Altria Group Inc (MO) Stock Down as FDA Plans to Lower Nicotine Limits
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Altria Group Inc (NYSE:MO) shares plummeted today as the Food and Drug Administration (FDA) plans on lowering nicotine levels in cigarettes.
The agency announced that it will be reducing nicotine in cigarettes to non-addictive levels as it seeks to reduce cancer rates in the U.S. The FDA will also implement other measures to reduce the addiction potential of cigarettes as part of a large-scale review of the tobacco industry’s regulations.
Among those measures are further development of new tobacco products that are less dangerous than cigarettes, as will as considering whether or not it is wise to have menthol and other flavored tobacco products.
“We think today’s announcement is an important evolution in the [FDA’s] approach to regulating tobacco products and a meaningful step forward in developing a comprehensive regulatory policy that acknowledges the continuum of risk,” Altria said in a statement later in the day.
The company added that the process that the FDA is initiating will give stakeholders a chance to participate in a scientific, research-based movement that is transparent and sustainable. Altria added that it will play an active role throughout this process.
About 2.5 million people have died in the U.S. from secondhand smoke since 1964, while cigarette smoking kills nearly half a million people in the country every year.
It is estimated that 36.5 million people in this country are cigarette smokers.
MO stock fell close to 9.5% Friday.
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