FDA Approves Tobacco-Flavored Vuse Alto E-Cigarettes: Details
Portfolio Pulse from Shivani Kumaresan
The FDA has granted marketing orders to R.J. Reynolds Vapor Company, a subsidiary of British American Tobacco (NYSE: BTI), for its Vuse Alto Power Unit and six tobacco-flavored pods. This decision follows an extensive scientific review and is aimed at protecting public health by providing a potentially safer alternative for adult smokers. However, the FDA has imposed stringent marketing restrictions to mitigate youth use. BTI shares are trading slightly higher in premarket trading.
July 19, 2024 | 12:37 pm
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The FDA has granted marketing orders for Vuse Alto tobacco-flavored e-cigarettes, produced by R.J. Reynolds Vapor Company, a subsidiary of British American Tobacco (NYSE: BTI). This decision is expected to provide a safer alternative for adult smokers while imposing stringent marketing restrictions to prevent youth use.
The FDA's decision to grant marketing orders for Vuse Alto tobacco-flavored e-cigarettes is a positive development for British American Tobacco. It allows the company to continue selling these products in the U.S., potentially increasing its market share. The stringent marketing restrictions imposed by the FDA to mitigate youth use are a necessary measure but do not significantly detract from the overall positive impact of the approval. The slight increase in BTI's premarket trading price reflects investor optimism.
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