Category: Featured

  • Record Tobacco Income Boosts Vector’s Results

    Record Tobacco Income Boosts Vector’s Results

    Photo: Wirestock

    Vector Group reported consolidated revenues of $1.22 billion in 2021, down 1 percent from the previous year. Reported net income of $219.5 million was up $126.5 million over 2020. Adjusted net income from continuing operations was $174.8 million, up $44.9 million compared to the prior year period. Reported operating income increased $26 million to $320.4 million while tobacco segment operating income was $360.3 million, up 13 percent over 2020.

    For the fourth quarter of 2021, Vector Group reported consolidated revenues of $313.7 million, up 9 percent compared to the prior year period. Reported net income was $45.3 million, up $13.1 million. Adjusted net income from continuing operations totaled $41.4 million, $19.3 million higher than in 2020. Reported operating income of $68.6 million was down $5.5 million compared to the prior year.

    “Vector Group had another outstanding quarter, achieving all-time high annual tobacco segment operating income,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “We are excited by the continued strong performance of our tobacco business, which validates our market strategy and reflects the competitive advantages we have in the highly attractive deep discount segment. With the spin-off of Douglas Elliman complete, we are laser focused on continuing to capitalize on opportunities in the growing deep discount segment while leveraging our value-focused brand portfolio and broad national distribution to meet evolving market demands.”

  • Tobacco Technology Appoints New President

    Tobacco Technology Appoints New President

    Photo: Jacub Jirsak

    Tobacco Technology has appointed David Johnson as president and chief scientific officer of the company and its wholly owned subsidiaries, E-LiquiTech and Emerald Green Technology. He will be replacing Richard Howell, who retired earlier this month after 43 years of service.

    Johnson joined Tobacco Technology as the director of regulatory affairs in 2021. He brings more than 30 years of scientific, regulatory and management experience, including over 20 years in the tobacco industry, to the Tobacco Technology family of companies.

    He received his Ph.D. in chemistry from the University of Mississippi, specializing in physical analytical chemistry. In addition, he completed postdoctoral training at the University of North Carolina in Chapel Hill in the mass spectrometry group of Maurice Bursey.

    Johnson acquired much of his tobacco experience at Swedish Match North America, where he was the director of analytical, and at Turning Point Brands, where he was the senior director of scientific and regulatory affairs. Johnson also has a wealth of sales, marketing and Six Sigma experience from his years working with DuPont.

  • 22nd Century Reports Results

    22nd Century Reports Results

    Photo: MIND AND I

    22nd Century Group reported net sales of $30.9 million for 2021, up 10.1 percent from 2020. The increase was due to an increase in contract manufacturing sales. Gross profit for 2021 was $2.1 million compared to $1.4 million in the prior year. Gross margin in 2021 increased to 6.7 percent from 5.1 percent in the prior year.

    Net sales for the fourth quarter of 2021 were $8 million, an increase of 8.9 percent over the prior year period. The increase was due to an increase in contract manufacturing sales. Gross profit for the fourth quarter of 2021 was $387,000 compared to $588,000 in the prior year period due to the favorable effect of a large customer order that benefitted the previous year’s fourth quarter.

    “The past several months were incredible as 22nd Century transforms from a pure science and contract manufacturing company into a company selling branded VLN cigarettes, licensing valuable biotechnology IP and supplying highly specialized plant lines in large and dynamic global end markets,” said James A. Mish, CEO of 22nd Century Group, in a statement.

    “We secured our highly anticipated FDA MRTP [modified-risk tobacco product] designation on Dec. 23, and immediately moved to launch our VLN pilot program by the end of March. The first VLN cigarettes packaged with the FDA’s added claim of ‘Helps You Smoke Less’ rolled off our manufacturing lines in late January.

    “Additionally, we have finalized our point-of-sale materials to educate adult smokers about how to use VLN to change their relationship with highly addictive nicotine cigarettes, and we have worked alongside Circle K to prepare for our first launch in more than 150 metro Chicago stores before rolling VLN out nationwide. Our mission is to get this product as quickly as possible into the hands of adult smokers, 70 percent of whom want to quit and are looking for new and innovative products to help them smoke less.”

    On Feb. 28, 22nd Century announced its VLN cigarettes would make their international debut in South Korea.

  • FDA Submits Menthol Ban for Review

    FDA Submits Menthol Ban for Review

    Photo: chocolatefather

    The U.S. Food and Drug Administration is a step closer to a complete ban on menthol-flavored cigarettes and cigars.

    The ban is not expected to impact vaping products, although many experts predict a menthol combustible ban could possibly transition some menthol smokers to e-cigarettes. It is predicted to be similar to what happened in the U.K. when it banned menthol cigarettes in 2020.

    Thursday, the agency submitted its proposal to the White House’s Office of Management and Budget (OMB), according to news reports.

    In 2020, the regulatory agency enacted a “flavor ban” on e-cigarettes because they targeted middle and high school students. Now, public health officials argue banning menthol, the last allowable nontobacco flavor in cigarettes, will save lives.

