Author: Staff Writer

  • “E-cig no more risky than smokeless”

    A study funded by The Consumer Advocates for Smokefree Alternatives suggests that e-cigarettes are no more risky than other smoke-free tobacco and nicotine products.

    After reviewing more than 9,000 “observations” about the chemistry of e-cigarette vapor and e-liquids, Igor Burstyn of the Drexel University School of Public Health found “no evidence that vaping produces inhalable exposures to contaminants of the aerosol that would warrant health concerns by the standards that are used to ensure safety of workplaces.” Exposure for bystanders, he said, is likely to be orders of magnitude less, and thus poses no apparent concern.

    The study cautioned that e-cigarette users are inhaling substantial quantities of propylene glycol and glycerin, the main chemicals in e-cigarette liquid. The chemicals are not considered dangerous, and the levels are below occupational exposure limits, but Burstyn suggested ongoing monitoring to confirm that there is no risk.

    CASAA Scientific Director Carl Phillips said the study “assures us that e-cigarettes are as low risk as other smoke-free tobacco and nicotine products, like smokeless tobacco and NRT.”

    The study is here.

  • Wales might go for independent position on standardized tobacco packs

    Wales Health Minister Mark Drakeford is looking into whether Wales could go it alone on public health issues such as standardized tobacco packaging and minimum alcohol pricing, according to a story on WalesOnline.

    Drakeford, a professor, said he had instructed officials to look at the powers Wales had in relation to these two measures after the U.K. government recently backed away from them.

    Meanwhile, Dr. Richard Lewis, Welsh secretary of the British Medical Association, was quoted as saying that the Scottish government had signaled its intention to legislate for standardized packaging. “Perhaps the Welsh government could follow their lead,” he said.

    But both Drakeford and Lewis would like the U.K. government reconsider its position.

    “I was very disappointed that, on a U.K. level, plans which we thought were coming along have not been included in the U.K. government’s program,” Drakeford said.

    “I still think that moving together is the best way to deal with some of these big public health issues. But I have asked my officials and the chief medical officer to give me advice on what our powers are and if it is possible for us to move ahead with that.

    “I do not align myself with the anxieties of those who accuse governments of being a nanny state. There are larger public interest issues at stake.”

  • Lawmakers given taste of own medicine

    Older members of the U.S. Congress and those who smoke could be facing much higher health insurance premiums under a new official interpretation of President Barack Obama’s health-care law, according to a story by Robert Pear for The New York Times.

    The administration said yesterday that the government would continue contributing to the cost of health benefits for lawmakers and thousands of congressional employees, but that they would have to buy coverage as individuals through new state-based markets known as insurance exchanges.

    Federal workers, including lawmakers, now generally get coverage through the Federal Employees Health Benefits Program, the nation’s largest employer-sponsored health insurance program. Under some of the most popular health plans, the government contributes $5,000 a year for individual coverage and $11,000 for family coverage.

    But the 2010 health-care law generally required members of Congress and employees in their “official offices” to get coverage through the exchanges. The purpose of this change was to make sure lawmakers understood the benefits and burdens of the law, as experienced by many of their constituents.

    In the federal employee program, people in the same health plan generally pay the same premiums, regardless of their age or place of residence.

    However, for health plans sold on the exchanges, premiums can vary, based on a person’s age, tobacco use and place of residence.

  • BAT has drop on nicotine product rivals

    Having recently launched its Vype electronic cigarette in the U.K., BAT Industries is poised to seize the lead in next-generation nicotine products, according to a Proactiveinvestors story quoting U.S. broker Citigroup.

    Citigroup expects Vype to do well in the existing, unregulated electronic cigarette market, but it is with the next range of products that it sees BAT putting some distance between itself and its rivals.

    The broker expects BAT to launch two new products with medical licenses during the next two years, and it thinks these licenses will be key since unlicensed products are likely to be banned from 2016.

  • Call for total ban on tobacco in SA

    South Africa’s health minister, Aaron Motsoaledi, has said that the government will not let up on its attempt to eliminate smoking in South Africa, according to a story in The Post.

    Tobacco, he added, made no positive contribution to humanity. All it did was death, he added.

    Motsoaledi was speaking in Pretoria at the release of the SA National Health and Nutrition Examination Survey by the Human Sciences Research Council (HSRC).

    According to the survey, also known as SANHANES-1, tobacco control policy had succeeded in halving the number of adult smokers during the past 20 years.

    But while there had been a marked reduction in the prevalence of smoking in the country, the report cited exposure to environmental tobacco smoke as a major cause for concern.

    The Post said that in its recommendations, SANHANES-1 called for the “expeditious implementation of legislation proposing a total ban on tobacco.”

  • Liquid nicotine from Universal subsidiary

    Universal Corp. is branching out into liquid nicotine for electronic cigarettes.

    The company said yesterday that its subsidiary, Virginia Tobacco Co. Inc. had joined Avoca Inc., one of the world’s premier botanical extraction companies, in the formation of AmeriNic Inc.

    It said the new business would produce high-quality, U.S. pharmacopeia (USP) grade liquid nicotine in the U.S. using fully traceable and compliant tobaccos.

    AmeriNic expects to begin production of liquid nicotine before the end of the calendar year.

    “We continually evaluate opportunities to meet the evolving needs of our customers and our industry,” said George C. Freeman III, chairman, president and CEO of Universal.

    “The electronic cigarette industry is developing rapidly, and as a leader in leaf tobacco sourcing and agronomic research, we are pleased to bring our expertise to this dynamic market.

    “We believe that the best source of liquid nicotine is tobacco and that AmeriNic Inc. has the capability needed to build a supply chain to provide the highest-quality product at a competitive price.”

