FDA bans Juul e-cigarettes as government pursues broader crackdown on nicotine products

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  • Food and Drug Administration rejects Juul’s application to sell its e-cigarettes in the US
  • The decision is part of a broader review of the vaping industry by the agency, after years of pressure to regulate this section as strictly as other tobacco products.
  • According to Euromonitor International, Juul was the market leader in e-cigarettes since 2018.

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The Food and Drug Administration announced Thursday that it would ban the sale of Juul e-cigarettes.

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The decision is part of a broader review of the agency, which has become more common among high school students as other tobacco products after years of pressure from politicians and public health groups to regulate the clause.

Juul was seeking approval from the FDA for its vaping device and tobacco- and menthol-flavored pods, which are available at 5% and 3% nicotine strengths. Already, the agency banned peppermint- and fruit-flavored vaping products in 2020, leaving just tobacco- and menthol-flavored products on the market, in an effort to cut down on teen vaping.

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Juul’s decision to ban sales of those remaining products has dealt a heavy blow to the company. Juul’s international expansion efforts have been hindered by regulations and a lack of consumer interest. America remains its largest market.

Rival e-cigarette makers British American Tobacco and NJOY received approval for their e-cigarettes, although the FDA rejected some flavored products offered by the companies. The agency said it approved both companies’ tobacco-flavored products because they proved they could benefit adult smokers and reduce risk for younger users.

The FDA is also striving to reduce the use of nicotine in traditional tobacco products. On Tuesday, the agency said it is requiring tobacco companies to reduce the amount of nicotine in cigarettes to at least addictive or non-addictive levels.

In 2019, federal data found that more than 1-in-4 high school students had used e-cigarettes in the past 30 days, up from 11.7% two years earlier. The outbreak of vaping-related lung disease in 2020 only raised concerns about e-cigarettes.

Last year, Usage among high school students fell to 11.3% Amid more regulatory scrutiny and the coronavirus pandemic.

According to Euromonitor International, Juul was the market leader in e-cigarettes since 2018. As of 2020, the company had a 54.7% share of the $9.38 billion US e-vapor market.

E-cigarettes deliver nicotine to users by vaporizing the liquid in cartridges or pods. Nicotine is the ingredient that makes tobacco addictive, and it can have other negative health effects. However, e-cigarette manufacturers have argued that their products can deliver nicotine to addictive adult smokers without the health risks that come with burning tobacco.

Marlboro owner Altria bought a 35% stake in Juul for $12.8 billion in late 2018. However, Altria, in the form of Juul, has eroded the value of the investment and the wider e-cigarette industry has been embroiled in controversy. As of March of this year, Altria valued its stake at $1.6 billion, an eighth of its original investment, and Juul itself was valued at less than $5 billion.

The FDA’s decision will also hurt Juul’s defense in US courts as it faces lawsuits from a dozen states and Washington over allegations that it marketed its products to minors and played a major role in the vaping epidemic. It has already entered into agreements with North Carolina for $40 million and with Washington state for $22.5 million.

The FDA gained the power to regulate new tobacco products in 2009. Over the past decade, thousands of e-cigarettes have appeared on store shelves without approval from the agency, which allowed the sale of those products as it phased in rising industry standards. ,

A court ruling created a timeline for the FDA’s approval process of the e-cigarette company’s premarket tobacco product applications. The agency is reviewing about 6.5 million applications from nearly 500 companies and has already denied nearly one million applications from smaller players such as J.D. Nova Group and Great American Vapes for their flavored vape products.

This is a breaking news story. Please check back for updates.

Credit: www.cnbc.com /

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