Author: Staff Writer

  • Next Generation Labs Nixes Patent Agreement with Kaival

    Next Generation Labs Nixes Patent Agreement with Kaival

    Photo: sorapop

    Next Generation Labs, which manufactures and markets bulk R-S, R- and S-isomer synthetic nicotine under its TFN brand, has terminated its Sept. 28, 2020, patent contribution agreement with Kaival Brands Innovation Group and Kaival Labs.

    The Patent Contribution Agreement related to the acquisition and commercial exploitation by Kaival of Next Generation Labs’ IP portfolio on combinational use of synthetic R- and S-isomer nicotine ratios in tobacco cessation products.

    In a press note, Next Generation Labs said Kaival Labs had published inaccurate and misleading statements relating to the use of patented synthetic nicotine for tobacco cessation products on its website. “Next Generation Labs wants to clarify that as a consequence of Kaival’s failure to perform its obligations under the Patent Contribution Agreement, all rights to the R-S synthetic nicotine cessation patent portfolio fully reverted to Next Generation Labs in May 2021,” Next Generation Labs wrote.

    Additionally, Kaival executed a confirmatory transfer agreement with Next Generation Labs relinquishing all rights to the Next Generation Labs patent portfolio for the commercialization of combinational TFN R-S nicotine relating to tobacco cessation products. Kaival is not an authorized agent of Next Generation Labs, nor is it authorized to use Next Generation Labs’ name, intellectual property or its TFN trademark on its products, in its product marketing or in any financial prospectus to investors, according to Next Generation Labs.

  • Juul Labs Class Action Inches Closer to Trial

    Juul Labs Class Action Inches Closer to Trial

    Photo: steheap

    An expansive class action lawsuit against Juul Labs inched closer to trail when a federal judge advanced conspiracy and fraud claims against the company’s founders, board members and biggest investor, Altria Group, reports Court House News Service.

    On July 22, U.S. District Judge William Orrick III refused to dismiss the bulk of claims filed by 19 plaintiffs in 14 states. The suit accuses Juul and its leaders of intentionally using deceptive ads and marketing campaigns to get young people hooked on vaping to create a new generation of nicotine addicts.

    The plaintiffs say Juul failed to warn consumers that its e-cigarette products were highly addictive and that the company falsely claimed in ads and labels that its prefilled pods contained 5 percent nicotine, the same amount in a pack of cigarettes, when the pods contained much higher levels. They also say Juul fraudulently marketed its vaping products as a “safer alternative” to combustible cigarette smoking.

    The plaintiffs seek to hold Juul and Altria Group, liable for fraud, negligence, negligent misrepresentation, strict product liability and medical monitoring.

    Judge Orrick rejected requests by Juul founders and top executives James Monsees and Adam Bowen to dismiss the claims against them, finding the plaintiffs “adequately alleged that both Monsees and Bowen engaged in acts that had the intent and impact of misleading the public and plaintiffs about the dangers of Juul.”

    Orrick also rejected Altria’s motion to dismiss, citing meetings that occurred between Altria and Juul in California regarding the development of “business agreements and arrangements through which Altria supported [Juul]’s manufacturing, regulatory, marketing, and distribution efforts and how Altria’s efforts through [Juul] in California achieved their common goals.”

    Orrick found many of the arguments made by Altria and Juul’s founders and directors cannot be adequately evaluated until a later stage of litigation when more evidence is available for a jury or judge to scrutinize.

  • Heating Products Exempted from Mexico ENDS Ban

    Heating Products Exempted from Mexico ENDS Ban

    Photo: niyazz

    Mexico’s Supreme Court has ruled that heated tobacco products (HTP) will be exempted from a February 2020 presidential decree that bans importation of electronic nicotine delivery systems (ENDS), reports Filter.

    Prior to the on July 16 ruling, manufacturers were able to import and sell HTPs legally using a loophole in the law called “habeas corpus trials.” But the loophole prevented the development of a fully regulated, legal market. The new presidential decree reverses that and allows for increased sales of these devices.

    Vapor products that use e-liquids continue to be banned by the Mexican government. According to Roberto Sussman, a researcher at the National University of Mexico and president of Pro-Vapeo Mexico, the vapor market in Mexico has been functioning since 2009 as part of the huge informal economy, which employs more than 50 percent of the workforce and it is illegal but not criminal.

