4 million for the nine months ended September 30, 2023. The increase over the nine months was a direct result of the acquisition of Medical Cannabis by Shoppers and the introduction of MyMedi. 

This is not the first entry of a tobacco company into the Canadian cannabis market or the first for Philip Morris, even if indirectly. In 2016, the company invested US$20 million in the Israeli company Syqe Medical. Syqe created an inhaler for use with cannabis for medical purposes. 

In 2019, Altria Group, the parent company of Philip Morris USA, paid C$2.4 billion for a 45% ownership interest in Cronos Group, the Canadian cannabis company behind brands like Spinach and Peace Natural. Altria later declined options to purchase additional shares.

It’s not only American tobacco companies connected to the Canadian cannabis industry. In 2019, Imperial Brands, a British multinational tobacco company, invested C$123 million in Canada’s Auxly Cannabis Group. That deal also included a research and development partnership similar to other deals. 

In 2021, Organigram Holdings Inc. announced a C$221 million strategic investment from a wholly-owned subsidiary of British American Tobacco (BAT). The deal has continued to evolve over the years. A third round of funding is expected in early 2025.

In 2023, Organigram said most of a $124.6 million investment from BAT would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion.

In 2024, Organigram announced a $21 million investment from its Jupiter strategic investment pool, which gave it a minority stake in German cannabis company Sanity Group GmbH and gave it a foothold in the German market.

In the same year, Organigram also announced a USD$2 million minority investment in Steady State LLC (dba Open Book Extracts or OBX) from the Jupiter fund. Based in North Carolina, OBX specializes in cannabinoid ingredient production and serves as a one-stop formulation and finished goods manufacturer.

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