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Year: 2023

  • PMI to Supply Below-Cost Vapes Down Under

    PMI to Supply Below-Cost Vapes Down Under

    Image: PMI

    Philip Morris will supply some Australian pharmacies with VEEV products at an 80 percent margin “introductory offer” if the pharmacies sign a supply deal directly with the company, according to The Guardian.

    The offer is on condition that pharmacies do not sell a pack of two VEEV pods for more than $14.90 or VEEV devices for more than $19.90, which is cheaper than the prices wholesalers can offer.

    Simon Chapman, emeritus professor of public health and tobacco control at the University of Sydney, accused PMI of “playing a long game here to wreck the prescription access model by disrupting the competition.”

    “PMI [has] been implacably opposed to the provision of nicotine vaping products via prescription, actively lobbying for a consumer model,” Chapman said.

    “Their efforts in Australia to eliminate competition via the 80 percent margin to pharmacists need to be considered in the context of its global ambitions to oppose prescribed access. Any tobacco company still actively marketing tobacco products and opposing effective tobacco control while ostensibly trying [to] promote a product with claims to move significant customers away from its tobacco products is trying to walk on both sides of the street.”

    PMI has been lobbying Members of Parliament to overturn the country’s ban on vaping.

    Pharmacy and health groups should urge members not to prescribe VEEV products or enter into agreements involving VEEV, said Chapman.

    The pharmaceutical Society of Australia (PSA) urged pharmacists to be skeptical of PMI’s offer. “There are currently no nicotine vaping products registered on the Australian Register of Therapeutic Goods, and no company should be advertising unregulated products to Australian healthcare professionals,” a PSA spokesperson said.

    Nick Zwar, chair of the Royal Australian College of General Practitioners smoking cessation advisory group, said general practitioners “would want to know if it was a product that was owned by a tobacco company.”

    “Our view is that medicine should be distributed through national wholesalers because that provides comfort to the doctors and the pharmacies that these products are being treated as medicines as they should be,” said Richard Lee, CEO of Liber Pharmaceuticals. “Anybody can present a script anywhere, whereas under the Philip Morris arrangement, people will have to present a script at a pharmacy that has done a deal with Philip Morris to get that product.”

    “We have always been open and transparent about the fact we will work within whatever legal and regulatory framework exists for these products in Australia,” a PMI spokesperson said. “This is in stark contrast to dozens of other vaping companies who are providing their product via the black market.”

  • Court Sets Wrongful Death Timeline

    Court Sets Wrongful Death Timeline

    Image: mehaniq41 | Adobe Stock

    The Supreme Judicial Court of Massachusetts ruled that family members of a deceased individual cannot file wrongful death suits if the death occurred more than three years after the injury that caused the death, reports Reuters. This ruling upholds the dismissal of claims against Philip Morris USA and R.J. Reynolds Tobacco Co. 

    Under Massachusetts law, according to Justice David Lowy, wrongful death claims are “derivative” of personal injury claims that the deceased could have brought in life. If the three-year statute of limitations has run out at time of death, family members have no wrongful death claims. 

    This latest decision follows two lawsuits, one against Philip Morris USA in 2017 (Fabiano v. Philip Morris USA Inc and others, No. SJC-13282) and one against R.J. Reynolds in 2016 (Fuller v. R.J. Reynolds Tobacco Co and others, No. SJC-13346). Both were brought by the wives of men who became sick and died after lifetimes of smoking. The lawsuits accused the companies of breach of warranty, negligence and conspiracy. These wrongful death claims were dismissed by different trial judges, who stated that both men would have been time-barred from bringing their own claims when they died, meaning their family members were not able to file wrongful death claims.

    The Supreme Judicial Court agreed to hear both cases. The court previously decided that wrongful death claims are derivative of the deceased’s claims but had not addressed how that would affect the statute of limitations, according to Lowy’s opinion.

    The statute of limitations for the deceased’s underlying injury claims determines whether surviving family can bring a wrongful death claim, according to the language of the Massachusetts wrongful death law.

    Lowy wrote that the decision “in no way changes what has long been true of persons suffering from serious injuries,” in a footnote addressing an argument by plaintiffs that the decision creates a “fundamental unfairness” by forcing sick individuals to bring lawsuits while they are suffering or forfeit their heirs’ rights to recovery.

    “Once those injuries are knowable, plaintiffs must assert their rights within a specified period of time or lose their ability to recover for their injuries,” Lowy wrote. 

  • Supreme Shares Soar After Elf Bar Agreement

    Supreme Shares Soar After Elf Bar Agreement

    Image: Tobacco Reporter archive

    Shares in the U.K. vaping company Supreme rose 5 percent after the company announced it is now the “master distributor” for two leading U.K. vaping brands—Elf Bar and Lost Mary, reports City AM.

    The London-listed company expects the partnership to generate revenues of £25 million ($36.06 million) to £30 million over the next fiscal year ending March 2024.

    The news comes amid a political crackdown on vape products—especially for those underage.

