Tag: e-cigarettes

Federal Judge Dismisses Investor Suit Against RLX

Photo: Gorodenkoff
A U.S. federal judge dismissed a class-action lawsuit brought against RLX Technology by investors who claimed that the company overestimated its financial prospects before its initial public offering, reports Lexis Legal News.
Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York found that RLX Technology did not misrepresent or omit known information about the future regulation of e-cigarettes in China.
“[T]he Offering Materials adequately disclosed the possibility of stricter regulations—Indeed, the possible outright prohibition—of e-cigarettes in China,” Engelmayer wrote. The judge also found that the plaintiffs lacked standing to bring a claim because they did not purchase their shares in the IPO.
Founded in 2018, Beijing-based RLX went public on the New York Stock Exchange in January 2021. The offering raised $1.39 billion, according to data provider Dealogic. Its stock price fell sharply after Chinese regulators in March proposed treating vapor products like regular cigarettes.
The value of RLX shares dropped nearly 48 percent from $19.46 per share on March 19 to $10.15 at closing on March 22. As of November, the shares were valued at just over $4.
Certain investors later alleged that RLX in its offering documents made misleading statements about China’s regulations of e-cigarette products that made the company’s value appear to be greater than it is.
It allegedly stated that its products were not subject to regulation and would not fall under China’s Tobacco Monopoly Law and failed to disclose that Chinese regulators were developing new standards for e-cigarettes under which they would be regulated in a manner similar to the way ordinary cigarettes are regulated.
It also allegedly stated that it expected to continue profiting from China’s growing vaping market, but allegedly failed to disclose how its profits would be affected by the new Chinese regulations of the vaping industry.
October 3, 2022
Another Report Finds Vape Less Risky Than Smoking

Photo: Prostock-studio
Using vaping products rather than cigarettes leads to a substantial reduction in exposure to toxicants that promote cancer, lung disease and cardiovascular disease, according to new research from the Institute of Psychiatry, Psychology and Neuroscience at King’s College London.
Commissioned by the Department of Health and Social Care’s Office for Health Improvement and Disparities, the independent report represents the most comprehensive review of the risks of vaping to date. It found that, while vaping is not risk free—particularly for people who have never smoked—it poses a small fraction of the health risks of smoking in the short to medium term.
The report reviewed many aspects of vaping, including who is vaping and what products, the effects on health (both absolute and compared with smoking) and public perceptions of harm. The authors examined studies of biomarkers of exposure (measures of potentially harmful substance levels in the body) as well as biomarkers of potential harm (measures of biological changes in the body) due to vaping or smoking.
The strongest evidence came from biomarkers of exposure. An exploration of the available studies found that levels of tobacco specific nitrosamines, volatile organic compounds and other toxicants implicated in the main diseases caused by smoking were found at significantly lower levels in vapers. Among vapers, overall levels of nicotine were lower or similar to smokers.
When comparing biomarkers between people who vape and people who don’t smoke or vape, they were often similar, but in some cases there was higher exposure when vaping. The investigators therefore concluded that whilst less harmful than smoking, vaping is likely to sustain some risks particularly for people who have never smoked.
While the investigators are clear on the benefits of vaping vs smoking, they found that public perceptions are lagging behind. In 2021, only 34 percent of adults who smoked accurately perceived that vaping was less harmful than smoking, while only 11 percent of adult smokers knew that nicotine wasn’t the primary cause of the health risks connected to smoking tobacco.
Vaping has gained popularity among British adults. According to the latest data from the Action on Smoking and Health (ASH) Smokefree GB Adult survey, current vaping prevalence is 8.3 percent in 2022, compared with 7.1 percent in 2021 and 6.3 percent in 2020.
Vaping has also increased among young people. Data from the ASH Smokefree GB Youth survey of 11-to 18-year-olds in England show that current vaping prevalence (including occasional and regular) is 8.6 percent in 2022, compared with 4.0 percent in 2021 and 4.8 percent in 2020. Use of disposable vaping products has increased substantially over the last year. Vaping among young people who have never smoked remains very low at 1.7 percent.
“This important study is the latest in a series which carefully pulls together the science on vaping to help reduce the damage from smoking,” said Jeanelle DeGruchy, deputy chief medical officer for England, in a King’s College press note.
“Vaping is substantially less harmful than smoking so the message is clear, if the choice is between smoking and vaping, choose vaping. If the choice is between vaping and fresh air, choose fresh air.”
October 2, 2022
Azerbaijan Sets Excise Tax Rate for Vaping Products
Credit: ArtEvent ET
Azerbaijan has determined its excise rate for vaping and other e-cigarette products, according to media reports.
The Cabinet of Ministers has made relevant changes to the “Excise duties for imported excise goods into the Republic of Azerbaijan,” according to Today.az.
An excise tax rate of 14 manat ($8.20) has been set for 1,000 units of the product.
The corresponding decision will enter into force 30 days after its publication.
October 2, 2022
Altria Ends Non-Compete Agreement With Juul Labs

