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Why Did Big Tobacco Buy the Most Advanced Medical Marijuana Inhaler Company for $650,000,000?

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65000000 for an inhaler company

Phillip Morris, one of the world’s largest tobacco companies, is gradually entering the thriving marijuana industry. Reports indicate that the tobacco giant is acquiring an Israeli med-tech company called Syqe Medical for an impressive sum of $650 million.

 

This isn’t the first time Philip Morris has invested in Syqe; they previously invested $20 million in the company in 2016. Syqe Medical specializes in a pharma-tech product, a metered-dose inhaler designed for pain reduction treatment using medical marijuana.

 

Interestingly, this potential acquisition news coincides with Israel’sIsrael’s National Insurance Institute (NII) collaborating with Syqe to fully cover medical marijuana treatments involving their metered inhaler for victims of terrorism or criminal violence. While the specific details of the deal have not been disclosed officially, reports suggest that it includes various milestones.

Why did Big Tobacco just buy a scientific medical marijuana inhaler company?  Cigarettes sales are declining year over year and Big Tobacco is on a push for “Beyond Nicotine” products that can help them boost revenue and sales.  Cannabis, while still federally illegal in the US, is becoming a big seller wordwide as markets open up.  Phillip Morris can see the writing on the wall 10 years from now and is investing in the technology and patents that come with measured-dose inhalers. This is a 20 year play to dominate a very nacent market that could be worth billions in the long run.

The Biggest Acquisitions in Isreal’s Medical Technologies Sector.

Phillip Morris is planning a strategic investment of $130 million to support Syqe in obtaining FDA approval for its inhaler. Should Syqe successfully secure FDA approval and subsequent positive outcomes in clinical trials, the tobacco giant intends to acquire all of Syqe’s shares for $650 million.

 

The transaction is set to be carried out through Phillip Morris’’ subsidiary, Vectura, a UK-based company specializing in inhaler products for medication delivery. The expertise of Vectura is expected to play a crucial role in obtaining the FDA’s approval, making Syqe the first-ever company to gain FDA approval for utilizing raw cannabis inflorescence as a medical treatment.

 

According to reports, this potential acquisition could mark one of the most significant deals in recent years in Israel’sIsrael’s medical technologies sector.

 

Suppose Syqe is sold for approximately $650 million. In that case, it will join the ranks of the top ten largest cannabis companies, such as Tilray Brands Inc, which currently boasts a market capitalization of $1.1 billion, and Aurora Cannabis, with a market cap of CA$250 million ($190 million). This impressive sum of $650 million would significantly surpass the total investments made in Syqe up to this point, which amount to only $80 million.

 

The forthcoming exit holds significant importance for all of Syqe’s investors. The company’s founder and CEO, Perry Davidson, possesses a substantial stake of over 10%. Other notable investors include OurCrowd, former Retalix founders Barry Shaked and Brian Cooper, GlenRock, Leon Recanati’s investment firm, Shavit Capital, and Bank Discount.

 

Established in 2011 by Perry Davidson, who continues to serve as the CEO, Syqe has amassed around 120 patents through more than eight years of development. The key innovation of Syqe’s inhaler lies in its utilization of raw inflorescence from the cannabis plant rather than processed products and its ability to deliver a precise and measured dose intended for each patient.

 

Currently, more than 80% of medical cannabis consumers rely on smoking and vaping products, which may lead to potential overdoses. Syqe’s inhaler offers relief without causing psychoactive effects from excessive dosing.

Syqe’s Inhaler Market Share and Potential

Currently, Syqe’s inhaler is accessible in relatively small markets, namely Israel and Australia. The Israeli market, estimated at approximately 100 million shekels (around $27.5 million) annually, caters to about 50,000 medical cannabis patients.

 

Despite its limited presence in these smaller markets, Syqe’s inhaler offers a distinct advantage over the prevailing trend. With over 80% of medical cannabis consumers relying on smoking and vaping products, which may lead to potential overdoses, Syqe’s inhaler provides a safer alternative that delivers relief without inducing psychoactive effects from excessive dosing.

