Author: Staff Writer

As the proposed revision of the EU’s Tobacco Products Directive is now being discussed in the European Parliament, the UK-based electronic cigarette manufacturer, Totally Wicked Ltd, is sending an electronic cigarette to all 754 MEPs.

‘Accompanying the e-cigarette will be a briefing document that simply and factually explains why e-cigarettes do not belong in the TPD,’ the company said in a press note issued through PRNewswire.

‘A covering letter asks MEPs to examine the e-cigarette in detail and poses the following question: “What do you do with a product that mimics smoking, but is not a cigarette, that stops people smoking, but is not a medicine?”.

‘Totally Wicked is concerned that at present, EU policy makers believe that e-cigarettes should only be placed on the market if they are authorised pursuant to Directive 2001/83/EC (the Medicinal Products Directive).

‘By wishing to regulate e-cigarettes as a medicinal product, and by banning flavours, Totally Wicked believe the Commission and their supporters in Parliament are effectively banning e-cigarettes, a view that is supported by the European Parliament’s own Legal Affairs Committee.’

“The e-cigarettes we have chosen to send to MEPs look nothing like a conventional tobacco cigarette,” said Fraser Cropper, business development director at Totally Wicked. “Contrary to what many MEPs think, the vast majority of e-cigarettes sold throughout the EU look nothing like cigarettes.

“We hope to make it clear to MEPs that e-cigarettes are not a medicinal product and that users do not see themselves as ill or in treatment.

“MEPs have an incredible opportunity to craft regulation that reflects the reality of e-cigarettes – they are nicotine-containing consumer products that compete with cigarettes but with many superior characteristics, mainly by virtue of not using combustible tobacco.

“Tobacco cigarettes have been unequivocally proven to contribute to the early mortality of the European population. During this time, our legislators have been unwilling or unable to ban cigarettes, a product that if it came onto the market today, would without question be prohibited.

“Surprisingly, rather than be applauded and encouraged by our elected representatives as the potential panacea to the smoking epidemic, we find Article 18 of the draft TPD, stifling the potential of these products and effectively handing over the product’s concept to the pharmaceutical sector, destroying a safer alternative.”

Philip Morris USA will launch an e-cigarette under the MarkTen brand in Indiana in August, reports The Wall Street Journal.

MarkTen is a disposable e-cigarette but can be reused by buying a separate battery recharging kit and additional cartridges. Made in China by a contact manufacturer, the e-cigarette is expected to sell for about $9.50.

PM USA is the last of the major U.S. tobacco companies to introduce an e-cigarette in an industry-wide effort to diversify beyond the traditional cigarette business, which has become more challenging in the face of tax increases, smoking bans, health concerns and social stigma.

Last week, R.J. Reynolds Vapor Co., a subsidiary of Reynolds American, announced it would start selling its Vuse e-cigarette to retail outlets throughout Colorado in June.

Vuse was developed in-house by R.J. Reynolds R&D experts, and will be manufactured in the United States.

In April 2010, Lorillard acquired e-cigarette maker Blue Ecigs. It has expanded into more than 80,000 retail outlets.

Analysts estimate sales of e-cigarettes could double this year to $1 billion. Some have even said consumption of e-cigarettes could surpass consumption of traditional cigarette within the next decade. The Food and Drug Administration plans to assert regulatory authority over e-cigarettes in the near future.

Electronic cigarette maker Njoy said Monday it had raised $75 million in financing from investors including Napster founder and ex-Facebook president Sean Parker.

A group including Silicon Valley entrepreneur Sean Parker is investing $75 million is NJOY, a leading manufacturer of e-cigarettes, reports The Wall Street Journal. Parker co-founded the music-sharing site Napster, was the first president of Facebook and has been a big donor to cancer research.

NJOY accounted for 35.6 percent of the U.S. cigarette market in U.S. convenience stores in the four weeks ended May 11, according to Wells Fargo Securities. NJOY Kings’ brand more closely resembles regular cigarettes than do some competing products. The company has been advertising on TV and attracted celebrity endorsers such as musicians Courtney Love and Bruno Mars.

