22nd Century's VLN cigarettes offer reduced nicotine content and are FDA authorized, supporting smoking harm reduction efforts.
Quiver AI Summary
22nd Century Group, Inc. has been highlighted in a Washington Post article discussing new FDA policies aimed at reducing the health risks associated with smoking, particularly through the implementation of reduced nicotine content in cigarettes. The FDA's recent proposal, which received OMB approval, is seen as a significant step towards cutting smoking harm, a policy originally initiated during the Trump administration. 22nd Century's VLN cigarettes, which contain 95% less nicotine than traditional cigarettes, are the only FDA-authorized combustible product in this category and are now available in over 5,000 stores nationwide. The company asserts that their product not only meets regulatory requirements but is commercially viable, enabling smokers to effectively manage their nicotine intake while contributing positively to public health.
Potential Positives
- 22nd Century's VLN reduced nicotine content cigarettes are the only authorized combustible solution under the FDA’s Modified Risk Tobacco Product designation, positioning the company as a leader in nicotine harm reduction.
- The company's products are available at over 5,000 retail locations across the U.S., demonstrating significant market penetration and consumer demand.
- The FDA's policy proposal is projected to potentially benefit 13 million smokers, highlighting the public health significance of 22nd Century's commercial offerings.
- 22nd Century has established a growing interest from retailers in reduced nicotine cigarettes, suggesting a burgeoning new market category that aligns with consumer trends towards reduced harmful products.
Potential Negatives
- The press release places significant emphasis on government regulation and FDA policies, which may create concerns regarding the company's reliance on external policy developments for its market positioning.
- The mention of “Big Tobacco” raises the possibility of competitive pushback or challenges from established tobacco companies responding to the new market conditions posed by reduced nicotine products.
- The use of terms like “David-and-Goliath story” could imply an uphill battle for the company against larger competitors and may reflect a lack of confidence in sustained market leadership.
FAQ
What are VLN Reduced Nicotine Cigarettes?
VLN Reduced Nicotine Cigarettes are the first authorized low-nicotine combustible products by the FDA, designed for harm reduction in smokers.
How do VLN cigarettes help with nicotine control?
VLN cigarettes contain 95% less nicotine than traditional cigarettes, allowing smokers to manage their nicotine intake effectively.
Where can I find VLN cigarettes?
VLN cigarettes are available at more than 5,000 retail locations across the United States.
What is the FDA's role in reduced nicotine policies?
The FDA mandates reduced nicotine content in cigarettes to minimize smoking-related health harms, supporting public health initiatives.
How many smokers could benefit from reduced nicotine cigarettes?
The FDA estimates that 13 million smokers could benefit from the reduced nicotine policy in the first five years.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$XXII Insider Trading Activity
$XXII insiders have traded $XXII stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $XXII stock by insiders over the last 6 months:
- LAWRENCE FIRESTONE (Chief Executive Officer) purchased 39,000 shares.
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$XXII Hedge Fund Activity
We have seen 14 institutional investors add shares of $XXII stock to their portfolio, and 12 decrease their positions in their most recent quarter.
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- ANSON FUNDS MANAGEMENT LP added 3,140,452 shares (+inf%) to their portfolio in Q3 2024
- CERITY PARTNERS LLC added 21,500 shares (+inf%) to their portfolio in Q3 2024
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- GM ADVISORY GROUP, LLC added 10,013 shares (+inf%) to their portfolio in Q3 2024
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Full Release
VLN Reduced Nicotine Content Cigarettes from 22nd Century Is the Only Authorized Combustible Solution to Support the FDA’s War on Smoking
MOCKSVILLE, N.C., Jan. 14, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine and believes smokers should have a choice about their nicotine consumption, was featured today in a Washington Post news story ( https://www.washingtonpost.com/health/2025/01/14/cigarettes-low-nicotine-regulation-biden/ ) addressing new federal policy activities that could reduce the health harms of smoking. The article focuses on a recent U.S. Food and Drug Administration policy proposal to mandate reduced nicotine content in cigarettes, which recently cleared review by the U.S. Office of Management and Budget on January 3, 2025.
“While we are in the final days of the Biden administration, this policy – which may be the most ambitious and impactful smoking harm reduction policy in a generation – was originally jumpstarted in 2017 during the first Trump administration by then FDA Commissioner Scott Gottlieb, a major proponent of smoking harm reduction,” said Larry Firestone, Chief Executive Officer of 22nd Century Group. “We are excited to see federal policy continue to progress even as we continue to roll out the first reduced nicotine cigarettes commercially across the U.S., demonstrating that adult smokers who want this product can use it effectively to control their nicotine intake.”
The proposal is based on decades of clinical research underpinned by reduced nicotine content cigarettes manufactured by 22nd Century showing that adult smokers can control their smoking when using a reduced nicotine content cigarette in place of conventional nicotine cigarettes currently sold by the major tobacco companies. 22nd Century’s VLN branded low nicotine cigarettes are the first and only combustible tobacco products to receive authorization by the FDA under its Modified Risk Tobacco Product designation and available at more than 5,000 stores across the country.
“While this may be a David-and-Goliath story, we are quickly moving ahead with an increasing number of retailers who are interested in not only putting our VLN products on the shelf, but also stocking their own or other brands of reduced nicotine cigarettes that we can manufacture or license using our proprietary tobacco strains, creating a new category in the market. Using VLN products mirrors the growing non-alcoholic beer and spirits segments in adult beverage as consumers seek alternatives to traditional products in those categories.”
“The FDA originally estimated in the first five years alone that 13 million smokers could benefit under this policy, a tremendous figure for public health across the country. Big Tobacco has tried to question whether this policy could be achieved on a commercial basis or suggest contraband cigarettes would be a major issue. 22nd Century has demonstrated that not only is this policy commercially viable, it is also effective at the primary goal – controlling nicotine intake and cutting smoking activity,” said Firestone.
About 22nd Century Group, Inc.
22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption.
We created our flagship product, the VLN ® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption . VLN ® cigarettes have 95% less nicotine than the traditional cigarette and have been proven to greatly reduce nicotine consumption. Instead of offering new ways of delivering nicotine to addicted smokers, we offer smokers the option to take control of their nicotine consumption and make informed and more productive choices, including the choice to avoid addictive levels of nicotine altogether.
Our wholly owned subsidiaries include a leading cigarette manufacturer that produces all VLN® products and provides turnkey contract manufacturing for other tobacco brands both domestically and internationally. The 60,000 square foot facility in Mocksville, North Carolina has the capacity to produce more than 45 million cartons of combusted tobacco products annually with additional space for expansion.
Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with 95% less nicotine. Our extensive patent portfolio has been developed to ensure we have the only low nicotine combustible cigarette in the United States and critical international markets.
VLN ® and Helps You Smoke Less ® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com , on X (formerly Twitter) , on LinkedIn , and on YouTube .
Learn more about VLN ® at tryvln.com .
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 28, 2024, and in the Company’s Quarterly Reports filed on May 15, 2024, August 13, 2024, and November 11, 2024. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
[email protected]
214-597-8200