Vaping stocks are on the move.
British American Tobacco (BTI) is up about 80 cents to $35.53. Altria (MO) is up about 75 cents to $47.90. Philip Morris (PM) is up about $1.64 to $97.21.
All after the US FDA authorized marketing for an e-cigarette for the first time in the U.S.
According to the agency, “The U.S. Food and Drug Administration announced it has authorized the marketing of three new tobacco products, marking the first set of electronic nicotine delivery system (ENDS) products ever to be authorized by the FDA through the Premarket Tobacco Product Application (PMTA) pathway.”
“The FDA issued marketing granted orders to R.J. Reynolds (RJR) Vapor Company for its Vuse Solo closed ENDS device and accompanying tobacco-flavored e-liquid pods, specifically, Vuse Solo Power Unit, Vuse Replacement Cartridge Original 4.8% G1, and Vuse Replacement Cartridge Original 4.8% G2,” they added.
Helping, the US FDA said data submitted by R.J. Reynolds showed that its Vuse e-cigarettes helped smokers quit or reduce their use of cigarettes.
While that’s great news for vaping stocks now, the US FDA could withdraw its authorization.
According to Mitch Zeller, director of the FDA’s Center for Tobacco Products, as noted by The Washington Post, “the agency would monitor R.J. Reynolds’s marketing of the Vuse products and that if ‘evidence emerges of significant use’ by people who had not previously used tobacco products, including young people, the FDA could withdraw its authorization.”