FDA to ban Juul e-cigarettes in the US: report

The Meals and Drug Administration is ready to ban Juul e-cigarettes from being bought in the United States, in accordance to a report.

The Wall Street Journal reported on Wednesday that the FDA might announce the determination as quickly as Wednesday.

The company had been investigating Juul for the previous two years whereas the firm sought approval to proceed promoting its nicotine pods.

Shares of Altria Group, the cigarette maker which owns a 35% stake in Juul, have been down by greater than 9% as of 12:30 p.m. Japanese time on Wednesday.

Juul landed in sizzling water some 4 years in the past when its flavored e-cigarettes, which have been touted at the time as a carcinogen-free and more healthy various to conventional cigarettes, were being blamed for a surge in youth vaping.

The corporate tried to appease federal regulators by banning their candy and fruit-flavored merchandise.

1000’s of lawsuits have been filed in the US towards the firm, which was accused of focusing on underage people who smoke with their flavored merchandise.

Since its e-cigs and different comparable vaping merchandise got here to market, scores of individuals have died and hundreds have been hospitalized nationwide for varied lung illnesses that medical and well being officers blame on vaping.

Juul’s model of nicotine pods have been blamed for fueling an epidemic in youth vaping.
Bloomberg through Getty Photos
The Food and Drug Administration is reportedly set to bar Juul from selling its e-cigarettes in the United States.
The Meals and Drug Administration is reportedly set to bar Juul from promoting its e-cigarettes in the United States.
Bloomberg through Getty Photos

Well being advocacy teams like the American Coronary heart Affiliation, the American Lung Affiliation and the American Academy of Pediatrics have lobbied the FDA to bar Juul from promoting its merchandise.

Juul burst onto the scene shortly after its founding in 2015. The following yr, it bought 2.2 million units. In 2017, it bought 16.2 million units.

By 2018, the firm was valued at $15 billion. That very same yr, it had a market share of 75%.

In December 2018, Altria, considered one of the world’s largest cigarette producers and the maker of fashionable manufacturers together with Marlboro, paid $12.8 billion for a 35% stake in Juul, which was producing an annual income of round $2 billion.

Since then, Juul has misplaced appreciable market share as lawsuits have piled up and extra People have been made conscious of the risks of vaping.

In October 2019, Altria wrote down $4.5 billion of the funding it made in Juul. The following yr, Altria slashed Juul’s valuation to $10 billion.

By March of final yr, the valuation was slashed to $4.3 billion. Earlier this yr, it was minimize once more to $1.6 billion.

Final yr, Juul reported a web lack of $259 million in addition to an 11% decline in gross sales to $1.3 billion, in accordance to the Journal.

Juul has been hit with thousands of lawsuits in recent years as public health officials have blamed vaping for a wave of lung-related illnesses.
Juul has been hit with hundreds of lawsuits in current years as public well being officers have blamed vaping for a wave of lung-related sicknesses.
AFP through Getty Photos

Juul merchandise are largely bought in the US, although they’re additionally out there in Canada, the United Kingdom, Italy, France, and the Philippines.

The FDA can be anticipated to transfer aggressively towards conventional cigarette makers.

The Biden administration on Tuesday stated it desires to cap the quantity of nicotine allowed in cigarettes as a part of an effort to stem habit and cut back smoking-related deaths.

The FDA plans to formally publish the proposed rule in Could 2023, according to the Wall Street Journal, which first reported on the plans.

However the restriction seemingly would take years to go into impact.

The FDA would have to take public remark after issuing the proposed rule — and face up to anticipated backlash and potential lawsuits from cigarette makers, in accordance to the Journal.

The FDA has backed slashing nicotine content material for a number of years, with former Commissioner Scott Gottlieb taking the first steps towards a brand new rule throughout the Trump administration. However that effort stalled when Gottlieb left in 2019.

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