Cannabis inhaler startup Syqe lays off a third of its workforce
The startup that developed a cannabis inhaler is laying off 32% of its employees, mainly from the development department. Syqe was founded in 2011 by Perry Davidson and, over the course of its operations, has registered 200 patents.
Israeli pharma-tech company Syqe Medical has laid off 50 of its 154 employees in Tel Aviv, most of them from the development department.
Full list of Israeli high-tech layoffs in 2025
Syqe Medical, led by founder and CEO Perry Davidson and chairman Dr. Eytan Hyam, has developed SyqeAir, a metered-dose inhaler for medical cannabis that enables precise delivery of cannabis directly from the plant’s inflorescence. The inhaler uses a unique cartridge containing dozens of “VaporChips,” each holding a measured dose of cannabis flower, allowing accurate administration according to a doctor’s prescription.
To date, Syqe has raised $83 million from prominent investors, including tobacco giant Philip Morris, Retalix founders Barry Shaked and Brian Cooper, the OurCrowd platform, Shavit Capital, the Martin Bauer Group’s PRM investment arm, and others.
As of now, Syqe Medical has not yet received FDA approval for its cannabis inhaler. In 2023, it was announced that Philip Morris had signed an agreement to acquire Syqe in a deal valued at approximately $650 million. Completion of the acquisition is contingent on securing FDA approval. As part of the transaction, Philip Morris invested $120 million to help fund the approval process. If approval is granted, the acquisition will be finalized, and the inhaler will become an approved prescription drug in the U.S.
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Currently, the inhaler is marketed only in Israel and Australia. International expansion is dependent on successfully navigating the U.S. regulatory process.
In response to the layoffs, Syqe stated: “Syqe is adjusting the company’s structure during the second phase of its clinical trial and is making corresponding changes to its workforce, mainly within the development department. Focusing on the clinical process is a critical step in achieving the company’s goals, including FDA approval, and the company will allocate more resources in this area. In addition, Syqe will continue to expand its activities in subsidized markets, including Israel, through SyqeAir.”
