Author: Marissa Dean

  • Call for Proposals to Help Doctors With THR

    Call for Proposals to Help Doctors With THR

    Image: Tobacco Reporter archive

    The Foundation for a Smoke-Free World (FSFW) has issued a call for proposals to further analyze the findings of its Sermo survey on doctors and propose programs that would help improve doctors’ fluency about smoking cessation and tobacco harm reduction (THR), according to a press release.

    The FSFW funded research carried out in 2022 by Sermo, an independent platform and leader in actionable healthcare professional insights that surveyed more than 15,000 doctors online in 11 countries, including China, Germany, Greece, India, Indonesia, Israel, Italy, Japan, South Africa, the United Kingdom and the United States. A significant majority of the surveyed doctors mistakenly attributed the negative health effects of smoking to nicotine. 

    An average of 87 percent of doctors agreed, at least moderately, that helping patients quit smoking is a priority; however, 74 percent mistakenly believe nicotine causes a range of illnesses, including lung cancer and chronic obstructive pulmonary disease (COPD).

    The misperception about nicotine could account for an average of 55 percent of the doctors recommending over-the-counter nicotine-replacement therapies to help patients reduce or quit smoking.

    “It is imperative that doctors get the proper training to learn the facts about nicotine and tobacco harm reduction options that can help their smoking patients quit,” said Muhammad Ahmed, director of health and science research at the FSFW. “With more than 7 million smokers dying annually from smoking-related diseases worldwide, many lives can be saved if doctors become more knowledgeable about the cessation tools available.” 

    “Patients look to doctors for trusted health advice,” said Jed Rose, president and CEO of Rose Research Center and co-inventor of the nicotine patch. “Therefore, it is vital that doctors provide accurate, current advice to smokers about the health risks of smoking cigarettes compared to using products that deliver nicotine without combustion.”

    The survey on doctors showed that 74 percent of doctors on average at least moderately agree that nicotine causes lung, bladder and head/neck/gastric cancer; in the United States, this figure is 70 percent; in Germany, this figure is 78 percent; in China, this figure is 86 percent; in Japan, this figure is 85 percent; 78 percent of doctors on average at least moderately agree that atherosclerosis is caused by nicotine; and 76 percent of doctors on average at least moderately agree that COPD is caused by nicotine.

    On average, 81 percent of the physicians surveyed are at least moderately interested in training focused on smoking cessation and tobacco harm reduction.

    The survey also found that while doctors’ conversations with patients who smoke focus on the health benefits of cutting down or quitting (73 percent on average globally) and the health risks of continuing (73 percent on average globally), a comparatively small number of physicians—just over half (56 percent on average globally) on average—recommend cutting down on the amount of smokable tobacco products, and less than half of doctors (48 percent on average globally) help patients develop a plan to quit.

    Researchers interested in submitting a proposal to further analyze these findings should contact support@smokefreeworld.org.

  • Less Smoking Affects Childhood Services

    Less Smoking Affects Childhood Services

    Image: Seventyfour

    The decline in California smoking rates is affecting the state’s early childhood services, reports the San Francisco Chronicle.

    First 5 California, the state’s early childhood services, are mostly funded by cigarette and other tobacco product taxes. In 1998, voters passed Proposition 10, which levied a tobacco tax and dedicated the money to programs that would help families with young children. It was not meant to be a permanent solution for funding, however. First 5 programs around the state are trimming budgets and cutting back programs now that the funding is decreasing.

    Last year, Californians passed Proposition 31, which banned the sale of flavored tobacco products.

    “We all expect revenues to go down, the question is what will be the magnitude,” said Michael Ong, chair of the state’s Tobacco Education and Research Oversight Committee.

    First 5 cuts differ among counties—some counties rely more heavily on tobacco tax funds than others, and each county has made cuts in ways they see fit, for example, cutting programs supporting foster children and dental health and support for family shelters.

    The group funds a broad number of programs in partnership with nonprofits, local hospitals, clinics and county health and education offices. Some of the programs they fund include children’s mobile immunization clinics, dental services, developmental screenings, family case management, parenting classes and home visits from a nurse for first-time mothers. Programs vary by county.

    First 5 expects to receive about 30 percent less funding from tobacco taxes by 2026 compared to 2021. Projections for this year’s budget had First 5 receiving about $348 million from tobacco taxes. After the flavor ban was passed, the new budget had the organization receiving about $310 million, and by 2026, projections show a decrease to $280 million.

