Categories Analysis, Consumer

Ban threat looming large over e-cigarette industry

In the backdrop of six fatalities in the US relating to vaping, the Donald Trump administration may soon impose a blanket ban on e-cigarettes. After a meeting with President Trump, US health secretary Alex Azar said a ban on flavored e-cigarettes may soon be in place, in a move to reign its rampant use.

Several hundred people have been affected by a mysterious lung disorder following the use of these vapors, while six of them have died. The incidents come amidst rising criticism of increasing use of e-cigarettes among teenagers.

juul
Photo by Jordan Whitfield on Unsplash

According to the data collected by the FDA last year, there is a 78% increase in vaping among high school students and a 48% increase among middle school students.

Shares of Altria (NYSE: MO), which owns a 35% stake in popular e-cigarette brand JUUL Labs, fell 0.8% during mid-day trading on Wednesday. The stock has declined 11% since the beginning of this year.

The US Food and Drug Administration (FDA) will prepare a set of guidelines for vapors, which will be finalized in a few weeks.

READ: Tobacco giants Philip Morris and Altria confirm merger talks

Earlier this week, JUUL received a letter of warning from US regulators for promoting its products as a safer alternative to the tobacco counterparts. The firm had not obtained approval from the FDA before making the claim. The company management had said it would cooperate with the concerns raised by the officials.

JUUL needs to respond to the FDA within 15 days.   

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Lennar (LEN) believes that despite near-term challenges, the long-term prospects for housing remain strong

Shares of Lennar Corporation (NYSE: LEN) were down 3% on Monday. The stock has dropped 36% year-to-date and 25% over the past 12 months. The homebuilder delivered mixed results for

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top