Following a prolonged and high-stakes legal battle, the U.S. Food and Drug Administration (FDA) granted Juul marketing approval for its e-cigarettes.
For Altria (MO), a tobacco giant and an early investor in Juul, this is an interesting development. While this is a positive on the regulatory front for the wider e-cigarette industry in general and the company’s own NJOY brand, it also raises competitive pressure for Altria in the vaping market as it no longer holds a position in Juul. Investors should note that at the end of March, Altria also announced that it would halt sales of its NJOY e-cigarettes in the U.S. due to a patent infringement ruling in favor of Juul.
