Woman holding an Juul e-cigarette while walking in New York, USA, September 27, 2018. REUTERS / Brendan McDermid
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June 22 (Reuters) – The US Food and Drug Administration is preparing to order Juul Labs Inc to remove its e-cigarettes from the market in the United States, the Wall Street Journal reported on Wednesday, citing sources.
Shares of tobacco giant Altria Group Inc (MO.N), which has a 35% stake in Juul, fell 8% in morning trading after the report said the agency’s decision could arrive as early as Wednesday.
The verdict comes about two years after the manufacturer of vaping products applied for approval to continue selling e-cigarettes in the country, trying to prove that the products offer a net benefit to public health.
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The FDA review will decide whether they are effective in forcing smokers to quit and, if so, whether the benefits to smokers outweigh the harms to the health of new users, including teenagers who have never smoked.
In October, the FDA allowed Juul’s rival from British American Tobacco Plc (BATS.L) to launch its Vuse Solo e-cigarettes and tobacco-flavored pods, making it the first steam product to be approved by the health regulator. Read more
Some experts, including brokerage firm Jefferies, at one point expected Juul to also receive FDA approval.
Altria and the FDA did not respond immediately to Reuters’ requests for comment.
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Report by Praveen Paramasivam in Bengaluru; Edited by Sriraj Kaluvila and Devika Syamnath
Our standards: Thomson Reuters’ principles of trust.
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