 

Syqe’s primary focus lies beyond Israel, with its pivotal goal being the FDA approval process in the United States. This milestone is of utmost importance for the company, and Philip Morris’ expertise channeled through Vectura will play a vital role in attaining this approval. Should they succeed, Syqe will make history as the first company worldwide to obtain FDA approval for utilizing raw cannabis inflorescence as a medicine.

 

Philip Morris, renowned for its Marlboro brand, stands as one of the largest cigarette manufacturers on a global scale, boasting a staggering valuation of $154 billion on Wall Street. In response to the declining popularity of traditional cigarettes, the company aims to reinvent itself, with over a third of its revenue now stemming from smokeless products, including the iQOS electronic cigarette.

 

Philip Morris launched a “beyond nicotine” strategy a few years ago, broadening its product range to include botanicals like chamomile and fennel and sleep and relaxation aids. Despite recent market shifts, the cannabis business remains a potential growth engine for tobacco corporations.

 

According to Philip Morris, the medical cannabis business is worth $24 billion and is expected to expand at a 15% yearly rate through 2030. Furthermore, the wellness sector, which includes cannabis-based sedatives and sleep aids, is estimated to be worth an additional $4 billion, with an expected growth rate of 8%. Syqe, on the other hand, declined to comment on the situation.

 

As the landscape evolves, Philip Morris and Syqe are at the forefront of an evolving market, capitalizing on innovations and shifting consumer preferences.

Conclusion

The potential acquisition of Syqe Medical by Phillip Morris represents a significant strategic move for the tobacco giant, signaling its entry into the flourishing marijuana industry. With an initial investment of $130 million to support Syqe’s FDA approval process, followed by a possible $650 million acquisition, this deal can potentially make Syqe one of the largest cannabis companies globally. Moreover, Syqe’s innovative inhaler, utilizing raw cannabis inflorescence, could secure FDA approval, positioning the company as a trailblazer in the medical cannabis sector.

 

For Syqe’s investors, including founder and CEO Perry Davidson, this exit holds immense significance, promising substantial returns on their investments. Additionally, Philip Morris’ “beyond nicotine” strategy underscores its efforts to adapt to changing market dynamics as it seeks new growth avenues beyond traditional cigarettes.

 

While Syqe’s inhaler operates in relatively small markets like Israel and Australia, its ambition to obtain FDA approval in the United States positions it for exponential growth and international recognition. With such exciting developments in play, the partnership between Philip Morris and Syqe could reshape the cannabis industry and set new standards for medical cannabis treatments worldwide.

 

MORE ON SYQE, READ ON…

CANNABIS INHALER IN ISRAEL

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Latest Trump Weed Rumor – Trump Will Federally Deschedule and Decriminalize Cannabis, but Not Legalize It

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In a recent interview, former New Jersey Governor Chris Christie made headlines by asserting that President-elect Donald Trump will pursue significant reforms in federal policies regarding marijuana and cryptocurrency. As the nation grapples with evolving attitudes toward cannabis and the burgeoning digital currency market, Christie’s predictions have ignited discussions about the potential implications of such changes on both industries. This article delves into Christie’s insights, the current state of marijuana and cryptocurrency regulations, and the broader implications of these anticipated reforms.

 

The Current Landscape of Marijuana Legislation

 

Federal vs. State Laws

Marijuana remains classified as a Schedule I substance under the Controlled Substances Act (CSA), which places it in the same category as heroin and LSD. This classification has created a complex legal landscape where states have moved to legalize cannabis for medical and recreational use, while federal law continues to impose strict prohibitions. As of now, over 30 states have legalized marijuana in some form, leading to a burgeoning industry that generates billions in revenue.

 

Challenges Faced by the Cannabis Industry

 

Despite its legality in many states, the cannabis industry faces significant hurdles due to federal restrictions. These challenges include:

  • Banking Access: Many banks are hesitant to work with cannabis businesses due to fear of federal repercussions, forcing these businesses to operate largely in cash.