In March, former U.S. Surgeon General Richard Carmona joined NJOY’s board, saying it is important to explore alternatives to traditional cigarettes because the adult smoking rate has remained stuck at around 20 percent of the population.

E-cigarettes are believed to be less harmful than traditional cigarettes because they don’t rely on combustion However, the Food and Drug Administration warned consumers in 2009 the new technology could pose its own health risks and required further study. The long-term impact of inhaling e-cigarette vapor, which contains substances such as propylene glycol, has yet to be determined. The agency is planning regulation that would treat e-cigarettes as tobacco products.

Industry experts says U.S. retail sales of e-cigarettes could reach $1 billion this year—just 1 percent of the country’s cigarette market but twice that of 2012.

Vapor Corp. said on Wednesday that CEO, Kevin Frija, was due to make a presentation at the Second Annual Marcum LLP MicroCap Conference on May 30 at the Grand Hyatt Hotel, New York City.

The company’s presentation is scheduled to begin at 16.00 hours Eastern Daylight Time.

More information and registration is available at the conference website: http://www.marcumllp.com/microcap

Researchers in Australia, Canada, the UK and the US have concluded that electronic nicotine delivery systems (ENDS) might have the potential to serve as cessation aids, according to a paper published in the American Journal of Preventive Medicine.

The researchers set out to examine patterns of ENDS awareness, use, and product-associated beliefs among current and former smokers in four countries.

Their data, which was collected between July 2010 and June 2011, and analyzed through June 2012, came from studying 5,939 current and former smokers in Canada (1,581), the US (1,520); the UK (1,325); and Australia (1,513).

‘Overall, 46.6 per cent were aware of ENDS (US: 73 per cent, UK: 54 per cent, Canada: 40 per cent, Australia: 20 per cent); 7.6 per cent had tried ENDS (16 per cent of those aware of ENDS); and 2.9 per cent were current users (39 per cent of triers),’ according the Results section of an abstract of the paper.

‘Awareness of ENDS was higher among younger, non-minority smokers with higher incomes who were heavier smokers.

‘Prevalence of trying ENDS was higher among younger, nondaily smokers with a high income and among those who perceived ENDS as less harmful than traditional cigarettes.

‘Current use was higher among both nondaily and heavy (≥20 cigarettes per day) smokers.

‘In all, 79.8 per cent reported using ENDS because they were considered less harmful than traditional cigarettes; 75.4 per cent stated that they used ENDS to help them reduce their smoking; and 85.1 per cent reported using ENDS to help them quit smoking.’

The researchers concluded that the awareness of ENDS was high, especially in countries where they were legal – the US and UK.

‘Because trial was associated with nondaily smoking and a desire to quit smoking, ENDS may have the potential to serve as a cessation aid,’ they said.

The European Commission has said that the majority of e-cigarettes sold in the EU would most likely fall under pharmaceutical legislation if the commission’s proposed revisions to its Tobacco Products Directive were to be accepted. The commission has proposed that e-cigarettes would fall under the legal framework for medicinal products if they contained levels of nicotine above certain thresholds.

It is generally thought that, for cost or technical reasons, most e-cigarette companies would struggle to have their above-the-threshold products authorized under pharmaceutical laws, and that below-the-threshold products would be unacceptable to many consumers.

“The nicotine threshold has been identified by considering the nicotine content of nicotine replacement therapies that have already received a marketing authorization by Member States,” the commission said in a written answer to two questions raised by the Polish MEP, Filip Kaczmarek.

“For electronic cigarettes below the thresholds, the commission proposal foresees that they carry health warnings. They would also have to comply with the General Product Safety Directive as … is the case at the moment.”

The Philippine health department warned the public on April 12 against e-cigarettes, saying the tobacco substitute could turn children into smokers.