    In its proposal, the FDA provides evidence that menthol tobacco products are heavily marketed to racial minorities. The U.S. Centers for Disease Control and Prevention reports more than 85 percent of menthol smokers are Black, taking a disproportionate toll on their health.

  • 22nd Century to Launch VLN in South Korea

    22nd Century to Launch VLN in South Korea

    Photo: 22nd Century Group

    South Korea will be the first international market to commence sales of 22nd Century’s VLN reduced nicotine content cigarettes, the company announced in a press release.

    “South Korea is an ideal international launch market in many ways, with a high smoking rate among developed countries and a government strongly committed to smoking harm reduction. We expect the first sale of VLN reduced nicotine content cigarettes to our South Korean partner to occur by the end of March,” said 22nd Centur4y’s CEO, James A. Mish.

    “Approximately one in three adult men in South Korea are smokers, and an estimated 6 percent of adult women smoke. The government has worked over the past two decades to promote smoking cessation through a variety of means, including heightened tobacco prices, and remains committed to advancing alternative products to help curb smoking activity in the country. We are excited to make VLN reduced nicotine content products available in South Korea to help break the nicotine addiction cycle and support this important effort.”

    The company will continue its launch process in additional markets in Asia and Europe with limited regulatory barriers while also leveraging VLN’s modified-risk tobacco product (MRTP) authorization in the United States toward seeking approval in additional markets with higher regulatory barriers.

    In addition to its first international launch of VLN reduced nicotine content cigarettes in the more than $800 billion global tobacco market, 22nd Century Group is actively moving forward to launch VLN in the $80 billion U.S. market.

    The U.S. FDA authorized 22nd Century’s VLN reduced nicotine content cigarette products on Dec. 23, 2021. The company is currently executing its 90-day post-authorization plan to launch in its first U.S. pilot market.

  • Duterte Urged to Sign Vaping Bill

    Duterte Urged to Sign Vaping Bill

    Photo: Gajus

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) has written to Philippine President Rodrigo Duterte asking him to urgently sign the Vaporized Nicotine Products Regulation Act into law.

    Both the Philippine Senate and House of Representatives have ratified the harmonized version of the act, which will regulate the use, manufacture, importation, sale, distribution and promotion of vaping and heated-tobacco products. It now awaits the president’s signature or veto.

    “The weight of the scientific evidence shows that potentially thousands of Filipino lives can be saved by making this act the law of the land,” wrote CAPHRA, backed by its expert advisory group and member organizations throughout the Asia-Pacific region.

    CAPHRA told Duterte that, when enacted, the legislation will provide 16 million Filipino smokers with the world’s most effective smoking cessation tool, saving the lives and enhancing the health of millions of Filipino smokers and their families, friends and co-workers.

    “Hundreds of peer-reviewed international scientific studies have found innovative smoke-free products such as e-cigarettes and heated-tobacco products to be far less harmful than combustible tobacco and offer the best options to make smokers switch or quit,” wrote Nancy Loucas, executive coordinator of CAPHRA. “The act will ensure the regulation of these products so that they meet government standards to protect consumers and will contribute revenue via taxation.”

    The letter said signing the act into law and giving Filipino smokers the option of choosing less harmful alternative nicotine products will create an enduring presidential legacy. It will prove to the world that Duterte is a leader who put the health and well-being of his people, based on science, above the special interests of foreigners.

  • Broughton Establishes U.S. Subsidiary

    Broughton Establishes U.S. Subsidiary

    Tony Jones (Photo: Broughton)

    Broughton is establishing a U.S. subsidiary to enhance its presence in the region. Leading the U.S. team will be Tony Jones, who joins Broughton as managing consultant. Jones has extensive experience in toxicology and risk assessment.

    “I am delighted to be spearheading this exciting next stage of the development of Broughton in the U.S. market,” said Jones. “I’m looking forward to introducing the full lifecycle development services offered by the Broughton team to U.S. clients across pharmaceuticals, nicotine and cannabinoids to help the company support their clients to accelerate innovation to market and improve health outcomes.” 

    Along with the appointment of Jones, Broughton has strengthened its consultancy team with several new members.

    Libby Clarke and Carol Beevers have joined the company’s toxicology team. Clarke is a European registered toxicologist and has substantial experience devising toxicology testing strategies and compiling submissions to regulatory bodies, such as the U.S. Food and Drug Administration and Health Canada. Beevers is a genetic toxicology specialist and has contributed to more than 20 papers in peer-reviewed journals. She is a member of the U.K. Committee on Mutagenicity and several international working groups on genotoxicity testing.

    In recognition of the growing importance of behavioral science in regulatory submissions, Broughton has also strengthened its in-house team with the appointment of Oliver Knight-West. Knight-West has conducted multiple behavioral and clinical studies into next-generation nicotine products and pharmaceuticals for dossier submission to the FDA, the U.K. Medicines and Healthcare products Regulatory Agency, and the European Medicines Agency.

