Tobacco stocks were on the rise after an announcement from the Food and Drug Administration revealed that the organization would be cracking down on teenager use of e-cigarettes.
The FDA is going after e-cig manufacturers and has threatened to pull e-cigs from their shelves if they do not control the “widespread” teen use.
Brands being targeted are Juul, MarkTen, Vuse, Blue E-cigs, and Logic.
According to the announcement, the companies will be required to submit plans within sixty days that detail how they will prevent teens from using their products.
“I use the word epidemic with great care,” said FDA Commissioner Dr. Scott Gottlieb.
“E-cigs have become an almost ubiquitous — and dangerous — trend among teens. The disturbing and accelerating trajectory of use we’re seeing in youth, and the resulting path to addiction, must end. It’s simply not tolerable.”
“We’re especially focused on the flavored e-cigarettes,” explained Gottlieb. “And we’re seriously considering a policy change that would lead to the immediate removal of these flavored products from the market.”
He added, “The FDA won’t tolerate a whole generation of young people becoming addicted to nicotine as a tradeoff for enabling adults to have unfettered access to these same products.”
It was this past July that the FDA had a change of heart with e-cigs and Gottlieb had said in an FDA report, “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.”
“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.”
Shares of tobacco related companies including Altria, Philip Morris, Imperial Brands, and British American Tobacco, all said gains on the recent FDA crackdown.
Both Altria and British American Tobacco had their best trading days since 2008.