FDA considers ban on flavored e-cigarettes to protect minors

WASHINGTON / LOS ANGELES (Reuters) – The US Food and Drug Administration is considering a new drug addiction, the agency's new drug addiction, a new generation of nicotine addicts head said on Wednesday.

In a speech at FDA headquarters, Commissioner Scott Gottlieb said the agency would also revisit FDA approval before selling their products. That could lead to the removal of some of the major flavored e-cigarette brands, including the popular products made by Juul Labs Inc., if they do not address the issue to the agency's satisfaction.

"We see clear signs that the use of electronic cigarettes has reached an epidemic proportion," Gottlieb said.

Manufacturers offer and market e-cigarette flavors that clearly appeal to minors, including candy and bubble gum flavors. The FDA said more than 2 million middle school and high school students used e-cigarettes in 2017.

The FDA is giving top five selling e-cigarette brands – Juul, Vuse, MarkTen XL, and Blu-Logic – 60 days to provide plans for how they will mitigate sales to minors.

Juul Labs owns about 72 percent of the U.S. market for e-cigarette sales, according to Wells Fargo. "Juing," along with "vaping," has become a common term for e-cigarette use by teenagers on social media and at U.S. high schools.

Investors in Juul's contestants appeared to welcome the FDA announcement.

Shares of British American Tobacco (BATS.L), which owns the Vuse brand, were up nearly 6 percent, while shares of cigarette-maker Imperial Brands PLC (IMB.L), which owns Blu, were up more than 3 percent. Altria GroupMY), which also owns the MarkTen brand, rose more than 6 percent, while Philip Morris International (PM.N) shares were up 3 percent.

Wells Fargo analyst Bonnie Herzog, in a research note, said Juul appears to be "most at risk" because of "strong appeal to youth and FDA's comments on flavors."

She said Altria could be because it has a long history of dealing with youth access to its products and has limited / mature flavor profiles related to Juul.

MENTHOL VERSUS FRUIT MEDLEY AND BURNED CREAM

MarkTen's flavors, for example, include "menthol," "classic," and "summer blend," while Juul's flavors have included "fruit medley" and "creme brulee," recently shortened to "fruit" and "cream."

Gottlieb has announced a number of steps to take over a part of a broader crackdown on the sale of e-cigarettes to minors. The agency issued 12 warning letters to companies that it says deceptive marketing labels on e-liquids.

"We do not allow a new generation to become addicted to nicotine," he said.

Juul Labs said it would work with the FDA and is committed to preventing it. But spokeswoman Victoria Davis said "appropriate flavors play an important role in helping adult smokers switch."

The FDA is moving towards e-cigarettes, which can be used to reduce the harmful effects of nicotine products, but also a new generation to nicotine addiction.

"While we are committed to advancing policies that promote the potential of e-cigarettes to help smokers move away from fuel cigarettes, that work can not come at the expense of kids," Gottlieb said.

The other companies also said they would work with the FDA on youth prevention efforts.

"We welcome FDA's action today and look forward to sharing our thoughts on how to prevent and reduce youth use," Altria spokesman George Parman said in a statement.

Imperial Brands Unit Fontem Ventures said it would work to further strengthen youth access prevention policies and procedures.

British American R. Reynolds Vapor Company, said it will comply with the FDA request, adding that "youth tobacco prevention is a priority for our companies."

Logic Technology Development, owned by Japan Tobacco Inc (2914.T), said it will be demonstrated to the FDA that

As part of its broader enforcement efforts, the FDA said it was more than 1,300 warning letters and fines to retailers who illegally sold e-cigarette products to minors.