Business Corpus: Tobacco Stocks Fall On Fears FDA Will Seek Strict Cigarette Nicotine LimitsTobacco stocks generally fell amid speculation the FDA may propose strict cigarette nicotine limits. The post Tobacco Stocks Fall On Fears FDA Will Seek Strict Cigarette Nicotine Limits appeared first on Investor's Business Daily.

[Collection]

Tobacco stocks generally fell Friday amid speculation the Food and Drug Administration may propose strict limits on the amount of nicotine in cigarettes.

Fears were sparked after FDA Center for Tobacco Products pharmacologist Lynn Hull said reducing the amount of nicotine in cigarettes by as much as 96% would improve public health. Her lecture, broadcast on the internet, had a clear disclaimer that said it did not represent the official position of the FDA.

Altria Group (MO) fell 1.2% and Philip Morris International (PM) 0.5% on the stock market today. Both were off morning lows. Altria sells Marlboro cigarettes in the U.S. while Philip Morris International does so overseas.

Meanwhile fellow industry giant British American Tobacco (BTI) sank 2.5%. Vector Group (VGR) rallied to trade up 0.6%.

One stock that stood out was Pyxus International (PYX), the North Carolina-based tobacco company that has pivoted into marijuana. Pyxus stock rose 5.8%. Shares rose 4.1% after being backed by short-seller Citron Research. Pyxus stock has nearly doubled so far in October.

Pharmacologist Hull's lecture added fuel to speculation the FDA will crack down hard on the tobacco market in a bid to boost public health. As nicotine is the addictive ingredient in cigarettes, reducing the dosage per cigarette could be significant.

"Making all cigarettes minimally addictive could significantly reduce the morbidity and mortality caused by smoking," she said.

However Stifel managing director Chris Growe and Jefferies analyst Owen Bennett both said the lecture contained no new information, and simply reviewed the available science on nicotine.

FDA Eyeing Cigarette Nicotine Levels

In March the FDA issued an Advance Notice of Proposed Rulemaking (ANPRM), which suggested lowering nicotine in combustible cigarettes to minimally or non-addictive levels.

The notice argued such a move would make it "harder for future generations to become addicted in the first place."

However analysts have said it will take years for such a plan to come to fruition. It is also sure to face opposition from the tobacco industry.

Despite this, Philip Morris, whose iQOS heat-not-burn electronic cigarette has faced FDA resistance, is down sharply so far this year. British American Tobacco stock and Altria stock are off sharply. So is Vector Group, whose brands included Pyramid and Liggett Select.

The ANPRM istelf is part of a comprehensive plan on tobacco and nicotine regulation announced in the summer of 2017. The aim is to reduce the amount of tobacco-related diseases and deaths.

According to the FDA, tobacco use kills more than 480,000 Americans every single year. It also costs nearly $300 billion a year in direct health care costs and lost productivity.

YOU WILL ALSO LIKE:

Citron Says This Tobacco Stock 'Could Double' As Marijuana Play

Growing Like A Weed: Marijuana Stock Canopy Growth Expands Production

Merger Munchies: World's Top Marijuana Grower Buys Cannabis Genetics Lab

Coca-Cola, Coffee And Marijuana Stocks: A Bold New Cocktail

Could Big Tobacco Become Big Cannabis As Marijuana Business Soars?

The post Tobacco Stocks Fall On Fears FDA Will Seek Strict Cigarette Nicotine Limits appeared first on Investor's Business Daily.