Categories Markets

FDA adds restrictions on sale of e-cigarettes

The US Food and Drug Administration (FDA) is bringing new restrictions to the sale of e-cigarettes to put an end to the “alarming” increase in vaping among teenagers. According to data collected by the agency, there was a 78% increase in vaping among high school students and a 48% increase among middle school students.

Sale of flavored e-cigarettes, except menthol, will be banned at places where the under-aged can purchase them. According to the FDA data, over 3.6 million school students currently use e-cigarettes.

e-cigarette restriction FDA
Courtesy: Wikimedia Commons

The move comes two months after the FDA Commissioner Scott Gottlieb tasked the cigarette makers to come up with an action plan to reduce addiction among teenagers. Altria (MO), British American Tobacco, Imperial Brands, and Japan Tobacco were asked to submit reports on the same before November 11.

Gottlieb has also set certain policies for the sale of these products, which, if violated, may lead to the products being pulled out of stores.

Altria shares were down 1.9% during intra-day trading following the announcement. Meanwhile, peer tobacco company Philip Morris International (PM) was almost flat on Thursday. Both companies have been hit hard by the crackdown on cigarette consumption by the FDA. During the past 52 weeks, Altria shares have been down 10.7%, while PM is down 16%.

Manufacturers who wish to sell flavored e-cigarettes in the future will now need to get it tested and authorized by the FDA. Gottlieb added that the products that are currently available in the market will also see a round of testing.

Altria was the first to respond to FDA’s latest requirements. The company said it would remove MarkTen pod-based products and would stop selling flavored products.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

2 thoughts on “FDA adds restrictions on sale of e-cigarettes

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top