E-cigarettes have been gaining favor among Filipinos as higher tobacco taxes make smoking more expensive, according to a story in the Manila Times.

Food and Drug Administration director-general Kenneth Hartigan-Go disputed what he said were claims by vendors that e-cigarettes helped smokers kick the habit.

“Wittingly or unwittingly, the electronic cigarette promotes smoking among children and the youth. It makes them less fearful of hazards and risks of smoking,” he said in a health advisory posted on its website. “The public is advised not to smoke at all and not to use cigarettes, cigars, or e-cigarettes,” added Hartigan-Go.

Nearly one in five Filipinos smokes, according to the health department.

A law that came in effect this year will gradually raise the tax on cigarettes over five years, which would roughly double the price per pack to about PHP52 ($1.27) by 2017.

A basic e-cigarette kit in the Philippines costs as little as $24, featuring a battery-powered vaporiser that delivers a nicotine-laced mist.

The Philippine health department warned the public on April 12 against e-cigarettes, saying the tobacco substitute could turn children into smokers.

E-cigarettes have been gaining favor among Filipinos as higher tobacco taxes make smoking more expensive, according to a story in the Manila Times.

Food and Drug Administration director-general Kenneth Hartigan-Go disputed what he said were claims by vendors that e-cigarettes helped smokers kick the habit.

“Wittingly or unwittingly, the electronic cigarette promotes smoking among children and the youth. It makes them less fearful of hazards and risks of smoking,” he said in a health advisory posted on its website. “The public is advised not to smoke at all and not to use cigarettes, cigars, or e-cigarettes,” added Hartigan-Go.

Nearly one in five Filipinos smokes, according to the health department.

A law that came in effect this year will gradually raise the tax on cigarettes over five years, which would roughly double the price per pack to about PHP52 ($1.27) by 2017.

A basic e-cigarette kit in the Philippines costs as little as $24, featuring a battery-powered vaporiser that delivers a nicotine-laced mist.

The Food and Drug Administration (FDA) announced it will not register e-cigarettes, as health products as these devices are against the intent of the country’s tobacco regulation law, according to a story on MB.com.ph, a Minilan news website.

In an advisory, FDA acting Director General Kenneth Hartigan-Go said e-cigarettes are “contrary to the intent and provisions of Republic Act No. 9211, otherwise known as the Tobacco Regulation Act of 2003.”

He said the law aims to protect the youth from nicotine addiction and chronic respiratory ailments including cancer that are caused by inhalation of highly toxic substances found in tobacco and cigarettes. “Wittingly or unwittingly, the electronic cigarette promotes smoking among children and the youth. It makes them less fearful of hazards and risks of smoking. It is opposed to the DOH health goal to stop cigarette smoking and tobacco use,” he said, adding that the FDA has not registered any e-cigarette products and will not register these as health products under the FDA Act of 2009.

The e-cigarette company, Vapor Corp, announced that net sales for the year 2012 had reached a record $21.4 million, 33.6 percent up on its net sales during 2011.

The company’s cost of goods sold, at $13.2 million, was 96.4 percent higher than it was during 2011, while gross margins decreased to 38.1 percent from 57.8 percent.
Overall, Vapor made a net loss of $1,920,972 during 2012, as compared with net income of $713,338 during the prior year..
Commenting on the results, CEO Kevin Frija, said the company was happy to have achieved its fourth consecutive year of sales growth.

“This is encouraging for our efforts in 2013, as we have major initiatives lined up, the most important of which is the expansion of our soft-tip filters and Krave King product line,” said Frija.

“2012′s results were as we anticipated with record sales of $21.4 million offset by heightened expenses incurred as we made certain strategic investments in the business.

“We brought on our co-founder Jeffrey Holman as president, Harlan Press as our chief financial officer and Christopher Santi as our chief operations officer. Assembling this executive team was critical to building a solid foundation for the company to operate effectively, strategize intelligently, and, in essence, execute on all of our expansion initiatives. We now believe we have the right management team in place to take the company to its next stage of growth.”