The FDA noted that the startup, which became a big hit in the late 2000s with a flash-powered vaporizer charged with nicotine and fruit flavors, failed to prove that the products it sells “meet the requirements of public health care. ”
The decision obligates the company to “stop selling and distributing” products currently licensed and “withdraw” those in stores from the market.
In 2020, the administration previously banned the sale of “Jules” refillable vaping vaporizers attached to nicotine-flavored fillings, and no longer allowed tobacco and menthol flavors alone.
The department also has a duty to ensure that the benefits of vaping products for adults, including helping them quit smoking habitual cigarettes, outweigh the risks for young people.
This review led to a ban on vaping burners made by more than one company, but the agency also approved several products from RJ Reynolds (a subsidiary of the British American Tobacco Group), Logic and Njoy.
The statement quoted agency president Robert Kaliff as saying the ban announced yesterday confirms the FDA’s commitment to “ensure that all e-cigarettes and other products currently on the market deliver nicotine to through an electronic device complies with public health standards. ” .
The administration announced Tuesday that it intends to work to significantly reduce nicotine levels in cigarettes sold in the United States to achieve levels low enough to prevent smokers from becoming addicted as part of a drug control plan. cancer.
However, the agency does not consider Juul’s products to pose an “immediate risk” but believes the company has not provided sufficient data to assess the “possible risk of toxicity”.
The San Francisco -based startup said it “provided enough information and data” to address all the concerns raised by the agency.
The company intends to request a stay with the decision and explore all available options, including an appeal.
The startup has been accused of being overly involved in boosting young people’s appetite for vaping through advertising and marketing campaigns specifically targeted at high school students.
In fact, in 2019, Jules Labs, under pressure from the authorities, suspended the sale of flavors popular with young people and tried to review its marketing strategy.
The company currently owns 36 percent of the e-cigarette market in the United States, which is estimated to be worth approximately $ 5.3 billion a year, according to statistics from Goldman Sachs Consulting’s Nielsen market research report. . It further mentioned that this share dropped from the 70 per cent controlled by the company in 2019, but remains first.
Goldman Sachs analysts said that, in addition to requesting a stay or appealing the FDA’s decision, Juul could file a revised file.
They stressed that Jules Labs’ presence is still “promising” in other markets such as Asia and Europe, even if the US ban remains.
U.S. tobacco company Altria, which owns a 35% stake in Jules Labs, fell more than 9% on Wednesday after initial press reports about an imminent FDA decision. However, the share price rose again by almost one percent yesterday.
Altria had a big stake in Jewel Labs in 2018, investing more than $ 12 billion in it in a deal that increased its value to $ 38 billion. He tried to diversify his business after a long decline in traditional cigarette sales in the United States.
But with new restrictions imposed by health authorities and expensive legal wrangling, the value of Juul Labs has plummeted since then.
Source: Al-Akhbar
