Altria Shares Fall 7.5% After Reports FDA Will Pull Juul
22 Juni 2022 - 4:29PM
Dow Jones News
By Will Feuer
Shares of cigarette giant Altria Group Inc. fell more than 7% in
morning trading after The Wall Street Journal reported that the
U.S. Food and Drug Administration is preparing to order Juul Labs
Inc. to take its e-cigarettes off the U.S. market.
In 2018, Altria spent nearly $13 billion taking a 35% stake in
Juul. The company has taken non-cash charges on the investment as
regulatory scrutiny of Juul and the effects of its e-cigarettes on
kids escalated. As of March 31, Altria said the estimated fair
value of its investment in Juul was $1.6 billion.
The Journal reported Wednesday that the FDA could issue a
marketing denial order that follows a nearly two-year review of
data presented by Juul, which sought authorization for its tobacco
and menthol-flavored products to stay in the U.S. market. The order
could be announced as soon as Wednesday, the Journal said.
Shares of Altria fell 7.5% to $42.28 a share in morning trading.
The stock is down 11% so far this year, outperforming the S&P
500's 21% drop over that same period.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
June 22, 2022 10:14 ET (14:14 GMT)
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