The U.S. Food and Drug Administration on Friday announced a plan for tobacco and nicotine regulation, which seeks to lower nicotine in cigarettes to non-addictive levels.
Shares of Altria Group, maker of Marlboro and Parliament brands through its Philip Morris USA unit, plunged more than 11 percent following the FDA announcement. British American Tobacco fell 3 percent. Vector Group, another tobacco stock, was also down more than 4 percent.
Altria, which saw the most impact on its stock following the announcement, didn’t immediately respond to CNBC’s request for comment.
“The overwhelming amount of death and disease attributable to tobacco is caused by addiction to cigarettes – the only legal consumer product that, when used as intended, will kill half of all long-term users,” FDA Commissioner Scott Gottlieb said in a statement.
“Envisioning a world where cigarettes would no longer create or sustain addiction, and where adults who still need or want nicotine could get it from alternative and less harmful sources, needs to be the cornerstone of our efforts – and we believe it’s vital that we pursue this common ground.”
The FDA said Friday that it plans to begin a “public dialogue” surrounding lowering nicotine levels by way of “achievable product standards.” The agency added that it plans to issue guidance that will describe a new enforcement policy “shortly.”
“Our approach to nicotine must be accompanied by a firm foundation of rules and standards for newly-regulated products,” Gottlieb said. “To be successful all of these steps must be done in concert and not in isolation.”
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