  • Taxation Issues: The IRS enforces Section 280E of the tax code, which prohibits businesses engaged in illegal activities from deducting normal business expenses, leading to disproportionately high tax burdens for cannabis companies.

  • Interstate Commerce: The lack of federal legalization prevents cannabis businesses from operating across state lines, limiting their growth potential.

 

Chris Christie’s Perspective on Marijuana Reform

 

Christie, a former presidential candidate known for his tough stance on drugs during his tenure as governor, has evolved his views on marijuana over the years. In his recent statements, he emphasized that Trump is likely to pursue descheduling cannabis, which would remove it from the Schedule I classification. This move would not only provide clarity for businesses operating in legal markets but also open avenues for banking and investment.

 

Christie highlighted that descheduling would allow for a more regulated market where safety standards could be established, thus protecting consumers. He believes that this approach aligns with a growing consensus among Americans who support legalization and recognize the potential benefits of cannabis use for both medical and recreational purposes.

 

The Future of Cryptocurrency Regulation = The Rise of Cryptocurrencies

 

Cryptocurrencies have surged in popularity over the past decade, with Bitcoin leading the charge as the first decentralized digital currency. The market has expanded to include thousands of alternative coins (altcoins), each with unique features and use cases. As cryptocurrencies gain traction among investors and consumers alike, regulatory scrutiny has intensified.

 

Current Regulatory Challenges

 

The cryptocurrency market faces several regulatory challenges that hinder its growth and adoption:

 

  • Lack of Clarity: Regulatory frameworks vary significantly across states and countries, creating confusion for investors and businesses.

  • Fraud and Scams: The rapid growth of cryptocurrencies has led to an increase in fraudulent schemes targeting unsuspecting investors.

  • Consumer Protection: Without clear regulations, consumers are often left vulnerable to risks associated with volatile markets.

 

Christie’s Vision for Crypto Regulation

 

Christie believes that under Trump’s leadership, there will be an effort to find a “sweet spot” for cryptocurrency regulation balancing innovation with consumer protection. He argues that overly stringent regulations could stifle growth in this emerging sector while too little oversight could expose consumers to significant risks.

 

In his view, a balanced regulatory framework would include:

 

1. Clear Definitions: Establishing clear definitions for different types of cryptocurrencies and tokens to differentiate between securities and utility tokens.

2. Consumer Protections: Implementing measures to protect investors from fraud while promoting transparency within the market.

3. Encouraging Innovation: Creating an environment conducive to innovation by allowing startups to thrive without excessive regulatory burdens.

 

Christie’s insights reflect a growing recognition among policymakers that cryptocurrencies are here to stay and that appropriate regulations are necessary to foster growth while safeguarding consumers.

 

Implications of Proposed Reforms

 

Economic Impact

 

The potential reforms proposed by Christie could have far-reaching economic implications:

 

  • Job Creation: Legalizing marijuana at the federal level could lead to significant job creation within the cannabis industry—from cultivation and production to retail sales.

  • Investment Opportunities: Descheduling cannabis would open up investment opportunities for institutional investors who have been hesitant due to federal restrictions.

  • Boosting Local Economies: Legal cannabis markets have proven beneficial for local economies through increased tax revenues and job creation.

 

Similarly, clear regulations around cryptocurrencies could stimulate investment in blockchain technology and related industries, fostering innovation and economic growth.

 

Social Justice Considerations

 

Both marijuana legalization and sensible cryptocurrency regulations have social justice implications:

 

  • Addressing Past Injustices: Legalizing marijuana could help rectify past injustices related to drug enforcement policies that disproportionately affected marginalized communities.

  • Financial Inclusion: Cryptocurrencies offer opportunities for financial inclusion for those underserved by traditional banking systems, particularly in low-income communities.

 

Political Landscape

 

The political landscape surrounding these issues is complex. While there is bipartisan support for marijuana reform among certain lawmakers, challenges remain in overcoming entrenched opposition. Similarly, cryptocurrency regulation has garnered attention from both sides of the aisle but requires collaboration to establish effective frameworks.

