Biden intends to limit nicotine to cigarettes

Tobacco stocks collapsed on Monday in a report that the Biden administration is considering whether to limit the level of nicotine in cigarettes.

The report, which cites people familiar with the matter, was published in the Wall Street Journal. The newspaper said the discussion came as public officials approached a deadline to say whether or not they intended to call for a ban on menthol cigarettes.

The Biden administration is trying to determine whether it should reduce nicotine levels in conjunction with a menthol ban or as a separate policy, people told the Journal.

Nicotine does not cause cancer, but it does make smoking more addictive. The aim of reducing nicotine levels would be to make cigarettes less addictive, hoping to persuade smokers to give up or switch to other products that are considered safer.

The Food and Drug Administration, which has regular tobacco oversight, declined to comment on the report.

“Any action taken by the FDA must be based on science and evidence and must take into account the consequences of the real world of these actions, including the growth of an illicit market and the impact on hundreds of thousands of jobs from farms to local stores throughout the world. world. country, “Altria spokesman George Parman told CNBC in an email.

Altria shares closed more than 6% of the ratio. On Monday, on extended trading, the shares fell by an additional 2%.

Shares of British American Tobacco closed Monday at 2%, while shares of Philip Morris International closed the day down by less than 1%. Both shares declined after the market closed.

Philip Morris International declined to comment. The tobacco company does not sell or sell cigarettes in the United States, but its stock has fallen regardless of the news.

British American Tobacco did not immediately respond to a request for comment. The company owns Reynolds American, the Camel cigarette manufacturer.

Read the full Wall Street Journal story here.