  • Leaf tobacco shipments expected to be down in fiscal 2014: Universal

    Universal Corp.’s net income for the first quarter of fiscal year 2014, which ended on June 30, at $58.3 million ($2.05 per diluted share), was up from $23.1 million ($0.81 per diluted share) during the three months to the end of June 2012.

    Net income included a gain of $81.6 million before tax ($53.1 million after tax, or $1.98 per diluted share) resulting from a favorable outcome of litigation by the company’s operating subsidiary in Brazil related to previous years’ excise tax credits.

    Excluding that nonrecurring gain, first quarter net income decreased by $17.9 million.

    In announcing the results, George C. Freeman III, chairman, president and CEO, said that, as expected, carryover shipments of tobacco were considerably lower in the first quarter of this fiscal year as shipments of the smaller crops grown in fiscal year 2013 were substantially completed by March 31, 2013.

    And Freeman said that Universal was expecting a reduction in the overall volumes shipped during fiscal year 2014 compared to those of fiscal year 2013.

    “We are also watching crop development as the seasons unfold, particularly in the United States, where crop sizes have been negatively impacted by recent high levels of rainfall,” he said.

    “Burley crop levels are down from earlier projections in some origins, exacerbating the undersupply conditions expected for that type of tobacco this year.

    “In addition, global demand is strong, and we are seeing volatile green tobacco prices in Brazil that have disrupted markets and pressured margins there.

    “Changes in shipment timing, crop sizes and market pricing are not unusual in our business, and we still expect fiscal year 2014 to be a solid year,” he added.

  • Universal board declares dividends

    Universal Corp.’s board of directors has declared a quarterly dividend of $0.50 per common share payable on Nov. 12 to shareholders of record at the close of business on Oct. 15.

    In addition, the board has declared a quarterly dividend of $16.875 per share on its Series B 6.75% Convertible Perpetual Preferred Stock (Series B Preferred Stock) payable on Sept. 16 to shareholders of record as of 5 p.m. Eastern Time on Sept. 1.

    Effective with the payment of Universal’s common stock dividend on Aug. 12, the company will adjust the conversion rate on its Series B Preferred Stock. The adjusted conversion rate on the Series B Preferred Stock will be 21.9014 common shares per $1,000 of liquidation preference of Series B Preferred Stock. The new rate will be equivalent to a conversion price of about $45.66 per common share.

  • Platform ticket to take on new meaning

    DSB, the Danish national rail provider, is to impose a tobacco smoking ban at all train stations from July next year, according to a story by Sigrid Neergaard for The Copenhagen Post.

    The ban will apply even on uncovered platforms and to DSB staff.

    There was no mention of how the ban was to be enforced and no information about what penalties would apply to those ignoring the ban.

  • New cigarette-like nicotine device is made of paper, has no battery

    Two Toronto doctors are looking for investors to put up about $3 million to take their nicotine inhaler from the prototype phase and put it into the hands of cigarette smokers unable to quit their habit, according to a story by Madhavi Acharya-Tom Yew for the Toronto Star. (The full story is at http://www.thestar.com/business/2013/08/03/toronto_doctors_seek_investors_for_nicotine_inhaler.html.)

    Arthur Slutsky and Noe Zamel, who specialize in pulmonary medicine, have developed Nico-Puff (www.nico-puff.ca), which is an inhaler that looks and feels like a cigarette but which, according to them, is much safer than even electronic cigarettes.

    Zamel is director of the Mount Sinai Hospital Pulmonary Function Laboratory and director of the Toronto Western Hospital Pulmonary Research Laboratory. Slutsky is a vice president of research at St. Michael’s hospital and professor of medicine, surgery and biomedical engineering at the University of Toronto.

    Nico-Puff has no battery and contains only powered nicotine and lactose, which is commonly used in inhalation drugs that treat asthma.

    There is no combustion and no smoke. The user inhales, but nothing that is exhaled impacts nearby individuals; so, in theory, Nico-Puff could be used by somebody sitting in the middle seat of an airplane.

    Because users inhale the nicotine, blood nicotine levels peak much faster than is the case with nicotine patches or chewing gum.

    Nico-Puff is disposable; it is made of paper with a plastic filter containing nicotine powder. It looks a lot like a cigarette.

    “We wanted to make it look like a cigarette,” Slutsky said. “There’s something about hanging out with friends and holding something and putting it up to your mouth. There’s a physical addiction and a social addiction.”

    Slutsky would ideally like to see people off cigarettes completely. “That clearly would be the best thing to do. The trouble is there’s many people out there who smoke who have tried multiple times to stop and just can’t. For them, a harm-reduction approach makes a lot of sense.”

    Later in the story, he pointed out that, by itself, nicotine focused attention and improved alertness, with few negative side effects. “It has some pretty good properties in relatively small doses,” he added. “It’s the dirty delivery system that makes cigarettes incredibly harmful.”

    Nico-Puff’s makers say that while they could launch the device in other parts of the world, current regulations would make it difficult to get it on the market in Canada. Because it contained nicotine, Nico-Puff would fall under the Food and Drugs Act in Canada, so its makers would be required to conduct extensive scientific and clinical studies to prove its safety. That could take another three or five years and be very expensive.

    That’s frustrating to Nico-Puff’s creators, but also to David Sweanor, adjunct professor of law at the University of Ottawa and an expert on tobacco and nicotine issues in public health.

    Sweanor, who is not an investor, has known the researchers for years, and is familiar with their careers and their device. These are very impressive people “at the top of their field,” Sweanor was quoted as saying. “This is the sort of product we need, coming from exactly the sort of people you’d like to see it come from. It’s not Big Tobacco saying, ‘We’ve come out with something, trust us.’”