Today the Trump administration announced they are moving forward to ban flavored e-cigarette products after six people have recently died from vaping related health problems.
We are looking at vaping strongly, it’s very dangerous, children have died and people have died.. We’re going to have some very strong rules and regulations.”Donald Trump, Press Hearing, 9/11/2019
Trump told the press today:
“Vaping is becoming a big business as I understand it, like a giant business in a short period of time. We can’t allow people to get sick and we can’t have our youth be so effected,”
The first lady recently tweeted out her concern about e-cigarettes:
The Food and Drug Administration (FDA) is responsible for regulating e-cigarettes. And the Centers for Disease Control and Prevention (CDC) the leading national public health institute of the US has advised the FDA against people using e-cigarettes and vape pens.
Health and Human Services Secretary Alex Azar said the FDA plans to finalize a guidance document to start enforcing flavors other than tobacco to be removed from the market. In a comment found on CNN.com, it sounded as though this regulation could come fast, Azar said:
“It’ll take several weeks for us to put out the final guidance that will announce all the parameters around the enforcement policy, and then there will likely be about a 30-day delay to effective date, as is customary… at that point all flavored e-cigarettes other than tobacco flavor would have to be removed from the market.”
Earlier in the week, Cresco Labs (CSE: CL) put out a statement on Twitter commenting on the recent events suggesting the issue is vitamin E acetate as an additive or adding cutting agents such as polyethylene, glycol (PEG), propylene glycol (PG), vegetable glycerin (VG) or medium chain triglycerides (MCT). Cresco Labs of course avoids these additives.
This news is likely most alarming for leading e-cigarette company Juul and their large investor Altria (NYSE: MO). The FDA has stated that youth trying flavored tobacco products rather than non-flavored ones are more likely to become regular tobacco users. On Monday, the FDA issued a warning to Juul over its marketing practices. In the letter to CEO Kevin Burns, the FDA wrote they are “deeply concerned” and commented about the marketing of flavors that appeal to kids, saying “we’ll take even more aggressive action.”
Information for this commentary and analysis was found via Twitter and CNN. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.