Investing.com - Stocks of Big Tobacco companies jumped higher on Wednesday after the Food and Drug Administration said it is considering banning all flavored e-cigarettes.
"The disturbing and accelerating trajectory of use we're seeing in youth, and the resulting path to addiction, must end,” FDA Commissioner Scott Gottlieb said in a statement. “The FDA cannot tolerate a whole generation of young people becoming addicted to nicotine as a trade off for enabling adults to access these products."
The FDA is sending letters to e-cigarette manufacturers Juull, Vuse, MarkTen, blu e-cigs and Logic and asking them to respond in 60 days with plans to reduce teen use or face having products pulled.
"(I)f the plans do not appropriately address this issue, the FDA will consider whether it would be appropriate to revisit the current policy that results in these products remaining on the market without a marketing order from the agency," the FDA said. "This could mean requiring these brands to remove some or all of their flavored products that may be contributing to the rise in youth use from the market until they receive premarket authorization and otherwise meet all of their obligations under the law."
In addition, the FDA plans to investigate the e-cigarette companies’ marketing and sales practices, as well as online shops being used to resell products to minors.
The agency also sent more than 1,300 warning letters and fines to retailers who illegally sold e-cigarette products to minors.
Shares of some tobacco companies were higher following the news, with British American Tobacco (NYSE: BTI ) rising 5.56%, Philip Morris International (NYSE: PM ) up 3.55% and Altria Group (NYSE: MO ) increasing 4.20%.
Turning Point Brands (NYSE: TPB ) slumped 8.37%. The tobacco firm acquired International Vapor Group on Thursday.
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