    He has published many scientific papers in several highly cited publications.

    To complement the appointment of Paul Hardman in 2021, Malcolm Saxton has joined the chemistry consultancy team. Saxton will help ensure that Broughton remains at the forefront of the industry in terms of novel method development aligned with evolving market and regulatory needs.

    “Since 2006, our focus has always been to help our clients succeed,” said Broughton CEO Chris Allen. “With a passion for enhancing societal health and well-being, the establishment of a North American subsidiary is a natural next step to enable us to better partner with our customers in the region.”

  • Canada Approves Medicago’s Vaccine

    Canada Approves Medicago’s Vaccine

    Photo: M.Rode-Foto

    Health Canada has approved Covifenz, a tobacco plant-based coronavirus vaccination developed by GlaxoSmithKline and Medicago, a biopharmaceutical company backed by Philip Morris International.

    “The approval of our Covid-19 vaccine is a significant milestone for Canada in the fight against the pandemic. We appreciate Health Canada’s timely review,” said Takashi Nagao, president and CEO of Medicago, in a statement. “We’re also grateful for the government of Canada’s support in the development of this new vaccine, and we are manufacturing doses to start fulfilling its order.”

    “This first approval is an important milestone in our approach of pairing GSK’s well-established pandemic adjuvant with promising antigens to develop protein-based, refrigerator-stable Covid-19 vaccines to help protect people against Covid-19 disease,” said Roger Connor, president of GSK Vaccines. “We look forward to working with Medicago to make the vaccine available in Canada and to progress further regulatory submissions.”

    The government of Canada has a contract with Medicago to supply the Covid-19 vaccine.

    “As one of our government’s top priorities has been to reverse the 40-year decline faced by Canada’s biomanufacturing sector, we are pleased to see Medicago’s vaccine approval. It is a great milestone for Canada’s biotechnology sector and for homegrown innovation. We will continue to support companies that want to produce vaccines in Canada and join the growing national biomanufacturing sector,” said François-Philippe Champagne, minister of innovation, science and industry.

    Health Canada based its decision on scientific data shared by Medicago as part of its rolling submission that began in April 2021 under an Interim Order and concluded with the filing of a New Drug Submission-CV.

    “Today is a great day for Medicago as Covifenz becomes its first approved vaccine,” said Yosuke Kimura, chief scientific officer at Medicago. “I’d like to thank the clinical investigators involved in our trials as well as Medicago’s passionate and curious team of over 500 scientific experts and employees. Today only reinforces our commitment to using our technology to provide rapid responses to emerging global health challenges and to advancing therapeutics against life-threatening diseases worldwide.”

    Covifenz uses coronavirus-like particle technology with the vaccine composed of recombinant spike (S) glycoprotein expressed as virus-like particles co-administered with GSK’s pandemic adjuvant. The vaccination regimen calls for two doses given intramuscularly 21 days apart (3.75 micrograms of coronavirus-like particle antigen in combination with GSK pandemic adjuvant in the same injection). The vaccine is stored at 2 degrees Celsius to 8 degrees Celsius. The Covifenz antigen will be manufactured in Canada and in North Carolina, USA.

  • South Africa Proposes New Vaping Tax

    South Africa Proposes New Vaping Tax

    Photo: Adrian | Adobe Stock

    The South African government will propose a new tax on vaping products to take effect in 2023, according to Vaping360.

    The move follows the government’s announcement last year that it intended to tax e-liquids.

    South African Finance Minister Enoch Godongwana outlined the new tax proposal as part of a package of new and increased excise taxes on tobacco, alcohol and high-sugar products. The vaping tax will appear in the 2022 Taxation Laws Amendment Bill, though it could be changed by Parliament before the bill is finalized. It is expected to be in place by Jan. 1, 2023, according to Godongwana.

    The new tax would apply to all e-liquid products, regardless of whether they include nicotine, and it would be “at least” ZAR2.90 ($0.19) per mL, essentially doubling the price of retail e-liquid. The taxation rate is supposed to be equivalent to 40 percent of the most popular brand’s retail price.

    South Africa currently has no specific governance on vaping products but is working to regulate the products under its tobacco laws.

  • PMI Suspends Operations in Ukraine

    PMI Suspends Operations in Ukraine

    Philip Morris International is suspending operations in Ukraine, including its factory in Kharkiv, following the invasion of Russian forces into the country, according to The Wall Street Journal.

    “The safety and security of our colleagues and their families is our primary concern, and we have, therefore, temporarily suspended our operations in Ukraine,” said PMI CEO Jacek Olczak. “Our employees are advised to stay at home or in any safe place and follow instructions from local authorities.”

    PMI has more than 1,300 employees in Ukraine. The country accounted for about 2 percent of PMI’s total cigarette and heated-tobacco shipment volume in 2021.

    PMI has stated that it has contingency plans in place to restart operations once conditions are safe.