 

Conclusion

 

Chris Christie’s predictions about President-elect Donald Trump’s approach to federal marijuana descheduling and cryptocurrency regulation suggest a potential shift in U.S. policy that could significantly reshape both industries. As public opinion evolves on these issues, lawmakers have an opportunity to enact meaningful reforms that promote economic growth while ensuring consumer protection. The anticipated changes could foster a more robust cannabis industry that contributes positively to the economy and addresses social justice concerns, while clear regulatory frameworks for cryptocurrencies could encourage innovation and protect consumers in the digital economy. Stakeholders in both sectors are closely watching these developments, eager to see how potential reforms might impact their futures. While the realization of Christie’s predictions remains uncertain, it’s clear that the conversation around marijuana and cryptocurrency regulation is ongoing and far from settled.

 

TRUMP 2.0 ON CANNABIS REFORM, READ ON…

TRUMP ON MARIJUANA REFORM

TRUMP 2.0 ON FEDERAL CANNABIS REFORM – WHAT DO WE KNOW?

 



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Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em

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On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!

Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:

  1. Panelists:
    • Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
    • Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
    • Fred Rocafort: Trademark attorney working closely with the cannabis team.
  2. Election Results Overview:
    • Most 2024 cannabis ballot measures did not pass.
    • Florida, South Dakota, and North Dakota saw failures.
    • Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
  3. Federal and State-Level Developments:
    • Medical use is currently legal in 38 states, and 24 states allow recreational use.
    • Republican support for marijuana legalization is growing.
  4. Federal Policy Implications:
    • Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
    • Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
  5. International and Domestic Trade:
    • Schedule III status could ease import/export restrictions on cannabis.
    • Unified control of House, Senate, and presidency might expedite legislative progress.
  6. Economic and Industry Impact:
    • Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
    • Federal legalization and banking reforms are crucial for industry stability and growth.
  7. Future Outlook:
    • The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
    • State-level initiatives and regulatory developments will continue to shape the industry.

Watch the replay!



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I Had Just One Puff

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one puff of a joint a drug test

“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.

 

The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.

 

Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.

 

Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.

 

THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.

 

THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.

 

The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.

 

The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.

 

Detection Windows for Various Cannabis Drug Tests

 

Urine Tests

Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.

 

Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:

 

– Single-use (e.g., one joint): up to 3 days

– Moderate use (around 4 times a week): 5–7 days

– Chronic use (daily): 10–15 days

– Chronic heavy use (multiple times daily): over 30 days

 

Blood Tests

Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.

 

Saliva Tests

THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.

 

Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.

 

In areas where cannabis is illegal, saliva testing is often used for roadside screenings.

 

Hair Tests

Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.

 

Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.

 

Factors Affecting THC and Metabolite Retention

 

The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.

 

Other factors are specific to cannabis use, including:

 

– Dosage: How much you consume

– Frequency: How often you use cannabis

– Method of consumption: Smoking, dabbing, edibles, or sublingual

– THC potency: Higher potency can extend detection time

 

Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.

 

How Quickly Do the Effects of Cannabis Set In?

 

When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.

 

The psychoactive component THC produces a “high” with common effects such as:

 

– Altered senses, including perception of time

– Mood changes

– Difficulty with thinking and problem-solving

– Impaired memory

 

Other short-term effects can include:

– Anxiety and confusion

– Decreased coordination

– Dry mouth and eyes

– Nausea or lightheadedness

– Trouble focusing

– Increased appetite

– Rapid heart rate

– Restlessness and sleepiness

 

In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.

 

Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:

 

– Cognitive issues like memory loss

– Cardiovascular problems including heart disease and stroke

– Respiratory illnesses such as bronchitis or lung infections

– Mood disorders like depression and anxiety

 

Cannabis use during pregnancy can negatively impact fetal growth and development.

 

Duration of Effects

Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.

 

Bottom Line

The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.

 

PEE IN A CUP COMING UP, READ ON..

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HOW LONG DOES WEED STAY IN YOUR URINE FOR A DRUG TEST?



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