    Sandy Chadha, CEO of Supreme, said the agreement will allow the group to “fully leverage its unique technical, regulatory, compliance and quality assurance capabilities within the vaping sector.”

    “We have seen a hugely positive response from both established and new retailers who view Supreme as an ideal partner to supply these products across the U.K.,” Chadha added.

    Supreme says its strong market presence, distribution network and compliance capabilities provide Elf Bar and Lost Mary with a “ready-made blueprint” distribution strategy.

    The company will report sales of the newly added brands separately from its existing vaping category, which includes Supreme’s proprietary 88Vape brand.

    Supreme nearly doubled revenues to £76.1 million this year, while posting an £8.6 million increase in gross profit.

  • WHO Releases Provisional Agendas

    WHO Releases Provisional Agendas

    Photo: Alexey Novikov

    The World Health Organization has released its provisional agendas for the 10th session of the Conference of the Parties (COP10) to the Framework Convention on Tobacco Control and the third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP3), the FCTC announced on its website.

    Held in Panama, COP10 will take place Nov. 20-25 and MOP3 will take place Nov. 27-30.

    The provisional COP10 agenda is here and the provisional MOP3 agenda is here. Participants in COP10 can register here and participants in MOP3 can register here.

    Guidance on registration is also available on the FCTC website.

    The FCTC is the first international treaty negotiated under the auspices of the WHO. It was adopted by the World Health Assembly on May 21, 2003, and entered into force on Feb. 27, 2005.

    The Protocol to Eliminate Illicit Trade in Tobacco Products is the first protocol to the FCTC, and a new international treaty in its own right. The Protocol builds upon and complements Article 15 of the FCTC, which addresses means of countering illicit trade in tobacco products. It was adopted by consensus on Nov. 12, 2012, at the fifth session of the Conference of the Parties to the FCTC in Seoul and entered into force on Sept. 25, 2018. The Protocol currently includes 67 Parties.

  • Plant-Based Biologics Market Thriving

    Plant-Based Biologics Market Thriving

    Photo: Kentucky Bioprocessing

    The global plant-based biologics market is anticipated to generate a revenue of $182.9 million by 2031, expanding a compound annual growth rate of 4.8 percent from 2022, according to a new report published by Research Dive.

    Plant-based biologics are medical products that are produced by utilizing bioengineered plants to create complex molecules like proteins, antibodies, and vaccines. These biologics are produced more sustainably and economically than conventional animal cell-based biologics. The use of plant-based biologics may have substantial effects on the pharmaceutical industry by lowering the costs of medicine development and production and addressing ethical concerns about the use of animals in medical research.

    Tobacco continues to be the most widely used plant for the manufacture of pharmaceuticals. Due to their high biomass yield, ease of genetic modification and quick growth rate, tobacco plants are well-suited for biologics production. Several companies, including Medicago, Baiya Phytopharm and Kentucky Bioprocessing have used tobacco to developed vaccines and other medical treatments.

    According to Research Dive, North America dominated the global plant-based biologics market in 2021. Not only does the continent offer a sizable market, but it also offers a supportive regulatory environment and strong research infrastructure.

    Tobacco Reporter explored tobacco’s potential as a “green bioreactor” in its April 2022 issue.

  • Investors Buy 22nd Shares ‘Above Market’

    Investors Buy 22nd Shares ‘Above Market’

    Image: Tobacco Reporter archive

    22nd Century Group has entered into definitive agreements with certain investors for the purchase and sale of 778,634 shares of common stock and warrants at a price of $3.80 per share in a registered direct offering priced above market.

    The company expects the offering to generate gross proceeds of $3 million before deducting the placement agent’s fees and other offering expenses payable by the company. 22nd Century intends to use the net proceeds from this offering for the continued commercial expansion of its VLN reduced-nicotine content tobacco cigarettes in additional markets, working capital related to its commercial activities and general corporate purposes.

    “We are encouraged by the confidence investors have demonstrated in our path forward through the participation in our latest offering of securities, which corresponds with the inflection point we are experiencing in critical aspects of the business,” said CEO James A. Mish in a statement. “In turn, we are pleased to have strengthened our capital position, deliver[ed] continued operational momentum and taken successful steps toward regaining compliance with Nasdaq listing standards.”

    The Special Equities Group, a division of Dawson James Securities, acted as the sole placement agent for this transaction.

    As part of the transaction, the company agreed to issue to the investors warrants to purchase up to 1,557,268 shares of common stock. The warrants have an exercise price of $3.80 per share and are exercisable six months from the date of issuance. The closing of the offering is expected to occur on or about July 10, 2023, subject to the satisfaction of customary closing conditions.

  • Istanbul Bans Public Shisha Smoking

    Istanbul Bans Public Shisha Smoking

    Image: puhhha | Adobe Stock

    Istanbul has banned shisha smoking in public places in order to mitigate risks of forest fires and other potential hazards, reports Xinhua News.

    “Smoking shisha will be strictly prohibited in various locations, including beaches, forests, recreational areas and parks throughout Istanbul,” wrote Governor Davut Gul on Twitter. “However, it is important to note that licensed shisha lounges operating outside of these designated areas are not affected by this ban.”

