The US Food and Drug Administration is set to order Juul Labs Inc to pull its e-cigarettes from the US market, The Wall Street Journal reported on Wednesday (June 22), citing people familiar with the matter.
Shares of tobacco giant Altria Group MO.N, which owns a 35% stake in the maker of the vaping product, fell 8.5% following the report. The decision could come as early as Wednesday, according to the report.
Juul has come under intense scrutiny from regulators, lawmakers and state attorneys general over the appeal of its nicotine products to teens. Under pressure, the company in late 2019 halted US sales of several flavors.
The FDA declined to comment on the report, while Altria and Juul did not respond to requests for comment from Reuters.
The impending verdict comes nearly two years after Juul applied for permission to continue selling e-cigarettes in the country.
The FDA’s review of the applications aimed to determine whether e-cigarettes are effective in getting smokers to quit smoking and, if so, whether the benefits to smokers outweigh the harms to the health of new users. , including adolescents.
In October, the FDA cleared Juul rival British American Tobacco Plc BATS.L to market its Vuse Solo e-cigarettes and tobacco-flavored pods, the first-ever vape product to gain regulatory clearance. of health.
The estimated fair value of Altria’s investment in Juul was $1.6 billion at the end of March, a fraction of the $12.8 billion paid in 2018 as the vaping crackdown upended the market. once fast-growing industry.
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Post expires at 8:26pm on Sunday July 3rd, 2022