22nd Century Uniquely Positioned To Take Advantage Of New FDA Regulations

22nd Century Uniquely Positioned To Take Advantage Of New FDA Regulations

Lowering levels of nicotine can possibly decline the future generations' chance of addiction to cigarettes and let more smokers who are presently addicted to quit, as almost 90% of the adult smokers began smoking prior to 18 years of age and in the USA, each day, approximately 2,500 young people smoke their first cigarette.

The US government is aiming to cut nicotine in cigarettes to "non-addictive" levels, hoping to push smokers toward potentially less harmful e-cigarettes. The FDA commissioner, envisions a world where cigarettes no longer create or sustain addiction, and that less harmful alternative sources are used to appease nicotine addiction.

"Despite the initial anxiety, we do not see the FDA's landmark decision as a frontal attack on the industry (only on combustibles) as we do not think the FDA will eventually ban nicotine across all tobacco products", the bank said. It must take into account the problems observed with previous low-nicotine cigarettes, namely that people smoke more and inhale more deeply to get the same nicotine hit.

Concerns have been raised that the FDA's initiative could lead some users to smoke more cigarettes to make up for the lower levels of nicotine, or black markets for higher nicotine cigarettes may emerge.

Dr. Scott Gottlieb, FDA Commissioner, delivered the address, which introduced a new era of tobacco regulation for the agency.

British American Tobacco, which recently completed its £41.7 billion ($54.7 billion) of Reynolds American Inc., saw cigarette volumes in its Americas business fall 5.4% to 53 billion, the company said Friday, although profits rose 12.2% to £616 million.

For Matthew Myers, who heads Campaign for Tobacco-Free Kids, it was a good overall move but hit the e-cigarettes delay as "a serious error".

Under expected revised timelines, applications for newly regulated combustible products, such as cigars, pipe tobacco and hookah tobacco, would be submitted by August 8, 2021, and applications for non-combustible products such as ENDS or e-cigarettes would be submitted by August 8, 2022, as Convenience Store News previously reported. But what causes maximum damage is the presence of nicotine, as it is the one responsible for causing addiction. Big Tobacco players are going to need a plan of action to navigate this changing regulatory landscape and 22nd Century Group has the proprietary technology to make it happen.

Gottlieb also held out the possibility that premium cigars would be exempted from FDA oversight, but the overall outlook for traditional tobacco products appeared grim.

The new enforcement policy will not affect any current requirements for cigarettes and smokeless tobacco, only the newly-regulated tobacco products such as cigars and e-cigarettes. It plans to frame rules combining safety with e-cigarettes' role to help smokers give up smoking.

"On the contrary, the USA is the first country to potentially adopt a "risk continuum" approach, accelerate the switch to Novel Nicotine Products and to encourage developing lower-risk offerings".

"Importantly, we expect the FDA will encourage continued RRP innovation with the goal of increasing adoption of these products - a huge positive for MO [Altria Group] and PM [Phillip Morris International]", said Bonnie Herzog, managing director of Wells Fargo Securities.

The FDA rolled out a second major announcement at the same time.