Altria Group on Friday said it had exercised the option to be released from its non-compete deal with Juul Labs. The move comes nearly four years after the tobacco giant purchased a 35 percent stake in the e-cigarette manufacturer that at the time was dominating the market.
Altria is looking to permanently terminate its non-competition obligations to Juul Labs, give up certain rights including its board designation rights and reduce its voting power, according to a 8-K filing to the Securities and Exchange Commission.
The filing states Altria has exercised its option to permanently terminate its non-competition obligations to Juul Labs, losing the right to the board designation and significantly reducing its voting power, according to Barron’s.
“This decision … increases the financial and strategic options we can pursue to secure our business and address the impact of the (U.S. Food and Drug Administration’s) now stayed [marketing denial] order,” a Juul spokesperson said.
In July, Altria slashed the value of its stake in Juul to $450 million, down from the original value of $12.8 billion, allowing itself the option to be released from the non-compete clause and invest in or engage with any other e-cigarette manufacturers.
However, it did not seek to be released from the obligations at the time, and said it saw value in its investment rights in Juul. “The decision to terminate our non-compete maximizes our flexibility to compete in the e-vapor space while maintaining our economic interest in Juul,” Altria said on Friday.
A change in its stance means Altria could go it alone or pursue other vaping products. Privately owned Njoy, which has already survived the FDA’s controversial premarket tobacco product application (PMTA) process, could be a takeover target for Altria, according to some analysts.
In July of this year, NJOY Holdings Inc hired bankers for a possible sale of the company. The news report stated that privately held NJOY was likely to be valued at up to $5 billion.
“It’s more likely that Altria will seek to buy its way back into the e-cigarette category (which represents 7 percent of U.S. nicotine sales),” Cowen analyst Vivien Azer said.
October 1, 2022
GTNF 2022: BAT’s Wheaton Calls for More Unity in THR
Stakeholders in the vaping and tobacco industry must work together in their efforts to end combustible cigarette use. During the 2022 Global Tobacco and Nicotine Forum (GTNF), Chief Growth Officer for BAT, Kingsley Wheaton, said greater collaboration is needed between the industry, governments, and intergovernmental organizations to accelerate tobacco harm reduction (THR) policy.
“We must provide adult consumers with a portfolio of products that are a better choice than cigarettes. And, so that consumers are able to make informed decisions about those choices, public health needs to accurately communicate risk, while the industry should be able to responsibly communicate the benefits of switching via appropriate marketing freedoms,” Wheaton told the estimated 289 conference attendees.
BAT estimates that it will have helped 50 million adult smokers to switch to less harmful non-combustible nicotine products by 2030, according to Wheaton. The company is also investing heavily in research and development, including its state-of-the-art Innovation Hub in Trieste, Italy, and conducting industry-leading science. One recent BAT study showed smokers who switched exclusively to BAT’s glo product saw significant and sustained improvements in several indicators of potential harm.
“The results from this study represent the most important data we have ever generated about glo in particular, and for the tobacco heating product category in general,” Wheaton said. “But this alone is not enough. Our voices cannot, should not and must not be the only one in this debate.”
The keys to unlocking the total transformation of the industry, and positively impacting public health outcomes, according to Wheaton, were:
Continue to produce robust and accessible science – science is key to unlocking industry transformation, and cannot be done by industry figures alone. The voice of global public health scientists validating the role of tobacco harm reduction is needed.
Maintain the combination of insights and innovation – marrying the science of tobacco harm reduction is necessary to build A Better Tomorrow. Ultimately, it is the consumer that will decide which products they use.
Let trusted brands drive change responsibly – in Vuse and glo, BAT has created two billion-dollar brands² which are signposts for quality. Freedoms to responsibly inform adult smokers about the potential benefits of these products compared to smoking are key to delivering tobacco harm reduction.
Transition from the old tobacco control approach of “quit or die” to sustainable change – where appropriate tobacco harm reduction policies have been adopted, such as in the UK and Japan, smoking rates have reduced.
Embrace change and progression – fostering engagement between governments, intergovernmental bodies and industry figures is necessary to facilitate the exchange of crucial knowledge and data.
BAT has a strong presence at GTNF 2022. Alongside Wheaton, BAT leaders sharing insights into how science, technology and innovation are driving forward BAT’s progress include David O’Reilly, director of Scientific Research; Carlista Moore Conde, group head of New Sciences; Sharon Goodall, group head of Regulatory Science; and Flora Okereke, head of Global Regulatory Insights and Foresights.
“Perhaps the greatest change we’ve seen as an industry is the emergence of reduced-risk products,” Wheaton said. “As a result, reducing the health impact of our business has, for some time, been BAT’s North Star … Together, all stakeholders have a responsibility to make a difference, in a whole-of-society approach.”
September 29, 2022
CTP’s King to AP: Nicotine Salts Show Potential
During an exclusive interview with the Associated Press, the director of the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), Brian King, said the FDA is well on its way in setting a foundation for substantial reductions in combustible tobacco smoking with the product standards such as a menthol ban and flavor bans for e-cigarettes and cigars.
Brian King / Credit: FDA
When asked about several surveys that have shown many adults think e-cigarettes are as dangerous as traditional cigarettes, King said he was fully aware of the misperceptions surrounding vaping products those misperceptions aren’t consistent with the known science.
“We do know that e-cigarettes — as a general class — have markedly less risk than a combustible cigarette product,” King said. “That said, I think it’s very critical that we inform any communication campaigns using science and evidence. It has to be very carefully thought out to ensure that we’re maximizing impact and avoiding unintended consequences.”
King also said he believes “there’s a lot of really important science and innovations” that have occurred in the vaping industry in recent years, adding that the most notable is nicotine salts in e-liquids.
“We know that when you smoke a tobacco product, it’s a very efficient way to deliver nicotine across the blood-brain barrier. So it’s been very difficult to rival that efficiency in another product,” said King. “But in the case of nicotine salts you have the potential to more efficiently deliver nicotine which could hold some public health promise in terms of giving smokers enough nicotine that they would transition completely.
“But you also have to consider the opposite side of the coin, which is the inherent risks of initiation among youth. So I do worry about that … there’s a lot happening and I think that it could be promise or peril. But I think it’s important that the science drives that.”
September 27, 2022
BAT Joins Snoop Dogg in Cannabis Firm Investment

