FDA orders Juul e-cigarettes off the market – Wall Street Journal

A woman holds a Juul e-cigarette as she walks in New York, US, September 27, 2018. REUTERS/Brendan McDermid

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(Reuters) – The U.S. Food and Drug Administration is preparing to order Juul Labs to take e-cigarettes off the market in the United States, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Shares in the giant tobacco company Altria Group Inc (MO.N)which owns a 35% stake in Juul, fell 8% in morning trading after the report that said the agency’s decision could arrive as early as Wednesday.

The ruling will come about two years after the vaping product maker applied for approval to continue selling e-cigarettes in the country, in an effort to demonstrate that the products provide a net benefit to public health.

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The FDA review will decide whether it is effective in quitting smokers and, if so, whether the benefits to smokers outweigh the health harms for new users, including teens who have never smoked.

In October, the US Food and Drug Administration allowed British American Tobacco plc to compete (BATS.L) To market Vuse Solo e-cigarettes and tobacco-flavored pods, making it the first-ever vapor product to receive clearance from the health regulator. Read more

Some experts, including brokerage Jefferies, at one point predicted Juul would get FDA approval as well.

Altria and the Food and Drug Administration did not immediately respond to Reuters requests for comment.

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Additional reporting by Praveen Paramasivam in Bengaluru; Edited by Sriraj Kalovila and Devika Siamnath

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