Marlboro cigarettes, manufactured by Philip Morris International
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Tobacco stocks plummeted Monday on a report that the Biden government is considering limiting nicotine levels in cigarettes.
The report, which named people familiar with the matter, was published in the Wall Street Journal. The paper said the discussion came as government officials approach a deadline to say whether they plan to seek out menthol cigarettes or not.
The Biden administration is trying to determine whether to lower nicotine levels in conjunction with a menthol ban or as a separate policy, the people told the Journal.
Nicotine does not cause cancer, but it does make smoking addictive. The goal of lowering nicotine levels would be to make cigarettes less addictive, in the hope of persuading smokers to quit or switch to other products considered safer.
The Food and Drug Administration, which has regulatory oversight over tobacco, declined to comment on the report.
“Any action taken by the FDA must be based on science and evidence and consider the real consequences of such actions, including the growth of an illegal market and the impact on hundreds of thousands of jobs from farm to local stores around the world. land, ”Altria spokesman George Parman told CNBC in an email.
Altria shares closed more than 6% on the report. During the extended trading Monday, shares fell an additional 2%.
Shares of British American Tobacco closed 2% Monday, while shares of Philip Morris International closed the day by more than 1%. Both stocks had also fallen after the market closed.
Philip Morris International declined to comment on this matter. The tobacco company does not sell or trade cigarettes in the US, but its stock fell on the news anyway.
British American Tobacco did not immediately respond to a request for comment. The company owns Reynolds American, the maker of Camel cigarettes.
Read the full story from the Wall Street Journal here.