22nd Century Group Stock Rises On Proposed FDA Mandate On Nicotine Content: Retail's Extremely Bullish

Shares of 22nd Century Group Inc. ($XXII), a tobacco products-focused company, rose nearly 22% on Monday as a U.S. Food and Drug Administration proposal to mandate nicotine content in cigarettes gets underway, lifting retail sentiment.

In a press release, 22nd Century said it stands ready to support the proposed tobacco product standard to mandate reduced nicotine content in cigarettes that has reportedly cleared review by the U.S. Office of Management and Budget, adding the move is "very much in concert with 22nd Century’s VLN branded low nicotine cigarettes."

The proposal is part of a long-standing effort by the FDA to mandate a drastic reduction in the amount of nicotine in cigarettes.

“OMB clearance marks a major step in moving this policy forward, and we are excited to see further definitive action by the federal government toward making this scientifically backed, non-partisan smoking harm reduction policy a reality,” Larry Firestone, CEO of 22nd Century Group, said. “The FDA has openly stated that this could be the most impactful action for the improvement of public health in reducing the widespread and clearly documented harms of smoking.”

Retail sentiment on Stocktwits was 'extremely bullish' compared to 'neutral' a day ago. Message volumes were in the 'extremely high' zone.
 

A Stocktwits poll asked retail about the opportunity that the FDA rule represents for the company. About 65% of users responded saying the FDA backing would be a huge upside. While 17% thought that regulatory risks remain and were uncertain.

According to 22nd Century, its VLN cigarettes have 95% less nicotine than the traditional cigarette and have been proven to greatly reduce nicotine consumption.

22nd Century Group stock is up 12% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.