Biden Government Again Missed Menthol Cigarettes Ban Deadline, Lawsuit Challenges FDA's Delay
Portfolio Pulse from Vandana Singh
The Biden administration has missed another deadline for finalizing the FDA's proposed ban on menthol-flavored cigarettes, a move that has been urged by health and anti-smoking groups due to the product's appeal to young smokers and significant health impacts, especially in Black communities. Altria Group Inc (NYSE:MO) and British American Tobacco Industries (NYSE:BTI) are notably affected, with over 20% of their revenue from menthol products. The delay has led to lawsuits from public health groups and criticism for not addressing public health risks promptly.
April 02, 2024 | 6:56 pm
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NEGATIVE IMPACT
British American Tobacco faces challenges from the menthol ban delay, leading to a write-down of some U.S. brands. Shares are down 0.12%.
British American Tobacco's decision to write down the value of some U.S. cigarette brands due to the uncertainty around the menthol ban indicates a direct financial impact. The delay and potential future ban pose risks to its revenue, likely affecting its stock price negatively in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Altria Group Inc, with significant revenue from menthol products, faces uncertainty due to the delayed menthol ban. Shares are down 0.50%.
The delay in the menthol cigarette ban directly impacts Altria Group Inc's financial outlook, as a significant portion of its revenue comes from menthol products. The ongoing uncertainty and potential future ban could negatively affect its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90