Credit: Greenserenityca
BAT, via one of its wholly owned group companies, has acquired a noncontrolling minority stake in Sanity Group, one of Germany’s leading cannabis companies.
This investment is complementary to other recent investments made by BAT companies, most notably the strategic R&D collaboration established with Canada’s Organigram Holdings announced in March last year.
Sanity Group, which is based in Berlin, produces CBD consumer brands and medical cannabis brands. It also has a proven track record in the research, development and marketing of cannabis products.
“Investing in Sanity Group is another example of BAT’s ongoing work to explore numerous areas beyond nicotine, positioning BAT for future portfolio growth across a range of categories and geographies,” said Kingsley Wheaton, chief growth officer at BAT, in a statement.
“We continue to transform our business through better understanding of our current and future consumers as part of our ‘A Better Tomorrow’ purpose.”
Sanity secured $37.6 million in the BAT-led Series B funding round, according to Sanity founder and CEO Finn Age Hansel. About half of the funding will go toward strengthening Sanity’s medical business. The rest of the funding will go toward preparing for the possible legalization of recreational marijuana in Germany.
Germany has not legalized recreational cannabis yet, but action is expected sooner rather than later. Germany’s coalition government is “working actively on it and really want[s] to come to a good draft of the law by the end of this year,” Hansel said. “This is really a priority topic for the government.”
“This funding is an important milestone for us and a strong signal toward the future of cannabis in Germany and Europe,” said Max Narr, chief investment officer at Sanity Group. “Against the backdrop of a challenging global economy, we are proud to have achieved a funding round of this magnitude.”
September 26, 2022
South Africa: Treasury Stands by Vape Tax Proposal

