The U.S. Food and Drug Administration is reportedly set to announce a fast-track review program for nicotine pouches, aiming to finish evaluations by December. The process would usually take several years.
The process aims to resolve legal uncertainties for products currently on the market without full FDA authorization, streamline product launches, and provide clearer pathways for new product introductions. The fast-track program is expected to boost growth prospects in the tobacco industry.
The pilot initiative directly impacts major tobacco companies Philip Morris International (NYSE:PM) with its Zyn Ultra brand, Altria (NYSE:MO) with its on! and on! Plus brands, British American Tobacco (BTI) with its Velo mini brand, and Turning Point Brands (NYSE:TPB) with its Fre and Alp brands. For other products already on the market without permission, FDA authorization would remove questions over their legality and the threat of potential enforcement from the agency.
The FDA has not made an official announcement yet.
Shares of Philip Morris (NYSE:PM), Altria (NYSE:MO), and Turning Point Brands (NYSE:TPB) were up slightly in premarket action.