    From 1999 to 2000, the organization received $690 million from tobacco taxes.

    Statewide, tobacco taxes account for 73 percent of First 5’s annual budget, but this varies by county—First 5 distributes funds based on an equation that takes into account birth rate.

    Ong stated that ideally, the group would source funding from elsewhere. “But that’s a pretty tall order for county governments,” he said. 

  • PMI Revenues Up by One-Fifth

    PMI Revenues Up by One-Fifth

    Image: Tobacco Reporter archive

    Philip Morris International announced its 2023 second-quarter results.

    Reported net revenues were up by 19 percent, excluding currency. Pro forma (including Swedish Match in all periods) adjusted net revenue growth was 11.1 percent, excluding currency. Combustible tobacco net revenue growth was 6 percent; growth was 7.4 percent on an organic basis driven by pricing of over 9 percent.

    Market share for heated-tobacco units (HTUs) in IQOS markets were up by 1.6 points to 9.2 percent. Adjusted in-market sales volume for HTUs, which excludes the net favorable impact of estimated distributor and wholesaler inventory movements, was up by an estimated 16 percent.

    Total IQOS users at quarter end were estimated at approximately 27.2 million (up by 1.4 million versus March 2023), of which approximately 19.4 million had switched to IQOS and stopped smoking.

    Zyn nicotine pouch shipment volume in the U.S. was 89.9 million cans, representing growth of 53.1 percent versus second-quarter 2022 Swedish Match shipments of 58.7 million cans.

    Declared regular quarterly dividend was $1.27 per share, or an annualized rate of $5.08 per share.

    “Our strong business momentum continued with an excellent second quarter,” said CEO Jacek Olczak in a statement. “Total cigarette and HTU shipment volume grew by 3.3 percent, underpinning double-digit growth in net revenues and currency-neutral adjusted diluted EPS.

    “The outstanding performance of Swedish Match—fueled by the growth of Zyn in the U.S.—is accelerating our smoke-free transformation and is complementing IQOS in growing our smoke-free leadership whilst we also deliver resilient combustibles performance with enhanced pricing.

    “Our strong fundamentals give us further confidence as we enter the second half of the year, particularly as certain inflationary and operational pressures ease. We are therefore raising our full-year 2023 forecast for organic net revenue growth to a range of 7.5 percent to 8.5 percent and currency-neutral adjusted diluted EPS growth to a range of 8 percent to 9.5 percent.

    “As we look to the longer term, we are complementing our smoke-free transformation with the further development of our wellness and healthcare business. While we have experienced some initial headwinds, we remain committed to wellness and healthcare, with a focused strategy on several attractive growth opportunities.”

  • France Struggles with Illicit Market

    France Struggles with Illicit Market

    Image: Europol

    France has one of the largest illicit cigarette trade markets among European Union member states, according to Euractiv.

    “The increase in EU illicit consumption was predominantly due to France (plus-1.8 billion cigarettes), which now accounts for almost half (47 percent) of EU27 illicit consumption,” according to a KPMG study funded by Philip Morris International.

    In 2021, illicit trade in France was 29 percent of total consumption, and in 2022, it increased to 32 percent of total consumption.

    Some attribute the large illicit market to high taxes. France’s excise tax on cigarettes is almost double that of the EU average.

    Ireland, which has the highest tax rate on tobacco, currently ranks second in illicit trade in the EU, supporting this idea. However, Greece has a lower than average tax rate and was the third-worst EU country in illicit trade in 2022.

    French Deputy Minister for Public Accounts Gabriel Attal said that tobacco trafficking sets new records annually. “Faced with the explosion of these trafficking activities, we cannot let France be overwhelmed by illicit tobacco,” he said. “Trafficking is not only accelerating but also undergoing profound changes.”

    “One euro for a tobacco trafficker is one euro for mafia networks and criminal organizations,” Attal said. In 2021, he noted, four illicit tobacco production factories were dismantled in France.

    “In response to your request, we would first like to inform you that French Customs does not comment on estimates made on behalf of the tobacco industry,” French Customs told Euractiv.

    Customs said that “work will be undertaken to improve the level of understanding, analysis and estimation of the parallel market in tobacco products.”

    “For the record, in 2022, the French Customs services seized nearly 650 tons of tobacco, including more than 473 tons of cigarettes, in the course of nearly 17,000 offenses. The value of goods seized on national territory, all products combined, amounted to more than €213 million ($238.24 million) for the same year,” customs said.

