The Food and Drug Administration’s chief said on Thursday that the agency is planning to meet with the chief executives of e-cigarette makers to discuss their commitments to help stop a “youth epidemic.” Scott Gottlieb added via Twitter that some executives appear to have backed down from “commitments made to FDA and the public.”
YOUTH EPIDEMIC: In a series of tweets, FDA’s Scott Gottlieb said that, “I’m deeply concerned that kids use of e-cigs is accelerating, and we could see sharp rises in middle and high school use of e-cigs in 2019, on top of the 78% increase in teen use 20118; even despite interventions we’ve already taken and more steps we’ll soon implement… We’ll apply the new actions we announced to confront these trends. But data I’ve seen raises alarm. There’s no reason manufacturers must wait for #FDA to more forcefully address the epidemic. Yet some already appear to back away from commitments made to FDA and the public… I’m writing CEOs of e-cig manufacturers asking them to meet to discuss commitments they made last month, and why some are changing course. This is an urgent matter. We’re at a critical juncture. The opportunity for harm reduction for adults could be lost for a generation… The vaping community that supports harm reduction for adults should also focus more of their efforts on select manufacturers that are primarily responsible for the youth epidemic if, like #FDA, they seek to preserve these opportunities as a way to transition adult smokers… The #FDA continues to conduct our own inquiries and/or investigations of e-cig makers related to marketing activities and other product-related issues. I’ll be reaching out to CEOs to schedule new meetings. Manufacturers and management are accountable for the youth epidemic.”
FDA RESTRICTIONS: Last month, the FDA announced restrictions on flavored tobacco products, including electronic cigarettes that are very popular among teenagers. Additionally, the agency also restricted sale of fruity or sweet flavors at retail outlets. Several e-cigarette makers, including tobacco giant Altria Group (MO) and JULL Labs, voiced their support. In a statement at the time, Altria said it welcomed FDA’s efforts “to address the underage use of e-vapor products. That is why we believe Congress should raise the legal age of purchase for all tobacco products to 21. We also applaud FDA's continued recognition of the potential for innovative, less harmful products that can deliver nicotine to adults who want them.” Last week, Altria announced a $12.8B investment in JUUL Labs, which it called "the U.S. leader in e-vapor." Altria's investment represents a 35% economic interest in JUUL.
WHAT’S NOTABLE: 22nd Century Group (XXII) announced that it has submitted a Modified Risk Tobacco Product, or MRTP, application with the FDA for the company's Very Low Nicotine Content, or VLNC, cigarettes. "22nd Century's proposed VLNTM cigarettes, the subject of the MRTP application, are made with the company's proprietary VLNTM tobacco and, as a result, contain very low levels of nicotine...22nd Century's MRTP application joins the company's previously filed Premarket Tobacco Application. Together, these important applications seek the FDA's authorization to commercialize the company's VLNTM cigarettes and to advertise that the VLNTM cigarettes contain 95% less nicotine as compared to the 100 leading cigarette brands in the United States," the company stated.
PRICE ACTION: In afternoon trading, shares of Altria have dropped almost 1% to $48.15, while Philip Morris (PM) stock has slipped about 2% to $65.61. Shares of British American Tobacco (BTI) are fractionally up to $31.21.
Altria Group
-0.33 (-0.68%)
Philip Morris
-1.32 (-1.97%)
British American Tobacco
-0.0808 (-0.26%)
22nd Century
+0.03 (+1.27%)