    It was an embarrassment for President Andrés Manuel López Obrador, who has expressed opposition to foreign NGOs and agents meddling with Mexican government regulations.

    Roberto Sussman, president, Po-Vapeo Mexico

    More than 1.2 million Mexicans—1 percent of the adult population—use vapor products somewhat regularly, according to a survey by the Global State of Tobacco Harm Reduction.

    According to Filter, a fatal blow to the HTP ban came when it was leaked that the draft of the decree was written by a lawyer working for the Campaign for Tobacco-Free Kids.

    “It was an embarrassment for President Andrés Manuel López Obrador, who has expressed opposition to foreign NGOs and agents meddling with Mexican government regulations,” said Roberto Sussman.

    It’s not the first time Mexico’s Supreme Court intervened in the country’s drug policy. On June 28, it stepped in to legalize marijuana, after lawmakers had failed to finalize the legislation the court demanded three years earlier.

  • Australian Patent for Next Generation’s Synthetic Nicotine

    Australian Patent for Next Generation’s Synthetic Nicotine

    Image: Zerbor

    Next Generation Labs has received an Australian patent for its innovative use of combinational ratios of synthetic R- and S-isomer nicotine in tobacco cessation products.

    “This patent gives Next Generation Labs additional IP protection as the company pursues its international effort to encourage the adoption and use of novel synthetic combinational R-S isomer nicotine, to assist consumers in their desire to break away from tobacco use and their long-term dependence to the reportedly highly addictive S-isomer nicotine,” the company wrote in a statement.

    Next Generation Labs started producing bulk synthetic nicotine in 2014, at a time when there was no commercial availability of isolated R- and S-isomer nicotine. Given that both isomers can be produced in abundance by Next Generation Labs at relatively low cost, industry partners can now access separated isomers for commercialization into products that may aid cessation, enhance quit success rates and moderate overall tobacco use, according to the company.

    “Next Generation Labs believes future combinational R- and S-isomer nicotine formulations may prove to be less addictive than natural or biosimilar standalone S-isomer nicotine, and could potentially help achieve the broader public health goal of providing adult consumers with a satisfying, but non-addictive form of nicotine to replace current products,” the company wrote. “These new variable isomeric ratios of synthetic nicotine products may ultimately assist adults in quitting or reducing their overall dependence on current tobacco, vape and nicotine products that deliver only the purported highly addictive ‘S’ form of nicotine.”

    The granting of the Australian TFN R-S nicotine cessation patent is in addition to existing Next Generation Labs patents that have been issued in China, South Korea, Japan, Canada, Europe and the United States.

  • BAT Highlights Vuse’s Carbon Neutral Status

    BAT Highlights Vuse’s Carbon Neutral Status

    Photo: BAT

    BAT’s Vuse e-cigarette celebrated its position as the first global carbon neutral vape brand with a carbon neutral voyage down the Thames in London, home of BAT’s global headquarters.

    The event was organized to underscore Vuse’s commitment to carbon neutrality and its various supporting initiatives. For instance, in utilizing substantial sea freight as part of its global supply chain, BAT aims to move the majority of Vuse’s global shipments by sea freight by the end of next year.

    “I am proud of the way that Vuse is playing its part in delivering A Better Tomorrow by reducing its impact on the environment,” said Kingsley Wheaton, chief marketing officer at BAT, in a statement.

    “Vuse is a leading global brand with ever-increasing scale, which allows us to drive global supply chain efficiencies and effectiveness.  I am delighted that, in Vuse, we are demonstrating the kind of purposeful behavior expected from leading brands of the world.  This commitment will play a part in our vision of A Better Tomorrow becoming a reality.”

    Research conducted on behalf of BAT’s R.J. Reynolds Vapor Co. subsidiary found that nearly half (46 percent) of consumers said they would prefer using a vapor product from a company that was successful in becoming carbon neutral.  A brand’s environmental priorities and impact are increasingly important to consumers in considering their purchasing choices, with nearly a third of consumers broadly viewing a brand more favorably based on their environmental initiatives, according to Reynolds.

