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Tobacco stocks take a dive following FDA announcement

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Tobacco stocks drop steeply following a press release from FDA. It was announced, by the US Food and Drug Administration (FDA) that a new well-documented plan for nicotine regulation and tobacco under which PreMarket Tobacco Application (much disputed) will be suspended until 2022. In addition, this anti-smoking method also lets in a plan to remove nicotine from combustible cigarettes which are expected to be in effect in 2021.

“Innovative potential must be recognized to result in less dangerous products which could partly be a solution under FDA’s oversight.” Dr. Scoth Gttlieb, FDA Commissioner.

The effort for nicotine level reduction is regarded by people as a massive effort to cut down the rate at which people smoke. “We are inspired today by Commissioner Gottlieb’s announcement concerning the extension of PMTA submission delay till 2022. It’s a wise decision and a needful delay. However, the well-known rule as a whole still remains unchangeable and yet to be considered the harm reduction possibility of e-cig. We have the instinct that this extension only permits an opportunity in a period of time to ensure a sustainable future for our company in the form of the right regulation and even an update on legislation.

A setback for the Tobacco industry

After the announcement made by the FDA, British American Tobacco’s (BAT) stock dived as much as 14 %, Altria shares dropped by 19% and Imperial Brands shares dropped by 9.5%. Tobacco stocks dived immediately after FDA’s announcement and lots of people can’t wait for the motion to cause a lobbying battle at the US capitol. “This was a big surprise and will make it imperative that domestic tobacco companies strive to develop innovative, safer products,” said Jack Russo, an analyst at Edward Jones & Co.

All attention on Nicotine

Gottlieb spoke in his press release addresses Nicotine as both being part of the solution and also as the cause of the problem by addiction. Gottlieb says further, Nicotine compound doesn’t assure full safety and complete good health. The major challenge is the means at which nicotine is delivered to the body. All you have to do is mix it up with smoking particles from burning cigarettes and the delivery mechanism will be impotent.

But if you attach a medicinal product to the same nicotine without the presence of other chemicals in tobacco products, these therapeutic products has proven to be effective and safe by FDA to aid smoking cessation. Moreover, nicotine replacement products such as lozenges, patches, and gum don’t demand any prescription from the doctor. FDA Commissioner says. The point is that Nicotine has many delivery means that are safer.

A focus shift and a come through for public health for Big Tobacco

It is good news for the health experts of the general public. The entire big tobacco companies have successfully launched their electronic devices even over US$3billion has been spent by Philip Moris in the struggle to meet up with the needs of its iQOS in Asia and in the development of safer alternatives.

Nicotine seems to be gaining all attention these days. Dr. Kostantinos Farsalinos who is a Public Health Expert, concur that the delivery of nicotine plays an essential role in as a harm reduction mechanism in smokers who are attempting on quitting smoking and switching to a more secure alternative. As a matter of fact, Dr. Kostantinos Farsalinos was a lead author of a study published last week on NCBI titled “Nicotine delivery to the aerosol of a heat-not-burn tobacco product”. 


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Nicotine is an extremely addictive substance, please keep out of reach of children. If ingested please seek immediate medical assistance. Electronic cigarettes are not a smoking cessation device or method. If you wish to stop smoking please contact your local NHS or General practitioner for advice on how to do so. These products are intended for those who are looking for an alternative to traditional tobacco cigarettes.


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