Shares’ prices of Bristol-based Imperial Brands Plc. (OTC: IMBBY) and London-based British American Tobacco(MYSE: BTI) surged on Friday, the 3rd of January 2020, after the US health policy regulators had exempted tobacco and menthol from a list containing a number of popular e-cigarettes flavors which were scheduled to remain banned under a new guideline for e-cigarette manufacturers announced in 2019.
In point of fact, the US FDA (Food and Drug Administration) said on Thursday (January 2nd) that the electronic cigarette-manufacturers would not be allowed to sell pod-based e-cigarette flavors such as fruits, mint, and desserts from February in the United States, while the ban appeared to be much softer than that one the US President Donald Trump had initially proposed back in September last year, while Trump had threatened to curb out almost all of the flavors in a bid to keep a lid on teenage vaping epidemic in the United States.
Nonetheless, after excluding key e-cigarettes flavors such as tobacco and menthol, shares of Bristol-based Imperial Brands Plc. rose as much as 1.4 percent, while shares’ prices of the British American Tobacco surged 2.5 percent.
Meanwhile, adding that the latest US statement on e-cigarette flavors had brought in more clarity, British American Tobacco, the maker of Dunhill and Vuse e-cigarettes said in a statement on Friday (January 3rd), “Following a significant period of disruption and uncertainty, this regulatory clarity is a welcome step towards returning the U.S. vapor market to stability“.
Source: Financial World