    Vuse’s carbon neutrality status and ambition to increase sea freight is part of BAT’s bigger ambition to become an environmentally sustainable vape brand with initiatives including:

    • An ambition to transport the majority of international shipments by sea by the end of 2022 and 100 percent of its consumable pods by end of 2023.
    • A global device and pod collection scheme; through the “Drop the Pod” campaign, approximately 200,000 pods were collected since the start of the pilot in 2020
    • Cutting single use plastics from packaging. The “Cut the Wrap” campaign has saved 100 tons of plastic or the equivalent of four million plastic bottles in 20202

    BAT’s sustainability efforts and commitment have received notable independent recognition. These include inclusion in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), a MSCI rating of BBB and CDP A List status for climate change.

  • Turning Point Brands Invests in Old Pal Cannabis Brand

    Turning Point Brands Invests in Old Pal Cannabis Brand

    Photo: yellowj

    Turning Point Brands (TPB) has completed a $8 million strategic investment in Old Pal Holding Co. through a convertible note that includes follow-on investment rights.

    Founded in 2018by Rusty Wilenkin and Jason Osni, Old Pal is a leading cannabis brand that operates a non-plant touching licensing model and sells its products to consumers across the U.S.

    TPB’s investment will enable Old Pal to expand product offerings in existing states, which include California, Nevada, Michigan, Oklahoma, Ohio, Washington and Massachusetts, and will help create the infrastructure necessary to support continued territory and product expansion. As a result of Old Pal’s strong brand recognition and extensive network of licensed cultivation and production relationships, the company has the ability to scale its geographic footprint while continuing to offer consistent and readily available products, according to TPB.

    “Turning Point has a proven track record of developing and growing brands and is capitalizing on this experience to identify highly recognizable, leading cannabis brands poised to experience significant growth,” said Larry Wexler, CEO, Turning Point Brands, in a statement. “Given Old Pal’s favorable market position, the awareness of its products outside its current geographies and its unique licensing model, we are confident the brand is well-positioned to further penetrate the market and capitalize on the growth potential of the cannabis industry.”

    “Old Pal’s mission is to spread the shareable cannabis lifestyle to customers across the U.S. through accessible and high-quality products,” added Charlie Cangialosi, chief operating officer at Old Pal. “Turning Point Brands’ experience with iconic brands, like Zig-Zag, and success in adjacent and complementary industries will allow us to bring the Old Pal experience to a wider range of markets and consumers.”

  • New Taipei Prepares To Ban Underage Vaping

    New Taipei Prepares To Ban Underage Vaping

    Photo: BUSARA

    Starting in August, people under the age of 18 will be banned from buying or smoking electronic cigarettes in New Taipei, reports Focus Taiwan, citing local government sources.

    Passed by the New Taipei City Council on April 29, the new ordinance is expected to take effect Aug. 6.

    After that date, people under the age of 18 caught vaping or carrying e-cigarettes will be required to enroll in a program to help them quit, the city’s health department said in a statement.

    Violators who skip the programs without a valid reason will be fined between TWD$2,000 ($71) and TWD$10,000, the department warned.

    Individuals or businesses caught selling vapor devices to people under the age of 18 will risk a maximum fine of TWD$100,000.

    Taiwan’s current law defines minors as people under 20, but an amendment that was passed last December will lower the age to 18, with effect from 2023.

    Meanwhile, the New Taipei health department said city regulations prohibit the manufacture, importation, sale, display and advertisement of e-cigarette products without the relevant permits.

    The maximum fine for violation of that regulation is TWD$100,000, and the businesses involved may be closed or suspended, the department said.

  • Greenhut: Utah Nicotine Limits Bad for Harm Reduction

    Greenhut: Utah Nicotine Limits Bad for Harm Reduction

    When it comes to government regulation, it’s sometimes hard to get the details right, according to Steven Greenhut in an opinion hew wrote for InsideSources. He says that the Utah Department of Public Health’s proposed new rules that would reduce the amount of nicotine that sellers and manufacturers can include in their “closed-system” electronic cigarettes derail harm reduction efforts.

    Two years ago, the agency adopted a compromise that capped the amount of nicotine in closed vaping products at 5 percent. That 2019 rule attempted to protect consumers from the over-consumption of nicotine. But the 5 percent cap still enabled vape users to consume a sufficient amount of nicotine to satisfy their cravings. However, the newly proposed regulation would reduce the nicotine cap to 3 percent.

    Greenhut states that the proposed rules could make consumers vape more than they do now, switch to open systems that allow the use of higher-nicotine liquids or even mix their own e-liquid recipes, raising a host of troubling health concerns. Some might even return to cigarette smoking.