  • Fuson Joins Kleinfeld, Kaplan & Becker

    Fuson Joins Kleinfeld, Kaplan & Becker

    Photo: RerF

    John Fuson has joined Kleinfeld Kaplan & Becker (KKB) as a partner. Fuson advises clients on a variety of issues relating to U.S. Food and Drug Administration regulation of the tobacco industry and other sectors.

    During his career, Fuson has served as associate chief counsel for enforcement at the FDA, where he represented the agency in major enforcement actions, including in seizure, injunction and other cases relating to violations of the Federal Food, Drug and Cosmetic Act and related laws.

    For the past 11 years, he has maintained a private practice focused on counseling clients on the FDA’s requirements for product approval, safety, manufacturing and labeling. He has dealt with complex enforcement actions and advised senior management on market entry strategies, labeling and promotional activities, regulatory compliance, facility inspections, recalls and the preparation of FDA submissions.

    “John is an outstanding food and drug lawyer,” said Dan Dwyer, KKB’s managing partner, in a statement. “Our firm has one of the most comprehensive FDA regulatory and advertising practices in the country, and John’s strong understanding of FDA’s enforcement practices and his comprehensive experience in the field make him a perfect fit for our firm.”

    Fuson joins KKB from Crowell & Moring. He earned his Juris Doctor degree from the University of Pennsylvania and is a member of the bars of the District of Columbia and California.

  • KT&G Supports Flood Victims

    KT&G Supports Flood Victims

    Photo: Mdv Edwards

    KT&G pledged an emergency donation of KRW500 million ($394,252) in support of the prompt restoration of regions impacted by the intensified rainfall as well as relief for all affected individuals.

    The donation will be directed to the Hope Bridge Korea Disaster Relief Association, and the funds will be utilized for the rehabilitation of damaged infrastructure in the affected areas as well as to support livelihoods and provide relief supplies to those affected by the disaster.

    The contribution is derived from the Sangsang Fund, a charitable fund established by voluntary contributions from KT&G executives and employees. The Sangsang Fund is a unique social contribution fund that combines monthly contributions collected from executive and employee salaries with company contributions equal in amount.

    Additionally, Korea Ginseng Corporation plans to deliver CheongKwanJang red ginseng products worth KRW100 million to residents in the areas severely affected by the intensified rainfall.

    “With the intention of assisting those regions who are facing hardship due to the devastating floods, we have gathered the heartfelt intentions of our employees and executives, which has led to the decision to provide urgent assistance,” said Shim Young-ah, head of KT&G’s social contribution division, in a statement. “We sincerely hope that this donation will contribute, even in a small way, to the rapid recovery and restoration of the affected communities and their daily lives.”

  • Philip Morris to Acquire Syqe Medical

    Philip Morris to Acquire Syqe Medical

    Image: Tobacco Reporter archive

    Philip Morris International plans to acquire Syqe Medical, an Israeli company, according to Calcalist. The deal could reach $650 million.

    Syqe’s main product is a metered-dose inhaler for pain reduction using medical marijuana.

    PMI will initially invest $120 million to aid in the process of obtaining U.S. Food and Drug Administration approval for Syqe’s inhaler. If approval is received, PMI will purchase all shares of Syqe for $650 million.

    PMI subsidiary Vectura will conduct the transaction.

    In 2016, PMI invested $20 million in Syqe.

  • Brazilian Minister Voices Supports for Tobacco Farming

    Brazilian Minister Voices Supports for Tobacco Farming

    Image: SindiTabaco

    Brazil’s minister of agrarian development, Paulo Teixeira, has spoken out against initiatives to replace tobacco as a cash crop.

    During a meeting with representatives of the domestic tobacco industry, Teixeira said farmers must be assured the right to grow tobacco, especially in light of the crop’s economic contribution.

    Industry representatives had requested the meeting to discuss the sector’s concerns about the 10th Conference of the Parties (COP10) organized by the Framework Convention on Tobacco Control. They stressed the economic and social importance of the production and export of tobacco for Brazil and addressed the concern about the Brazilian stance at the meeting in Panama, particularly with regard to a possible interference with the cultivation of tobacco.

