×
S&P 500   3,831.39
DOW   30,967.82
QQQ   286.96
S&P 500   3,831.39
DOW   30,967.82
QQQ   286.96
S&P 500   3,831.39
DOW   30,967.82
QQQ   286.96
S&P 500   3,831.39
DOW   30,967.82
QQQ   286.96

FDA bans Juul e-cigarettes tied to teen vaping surge

Thursday, June 23, 2022 | Matthew Perrone And Tom Murphy, Associated Press


An electronic cigarette from Juul Labs is seen on Tuesday, Feb. 25, 2020, in Pembroke Pines, Fla. Federal health officials on Thursday, June 23, 2022 ordered Juul to pull its electronic cigarettes from the U.S. market, the latest blow to the embattled company widely blamed for sparking a national surge in teen vaping. (AP Photo/Brynn Anderson, File)

WASHINGTON (AP) — U.S. health regulators on Thursday ordered Juul to pull its electronic cigarettes from the market, the latest blow to the embattled company widely blamed for sparking a national surge in teen vaping.

The action is part of a sweeping effort by the Food and Drug Administration to bring scientific scrutiny to the multibillion-dollar vaping industry after years of regulatory delays.

The FDA said Juul must stop selling its vaping device and its tobacco and menthol flavored cartridges. Those already on the market must be removed. Consumers aren't restricted from having or using Juul’s products, the agency said.

To stay on the market, companies must show that their e-cigarettes benefit public health. In practice, that means proving that adult smokers who use them are likely to quit or reduce their smoking, while teens are unlikely to get hooked on them.

The FDA noted that some of the biggest sellers like Juul may have played a “disproportionate″ role in the rise in teen vaping. The agency said Thursday that Juul's application didn’t have enough evidence to show that marketing its products “would be appropriate for the protection of the public health.”

Juul said it disagrees with the FDA’s findings and will seek to put the ban on hold while the company considers its options, including a possible appeal and talking with regulators.

In a statement, the FDA said Juul’s application left regulators with significant questions and didn’t include enough information to evaluate any potential risks. The agency said the company’s research included “insufficient and conflicting data” about things like potentially harmful chemicals leaching from Juul’s cartridges.

“Without the data needed to determine relevant health risks, the FDA is issuing these marketing denial orders.” Michele Mital, acting director of the FDA’s tobacco center, said in the statement.


Joe Murillo, Juul's chief regulatory officer, said in the company’s statement that Juul submitted enough information and data to address all issues raised by regulators. He noted that the company’s application, submitted more than two years ago, included comparisons to combustible cigarettes and other products.

He said it also included information on potential harmful effects of the company’s products.

Since last fall, the FDA has given the OK to tobacco-flavored e-cigarettes from R.J. Reynolds, Logic and other companies. But industry players and anti-tobacco advocates have complained that those products account for just a tiny percent of the $6 billion vaping market in the U.S.

The agency said Thursday that people who use Juul products or smokers who want to move away from cigarettes and cigars could switch to the FDA-authorized e-cigarettes.

Regulators repeatedly delayed making decisions on devices from market leaders, including Juul, which remains the best-selling vaping brand although sales have dipped.

Last year, the agency rejected applications for more than a million other e-cigarettes and related products, mainly due to their potential appeal to underage teens.

Anti-tobacco groups applauded the FDA's move, with the American Lung Association calling it “long overdue and most welcome.” The American Vapor Manufacturers Association said it was a “shameful decision.”

E-cigarettes first appeared in the U.S. more than a decade ago with the promise of providing smokers a less harmful alternative. The devices heat a nicotine solution into a vapor that’s inhaled, bypassing many of the toxic chemicals produced by burning tobacco.

But studies have reached conflicting results about whether they truly help smokers quit. And efforts by the FDA to rule on vaping products and their claims were repeatedly slowed by industry lobbying and competing political interests.

The vaping market grew to include hundreds of companies selling an array of devices and nicotine solutions in various flavors and strengths.

The vaping issue took on new urgency in 2018 when Juul’s high-nicotine, fruity-flavored cartridges quickly became a nationwide craze among middle and high school students. The company faces a slew of federal and state investigations into its early marketing practices, which included distributing free Juul products at concerts and parties hosted by young influencers.

In 2019, the company was pressured into halting all advertising and eliminating its fruit and dessert flavors. The next year, the FDA limited flavors in small vaping devices to just tobacco and menthol. Separately, Congress raised the purchase age for all tobacco and vaping products to 21.

But the question of whether e-cigarettes should remain on the market at all remained.

The FDA has been working under a court order to render its decisions; anti-tobacco groups successfully sued the agency to speed up its review.

Kenneth Warner, a tobacco expert at the University of Michigan’s school of public health, suspects political pressure from those groups played a role in the FDA’s decision.

“I think they would have had a hard time coming to any other conclusion,” said Warner, who had not seen Juul's application. He added that he does not take tobacco money.

In response, an FDA spokesman said the company didn't provide enough information for a full risk assessment of its products, and that alone would prevent the agency from finding in favor of Juul.

While Juul remains a top seller, a recent federal survey shows that teens have been shifting away from the company.

Overall, the survey showed a drop of nearly 40% in the teen vaping rate as many kids were forced to learn from home during the pandemic. Still, federal officials cautioned about interpreting the results given they were collected online for the first time, instead of in classrooms.

The brainchild of two Stanford University students, Juul launched in 2015 and within two years rocketed to the top of the vaping market. Juul still accounts for nearly 50% of the U.S. e-cigarette market. It once controlled more than 75%.

Tobacco giant Altria, which makes Marlboro cigarettes, paid nearly $13 billion for a 35% stake in Juul in 2018.

On Tuesday, the FDA also laid out plans to establish a maximum nicotine level for certain tobacco products to reduce their addictiveness. In that announcement, the agency also noted that it has invested in a multimedia public education campaign aimed at warning young people about the potential risks of e-cigarette use.

___

Murphy reported from Indianapolis.

___

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Altria Group (MO)
2.0835 of 5 stars
$41.72-1.3%8.63%25.44Hold$47.56
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Altria Group right now?

Before you consider Altria Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Altria Group wasn't on the list.

While Altria Group currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastIs The Market Near a Bottom, Does it Matter?

Today’s interview is a little different, in that you get a LOT of market perspective from someone who’s been analyzing stocks from the ground up, for more than three decades. In this conversation, Kate chats with Nancy Zambell, the chief analyst for the Cabot Money Club Letter - and Nancy has a really deep and varied background in the financial industry - as she mentions in this interview, she’s been a banker, real estate professional, and a stock market analyst.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.