    “Regulators, at the behest of anti-smoking activists, are missing the forest for the trees—or at least overlooking the 7,000 carcinogenic chemicals that make traditional cigarette smoking so detrimental while focusing on one highly addictive but not particularly dangerous substance,” he states. “Many public-health advocates take a zero-tolerance approach toward anything tobacco or nicotine-related. They seek to ban—or overly regulate—e-cigarettes as a means to reduce availability. Their goal is abstinence, although they often support the use of Food and Drug Administration (FDA)-approved smoking-cessation products, such as patches and gum, that contain some nicotine.”

    In their zeal to quash the use of vape and other lower-risk nicotine products, health advocates are endangering public health, explains Greenhut. “One needn’t be a health expert to realize that if nicotine-addicted people can’t get enough nicotine to fulfill their needs, they will try alternatives,” he states. “Utah already adopted a defensible approach to nicotine regulation. Maybe now, the best approach is to leave well enough alone.”

    Steven Greenhut is Western Region director for the R Street Institute.

  • Boston Suburb Bans Sales to Anyone Born This Century

    Boston Suburb Bans Sales to Anyone Born This Century

    Photo: Ryan

    The town of Brookline, Massachusetts, will prohibit the sale of all tobacco-related products to anybody born after Jan. 1, 2000, reports Filter. The restriction, the first of its kind in the United States, is designed to prevent future generations from using not only tobacco but also nicotine.

    The law also prohibits individuals and companies from selling vapor products to anyone in that age category.

    In November 2020, Brookline officials voted overwhelmingly for the “first-in-the-nation Tobacco Free Generation,” paving the way for the current ban. On July 19, Massachusetts Attorney General Maura Healey confirmed that the measure did not interfere with any state laws or the constitution of the Commonwealth of Massachusetts, ensuring its legality.

    Public health groups lauded Brookline’s decision, which they view as a potential model for others to follow.

    “In addition to preventing a new generation from being addicted to nicotine—and facing the long-term health issues that come with it—Brookline citizens who smoke will be further motivated to quit as smoking becomes rarer around them,” said Lauren Huber, the executive director of Action on Smoking and Health, in a statement.

    Harm reduction proponents, by contrast, lambasted the idea. “Not only will enforcement of this become a nightmare, but it continues to push prohibitionist policies that inevitably send people to underground, unregulated markets,” Matt Sutton, the director of media relations for the Drug Policy Alliance.

    “The whole measure is ridiculous, especially if you imagine how it will function in 2030 or 2040,” echoed Clive Bates, a tobacco control expert and former director of ASH (UK). “It infantilizes adults, sets up illegal trade between older and younger age groups, and ultimately aims at creeping prohibition, with all the crime and abuse that will bring.”

    Brookline has a history of aggressive tobacco control. The suburb was an early adopter of indoor smoking bans, raised the legal age to purchase tobacco to 21 in 2014, and capped the number of tobacco licenses for retailers in the market. In the spring of 2019, Brookline banned the sale of flavored tobacco and vaping products, including menthol. Six months later, Massachusetts passed the same kind of flavor ban statewide.

  • Supreme’s 88Vape Sales Jump 36 Percent Amid Lockdown

    Supreme’s 88Vape Sales Jump 36 Percent Amid Lockdown

    The parent company behind the 88Vape brand, Supreme, announced revenues rose 36 percent as U.K. smokers attempted to quit smoking combustible cigarettes during Covid-19 lockdowns. The company’s total revenue was up 33 per cent at £122.3 million ($166 million) as of March 31, 2021. This is up from £92.3 million in same period of 2020.

    Gross profits jumped to £33 million, which helped the company to slash its debt by 64 percent, ending the financial year with a just £7.6 million burden compared with £21.3 million in 2020, according to City A.M. The strongest sales growth was found in vaping and its sports nutrition and wellness branch, the company said in a statement.

    Supreme’s partnership with convenience store chain McColl’s to supply shops with vaping products marked the company’s growth in the vaping sphere. The rollout of 88Vape products was completed in March 2021, adding an additional 1,180 retail convenience stores nationwide to Supreme’s portfolio.

    “There are clear and very exciting opportunities that exist for our business, particularly in categories like sports nutrition and wellness and vaping, and I look forward to providing further updates in due course as we capitalise on these,” Supreme CEO Sandy Chadha said. “We have made a good start to the current financial year and look to the future with confidence.”