    In addition to Iro Schunke of the Interstate Tobacco Industry Union (SindiTabaco), the group comprised Benicio Albano Werner, president of the Tobacco Growers’ Association of Brazil (Afubra); Giuseppe Lobo, the executive director of the Brazilian Tobacco Industry Association (Abifumo); and Marcos Souza the executive director of the Bahia State Tobacco Industry Union (Sinditabaco-BA).

    While expressing support for the industry, Teixeira recommended that the industry use bioinputs to produce tobacco. “The companies have invested in biological pest control methods and have always sought the best solutions when it comes to farmers’ health and safety,” said Schunke in a statement.

    “We have a good grasp of the health issues that involve our product, but while there is demand, we need to preserve the jobs and the income generated by the supply chain.”

    Earlier in July, tobacco industry representatives met with Brazil’s minister of agriculture, Carlos Favaro, to share their concerns ahead of COP10.

  • Jean Gonnell Joins Troutman Pepper

    Jean Gonnell Joins Troutman Pepper

    Jean Gonnell, Partner, Troutman Pepper | Credit: Troutman Pepper

    Jean Gonnell, a regulatory attorney with a significant focus cannabis and tobacco law, has joined Troutman Pepper’s Regulatory Investigations, Strategy and Enforcement (RISE) practice group. Resident in the firm’s Charlotte office, Gonnell joins from her private practice, Gonnell Law.

    Gonnell began her legal career in Colorado, where she was at the forefront of cannabis legislation before the larger movement to legalize the drug. Over the course of her career, she has represented more than 100 clients in the cannabis industry, including approximately 15 percent of all licensed cannabis businesses in Colorado. With a deep commitment to her clients and dedication to the flourishing cannabis field, she continues to expand her practice and make a positive impact in the evolving landscape of cannabis law.

    “Jean’s addition to the firm will deepen the expertise of the firm’s established tobacco and nicotine and cannabis law practices,” said John West, chair of the business litigation department, in a statement. “Her extensive experience will enhance the innovative solutions we provide for our existing cannabis-focused clients as well as expand the services we can offer to potential new clients in the space.”

    “With the possibility of North Carolina passing a new medical marijuana regulatory regime, the timing of Jean joining our Charlotte office could not be better,” said Jason Evans, managing partner of the Charlotte office. “We welcome her and are confident that her guidance will help to expand our reach in providing service to clients.” Gonnell is the second partner to join the Charlotte office in recent months, following the arrival of white-collar partner Matt Orso in May.

    Gonnell is licensed to practice in Arizona, Colorado and North Carolina.

    “I’m thrilled to join Troutman Pepper due to its strong regulatory presence,” said Gonnell. “I chose the firm because it allows me to maintain top client service while also giving me the network to expand my practice to new fronts. I’m excited to continue working with my clients in Colorado while also expanding my client base here in North Carolina.”

  • Jordan: Health Activists Demand Stricter Rules

    Jordan: Health Activists Demand Stricter Rules

    Image: svarshik

    Health activists in Jordan are calling for stricter tobacco rules, given the country’s high rates of smoking-related diseases, according to The Jordan Times.

    Smoking-related deaths in Jordan are estimated to be around 8,000 annually with high rates of cancer and hundreds of cases of chronic disease.

    The smoking rate in Jordan is around 41 percent, according to recent studies. Jordanian households spend more on tobacco products than on food items, according to a World Health Organization study.

    Smoking is defined by the WHO as a pandemic, according to Bassam Hijjawi, head of the Jordanian National Association for Smoking Control, who called for “stricter penalties” and more measures to reduce smoking.

    Smoking cessation is low in the country despite the availability of 29 free specialized clinics for smoking cessation.

    “Healthcare costs associated with smoking-related diseases impose a heavy burden on the healthcare system and contribute to limiting resources available for other health services as well as other important sectors such as education,” said economist Khaled Salameh.

    “The statistics revealing the number of smoking-related deaths and the prevalence of chronic illnesses are alarming,” said Abdel Rahman Shaher, former health director at the Ministry of Health.

    “Stricter regulations on tobacco sales, especially on e-cigarettes for underage individuals, is crucial,” Shaher said, noting that a multi-faceted approach to limit smoking must be prioritized.

    “Social norms and cultural practices play a significant role in shaping individuals’ behavior, and smoking may be perceived as a socially acceptable or even desirable activity in certain contexts,” said sociologist Hussein Khuzai.

    “To address this issue, comprehensive strategies should be implemented, including awareness campaigns, education about the health risks and addressing the underlying social and economic determinants that drive smoking behavior,” Khuzai said.