Marlboro Cigarettes, produced by Philip Morris International
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Tobacco stocks fell on Monday in a report the Biden administration is studying whether to limit nicotine levels in cigarettes.
The report, which cited people familiar with the matter, was published in the Wall Street Journal. The newspaper said the discussion came as public officials approached a deadline to say whether or not they intended to ban the ban on menthol cigarettes.
The Biden administration is trying to determine whether to reduce nicotine levels along with a ban on menthol or as a separate policy, people reported in the newspaper.
Nicotine does not cause cancer, but it does make smoking more addictive. The goal of reducing nicotine levels would be to make cigarettes less addictive, in the hopes of convincing smokers to quit smoking or switch to other products that are considered safer.
The Food and Drug Administration, which has a regulatory oversight of tobacco, declined to comment on the report.
“Any action the FDA takes must be based on science and evidence and must take into account the real-world consequences of such actions, including the growth of an illicit market and the impact on hundreds of thousands of jobs from the farm to local shops around the world. country, “Altria spokesman George Parman told CNBC by email.
Shares of Altria closed more than 6% on the report. On Monday, during the extended trading period, shares fell an additional 2%.
Shares of British American Tobacco closed up 2% on Monday, while shares of Philip Morris International ended the day up more than 1%. Both stocks also fell after the market closed.
Philip Morris International declined to comment on the matter. The tobacco company does not sell or market cigarettes in the US, but its shares fell on the news independently.
British American Tobacco did not immediately respond to a request for comment. The company owns Reynolds American, the Camel cigarette maker.
Read the full Wall Street Journal story here.