The US Federal Food and Drug Administration (FDA) announced yesterday that it has allowed the marketing of new tobacco products manufactured by Philip Morris Products SA to the IQOS Tobacco Heating System, an electronic device that heats tobacco-filled sticks that produce a nicotine-containing aerosol.
Based on available expert studies, the Agency found that the aerosol produced by IQOS contains less toxic chemicals than cigarette smoke. For example, exposure to carbon monoxide from IQOS is comparable to environmental exposure, acrolein levels are 89% to 95% lower and formaldehyde 66% to 91% lower than in standard cigarettes, all that while maintaining similar nicotine levels.
Three HeatStick variations were approved for sale:
- Marlboro HeatSticks
- Marlboro Smooth Menthol HeatSticks
- Marlboro Fresh Menthol HeatSticks
The FDA has introduced strict marketing restrictions on product sales in an effort to prevent youth access and exposure, so just like with cigarettes it has banned TV and radio advertising and has limited social networking and web promotion. A second application for product approval as "modified with reduced risk of smoking" is still under consideration.
André Calantzopoulos, CEO of PMI, commented on the FDA announcement:
„In just two years, 7.3 million people have left cigarettes around the world and switched to IQOS completely. The FDA's decision to allow IQOS in the US is an important step forward for approximately 40 million US men and women who smoke. The FDA announcement is a historic milestone.“
IQOS will be in the US on an exclusive license from summer 2019, the license was granted to the Altria company. It plans to open an IQOS store in Atlanta and many mobile stores. Marlboro Tobacco HeatSticks for IQOS will be available in approximately 500 retail stores, including Circle K, Murphy USA, QuikTrip, RaceTrac, Speedway, and more.
In response to the announcement, PMI shares went up by 2% and closed at $ 86.56. Altria's shares went up by 1.5% and closed at $ 54.33.