British American Tobacco
Tobacco giant British American Tobacco (BAT) has announced the launch of a second investment fund as part of its corporate venture arm, Btomorrow Ventures (BTV).
Its first £150 million BTV fund, launched in 2020, has now made investments in 28 companies, including a string of prominent cannabis businesses.
Billed as part of the company’s ‘transformation agenda’, these investments are aimed at diversifying the company’s offering away from tobacco brands, including Dunhill, Lucky Strike and Benson & Hedges.
Its new £200m Fund II will reportedly continue the company’s investment strategy within the ‘wellbeing and stimulation space’, and is expected to further the company’s growing reach within the cannabis space.
To date, BAT has invested in leading Canadian cannabis producer Organigram, acquiring a near 20% stake for approximately £126 million in 2021.
In July 2021, BTV led a $25.4 million Series A financing round for cannabinoid biotechnology research company Trait Biosciences.
A year later, BAT led a $37.6 million Series B financing round for this Berlin-based cannabis health and life-science company, Sanity Group.
The same month, BTV made a strategic investment in Kanvas, a company specialising in cannabis vaporisation technology solutions, and participated in cannabinoid ingredient manufacturer and product development company OBX’s Series C financing round.
The growing presence of tobacco investment in the cannabis space has become a divisive topic, with many in the cannabis industry accusing companies such as BAT and Philip Morris International of using cannabis to ‘greenwash’ their companies’ reputations.
However, given the continued lack of institutional investment in the cannabis industry and the financial heft behind these tobacco giants, some see it as a necessary was to secure much-needed capital.
Jazz Pharmaceuticals
Bruce Cozzad, the co-founder and CEO of Jazz Pharmaceuticals, has announced his plans to retire following over 20 years at the helm of the multibillion-dollar company.
After co-founding the company in 2003, he took over as CEO in April 2023, overseeing substantial growth and building the company into a dominant force in the European cannabis pharmaceutical market.
Under his leadership, Jazz’s share price rose from around $1 in April 2009 to $125.20 in 2024.
He played a crucial role in the $7bn takeover of GW Pharmaceuticals in 2021, which saw Jazz acquire a number of now ubiquitous cannabis drugs, including Epidyolex and Sativex.
Epidyolex is now approved by regulators in 35 countries and continued to be one of the company’s strongest performers last year, reportedly remaining ‘on track to deliver on its blockbuster potential.’
Over 2023, net product sales increased by 15% to $845.5m, including a 16% year-on-year rise in Q4 to $240.6m.
Cozadd plans to retire by the end of 2025, with Jazz having already begun its search for his successor, and he will remain engaged during and beyond the transition period to ensure operational continuity.
Despite the leadership transition, analysts remain confident in the company’s stability and continued progress.
This week, TD Cowen reiterated its Buy rating, setting a price target of $195. With shares currently trading at $122.77 and analyst targets ranging between $128 and $230, Jazz appears undervalued based on InvestingPro’s Fair Value analysis.
It came as the company presented new evidence gathered from both clinical trials and real-world studies regarding the efficacy of Epidyolex in treating rare forms of epilepsy.
During the American Epilepsy Society (AES) 2024 Annual Meeting earlier this month, Jazz showcased findings highlighting Epidyolex’s efficacy in treating seizures and its broader impact on behavioral and cognitive outcomes for patients with epilepsy and tuberous sclerosis complex (TSC).
One major presentation featured updated analyses from the BECOME-TSC caregiver survey, which quantified improvements in seizure and non-seizure outcomes in patients treated with Epidiolex.
Additionally, data from the EpiCom trial, the first of its kind to explore Epidiolex’s impact on TSC-associated neuropsychiatric disorders (TAND), showed reductions in behavioural symptom severity after treatment initiation.
Dr. Sarah Akerman, M.D., head of neuroscience global medical and scientific affairs at Jazz Pharmaceuticals, emphasised Epidiolex’s significance, stating, “These findings increase our understanding of Epidiolex’s benefits beyond seizure control, addressing unmet needs across a range of epilepsy syndromes for people living with rare epilepsies.”
Synbiotic
European hemp and cannabis group Synbiotic announced a strategic partnership with GOC Nexus Operations GmbH as it continues to ramp up its investment program.
The collaboration includes a strategic investment by Synbiotic, aimed at implementing a cold plasma technology for microbiological decontamination of cannabis. This technology will transform GACP raw materials into EU GMP-compliant medicinal products.
Cold plasma, a method already used in other industries, addresses microbiological decontamination without relying on radiation, heat, or chemicals.
The process reduces microbial presence on cannabis while maintaining product integrity, which is critical for pharmaceutical use. Compared to conventional methods, it produces no hazardous waste, leaves no chemical residues, and consumes minimal energy.
This technology, which has been validated in Canada, is now being adapted for the European market. GOC Nexus is overseeing its EU GMP certification at its Laupheim, Germany facility, with completion expected by mid-2025.
The Laupheim site will serve as a prototype for future facilities, using a modular process environment designed to facilitate scaling.