selensergen
The National Treasury and South African Revenue Service (SARS) is standing by its e-cigarette tax proposals despite protests from businesses, reports Businesstech.
Speaking to the parliamentary standing committee on finance this week, the National Treasury and SARS responded to comments by businesses regarding changes proposed under both the Draft Tax Administration Amendment Bill and the Taxation Laws Amendment Bill.
The National Treasury wants to apply an average excise rate for e-cigarettes of ZAR2.91 ($0.16) per milliliter and apportioned in a ratio of 70:30 between nicotine and non-nicotine elements.
Vapor companies said that considering South African consumers’ purchasing power, a ZAR0.70 duty per milliliter is more than appropriate.
The industry also cautioned that excise duty on vaping products would affect the trade of legitimate tax-paying vendors, drive job losses in the sector and drive consumers to more harmful combustible cigarettes.
The National Treasury countered that the tax is necessary and legitimate and would assist in closing regulatory loopholes that leave South Africans in vulnerable positions.
It added that the long-term health effect of e-cigarettes are unknown, and therefore the government is taking cautionary steps, even if vaping is marketed as a less harmful alternative to smoking.
In a recent report, BAT South Africa stated that the proposed excise duty on vaping products should be imposed on all “actors” equally to ensure fair competition and an equal playing field for all participants. However, prices would rise, the company warned.
The current proposed rate is an introductory rate that may be adjusted in the short to medium term, the Treasury said.
September 26, 2022
Maine Backs Out of Multi-State Juul Labs Settlement

Credit: Ianm35
Not everyone is satisfied with Juul Labs’ multi-state settlement over its youth marketing practices. The Maine Attorney General’s Office on Friday said his state would be backing out of its $11 million agreement with e-cigarette manufacturer after objecting to certain conditions from the company.
Maine was set to receive an estimated $11.6 million over the next six to 10 years as part of a nearly $440 million settlement between the manufacturer and 33 states and territories. The investigation found that Juul had marketed its products to youth.
However, as part of the agreement, Juul wanted states to waive the rights of school districts to pursue their own lawsuits, according to the Maine AG’s office. Maine wasn’t willing to agree to that.
“We are disappointed in the outcome of these negotiations, but ultimately we were unwilling to waive the rights of other entities who are also trying to hold Juul accountable for its deception,” Attorney General Aaron Frey said in a statement to The Maine Monitor.
It was not immediately clear if other states would also abandon the agreement.
September 25, 2022
Malaysia Pushing Forward on Bill to ‘Endgame’ Vapes

Credit: K Stocker
The Malaysian government is pushing forward a bill that seeks to ban vaping and smoking for those born from 2007, after making amendments following resistance from some lawmakers.
Health Minister Khairy Jamaluddin said he hopes the legislation – dubbed a “generational endgame” (GEG) – will receive the support of lawmakers when it is tabled at the next parliament session in October.
It was referred to a parliamentary select committee in August for further scrutiny amid criticism that some of its features would infringe on personal freedom.
“The enforcement powers really are focused and restricted only against distribution, manufacturing and supply,” Khairy said during a Sept. 23 group interview, according to media reports. “We’ve clarified that in the latest amendments, so if you contravene the law in terms of GEG smoking offence, then the enforcement officer cannot frisk you, they cannot take away your computer or your phone or things like that.”
Malaysian lawmakers last month delayed a vote on the bill and referred it to the select committee to examine and make recommendations for improvement.
The bill also bans those born after 2007 from buying, possessing or using tobacco and other related products even after they reach 18.
Shopkeepers and distributors will be prohibited from selling such products to anyone in the age group under the proposal.
September 25, 2022