  • Activists Dispute Gateway Findings

    Activists Dispute Gateway Findings

    Photo: Wlodzimierz

    Recent claims by Otago University in New Zealand that vaping is a gateway to smoking have been disputed by leading global harm reduction experts Roberto Sussman, Konstantinos Farsalinos and Gerry Stimson. These experts have highlighted the importance of harm reduction strategies in reducing the negative health impacts of smoking.

    Published on June 28 in Drug and Alcohol Review, the Otago University study analyzed data related to New Zealanders’ smoking and vaping status from the 2018-2020 New Zealand Attitudes and Values survey.

    Unlike other studies, Post-graduate student Andre Mason and associate professor Damian Scarf found no consistent evidence that vaping acted as a cessation pathway from smoking. Mason said vaping appeared to be another smoking-related behavior, rather than a substitute for smoking that primarily helped people quit.

    “We found that there was an equal likelihood of vapers transitioning to smoking as smokers were to vapers,” Mason told Radio New Zealand.  

    Tobacco harm reduction advocates questioned the findings. According to Sussman, there is no evidence that vaping is a gateway to smoking. “In fact, studies have shown that vaping can be an effective tool for smoking cessation,” he said. “The vast majority of vapers are former smokers who have successfully quit smoking thanks to vaping,” added Farsalinos

    Gerry Stimson, a public health expert and advocate for harm reduction, emphasizes that harm reduction strategies like vaping are essential in reducing the negative health impacts of smoking. “We need to focus on providing smokers with safer alternatives to cigarettes, rather than demonizing harm reduction strategies like vaping,” he noted.

    Nancy Loucas, executive coordinator of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates, who compiled these comments, also disputed the gateway claim by Otago University.

    Lous cited recent data, which suggest the smoking incidence rates in New Zealand have fallen significantly over the past five to 10 years. The current smoking rate of New Zealand adults is 8 percent in 2021/2022, which has decreased from 16.5 percent in 2015 and from 27 percent in both men and women in 1993. Loucas insists that vaping has played a significant role in the reduction of smoking rates in New Zealand over the past five to 10 years. According to research published in the NZ Medical Journal, the current vaping rate in New Zealand is 8.3 percent of adults being categorized as daily e-cigarette users, up from 6.2 percent in the previous year.

    “We need to focus on harm reduction strategies that work, rather than relying on outdated and inaccurate claims about vaping being a gateway to smoking,” said Loucas. “The evidence is clear: vaping can be an effective tool for smoking cessation and harm reduction.

    The government of New Zealand has given NZD1.4 million ($860,411) to a large trial to help New Zealanders quit vaping. Over six months, more than 1,000 participants will test whether cytisine—a medicine that partially blocks the effects of nicotine on the brain—is more effective than a tapered reduction in nicotine, when accompanied with behavioral support.

  • Seoul Mulls Higher Fines for Cigarette Litter

    Seoul Mulls Higher Fines for Cigarette Litter

    Photo: sayan

    The Seoul metropolitan government is considering raising fines for cigarette butt litter from KRW50,000 ($38) to as much as KRW200,000, according to Korea JoonAng Daily.

    Currently, the city government fines KRW50,000 regardless of the number of littering violations. The proposed new fine would increase based on number of violations: KRW100,000 for a first violation, KRW150,000 for a second violation and KRW200,000 for a third violation. 

    Cigarette filters have been noted as one of the major causes of flooding in the area as the litter blocks the road drainage systems. The flood level doubles if two-thirds of the height of the drainage gets flooded, according to the National Disaster Management Research Institute. If the drainage is completely submerged, the flood level rises six-fold and flooding occurs three times more quickly.

    “Drainages at high-risk areas, including those that have been flooded during the monsoon season, should be prioritized in being taken care of,” said Lee Young-joo, professor of fire prevention science at the University of Seoul. “Measures to offer incentives to those who voluntarily clean up road drainages should also be drawn up.”

    Increased fines are also expected to help prevent fires due to smoking. Last year, 6,289 fires in the city were due to smoking, according to the Seoul Metropolitan Fire and Disaster Headquarters.

    The city government will propose the fine increase to the Environment Ministry.

  • Shisha Producer Calls Banks to Pitch for IPO

    Shisha Producer Calls Banks to Pitch for IPO

    Image: Дмитрий Скорина | Adobe Stock

    Advanced Inhalation Rituals (AIR), a Dubai-based producer of shisha molasses, has invited banks to pitch for roles in its planned initial public offering (IPO), which is expected next year, according to anonymous sources with knowledge of the matter, which is not public, reports Reuters.

    AIR has not decided on a listing venue yet, but Abu Dhabi and Dubai are among the options.

    Majority owner of AIR, Britain’s Kingsway Capital, is looking to follow a dual-track process where a seller pursues a sale and an IPO simultaneously. Rothschild and Co. is acting as financial advisor to AIR.

    Last month, Kingsway Capital started meetings with tobacco firms such as BAT and Japan Tobacco.