By Investing.com — Shares of Philip Morris International Inc. (NYSE:PM) rose 1% following the U.S. Food and Drug Administration’s (FDA) authorization of 20 ZYN nicotine pouch products for marketing. The FDA’s decision, based on an extensive scientific review, marks the first time the agency has authorized the marketing of nicotine pouches, which are small synthetic fiber pouches containing nicotine designed for adult use.
The FDA’s authorization was granted after determining that the ZYN products meet the public health standards set by the 2009 Family Smoking Prevention and Tobacco Control Act. The products are considered to pose a lower risk of cancer and other serious health conditions compared to cigarettes and most smokeless tobacco products. Evidence from a study showed that a substantial proportion of adults who use cigarettes and/or smokeless tobacco products completely switched to the newly authorized nicotine pouch products.
Matthew Farrelly, Ph.D., director of the Office of Science in the FDA’s Center for Tobacco Products, stated, “In this case, the data show that these nicotine pouch products meet that bar by benefiting adults who use cigarettes and/or smokeless tobacco products and completely switch to these products.”
The FDA also noted that youth use of nicotine pouches remains low, with only 1.8% of U.S. middle and high school students reporting current use, despite the growing sales of these products. The authorization comes with stringent marketing restrictions to ensure that the products are targeted to adults aged 21 and over and to monitor the demographics of the audience reached by the ads.
The authorized products include ZYN Chill, ZYN Cinnamon, ZYN Citrus, ZYN Coffee, ZYN Cool Mint, ZYN Menthol, ZYN Peppermint, ZYN Smooth, ZYN Spearmint, and ZYN Wintergreen, each available in two nicotine strengths. The FDA emphasized that the authorization does not mean the products are safe or “FDA approved,” and that there is no safe tobacco product. The agency will closely monitor the marketing and use of these products and may suspend or withdraw authorization if necessary.
Philip Morris International is scheduled to report its next earnings on February 6. The company’s stock movement today reflects the market’s response to the FDA’s authorization, which is seen as a positive development for the company’s product portfolio.
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