US FDA blocks some flavors of British American Tobacco’s key vape brand Vuse By Reuters

(Reuters) -The U.S. well being regulator on Thursday blocked the sale of six flavors of British American Tobacco (NYSE:)’s (BAT (LON:)) important vape model, Vuse Alto, out there together with the menthol taste that makes up a big portion of its gross sales.

The U.S. Meals and Drug Administration’s (FDA) advertising denial orders (MDOs) for R.J. Reynolds, owned by BAT, embrace three menthol-flavored and three combined berry-flavored e-cigarette merchandise, with every taste being provided in three nicotine strengths.

“R.J. Reynolds Vapor firm intends to problem denials and can search a keep of enforcement of menthol denial instantly,” BAT stated.

The FDA stated proof submitted by R.J. Reynolds didn’t show that menthol- and combined berry-flavored merchandise provided an additional advantage for grownup cigarette people who smoke in comparison with tobacco-flavored merchandise that’s enough to outweigh the recognized dangers to youth.

However the firm could submit new functions for the merchandise which can be topic to those MDOs, it stated.

Up to now, corporations have challenged FDA selections in courtroom, with some success.

A subsidiary of rival Imperial Manufacturers (OTC:) had disputed the FDA’s determination to ban its flavored and unflavored vape merchandise. A U.S. appeals courtroom in August agreed that its unflavored merchandise ought to be reviewed once more by the FDA.

Vuse Alto makes up the overwhelming majority of BAT’s vape volumes in america, with menthol flavors accounting for round 75% of that, in keeping with Jefferies.

Jefferies analyst Owen Bennett famous that BAT could achieve securing a keep, which may forestall the product being faraway from the market.

An increase in disposable vapes has dented BAT’s enterprise on this planet’s largest marketplace for such merchandise. Its U.S. vape volumes have been down 6.5% within the first half of 2023.

BAT purchased out R.J. Reynolds for $49.4 billion in 2017, having access to the profitable and extremely regulated U.S. market after a protracted absence since 2004.